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Previous: WATERMARC FOOD MANAGEMENT CO, 10-Q, 1997-11-17 |
Next: METRICOM INC / DE, PRE 14A, 1997-11-17 |
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended SEPTEMBER 30, 1997
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 0-21286
THE FOUR SEASONS FUND II L.P.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of #54-1640874
incorporation or organization) (I.R.S. Employer
Identification No.)
c/o JAMES RIVER MANAGEMENT CORP.
103 Sabot Park
Manakin-Sabot, Virginia
(Address of principal executive offices)
23103
(Zip Code)
(804) 784-4500 Attention: Mr. Paul Saunders
(Registrant's telephone number, including area code)
Formerly c/o KIDDER PEABODY FUTURES MANAGEMENT CORP.
(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 l5(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
<PAGE>
FORM 10-Q PART 1 ITEM 1 FINANCIAL STATEMENTS
THE FOUR SEASONS FUND II L.P.
COMBINED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
-------------------- -------------------
(Unaudited)
<S> <C>
ASSETS:
Cash $ - $ -
Net Receivable From Commodity Broker:
Receivable For Cash Retained 475,335 717,902
Net Unrealized Gains on 40,196 28,290
Open Futures Contracts
Net Unexpired Options Premiums (34,550) -
Accrued Interest Receivable 1,295 3,058
Other 831 693
U.S. Treasury Strip Securities (Cost plus Accrued) 2,289,515 4,816,886
----------------- -----------------
TOTAL ASSETS $ 2,772,622 $ 5,566,829
================= =================
LIABILITIES:
Accrued Brokerage Commissions $ 5,414 $ 23,692
Accrued Advisory Fees 4,536 4,603
Accrued Sponsor Fees 1,756 7,145
Other Accrued Expenses 16,510 11,645
Redemptions Payable 55,499 595,229
----------------- -----------------
83,715 642,314
Minority interest in Trading Company 22,497 13,685
----------------- -----------------
TOTAL LIABILITIES 106,212 655,999
----------------- -----------------
PARTNERS' CAPITAL:
General Partner ( 86.7171 units - 09/30/97) 96,255 89,423
( 86.7171 units - 12/31/96)
Limited Partners (2315.4971 units - 09/30/97) 2,570,155 4,821,407
(4675.4971 units - 12/31/96)
----------------- -----------------
TOTAL PARTNERS' CAPITAL 2,666,410 4,910,830
----------------- -----------------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 2,772,622 $ 5,566,829
================= =================
PARTNERSHIP UNITS OUTSTANDING 2,402.214 4,762.214
================= =================
NET ASSET VALUE PER PARTNERSHIP UNIT $ 1,109.98 $ 1,031.21
================= =================
</TABLE>
The accompanying notes are an integral part of these combined statements.
<PAGE>
FORM 10-Q PART 1 ITEM 1 FINANCIAL STATEMENTS
THE FOUR SEASONS FUND II L.P.
STATEMENT OF OPERATIONS (UNAUDITED) - FOR THE THREE MONTHS AND NINE MONTHS ENDED
SEPTEMBER 30, 1997 AND SEPTEMBER 30, 1996.
<TABLE>
<CAPTION>
Three months Three months Nine months Nine months
ended 09/30/97 ended 09/30/96 ended 09/30/97 ended 09/30/96
-------------- -------------- -------------- --------------
<S> <C>
REVENUES :
Trading Profit (Loss) :
Net realized gains (losses) $ 174,588 $ (16,141) $ 357,004 $ (331,645)
Net option premiums 36,249 1,826 (1,357) (4,698)
Net change in unrealized gains on open
futures contracts (37,191) 116,135 11,906 (10,230)
Net change in unexpired options (34,550) (17,025) (34,550) (44,025)
------------- --------------- ------------- -----------
Total Trading Profit (Loss) 139,096 84,796 333,003 (390,599)
Gain (loss) on sale of U.S. Treasury Strip Securities 1,644 1,556 10,745 57,561
Interest income 41,575 98,953 161,457 320,482
------------- --------------- ------------- --------------
Total Revenues (Loss) 182,315 185,304 505,205 (12,556)
EXPENSES :
Brokerage commissions 17,445 39,362 66,277 130,393
Management fees 6,865 15,665 26,004 50,957
Sponsor fees 5,156 11,760 19,530 38,258
Administrative expenses 6,458 6,223 23,176 25,149
------------- --------------- ------------- --------------
Total Expenses 35,924 73,009 134,987 244,757
------------- --------------- ------------- --------------
INCOME (LOSS) BEFORE ALLOCATION OF MINORITY INTEREST 146,391 112,295 370,218 (257,313)
ALLOCATION OF MINORITY INTEREST (5,304) (333) (8,812) 8,597
------------- --------------- ----------- --------------
NET INCOME (LOSS) $ 141,087 $ 111,961 $ 361,406 $ (248,715)
============= =============== ============= ==============
Limited Partners $ 136,098 $ 110,422 $ 351,106 $ (245,927)
General Partner 4,989 1,539 10,300 (2,788)
Net income (loss) per unit $ 58 $ 18 $ 119 $ 32
</TABLE>
The accompanying notes are an integral part of the combined financial
statements.
<PAGE>
FORM 10-Q PART 1 ITEM 1 FINANCIAL STATEMENTS
THE FOUR SEASONS FUND II L.P.
STATEMENTS OF PARTNERS' CAPITAL (UNAUDITED) - FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 1997.
<TABLE>
<CAPTION>
UNITS OF
PARTNERSHIP LIMITED GENERAL
INTEREST PARTNERS PARTNER TOTAL
-------------- ---------------- --------------- --------------
<S> <C>
PARTNERS' CAPITAL, DECEMBER 31, 1996 4,762.2140 $ 4,821,407 $ 89,423 $ 4,910,830
Capital Withdrawals (2,360.0000) (2,415,337) - (2,415,337)
Capital Distributions - (187,020) (3,469) (190,489)
Net Income - 351,106 10,300 361,406
-------------- ---------------- --------------- --------------
PARTNERS' CAPITAL, SEPTEMBER 30, 1997 2,402.214 $ 2,570,155 $ 96,255 $ 2,666,410
NET ASSET VALUE PER PARTNERSHIP UNIT:
December 31, 1996:
Amount $1,031.21
Units outstanding 4,762.214
September 30, 1997:
Amount $1,109.98
Units outstanding 2,402.214
</TABLE>
The accompanying notes are an integral part of these combined statements.
<PAGE>
FORM 10-Q PART 1 ITEM 1 FINANCIAL STATEMENTS
THE FOUR SEASONS FUND II L.P.
STATEMENT OF CASH FLOWS (UNAUDITED) - FOR THE NINE MONTHS ENDED SEPTEMBER 30,
1997 AND SEPTEMBER 30, 1996.
<TABLE>
<CAPTION>
Nine months Nine months
ended 9/30/97 ended 9/30/96
------------ ------------
<S> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 361,406 (248,715)
Adjustments To Reconcile Net Income To
Net Cash Used In Operating Activities:
Net Change In Unrealized Gains
On Futures Contracts (11,906) 10,230
Net Change In Unrealized
Option Premiums 34,550 44,025
Accrued Interest From U.S. Treasury
Strip Securities (146,246) (286,867)
Gain on Sale of U.S. Treasury
Strip Securities (10,745) (57,561)
(Increase) Decrease In Operating Assets:
Net Receivable From Commodity
Broker For Cash Retained 242,429 818,485
Net Receivable From Commodity
Broker For Interest Receivable 1,763 4,379
Increase (Decrease) In Operating Liabilities:
Accrued Brokerage Commissions (18,278) (20,185)
Accrued Advisory Fees (67) (8,856)
Accrued Sponsor Fees (5,389) (6,551)
Other Accrued Expenses 4,865 (8,779)
Redemptions Payable (539,730) 187,673
Allocation of Income to Minority Interest 8,812 (8,597)
------------ -----------
Net cash (used in) provided by operating activities (439,942) 667,395
------------ -----------
NET CASH FLOWS FROM FINANCING ACTIVITIES
Limited Partner Additions - -
Limited Partner Redemptions (2,415,337) (1,894,409)
Partner Distributions (190,489) (290,047)
------------ -----------
Net cash used in financing activities (2,605,826) (2,184,456)
------------ -----------
NET CASH FLOWS FROM INVESTING ACTIVITIES
Maturity of U.S. Treasury Strip 192,000 291,000
Sale of U.S. Treasury Strip Securities 2,492,362 1,474,776
------------ -----------
Net cash provided by investing activities 2,684,362 1,765,776
----------- -----------
NET INCREASE IN CASH - -
CASH AT BEGINNING OF PERIOD - -
------------ -----------
CASH AT END OF PERIOD - -
============ ===========
</TABLE>
The accompanying notes are an integral part of the combined financial
statements.
<PAGE>
Form 10-Q Part 1 Item 2 Management's Discussion
THE FOUR SEASONS FUND II L.P.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND OPERATING
RESULTS FOR THE NINE MONTHS AND THREE MONTHS ENDED SEPTEMBER 30, 1997 AND
SEPTEMBER 30, 1996:
(A) SEPTEMBER 30, SEPTEMBER 30,
1997 1996
--------- --------
PARTNERS' CAPITAL $2,666,410 $5,334,594
For the nine month period ending September 30, 1997, Partners'
Capital decreased $ 2,244,420, due primarily to net
withdrawals of $ 2,415,337 and operating expenses of $
134,987. The decrease in capital resulting from capital
withdrawals and operating expenses was partially offset by the
appreciation in the value of the U.S. Treasury Strip
Securities' interest of $ 146,246 and the realized and
unrealized trading gains of futures contracts, options on
futures contracts, and currency forwards of $ 333,003. Largest
gains in futures trading were concentrated in the financial
and currency markets, namely the S&P 500 Index, Deutsche mark,
and U.S. Dollar index contracts.
In comparison, for the nine month period ended September 30,
1996, Partners' capital decreased $ 2,433,171 due to net
withdrawals of $ 1,894,409, operating expenses of $ 244,757,
and net trading losses of ($390,599). The appreciation in the
U.S. Securities' interest of $ 286,866 as well as the realized
trading gain of $ 57,561 due to the partial sales of said
securities helped to
<PAGE>
offset this decrease in capital. Losses from trading during
this period were concentrated in the financial markets, namely
the 10- year note and U.S. T-Bond contracts.
For the three month period ending September 30, 1997,
Partners' Capital increased $ 85,588, due to trading gains of
$ 139,096 and the appreciation of the U.S Treasury Strip
Securities' interest of $ 37,499. Trading profits resulted
from futures trading (S&P 500) and currencies (Japanese yen).
For the three months ended September 30, 1996, Partner's
Capital decreased $ 857,161 due to net withdrawals of $
969,122 and operating expenses of $ 73,009. Trading gains on
futures contracts and currency forwards of $ 84,796 as well as
the appreciation of the U.S. Securities' interest of $ 90,433
helped to offset the net decrease in capital for this period.
(B) The U.S. Treasury Strip Securities are valued at the lower of
cost plus accrued interest or market value. As of September
30, 1997, the cost plus accrued interest value (as shown on
the Combined Statement of Financial Condition) of the U.S.
Treasury Strip Securities is $ 2,289,515 and the value of said
securities at market value is $ 2,376,283. As of December 31,
1996, the value of the U.S. Treasury Strip Securities at cost
plus accrued interest was $ 4,816,886 and the market value was
$ 4,951,659.
<PAGE>
EXHIBITS
None
PART II
None
SIGNATURES
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.
THE FOUR SEASONS FUND II L.P.
(Registrant)
By JAMES RIVER MANAGEMENT CORP.
(General Partner)
By Edward M. Jasinski
Director of Fund Administration
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<INVESTMENTS-AT-COST> 1759008
<INVESTMENTS-AT-VALUE> 2376283
<RECEIVABLES> 477461
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2772622
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 106212
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 2402
<SHARES-COMMON-PRIOR> 4762
<ACCUMULATED-NII-CURRENT> 1785585
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 354566
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (22644)
<NET-ASSETS> 2666410
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 41,575
<OTHER-INCOME> 0
<EXPENSES-NET> 35924
<NET-INVESTMENT-INCOME> 146391
<REALIZED-GAINS-CURRENT> 212481
<APPREC-INCREASE-CURRENT> 146391
<NET-CHANGE-FROM-OPS> (2244420)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> (50)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (2794207)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 6865
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 35934
<AVERAGE-NET-ASSETS> 2702075
<PER-SHARE-NAV-BEGIN> 1031.21
<PER-SHARE-NII> 57.53
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1109.98
<EXPENSE-RATIO> 1.32
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
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