UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarterly period ended June 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 June 30, 1999 and December 31, 1998 3
Statements of Operations (unaudited) for the three
month period ended June 30, 1999 and 1998 4
Statements of Changes in Partners' Capital (unaudited)
for the three month period ended June 30, 1999 and
the year ended December 31, 1998 5
Note to Unaudited Financial Statements -
June 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
(Unaudited)
June 30, December 31
Assets 1999 1998
Equity in futures and forward trading accounts:
Cash $ 282,683 $ 367,839
United States Treasury securities, at cost
plus accrued interest which approximates
market value 604,775 598,039
Net unrealized gain/(loss) on open contracts 94,847 8,120
--------- ---------
Total equity in futures and
forward trading account 982,306 973,998
Other receivable 1,117 1,080
--------- ---------
Total Assets $983,422 $975,077
========= =========
Liabilities and Partners' Capital
Liabilities:
Accrued administrative expenses $ 14,361 $ 25,009
Accrued brokerage commission and fees 5,308 5,618
Accrued management fees 3,134 4,217
Accrued incentive fees 7,021 -
--------- ---------
29,823 34,844
Partners' Capital
Limited Partners (units outstanding 6,807;
1998 - 6,927) 882,507 871,265
General Partner (units outstanding : 537;
1998 - 537) 71,093 68,969
--------- ---------
953,599 940,233
--------- ---------
Total Liabilities and Partners' Capital $983,422 $975,077
========= =========
Net Asset Value per Unit - Limited Partners $ 129.65 $ 125.78
Net Asset Value per Unit - General Partners $ 132.39 $ 128.43
See Note to the unaudited financial statements
The Global Opportunity Fund L.P.
Statement of Operations
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
Revenues 1999 1998 1999 1998
Trading profit/(loss):
Realized $ 15,622 $ 39,994 $ 5,459 $ 45,611
Change in unrealized 68,558 (60,284) 86,728 (59,657)
Foreign currency gain/(loss) (294) (4,544) (566) (8,929)
-------- -------- -------- --------
Total trading profit and foreign
currency gain/(loss) 83,886 (24,834) 91,621 (22,975)
Interest Income 10,101 17,085 20,247 33,513
-------- -------- -------- --------
Total Assets 93,987 (7,749) 111,868 10,538
Expenses
Brokerage commissions $ 17,659 $ 23,449 $ 35,157 $ 50,851
Management fees 3,134 3,381 5,669 10,785
Incentive fees 7,021 - 7,021 2,952
Other administrative expenses 18,000 18,000 36,000 36,000
State taxes - - - -
-------- -------- -------- --------
45,814 44,830 83,847 100,588
-------- -------- -------- --------
Net Income/(Loss) $ 48,173 $ (52,579) $ 28,022 $(90,050)
======== ======== ======== ========
Net Income/(Loss) Allocated To:
Limited Partners $ 46,049 $ (50,006) $ 25,898 $(85,593)
======== ======== ======== ========
General Partners $ 2,124 $ (2,573) $ 2,124 $ (4,457)
======== ======== ======== ========
Net Income/(Loss) per unit outstanding for entire period
Limited Partners $ 6.57 $ (4.73) $ 3.87 $ (8.19)
======== ======== ======== ========
General Partners $ 6.72 $ (4.79) $ 3.96 $ (8.30)
======== ======== ======== ========
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 (120) (14,656) (14,656)
Net Income (loss) 25,899 2,124 28,023
-------- -------- --------- ---------
Partners Capital June 30,1999 7,344 $882,508 $ 71,093 $ 953,601
========= ========= ========= =========
See Note to the unaudited financial statements
The Global Opportunity Fund L.P.
Note to Unaudited Financial Statements
June 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 $12,140 from
redemptions of units during the quarter ended June 30, 1999 and by $14,656 for
the Six months ended June 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 $83,886 for the second quarter of
1999 versus a loss of $24,834 for the same period last year.
During the first Six months of 1999, trading operations gain $91,621
compared to a loss of $22,975 for the same period last year.
At June 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 three months ended June 30,
1999.
Signatures
Pursuant to the requirements of Section 13 or 15(d) of the Securities
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: Rodman & Renshaw Futures Management, Inc., General Partner
By: /s/ J. Robert Collins
----------------------------------
J. Robert Collins, President
Date: July 10, 1999
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<PERIOD-END> JUN-30-1999
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