<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 September 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>
September 30, December 31,
1996 1995
---- ----
<S> <C> <C>
ASSETS
- ------
Accrued interest $ 307,250 $357,496
Equity in commodity futures trading accounts:
Cash and option premiums 81,390,091 85,254,980
Net unrealized gain on open contracts 6,398,792 5,630,789
------------------ ------------------
TOTAL $88,096,133 $91,243,265
================== ==================
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
LIABILITIES:
Redemptions payable $6,404,005 $ 674,724
Brokerage commissions payable (Note 2) 551,003 551,853
Profit shares payable 58,897 -
Organization and initial offering costs payable - 20,399
Incentive override payable 5,117 855,796
------------------ ------------------
Total liabilities 7,019,022 2,102,772
------------------ ------------------
PARTNERS' CAPITAL:
General Partner (8,985 and 8,530 Units) 1,158,783 1,052,896
Limited Partners (619,673 and 737,413 Units) 79,918,328 91,708,172
Subscriptions receivable (0 and 29,116) - (3,620,575)
------------------ ------------------
Total partners' capital 81,077,111 89,140,493
------------------ ------------------
TOTAL 88,096,133 $91,243,265
================== ==================
NET ASSET VALUE PER UNIT
(Based on 628,658 and 716,827 Units outstanding) $128.97 $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 nine For the nine
months ended months ended months ended months ended
September 30, September 30, September 30, September 30,
1996 1995 1996 1995
------ ------ ------ -----
<S> <C> <C> <C> <C>
REVENUES:
Trading (loss) profits:
Realized $(1,021,075) $(2,583,913) $4,610,717 $14,314,748
Change in unrealized 2,550,390 (1,456,480) 768,003 (4,758,175)
----------------- ------------------ ------------------ -----------------
Total trading results 1,529,315 (4,040,393) 5,378,720 9,556,573
----------------- ------------------ ------------------ -----------------
Interest income 956,830 1,035,168 2,996,535 2,819,800
----------------- ------------------ ------------------ -----------------
Total revenues 2,486,145 (3,005,225) 8,375,255 12,376,373
----------------- ------------------ ------------------ -----------------
EXPENSES:
Profit shares 59,187 - 373,820 1,492,857
Incentive override (26,337) (772,820) 5,117 147,489
Brokerage commissions (Note 2) 1,615,389 1,439,082 4,990,367 4,128,889
----------------- ------------------ ------------------ -----------------
Total expenses 1,648,239 666,262 5,369,304 5,769,235
----------------- ------------------ ------------------ -----------------
NET INCOME (LOSS) $837,906 $(3,671,487) $3,005,951 $6,607,138
================= ================== ================== =================
NET INCOME PER UNIT:
Weighted average number of units
outstanding 682,716 668,768 720,600 641,622
======== ======== ======= =======
Weighted average net income (loss)
per Limited Partner unit and
General Partner unit $1.23 $(5.49) $4.17 $10.30
====== ======= ===== ======
</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 nine months ended September 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 238,136 27,946,851 103,939 - 28,050,790
Net income - 6,536,442 70,696 - 6,607,138
Redemptions (156,308) (17,937,726) - - (17,937,726)
Subscriptions receivable (57,281) - - (6,595,334) (6,595,334)
------------- ----------------- ---------------- ----------------- --------------------
PARTNERS' CAPITAL,
SEPTEMBER 30, 1995 669,066 $82,729,246 $844,215 $(6,595,334) $76,978,127
============= ================= ================ ================= ====================
PARTNERS' CAPITAL,
DECEMBER 31, 1995 716,827 $91,708,172 $1,052,896 $(3,620,575) $89,140,493
Subscriptions 135,271 13,149,858 56,900 3,620,575 16,827,333
Net income - 2,956,964 48,987 - 3,005,951
Redemptions (223,440) (27,896,666) - - (27,896,666)
------------- ----------------- ---------------- ----------------- --------------------
PARTNERS' CAPITAL,
SEPTEMBER 30, 1996 628,658 $79,918,328 $1,158,783 $ - $81,077,111
============= ================= ================ ================= ====================
</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" or the
"Fund") as of September 30, 1996 and the results of its operations for the
nine months ended September 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 nine
months ended September 30, 1996 and 1995 was approximately $71 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 nine months ended
September 30, 1996 were as follows:
<TABLE>
<CAPTION>
1996
----
<S> <C>
Interest rate $3,130,911
Stock indices (2,543,650)
Commodities (269,789)
Currencies 1,181,300
Energy 3,850,373
Metals 29,575
--------------------
$5,378,720
====================
</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
5
<PAGE>
the markets to hedge or diversify the Partnership's market exposure, the
General Partner may urge 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 September 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 $550,406,366 $ 29,579,996 $366,794,659 $115,962,614
Stock indices 13,927,945 387,071 5,256,825 -
Commodities 29,586,590 15,740,206 43,376,228 13,773,026
Currencies 101,576,608 140,790,591 31,823,922 113,887,626
Energy 12,457,490 - 28,209,814 -
Metals 8,390,854 72,267,418 7,101,823 23,355,741
-------------------- ------------------- ------------------- -------------------
$716,345,853 $258,765,282 $482,563,271 $266,979,007
==================== =================== =================== ===================
</TABLE>
Substantially all of the Partnership's derivative instruments outstanding
as of September 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 September 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 $652,652,970 $188,031,906 $451,632,138 $210,729,655
Non-Exchange
traded 63,692,883 70,733,376 30,931,133 56,249,352
-------------------- -------------------- --------------------- --------------------
$716,345,853 $258,765,282 $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 nine months
ended September 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 $349,253,611 $285,157,440 $392,684,358 $ 52,525,025
Stock indices 21,165,289 8,117,059 11,263,970 4,597,664
Commodities 37,644,825 13,686,858 23,210,531 11,584,575
Currencies 123,833,510 169,748,398 96,987,577 95,012,878
Energy 11,549,200 992,948 8,271,275 6,430,540
Metals 19,618,749 37,435,249 12,245,216 31,011,275
------------------- ------------------- ------------------- -------------------
$563,065,184 $515,137,952 $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 September 30, 1996 and December 31, 1995, $63,250,719 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 September 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 $8,032,178 $6,064,776 $7,029,085 $5,952,033
Non-Exchange
traded 991,995 334,016 338,067 (321,244)
-------------------- -------------------- --------------------- --------------------
$9,024,173 $6,398,792 $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 October 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 nine months of 1995, the Fund's average month-end
Net Assets equalled $73,875,606, and the Fund recognized gross trading gains of
$9,556,573 or 12.95% of average month-end Net Assets. Brokerage commissions of
$4,128,889 or 5.59% of average month-end Net Assets before fees, Profit Shares
of $1,492,857 or 2.02% of average month-end Net Assets and Incentive Overrides
of $147,489 or .20% of average month-end Net Assets were paid or accrued.
Interest income of $2,819,800 or 3.8% of average month-end Net Assets, resulted
in net income of $6,607,138 or 8.94% of average month-end Net Assets, and a
10.62% increase in the Net Asset Value per Unit since December 31, 1994.
During the first nine months of 1996, the Fund's average month-end
Net Assets equalled $88,631,645, and the Fund recognized gross trading gains of
$5,378,720 or 6.07% of average month-end Net Assets. Brokerage commissions of
$4,990,367 or 5.63% of average month-end Net Assets before fees, Profit Shares
of $373,820 or .42% of average month-end Net Assets and Incentive Overrides of
$5,117 or .01% of average month-end Net Assets were paid. Interest income of
$2,996,535 or 3.38% of average month-end Net Assets, resulted in a net income of
$3,005,951 or 3.39% of average month end net assets, and a 3.72% increase in the
Net Asset Value per Unit since December 31, 1995.
During the first nine months of 1996 and 1995, the fund experienced
10 profitable months and 8 unprofitable months.
<TABLE>
<CAPTION>
MONTH-END NET ASSET VALUE PER UNIT
- ---------------------------------------------------------------------------------------
Jan. Feb. Mar. April May June July Aug. Sept.
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1995 $101.22 $106.76 $116.51 $118.56 $121.04 $120.69 $116.88 $116.54 $115.14
- ---------------------------------------------------------------------------------------
1996 $125.91 $117.82 $119.43 $128.54 $123.56 $127.71 $123.72 $124.28 $128.97
- ---------------------------------------------------------------------------------------
</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
8
<PAGE>
towards technical, systematic, trend-following methods. Consequently, one would
expect that in 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.
9
<PAGE>
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.
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 nine
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: November 11, 1996 By /s/ JOHN R. FRAWLEY, JR.
------------------------
John R. Frawley, Jr.
President, Chief Executive Officer
and Director
Date: November 11, 1996 By /s/ JAMES M. BERNARD
--------------------
James M. Bernard
Chief Financial Officer
Treasurer and Senior Vice President
11
<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>
<CIK> 0000904918
<NAME> ML GLOBAL HORIZONS L.P.
<S> <C> <C>
<PERIOD-TYPE> 9-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1994
<PERIOD-START> JAN-01-1996 JAN-01-1995
<PERIOD-END> SEP-30-1996 SEP-30-1995
<CASH> 0 0
<RECEIVABLES> 88,096,133 77,973,842
<SECURITIES-RESALE> 0 0
<SECURITIES-BORROWED> 0 0
<INSTRUMENTS-OWNED> 0 0
<PP&E> 0 0
<TOTAL-ASSETS> 88,096,133 77,973,842
<SHORT-TERM> 0 0
<PAYABLES> 7,019,022 995,715
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0 0
0 0
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