<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, 1999
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: $13,706,636.
<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-99 31-Dec-98
Assets: ------------ ------------
<S> <C> <C>
Investment in U.S. Treasury bills
(Cost $13,837,238 & $14,136,127) 13,837,238 14,136,127
Money market mutual funds 502,218 587,303
Options owned at market (Cost $0) - -
Unrealized appreciation on open contracts 480,272 240,636
Cash 533,797 481,341
------------ ------------
Total Assets $ 15,353,525 $ 15,445,407
============ ============
Liabilities & Partners' Capital:
Accounts payable and accrued expenses 26,714 63,005
Redemptions payable to unit holders, net 203,654 383,508
Accrued brokerage commissions 93,037 92,361
Accrued New Profit 77,599 -
------------ ------------
Total Liabilities 401,004 538,874
Trust Capital:
General Partner interest 1,245,885 1,075,924
Limited Partners' interest (8,386.271 &
9,349.387 Units of Beneficial Interest
outstanding at June 30, 1999 and
December 31, 1998) 13,706,636 13,830,609
------------ ------------
Total Trust Capital 14,952,521 14,906,533
------------ ------------
Total Liabilities and Trust Capital $ 15,353,525 $ 15,445,407
============ ============
</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, 1999 and 1998 (UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
------------ ------------
<S> <C> <C>
Revenues:
Realized Gain(Loss) on Closed Contracts 1,039,132 (557,490)
Change in Unrealized Gain(Loss) 571,069 (203,201)
Interest Income 170,358 219,931
Foreign Exchange Gain(Loss) 310 (3,954)
------------ ------------
$ 1,780,869 (544,714)
Expenses:
Brokerage Commissions 286,786 320,902
17.5% Profit Share (Accrued) 77,599 -
Administrative 22,773 26,445
------------ ------------
$ 387,158 $ 347,347
============ ============
Net Income(Loss) $ 1,393,711 $ (892,061)
Net Income(Loss) allocated to General Partner $ 139,048 (31,239)
Net Income(Loss) allocated to Limited Partners $ 1,254,663 (860,822)
Increase(Decrease) in Redemption Value
for each Unit outstanding throughout
each period $ 143.77 $ (74.41)
</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, 1999 and 1998 (UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
------------ ------------
<S> <C> <C>
Revenues:
Realized Gain(Loss) on Closed Contracts 1,625,035 (521,393)
Change in Unrealized Gain(Loss) 239,636 (295,513)
Interest Income 353,515 468,081
Foreign Exchange Gain(Loss) (1,807) (8,557)
------------ ------------
$ 2,216,379 $ (357,382)
Expenses:
Brokerage Commissions 572,081 678,787
17.5% Profit Share (Accrued) 77,599 -
Administrative 38,019 46,221
------------ ------------
$ 687,699 725,008
============ ============
Net Income(Loss) $ 1,528,680 $(1,082,390)
Net Income(Loss) allocated to General Partner $ 169,961 $ (21,770)
Net Income(Loss) allocated to Limited Partners $ 1,358,719 $(1,060,620)
Increase(Decrease) in Redemption Value
for each Unit outstanding throughout
each period $ 155.10 $ (90.53)
</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, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
Limited General
Partners Partner Total
------------ ------------ ------------
<S> <C> <C> <C>
Trust Equity at December 31, 1998
(9349.387 Units) 13,830,609 1,075,924 14,906,533
Redemption of 963.116 Units -1,482,692 - -1,482,692
Net Gain(Loss) in Trust Equity 1,358,719 169,961 1,528,680
------------ ------------ ------------
Trust Equity at June 30, 1999 13,706,636 1,245,885 14,952,521
(8386.271 Units) ============ ============ ============
Redemption Value per Unit
at June 30, 1999 1,634.41
============
</TABLE>
Statements of Cash Flows
For the six months ended June 30, 1999 and 1998 (UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
------------ ------------
<S> <C> <C>
Cash Flows from Operating Activities:
Net Income(Loss) 1,528,680 (1,082,390)
Adjustments to reconcile Net Income
(Loss) to Net Cash Flows from
Operating Activities:
Decrease (Increase) in Equity in
Futures and Forward Trading Accounts 137,031 3,060,229
(Decrease) Increase in Accrued Expenses (35,794) (47,371)
------------ ------------
Net Cash Flows from Operating Activities 1,629,917 1,930,468
Cash Flows from Financing Activities:
Redemption of Limited and General
Partner Units and Unit Equivalents (1,662,546) (1,383,012)
------------ ------------
Net Change in Cash (32,629) 547,456
Cash - Beginning of Year 1,068,644 486,243
------------ ------------
Cash - End of Period 1,036,015 1,033,699
============ ============
</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, 1998.
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, 1999.
<TABLE>
<CAPTION>
30-Jun-99 31-Dec-98
------------- -------------
<S> <C> <C>
Ending Equity $ 14,952,521 $ 14,906,533
</TABLE>
The partnership's net assets increased .31% in the first half of 1999.
This was a result of redemptions and net loss on trading.
The fund was slightly profitable during the first quarter of 1999. Sizable
profits from long dollar positions vis-a-vis the Euro, Swiss franc, and
Danish krone dominated results during the January-March period. Strong
economic growth in the US vs. Europe, high US interest rates compared to
declining European interest rates, and concern about the impact of the
Kosovo situation on fiscal policies and economic growth throughout Europe,
weighed on the European currencies versus the dollar. Interest rate and
exotic currency trading were each fractionally profitable. On the other
hand, industrial metals (copper, aluminum, and zinc) prices were volatile
throughout the quarter, producing losses on both sides of the market. In
stock index trading, losses from trading the Hang Seng Index, first from
the long side and then from the short side, more than offset gains from
trading Japanese stock indices from the long side in March. A loss on a
long Brazilian real position in January, as the "brief economic crisis"
in Brazil emerged, accounted for the bulk of the losses from exotic currency
trading.
The Fund registered a sizable advance during the second quarter of 1999.
Profits from trading interest rate and stock index futures led the way,
with smaller gains produced in metals and currency. The most prominent
feature of the global financial landscape during the quarter was rising
interest rates worldwide. Consequently, short positions in both long-term
and short-term interest rate futures for the US, Europe and Japan were
highly profitable. Notwithstanding these rising interest rates, long
positions in the Japanese Nikkei and Topix, and the Hong Kong Hang Seng
stock indices resulted in gains as the continuing recovery following the
Asia meltdown attracted more and more investors who had been underweight
Asia in their portfolios. In the same way, long positions in exotic
currencies were profitable due at least in part to these equity flows.
A long dollar position versus the persistently weak euro was also
profitable. On the other hand, trading of dollar/yen was unprofitable
as Japan's currency continued to whipsaw in the broad 115-125 (Yen) range.
Cross rate currency trading involving the yen was also a losing
proposition. Turning to metals, a short position in gold benefited
from continuing official sales of the precious metal, and a long
position in aluminum produced a gain.
The Year 2000 Computer Issue
Many existing computer systems use only two digits to refer to a year.
This technique can cause the systems to treat the year 2000 as 1900, an
effect commonly known as the "Year 2000 Problem." The Fund, like other
financial and business organizations, depends on the smooth functioning of
computer systems and could be adversely affected if the computer systems
on which it relies do not properly process and calculate date-related
information concerning dates on or after January 1, 2000.
The Managing Owner administers the business of the Fund through various
systems and processes maintained by the Managing Owner. The Managing
Owner's modifications for Year 2000 compliance are proceeding and are
expected to be completed, with respect to mission-critical and all other
systems, by the 3rd quarter of 1999. The expenses incurred to date by the
Managing Owner in preparing for Year 2000 compliance have not had a
material adverse impact on the Managing Owner's financial position, and
the expenses to be incurred in becoming fully Year 2000 compliant are not
expected to have a material adverse impact on the Managing Owner's
financial position. The Fund itself has no systems or information
technology applications relevant to its operations and, thus, has no
expenses related to addressing the Year 2000 Problem.
In addition to the Managing Owner, the Fund is dependent on the capability
of the various exchanges, Clearing Brokers and other third parties with
which the Fund has material relationships to prepare adequately for the
Year 2000 Problem and its impact on their systems and processes. The
major U.S. futures exchanges participated in the Futures Industry Association
Y2K Beta Test during September 1998 and will participate in the Futures
Industry Association Y2K industry-wide test for Year 2000 compliance during
the first and second quarters of 1999. The Futures Industry Association
Y2K Tests are to test links with outside entities. The Clearing Brokers
are addressing their Year 2000 issues and will participate in the Futures
Industry Association Y2K industry-wide test for Year 2000 compliance during
the first and second quarters of 1999. The Managing Owner has implemented
procedures to monitor the progress of the Clearing Brokers, and other third
parties with which the Fund has a material relationship in addressing their
Year 2000 issues.
The most likely and most significant risk to the Fund associated with the
lack of Year 2000 readiness is the failure of third parties, including the
Clearing Brokers, exchanges, foreign exchange counterparties and various
regulators to resolve their Year 2000 issues in a timely manner. This
risk could involve the temporary inability to transfer funds electronically
or to determine the Net Asset Value of the Fund, in which case sales could
be suspended and/or redemption payments delayed until the Fund's assets
could be valued and/or funds could be transferred. If the Managing Owner
believes, prior to December 31, 1999, that any third party has failed to
resolve a Year 2000 issue likely to have a material adverse impact on the
Fund, the Managing Owner will attempt to close any Fund positions carried
by such third party or exposed to such third party's failure to resolve its
Year 2000 issue and to cease trading with or through such third party until
such issue is resolved.
<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 second day of August, 1999.
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
By: Millburn Ridgefield Corporation,
General Partner
By /s/ Tod A. Tanis August 2, 1999
Tod A. Tanis
Vice-President
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<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-31-1999
<PERIOD-START> APR-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 1,036.015
<SECURITIES> 13,837,238
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 15,353,525
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 15,353,525
<CURRENT-LIABILITIES> 401,004
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 14,952,521
<TOTAL-LIABILITY-AND-EQUITY> 15,353,525
<SALES> 0
<TOTAL-REVENUES> 1,780,869
<CGS> 0
<TOTAL-COSTS> 286,786
<OTHER-EXPENSES> 100,372
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,393,711
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,393,711
<EPS-BASIC> 143.77
<EPS-DILUTED> 143.77
</TABLE>
