UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended September 30, 2000 or
[ ] Transition report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from ________________to_____________
Commission File Number 0-19511
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
(Exact name of registrant as specified in its charter)
Delaware 13-3619290
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification
No.)
c/o Demeter Management Corporation
Two World Trade Center, 62 Fl., New York, NY 10048
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 392-5454
(Former name, former address, and former fiscal year, if changed
since last report)
Indicate by check-mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No__________
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MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
September 30, 2000
<CAPTION>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<S> <C>
Statements of Financial Condition
September 30, 2000 (Unaudited) and December 31, 1999.....2
Statements of Operations for the Quarters Ended
September 30, 2000 and 1999 (Unaudited)..................3
Statements of Operations for the Nine Months Ended
September 30, 2000 and 1999 (Unaudited)..................4
Statements of Changes in Partners' Capital for the
Nine Months Ended September 30, 2000 and 1999
(Unaudited)............................................. 5
Statements of Cash Flows for the Nine Months Ended
September 30, 2000 and 1999 (Unaudited)..................6
Notes to Financial Statements (Unaudited).............7-
13
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.....14-24
Item 3. Quantitative and Qualitative Disclosures about
Market Risk.......................................24-37
Part II. OTHER INFORMATION
Item 1. Legal Proceedings....................................38
Item 2. Changes in Securities and Use of Proceeds........ 38-40
Item 5. Other Information....................................41
Item 6. Exhibits and Reports on Form 8-K..................41-42
</TABLE>
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<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
September 30, December 31,
2000 1999
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in futures interests trading accounts:
Cash 196,057,708 207,251,012
Net unrealized gain (loss) on open contracts(1,943,434)
6,887,064
Net option premiums
- 776,380
Total Trading Equity 194,114,274 214,914,456
Subscriptions receivable 1,548,051 3,730,051
Interest receivable (DWR) 812,159 722,305
Total Assets 196,474,484 219,366,812
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 2,897,248 3,764,242
Accrued brokerage fees (DWR) 1,189,579 1,270,975
Accrued management fees 492,239 525,921
Total Liabilities 4,579,066 5,561,138
Partners' Capital
Limited Partners (9,341,755.316 and
9,583,810.732 Units, respectively) 189,700,733 210,877,519
General Partner (108,076.600 and
133,076.700 Units, respectively) 2,194,685 2,92
8,155
Total Partners' Capital 191,895,418 213,805,674
Total Liabilities and Partners' Capital 196,474,484 219,3
66,812
NET ASSET VALUE PER UNIT 20.31 22.00
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
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<TABLE>
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Quarters Ended September 30,
2000 1999
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 4,510,744 (3,931,581)
Net change in unrealized (1,437,816) 617,575
Total Trading Results 3,072,928 (3,314,006)
Interest Income (DWR) 2,389,882 1,990,033
Total Revenues 5,462,810 (1,323,973)
EXPENSES
Brokerage fees (DWR) 3,501,652 3,843,448
Management fees 1,448,958 1,590,392
Total Expenses 4,950,610 5,433,840
NET INCOME (LOSS) 512,200 (6,757,813)
NET INCOME (LOSS) ALLOCATION
Limited Partners 506,560 (6,656,962)
General Partner 5,640
(100,851)
NET INCOME (LOSS) PER UNIT
Limited Partners
0.06 (0.76)
General Partner
0.06 (0.76)
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Nine Months Ended September 30,
2000 1999
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 1,133,230 (537,861)
Net change in unrealized (8,830,498) 2,807,552
Total Trading Results (7,697,268) 2,269,691
Interest Income (DWR) 7,045,029 5,571,066
Total Revenues (652,239) 7,840,757
EXPENSES
Brokerage fees (DWR) 11,155,768 11,341,093
Management fees 4,616,177 4,692,864
Total Expenses 15,771,945 16,033,957
NET LOSS (16,424,184) (8,193,200)
NET LOSS ALLOCATION
Limited Partners (16,196,964) (8,071,457)
General Partner (227,220) (121,743)
NET LOSS PER UNIT
Limited Partners
(1.69) (0.92) General
Partner
(1.69)
(0.92)
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the Nine Months Ended September 30, 2000 and 1999
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C> <C> <C>
Partners' Capital,
December 31, 1998 8,407,766.751 $196,915,644 $3,166,
872 $200,082,516
Offering of Units 1,860,174.413 43,411,765
- 43,411,765
Net Loss
- (8,071,457) (121,743) (8,193,200)
Redemptions (561,053.653) (13,183,171)
- (13,183,171)
Partners' Capital,
September 30, 1999 9,706,887.511 $219,072,781 $3,04
5,129 $222,117,910
Partners' Capital,
December 31, 1999 9,716,887.432 $210,877,519 $2,928,155
$213,805,674
Offering of Units 1,125,231.664 23,885,643
- 23,885,643
Net Loss
- (16,196,964) (227,220)
(16,424,184)
Redemptions (1,392,287.180) (28,865,465)
(506,250) (29,371,715)
Partners' Capital,
September 30, 2000 9,449,831.916 $189,700,733 $2,19
4,685 $191,895,418
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Nine Months Ended September 30,
2000 1999
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net loss (16,424,184)
(8,193,200)
Noncash item included in net loss:
Net change in unrealized 8,830,498 (
2,807,552)
(Increase) decrease in operating assets:
Net option premiums 776,380 (
119,075)
Interest receivable (DWR) (89,854) (85,288)
Increase (decrease) in operating liabilities:
Accrued brokerage fees (DWR) (81,396) 119,733
Accrued management fees (33,682)
49,545
Net cash used for operating activities (7,022,238)
(11,035,837)
CASH FLOWS FROM FINANCING ACTIVITIES
Offering of Units 23,885,643 4
3,411,765
(Increase) decrease in subscriptions receivable2,182,000
(1,112,925)
Increase (decrease) in redemptions payable(866,994) 193,984
Redemptions of Units (29,371,715)
(13,183,171)
Net cash provided by (used for) financing activities
(4,171,066) 29,309,653
Net increase (decrease) in cash (11,193,304) 1
8,273,816
Balance at beginning of period 207,251,012
187,619,419
Balance at end of period 196,057,708
205,893,235
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
The unaudited financial statements contained herein include, in
the opinion of management, all adjustments necessary for a fair
presentation of the results of operations and financial condition
of Morgan Stanley Dean Witter Spectrum Select L.P. (the
"Partnership"). The financial statements and condensed notes
herein should be read in conjunction with the Partnership's
December 31, 1999 Annual Report on Form 10-K.
1. Organization
Morgan Stanley Dean Witter Spectrum Select L.P. is a Delaware
limited partnership 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 Partnership is one of
the Morgan Stanley Dean Witter Spectrum Series of funds,
comprised of the Partnership, Morgan Stanley Dean Witter Spectrum
Commodity L.P., Morgan Stanley Dean Witter Spectrum Currency
L.P., Morgan Stanley Dean Witter Spectrum Global Balanced L.P.,
Morgan Stanley Dean Witter Spectrum Strategic L.P. and Morgan
Stanley Dean Witter Spectrum Technical L.P.
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
The general partner is Demeter Management Corporation
("Demeter"). The non-clearing commodity broker is Dean Witter
Reynolds, Inc. ("DWR") and an unaffiliated clearing commodity
broker, Carr Futures Inc. ("Carr"), provides clearing and
execution services. Both Demeter and DWR are wholly-owned
subsidiaries of Morgan Stanley Dean Witter & Co. The trading
advisors to the Partnership are EMC Capital Management, Inc.,
Rabar Market Research, Inc. and Sunrise Capital Management, Inc.
(collectively, the "Trading Advisors").
2. Related Party Transactions
The Partnership's cash is on deposit with DWR and Carr in futures
interests trading accounts to meet margin requirements as needed.
DWR pays interest on these funds based on a prevailing rate on
U.S. Treasury bills. Brokerage expenses incurred by the
Partnership are paid to DWR.
3. Financial Instruments
The Partnership trades 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.
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
Futures and forwards represent contracts for delayed delivery of
an instrument at a specified date and price. Risk arises from
changes in the value of these contracts and the potential
inability of counterparties to perform under the terms of the
contracts. There are numerous factors which may significantly
influence the market value of these contracts, including interest
rate volatility.
In June 1998, the Financial Accounting Standards Board ("FASB")
issued Statement of Financial Accounting Standard ("SFAS") No.
133, "Accounting for Derivative Instruments and Hedging
Activities" effective for fiscal years beginning after June 15,
2000, as amended by SFAS No. 137. The Partnership adopted the
provisions of SFAS No. 133 beginning with the fiscal year ended
December 31, 1998. SFAS No. 133 superceded SFAS Nos. 119 and
105, which required the disclosure of average aggregate fair
values and contract/notional values, respectively, of derivative
financial instruments for an entity that carries its assets at
fair value. SFAS No. 133 was further amended by SFAS No. 138,
which clarifies issues surrounding interest rate risk, foreign
currency denominations, normal purchases and sales and net
hedging. The application of SFAS No. 133, as amended by SFAS No.
137, did not
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
have a significant effect on the Partnership's financial
statements, nor will the application of the provisions of SFAS
No. 138 have a significant effect on the Partnership's financial
statements.
SFAS No. 133 defines a derivative as a financial instrument or
other contract that has all three of the following
characteristics:
1) One or more underlying notional amounts or payment
provisions;
2) Requires no initial net investment or a smaller initial net
investment than would be required relative to changes in market
factors;
3) Terms require or permit net settlement.
Generally derivatives include futures, forwards, swaps or option
contracts, or other financial instruments with similar
characteristics such as caps, floors and collars.
The net unrealized gain (loss) on open contracts is reported as a
component of "Equity in futures interests trading accounts" on
the statements of financial condition and totaled $(1,943,434)
and
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
$6,887,064 at September 30, 2000 and December 31, 1999,
respectively.
Of the $1,943,434 net unrealized loss on open contracts at
September 30, 2000, $266,864 related to exchange-traded futures
and futures-styled option contracts and $1,676,570 related to off-
exchange-traded forward currency contracts.
Of the $6,887,064 net unrealized gain on open contracts at
December 31, 1999, $6,935,040 related to exchange-traded futures
and futures-styled options contracts and $(47,976) related to off-
exchange-traded forward currency contracts.
Exchange-traded futures and futures-styled options contracts held
by the Partnership at September 30, 2000 and December 31, 1999
mature through September 2001 and December 2000, respectively.
Off-exchange-traded forward currency contracts held by the
Partnership at September 30, 2000 and December 31, 1999 mature
through December 2000 and March 2000, respectively.
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
The Partnership has credit risk associated with counterparty non-
performance. The credit risk associated with the instruments in
which the Partnership is involved is limited to the amounts
reflected in the Partnership's statements of financial condition.
The Partnership also has credit risk because DWR and Carr act as
the futures commission merchants or the counterparties, with
respect to most of the Partnership's assets. Exchange-traded
futures and futures-styled options contracts are marked to
market on a daily basis, with variations in value settled on a
daily basis. Each of DWR and Carr, as a futures commission
merchant for the Partnership's exchange-traded futures and
futures-styled options contracts, are required, pursuant to
regulations of the Commodity Futures Trading Commission ("CFTC"),
to segregate from their own assets, and for the sole benefit of
their commodity customers, all funds held by them with respect to
exchange-traded futures and futures-styled options contracts,
including an amount equal to the net unrealized gain (loss) on
all open futures and futures-styled options contracts, which
funds, in the aggregate, totaled $195,790,844 and $214,186,052 at
September 30, 2000 and December 31, 1999, respectively. With
respect to the Partnership's off-exchange-traded forward currency
contracts, there are no daily
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
NOTES TO FINANCIAL STATEMENTS - (CONCLUDED)
settlements of variations in value nor is there any requirement
that an amount equal to the net unrealized gain (loss) on forward
contracts be segregated. With respect to those off-exchange-
traded forward currency contracts, the Partnership is at risk to
the ability of Carr, the sole counterparty on all of such
contracts, to perform. The Partnership has a netting agreement
with Carr. This agreement, which seeks to reduce both the
Partnership's and Carr's exposure on off-exchange-traded forward
currency contracts, should materially decrease the Partnership's
credit risk in the event of Carr's bankruptcy or insolvency.
Carr's parent, Credit Agricole Indosuez, has guaranteed to the
Partnership payment of the net liquidating value of the
transactions in the Partnership's account with Carr (including
foreign currency contracts).
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity - The Partnership deposits its assets with DWR as non-
clearing broker and Carr as clearing broker in separate futures
trading accounts established for each Trading Advisor, which
assets are used as margin to engage in trading. The assets are
held in either non-interest-bearing bank accounts or in
securities and instruments permitted by the CFTC for investment
of customer segregated or secured funds. The Partnership's
assets held by the commodity brokers may be used as margin solely
for the Partnership's trading. Since the Partnership's sole
purpose is to trade in futures, forwards and options, it is
expected that the Partnership will continue to own such liquid
assets for margin purposes.
The Partnership's investment in futures, forwards and options
may, from time to time, be illiquid. Most U.S. futures exchanges
limit fluctuations in prices during a single day by regulations
referred to as "daily price fluctuations limits" or "daily
limits". Trades may not be executed at prices beyond the daily
limit. If the price for a particular futures or options contract
has increased or decreased by an amount equal to the daily limit,
positions in that futures or options contract can neither be
taken nor liquidated unless traders are willing to effect trades
at or within the limit. Futures prices have occasionally moved
the daily limit for several consecutive days with little or no
<PAGE>
trading. These market conditions could prevent the Partnership
from promptly liquidating its futures or options contracts and
result in restrictions on redemptions.
There is no limitation on daily price moves in trading forward
contracts on foreign currency. The markets for some world
currencies have low trading volume and are illiquid, which may
prevent the Partnership from trading in potentially profitable
markets or prevent the Partnership from promptly liquidating
unfavorable positions in such markets and subjecting it to
substantial losses. Either of these market conditions could
result in restrictions on redemptions.
The Partnership has never had illiquidity affect a material
portion of its assets.
Capital Resources - The Partnership does not have, or expect to
have, any capital assets. Redemptions, exchanges and sales of
additional units of limited partnership interest ("Unit(s)") in
the future will affect the amount of funds available for
investment in futures interests in subsequent periods. It is not
possible to estimate the amount and therefore, the impact of
future redemptions of Units.
<PAGE>
Results of Operations
General. The Partnership's results depend on its Trading
Advisors and the ability of each Trading Advisor's trading
programs to take
advantage of price movements or other profit opportunities in the
futures, forwards and options markets. The following presents a
summary of the Partnership's operations for the quarters and nine
months ended September 30, 2000 and 1999, respectively, and a
general discussion of its trading activities during each period.
It is important to note, however, that the Trading Advisors trade
in various markets at different times and that prior activity in
a particular market does not mean that such market will be
actively traded by the Trading Advisors or will be profitable in
the future. Consequently, the results of operations of the
Partnership are difficult to discuss other than in the context of
its Trading Advisors' trading activities on behalf of the
Partnership as a whole and how the Partnership has performed in
the past.
For the Quarter and Nine Months Ended September 30, 2000
For the quarter ended September 30, 2000, the Partnership
recorded total trading revenues including interest income of
$5,462,810 and posted an increase in Net Asset Value per Unit.
The most significant gains of approximately 4.6% were recorded in
the currency markets primarily during August and September from
short positions in the New Zealand dollar as its value continued
to fall to a historic low versus the U.S. dollar. Additional
<PAGE>
gains were recorded during August from short positions in the
Swiss franc as its value weakened versus the U.S. dollar after
the European Central Bank raised its key interest rates by 25
basis points, as expected. In the metals markets, gains of
approximately 0.7% were recorded primarily during mid-September
from long positions in copper futures as prices rose higher due
to a rise in COMEX copper stocks. Additional profits were
recorded during July from short gold futures positions as gold
prices fell after the Bank of England announced the results of
its gold auction, which had concluded at a lower price than most
dealers expected. In the agricultural markets, gains of
approximately 0.2% were recorded primarily during late August
from long positions in soybean meal futures as prices surged on
expectations that the searing heat in the U.S. Delta will trim
this year's production. These gains were partially offset by
losses of approximately 1.8% recorded in the global stock index
futures markets primarily during the first half of September from
long positions in U.S. stock index futures as prices declined due
to jitters in the technology sector and a worrisome spike in oil
prices. In the energy markets, losses of approximately 1.5% were
incurred primarily during July and September from long futures
positions in crude oil as prices decreased amid growing
conviction that Saudi Arabia will follow through with a pledge to
boost production and after President Clinton ordered the release
of 30 million barrels of oil in the U.S.'s emergency Strategic
Petroleum Reserve. In the global interest rate futures markets,
<PAGE>
losses of approximately 0.8% were experienced primarily during
August from long positions in Japanese government bond futures as
prices were weighed down by growing hopes for higher interest
rates and economic expansion in Japan. Additional downward price
pressure occurred following the Bank of Japan's decision to raise
interest rates, thus ending their zero-interest rate policy.
During September, additional losses were recorded from short
positions in Japanese government bond futures positions as prices
surged and long-term interest rates dropped as investors sought
refuge from falls in U.S. and Japanese stock prices. Offsetting
gains were recorded during September from long positions in short-
term U.S. interest rate futures as prices in these markets
increased. In soft commodities, small losses of approximately
0.1% were recorded primarily during July from short positions in
cotton futures as prices increased. Offsetting gains were
recorded during July from long sugar futures positions as prices
increased on forecasts that the world surplus will shrink with
smaller crops in 2000-2001. Total expenses for the three months
ended September 30, 2000 were $4,950,610, resulting in net income
of $512,200. The value of a Unit increased from $20.25 at June
30, 2000 to $20.31 at September 30, 2000.
For the nine months ended September 30, 2000, the Partnership
recorded total trading losses net of interest income of $652,239
and posted a decrease in Net Asset Value per Unit. The most
significant losses of approximately 5.4% were recorded in the
<PAGE>
global interest rate futures markets primarily during late April
and late September from long positions in U.S. interest rate
futures as prices declined amid fears of higher interest rates
and increasing oil prices. In the global stock index futures
markets, losses of approximately 5.2% were incurred primarily
during mid April from long positions in U.S. stock indices as
domestic equity prices declined following the release of an
unexpected jump in the Consumer Price Index. During the first
half of September, additional losses were recorded from long
positions in U.S. stock index futures as prices declined due to
jitters in the technology sector and a worrisome spike in oil
prices. In the metals markets, losses of approximately 2.3% were
recorded primarily during June from short silver futures
positions as prices increased on the heels of the increase in
gold prices, in reaction to the U.S. dollar's weakness and the
Federal Open Market Committee's decision to leave interest rates
unchanged. In the agricultural markets, losses of approximately
0.9% were recorded primarily during April and May from long corn
and soybean futures positions as prices moved lower due to
forecasts for heavy rain in the U.S. growing regions. These
losses were partially offset by gains of approximately 5.6%
recorded in the currency markets primarily during January, March,
April and August from short positions in the euro and the Swiss
franc as the values of these currencies weakened versus the U.S.
dollar due to skepticism about Europe's economic outlook and due
to the European Central Bank's ("ECB") passive stance towards its
<PAGE>
currency and increasing concern that the ECB should be more
aggressive in combating inflation. In the energy markets, gains
of approximately 3.9% were recorded primarily during May, August
and September from long positions in natural gas futures as
prices trended upward, amid supply and storage concerns.
Additional gains were recorded primarily during January, February
and August from long futures positions in crude oil and its
refined products as oil prices increased on concerns about future
output levels from the world's leading producer countries amid
dwindling stockpiles and increasing demand. In the soft
commodities markets, gains of approximately 0.2% were recorded
primarily throughout the second quarter and during July from long
positions in sugar futures as sugar prices trended higher due to
strong demand and declining production from Brazil. Total
expenses for the nine months ended September 30, 2000 were
$15,771,945, resulting in a net loss of $16,424,184. The value
of a Unit decreased from $22.00 at December 31, 1999 to $20.31 at
September 30, 2000.
For the Quarter and Nine Months Ended September 30, 1999
For the quarter ended September 30, 1999, the Partnership
recorded total trading losses net of interest income of
$1,323,973 and posted a decrease in Net Asset Value per Unit.
The most significant losses of approximately 3.4% were recorded
in the global stock index futures markets primarily from long S&P
500 Index futures positions as prices fell during July after
Federal
<PAGE>
Reserve Chairman Alan Greenspan said that the economy may be
growing fast enough to warrant a second interest rate increase
later this year. During August, losses were recorded from short
S&P 500 Index futures positions as prices increased after the
Producer Price Index for July showed that inflation remained
under control as the economy continued to grow. In the global
interest rate futures markets, losses of approximately 3.3% were
experienced during August primarily from short U.S. interest rate
futures positions as U.S. Treasury prices moved temporarily
higher on benign inflation data, a successful corporate bond
offering and the Federal Reserve's anticipated decision to raise
interest rates. Additional losses were experienced during
September from short positions in Australian bond futures as
prices spiked higher on technically based buying and short
covering. In the currency markets, losses of approximately 0.3%
were recorded during July primarily from short euro positions as
its value reversed significantly higher versus the U.S. dollar
due to a better-than-expected German business sentiment survey
and a record U.S. trade deficit. Offsetting currency gains were
recorded during August and September from long Japanese yen
positions as the value of the yen climbed to a 44-month high
versus the U.S. dollar due to positive economic data out of that
country and optimism over Japan's economic recovery. A portion
of the Partnership's overall losses for the quarter was offset by
gains of approximately 3.5% recorded in the energy markets
primarily from long positions in crude oil futures and its
refined products, unleaded gas and
<PAGE>
heating oil, as oil prices climbed higher during August and
September due to a perceived tightness in the gasoline market and
an announcement by OPEC ministers stating that they would
continue to adhere to agreed-upon output cuts through the first
quarter of 2000. In the metals markets, gains of approximately
1.7% were recorded primarily from long gold futures positions as
prices skyrocketed due to the results of the Bank of England's
second gold auction on September 21 and the announcement of a
plan by several European central banks to restrict sales of their
gold reserves for five years. Total expenses for the three
months ended September 30, 1999 were $5,433,840, resulting in a
net loss of $6,757,813. The value of a Unit decreased from
$23.64 at June 30, 1999 to $22.88 at September 30, 1999.
For the nine months ended September 30, 1999, the Partnership
recorded total trading revenues including interest income of
$7,840,757 and, after expenses, posted a decrease in Net Asset
Value per Unit. The most significant losses of approximately
3.9% were experienced in the global stock index futures markets
primarily from long positions in European stock index futures as
prices moved lower during January and early February amid
skepticism regarding the stability of emerging market economies.
Prices in these markets continued to decline during May and June
amid fears of higher interest rates in the U.S. In the metals
markets, losses of approximately 0.4% were experienced during the
month of March primarily from long silver futures positions as
<PAGE>
prices declined during mid-month after Berkshire Hathaway's
annual report failed to provide any new information on the
company's silver positions. Offsetting gains were recorded from
long positions in gold futures as gold prices soared during
September following the Bank of England's second gold auction and
an announcement by several European central banks stating that
they were to restrict the sales of gold reserves for five years.
In the global interest rate futures markets, losses of
approximately 0.3% were recorded during September primarily from
short positions in Australian bond futures as prices spiked
higher on technically based buying and short covering. Losses
were also recorded from short Japanese government bond futures
positions early in the first quarter as prices surged higher in
response to the Bank of Japan's aggressive easing of monetary
policy. Additional losses were experienced later in the first
quarter from newly established long positions as prices retreated
following comments by Bank of Japan Governor Masaru Hayami that
he expected interest rates in Japan to rise over time.
Offsetting gains were recorded in this market sector from short
positions in European bond futures during April and June as
prices declined due to dampened sentiment regarding the European
Monetary Union and fears of an interest rate hike in the U.S. A
portion of the Partnership's overall losses was offset by gains
of approximately 4.7% recorded in the energy markets primarily
from long futures positions in crude oil and its refined
products, unleaded gas and heating oil, as prices climbed higher
during March following an agreement reached by both
<PAGE>
OPEC and non-OPEC countries to cut total output beginning April
1st. Oil prices continued to move higher throughout the third
quarter due to declining supplies, increasing demand and evidence
that output cuts were being adhered to. In soft commodities,
gains of approximately 0.4% were recorded throughout a majority
of the first quarter primarily from short cocoa futures positions
as prices declined amid fears that Brazil's financial troubles
will have an adverse effect on supply and demand. Total expenses
for the nine months ended September 30, 1999 were $16,033,957,
resulting in a net loss of $8,193,200. The value of a Unit
decreased from $23.80 at December 31, 1998 to $22.88 at September
30, 1999.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
Introduction
The Partnership is a commodity pool involved in the speculative
trading of futures interests. The market-sensitive instruments
held by the Partnership are acquired for speculative trading
purposes only and, as a result, all or substantially all of the
Partnership's assets are at risk of trading loss. Unlike an
operating company, the risk of market-sensitive instruments is
central, not incidental, to the Partnership's main business
activities.
The futures interests traded by the Partnership involve varying
degrees of market risk. Market risk is often dependent upon
<PAGE>
changes in the level or volatility of interest rates, exchange
rates, and prices of financial instruments and commodities.
Fluctuations in market risk based upon these factors result in
frequent changes in the fair value of the Partnership's open
positions, and, consequently, in its earnings and cash flow.
The Partnership's total market risk is influenced by a wide
variety of factors, including the diversification among the
Partnership's open positions, the volatility present within the
markets, and the liquidity of the markets. At different times,
each of these factors may act to increase or decrease the market
risk associated with the Partnership.
The Partnership's past performance is not necessarily indicative
of its future results. Any attempt to numerically quantify the
Partnership's market risk is limited by the uncertainty of its
speculative trading. The Partnership's speculative trading may
cause future losses and volatility (i.e. "risk of ruin") that far
exceed the Partnership's experiences to date or any reasonable
expectations based upon historical changes in market value.
Quantifying the Partnership's Trading Value at Risk
The following quantitative disclosures regarding the
Partnership's market risk exposures contain "forward-looking
statements" within the meaning of the safe harbor from civil
liability provided for such statements by the Private Securities
Litigation Reform Act of
<PAGE>
1995 (set forth in Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934). All
quantitative disclosures in this section are deemed to be forward-
looking statements for purposes of the safe harbor, except for
statements of historical fact.
The Partnership accounts for open positions using mark-to-market
accounting principles. Any loss in the market value of the
Partnership's open positions is directly reflected in the
Partnership's earnings, whether realized or unrealized, and cash
flow. Profits and losses on open positions of exchange-traded
futures interests are settled daily through variation margin.
The Partnership's risk exposure in the market sectors traded by
the Trading Advisors is estimated below in terms of Value at Risk
("VaR"). The VaR model used by the Partnership includes many
variables that could change the market value of the Partnership's
trading portfolio. The Partnership estimates VaR using a model
based upon historical simulation with a confidence level of 99%.
Historical simulation involves constructing a distribution of
hypothetical daily changes in the value of a trading portfolio.
The VaR model takes into account linear exposures to price and
interest rate risk. Market risks that are incorporated in the
VaR model include equity and commodity prices, interest rates,
foreign exchange rates, and correlation among these variables.
<PAGE>
The hypothetical changes in portfolio value are based on daily
percentage changes observed in key market indices or other market
factors ("market risk factors") to which the portfolio is
sensitive. The historical observation period of the
Partnership's VaR is approximately four years. The one-day 99%
confidence level of the Partnership's VaR corresponds to the
negative change in portfolio value that, based on observed market
risk factors, would have been exceeded once in 100 trading days.
VaR models, including the Partnership's, are continuously
evolving as trading portfolios become more diverse and modeling
techniques and systems capabilities improve. Please note that
the VaR model is used to numerically quantify market risk for
historic reporting purposes only and is not utilized by either
Demeter or the Trading Advisors in their daily risk management
activities.
The Partnership's Value at Risk in Different Market Sectors
The following table indicates the VaR associated with the
Partnership's open positions as a percentage of total Net Assets
by primary market risk category as of September 30, 2000 and
1999. At September 30, 2000 and 1999, the Partnership's total
capitalization was approximately $192 million and $222 million,
respectively.
<PAGE>
Primary Market September 30, 2000 September 30, 1999
Risk Category Value at Risk Value at Risk
Interest Rate (1.18)% (0.50)%
Currency (1.16) (1.20)
Equity (0.24) (0.31)
Commodity (1.35) (1.48)
Aggregate Value at Risk (2.03)% (1.93)%
Aggregate Value at Risk represents the aggregate VaR of all the
Partnership's open positions and not the sum of the VaR of the
individual Market Categories listed above. Aggregate VaR will be
lower as it takes into account correlation among different
positions and categories.
The table above represents the VaR of the Partnership's open
positions at September 30, 2000 and 1999 only and is not
necessarily representative of either the historic or future risk
of an investment in the Partnership. Because the Partnership's
only business is the speculative trading of futures interests,
the composition of its trading portfolio can change significantly
over any given time period, or even within a single trading day.
Any changes in open positions could positively or negatively
materially impact market risk as measured by VaR.
The table below supplements the quarter-end VaR by presenting the
Partnership's high, low and average VaR, as a percentage of total
<PAGE>
Net Assets for the four quarterly reporting periods from October
1, 1999 through September 30, 2000.
Primary Market Risk Category High Low Average
Interest Rate (1.18)% (0.27)% (0.73)%
Currency (1.16) (0.36) (0.76)
Equity (0.78) (0.22) (0.43)
Commodity (1.45) (0.40) (0.99)
Aggregate Value at Risk (2.03)% (0.85)% (1.61)%
Limitations on Value at Risk as an Assessment of Market Risk
The face value of the market sector instruments held by the
Partnership is typically many times the applicable margin
requirements. Margin requirements generally range between 2% and
15% of contract face value. Additionally, the use of leverage
causes the face value of the market sector instruments held by
the Partnership to typically be many times the total
capitalization of the Partnership. The value of the
Partnership's open positions thus creates a "risk of ruin" not
typically found in other investments. The relative size of the
positions held may cause the Partnership to incur losses greatly
in excess of VaR within a short period of time, given the effects
of the leverage employed and market volatility. The VaR tables
above, as well as the past performance of the Partnership, give
no indication of such "risk of ruin". In addition, VaR risk
measures should be viewed in light of the methodology's
<PAGE>
limitations, which include the following:
past changes in market risk factors will not always result
in accurate predictions of the distributions and correlations of
future market movements;
changes in portfolio value in response to market movements
may differ from those of the VaR model;
VaR results reflect past trading positions while future risk
depends on future positions;
VaR using a one-day time horizon does not fully capture the
market risk of positions that cannot be liquidated or hedged
within one day; and
the historical market risk factor data used for VaR
estimation may provide only limited insight into losses that
could be incurred under certain unusual market movements.
The VaR tables above present the results of the Partnership's VaR
for each of the Partnership's market risk exposures and on an
aggregate basis at September 30, 2000 and for the end of the four
quarterly reporting periods from October 1, 1999 through
September 30, 2000. Since VaR is based on historical data, VaR
should not be viewed as predictive of the Partnership's future
financial performance or its ability to manage or monitor risk.
There can be no assurance that the Partnership's actual losses on
a particular day will not exceed the VaR amounts indicated above
<PAGE>
or that such losses will not occur more than 1 in 100 trading
days.
Non-Trading Risk
The Partnership has non-trading market risk on its foreign cash
balances not needed for margin. These balances and any market
risk they may represent are immaterial. At September 30, 2000
the Partnership's cash balance at DWR was approximately 87% of
its total Net Asset Value. A decline in short-term interest
rates will result in a decline in the Partnership's cash
management income. This cash flow risk is not considered
material.
Materiality, as used throughout this section, is based on an
assessment of reasonably possible market movements and any
associated potential losses, taking into account the leverage,
optionality and multiplier features of the Partnership's market-
sensitive instruments.
Qualitative Disclosures Regarding Primary Trading Risk Exposures
The following qualitative disclosures regarding the Partnership's
market risk exposures - except for (A) those disclosures that are
statements of historical fact and (B) the descriptions of how the
Partnership manages its primary market risk exposures -
constitute forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 21E of the
<PAGE>
Securities Exchange Act. The Partnership's primary market risk
exposures as well as the strategies used and to be used by
Demeter and the Trading Advisors for managing such exposures are
subject to numerous uncertainties, contingencies and risks, any
one of which could cause the actual results of the Partnership's
risk controls to differ materially from the objectives of such
strategies. Government interventions, defaults and expropria-
tions, illiquid markets, the emergence of dominant fundamental
factors, political upheavals, changes in historical price
relationships, an influx of new market participants, increased
regulation and many other factors could result in material losses
as well as in material changes to the risk exposures and the risk
management strategies of the Partnership. Investors must be
prepared to lose all or substantially all of their investment in
the Partnership.
The following were the primary trading risk exposures of the
Partnership as of September 30, 2000, by market sector. It may
be anticipated however, that these market exposures will vary
materially over time.
Interest Rate. The primary market exposure in the Partnership at
September 30, 2000 was in the global interest rate sector. The
Partnership's exposure in the interest rate market complex was
spread primarily across the U.S., European, Japanese and
Australian interest rate sectors. Interest rate movements
<PAGE>
directly affect the price of the sovereign bond futures positions
held by the Partnership and indirectly affect the value of its
stock index and currency positions. Interest rate movements in
one country as well as relative interest rate movements between
countries materially impact the Partnership's profitability. The
Partnership's primary interest rate exposure is generally to
interest rate fluctuations in the United States and the other G-7
countries. The G-7 countries consist of France, U.S., Britain,
Germany, Japan, Italy and Canada. However, the Partnership also
takes futures positions in the government debt of smaller nations
- e.g. Australia and Spain. Demeter anticipates that G-7 and
Australian interest rates will remain the primary interest rate
exposure of the Partnership for the foreseeable future. The
changes in interest rates which have the most effect on the
Partnership are changes in long-term, as opposed to short-term,
rates. Most of the speculative futures positions held by the
Partnership are in medium- to long-term instruments.
Consequently, even a material change in short-term rates would
have little effect on the Partnership, were the medium- to long-
term rates to remain steady.
Currency. The second largest market exposure at September 30,
2000 was in the currency complex. The Partnership's currency
exposure is to exchange rate fluctuations, primarily fluctuations
which disrupt the historical pricing relationships between
different currencies and currency pairs. Interest rate changes
<PAGE>
as well as political and general economic conditions influence
these fluctuations. The Partnership trades in a large number of
currencies, including cross-rates - i.e., positions between two
currencies other than the U.S. dollar. For the third quarter of
2000, the Partnership's major exposures were in the euro currency
crosses and outright U.S. dollar positions. Outright positions
consist of the U.S. dollar vs. other currencies. These other
currencies include major and minor currencies. Demeter does not
anticipate that the risk profile of the Partnership's currency
sector will change significantly in the future. The currency
trading VaR figure includes foreign margin amounts converted into
U.S. dollars with an incremental adjustment to reflect the
exchange rate risk inherent to the dollar-based Partnership in
expressing VaR in a functional currency other than dollars.
Equity. The primary equity exposure at September 30, 2000 was
to equity price risk in the G-7 countries. The stock index
futures traded by the Partnership are by law limited to futures
on broadly based indices. As of September 30, 2000, the
Partnership's primary exposures were in the S&P 500 (U.S.), Hang
Seng (China) and Nikkei (Japan) stock indices. The Partnership
is primarily exposed to the risk of adverse price trends or
static markets in the U.S., European and Japanese indices.
Static markets would not cause major market changes but would
make it difficult for the Partnership to avoid being "whipsawed"
into numerous small losses.
<PAGE>
Commodity
Energy. On September 30, 2000, the Partnership's energy exposure
was shared primarily by futures contracts in the crude oil and
natural gas markets. Price movements in these markets result
from political developments in the Middle East, weather patterns,
and other economic fundamentals. It is possible that volatility
will remain high. Significant profits and losses, which have
been experienced in the past, are expected to continue to be
experienced in this market. Natural gas has exhibited volatility
in prices resulting from weather patterns and supply and demand
factors and may continue in this choppy pattern.
Metals. The Partnership's primary metals market exposure at
September 30, 2000 was to fluctuations in the price of gold and
silver. Although certain Trading Advisors will, from time to
time, trade base metals such as copper, aluminum, zinc, nickel,
tin and lead, the principal market exposures of the Partnership
have consistently been in precious metals, gold and silver.
Exposure was evident in the gold market as gold prices were
volatile during the quarter. Silver prices have remained
volatile over this period, and the Trading Advisors have, from
time to time, taken positions as they have perceived market
opportunities to develop.
Soft Commodities and Agriculturals. On September 30, 2000, the
Partnership had exposure in the soybeans and its related
<PAGE>
products, orange juice, lean hogs and coffee markets. Supply and
demand inequalities, severe weather disruption and market
expectations affect price movements in these markets.
Qualitative Disclosures Regarding Non-Trading Risk Exposure
The following was the only non-trading risk exposure of the
Partnership as of September 30, 2000:
Foreign Currency Balances. The Partnership's primary foreign
currency balances are in Hong Kong dollars. The Partnership
controls the non-trading risk of these balances by regularly
converting these balances back into dollars upon liquidation of
the respective position.
Qualitative Disclosures Regarding Means of Managing Risk Exposure
The Partnership and the Trading Advisors, separately, attempt to
manage the risk of the Partnership's open positions in
essentially the same manner in all market categories traded.
Demeter attempts to manage market exposure by diversifying the
Partnership's assets among different Trading Advisors, each of
whose strategies focus on different market sectors and trading
approaches, and monitoring the performance of the Trading
Advisors daily. In addition, the Trading Advisors establish
diversification guidelines, often set in terms of the maximum
margin to be committed to positions in any one market sector or
market-sensitive instrument.
<PAGE>
Demeter monitors and controls the risk of the Partnership's non-
trading instrument, cash. Cash is the only Partnership
investment directed by Demeter, rather than the Trading Advisors.
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
Please refer to Legal Proceedings previously disclosed in the
Partnership's Form 10-Q for the quarter ended March 31, 2000 and
Form 10-K for the year ended December 31, 1999.
Item 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
The Partnership initially registered 60,000 Units (prior to the
100 for one Unit conversion on April 30, 1998) pursuant to a
Registration Statement on Form S-1, which became effective on May
17, 1991 (SEC File Number 33-39667), and 10,000 (pre-conversion)
Units at a supplemental closing pursuant to a new Registration
Statement on Form S-1, which became effective on August 23, 1991
(SEC File No. 33-42380). The offering commenced on May 17, 1991
and terminated as of August 31, 1991, with 60,853.334 Units sold.
The aggregate price of the offering amount registered was
$69,380,300, based upon the initial offering price of $1,000 per
Unit and $938.03 per Unit at the supplemental closing (the
initial closing and supplemental closing, hereinafter, the
"Initial Offering"). The aggregate offering price of the Units
sold during the Initial Offering was $60,268,482.
The Partnership registered an additional 75,000 Units (pre-
conversion) pursuant to a new Registration Statement of Form S-1,
<PAGE>
which became effective on August 31, 1993 (SEC File Number 33-
65072) (the "Second Offering"). The Second Offering commenced on
August 31, 1993 and terminated as of September 30, 1993, with
74,408.337 Units sold. The aggregate price of the Second
Offering amount registered was $102,744,000, based upon an
initial offering price of $1,369.92. The aggregate price of the
Units sold during the Second Offering was $116,617,866.
The Partnership registered an additional 60,000 Units (pre-con-
version) pursuant to another Registration Statement on Form S-1,
which became effective on October 17, 1996 (SEC File Number 333-
1918), (the "Third Offering"). The Third Offering commenced on
October 17, 1996 and terminated as of March 3, 1997, with
10,878.000 Units sold. The aggregate price of the Third Offering
amount registered was $98,247,000, based upon an initial offering
price of $1,637.45. The aggregate price of the Units sold during
the Third Offering was $22,308,326.
The Partnership registered an additional 1,500,000 Units pursuant
to another Registration Statement on Form S-1, which became
effective on May 11, 1998 (SEC File Number 333-47829).
Commencing with the April 30, 1998 monthly closing, each
previously outstanding Unit was converted into 100 Units.
<PAGE>
The Partnership registered an additional 5,000,000 Units pursuant
to another Registration Statement on Form S-1, which became
effective on January 21, 1999 (File No. 333-68773).
The Partnership registered an additional 4,500,000 Units pursuant
to another Registration Statement on Form S-1, which became
effective on February 28, 2000 (SEC File Number 333-90467).
The managing underwriter for the Partnership is DWR.
Units are being sold at monthly closings as of the last day of
each month at a price equal to 100% of the Net Asset Value of a
Unit as of the date of such monthly closing.
Through September 30, 2000, 19,287,646.237 Units of the
Partnership were sold, leaving 6,326,320.863 Units unsold. The
aggregate price of the Units sold through September 30, 2000 is
$304,967,273.
Since DWR has paid all offering expenses and no expenses are
chargeable against proceeds, 100% of the proceeds of the offering
have been applied to the working capital of the Partnership for
use in accordance with the "Use of Proceeds" section of the
Prospectus included as part of each Registration Statement.
<PAGE>
Item 5. OTHER INFORMATION
In the month of October 2000 the clearing commodity broker for
the Partnership was changed from Carr Futures Inc. to Morgan
Stanley & Co., Inc. and Morgan Stanley & Co. International
Limited.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) Exhibits
3.01 Form of Amended and Restated Limited Partnership Agreement
of the Partnership, dated as of May 31, 1998, is
incorporated by reference to Exhibit A of the
Partnership's Prospectus, dated March 6, 2000, filed with
the Securities and Exchange Commission pursuant to Rule
424(b)(3) under the Securities Act of 1933, as amended, on
March 9, 2000.
3.02 Certificate of Limited Partnership, dated March 21, 1991,
is incorporated by reference to Exhibit 3.02 of the
Partnership's Registration Statement on Form S-1 (File No. 333-
39667) filed with the Securities and Exchange
commission on March 27, 1991.
3.03 Amended Certificate of Limited Partnership, dated April
28, 1998, is incorporated by reference to Exhibit 3.03 of
the Partnership's Form 10-K (File No. 0-19511) for fiscal
year ended December 31, 1998.
10.01 Amended and Restated Management Agreement, dated as of
June 1, 1998, among the Partnership, Demeter Management
Corporation, and Rabar Market Research, Inc. is
incorporated by reference to Exhibit 10.01 of the
Partnership's Form 10-K (File No. 0-19511) for fiscal year ended
December 31, 1998.
10.02 Amended and Restated Management Agreement, dated as of
June 1, 1998, among the Partnership, Demeter Management
Corporation, and EMC Capital Management, Inc. is
incorporated by reference to exhibit 10.02 of the
Partnership's Form 10-K (File No. 0-19511) for fiscal year ended
December 31, 1998.
<PAGE>
10.03 Amended and restated Management Agreement, dated as of
June 1, 1998, among the Partnership, Demeter Management
Corporation, and Sunrise Capital Management, Inc. is
incorporated by reference to Exhibit 10.03 of the
Partnership's Form 10-K (File No. 0-19511) for fiscal year ended
December 31, 1998.
10.04 Amended and Restated Customer Agreement, dated as of
December 1, 1997, between the Partnership and Dean Witter
Reynolds Inc. is incorporated by reference to Exhibit 10.04 of
the Partnership's form 10-K (File no. 0-19511) for fiscal
year ended December 31, 1998.
10.05 Customer Agreement, dated as of December 1, 1997,
among the Partnership, Carr Futures, Inc., and Dean Witter
Reynolds Inc. is incorporated by reference to exhibit 10.05 of
the Partnership's Form 10-K (File No. 0-19511) for fiscal
year ended December 31, 1998.
10.06 International Foreign Exchange Master Agreement, dated
as of August 1, 1997, between the Partnership and Carr
Futures, Inc. is incorporated by reference to Exhibit 10.06 of
the Partnership's Form 10-K (File No. 0-19511) for fiscal
year ended December 31, 1998.
10.07 Subscription and Exchange Agreement and Power of
Attorney to be executed by each purchase of Units is
incorporated by reference to Exhibit B of the Partnership's
Prospectus, dated January 21, 1999, filed with the Securities
and Exchange Commission pursuant to Rule 424(b)(3) under
the Securities Act of 1933, as amended, on January 26, 1999.
10.08 Escrow Agreement, dated September 30, 1994, among Dean
Witter Spectrum Strategic L.P., Dean Witter Spectrum Global
Balanced L.P., Dean Witter Spectrum technical L.P., Demeter
Management Corporation, dean Witter Reynolds Inc., and
Chemical Bank is incorporated by reference to Exhibit 10.08
of the Partnership's Form 10-K (File No. 0-19511) for
fiscal year ended December 31, 1998.
10.09 Amendment to the Escrow Agreement, dated March 6, 2000,
among the Partnership, Demeter Management Corporation, Dean
Witter Reynolds Inc., and Chemical Bank is incorporated by
reference to exhibit 10.09 of the partnership's Form 10-K
(File No. 0-19511) for fiscal year ended March 9, 2000.
(B) Reports on Form 8-K. - None.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
Morgan Stanley Dean Witter Spectrum
Select L.P. (Registrant)
By: Demeter Management Corporation
(General Partner)
November 14, 2000 By: /s/ Raymond E. Koch
Raymond E. Koch
Chief Financial Officer
The General Partner which signed the above is the only party
authorized to act for the Registrant. The Registrant has no
principal executive officer, principal financial officer,
controller, or principal accounting officer and has no Board of
Directors.
