<PAGE>
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, 1996 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 0-22640
The Global Opportunity Fund L.P.
- -----------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Illinois 36-3824101
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(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
c/o Rodman & Renshaw Futures Management, Inc.
233 South Wacker Drive, Suite 4500
Chicago, Illinois 60606
- -----------------------------------------------------------------
(Address of principal (Zip Code)
executive offices)
(312) 526-2000
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(Registrant's telephone number, including area code)
Indicate by checkmark 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
--- ---
Total Pages In This Report - 9
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<TABLE>
The Global Opportunity Fund L.P.
--------------------------------
<CAPTION>
INDEX
<S> <C>
PART I - FINANCIAL INFORMATION
Page
----
Item 1. Financial Statements
Statements of Financial Condition as of
September 30, 1996 (unaudited) and December 31, 1995 3
Statements of Operations (unaudited) for the three
months and nine months ended September 30, 1996 and 1995 4
Statements of Changes in Partners' Capital for the
nine months ended September 30, 1996 (unaudited) and
the year ended December 31, 1995 5
Note to Unaudited Financial Statements --
September 30, 1996 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 7
Part II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 8
SIGNATURES 9
</TABLE>
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<TABLE>
PART I FINANCIAL INFORMATION
Item 1 FINANCIAL STATEMENTS
THE GLOBAL OPPORTUNITY FUND L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
September 30, December 31,
1996 1995
-------------
- ------------
(unaudited)
<S> <C> <C>
ASSETS
Equity in commodity futures trading accounts:
Cash $ 568,875 $2,390,033
United States Treasury securities, at cost plus
accrued interest which approximates market value 1,423,635
333,364
Net unrealized gain on open contracts 140,143
423,350
---------
- ----------
Total equity in commodity futures trading accounts 2,132,653
3,146,747
Other receivables 29,357
11,255
----------
- ----------
Total assets $2,162,010
$3,158,002
==========
==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Accrued administrative expenses $ 17,567 $
17,493
Accrued brokerage commissions and fees 25,825
19,179
Interest payable
4,452
Accrued management fees 11,145
51,297
Accrued incentive fees
74,653
State taxes payable
6,252
Redemptions payable 67,847
Miscellaneous payables 236
8,343
----------
- ----------
Total liabilities 122,620
181,669
PARTNERS' CAPITAL
Limited partners (units outstanding: 20,563 and 24,658) 1,986,454
2,911,630
General partner (units outstanding: 537) 52,936
64,703
----------
- ----------
Total partners' capital 2,039,390 2,976,333
----------
- ----------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $2,162,010
$3,158,002
==========
==========
NET ASSET VALUE PER UNIT - LIMITED PARTNERS $ 96.60
$ 118.08
==========
==========
NET ASSET VALUE PER UNIT - GENERAL PARTNER $ 98.58
$ 120.49
==========
==========
<FN>
See note to unaudited financial statements.
</FN>
</TABLE>
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<TABLE>
THE GLOBAL OPPORTUNITY FUND L.P.
STATEMENTS OF OPERATIONS
(unaudited)
<CAPTION>
Three Months Ended Nine Months
Ended
September 30, September
30,
1996 1995 1996
1995
------ ------
- ------ ------
<S> <C> <C> <C>
<C>
REVENUES:
Trading profit/(loss):
Realized $(199,246) $(254,559) $ (66,972)
$1,473,863
Change in unrealized 134,009 34,674 (283,207)
(392,340)
Foreign currency gain/(loss) 542 (20,635) (2,179)
2,795
---------- ---------- ----------
- -----------
Total trading and foreign
currency profit/(loss) (64,695) (240,520) (352,358)
1,084,318
United States Treasury securities,
change in market value 61,012 (75)
61,012 7,435
Interest income (36,999) 34,360 (2,581)
143,473
---------- ---------- ----------
- -----------
Total revenues (40,682) (206,235) (293,927)
1,235,226
EXPENSES:
Brokerage commissions 38,964 65,985 130,049
227,099
Management fees 10,371 31,634 47,396
91,103
Incentive fees --- 13,996 4,324
250,615
Other administrative expenses 18,420 12,000 51,200
39,000
State replacement taxes ( 638) (6,035) (6,253)
438
---------- ---------- ----------
- ----------
Total expenses 67,117 117,580 226,716
608,255
---------- ---------- ----------
- ----------
NET INCOME/(LOSS) $(107,799) $(323,815) $(520,643)
$ 626,971
========== ========== ==========
==========
NET INCOME/(LOSS) ALLOCATED TO:
Limited Partners $(105,198) $(318,327) $(508,876)
$ 620,250
========== ========== ==========
==========
General Partner $ (2,601) $ (5,488) (11,767)
$ 6,721
========== ========== ==========
==========
NET INCOME/(LOSS) PER UNIT
OUTSTANDING FOR ENTIRE PERIOD
Limited Partners $ (4.75) $ (10.01) $ (21.48)
$ 12.28
========== ========== =========
==========
General Partner $ (4.84) $ (10.22) $ (21.91)
$ 12.51
========== ========== =========
==========
<FN>
See note to unaudited financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE GLOBAL OPPORTUNITY FUND L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
<CAPTION>
TOTAL UNITS OF
PARTNERSHIP LIMITED GENERAL
INTEREST PARTNERS' PARTNER'S
TOTAL
-------------- --------- ---------
- -----
<S> <C> <C> <C> <C>
PARTNERS' CAPITAL
December 31, 1994 47,815 $4,205,575 $48,753
$4,254,328
Redemption of 22,620 units of
Limited Partnership interest (22,620) (2,353,248)
(2,353,248)
Net income 1,059,303 15,950
1,075,253
-------- ----------- -------
- -----------
PARTNERS' CAPITAL
December 31, 1995 25,195 2,911,630 64,703
2,976,333
Redemption of 4,095 units of
Limited Partnership interest (4,095) (416,300)
(416,300)
Net loss (508,876) (11,767)
(520,643)
------- ----------- --------
- -----------
PARTNERS' CAPITAL
September 30, 1996
(unaudited) 21,100 $1,986,454 $52,936
$2,039,390
======= =========== ========
===========
<FN>
See note to unaudited financial statements.
</FN>
</TABLE>
<PAGE>
THE GLOBAL OPPORTUNITY FUND L.P.
NOTE TO UNAUDITED FINANCIAL STATEMENTS
September 30, 1996
NOTE A - BASIS OF PRESENTATION
- ------ ---------------------
The unaudited financial statements of The Global Opportunity
FundL.P. (the "Partnership") have been prepared in accordance
with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and
Rule 10-01 of Regulation S-X. Accordingly, they do not include
all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments considered
necessary for a fair presentation of the financial condition and
results of operations of the Partnership for the periods
presented have been included. For further information, refer to
the financial statements and footnotes thereto included in the
Partnership's annual report on Form 10-K for the year ended
December 31, 1995.
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Capital Resources
The purpose of the Partnership is to trade commodity interests;
as such, the Partnership does not have, nor does it expect to
make, any capital expenditures or have any capital assets that
are not operating capital or assets. The Partnership's use of
assets is solely to provide necessary margin or premiums for, and
to pay any losses incurred in connection with, its trading
activity. Redemption of additional units in the future will
impact the amount of funds available for trading commodity
interests. Redemptions of units during the quarter ended
September 30, 1996 reduced the amount of funds available by
$127,529.
Liquidity
Most United States commodity exchanges limit fluctuations in
commodity futures contract prices during a single day by
regulations referred to as "daily price fluctuation limits" or
"daily limits". During a single trading day, no trades may be
executed at a price beyond the daily limit. Once the price of a
futures contract has reached the daily limit for that day,
positions in that contract can neither be taken nor liquidated.
Commodity futures prices have occasionally reached the daily
limit for several consecutive days with little or no trading.
Similar occurrences could prevent the Partnership from promptly
liquidating unfavorable positions and subject the Partnership to
substantial losses which could exceed the margin initially
committed to such trades. In addition, even if commodity futures
prices have not reached the daily limit, the Partnership may not
be able to execute futures trades at favorable prices if little
trading in such contracts is taking place. Other than these
limitations on liquidity, which are inherent in the Partnership's
trading of commodity interests, the Partnership's assets are
highly liquid and are expected to remain so.
Results of Operations
Given the volatility of the markets in which the Partnership
trades, its quarterly results could fluctuate significantly and
are not indicative of the expected results for the fiscal year.
Strong employment data and higher interest rates adversely
affected the Fund's long U.S. Treasury Bond and Note positions
early in the quarter. These losses were offset somewhat by gains
in foreign financial market positions. For the quarter and nine
months ended September 30, 1996 the Fund had a trading loss of
$64,695 and $352,358, respectively. This compares to a loss of
$240,520 and a profit of $1,084,318 in the same periods last
year.
Management fees and brokerage commissions declined during the
three and nine month periods ended September 30, 1996 compared to
the same periods last year consistent with the decline in Fund
assets. No incentive fees were paid to the trading advisors
during the current quarter due to the trading losses incurred.
The difference in General Partner and Limited Partner unit values
is due to the Limited Partners' capital accounts initially having
been charged $2 per unit for organization and offering expenses
whereas the General Partner's capital account was not charged.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
No reports were filed on Form 8-K during the three months ended
September 30, 1996.
<PAGE>
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 Global Opportunity Fund L.P.
--------------------------------
(Registrant)
BY: Rodman & Renshaw Futures Management, Inc., General Partner
BY: /s/
PAUL M. DILLON
--------------
Paul M. Dillon, President and Director
Date: November 12, 1996
BY: /s/MARTIN G. PEMBROKE
------------------
Martin G. Pembroke, Treasurer
Date: November 12, 1996
<PAGE>
EXHIBIT INDEX
Exhibit 27 Article 5 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 568,875
<SECURITIES> 1,563,778 <F1>
<RECEIVABLES> 29,357
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,162,010
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 2,162,010
<CURRENT-LIABILITIES> 122,620
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,039,390 <F2>
<TOTAL-LIABILITY-AND-EQUITY> 2,162,010
<SALES> 0
<TOTAL-REVENUES> (293,927)
<CGS> 0
<TOTAL-COSTS> 226,716
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (520,643)
<INCOME-TAX> 0
<INCOME-CONTINUING> (520,643)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (520,643)
<EPS-PRIMARY> (21.48) <F3>
<EPS-DILUTED> 0
<FN>
<F1>
This figure represents $1,423,635 of U.S. Treasury securities and
$140,143 of unrealized gain on open contracts.
<F2>
This figure represents $1,986,454 of Limited Partners' Capital
and $52,936 of General Partner's Capital.
<F3>
The net earnings per unit for a Limited Partner is ($21.48). The
net earnings per unit for the General Partner is ($21.91).
</FN>
</TABLE>
