<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, 2000
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: $6,891,174.00.
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PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
Statements of Financial Condition (UNAUDITED)
<TABLE>
<CAPTION>
30-Jun-00 31-Dec-99
Assets: ------------ ------------
<S> <C> <C>
Investment in U.S. Treasury bills
(Amortized cost $7,611,201 & $11,109,515) 7,611,201 11,109,515
Money market mutual funds 100,876 487,312
Unrealized appreciation on open contracts - 544,627
Cash 564,755 361,070
------------ ------------
Total Assets $ 8,276,832 $ 12,502,524
============ ============
Liabilities & Partners' Capital:
Unrealized depreciation on open contracts 223,598 -
Accounts payable and accrued expenses 29,566 45,881
Redemptions payable to unit holders, net 143,082 246,833
Accrued brokerage commissions 43,791 69,100
------------ ------------
Total Liabilities 440,037 361,814
Trust Capital:
General Partner 945,621 1,148,788
Limited Partners (6,034.553 &
7,601.967 Units of Beneficial Interest
outstanding at June 30, 2000 and
December 31, 1999) 6,891,174 10,991,922
------------ ------------
Total Trust Capital 7,836,795 12,140,710
------------ ------------
Total Liabilities and Trust Capital $ 8,276,832 $ 12,502,524
============ ============
</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, 2000 and 1999 (UNAUDITED)
<TABLE>
<CAPTION>
2000 1999
------------ ------------
<S> <C> <C>
Revenues:
Realized Gain(Loss) on Closed Contracts (806,582) 1,039,132
Change in Unrealized Gain(Loss) (426,370) 571,069
Interest Income 146,025 170,358
Foreign Exchange Gain(Loss) (2,833) 310
------------ ------------
$(1,089,760) $ 1,780,869
Expenses:
Brokerage Commissions 164,953 286,786
Profit Share - 77,599
Administrative 28,657 22,773
------------ ------------
$ 193,610 $ 387,158
============ ============
Net Income(Loss) $(1,283,370) $ 1,393,711
Net Income(Loss) allocated to General Partner $ (126,966) $ 139,048
Net Income(Loss) allocated to Limited Partners $(1,156,404) $ 1,254,663
Increase(Decrease) in Redemption Value
for each Unit outstanding throughout
each period $ (180.42) $ 143.77
</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, 2000 and 1999 (UNAUDITED)
<TABLE>
<CAPTION>
2000 1999
------------ ------------
<S> <C> <C>
Revenues:
Realized Gain(Loss) on Closed Contracts (1,359,289) 1,625,035
Change in Unrealized Gain(Loss) (768,225) 239,636
Interest Income 299,028 353,515
Foreign Exchange Gain(Loss) (15,804) (1,807)
------------ ------------
$(1,844,290) $ 2,216,379
Expenses:
Brokerage Commissions 375,255 572,081
17.5% Profit Share - 77,599
Administrative 42,806 38,019
------------ ------------
$ 418,061 $ 687,699
============ ============
Net Income(Loss) $(2,262,351) $ 1,528,680
Net Income(Loss) allocated to General Partner $ (203,167) $ 169,961
Net Income(Loss) allocated to Limited Partners $(2,059,184) $ 1,358,719
Increase(Decrease) in Redemption Value
for each Unit outstanding throughout
each period $ (303.98) $ 155.10
</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, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
Limited General
Partners Partner Total
------------ ------------ ------------
<S> <C> <C> <C>
Trust Equity at December 31, 1999
(7,601.967 Units) 10,991,922 1,148,788 12,140,710
Redemption of 1,567.414 Units (2,041,564) - (2,041,564)
Net Gain(Loss) in Trust Equity (2,059,184) (203,167) (2,262,351)
------------ ------------- ------------
Trust Equity at June 30, 2000 6,891,174 945,621 7,836,795
(6,034.553 Units) ============ ============= ============
Redemption Value per Unit
at June 30, 2000 1,141.95
============
</TABLE>
Net Asset Value per Unit
Changes in net asset value per Unit during the six months ended June 30, 2000
and 1999 were as follows:
<TABLE>
<CAPTION>
2000 1999
------------ ------------
<S> <C> <C>
Net realized and unrealized gains
(losses)on currency contracts $ (338.43) $ 132.94
Interest Income 42.89 36.10
Foreign exchange gain (loss) (2.15) (0.68)
Profit share expenses 0.00 (9.12)
Administrative expense (6.29) (4.14)
------------ ------------
Net income (loss) per unit (303.98) 155.10
Net asset value per Unit,
beginning of period 1,445.93 1,479.31
------------ ------------
Net asset value per Unit,
end of Period $ 1,141.95 $ 1,634.41
============ ============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
ITEM II. NOTES TO FINANCIAL STATEMENTS
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
The accompanying financial statements are unaudited but, in the opinion of
management, include all adjustments (consisting only of normal recurring
adjustments) necessary for a fair presentation of the Partnership's financial
condition at June 30, 2000 and December 31, 1999 (unaudited) and the results
of its operations for the three months ended June 30, 2000 and 1999. These
financial statements present the results of interim periods and do not include
all disclosures normally provided in annual financial statements. It is
suggested that these financial statements be read in conjunction with the
financial statements and notes included in the Partnership's annual report on
Form 10-K filed with the Securities and Exchange Commission for the year ended
December 31, 1999.
Management discussion and analysis of the financial statements for the
six months ended June 30, 2000.
<TABLE>
<CAPTION>
30-Jun-00 31-Dec-99
------------- -------------
<S> <C> <C>
Ending Equity $ 7,836,795 $ 12,140,710
</TABLE>
The partnership's net assets declined 35.45% in the first half of 2000.
The fund suffered sizable losses during the quarter. Uncertainties about
interest rate policies worldwide unsettled trading conditions in all
financial markets. Would the Federal Reserve continue to raise rates to
slow the economy, and if so, what effect would that have on soaring
equity markets? Would the zero interest rate policy in Japan ever come
to an end, and, if it did, how would the nascent growth rebound in Japan fare?
How long can Japanese long bond interest rates remain low in the face of huge
fiscal deficits? Will the European Central Bank accelerate its interest rate
increases and, hence, stunt the economic recovery now gathering momentum in
Europe? In the face of all these questions financial markets displayed erratic
non directional price swings in broad ranges during the second quarter.
Consequently, losses were registered in all six sectors that are traded in
the fund: interest rates, dollar trading, non dollar cross rates, exotic
currencies, stock index futures, and metals. Indeed, over 80% of the market
traded during the April - June period (37 of 46) were not profitable.
While non trending price action will always characterize some markets, it is
unusual for such patterns to be so widespread for such an extended period.
While this recent period of poor performance is more severe than normal, we
do not believe it is evidence of a permanent change in market environment.
<PAGE>
ITEM III. QUANTITATIVE AND QUALITATIVE DISCLOSURES OF MARKET RISK
The Partnership's a speculative commodity pool. The market sensitive
instruments held by it are acquired for speculative trading purposes,
and all or substantially all of the Partnership's assets are subject
to the risk of trading loss. Unlike an operating company, the risk of
market sensitive instruments is integral, not incidental, to the
Partnership's main line of business.
Market movements result in frequent changes in the fair market value
of the Partnership's open positions and, consequently, in its earnings
and cash flow. The Partnership's market risk is influenced by a wide
variety of factors, including the level and volatility of interest
rates, exchange rates, equity price levels, the market value of financial
instruments and contracts, the diversification effects among the
Partnership's open positions and the liquidity of the markets in which
it trades.
The Partnership rapidly acquires and liquidates both long and short
positions in a wide range of different markets. Consequently, it is
not possible to predict how a particular future market scenario will
affect performance, and the Partnership's past performance is not
necessarily indicative of its future results.
Value at Risk is a measure of the maximum amount which the Partnership
could reasonable be expected to lose in a given market sector. However,
the inherent uncertainty of the Partnership's speculative trading and
the recurrence in the markets traded by the Partnership of market
movements far exceeding expectations could result in actual trading or
non trading losses far beyond the indicated Value at Risk or the
Partnership's experience to date (i.e., "risk of ruin"). In light of
the foregoing as well as the risks and uncertainties intrinsic to all
future projections, the inclusion of the quantification included in this
section should not be considered to constitute any assurance or
representation that the Partnership's losses in any market sector will
be limited to Value at Risk or by the Partnership's attempts to manage
its market risk.
Exchange maintenance margin requirements have been used by the Partnership
as the measure of its Value at Risk. Maintenance margin requirements are
set by exchanges to equal or exceed the maximum losses reasonably expected
to be incurred in the fair value of any given contract in 95% - 99% of any
one day intervals. Maintenance margin has been used rather than the more
generally available initial margin, because initial margin includes a credit
risk component, which is not relevant to Value at Risk.
<PAGE>
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. INDEX
Financial Statements: Pages
Statements of Financial Condition at
June 30, 2000 and 1999 2
Statements of Operations for the Periods Ended
June 30, 2000 and 1999 3
Statements of Changes in Trust Capital for the
Periods Ended June 30, 2000 and 1999 5
Notes to Financial Statements 6
PART II. OTHER INFORMATION
ITEM I. Legal Proceedings - None
ITEM 2. Changes in Securities and Use of Proceeds - None
ITEM 3. Defaults Upon Senior Securities - None
ITEM 4. Submission of Matters to a Vote of Security Holders - None
ITEM 5. Other Information - None
ITEM 6. (a) Exhibits - None
(b) Reports on Form 8-K - None
<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 28th day of July, 2000.
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
By: Millburn Ridgefield Corporation,
General Partner
By /s/ Tod A. Tanis July 28, 2000
Tod A. Tanis
Vice-President
