<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 10-Q
[x] Quarterly report pursuant to Section 13 of 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
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Commission File Number 0-22640
The Global Opportunity Fund L.P.
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(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 [ ]
Total Pages In This Report - 9
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The Global Opportunity Fund L.P.
INDEX
Page
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements -
Statements of Financial Condition as of
September 30, 1997 (unaudited) and December 31, 1996 3
Statements of Operations (unaudited) for the three month
and nine-month periods ended September 30, 1997 and 1996 4
Statements of Changes in Partners' Capital for the
nine-month period ended September 30, 1997 (unaudited) and the
year ended December 31, 1996 5
Note to Unaudited Financial Statements --
September 30, 1997 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
Part II - OTHER INFORMATION 8
Item 6. Exhibits and Reports on Form 8-K 8
SIGNATURES 9
2
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
THE GLOBAL OPPORTUNITY FUND L.P.
STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
SEPTEMBER 30,
1997 DECEMBER 31,
(UNAUDITED) 1996
-------------- ---------
ASSETS
<S> <C> <C>
Equity in futures and forward trading accounts:
Cash $ 536,485 $ 651,740
United States Treasury securities, at cost
plus accrued interest which approximates 1,027,801 1,427,594
market value
Net unrealized gain/(loss) on open contracts 73,893 13,055
---------- ----------
Total equity in futures and forward
trading accounts 1,638,179 2,092,389
Cash at Bank 8,084
Other receivables 3,549 29,855
---------- ----------
Total assets $1,649,812 $2,122,244
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accrued administrative expenses $ 10,732 $ 26,088
Accrued brokerage commissions and fees 15,793 12,621
Accrued management fees 6,760 7,852
Accrued incentive fees 5,218 40,949
Miscellaneous payables 236 236
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Total liabilities 38,739 87,746
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Partners' capital
Limited partners (units outstanding: 13,344
and 16,826) 1,547,525 1,970,331
General partner (units outstanding: 537) 63,548 64,167
---------- ----------
Total partners' capital 1,611,073 2,034,498
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TOTAL LIABILITIES AND PARTNERS' CAPITAL $1,649,812 $2,122,244
========== ==========
NET ASSET VALUE PER UNIT - LIMITED PARTNERS $ 115.97 $ 117.10
========== =========
NET ASSET VALUE PER UNIT - GENERAL PARTNER $ 118.34 $ 119.49
========== =========
</TABLE>
See note to the unaudited financial statements.
3
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THE GLOBAL OPPORTUNITY FUND L.P.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1997 1996 1997 1996
---- ---- ---- ----
REVENUES:
<S> <C> <C> <C> <C>
Trading profit/(loss):
Realized $ (74,773) $(199,246) $ 128,712 $ (66,972)
Change in unrealized 61,972 134,009 60,838 (283,207)
Foreign currency gain/(loss) (1,280) 542 (6,370) $ (2,179)
---------- ---------- --------- ----------
Total trading profit and
foreign currency gain/(loss) (14,081) (64,695) 183,180 (352,358)
Interest income, net 19,910 24,013 60,531 58,431
---------- ---------- --------- ----------
TOTAL REVENUES 5,829 (40,682) 243,711 (293,927)
---------- ---------- --------- ----------
EXPENSES:
Brokerage commissions 32,587 38,964 107,762 130,049
Management fees 8,563 10,371 28,509 47,396
Incentive fees 5,218 59,697 4,324
Other administrative expenses 20,400 18,420 43,932 51,200
State taxes (1,684) (638) (95) (6,253)
---------- ---------- --------- ----------
TOTAL EXPENSES 65,084 67,117 239,805 226,716
---------- ---------- --------- ----------
NET INCOME/(LOSS) $ (59,225) $(107,799) $ 3,906 $ (520,643)
========== ========== ========= ==========
NET INCOME/(LOSS) ALLOCATED TO:
Limited partners $ (56,918) $(105,198) $ 4,525 $ (508,876)
========== ========== ========= ==========
General partner $ ( 2,307) $ (2,601) $ (619) $ (11,767)
========== ========== ========= ==========
NET INCOME/(LOSS) PER UNIT
OUTSTANDING FOR ENTIRE PERIOD
Limited partners $ (4.21) $ (4.75) $ (1.13) $ (21.48)
========== ========== ========= ==========
General partner $ (4.30) $ (4.84) $ (1.15) $ (21.91)
========== ========== ========= ==========
</TABLE>
See note to the unaudited financial statements.
4
<PAGE> 5
THE GLOBAL OPPORTUNITY FUND L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
<TABLE>
<CAPTION>
TOTAL UNITS
OF PARTNERSHIP LIMITED GENERAL
INTEREST PARTNERS PARTNER TOTAL
-------------- ----------- -------- -----------
<S> <C> <C> <C> <C>
PARTNERS' CAPITAL
December 31, 1995 25,195 2,911,630 64,703 2,976,333
Redemptions (7,832) (833,482) (833,482)
Net income (loss) (107,817) (536) (108,353)
----------- ------------ --------- ------------
PARTNERS' CAPITAL
December 31, 1996 17,363 1,970,331 64,167 2,034,498
Redemptions (3,482) (427,331) (427,330)
Net income (loss) 4,525 (619) 3,906
----------- ------------ ---------- -----------
PARTNERS' CAPITAL
September 30, 1997 13,881 1,547,525 63,548 1,611,073
=========== ============ ========== ===========
(Unaudited)
</TABLE>
See note to the unaudited financial statements.
5
<PAGE> 6
THE GLOBAL OPPORTUNITY FUND L.P.
NOTE TO UNAUDITED FINANCIAL STATEMENTS
September 30, 1997
NOTE A - BASIS OF PRESENTATION
The unaudited financial statements of The Global Opportunity Fund L.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,
1996.
6
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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.
The Net Asset Values are calculated and equity reports are reviewed by the
General Partner on a daily basis to monitor the trading advisors' activity to
minimize the market and credit risks of the Fund. The General Partner also
monitors the trading advisors' compliance with investment objectives as set
forth in the prospectus. 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 $120,613 from redemptions of units
during the quarter ended September 30, 1997 and by $427,331 for the nine months
ended September 30, 1997.
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. The counterparty for all exchange-traded contracts
through March 24, 1997 was ED&F Man International, Inc. and Rand Financial
Services, Inc. after that date. For over-the-counter contracts, the
counterparty was ED&F Man Capital Inc. through March 24, 1997 and Rand
Financial Services, Inc. thereafter.
7
<PAGE> 8
Results of Operations
Given the volatility of the markets in which the Partnership trades, its
quarterly results can fluctuate significantly and are not indicative of the
expected results for the fiscal year.
The fund experienced a trading loss of $14,081 for the third quarter of 1997
versus a loss of $64,695 for the same period last year. The Fund began the
third quarter on a profitable note with the largest gains derived from the
strength of the U.S. Dollar in the currency sector. Renewed market optimism
for low inflation and continued growth in the U.S. economy also added to the
Fund's gains in the fixed income markets. Key reversals in the financial and
currency sectors the middle of the quarter contributed to the Fund's decline in
August. Performance of the Fund was mixed as the quarter concluded, with
profits from the energy and metals products not sufficiently large enough to
offset declines in the Fund's position in the U.S. fixed income markets.
During the first nine months of 1997, trading operations gained $183,180
compared to a loss of $352,358 for the same period last year.
At September 30, 1997 there was no material credit risk exposure exceeding 10%
of total assets for either exchange-traded or over-the-counter contracts.
The decline in brokerage commissions and management fees, which are based on
the Net Asset Value, was due to redemptions, which resulted in lower net assets
of the Fund. Incentive fees are a direct reflection of the profit/(loss)
during this quarter.
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,
1997.
8
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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.
The Global Opportunity Fund L.P.
--------------------------------
(Registrant)
BY: Rodman & Renshaw Futures Management, Inc., General Partner
BY:
-----------------------------------
F. L. Kirby
President and a Director
Date: November 10, 1997
BY:
-----------------------------------
Thomas G. Pinou
Treasurer and a Director
Date: November 10, 1997
9
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 544,569
<SECURITIES> 1,101,694
<RECEIVABLES> 3,549
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,649,812
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,649,812
<CURRENT-LIABILITIES> 38,739
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 1,649,812
<SALES> 0
<TOTAL-REVENUES> 243,711
<CGS> 0
<TOTAL-COSTS> 239,805
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 3,906
<INCOME-TAX> 0
<INCOME-CONTINUING> 3,906
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,906
<EPS-PRIMARY> (1.13)
<EPS-DILUTED> 0
</TABLE>
