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 September 30, 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
1
The Global Opportunity Fund L.P.
Index
Page
Part I - Financial Information
Item 1. Financial Statements
Statements of Financial Condition
as of September 30, 2000 (unaudited)and December 31, 1999 3
Statements of Operations (unaudited) for the three
month and nine month periods ended September 30, 2000
and 1999 4
Note to Unaudited Financial Statements - September 30, 2000 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6-7
Part II - Other Information 8
Item 3. Exhibits and Reports on Form 8-K 8
Signatures 9
2
Part I. Financial Information
Item 1. Financial Statements
The Global Opportunity Fund L.P.
Statement of Financial Condition
(Unaudited)
September 30 December 31
1999
Assets 2000
Equity in futures and forward trading accounts:
Cash $ 177,960 $ 156,952
United States Treasury securities, at cost
plus accrued interest which approximates 298,507 592,151
market value
Net unrealized gain/(loss) on open contracts (3,815) 16,592
Total equity in futures and forward
trading account 472,651 765,695
Cash at Bank - -
Other receivable 811 32
Total Assets $ 473,462 $ 765,727
Liabilities and Partners' Capital
Liabilities:
Accrued administrative expenses $ 18,105 $ 19,166
Accrued brokerage commission and fees 2,707 4,012
Accrued management fees - 3,244
Accrued incentive fees 2,544 -
23,356 26,422
Partners' Capital
Limited Partners (units outstanding 2000-4,978;
1999-5,765) 405,421 675,075
General Partner (units outstanding 2000 - 537;
1999
- 537) 44,685 64,230
450,105 739,305
Total Liabilities and Partners' Capital $ 473,462 $ 765,727
3
Net Asset Value per Unit - Limited Partners $ 81.44 $ 117.10
Net Asset Value per Unit - General Partners $ 83.21 $ 119.61
See Notes 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,
2000 1999 2000 1999
Income
Trading profit/(loss):
Realized $ (55,428) $ 92,398 $(128,184) $ 97,857
Change in unrealized (22,205) (38,495) (20,407) 48,232
Foreign currency gain/(loss) (1,066) (2,142) (5,797) (2,708)
Total trading profit and
foreign currency gain/(loss) (78,699) 51,761 (154,388) 143,381
Interest Income 7,166 10,142 24,134 30,389
Total Income (71,533) 61,903 (130,254) 173,770
Expenses
Brokerage commissions $ 8,533 $ 16,592 $ 31,468 $ 51,749
Management fees 651 3,663 6,076 9,331
Incentive fees 2,544 6,872 2,544 13,893
Other administrative expenses 9,000 16,000 39,000 52,000
20,728 43,127 79,088 126,973
Net Income/(Loss) $ (92,261) $ 18,776 $(209,342) $ 46,797
Net Income/(Loss) Allocated To:
Limited Partners $ (83,106) $ 15,117 $(189,797) $ 43,137
General Partners $ (9,155) $ 3,659 $ (19,545) $ 3,659
Net Income/(Loss) per unit
outstanding for entire period
Limited Partners $ (16.89) $ 2.77 $ (35.66) $ 6.64
General Partners $ (17.05) $ 2.86 $ (36.40) $ 6.82
See Notes to the unaudited financial statements
5
The Global Opportunity Fund L.P.
Note to Unaudited Financial Statements
September 30, 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.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
Capital Resources
6
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 $29,441 from
redemptions of units during the quarter ended September 30, 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.
7
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 $78,699 for the third quarter of
2000 versus a gain of $51,761 for the same period last year.
During the third quarter of 2000, trading operations loss $92,261 compared
to a gain of $18,776 for the same period last year.
At September 30, 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. Management fees, which are based on the Net Asset Value, decreased
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. Due to
the significant losses, trading manager were changed on August 1 from
Willowbridge Associates to Crossbow Capital Management
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.
8
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
September 30, 2000.
9
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: ______________________________________
J. Robert Collins, President
Date: October 20, 2000
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