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 March 31, 2000
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____
Page 1 of 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, 2000 (unaudited) and December 31, 1999 3
Statements of Operations (unaudited) for the three
month periods ended March 31, 2000 and 1999 4
Note to Unaudited Financial Statements - March 31, 2000 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6
Part II - Other Information 7
Item 3. Exhibits and Reports on Form 8-K 7
Signatures 8
<PAGE>
The Global Opportunity Fund L.P.
Statement of Financial Condition
(Unaudited)
March 31, December 31,
2000 1999
Equity in futures and forward trading accounts:
Cash $ 93,695 $ 156,952
United States Treasury securities, at cost
plus accrued interest which approximates
market value 486,967 592,151
Net unrealized gain on open contracts 39,299 16,592
--------- --------
Total equity in futures and
forward trading account 619,961 765,695
Other receivable 368 32
--------- ---------
Total Assets $ 620,329 $ 765,727
========= =========
Liabilities and Partners' Capital
Liabilities:
Accrued administrative expenses $ 10,118 $ 19,166
Accrued brokerage commission and fees 2,866 4,012
Accrued management fees 2,752 3,244
--------- ---------
15,736 26,422
Partners' Capital
Limited Partners (units outstanding 5,515;
1999 - 5,765) 549,894 675,075
General Partner (units outstanding : 537) 54,699 64,230
--------- ---------
604,593 739,305
--------- ---------
Total Liabilities and Partners' Capital $620,329 $765,727
========= =========
Net Asset Value per Unit - Limited Partners $ 99.90 $ 117.10
Net Asset Value per Unit - General Partners $ 101.86 $ 119.61
See Note to Unaudited Financial Statements
<PAGE>
The Global Opportunity Fund L.P.
Statement of Operations
(Unaudited)
Three Months Ended
March 31,
Income 2000 1999
Trading profit/(loss):
Realized $(108,143) $(10,163)
Change in unrealized 22,707 18,170
Foreign currency gain/(loss) (1,214) (272)
-------- --------
Total trading profit (loss) and foreign
currency gain/(loss) (86,650) 7,735
Interest Income 8,873 10,146
-------- --------
Total Income (77,777) 17,881
Expenses
Brokerage commissions $ 11,961 $ 17,498
Management fees 2,752 2,535
Other administrative expenses 15,000 18,000
-------- -------
29,713 38,033
-------- --------
Net Income/(Loss) $(107,490) $(20,152)
======== ========
Net Income/(Loss) Allocated To:
Limited Partners $(97,959) $(18,670)
======== ========
General Partners $ (9,531) $ (1,482)
======== ========
Net Income/(Loss) per unit outstanding for entire period
Limited Partners $(17.20) $ (2.70)
======== ========
General Partners $(17.75) $ (2.76)
======== ========
See Note to Unaudited Financial Statements
<PAGE>
The Global Opportunity Fund L.P.
Note to Unaudited Financial Statements
March 31, 2000
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 of a normal recurring nature 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, 1999.
<PAGE>
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 $27,219 from redemptions
of units during the quarter ended March 31, 2000.
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.
<PAGE>
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 $86,650 for the first quarter of
2000 versus a gain of $7,735 for the same period last year.
During the first three months of 2000, net loss was $107,490
compared to a net loss of $20,152 for the same period last year.
At March 31, 2000 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 is due to less dollar volume in
trading. The decline in management fees, which are based on the Net Asset
Value, was due to redemptions, which resulted in lower net assets of the Fund.
There were no incentive fees because of the 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 March 31,
2000.
<PAGE>
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: Rosenthal Collins Futures Management, Inc., General Partner
By: ______________________________________
J. Robert Collins, President
Date: April 15, 2000
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<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 93,695
<SECURITIES> 486,967
<RECEIVABLES> 368
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 39,299
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 620,329
<CURRENT-LIABILITIES> 15,736
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 604,593
<TOTAL-LIABILITY-AND-EQUITY> 620,329
<SALES> 0
<TOTAL-REVENUES> (77,777)
<CGS> 0
<TOTAL-COSTS> 29,713
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (107,490)
<INCOME-TAX> 0
<INCOME-CONTINUING> (107,490)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (107,490)
<EPS-BASIC> (17.20)
<EPS-DILUTED> 0
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