<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: March 31, 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: $13,369,757.
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
Statements of Financial Condition (UNAUDITED)
<TABLE>
<CAPTION>
31-Mar-99 31-Dec-98
Assets: ------------ ------------
<S> <C> <C>
Investment in U.S. Treasury bills
(Cost $14,136,881 & $14,136,127) 14,136,881 14,136,127
Money market mutual funds 37,351 587,303
Unrealized appreciation on open contracts - 305,810
Cash 830,443 481,341
------------ ------------
Total Assets $ 15,004,675 $ 15,510,581
============ ============
Liabilities & Partners' Capital:
Unrealized depreciation on open contracts 90,798 65,174
Accounts payable and accrued expenses 39,483 63,005
Redemptions payable to unit holders, net 312,060 383,508
Accrued brokerage commissions 85,740 92,361
------------ ------------
Total Liabilities 528,081 604,048
Trust Capital:
General Partner interest 1,106,837 1,075,924
Limited Partners' interest (8,969.157 &
9,349.387 Units of Beneficial Interest
outstanding at March 31, 1999 and
December 31, 1998) 13,369,757 13,830,609
------------ ------------
Total Trust Capital 14,476,594 14,906,533
------------ ------------
Total Liabilities and Trust Capital $ 15,004,675 $ 15,510,581
============ ============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
Statements of Operations
For the three months ended March 31, 1999 and 1998 (UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
------------ ------------
<S> <C> <C>
Revenues:
Realized Gain(Loss) on Closed Contracts 585,903 36,097
Change in Unrealized Gain(Loss) (331,433) (92,312)
Interest Income 183,157 248,150
Foreign Exchange Gain(Loss) (2,117) (4,603)
------------ ------------
$ 435,510 $ 187,332
Expenses:
Brokerage Commissions 285,295 357,885
17.5% Profit Share (Accrued) - -
Administrative 15,246 19,776
------------ ------------
$ 300,541 $ 377,661
============ ============
Net Income(Loss) $ 134,969 $ (190,329)
Net Income(Loss) allocated to General Partner $ 30,913 $ 9,469
Net Income(Loss) allocated to Limited Partners $ 104,056 $ (199,798)
Increase(Decrease) in Redemption Value
for each Unit outstanding throughout
each period $ 11.33 $ (16.12)
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
Statements of Trust Capital
For the three months ended March 31, 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 380.230 Units (564,908) - (564,908)
Net Gain(Loss) in Trust Equity 104,056 30,913 134,969
------------ ------------ ------------
Trust Equity at March 31, 1999 13,369,757 1,106,837 14,476,594
(8,969.157 Units) ============ ============ ============
Redemption Value per Unit
at March 31, 1999 1,490.64
============
</TABLE>
Statements of Cash Flows
For the three months ended March 31, 1999 and 1998 (UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
------------ ------------
<S> <C> <C>
Cash Flows from Operating Activities:
Net Income(Loss) 134,969 (190,329)
Adjustments to reconcile Net Income
(Loss) to Net Cash Flows from
Operating Activities:
Decrease (Increase) in Equity in
Futures and Forward Trading Accounts 330,680 981,947
(Decrease) Increase in Accrued Expenses (30,143) (19,144)
------------ ------------
Net Cash Flows from Operating Activities 435,506 772,474
Cash Flows from Financing Activities:
Redemption of Limited and General
Partner Units and Unit Equivalents (636,356) (705,585)
------------ ------------
Net Change in Cash (200,850) 66,889
Cash - Beginning of Year 1,068,644 486,243
------------ ------------
Cash - End of Period 867,794 553,132
============ ============
</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 three months ended March 31, 1999.
<TABLE>
<CAPTION>
31-Mar-99 31-Dec-98
------------- -------------
<S> <C> <C>
Ending Equity $ 14,476,594 $ 14,906,533
</TABLE>
The partnership's net assets declined 2.88% in the first quarter of 1999.
This is the net result of redemptions and net profit/loss on trading.
The fund was slightly profitable during the quarter. 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.
<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 Trust, 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 Trust 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 July 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 Trust 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 Trust is dependent on the capability
of the various exchanges, Clearing Brokers and other third parties with
which the Trust 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 Trust has a material relationship in addressing their
Year 2000 issues.
The most likely and most significant risk to the Trust 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 Trust, in which case sales could
be suspended and/or redemption payments delayed until the Trust'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
Trust, the Managing Owner will attempt to close any Trust 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 4th day of May, 1999.
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
By: Millburn Ridgefield Corporation,
General Partner
By /s/ Tod A. Tanis May 4, 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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1990
<PERIOD-END> MAR-31-1999
<CASH> 867,794
<SECURITIES> 14,046,083
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 15,004,675
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 15,004,675
<CURRENT-LIABILITIES> 528,081
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 14,476,594
<TOTAL-LIABILITY-AND-EQUITY> 15,004,675
<SALES> 0
<TOTAL-REVENUES> 435,510
<CGS> 0
<TOTAL-COSTS> 285,295
<OTHER-EXPENSES> 15,246
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 134,969
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 134,969
<EPS-PRIMARY> 11.33
<EPS-DILUTED> 11.33
</TABLE>
