UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 10-Q
Annual Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarterly period ended September 30, 1999
Commission File Number: 0-22640
The Global Opportunity Fund L.P.
(Exact name of registrant as specified in its charter)
Illinois 36-3824101
(State or other jurisdiction of (I.R.S Employer
incorporation or organization) Identification No.)
Registrant's telephone number, including area code (312) 460-9200
Indicate by check mark whether the registrant (1) 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____
The Global Opportunity Fund L.P.
Index
Page
Part I - Financial Information
Item 1. Financial Statements
Statements of Financial Condition (unaudited)
as of September 30, 1999 and December 31, 1998 3
Statements of Operations (unaudited) for the three
month and nine month periods ended September 30, 1999
and 1998 4
Statements of Changes in Partners' Capital (unaudited)
for the nine month period ended September 30, 1999 and
the years ended December 31, 1998, 1997 and 1996 5
Note to Unaudited Financial Statements -
September 30, 1999 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
Part II - Other Information 8
Item 3. Exhibits and Reports on Form 8-K 8
Signatures 9
Part I - Financial Information
Item 1. Financial Statements
The Global Opportunity Fund L.P.
Statement of Financial Condition
September 30,
1999 December 31
Assets (Unaudited) 1998
Equity in futures and forward trading accounts:
Cash $ 249,618 $ 367,839
United States Treasury securities, at cost
plus accrued interest which approximates
market value 585,145 598,039
Net unrealized gain/(loss) on open contracts 56,352 8,120
--------- ---------
Total equity in futures and
forward trading account 891,115 973,998
Cash at Bank - -
Other receivable 983 1,080
--------- ---------
Total Assets $892,098 $975,078
========= =========
Liabilities and Partners' Capital
Liabilities:
Accrued administrative expenses $ 15,557 $ 25,009
Accrued brokerage commission and fees 4,826 5,618
Accrued management fees 3,663 4,217
Accrued incentive fees 6,872 -
Miscellaneous payables - -
--------- ---------
30,918 34,844
Partners' Capital
Limited Partners (units outstanding 5,995;
1998-6,927) 788,552 871,265
General Partner (units outstanding : 537;
1998-537) 72,628 68,969
--------- ---------
861,180 940,234
--------- ---------
Total Liabilities and Partners' Capital $892,098 $975,078
========= =========
Net Asset Value per Unit - Limited Partners $ 132.42 $ 125.78
Net Asset Value per Unit - General Partners $ 135.25 $ 128.43
See Note to the unaudited financial statements
The Global Opportunity Fund L.P.
Statement of Operations
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
Revenues 1999 1998 1999 1998
Trading profit/(loss):
Realized $ 92,398 $ 85,486 $ 97,857 $131,097
Change in unrealized (38,495) 148,772 48,232 89,115
Foreign currency gain/(loss) (2,142) (254) (2,708) (9,183)
-------- -------- -------- --------
Total trading profit and foreign
currency gain/(loss) 51,761 234,004 143,381 211,029
Interest Income 10,142 14,526 30,389 48,039
-------- -------- -------- --------
Total Income 61,903 248,530 173,770 259,068
Expenses
Brokerage commissions $ 16,592 $ 19,448 $ 51,749 $70,300
Management fees 3,663 2,940 9,332 13,725
Incentive fees 6,872 8,938 13,893 11,890
Other administrative expenses 16,000 18,000 52,000 54,000
State taxes - - - -
-------- -------- -------- --------
43,127 49,326 126,974 149,915
-------- -------- -------- --------
Net Income/(Loss) $ 18,776 $199,204 $ 46,796 $109,153
======== ======== ======== ========
Net Income/(Loss) Allocated To:
Limited Partners $ 15,117 $183,808 $ 43,137 $100,717
======== ======== ======== ========
General Partners $ 3,659 $ 15,396 $ 3,659 $ 8,436
======== ======== ======== ========
Net Income/(Loss) per unit outstanding
for entire period
Limited Partners $ 2.77 $ 23.51 $ 6.64 $ 15.32
======== ======== ======== ========
General Partners $ 2.86 $ 23.81 $ 6.82 $ 16.51
======== ======== ======== ========
See Notes to the unaudited financial statements
The Global Opportunity Fund L.P.
Statement of Changes in Partners' Capital
Total Units
of Partnership Limited General
Interest Partners Partners Total
Partners Capital December 31,1995 25,195 $2,911,630 $ 64,703 $2,976,333
Redemption (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
Redemption (4,341) (525,299) (525,299)
Net Income (loss) (3,572) (901) (4,473)
-------- -------- --------- ---------
Partners Capital December 31,1997 13,022 $1,441,460 $ 63,266 $1,504,726
Redemption (5,558) (635,278) - (635,278)
Net Income (loss) 65,083 5,703 70,786
-------- -------- --------- ---------
Partners Capital December 31,1998 7,464 $871,265 $ 68,969 $940,234
Redemption (972) (125,850) - (125,850)
Net Income (loss) 43,137 3.659 46.796
-------- -------- --------- ---------
Partners Capital September 30,1999 6,492 $ 788,552 $ 72,628 $861,180
======== ========= ========= =========
See Notes to the unaudited financial statements
The Global Opportunity Fund L.P.
Note to Unaudited Financial Statements
September 30, 1999
Note - 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,
1998.
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 maximize 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
interest. The amount of funds available was reduced by $111,194 from
redemptions of units during the quarter ended September 30, 1999 and by
$125,850 for the Nine months ended September 30, 1999.
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 liquidation 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 April 24, 1998 was Rand Financial Services and after that date the
counter party was Rosenthal Collins Group. For over-the-counter contracts, the
counterparty was Rand Financial Services through April 24, 1998 and Rosenthal
Collins Group thereafter.
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 gain of $51,761 for the third quarter of
1999 versus a gain of $234,004 for the same period last year.
During the first Nine months of 1999, trading operations gain $143,381
compared to a gain of $211,029 for the same period last year.
At September 30, 1999 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 3. Exhibits and Reports on Form 8-K
No reports were filed on Form 8-K during the nine months ended September
30, 1999.
Signatures
Pursuant to the requirements of Section 13 or 15(d) of the Securiites
Exchange Act of 1934 and to the extent possible due to the acquisition of the
registrant by the undersigned on April 24, 1998; 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: Rosenthal Collins Futures Management, Inc., General Partner
By: /s/ J. Robert Collins
-------------------------------
J. Robert Collins, President
Date: October 10, 1999
