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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 March 31, 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
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Statements of Financial Condition as of
March 31, 1997 (unaudited) and December 31, 1996 3
Statements of Operations (unaudited) for the three
months ended March 31, 1997 and 1996 4
Statements of Changes in Partners' Capital for the
three months ended March 31, 1997 (unaudited) and
the year ended December 31, 1996 5
Note to Unaudited Financial Statements --
March 31, 1997 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
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>
MARCH 31, DECEMBER 31,
1997 1996
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(UNAUDITED)
ASSETS
<S> <C> <C>
Equity in futures and forwards trading accounts:
Cash $1,013,601 $ 651,740
United States Treasury securities, at cost plus
accrued interest which approximates market value 1,076,512 1,427,594
Net unrealized gain on open contracts 69,515 13,055
----------- ----------
Total equity in futures and forwards trading accounts 2,159,628 2,092,389
Other receivables 2,381 29,855
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Total assets $2,162,009 $2,122,244
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Accrued administrative expenses $ 28,000 $ 26,088
Accrued brokerage commissions and fees 9,140 12,621
Accrued management fees 8,452 7,852
Accrued incentive fees 61,387 40,949
State taxes payable 1,399
Miscellaneous payables 236 236
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Total liabilities 108,614 87,746
PARTNERS' CAPITAL
Limited partners (units outstanding: 15,254 and 16,826) 1,982,190 1,970,331
General partner (units outstanding: 537) 71,205 64,167
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Total partners' capital 2,053,395 2,034,498
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TOTAL LIABILITIES AND PARTNERS' CAPITAL $2,162,009 $2,122,244
========== ==========
NET ASSET VALUE PER UNIT - LIMITED PARTNERS $ 129.95 $ 117.10
========== ==========
NET ASSET VALUE PER UNIT - GENERAL PARTNER $ 132.60 $ 119.49
========== ==========
</TABLE>
See note to unaudited financial statements.
3
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THE GLOBAL OPPORTUNITY FUND L.P.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
1997 1996
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<S> <C> <C>
REVENUES:
Trading profit (loss):
Realized $260,170 $(361,902)
Change in unrealized 56,461 (233,157)
Foreign currency gain (loss) (7,731) (2,354)
-------- ---------
Total trading and foreign
currency gain (loss) 308,900 (597,413)
Interest income, net 18,416 8,780
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TOTAL REVENUES 327,316 (588,633)
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EXPENSES:
Brokerage commissions 39,855 45,995
Management fees 10,656 23,888
Incentive fees 51,756 ---
Administrative expenses 8,532 10,090
State taxes 2,989 (6,252)
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TOTAL EXPENSES 113,788 73,721
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NET INCOME (LOSS) $213,528 $ (662,354)
======== ==========
NET INCOME (LOSS) ALLOCATED TO:
Limited partners $206,490 $ (647,331)
======== ==========
General partner $ 7,038 $ (15,023)
======== ==========
NET (LOSS) INCOME PER UNIT
OUTSTANDING FOR ENTIRE PERIOD $ 12.85 $ (27.42)
Limited Partners
General Partner $ 13.11 $ (27.98)
======== ==========
</TABLE>
See note to the unaudited financial statements.
4
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THE GLOBAL OPPORTUNITY FUND L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
<TABLE>
<CAPTION>
TOTAL UNITS OF
PARTNERSHIP LIMITED GENERAL
INTEREST PARTNERS' PARTNER'S TOTAL
<S> <C>
PARTNERS' CAPITAL
December 31, 1995 25,195 $2,911,630 $64,703 $2,976,333
Redemption of 7,832 units of
Limited Partnership interest (7,832) (833,482) (833,482)
Net loss (107,817) (536) (108,353)
------ ---------- ------- -----------
PARTNERS' CAPITAL
December 31, 1996 17,363 1,970,331 64,167 2,034,498
Redemption of 1,572 units of
Limited Partnership interest (1,572) (194,631) (194,631)
Net income 206,490 7,038 213,528
------ ---------- ------- -----------
PARTNERS' CAPITAL
March 31, 1997
(unaudited) 15,791 $1,982,190 $71,205 $2,053,395
======= ========== ======= ==========
</TABLE>
See note to unaudited financial statements.
5
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THE GLOBAL OPPORTUNITY FUND L.P.
NOTE TO UNAUDITED FINANCIAL STATEMENTS
March 31, 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. Redemptions of units
during the quarter ended March 31, 1997 reduced the amount of funds
available by $194,631.
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
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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 profit of $308,900 for the first
quarter of 1997 versus a loss of $597,413 for the same period last
year. Bonds and currencies were the main contributors to this
profit based on upbeat economic indicators leading to inflationary
fears, expectations of a Federal Open Market Committee (FOMC)
tightening of interest rates, and expectations of future increases
in subsequent FOMC meetings. The strong U.S. Dollar also
contributed to profit improvement. In February the Fund also
profited from escalating coffee prices due to perceived tight
supplies as well as potential strike threats in Brazil. At March
31, 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 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
March 31, 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: May 13, 1997
BY:
-----------------------------------
Thomas G. Pinou
Treasurer and a Director
Date: May 13, 1997
9
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 1,013,601
<SECURITIES> 1,146,027
<RECEIVABLES> 2,381
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,162,009
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 2,162,009
<CURRENT-LIABILITIES> 108,614
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 2,162,009
<SALES> 0
<TOTAL-REVENUES> 327,316
<CGS> 0
<TOTAL-COSTS> 113,788
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 213,528
<INCOME-TAX> 0
<INCOME-CONTINUING> 213,528
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 213,528
<EPS-PRIMARY> 12.85
<EPS-DILUTED> 0
</TABLE>
