Morgan Stanley Dean Witter Spectrum Series
Monthly Report
May 2000
Dear Limited Partner:
The Net Asset Value per Unit for each of the five Morgan Stanley Dean
Witter Spectrum Funds as of May 31, 2000 was as follows:
Funds N.A.V. % change for month
Spectrum Commodity $ 7.74 4.39%
Spectrum Global Balanced $15.65 -1.29%
Spectrum Select $21.19 1.56%
Spectrum Strategic $12.28 10.17%
Spectrum Technical $14.03 -0.42%
In general, the performance disparity between the Funds in the Spectrum
Series is due to the portfolio structure and trading approaches unique to
each fund. Spectrum Strategic, a fund managed by multiple trading advisors
who employ fundamental trading methodologies, recorded gains in a wide
number of currency, energy and soft commodity markets. Spectrum Commodity,
formerly Morgan Stanley Dean Witter Tangible Asset Fund, profited primarily
in the energy markets and also in soft commodities. Spectrum Select, a
technically-based multi-manager fund, recorded gains primarily in the
global interest rate futures markets, particularly European interest rate
futures. On the other hand, Spectrum Technical, the other technically-
based multi-manager fund, incurred losses due to its way of participating
in the global interest rate futures markets, particularly U.S. interest
rate futures. Spectrum Global Balanced, a balanced portfolio of stocks,
bonds and managed futures, incurred losses primarily in global stock index
futures, particularly from long Nikkei Index futures positions.
Spectrum Commodity
The Fund increased in value during May due primarily to gains recorded in
the energy markets from long natural gas futures positions as prices
climbed higher amid supply woes heightened by low storage injection data as
reported by the American Gas Association and perceptions that dwindling
storage levels could mean a very tight market during the peak demand months
this winter. Additional gains were recorded from long positions in crude
oil and its related products as oil prices increased amid concerns over
tight gasoline supplies ahead of the peak driving summer season and after
comments from OPEC ministers who see no need to raise supplies further in
June. In the soft commodities markets, gains were recorded from long
positions in cotton futures as cotton prices increased on news of hot and
dry weather forecasted for key producing areas. A portion of these gains
was offset by losses recorded in the livestock markets from long live
cattle futures positions as prices declined amid technical based selling.
In the metals markets, losses were incurred from long positions in nickel
futures as most base metals prices moved lower later in the month.
Spectrum Global Balanced
The Fund decreased in value during May due primarily to losses recorded in
the global stock index component of the balanced portfolio from long
positions in Nikkei Index futures as the Japanese stock market declined,
with former "high-flying" technology stocks pounded by another setback in
the U.S. NASDAQ market. In the metals markets, losses were experienced
from long positions in nickel and copper futures as most base metals prices
moved lower later in the month amid technical based selling. In the
currency markets, losses were experienced later in the month from short
positions in the euro as the value of Europe's common currency suddenly
strengthened relative to the U.S. dollar and the British pound amid renewed
expectation of European Central Bank support for the euro and after a
decision by the Bank of England to hold interest rates unchanged.
Offsetting currency gains were recorded from short positions in the New
Zealand dollar as its value weakened to a 15-year low relative to the U.S.
dollar due to inflationary pressures in that country. A portion of these
losses was offset by gains recorded in the energy markets from long natural
gas futures positions as prices climbed higher amid supply woes and
perceptions that dwindling storage levels could mean a very tight market
during the peak demand months this winter. In the global interest rate
component, gains were recorded from
<PAGE>
short positions in euribor futures as the price of these short-term
European interest rate futures moved sharply lower in response to the
FOMC's interest rate hike in the U.S.
Spectrum Select
The Fund increased in value during May due primarily to gains recorded in
the energy markets from long natural gas futures positions as prices
climbed higher amid supply woes and perceptions that dwindling storage
levels could mean a very tight market during the peak demand months this
winter. In the global interest rate futures markets, gains were recorded
from short positions in euribor futures as the price of these short-term
European interest rate futures moved sharply lower in response to the
FOMC's interest rate hike in the U.S. In the currency markets, gains were
recorded from short positions in the New Zealand dollar as its value
weakened to a 15-year low relative to the U.S. dollar due to inflationary
pressures in that country. A portion of these gains was offset by losses
recorded in the metals markets from long positions in nickel and copper
futures as most base metals prices moved lower later in the month amid
technical based selling. In the agricultural markets, smaller losses were
incurred from long corn and soybean futures positions as prices moved lower
due to forecasts for heavy rain in the U.S. corn and soy growing regions.
Spectrum Strategic
The Fund increased in value during May due primarily to gains recorded in
the energy markets from long natural gas futures positions as prices
climbed higher amid supply woes and perceptions that dwindling storage
levels could mean a very tight market during the peak demand months this
winter. Additional gains were recorded early in the month from long
futures positions in crude oil and its related products as oil prices
increased amid concerns over tight gasoline supplies ahead of the peak
driving summer season and after comments from OPEC ministers who see no
need to raise supplies further in June. In the currency markets, profits
were recorded later in the month from long positions in the euro as the
value of Europe's common currency suddenly strengthened relative to the
U.S. dollar amid renewed expectation of European Central Bank support for
the euro. In the soft commodities markets, gains were recorded from long
positions in cotton futures as cotton prices increased on news of hot and
dry weather forecasted for key producing areas. In the global stock index
futures markets, gains were recorded early in the month from short
positions in S&P 500 Index futures as U.S. stock prices declined as
interest rate worries sapped sentiment across the board. Newly established
long positions in S&P 500 Index futures were also profitable as U.S. equity
prices increased during mid-month after the Federal Reserve pushed up key
interest rates to slow the booming economy and keep inflationary pressures
in check. A portion of these gains was offset by losses recorded in the
global interest rate futures markets from short positions in European
interest rate futures as prices increased as the euro strengthened. In the
metals markets, losses were experienced from long positions in zinc,
aluminum and copper futures as most base metals prices moved lower later in
the month amid a technical sell-off.
Spectrum Technical
The Fund recorded small losses during May primarily from trading in the
global interest rate futures markets from long positions in long-term U.S.
interest rate futures as prices declined early in the month after a report
showing the labor market tightened in April all but cemented fears the
Federal Reserve will have to raise interest rates more aggressively to
snuff out inflationary pressures. Newly established short positions
incurred additional losses later in the month as prices moved higher as
investors shed stock holdings for the safe haven of bonds. In the currency
markets, losses were experienced later in the month from short positions in
the euro as the value of Europe's common currency suddenly strengthened
relative to the U.S. dollar amid renewed expectation of European Central
Bank support for the euro. Offsetting currency gains were recorded early
in the month from short positions in the British pound as its value
weakened versus the U.S. dollar after a decision by the Bank of England to
hold interest rates unchanged. Additionally, gains were recorded in the
energy markets from long natural gas futures positions as prices climbed
higher amid supply woes and perceptions that dwindling storage levels could
mean a very tight market during the peak demand months this winter. In the
global stock index futures markets, gains were recorded from short
positions in Nikkei Index futures as the Japanese stock market declined,
with former "high-flying" technology stocks pounded by another setback in
the U.S. NASDAQ Index. In soft commodities, profits were recorded from
long sugar futures positions as prices moved higher on reports of lower
plantings and speculation that the world's surplus could shrink.
<PAGE>
Commencing in June 2000, the General Partner began to transfer the clearing
commodity broker and the foreign currency forward counterparty for each
Spectrum Series partnership to Morgan Stanley & Co. Incorporated and Morgan
Stanley & Co. International Limited, both affiliates of the General
Partner. This transfer is fully described in the prospectus supplement
dated June 22, 2000.
Should you have any questions concerning this report, please feel free to
contact Demeter Management Corporation at Two World Trade Center, 62nd
Floor New York , NY 10048, or your Morgan Stanley Dean Witter Financial
Advisor.
I hereby affirm, that to the best of my knowledge and belief, the
information contained in this report is accurate and complete. Past
performance is not a guarantee of future results.
Sincerely,
Robert E. Murray
Chairman
Demeter Management Corporation
General Partner
<PAGE>
<TABLE>
Historical Fund Performance
<CAPTION>
Presented below is the percentage change in Net Asset Value per Unit from
the start of each calendar each the Fund has traded. Also provided is the
inception-to-date return and the annualized return since inception for each
Fund. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
Funds Year Return
<S> <C> <C>
Spectrum Commodity
1998 -34.3%
1998 15.8%
2000 (5 months) 1.7%
Inception-to-Date Return: -22.6%
Annualized Return: -10.1%
___________________________________________________________________________
__________
Spectrum Global Balanced
1994 (2 months) -1.7%
1995 22.8%
1996 -3.6%
1997 18.2%
1999 16.4%
1999 0.8%
2000 (5 months) -2.9%
Inception-to-Date Return: 56.5%
Annualized Return: 8.4%
___________________________________________________________________________
__________
Spectrum Select
1991 (5 months) 31.2%
1992 -14.4%
1993 41.6%
1994 -5.1%
1995 23.6%
1996 5.3%
1997 6.2%
1998 14.2%
1999
-7.6%
2000 (5 months) -3.7%
Inception-to-Date Return: 111.9%
Annualized Return 8.9%
___________________________________________________________________________
__________
Spectrum Strategic
1994 (2 months) 0.1%
1995 10.5%
1996 -3.5%
1997 0.4%
1998 7.8%
1999
37.2%
2000 (5 months) -22.5%
Inception-to-Date Return: 22.8%
Annualized Return: 3.7%
___________________________________________________________________________
__________
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Spectrum Technical
<S> <C> <C>
1994 (2 months) -2.2%
1995 17.6%
1996 18.3%
1997 7.5%
1998 10.2%
1999
-7.5%
2000 (5 months) -5.9%
Inception-to-Date Return: 40.3%
Annualized Return: 6.3%
<PAGE>
</TABLE>
<TABLE>
Morgan Stanley Dean Witter Spectrum Series
Statements of Operations
For the Month Ended May 31, 2000
(Unaudited)
<CAPTION>
Morgan Stanley Dean Witter Morgan Stanley Dean
Witter Morgan Stanley Dean Witter
Spectrum Commodity Spectrum Global
Balanced _ Spectrum Select
Percent of Percent of
Percent of
May 1, 2000 May 1, 2000
May 1, 2000
Beginning Beginning
Beginning
Amount Net Asset Value Amount Net Asset
Value Amount Net Asset Value
$ % $ %
$ %
REVENUES
<S> <C> <C>
<C> <C> <C> <C>
Trading profit (loss):
Realized 534,280 2.54 (1,055,141) (1.89)
(430,938) (0.21)
Net change in unrealized 423,597 2.01 326,878 0.59
4,493,809 2.22
Total Trading Results 957,877 4.55 (728,263) (1.30)
(4,062,871) 2.01
Interest Income (DWR) 91,459 0.43 277,288 0.50
831,913 0.41
Total Revenues 1,049,336 4.98 (450,975) (0.80)
4,894,784 2.42
EXPENSES
Brokerage fees (DWR) 80,668 0.38 214,132 0.38
1,224,462 0.61
Management fees 43,841 0.21 58,189 0.11
506,674 0.25
Incentive fees - - -
- - - .
Total Expenses 124,509 0.59 272,321 0.49
1,731,136 0.86
NET INCOME (LOSS) 924,827 4.39 (723,296) (1.29)
3,163,648 1.56
Morgan Stanley Dean Witter Spectrum Series
Statements of Changes in Net Asset Value
For the Month Ended May 31, 2000
(Unaudited)
Morgan Stanley Dean Witter Morgan Stanley Dean
Witter Morgan Stanley Dean Witter
Spectrum Commodity Spectrum Global
Balanced Spectrum Select .
Units Amount Per Unit Units Amount
Per Unit Units Amount Per Unit
$ $ $ $
$ $
<S> <C> <C> <C> <C> <C>
<C> <C> <C> <C>
Net Asset Value,
May 1, 2000 2,838,025.363 21,043,686 7.42 3,522,187.765
55,860,894 15.86 9,715,583.896 202,669,480 20.86
Net Income (Loss) - 924,827 0.32 -
(723,296) (0.21) - 3,163,648 0.33
Redemptions (30,776.908) (238,213) 7.74 (36,789.030)
(575,748) 15.65 (214,507.890) (4,545,422) 21.19
Subscriptions 25,991.214 201,172 7.74 57,733.822
903,534 15.65 113,860.043 2,412,695 21.19
Net Asset Value,
May 31, 2000 2,833,239.669 21,931,472 7.74 3,543,132.557
55,465,384 15.65 9,614,936.049 203,700,401 21.19
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
Morgan Stanley Dean Witter Spectrum Series
Statements of Operations
For the Month Ended May 31, 2000
(Unaudited)
<CAPTION>
Morgan Stanley Dean Witter Morgan Stanley
Dean Witter
Spectrum Strategic
Spectrum Technical .
Percent of Percent of
May 1, 2000 May 1, 2000
Amount Net Asset Value Amount
Net Asset Value
$ % $
%
<S> <C> <C> <C>
<C>
REVENUES
Trading profit (loss):
Realized 1,452,771 1.83 (5,830,694)
(2.32)
Net change in unrealized 7,102,847 8.97 6,121,998
2.44
Total Trading Results 8,555,618 10.80 291,304
0.12
Interest Income (DWR) 353,995 0.45 997,311
0.40
Total Revenues 8,909,613 11.25 1,288,615
0.52
EXPENSES
Brokerage fees (DWR) 361,756 0.46 1,516,710
0.61
Management fees 182,035 0.23 836,806
0.33
Incentive fees 316,728 0.39 -
-
Total Expenses 860,519 1.08 2,353,516
0.94
NET INCOME (LOSS) 8,049,094 10.17 (1,064,901)
(0.42)
Morgan Stanley Dean Witter Spectrum Series
Statements of Changes in Net Asset Value
For the Month Ended May 31, 2000
(Unaudited)
Morgan Stanley Dean Witter Morgan
Stanley Dean Witter
Spectrum Strategic Spectrum
Technical .
Units Amount Per Unit Units
Amount Per Unit
$ $ $
$
<S> <C> <C> <C> <C>
<C> <C>
Net Asset Value,
May 1, 2000 7,103,527.758 79,184,311 11.15 17,818,070.623
251,041,663 14.09
Net Income (Loss) - 8,049,094 1.13 -
(1,064,901) (0.06)
Redemptions (114,097.425) (1,401,116) 12.28 (307,563.383)
(4,315,114) 14.03
Subscriptions 164,929.056 2,025,329 12.28 213,889.962
3,000,876 14.03
Net Asset Value,
May 31, 2000 7,154,359.389 87,857,618 12.28 17,724,397.202
248,662,524 14.03
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
Morgan Stanley Dean Witter Spectrum Series
Notes to Financial Statements
(Unaudited)
1. Summary of Significant Accounting Policies
Organization - Morgan Stanley Dean Witter Spectrum Commodity
L.P. ("Spectrum Commodity," formerly Morgan Stanley Tangible
Asset Fund L.P.), Morgan Stanley Dean Witter Spectrum Global
Balanced L.P. ("Spectrum Global Balanced"), Morgan Stanley Dean
Witter Spectrum Select L.P. ("Spectrum Select"), Morgan Stanley
Dean Witter Spectrum Strategic L.P. ("Spectrum Strategic") and
Morgan Stanley Dean Witter Spectrum Technical L.P. ("Spectrum
Technical"), (individually, a "Partnership", or collectively,
the "Partnerships"), are limited partnerships organized to
engage primarily in the speculative trading of futures and
forward contracts, options on futures contracts, physical
commodities and other commodity interests, including, but not
limited to foreign currencies, financial instruments, metals,
energy and agricultural products (collectively, "futures
interests").
The general partner for each Partnership is Demeter Management
Corporation ("Demeter"). The non-clearing commodity broker for
Spectrum Global Balanced, Spectrum Select, Spectrum Strategic
and Spectrum Technical is Dean Witter Reynolds, Inc. ("DWR")
and an unaffiliated clearing commodity broker, Carr Futures
Inc. ("Carr"), provides clearing and execution services. The
commodity brokers for Spectrum Commodity are Morgan Stanley &
Co. Incorporated ("MS & Co.") and Morgan Stanley & Co.
International Limited ("MSIL"). Morgan Stanley Dean Witter
Commodities Management, Inc. ("MSDWC") is the trading advisor
to Spectrum Commodity. Demeter, DWR, MS& Co., MSDWC and MSIL
are wholly-owned subsidiaries of Morgan Stanley Dean Witter &
Co.
Demeter is required to maintain a 1% minimum interest in the
equity of each Partnership and income (losses) are shared by
Demeter and the Limited Partners based upon their proportional
ownership interests.
Use of Estimates - The financial statements are prepared in
accordance with generally accepted accounting principles, which
require management to make estimates and assumptions that
affect the reported amounts in the financial statements and
related disclosures. Management believes that the estimates
utilized in the preparation of the financial statements are
prudent and reasonable. Actual results could differ from those
estimates.
Revenue Recognition - Futures interests are open commitments
until settlement date. They are valued at market on a daily
basis and the resulting net change in unrealized gains and
losses is reflected in the changes in unrealized profits
(losses) on open contracts from one period to the next in the
statements of operations. Monthly, DWR pays interest income on
80% of the month's average daily "Net Assets" (as defined in
the limited partnership agreements) of Spectrum Select,
Spectrum Strategic and Spectrum Technical, and 100% in the case
of Spectrum Global Balanced. MS & Co. credits Spectrum
Commodity at each month-end with interest income on 80% of the
Partnership's average daily Net Assets for the month. The
interest rates used are equal to a prevailing rate on U.S.
Treasury bills. For purposes of such interest payments, Net
Assets do not include monies due the Partnerships on futures
interests, but not actually received.
Net Income (Loss) per Unit - Net income (loss) per unit of
limited partnership interest ("Unit(s)") is computed using the
weighted average number of Units outstanding during the period.
<PAGE>
Morgan Stanley Dean Witter Spectrum Series
Notes to Financial Statements
(Continued)
Brokerage and Related Transaction Fees and Costs - The
brokerage fee for Spectrum Commodity is accrued at a flat
monthly rate of 1/12 of 3.65% (a 3.65% annual rate) of Net
Assets as of the first day of each month.
The brokerage fee for Spectrum Global Balanced is accrued at a
flat monthly rate of 1/12 of 4.60% (a 4.60% annual rate) of Net
Assets as of the first day of each month.
Brokerage fees for Spectrum Select, Spectrum Strategic and
Spectrum Technical are accrued at a flat monthly rate of 1/12
of 7.25% (a 7.25% annual rate) of Net Assets as of the first
day of each month.
Such fees currently cover all brokerage fees, transaction fees
and costs and ordinary administrative and continuing offering
expenses.
Operating Expenses - The Partnerships incur monthly management
fees and may incur incentive fees. All common administrative
and continuing offering expenses including legal, auditing,
accounting, filing fees and other related expenses are borne by
DWR through the brokerage fees paid by each Partnership.
Service Fee - Spectrum Commodity pays Demeter a monthly service
fee equal to 1/12 of 1% (a 1% annual rate) of Net Assets as of
the first day of each month.
Income Taxes - No provision for income taxes has been made in
the accompanying financial statements, as partners are
individually responsible for reporting income or loss based
upon their respective share of each Partnership's revenues and
expenses for income tax purposes.
Distributions - Distributions, other than redemptions of Units,
are made on a pro-rata basis at the sole discretion of Demeter.
No distributions have been made to date.
Continuing Offering - Units of each Partnership are offered at
a price equal to 100% of the Net Asset Value per Unit as of the
close of business on the last day of the month. No selling
commissions or charges related to the continuing offering of
Units are borne by the Limited Partners or the Partnership.
DWR will pays all such costs.
Redemptions - Limited Partners may redeem some or all of their
Units at 100% of the Net Asset Value Per Unit as of the end of
the last day of any month that is at least six months after the
closing at which a person becomes a Limited Partner, upon five
business days advance notice by redemption form to Demeter.
Thereafter, Units redeemed on or prior to the last day of the
twelfth month after such Units were purchased will be subject
to a redemption charge equal to 2% of the Net Asset Value of a
Unit on the date of such redemption. Units redeemed after the
last day of the twelfth month and on or prior to the last day
of the twenty-fourth month after which such Units were
purchased will be subject to a redemption charge equal to 1% of
the Net Asset Value of a Unit on the date of such redemption.
Units redeemed after the last day of the twenty-fourth month
after which such Units were purchased will not be subject to a
redemption charge. The foregoing redemptions charges will be
paid to DWR. Redemptions must be made in whole Units, in a
minimum amount of 50 Units, unless a Limited Partner is
redeeming his entire interest in a Partnership.
<PAGE>
Morgan Stanley Dean Witter Spectrum Series
Notes to Financial Statements
(Continued)
Exchanges - On the last day of the first month which occurs
more than six months after a person first becomes a Limited
Partner in any of the Partnerships, and at the end of each
month thereafter, Limited Partners may exchange their
investment among the Partnerships (subject to certain
restrictions outlined in the Limited Partnership Agreements)
without paying additional charges.
Dissolution of the Partnership - Spectrum Commodity will
terminate on December 31, 2027, Spectrum Global Balanced,
Spectrum Strategic and Spectrum Technical will terminate on
December 31, 2035 and Spectrum Select will terminate on
December 31, 2025 regardless of financial condition at such
time, or at an earlier date under certain conditions as defined
in each Partnership's Limited Partnership Agreement.
2. Related Party Transactions
Spectrum Commodity pays brokerage fees to the Commodity Brokers
and a service fee to Demeter, Spectrum Global Balanced,
Spectrum Select, Spectrum Strategic and Spectrum Technical each
pay brokerage fees to DWR, as described in Note 1. Spectrum
Commodity's cash is on deposit with MS & Co. and MSIL and
Spectrum Global Balanced's, Spectrum Select's, Spectrum
Strategic's and Spectrum Technical's cash is on deposit with
DWR and Carr in futures interests trading accounts to meet
margin requirements as needed. DWR and MS & Co. pay interest
on these funds as described in Note 1.
3. Trading Advisors
Demeter, on behalf of each Partnership, retains certain
commodity trading advisors to make all trading decisions for
the Partnerships. The trading advisors for each Partnership
are as follows:
Morgan Stanley Dean Witter Spectrum Commodity L.P.
Morgan Stanley Dean Witter Commodities Management, Inc.
Morgan Stanley Dean Witter Spectrum Global Balanced L.P.
RXR, Inc.
Morgan Stanley Dean Witter Spectrum Select L.P.
EMC Capital Management, Inc.
Rabar Market Research, Inc.
Sunrise Capital Management, Inc.
Morgan Stanley Dean Witter Spectrum Strategic L.P.
Allied Irish Capital Management, Ltd. ("AICM")
Blenheim Investments, Inc. ("Blenheim")
Morgan Stanley Dean Witter Spectrum Technical L.P.
Campbell & Company, Inc.) ("Campbell")
Chesapeake Capital Corporation ("Chesapeake")
John W. Henry & Company, Inc. ("JWH")
Compensation to the trading advisors by the Partnerships
consists of a management fee and an incentive fee as follows:
<PAGE>
Morgan Stanley Dean Witter Spectrum Series
Notes to Financial Statements
(Concluded)
Management Fee - The management fee for Spectrum Commodity is
accrued at a rate of 5/24 of 1% of Net Assets on the first day
of each month (a 2.5% annual rate).
The management fee for Spectrum Global Balanced is accrued at a
rate of 5/48 of 1% of Net Assets on the first day of each month
(a 1.25% annual rate).
The management fee for Spectrum Select is accrued at a rate of
1/4 of 1% of Net Assets on the first day of each month (a 3%
annual rate).
The management fee for Spectrum Strategic is accrued at a rate
of 1/12 of 4% of Net Assets allocated to Blenheim on the first
day of each month, and 1/12 of 3% of Net Assets allocated to
AICM on the first day of each month (annual rates of 4% and 3%,
respectively).
The management fee for Spectrum Technical is accrued at a rate
of 1/3 of 1% of Net Assets on the first day of each month (a 4%
annual rate).
Incentive Fee - Spectrum Commodity pays an annual incentive fee
equal to 20% of the trading profits as of the end of each
calendar year.
Spectrum Global Balanced, Spectrum Select and Spectrum
Strategic each pay a monthly incentive fee equal to 15% of the
trading profits experienced with respect to each trading
advisor's allocated Net Assets as of the end of each calendar
month.
Spectrum Technical pays a monthly incentive fee equal to 15% of
the trading profits experienced with respect to the Net Assets
allocated to Campbell and JWH and 19% of the trading profits
experienced with respect to the Net Assets allocated to
Chesapeake as of the end of each calendar month.
Trading profits for the Partnership's represent the amount by
which profits from futures, forward and options trading exceed
losses after brokerage and management fees are deducted.
For all Partnerships, when trading losses are incurred, no
incentive fees will be paid in subsequent months until all such
losses are received. Cumulative trading losses are adjusted on
a pro-rata basis for the net amount of each months
subscriptions and redemptions.
