<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
-------------
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ________________ to ________________
Commission File Number 0-23240
ML GLOBAL HORIZONS L.P.
-----------------------
(Exact Name of Registrant as
specified in its charter)
Delaware 13-3716393
- ------------------------------- ---------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
c/o Merrill Lynch Investment Partners Inc.
(formerly ML Futures Investment Partners Inc.)
Merrill Lynch World Headquarters - South Tower, 6th FL.
World Financial Center New York, New York 10080-6106
-----------------------------------------------------
(Address of principal executive offices)
(Zip Code)
212-236-4161
----------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has 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____
-----
This document contains 11 pages.
There are no exhibits and no exhibit index filed with this document.
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
ML GLOBAL HORIZONS L.P.
-----------------------
(a Delaware limited partnership)
------------------------------
STATEMENTS OF FINANCIAL CONDITION
---------------------------------
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
---- ----
<S> <C> <C>
ASSETS
- ------
Accrued interest $ 335,727 $ 357,496
Equity in commodity futures trading accounts:
Cash and option premiums 87,959,553 85,254,980
Net unrealized gain on open contracts 3,848,402 5,630,789
----------- -----------
TOTAL $92,143,682 $91,243,265
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
LIABILITIES:
Redemptions payable $ 5,585,397 $ 674,724
Brokerage commissions payable (Note 2) 568,210 551,853
Profit shares payable 292,306 -
Organization and initial offering costs payable - 20,399
Incentive override payable 31,454 855,796
----------- -----------
Total liabilities 6,477,367 2,102,772
----------- -----------
PARTNERS' CAPITAL:
General Partner (8,580 and 8,530 Units) 1,087,692 1,052,896
Limited Partners (675,578 and 737,413 Units) 86,282,785 91,708,172
Subscriptions receivable (13,344 and 29,116) (1,704,162) (3,620,575)
----------- -----------
Total partners' capital 85,666,315 89,140,493
----------- -----------
TOTAL 92,143,682 $91,243,265
=========== ===========
NET ASSET VALUE PER UNIT
(Based on 670,814 and 716,827 Units outstanding) $127.71 $124.35
=========== ===========
</TABLE>
See notes to financial statements.
2
<PAGE>
ML GLOBAL HORIZONS L.P.
-----------------------
(a Delaware limited partnership)
------------------------------
STATEMENTS OF OPERATIONS
------------------------
<TABLE>
<CAPTION>
For the three For the three For the six For the six
months ended months ended months ended months ended
June 30, 1996 June 30, 1995 June 30, 1996 June 30, 1995
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
REVENUES:
Trading profits (loss):
Realized $ 7,971,503 $10,332,150 $ 5,631,792 $16,898,661
Change in unrealized (1,022,662) (6,341,851) (1,782,387) (3,301,695)
----------- ----------- ----------- -----------
Total trading results 6,948,841 3,990,299 3,849,405 13,596,966
----------- ----------- ----------- -----------
Interest income 1,041,773 937,302 2,039,705 1,784,632
----------- ----------- ----------- -----------
Total revenues 7,990,614 4,927,601 5,889,110 15,381,598
----------- ----------- ----------- -----------
EXPENSES:
Profit shares 292,306 695,819 314,633 1,492,857
Incentive override 30,881 165,569 31,454 920,309
Brokerage commissions (Note 2) 1,718,336 1,432,557 3,374,978 2,689,807
----------- ----------- ----------- -----------
Total expenses 2,041,523 2,293,945 3,721,065 5,102,973
----------- ----------- ----------- -----------
NET INCOME $ 5,949,091 $ 2,633,656 $ 2,168,045 $10,278,625
=========== =========== =========== ===========
NET INCOME PER UNIT:
Weighted average number of units
outstanding 728,901 629,169 739,545 628,051
=========== =========== =========== ===========
Weighted average net income per unit $8.16 $4.19 $2.93 $16.37
=========== =========== =========== ===========
</TABLE>
See notes to financial statements.
3
<PAGE>
ML GLOBAL HORIZONS L.P.
-----------------------
(a Delaware limited partnership)
------------------------------
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
-----------------------------------------
For the six months ended June 30, 1996 and 1995
-----------------------------------------------
<TABLE>
<CAPTION>
Limited General
Units Partners Partners Receivable Total
----- -------- -------- ---------- -----
<S> <C> <C> <C> <C> <C>
PARTNERS' CAPITAL,
DECEMBER 31, 1994 644,519 $66,183,679 $669,580 $ - $66,853,259
Additions 142,220 16,926,374 17,989 - 16,944,363
Net income 10,169,546 109,079 - 10,278,625
Redemptions (114,386) (13,046,214) - - (13,046,214)
--------- ------------ ---------- ------------ ------------
PARTNERS' CAPITAL,
JUNE 30, 1995 672,353 $80,233,385 $796,648 $ - $81,030,033
========= ============ ========= ============ ============
PARTNERS' CAPITAL,
DECEMBER 31, 1995 716,827 $91,708,172 $1,052,896 $(3,620,575) $89,140,493
Subscriptions 118,593 11,132,762 6,296 3,620,575 14,759,633
Subscriptions receivable (13,344) - - (1,704,162) (1,704,162)
Net income - 2,139,545 28,500 - 2,168,045
Redemptions (151,262) (18,697,694) - - (18,697,694)
--------- ------------ ---------- ------------ ------------
PARTNERS' CAPITAL,
JUNE 30, 1996 670,814 $86,282,785 $1,087,692 $(1,704,162) $85,666,315
========= ============ ========== ============ ============
</TABLE>
See notes to financial statements.
4
<PAGE>
ML GLOBAL HORIZONS L.P.
(A Delaware Limited Partnership)
------------------------------
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These financial statements have been prepared without audit. In the opinion
of management, the financial statements contain all adjustments (consisting
of only normal recurring adjustments) necessary to present fairly the
financial position of ML Global Horizons L.P. (the "Partnership") as of
June 30, 1996 and the results of its operations for the six months ended
June 30, 1996 and 1995. However, the operating results for the interim
periods may not be indicative of the results expected for the full year.
Certain information and footnote disclosures normally included in annual
financial statements prepared in accordance with general accepted
accounting principles have been omitted. It is suggested that these
financial statements be read in conjunction with the financial statements
and notes thereto included in the Partnership's Annual Report on Form 10-K
filed with the Securities and Exchange Commission for the year ended
December 31, 1995 (the "Annual Report").
2. RELATED PARTY TRANSACTIONS
The Partnership pays brokerage commissions to MLF at a flat monthly rate of
0.625 of 1% (a 7.5% annual rate) of the Partnership's month-end assets.
Month-end assets are not reduced for purposes of calculating brokerage
commissions by any accrued but unpaid brokerage commissions, profit shares
or other accrued fees or charges. MLIP estimates that the round-turn
equivalent commission rate charged to the Partnership during the six months
ended June 30, 1996 and 1995 was approximately $67 and approximately $12.50
to $14.50, respectively (not including, in calculating round-turn
equivalents, forward contracts on a futures-equivalent basis).
MLF pays the Advisors annual Consulting Fees ranging from 2% to 4% of the
Partnership's average month-end assets after reduction for a portion of the
brokerage commissions.
3. FAIR VALUE AND OFF-BALANCE SHEET RISK
The Partnership trades futures, options and forward contracts in interest
rates, stock indices, commodities, currencies, energy and metals. The
Partnership's revenues by reporting category for the six months ended June
30, 1996 were as follows:
<TABLE>
<CAPTION>
1996
----
<S> <C>
Interest rate $ (524,818)
Stock indices (385,457)
Commodities 357,334
Currencies 3,264,595
Energy 1,046,509
Metals 91,242
----------
$3,849,405
==========
</TABLE>
Market Risk
-----------
Derivative instruments involve varying degrees of off-balance sheet market
risk, and changes in the level or volatility of interest rates, foreign
currency exchange rates or the market values of the financial instruments
or commodities underlying such derivative instruments frequently result in
changes in the Partnership's unrealized gain or loss on such derivative
instruments as reflected in the Statement of Financial Condition. The
Partnership's exposure to market risk is influenced by a number of factors,
including the relationships among the derivative instruments held by the
Partnership as well as the volatility and liquidity of the markets in which
the derivative instruments are traded.
The General Partner has procedures in place intended to control market
risk, although there can be no assurance that they will, in fact, succeed
in doing so. These procedures focus primarily on monitoring the trading of
the Advisors selected from time to time for the Partnership, calculating
the Net Asset Value of the Advisors' respective Partnership accounts as of
the close of business on each day and reviewing outstanding positions for
over-concentration - both on an Advisor-by-Advisor and on an overall
Partnership basis. While the General Partner does not itself intervene in
the markets to hedge or diversify the Partnership's market exposure, the
General Partner may urge
5
<PAGE>
Advisors to reallocate positions, or itself reallocate Partnership assets
among Advisors (although typically only as of the end of a month) in an
attempt to avoid over-concentrations. However, such interventions are
unusual. Except in cases in which it appears that an Advisor has begun to
deviate from past practice or trading policies or to be trading
erratically, the General Partner's basic risk control procedures consist
simply of the ongoing process of Advisor monitoring and selection, with the
market risk controls being applied by the Advisors themselves.
Fair Value
----------
The derivative instruments used in the Partnership's trading activities are
marked to market daily with the resulting unrealized gains or losses
recorded in the Statements of Financial Condition and the related profit or
loss reflected in trading revenues in the Statements of Income. The
contract/notional values of the Partnership's open derivative instrument
positions as of June 30, 1996 and December 31, 1995 were as follows:
<TABLE>
<CAPTION>
1996 1995
---------------------------------------- ---------------------------------------
Commitment to Commitment to Commitment to Commitment to
Purchase (Futures, Sell (Futures, Purchase (Futures, Sell (Futures,
Options & Forwards) Options & Forwards) Options & Forwards) Options & Forwards)
------------------- ------------------ ------------------- -------------------
<S> <C> <C> <C> <C>
Interest rate $219,411,446 $163,577,429 $366,794,659 $115,962,614
Stock indices 26,240,684 9,332,184 5,256,825 -
Commodities 35,312,175 21,250,643 43,376,228 13,773,026
Currencies 86,918,893 134,413,111 31,823,922 113,887,626
Energy 18,994,858 - 28,209,814 -
Metals 4,913,163 66,611,733 7,101,823 23,355,741
------------ ------------ ------------ ------------
$391,791,219 $395,185,100 $482,563,271 $266,979,007
============ ============ ============ ============
</TABLE>
Substantially all of the Partnership's derivative instruments outstanding
as of June 30, 1996 expire within one year.
The contract/notional value of the Partnership's exchange-traded and non-
exchange-traded derivative instrument positions as of June 30, 1996 and
December 31, 1995 was as follows:
<TABLE>
<CAPTION>
1996 1995
---------------------------------------- ---------------------------------------
Commitment to Commitment to Commitment to Commitment to
Purchase (Futures, Sell (Futures, Purchase (Futures, Sell (Futures,
Options & Forwards) Options & Forwards) Options & Forwards) Options & Forwards)
------------------- ------------------ ------------------- -------------------
<S> <C> <C> <C> <C>
Exchange
traded $344,846,188 $318,448,316 $451,632,138 $210,729,655
Non-Exchange
traded 46,945,031 76,736,784 30,931,133 56,249,352
------------ ------------ ------------ ------------
$391,791,219 $395,185,100 $482,563,271 $266,979,007
============ ============ ============ ============
</TABLE>
The average fair value of the Partnership's derivative instrument positions
which were open as of the end of each calendar month during the six months
ended June 30, 1996 and the year ended December 31, 1995 was as follows:
<TABLE>
<CAPTION>
1996 1995
---------------------------------------- ---------------------------------------
Commitment to Commitment to Commitment to Commitment to
Purchase (Futures, Sell (Futures, Purchase (Futures, Sell (Futures,
Options & Forwards) Options & Forwards) Options & Forwards) Options & Forwards)
------------------- ------------------ ------------------- -------------------
<S> <C> <C> <C> <C>
Interest rate $192,753,905 $379,807,196 $392,684,358 $ 52,525,025
Stock indices 27,558,851 5,908,851 11,263,970 4,597,664
Commodities 41,064,835 14,506,783 23,210,531 11,584,575
Currencies 89,126,269 183,819,599 96,987,577 95,012,878
Energy 11,114,225 992,948 8,271,275 6,430,540
Metals 24,557,296 31,433,977 12,245,216 31,011,275
------------ ------------ ------------ ------------
$386,175,381 $616,469,354 $544,662,927 $201,161,957
============ ============ ============ ============
</TABLE>
6
<PAGE>
A portion of the amounts indicated as off-balance sheet risk reflects
offsetting commitments to purchase and sell the same derivative instrument
on the same date in the future. These commitments are economically
offsetting but are not, as a technical matter, offset in the forward market
until the settlement date.
Credit Risk
-----------
The risks associated with exchange-traded contracts are typically perceived
to be less than those associated with over-the-counter (non-exchange-
traded) transactions, because exchanges typically (but not universally)
provide clearinghouse arrangements in which the collective credit (in some
cases limited in amount, in some cases not) of the members of the exchange
is pledged to support the financial integrity of the exchange. In over-the-
counter transactions, on the other hand, traders must rely solely on the
credit of their respective individual counterparties. Margins, which may be
subject to loss in the event of a default, are generally required in
exchange trading, and counterparties may also require margin in the over-
the-counter markets.
The fair value amounts in the above tables represent the extent of the
Partnership's market exposure in the particular class of derivative
instrument listed, but not the credit risk associated with counterparty
nonperformance. The credit risk associated with these instruments from
counterparty nonperformance is the net unrealized gain, if any, included in
the Statements of Financial Condition. The Partnership also has credit risk
because the sole counterparty or broker with respect to most of the
Partnership's assets is MLF.
As of June 30, 1996 and December 31, 1995, $69,753,718 and $71,297,472 of
the Partnership's assets, respectively, were held in segregated accounts at
MLF in accordance with Commodity Futures Trading Commission regulations.
The gross unrealized gain and the net unrealized gain on the Partnership's
open derivative instrument positions as of June 30, 1996 and December 31,
1995 were as follows:
<TABLE>
<CAPTION>
1996 1995
---- ----
Gross Net Gross Net
Unrealized Unrealized Unrealized Unrealized
Gain Gain (Loss) Gain Gain (Loss)
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Exchange
traded $4,486,182 $2,913,234 $7,029,085 $5,952,033
Non-Exchange
traded 2,230,467 935,168 338,067 (321,244)
---------- ---------- ---------- ----------
$6,716,649 $3,848,402 $7,367,152 $5,630,789
========== ========== ========== ==========
</TABLE>
The Partnership controls credit risk by dealing almost exclusively
with Merrill Lynch entities as brokers and counterparties.
Item 2: Management's Discussion and Analysis of Financial Condition and
---------------------------------------------------------------
Results of Operation
--------------------
Operational Overview: Advisor Selections
----------------------------------------
The Fund's success depends on MLIP's ability to select Advisors and
the Advisors' ability to recognize and capitalize on trends and other
profit opportunities in different sectors of the world economy. MLIP's
Advisor selection procedure and the Advisors' trading methods are
confidential, so that substantially the only information that can be
furnished regarding the Fund's results of operations is its performance
record, as set forth above. Unlike most operating businesses, general
economic or seasonal conditions have no direct effect on the profit
potential of the Fund, while, at the same time, its past performance is not
necessarily indicative of future results. Because of the speculative nature
of its trading, operational or economic trends have little relevance to the
Fund's results. MLIP believes, however, that there are certain market
conditions - for example, markets with strong price trends - in which the
Fund has a better likelihood of being profitable than in others.
7
<PAGE>
As of July 1, 1996, the Partnership's assets were allocated as
follows:
<TABLE>
<CAPTION>
TRADING ADVISOR MARKETS TRADED % ALLOCATION
--------------- -------------- ------------
<S> <C> <C>
John W. Henry & Co., Inc. Financial Instruments (including
currencies) and Metals 38.00
Chesapeake Capital Corporation Diversified Program 38.00
ARA Portfolio Management Company Diversified Program 15.00
Di Tomasso Group Inc. Turbo Program 4.50
West Course Capital, Inc. Higher Leverage Program 4.50
------
100.00%
</TABLE>
MLIP reserves the right to change both allocations and Advisor
selections at any time without advance notice to existing investors. MLIP
expects, from time to time, to make allocations to Advisors other than
those currently retained by the Fund.
Results of Operations - General
-------------------------------
MLIP believes that multi-Advisor futures funds should be regarded as
medium- to long-term investments but, unlike an operating business, it is
difficult to identify "trends" in the Fund's operations and virtually
impossible to make any predictions regarding future results based on
results to date.
Markets in which sustained price trends occur with some frequency tend
to be more favorable to managed futures investments than "whipsaw,"
"choppy" markets, but (i) this is not always the case, (ii) it is
impossible to predict when trending markets will occur and (iii) different
Advisors are affected differently by trends in general as well as by
particular types of trends.
The Fund controls credit risk in its trading in the derivatives
markets by trading only through Merrill Lynch entities which MLIP believes
to be creditworthy. The Fund attempts to control the market risk inherent
in its derivatives trading by utilizing a multi-advisor, multi-strategy
structure. This structure purposefully attempts to diversify the Fund's
Advisor group among different strategy types and market sectors in an
effort to reduce risk (although the Fund's portfolio currently emphasizes
technical and trend-following approaches).
Performance Summary
-------------------
During the first six months of 1995, the Fund's average month-end Net
Assets equalled $68,646,365, and the Fund recognized gross trading gains of
$13,596,966 or 19.81% of average month-end Net Assets. Brokerage
commissions of $2,689,807 or 3.92% of average month-end Net Assets before
fees, Profit Shares of $1,492,857 or 2.17% of average month-end Net Assets
and Incentive Overrides of $920,309 or 1.34% of average month-end Net
Assets were paid or accrued. Interest income of $1,784,632 or 2.60% of
average month-end Net Assets, resulted in net income of $10,278,625 or
14.97% of average month-end Net Assets, and a 15.96% increase in the Net
Asset Value per Unit since December 31, 1994.
During the first six months of 1996, the Fund's average month-end Net
Assets equalled $90,721,650, and the Fund recognized gross trading gains of
$3,849,405 or 4.24% of average month-end Net Assets. Brokerage commissions
of $3,374,978 or 3.72% of average month-end Net Assets before fees, Profit
Shares of $314,633 or .35% of average month-end Net Assets and Incentive
Overrides of $31,454 or .03% of average month-end Net Assets were paid.
Interest income of $2,039,705 or 2.25% of average month-end Net Assets,
resulted in a net income of $2,168,045 or 2.39% of average month end net
assets, and a 2.70% increase in the Net Asset Value per Unit since December
31, 1995.
During the first six months of 1996 and 1995, the fund experienced 8
profitable months and 4 unprofitable months.
<TABLE>
<CAPTION>
MONTH-END NET ASSET VALUE PER UNIT
------------------------------------------------------------
Jan. Feb. Mar. April May June
------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1995 $101.22 $106.76 $116.51 $118.56 $121.04 $120.69
------------------------------------------------------------
1996 $125.91 $117.82 $119.43 $128.54 $123.56 $127.71
------------------------------------------------------------
</TABLE>
Importance of Market Factors
----------------------------
Comparisons between the Fund's performance during a given period in
one fiscal year to the same period in a prior year are unlikely to be
meaningful given the uncertainty of the markets traded by the Fund. In
general, MLIP expects that the Fund is most likely to trade successfully in
markets which exhibit strong and sustained price trends. The current
Advisor group is heavily biased towards technical, systematic, trend-
following methods. Consequently, one would expect that in
8
<PAGE>
trendless, "choppy" markets the Fund would likely be unprofitable, while in
markets in which major price movements occur, the Fund would have its best
profit potential (although there could be no assurance that the Fund would,
in fact, trade profitably). However, trend-followers not infrequently will
miss major price movements, and market corrections can result in rapid and
material losses (sometimes as much as 5% or more in a single day) for
multi-advisor funds. Although MLIP monitors market conditions and Advisor
performance in overseeing the Fund's trading, MLIP does not attempt to
"market forecast" or to "match" trading styles with anticipated market
conditions. Rather, MLIP concentrates on quantitative and qualitative
analysis of prospective Advisors, as well as on statistical studies of the
historical performance parameters of different Advisor combinations, in
selecting Advisors and allocating and reallocating Fund assets among them.
Because managed futures advisors' strategies are proprietary and
confidential and market movements unpredictable, selecting advisors to
implement a speculative trading strategy involves considerable uncertainty.
Furthermore, the concentration of the Fund's current Advisor portfolio,
both in terms of the number of managers retained and the common emphasis of
their strategies on technical trend-following methods, increases the risk
that significant losses may be incurred in adverse markets.
MLIP's Advisor Selections and Asset Reallocations
-------------------------------------------------
MLIP has no timetable or schedule for making Advisor changes or
reallocations, and generally intends to make a medium- to long-term
commitment to all Advisors selected. However, there can be no assurance as
to the frequency or number of the Advisor changes which may take place in
the future, or as to how long any of the current Advisors will continue (or
be permitted by MLIP to continue) managing assets for the Fund.
Performance in Major Price Movements
------------------------------------
MLIP believes that the profit potential of a managed futures product
such as the Fund can be increased in markets in which major price movements
occur. There have, however, been prolonged periods in the futures markets
without significant price movements during which "whipsaw" markets, in
which prices appear to be moving in one direction but then quickly reverse,
prevail. Such periods may recur with considerable frequency, and most
futures traders would expect it to be very difficult to achieve
profitability in such markets. There can be, in any event, no assurance
that any Advisor will trade profitably or that major market movements will
occur.
Liquidity
---------
The Fund's assets are generally held as cash or cash equivalents which
are used to margin the Fund's futures positions and earn interest income
and withdrawn, as necessary, to pay redemptions and expenses.
Although Units may be redeemed at any month-end, no one who cannot
afford to commit funds to a comparatively illiquid investment should
subscribe to the Fund (redemption penalties apply through the end of the
first twelve months after a Unit is issued). MLIP believes that investors
who are not prepared to regard the Fund as a medium- to long-term
investment should not purchase Units.
MLIP may consider making distributions to investors under certain
circumstances (for example, if substantial profits are recognized);
however, MLIP has not done so to date and does not presently intend to do
so.
Capital Resources
-----------------
Units are offered for sale as of the beginning, and may be redeemed as
of the end, of each month. Only whole Units are sold, and only whole Units
may be redeemed.
The amount of capital raised for the Fund should not have a
significant impact on its operations, as the Fund has no significant
capital expenditure or working capital requirements other than for moneys
to pay trading losses, fees and charges. Within broad ranges of
capitalization, the Advisors' trading positions should increase or decrease
in approximate proportion to the size of the Fund account managed by each
of them, respectively.
The Fund raises additional capital only through the sale of Units and
trading profits (if any). The Fund is prohibited from borrowing under the
terms of the Limited Partnership Agreement.
Due to the nature of the Fund's business, substantially all its assets
are represented by cash, United States government obligations and short-
term foreign sovereign debt obligations, while the Fund maintains its
market exposure through open futures and forward contract positions.
Inflation is not a significant factor in the Fund's profitability,
although inflationary cycles can give rise either to the type of major
price movements or to the "whipsaw markets" which can have a materially
favorable or adverse impact on the Fund's profitability.
9
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities
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. Exhibits and Reports on Form 8-K
(a) Exhibits
--------
There are no exhibits required to be filed as part of this document.
(b) Reports on Form 8-K
-------------------
There were no reports on Form 8-K filed during the first six months
of fiscal 1996.
10
<PAGE>
SIGNATURES
Pursuant to the requirements 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.
ML GLOBAL HORIZONS L.P.
By: MERRILL LYNCH INVESTMENT PARTNERS INC.
(General Partner)
Date: August 9, 1996 By /s/JOHN R. FRAWLEY, JR.
-----------------------
John R. Frawley, Jr.
President, Chief Executive Officer
and Director
Date: August 9, 1996 By /s/JAMES M. BERNARD
-------------------
James M. Bernard
Chief Financial Officer
Treasurer and Senior Vice President
<TABLE> <S> <C>
<PAGE>
<ARTICLE> BD
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION, CONSOLIDATED STATEMENTS OF OPERATIONS,
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C> <C>
<PERIOD-TYPE> 6-MOS 6-MOS
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1994
<PERIOD-START> JAN-01-1996 JAN-01-1995
<PERIOD-END> JUN-30-1996 JUN-30-1995
<CASH> 0 0
<RECEIVABLES> 92,143,682 84,632,481
<SECURITIES-RESALE> 0 0
<SECURITIES-BORROWED> 0 0
<INSTRUMENTS-OWNED> 0 0
<PP&E> 0 0
<TOTAL-ASSETS> 92,143,682 84,632,481
<SHORT-TERM> 0 0
<PAYABLES> 6,477,367 3,602,448
<REPOS-SOLD> 0 0
<SECURITIES-LOANED> 0 0
<INSTRUMENTS-SOLD> 0 0
<LONG-TERM> 0 0
0 0
0 0
<COMMON> 0 0
<OTHER-SE> 85,666,315 81,030,033
<TOTAL-LIABILITY-AND-EQUITY> 92,143,682 84,632,481
<TRADING-REVENUE> 3,849,405 13,596,966
<INTEREST-DIVIDENDS> 2,039,705 1,784,632
<COMMISSIONS> 3,721,065 5,102,973
<INVESTMENT-BANKING-REVENUES> 0 0
<FEE-REVENUE> 0 0
<INTEREST-EXPENSE> 0 0
<COMPENSATION> 0 0
<INCOME-PRETAX> 2,168,045 10,278,625
<INCOME-PRE-EXTRAORDINARY> 2,168,045 10,278,625
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 2,168,045 10,278,625
<EPS-PRIMARY> 2.93 16.37
<EPS-DILUTED> 2.93 16.37
</TABLE>
