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, 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 June 30, 2000 (unaudited) and December 31, 1999 3
Statements of Operations (unaudited) for the three
month and six month periods ended June 30, 2000
and 1999 4
Note to Unaudited Financial Statements - June 30, 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
Part I. Financial Information
Item 1. Financial Statements
The Global Opportunity Fund L.P.
Statement of Financial Condition
(Unaudited)
June 30 December 31
2000 1999
Assets
Equity in futures and forward trading accounts:
Cash $ 81,101 $ 156,952
United States Treasury securities, at cost
plus accrued interest which approximates 493,64 592,151
market value
Net unrealized gain on open contracts 18,39 16,592
Total equity in futures and forward trading
account 593,13 765,695
Other receivable 40 32
Total Assets $ 593,539 $ 765,727
Liabilities and Partners' Capital
Liabilities:
Accrued administrative expenses $ 16,255 $ 19,166
Accrued brokerage commission and fees 2,80 4,012
Accrued management fees 2,67 3,244
21,73 26,422
Partners' Capital
Limited Partners (units outstanding
2000-5,515; 1999-5,765) 517,96 675,075
General Partner (units outstanding : 2000 and
1999 - 537) 53,84 64,230
571,80 739,305
$593,53 $765,727
Net Asset Value per Unit - Limited Partners $ 93.91 $ 117.10
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Net Asset Value per Unit - General Partners $ 100.26 $ 119.61
See Notes 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,
2000 1999 2000 1999
Income
Trading profit/(loss):
Realized $35,388 $ 15,622 $(72,755 $45,611
Change in unrealized (20,909) 68,558 1,79 (59,657)
Foreign currency (loss) (3,518) (294) (4,732 (8,929)
Total trading profit and
foreign currency (loss) 10,961 83,886 (75,689 (22,975)
Interest Income 8,095 10,101 16,96 33,513
Total Income 19,056 93,987 (58,721 10,538
Expenses
Brokerage commissions $10,974 $ 17,659 $22,93 $50,851
Management fees 2,672 3,134 5,42 10,785
Incentive fees - 7,021 2,952
Other administrative expenses 15,000 18,000 30,00 36,000
28,646 45,814 58,36 100,588
Net Income/(Loss) $(9,590) $ 48,173 $(117,081 $(90,050)
Net Income/(Loss) Allocated To:
Limited Partners $(8,732) $ 46,049 $(106,691 $(85,593)
General Partners $ (859) $ 2,124 $(10,390 $(4,457)
Net Income/(Loss) per unit
outstanding for entire period
Limited Partners $ (1.58) $ 6.57 $ (18.77 $ (8.19)
General Partners $ (1.60) $ 3.96 $ (19.35 $ (8.30)
See Notes to the unaudited financial statements
The Global Opportunity Fund L.P.
Note to Unaudited Financial Statements
June 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
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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 $50,415 from
redemptions of units during the six months ended June 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.
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 $10,961 for the second quarter of
2000 versus a gain of $83,886 for the same period last year.
During the second quarter of 2000, the Fund's net loss was $9,590 compared
to net income of $48,173 for the same period last year.
At June 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. 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 June 30,
2000.
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: July 15, 2000
