<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 June 30, 1996 or
X 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
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(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 X
--- ---
Total Pages In This Report - 10
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The Global Opportunity Fund L.P.
INDEX
PART I - FINANCIAL INFORMATION
Page
----
Item 1. Financial Statements
Statements of Financial Condition as of
June 30, 1996 (unaudited) and December 31, 1995 3
Statements of Operations (unaudited) for the three
months and six months ended June 30, 1996 and 1995 4
Statements of Changes in Partners' Capital
for the six months ended June 30, 1996 (unaudited)
and the year ended December 31, 1995 5
Note to Unaudited Financial Statements --
June 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
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<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
THE GLOBAL OPPORTUNITY FUND L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
June 30,
1996 December 31,
(unaudited) 1995
----------- ------------
<S> <C> <C>
ASSETS
Equity in futures and forward trading accounts:
Cash $ 661,389 $2,390,033
United States Treasury securities, at cost
plus accrued interest which approximates
market value 1,625,434 333,364
Net unrealized gain on open contracts 6,134 423,350
---------- ----------
Total equity in futures and forward
trading accounts 2,292,957 3,146,747
Receivable from commodity broker 18,751 11,255
State taxes receivable 5,615
---------- ----------
Total assets $2,317,323 $3,158,002
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accrued administrative expenses $ 12,033 $ 17,493
Accrued brokerage commissions and fees 14,287 19,179
Interest payable 4,452
Accrued management fees 9,815 51,297
Accrued incentive fees 6,234 74,653
State taxes payable 6,252
Miscellaneous payables 236 8,343
---------- ----------
Total liabilities 42,605 181,669
---------- ----------
Partners' capital
Limited partners (units outstanding: 1996-21,896;
1995-24,658) 2,219,181 2,911,630
General partner (units outstanding: 537) 55,537 64,703
---------- ----------
Total partners' capital 2,274,718 2,976,333
---------- ----------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $2,317,323 $3,158,002
========== ==========
NET ASSET VALUE PER UNIT - LIMITED PARTNERS $ 101.35 $ 118.08
========== ==========
NET ASSET VALUE PER UNIT - GENERAL PARTNER $ 103.42 $ 120.49
========== ==========
See note to the unaudited financial statements.
</TABLE>
<PAGE>
<TABLE>
THE GLOBAL OPPORTUNITY FUND L.P.
STATEMENTS OF OPERATIONS
(unaudited)
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1996 1995 1996 1995
-------- -------- -------- --------
<S> <C> <C> <C> <C>
REVENUES:
Trading profit/(loss):
Realized $ 494,176 $ 858,979 $ 132,274 $1,728,422
Change in unrealized (184,059) (597,999) (417,216) (427,014)
Foreign currency gain/(loss) (367) 1,350 (2,721) 23,430
--------- ---------- ---------- ----------
Total trading and foreign
currency profit/(loss) 309,750 262,330 (287,663) 1,324,838
Interest income, net 25,638 70,274 34,418 116,623
--------- ---------- ---------- ----------
Total revenues 335,388 332,604 (253,245) 1,441,461
--------- ---------- ---------- ----------
EXPENSES:
Brokerage commissions 45,090 80,436 91,085 161,114
Management fees 13,137 32,475 37,025 59,469
Incentive fees 4,324 86,916 4,324 236,619
Other administrative expenses 22,690 12,000 32,780 27,000
State taxes 637 6,215 (5,615) 6,473
--------- ---------- ---------- ----------
Total expenses 85,878 218,042 159,599 490,675
--------- ---------- ---------- ----------
NET INCOME/(LOSS) $ 249,510 $ 114,562 $ (412,844) $ 950,786
========= ========== ========== ==========
NET INCOME/(LOSS) ALLOCATED TO:
Limited partners $ 243,653 $ 113,217 $ (403,678) $ 938,580
========= ========== ========== ==========
General partner $ 5,857 $ 1,345 $ (9,166) $ 12,206
========= ========== ========== ==========
NET INCOME/(LOSS) PER UNIT
OUTSTANDING FOR ENTIRE PERIOD $ 10.69 $ 2.46 $ (16.73) $ 22.29
========= ========== ========== ==========
Limited Partners
General Partner $ 10.91 $ 2.51 $ (17.07) $ 22.73
========= ========== ========== ==========
See note to the unaudited financial statements.
</TABLE>
<PAGE>
<TABLE>
THE GLOBAL OPPORTUNITY FUND L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
<CAPTION>
TOTAL UNITS OF LIMITED GENERAL TOTAL
PARTNERSHIP PARTNERS' PARTNER'S PARTNERS'
INTEREST CAPITAL CAPITAL CAPITAL
-------------- --------- --------- ---------
<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
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 2,762 units of
Limited Partnership interest
(unaudited) (2,762) (288,771) (288,771)
Net loss (unaudited) (403,678) (9,166) (412,844)
--------- ---------- -------- ----------
PARTNERS' CAPITAL
June 30, 1996
(unaudited) 22,433 $2,219,181 $55,537 $2,274,718
========= ========== ======== ==========
See note to the unaudited financial statements.
</TABLE>
<PAGE>
THE GLOBAL OPPORTUNITY FUND L.P.
NOTE TO UNAUDITED FINANCIAL STATEMENTS
JUNE 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. The amount of
funds available was reduced by $152,093 from redemptions of units
during the quarter ended June 30, 1996, and by $288,771 for the six
months ended June 30, 1996. Redemption requests for July and
August, 1996, totalling approximately $54,400 have been received
through August 12, 1996.
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.
Revenues from trading operations for the second quarter of 1996
improved 18% to $309,750 from $262,330 for the same period last
year. For the same period, net income more than doubled to
$249,510 from $114,562. This improvement was primarily a result of
substantial gains in grain market positions.
During the first half of 1996, trading operations lost $287,663
compared to a profit of $1,324,838 for the same period last year.
Significant profits in the second quarter of 1996 recaptured 37% of
the losses realized in the first quarter. Adverse trading
conditions during the first quarter, primarily in interest rate
markets, negatively impacted results of operations.
As a result of limited partner redemptions and a reduction in
notional funding, management fees decreased from $32,475 to $13,137
and from $59,469 to $37,025 for the three month and six month
periods ending June 30, 1995 and 1996, respectively. For the first
half of 1996, incentive fees, which are based on trading profits,
decreased as a result of the first quarter trading losses.
Brokerage commissions and interest income, which correspond to net
asset value, as defined, also decreased during the same periods.
Administrative expenses increased in 1996 due to the Fund directly
paying certain professional fees which were formerly absorbed in
part by the General Partner.
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.
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits.
Exhibit 27, Financial Data Schedule
(b) Reports on Form 8-K.
None
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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.
Global Opportunity Fund L.P.
(Registrant)
BY: Rodman & Renshaw Futures Management, Inc., General Partner
BY: /s/
PAUL M. DILLON
--------------
Paul M. Dillon, Director and President
Date: August 12, 1996
BY: /s/MARTIN G. PEMBROKE
------------------
Martin G. Pembroke, Treasurer
Date: August 12, 1996
<PAGE>
EXHIBIT INDEX
Exhibit 27 Article 5 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 661,389
<SECURITIES> 1,631,568 <F1>
<RECEIVABLES> 24,366
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,317,323
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 2,317,323
<CURRENT-LIABILITIES> 42,605
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,274,718 <F2>
<TOTAL-LIABILITY-AND-EQUITY> 2,317,323
<SALES> 0
<TOTAL-REVENUES> (253,245)
<CGS> 0
<TOTAL-COSTS> 159,599
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (412,844)
<INCOME-TAX> 0
<INCOME-CONTINUING> (412,844)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (412,844)
<EPS-PRIMARY> (16.73) <F3>
<EPS-DILUTED> 0
<FN>
<F1>
This figure represents $1,625,434 of U.S. Treasury securities and
$6,134 of unrealized gain on open contracts.
<F2>
This figure represents $2,219,181 of Limited Partners' Capital
and $55,537 of General Partner's Capital.
<F3>
The net earnings per unit for a Limited Partner is ($16.73). The
net earnings per unit for the General Partner is ($17.07).
</FN>
</TABLE>
