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FILED PURSUANT TO RULE NO. 424(b)(3)
REGISTRATION NO. 333-10749
ML GLOBAL HORIZONS L.P.
PROSPECTUS SUPPLEMENT DATED JANUARY 1, 1998
TO
PROSPECTUS DATED APRIL 4, 1997
As of November 30, 1997, the Net Asset Value per Unit of ML Global Horizons
L.P. (the "Fund") had risen to $148.57 from the initial $100 Net Asset Value per
Unit as of January 4, 1994.
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The allocation of the Fund's assets among its core Advisors as of January
1, 1998 is set forth below in the parentheses following each core Advisor's
name. The accompanying Prospectus includes more detailed information concerning
the core Advisors. See "The Advisors" and "The Core Advisors" in the Prospectus.
Core Advisors are Advisors allocated 10% or more of the Fund's assets for
management. Non-core Advisors are each allocated less than 10% of the Fund's
assets for management. The particular percentage allocations to the non-core
Advisors are not identified because, among other things, these allocations are
subject to frequent changes both due to the effects of differential performance
and to Merrill Lynch Investment Partners Inc. ("MLIP") reallocating the Fund's
assets among non-core Advisors.
<TABLE>
<CAPTION>
Annualized Assets Under
Worst/Best Standard Management General
Monthly Deviation In Strategy
Rate of Return/1/ of Return/2/ Fund Program/3/ Classification/4/
----------------- ------------ --------------- -----------------
<S> <C> <C> <C> <C>
Core Advisors
ARA Portfolio Management Company, L.L.C. (14.46)%/5//14.75% 20.9% $137 million Technical;
Gamma Program (15.0%) trend-following
Chesapeake Capital Corporation (10.98)%/15.99% 17.7% $879 million Technical;
Diversified Program (37.0%) trend-following
John W. Henry & Company, Inc. (27.7)%/5//25.5% 25.6% $1.2 billion Technical;
Financial and Metals Portfolio (24.0%) trend-following
Non-Core Advisors
Di Tomasso Group Inc. (23.95)%/31.45% 29.8% $89.8 million Discretionary;
Equilibrium Trading Program fundamental
Finagra Management Inc. (4.07)%/0.89% 21.3% $1.4 million Discretionary;
AIG Commodity Arbitrage Program/6/ fundamental
Willowbridge Associates Inc. (12.67)%/31.21% 35.0% $359 million Discretionary;
XLIM Program fundamental
</TABLE>
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
Performance and assets under management information is current as of October 31,
1997. Performance figures are not audited.
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/1/ The lowest and the highest monthly rate of return for the program traded
for the Fund. Performance information is presented for the period from
January 1, 1992 (or inception, if later) through October 31, 1997.
/2/ An annualized standard deviation of 2% and a mean return of 1% would mean
that approximately two-thirds of all monthly returns during a year have
historically fallen between (1)% and 3%, i.e., within a range (deviation)
of 2% above or below the mean. Standard deviation is one widely-accepted
measure of risk, as standard deviation indicates the variability of
returns. In general, the more variable an Advisor's historical returns, the
greater the risk that substantial losses have been included within the
historical range of returns.
/3/ Approximate assets under management in the program traded for the Fund
("notional" funds excluded).
/4/ See "The Core Advisors" in the Prospectus for a description of these
strategy classifications.
/5/ The Worst Monthly Rate of Return of any individual account, not of the
program on a composite basis.
/6/ Commodity interests traded pursuant to this program may, in the future,
include cash commodities for accounts other than that of the Fund;
accordingly, the performance of the Fund account may differ from that of
other accounts.
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IN ADDITION TO THIS PROSPECTUS SUPPLEMENT, THE PROSPECTUS MUST BE ACCOMPANIED BY
SUMMARY FINANCIAL INFORMATION FOR THE FUND CURRENT WITHIN 60 CALENDAR DAYS.
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THE COMMODITY FUTURES TRADING COMMISSION HAS NOT PASSED UPON THE MERITS OF
PARTICIPATING IN THIS POOL NOR HAS THE COMMISSION PASSED UPON THE ADEQUACY OR
ACCURACY OF THIS PROSPECTUS SUPPLEMENT.
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS SUPPLEMENT. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
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Merrill Lynch, Pierce, Fenner & Smith Incorporated
Selling Agent
Merrill Lynch Investment Partners Inc.
General Partner
<PAGE>
General
Futures trading is highly leveraged, as is each Advisor's trading program.
See "Risk Factors" in the Prospectus.
In considering the leverage at which the different Advisors trade and the
volatility of their performance, prospective investors should recognize that due
to the limited percentage of the Fund's assets allocated to each of them, none
of the non-core Advisors, individually, is likely to have a material effect,
over the short term, on either the overall return or the overall performance
volatility of the Fund. The non-core Advisors as a group can have a significant
effect on performance. However, the likely performance non-correlation among at
least certain of these Advisors reduces the likelihood of any major short-term
effect.
The current non-core Advisors each receive Consulting Fees of up to 2% per
annum of the Fund's assets managed by each of them, respectively, plus quarterly
or annual Profit Shares of between 20% and 25% of any cumulative New Trading
Profit achieved by such Advisor.
Leveraging Policy
MLIP believes that it is advantageous for its multiple advisor pools,
including the Fund, to have flexibility in the Fund's leverage policy.
Consequently, while the Fund's risk/reward objectives remain unchanged,
beginning in June 1997 MLIP has from time to time directed certain individual
Advisors to manage their Fund accounts as if they were managing up to 50% more
equity than the actual capital allocated to them. This additional leverage is
subject to the condition that the Fund as a whole will not trade as if it had in
excess of 20% more equity than actual capital.
It is not possible to predict the effect upleveraging may have,
particularly given the Advisors' ongoing leverage adjustments to their own
trading and the anticipated non-correlation of their strategies. Increasing
leverage can generally be expected to increase profit potential, risk of loss
and volatility of returns. The flat-rate fees charged to the Fund continue to be
based on only the actual capital allocated to trading.
Any change by MLIP in the leverage of the Fund's trading is noted in the
asset allocation tables included in the Fund's monthly reports.
2
