<PAGE> 1
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, 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.
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INDEX
Page
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements -
Statements of Financial Condition as of
June 30, 1997 (unaudited) and December 31, 1996 3
Statements of Operations (unaudited) for the
three-month and six-month periods ended June 30, 1997 and 1996 4
Statements of Changes in Partners' Capital for the
six-month period ended June 30, 1997 (unaudited) and the
year ended December 31, 1996 5
Note to Unaudited Financial Statements --
June 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> JUNE 30,
1997 DECEMBER 31,
(UNAUDITED) 1996
---------------- ------------
<S> <C> <C> <C>
ASSETS
Equity in futures and forward trading accounts:
Cash $ 774,885 $ 651,740
United States Treasury securities, at cost
plus accrued interest which approximates 1,027,429 1,427,594
market value
Net unrealized gain/(loss) on open contracts 11,921 13,055
----------- -----------
Total equity in futures and forward
trading accounts 1,814,235 2,092,389
Other receivables 4,302 29,855
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Total assets $ 1,818,537 $ 2,122,244
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accrued administrative expenses $ 6,903 $ 26,088
Accrued brokerage commissions and fees 9,752 12,621
Accrued management fees 7,982 7,852
Accrued incentive fees 2,723 40,949
Miscellaneous payables 236 236
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Total liabilities 27,596 87,746
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Partners' capital
Limited partners (units outstanding: 14,354
and 16,826) 1,725,086 1,970,331
General partner (units outstanding: 537) 65,855 64,167
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Total partners' capital 1,790,941 2,034,498
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TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 1,818,537 $ 2,122,244
=========== ===========
NET ASSET VALUE PER UNIT - LIMITED PARTNERS $ 120.18 $ 117.10
=========== ===========
NET ASSET VALUE PER UNIT - GENERAL PARTNER $ 122.64 $ 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 SIX MONTHS ENDED
JUNE 30, JUNE 30,
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
REVENUES:
Trading profit/(loss):
Realized $ (56,684) $ 494,176 $ 203,486 $ 132,274
Change in unrealized (57,595) (184,059) (1,134) (417,216)
Foreign currency gain/(loss) 2,641 (367) (5,090) $ (2,721)
----------- ----------- ----------- -----------
Total trading profit and
foreign currency gain/(loss) (111,638) 309,750 197,262 (287,663)
Interest income, net 22,205 25,638 40,621 34,418
----------- ----------- ----------- -----------
TOTAL REVENUES (89,433) 335,388 237,883 (253,245)
----------- ----------- ----------- -----------
EXPENSES:
Brokerage commissions 35,320 45,090 75,175 91,085
Management fees 9,289 13,137 19,946 37,025
Incentive fees 2,723 4,324 54,479 4,324
Other administrative expenses 15,000 22,690 23,532 32,780
State taxes (1,399) 637 1,590 (5,615)
----------- ----------- ----------- -----------
TOTAL EXPENSES 60,933 85,878 174,722 159,599
----------- ----------- ----------- -----------
NET INCOME/(LOSS) $ (150,366) $ 249,510 $ 63,161 $ (412,844)
=========== =========== =========== ===========
NET INCOME/(LOSS) ALLOCATED TO:
Limited partners $ (145,016) $ 243,653 $ 61,473 $ (403,678)
=========== ========== =========== ===========
General partner $ (5,350) $ 5,857 $ 1,688 $ (9,166)
=========== ========== =========== ===========
NET INCOME/(LOSS) PER UNIT
OUTSTANDING FOR ENTIRE PERIOD
Limited partners $ (9.77) $ 10.69 $ 3.08 $ (16.73)
=========== ========== =========== ===========
General partner $ (9.96) $ 10.91 $ 3.15 $ (17.07)
=========== =========== =========== ===========
</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 (2,472) (306,718) (306,718)
Net income (loss) 61,473 1,688 63,161
---------- ---------- ------------ -----------
PARTNERS' CAPITAL
June 30, 1997
(Unaudited) 14,891 1,725,086 65,855 1,790,941
========== =========== ============= =============
See note to the unaudited financial statement.
</TABLE>
5
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THE GLOBAL OPPORTUNITY FUND L.P.
NOTE TO UNAUDITED FINANCIAL STATEMENTS
June 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 $112,088 from redemptions of units
during the quarter ended June 30, 1997 and by $306,718 for the six months ended
June 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
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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 loss of $111,638 for the second quarter of 1997
versus a gain of $309,750 for the same period last year. Volatility in the
interest rate sector, as well as in the energy and grain markets contributed to
the fund's losses. A sharp decline in interest rates, as a result of
expectations of strong economic growth combined with controlled inflation,
buoyed most sectors of the U.S. capital markets. The U.S. Department of
Agriculture's reports of near record acreage planting led to a decline in grain
prices. Partially offsetting some of these losses were gains in foreign
currency transactions which demonstrated the benefits of the fund's global
diversification.
During the first half of 1997, trading operations gained $197,262 compared to a
loss of $287,663 for the same period last year.
At June 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 June 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.
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(Registrant)
BY: Rodman & Renshaw Futures Management, Inc., General Partner
BY: ------------------------------
F. L. Kirby
President and a Director
Date: August 11, 1997
BY: ------------------------------
Thomas G. Pinou
Treasurer and a Director
Date: August 11, 1997
9
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 774,885
<SECURITIES> 1,039,350
<RECEIVABLES> 4,302
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,818,537
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,818,537
<CURRENT-LIABILITIES> 27,596
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 1,818,537
<SALES> 0
<TOTAL-REVENUES> 237,883
<CGS> 0
<TOTAL-COSTS> 174,722
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 63,161
<INCOME-TAX> 0
<INCOME-CONTINUING> 63,161
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 63,161
<EPS-PRIMARY> 3.08
<EPS-DILUTED> 0
</TABLE>
