<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: September 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: $12,041,182.
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
Statements of Financial Condition (UNAUDITED)
<TABLE>
<CAPTION>
30-Sep-99 31-Dec-98
Assets: ------------ ------------
<S> <C> <C>
Investment in U.S. Treasury bills
(Cost $13,050,210 & $14,136,127) 13,050,210 14,136,127
Money market mutual funds 298,345 587,303
Unrealized appreciation on open contracts (37,545) 240,636
Cash 154,186 481,341
------------ ------------
Total Assets $ 13,465,196 $ 15,445,407
============ ============
Liabilities & Partners' Capital:
Accounts payable and accrued expenses 38,429 63,005
Redemptions payable to unit holders, net 118,048 383,508
Accrued brokerage commissions 80,396 92,361
Accrued New Profit - -
------------ ------------
Total Liabilities 236,873 538,874
Trust Capital:
General Partner interest 1,187,141 1,075,924
Limited Partners' interest (7,893.524 &
9,349.387 Units of Beneficial Interest
outstanding at September 30, 1999 and
December 31, 1998) 12,041,182 13,830,609
------------ ------------
Total Trust Capital 13,228,323 14,906,533
------------ ------------
Total Liabilities and Trust Capital $ 13,465,196 $ 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 September 30, 1999 and 1998 (UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
------------ ------------
<S> <C> <C>
Revenues:
Realized Gain(Loss) on Closed Contracts (338,970) 135,855
Change in Unrealized Gain(Loss) (503,819) 1.510,773
Interest Income 174,844 212,755
Foreign Exchange Gain(Loss) (8,933) (11,965)
------------ ------------
$ (676,878) $ 1,847,418
Expenses:
Brokerage Commissions 260,454 311,358
17.5% Profit Share (Accrued) - -
Administrative 21,112 22,364
------------ ------------
$ 281,566 $ 333,722
============ ============
Net Income(Loss) $ (958,444) $ 1,513,696
Net Income(Loss) allocated to General Partner $ (58,744) $ 114,615
Net Income(Loss) allocated to Limited Partners $ (899,700) $ 1,399,081
Increase(Decrease) in Redemption Value
for each Unit outstanding throughout
each period $ (108.96) $ 132.76
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
Statements of Operations
For the nine months ended September 30, 1999 and 1998 (UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
------------ ------------
<S> <C> <C>
Revenues:
Realized Gain(Loss) on Closed Contracts 1,293,098 (48,769)
Change in Unrealized Gain(Loss) (264,072) 878,491
Interest Income 528,358 680,836
Foreign Exchange Gain(Loss) (17,884) (20,522)
------------ ------------
$ 1,539,500 $ 1,490,036
Expenses:
Brokerage Commissions 832,535 990,145
17.5% Profit Share (Accrued) 77,599 -
Administrative 59,130 68,585
------------ ------------
$ 969,264 $ 1,058,730
============ ============
Net Income(Loss) $ 570,236 $ 431,306
Net Income(Loss) allocated to General Partner $ 111,217 $ 92,845
Net Income(Loss) allocated to Limited Partners $ 459,019 $ 338,461
Increase(Decrease) in Redemption Value
for each Unit outstanding throughout
each period $ 46.14 $ 42.23
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
Statements of Trust Capital
For the nine months ended September 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
Limited General
Partners Partner Total
------------ ------------ ------------
<S> <C> <C> <C>
Trust Equity at December 31, 1998
(9,349.387 Units) 13,830,609 1,075,924 14,906,533
Redemption of 1,455,863 Units (2,248,446) - (2,248,446)
Net Gain(Loss) in Trust Equity 459,019 111,217 570,236
------------ ------------ ------------
Trust Equity at September 30, 1999 12,041,182 1,187,141 13,228,323
(7,893.524 Units) ============ ============ ============
Redemption Value per Unit
at September 30, 1999 1525.45
============
</TABLE>
Statements of Cash Flows
For the nine months ended September 30, 1999 and 1998 (UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
------------ ------------
<S> <C> <C>
Cash Flows from Operating Activities:
Net Income(Loss) 570,236 431,306
Adjustments to reconcile Net Income
(Loss) to Net Cash Flows from
Operating Activities:
Decrease (Increase) in Equity in
Futures and Forward Trading Accounts 1,441,894 2,194,664
(Decrease) Increase in Accrued Expenses (114,338) (21,643)
------------ ------------
Net Cash Flows from Operating Activities 1,897,792 2,604,327
Cash Flows from Financing Activities:
Redemption of Limited and General
Partner Units and Unit Equivalents (2,513,906) (2,273,530)
------------ ------------
Net Change in Cash (616,114) 330,797
Cash - Beginning of Year 1,068,644 486,243
------------ ------------
Cash - End of Period 452,530 817,040
============ ============
</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 nine months ended September 30, 1999.
<TABLE>
<CAPTION>
30-Sep-99 31-Dec-98
------------- -------------
<S> <C> <C>
Ending Equity $ 13,228,323 $ 14,906,533
</TABLE>
The partnership's net assets declined 11.26% in the first three quarters
of 1999. This is the net result of redemptions and net profit/loss
on trading.
The fund NAV registered a sizable decline during the third quarter of 1999.
Trading in stock index futures, interest futures and dollar currency
forwards produced losses that far outweighed modest gains from
cross-currency and exotic currency trading.
Uncertainty concerning Japanese monetary and fiscal policy produced
volatile, non-directional price activity in euro-yen and Japanese
government bond futures. Similarly, in the United States, market
participants grappled with the implications of continuing strong growth,
rising inflation concerns and incessant threats of official interest rate
increases by the Federal Reserve. Consequently, short positions in US and
Japanese interest rate futures produced losses in the quarter that were
greater than the gains registered on short positions in European interest
rate futures.
Not surprisingly, these interest rate uncertainties also had a negative
impact on foreign exchange rates. Losses were registered on both long and
short dollar positions versus the euro, Swiss franc, Danish kroner and
Norwegian krona. These losses outweighed gains from long yen positions
against various currencies and from exotic currency trading.
With such volatility in interest rates and foreign exchange rates, it is
probably not unexpected to note that stock index futures were also erratic
in the July-September quarter. Hence, losses were registered on both long
and short positions in the Hang Seng and Nikkei indices, and on a long
Topix index position.
<PAGE>
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 General Partner administers the business of the Fund through various
systems and processes maintained by the General Partner. The General
Partner's modifications for Year 2000 compliance are substantially complete.
The expenses incurred to date by the General Partner in preparing for
Year 2000 compliance have not had a material adverse impact on the General
Partner's financial position, and any additional expenses that may be
incurred in connection with Year 2000 related matters are not
expected to have a material adverse impact on the General Partner'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 General Partner, 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 have participated 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 have participated in the Futures
Industry Association Y2K industry-wide test for Year 2000 compliance during
the first and second quarters of 1999. The General Partner believes that
those tests have been successful. The General Partner 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 General Partner
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 General Partner 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 10th day of November, 1999.
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
By: Millburn Ridgefield Corporation,
General Partner
By /s/ Tod A. Tanis November 11, 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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> Jul-01-1990
<PERIOD-END> Sep-30-1999
<CASH> 452,531
<SECURITIES> 13,050,210
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 13,465,196
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 13,465,196
<CURRENT-LIABILITIES> 236,873
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 13,228,323
<TOTAL-LIABILITY-AND-EQUITY> 13,465,196
<SALES> 0
<TOTAL-REVENUES> 1,539,500
<CGS> 0
<TOTAL-COSTS> 832,535
<OTHER-EXPENSES> 59,130
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 570,236
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 570,236
<EPS-BASIC> 46.14
<EPS-DILUTED> 46.14
</TABLE>
