<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarterly Period Ended: June 30, 1998
or
[ ] Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Commission File Number: 33-50388
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
(Exact name of registrant as specified in its charter)
Delaware 06-1346-879
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
c/o MILLBURN RIDGEFIELD CORPORATION
411 West Putnam Avenue
Greenwich, Connecticut 06830
(Address of principal executive offices)
Registrant's telephone number, including area code: (203) 625-7554
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant Limited Partnership Units
to Section 12(g) of the Act: (Title of Class)
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 [ ]
Aggregate market value of the voting and non-voting common equity held by
non-affiliates: $14,852,087
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
Statements of Financial Condition (UNAUDITED)
<TABLE>
<CAPTION>
30-Jun-98 31-Dec-97
Assets: ------------ ------------
<S> <C> <C>
Investment in U.S. Treasury bills
(Cost $15,286,121) 15,286,121 17,877,508
Money market mutual funds 420,325 123,446
Options owned at market (Cost $163,440) 189,852 160,575
Unrealized appreciation on open contracts (14,118) 484,001
Cash 613,374 362,797
------------ ------------
Total Assets $ 16,495,554 $ 19,008,327
============ ============
Liabilities & Partners' Capital:
Due to General Partner - 1,566
Accounts payable and accrued expenses 18,083 64,964
Redemptions payable to unit holders, net 560,597 270,284
Accrued brokerage commissions 106,696 105,620
------------ ------------
Total Liabilities 685,376 442,434
Trust Capital:
General Partner interest 958,091 979,861
Limited Partners' interest (10,817.510
Units of Beneficial Interest outstanding
- at June 30, 1998) 14,852,087 17,586,032
------------ ------------
Total Trust Capital 15,810,178 18,565,893
------------ ------------
Total Liabilities and Trust Capital $ 16,495,554 $ 19,008,327
============ ============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
Statements of Operations
For the three months ended June 30, 1998 and 1997 (UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
------------ ------------
<S> <C> <C>
Revenues:
Realized Gain(Loss) on Closed Contracts (557,490) (491,252)
Change in Unrealized Gain(Loss) (203,201) 367,959
Interest Income 219,931 292,038
Foreign Exchange Gain(Loss) (3,954) 21,047
------------ ------------
$ (544,714) $ 189,792
Expenses:
Brokerage Commissions 320,902 378,698
17.5% Profit Share (Accrued) - -
Administrative 26,445 18,117
------------ ------------
$ 347,347 $ 396,815
============ ============
Net Income(Loss) $ (892,061) $ (207,023)
Net Income(Loss) allocated to General Partner $ (31,239) $ 8,644
Net Income(Loss) allocated to Limited Partners $ (860,822) $ (215,667)
Increase(Decrease) in Redemption Value
for each Unit outstanding throughout
each period $ (74.41) $ (15.96)
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
Statements of Operations
For the six months ended June 30, 1998 and 1997 (UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
------------ ------------
<S> <C> <C>
Revenues:
Realized Gain(Loss) on Closed Contracts (521,393) 3,280,536
Change in Unrealized Gain(Loss) (295,513) (932,531)
Interest Income 468,081 539,346
Foreign Exchange Gain(Loss) (8,557) (6,466)
------------ ------------
$ (357,382) $ 2,880,885
Expenses:
Brokerage Commissions 678,787 810,727
17.5% Profit Share (Accrued) - 334,889
Administrative 46,221 41,794
------------ ------------
$ 725,008 $ 1,187,410
============ ============
Net Income(Loss) $(1,082,390) $ 1,693,475
Net Income(Loss) allocated to General Partner $ (21,770) $ 116,034
Net Income(Loss) allocated to Limited Partners $(1,060,620) $ 1,577,441
Increase(Decrease) in Redemption Value
for each Unit outstanding throughout
each period $ (90.53) $ 107.10
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
Statements of Trust Capital
For the six months ended June 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Limited General
Partners Partner Total
------------ ------------ ------------
<S> <C> <C> <C>
Trust Equity at December 31, 1997
(12,016.382 Units) 17,586,032 979,861 18,565,893
Redemption of 1,198.872 Units (1,673,325) - (1,673,325)
Net Gain(Loss) in Trust Equity (1,060,620) (21,770) (1,082,390)
------------ ------------ ------------
Trust Equity at June 30, 1998 14,852,087 958,091 15,810,178
(10,817.510 Units) ============ ============ ============
Redemption Value per Unit
at June 30, 1998 1,372.97
============
</TABLE>
Statements of Cash Flows
For the six months ended June 30, 1998 and 1997 (UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
------------ ------------
<S> <C> <C>
Cash Flows from Operating Activities:
Net Income(Loss) (1,082,390) 1,693,475
Adjustments to reconcile Net Income
(Loss) to Net Cash Flows from
Operating Activities:
Decrease (Increase) in Equity in
Futures and Forward Trading Accounts 3,060,229 481,651
(Decrease) Increase in Accrued Expenses (47,371) (26,162)
------------ ------------
Net Cash Flows from Operating Activities 1,930,468 2,148,964
Cash Flows from Financing Activities:
Redemption of Limited and General
Partner Units and Unit Equivalents (1,383,012) (2,705,825)
------------ ------------
Net Change in Cash 547,456 (556,861)
Cash - Beginning of Year 486,243 1,618,698
------------ ------------
Cash - End of Period 1,033,699 1,061,837
============ ============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. NOTES TO FORM 10-Q
These interim consolidated financial statements do not include all the
disclosures contained in the annual financial statements. These interim
statements have been prepared by management without audit by Independent
Public Accountants. The consolidated statements of financial condition has
been derived from the audited financial statements as of December 31, 1997.
The consolidated results of operation as displayed, should not be considered
indicative of results to be expected for the entire year.
Management discussion and analysis of the consolidated financial statements
for the six months ended June 30, 1998.
<TABLE>
<CAPTION>
30-Jun-98 31-Dec-97
------------- -------------
<S> <C> <C>
Ending Equity $ 15,810,178 $ 18,565,893
</TABLE>
The partnership's net assets declined 14.84% in the first half of 1998.
This was a result of redemptions and net loss on trading.
Trading conditions in financial futures and currencies were erratic during
the first three months of 1998. A downtrend in global interest rates led to
significant profits for the portfolio during January, even though currency
and stock index trading produced losses. During February, however, a sharp
reversal of this interest rate trend in the U.S., along with increased
volatility in trading currencies and stock indices, produced sizable losses
in the portfolio. In March, currency trading was quite profitable, but losses
were registered again in interest rates and stock indices.
Market conditions remained volatile during 1998's second quarter. In April,
the fund's broad diversification failed to prevent a sizable loss as negative
results were registered in each of the four market sectors comprising the
portfolio--currency, interest rate, stock index, and metal trading. Although
the fund is broadly diversified among more than forty markets in four sectors
which are not correlated over time, April characterized the unusual situation
of all four sectors producing losses concurrently. In May, on the other
hand, all four sectors of the portfolio produced profits, thereby recovering
about one-third of the prior month's losses. In June, profits in currency,
stock index, and metal trading slightly outdistanced the losses from interest
rate trading.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized, in the
City of New York and State of New York on the 12th day of August, 1998.
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
By: Millburn Ridgefield Corporation,
General Partner
By /s/ Tod A. Tanis August 12, 1998
Tod A. Tanis
Vice-President
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
STATEMENTS OF FINANCIAL CONDITION, OPERATIONS, AND CHANGES IN PARTNERS'
CAPITAL AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> APR-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 1,033,699
<SECURITIES> 15,286,121
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 16,495,554
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 16,495,554
<CURRENT-LIABILITIES> 685,376
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 15,810,178
<TOTAL-LIABILITY-AND-EQUITY> 16,495,554
<SALES> 0
<TOTAL-REVENUES> (357,382)
<CGS> 0
<TOTAL-COSTS> 678,787
<OTHER-EXPENSES> 46,221
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,082,390)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,082,390)
<EPS-PRIMARY> (90.53)
<EPS-DILUTED> (90.53)
</TABLE>
