<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, 1999
-------------
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.
Princeton Corporate Campus
800 Scudders Mill Road - Section 2G
Plainsboro, New Jersey 08536
----------------------------
(Address of principal executive offices)
(Zip Code)
609-282-6996
--------------------------------------------------------
(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
----- -----
<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,
1999 1998
--------------- ---------------
<S> <C> <C>
ASSETS
Equity in commodity futures trading accounts:
Cash and option premiums $ 95,060,216 $ 106,424,609
Net unrealized profit on open contracts 921,891 3,947,083
Accrued interest 370,253 407,106
--------------- ---------------
TOTAL $ 96,352,360 $ 110,778,798
=============== ===============
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES:
Profit Shares payable $ 654,573 $ 1,197,683
Brokerage commissions payable 582,129 669,289
Incentive override payable 114,942 153,883
Redemptions payable 1,484,841 4,299,253
Administrative fees payable 20,073 23,079
--------------- ---------------
Total liabilities 2,856,558 6,343,187
--------------- ---------------
PARTNERS' CAPITAL:
General Partners (8,298 and 8,298 Units) 1,402,522 1,356,079
Limited Partners (544,871 and 630,758 Units) 92,093,280 103,079,532
--------------- ---------------
Total partners' capital 93,495,802 104,435,611
--------------- ---------------
TOTAL $ 96,352,360 $ 110,778,798
=============== ===============
NET ASSET VALUE PER UNIT
(Based on 553,169 and 639,056 Units outstanding) $ 169.02 $ 163.42
=============== ===============
</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, June 30, June 30, June 30,
1999 1998 1999 1998
------------------- --------------------- ----------------- -----------------
<S> <C> <C> <C> <C>
REVENUES:
Trading profits (loss):
Realized $ 4,529,556 $ (2,856,624) $ 8,634,702 $ 6,790,933
Change in unrealized (665,976) (4,232,290) (3,024,065) (9,021,774)
------------------- --------------------- ----------------- -----------------
Total trading results 3,863,580 (7,088,914) 5,610,637 (2,230,841)
------------------- --------------------- ----------------- -----------------
Interest income 1,094,530 1,643,341 2,254,760 3,380,634
------------------- --------------------- ----------------- -----------------
Total revenues 4,958,110 (5,445,573) 7,865,397 1,149,793
------------------- --------------------- ----------------- -----------------
EXPENSES:
Profit Shares 438,752 (17,589) 778,990 1,166,918
Incentive override 114,942 (103,119) 114,942 3,771
Brokerage commissions 1,759,898 2,313,093 3,618,703 4,837,219
Administrative fees 60,686 79,762 124,783 166,801
------------------- --------------------- ----------------- -----------------
Total expenses 2,374,278 2,272,147 4,637,418 6,174,709
------------------- --------------------- ----------------- -----------------
NET INCOME (LOSS) $ 2,583,832 $ (7,717,720) $ 3,227,979 $ (5,024,916)
=================== ===================== ================= =================
NET INCOME (LOSS) PER UNIT:
Weighted average number of
units outstanding 571,340 870,950 596,388 877,695
=================== ===================== ================= =================
Weighted average net income (loss)
per Limited Partner
and General Partner Unit $ 4.52 $ (8.86) $ 5.41 $ (5.73)
=================== ===================== ================= =================
</TABLE>
See notes to financial statements.
3
<PAGE>
ML GLOBAL HORIZONS L.P.
(a Delaware limited partnership)
------------------------------
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
------------------------------------------
For the six months ended June 30, 1999 and 1998
-----------------------------------------------
<TABLE>
<CAPTION>
Limited General Subscriptions
Units Partners Partner Receivable Total
---------------- ---------------- ---------------- ----------------- -----------------
<S> <C> <C> <C> <C> <C>
PARTNERS' CAPITAL,
December 31, 1997 871,217 $134,446,411 $ 1,568,439 $ (1,970,485) $ 134,044,365
Net loss - (4,967,237) (57,679) - (5,024,916)
Subscriptions 56,473 6,812,805 (5,900) 1,970,485 8,777,390
Redemptions (151,969) (22,665,998) (222,337) - (22,888,335)
---------------- ---------------- ---------------- ----------------- -----------------
PARTNERS' CAPITAL,
June 30, 1998 775,721 $113,625,981 $ 1,282,523 $ - $ 114,908,504
================ ================ ================ ================= =================
PARTNERS' CAPITAL,
December 31, 1998 639,056 $103,079,532 $ 1,356,079 $ - $ 104,435,611
Net income - 3,181,536 46,443 - 3,227,979
Redemptions (85,887) (14,167,788) - - (14,167,788)
---------------- ---------------- ---------------- ----------------- -----------------
PARTNERS' CAPITAL,
June 30, 1999 553,169 $ 92,093,280 $ 1,402,522 $ - $ 93,495,802
================ ================ ================ ================= =================
</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 June 30, 1999, and the results of its operations for the three
and six month periods ended June 30, 1999 and 1998. 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 generally 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,
1998 (the "Annual Report").
2. FAIR VALUE AND OFF-BALANCE SHEET RISK
In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standard ("SFAS") No. 133, "Accounting for Derivative
Instruments and Hedging Activities" (the "Statement"), effective for fiscal
years beginning after June 15, 2000, however, the Fund has adopted the
Statement effective January 1, 1999. This Statement supercedes SFAS No. 119
("Disclosure about Derivative Financial Instruments and Fair Value of
Financial Instruments") and SFAS No. 105 ("Disclosure of information about
Financial Instruments with Off-Balance Sheet Risk and Financial Instruments
with Concentrations of Credit Risk") whereby disclosure of average aggregate
fair values and contract/notional values, respectively, of derivative
financial instruments is no longer required for an entity such as the
Partnership which carries its assets at fair value. Such Statement sets forth
a much broader definition of a derivative instrument. The General Partner
does not believe that the application of the provisions of such statement has
a significant effect on the financial statements.
SFAS No. 133 defines a derivative as a financial instrument or other contract
that has all three of the following characteristics (1) one or more
underlyings, notional amounts or payment provisions (2) requires no initial
net investment or a smaller initial net investment than would be required
relative to changes in market factors (3) terms require or permit net
settlement. Generally, derivatives include a future, forward, swap or option
contract, or other financial instrument with similar characteristics such as
caps, floors and collars.
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 net unrealized profit (loss) on such derivative
instruments as reflected in the Statements of Financial Condition. The
Partnership's exposure to market risk is influenced by a number of factors,
including the relationships among derivative instruments held by the
Partnership as well as the volatility and liquidity of the markets in which
such derivative instruments are traded.
The General Partner has procedures in place intended to control market risk
exposure, 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 by 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-
concentrations 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 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.
5
<PAGE>
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 require margin in the over-the-counter
markets.
The credit risk associated with these instruments from counterparty
nonperformance is the net unrealized profit included on the Statements of
Financial Condition.
The Partnership has credit risk in respect of its counterparties and brokers,
but attempts to control this risk by dealing almost exclusively with Merrill
Lynch entities as counterparties and brokers.
6
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
MONTH-END NET ASSET VALUE PER UNIT
Jan. Feb. Mar. Apr. May Jun.
- -------------------------------------------------------------------------
1998 $154.11 $155.99 $156.90 $148.38 $148.82 $148.13
- -------------------------------------------------------------------------
1999 $162.48 $163.98 $164.50 $167.59 $166.73 $169.02
- -------------------------------------------------------------------------
Performance Summary
January 1, 1998 to June 30, 1998
- --------------------------------
January 1, 1998 to March 31, 1998
The Fund's most profitable positions during the quarter were in the global
interest rate markets, particularly in European bonds where an extended bond
market rally continued despite an environment of robust growth in the United
States, Canada and the United Kingdom, as well as a strong pick-up in growth in
continental Europe. Specifically, strong gains were recorded in French and
German bonds.
For the quarter, positions in gold resulted in losses, while positions in crude
oil resulted in gains. Gold prices drifted sideways and lower as Asian demand
continued to slow and demand in the Middle East was affected by low oil prices.
Initially buoyed on concerns about a U.S.-led military strike against Iraq,
crude oil fell to a nine year low, as the globally warm winter, the return of
Iraq as a producer and the Asian economic crisis added to OPEC's supply glut
problems.
Trading results in stock index markets were mixed, but marginally profitable,
despite a strong first-quarter performance by the U.S. equity market as several
consecutive weekly gains were recorded with most market averages setting new
highs. Results in currency trading were also mixed, but marginally
unprofitable. Gains were realized in positions on the Swiss franc, which
weakened versus the U.S. dollar, while trading losses resulted from positions in
the Japanese yen and the Australian dollar.
Agricultural commodity markets provided profitable trading results overall.
Live cattle and hog prices trended downward throughout the quarter resulting in
strong gains. Cotton prices moved mostly upward during the quarter, but prices
dropped off sharply at the end of March causing losses.
April 1, 1998 to June 30, 1998
As swings in the U.S. dollar and developments in Japan affected bond markets,
the Fund's interest rate trading during the quarter resulted in losses,
particularly in Eurodollar deposits and U.S. Treasury bonds. Early in the
quarter, Treasury trading was range-bound, as concern that the economy might be
overheating was balanced by the potential impact of the Asian recession.
Additionally, Australian bonds and bills saw a dramatic drop in prices in early
June, as dollar-bloc currencies remained under pressure versus the U.S. dollar
due to the Japanese/Asian crisis.
Metals trading also resulted in losses, while energy trading was profitable.
The depressed gold market weakened further following news of a European Central
Bank consensus that ten to fifteen percent of reserves should be made up of gold
bullion which was at the low end of expectations. Despite production cuts
initiated by OPEC at the end of March, world oil supplies remained excessive and
oil prices stood at relatively low levels throughout the quarter.
Results in currency trading were unprofitable, despite strong gains realized
from Japanese yen positions, which weakened during June to an eight-year low
versus the U.S. dollar. Trading results in stock index markets were profitable
as the Asia-Pacific region's equity markets weakened across the board. In
particular, Hong Kong's Hang Seng index trended downward during most of the
quarter and traded at a three-year low.
Agricultural commodity trading produced losses. Although the U.S. soybean crop
got off to a good start which contributed to higher yield expectations and a
more burdensome supply outlook, soybean prices traded in a volatile pattern for
the second half of the quarter. Sugar futures maintained mostly a downtrend, as
no major buyers emerged to support the market. Similarly, coffee prices trended
downward, as good weather conditions in Central America and Mexico increased the
prospects of more output from these countries.
7
<PAGE>
January 1, 1999 to June 30, 1999
- --------------------------------
January 1, 1999 to March 31, 1999
Agricultural trading was profitable overall, as gains in coffee and live cattle
offset losses in corn and live hogs positions. Hog prices plummeted due to a
glut of hogs in the market. At the beginning of the quarter, the corn market
continued to struggle despite a stretch of solid export business. The market's
negative sentiment was deepened by ongoing favorable weather in South America
which continued through February, even though there was a sharp reduction in
Argentina's planted area. Lack of enthusiasm for new crop and less than
spectacular demand continued to depress the corn market throughout the quarter.
The Fund also profited from trading in crude oil, heating oil, and unleaded gas.
As the year opened, the global oil balance continued to show signs of being
lopsided with estimated year-end 1998 inventories at their highest levels since
1984. During January, petroleum stocks rose by 21 million barrels compared with
a typical gain of 6 to 7 million barrels. Then, on March 23, OPEC ratified new
production cuts totaling 1.716 million barrels per day at its conference. These
new production cuts were scheduled to go into effect on April 1 and proved to be
harbingers of higher prices for crude.
Interest rate trading proved profitable for the Fund as well, as gains in
Japanese government bonds and 10-year U.S. Treasury notes offset losses in
German 10-year bonds. Early in January, the yield on the Japanese government
10-year bond increased to 1.8%, sharply above the record low of 0.695% it
reached on October 7, 1998. This was triggered by the Japanese Trust Fund
Bureau's decision to absorb a smaller share of future issues, leaving the burden
of financing future budget deficits to the private sector.
Stock index trading was unprofitable, as losses were sustained in Hang Seng and
CAC40 positions. Also of note, the Dow Jones Industrial Average closed above
the 10,000 mark for the first time ever at the end of March, setting a record
for the index.
The Fund also suffered losses in currency trading during the quarter, as losses
in Japanese yen overpowered gains in German marks. In January, the yen had
advanced by nearly 35% against the dollar since early in August, and the Bank of
Japan lowered rates to keep the economy sufficiently liquid so as to allow
fiscal spending to restore some growth to the economy and to drive down the
surging yen.
Losses in aluminum and gold overshadowed gains in copper during the first
quarter. In January, burdensome warehouse stocks and questionable demand
prospects weighed on base metals as aluminum fell to a 5-year low and copper
fell to nearly an 11-year low. Major surpluses in both metals were expected,
keeping prices down, and there was no supply side response to weak demand and
lower prices. However, the end of March showed copper and aluminum leading a
surge in base metals as prices recovered from multi-year lows. In precious
metals, gold failed to sustain a rally, and gold's role as a flight to safety
vehicle has clearly been greatly diminished as has its role as a monetary asset.
April 1, 1999 to June 30, 1999
The Fund profited in interest rate trading from short positions in Euro dollars,
Japanese 10-year bonds and U.S. 10-year Treasury notes as the flight to quality
in the bond market reversed during the first half of 1999 and concerns about
higher interest rates continued to rattle the financial markets.
Stock index trading also resulted in gains overall for the quarter, as positions
in the S&P 500, CAC 40 Euro Futures outweighed losses in the Toronto Stock Index
as equity markets rallied worldwide in April and June.
Trading in the agricultural markets resulted in gains for the Fund as positions
in cocoa, coffee and soyoil all generated profits. Agricultural commodities
were weak almost across the board as they were saddled with supply/demand
imbalances. However, the coffee market soared as several cold fronts effected
areas of the coffee region.
The energy sector was profitable as positions in crude oil and gasoil offset
unprofitable short positions in natural gas trading. The focus of attention in
the natural gas markets since the end of winter was the sharply lower than year-
ago storage injection activity. Crude oil prices rallied much higher and faster
than expected following last quarter's ratification of an OPEC/non-OPEC
agreement to cut production by over 2 million barrels per day. Natural gas
prices also rallied sharply over the quarter, reflecting, in part, growing
concerns about a decline in US natural gas production.
Currency trading also resulted in gains for the Fund. Gains in Euro trading
were offset by losses sustained in the British pound and short positions in the
Australian dollar. The Australian dollar has been feeling the pinch of commodity
price weakness for the past few years but has rallied back since its low in
August of 1998.
8
<PAGE>
In the metals sector, gains from short gold positions were overshadowed by
losses in copper and nickel trading. Throughout the first half of 1999, gold
prices were in a state of gradual erosion and in early June, hit their lowest
levels in over 20 years. Gold continued to show a lack of response to political
and military events such as Kosovo and also lost much of its role as a monetary
asset and flight to safety vehicle. The economic scenario for Asia, Brazil,
emerging market nations and Europe helped keep copper and other base metals on
the defensive as demand receded with virtually no supply side response.
YEAR 2000 COMPLIANCE
As the Year 2000 approaches, Merrill Lynch has undertaken initiatives to address
the Year 2000 problem (the "Y2K problem"), as more fully described in the
Partnership's 1998 Form 10-K. The failure of Merrill Lynch's technology systems
relating to a Y2K problem would likely have a material adverse effect on the
company's business, results of operations, and financial condition. This effect
could include disruption of normal business transactions, such as the
settlement, execution, processing, and recording of trades in securities,
commodities, currencies, and other assets. The Y2K problem could also increase
Merrill Lynch's exposure to risk and legal liability and its need for liquidity.
The renovation phase of Merrill Lynch's Year 2000 system efforts, as described
in the Partnership's 1998 Form 10-K, was 100% completed as of June 30, 1999, and
production testing was 100% completed as of that date. In March and April 1999,
Merrill Lynch successfully participated in U.S. industrywide testing sponsored
by the Securities Industry Association. These tests involved an expanded number
of firms, transactions, and conditions compared with those previously conducted.
Merrill Lynch has participated in and continues to participate in numerous
industry tests throughout the world.
In light of the interdependency of the parties in or serving the financial
markets, there can be no assurance that all Y2K problems will be identified and
remedied on a timely basis or that all remediation will be successful. Public
uncertainty regarding successful remediation of the Y2K problem may cause a
reduction in activity in the financial markets. Disruption or suspension of
activity in the world's financial markets is also possible. In some non-U.S.
markets in which Merrill Lynch does business, the level of awareness and
remediation efforts relating to the Y2K problem are thought to be less advanced
than in the U.S. Management is unable at this point to ascertain whether all
significant third parties will successfully address the Y2K problem. Merrill
Lynch will continue to monitor third parties' Year 2000 readiness to determine
if additional or alternative measures are necessary. Contingency plans have been
established for all business units. However, the failure of exchanges, clearing
organizations, vendors, service providers, clients and counterparties,
regulators, or others to resolve their own processing issues in a timely manner
could have a material adverse effect on Merrill Lynch's business, results of
operations, and financial condition.
As of June 25, 1999, the total estimated expenditures of existing and
incremental resources for the Year 2000 compliance initiative are approximately
$520 million. This estimate includes $104 million of occupancy, communications,
and other related overhead expenditures, as Merrill Lynch is applying a fully
costed pricing methodology for this project. Of the total estimated
expenditures, approximately $80 million remains to be spent, primarily on
continued testing, contingency planning, and risk management. There can be no
assurance that the costs associated with remediation efforts will not exceed
those currently anticipated by Merrill Lynch, or that the possible failure of
such remediation efforts will not have a material adverse effect on Merrill
Lynch's business, results of operations, or financial condition.
9
<PAGE>
Item 3. Quantitative and Qualitative Disclosures About Market Risk
The following table indicates the trading Value at Risk associated with the
Fund's open positions by market category as of June 30, 1999 and December 31,
1998, and the average of the three and six month periods ending June 30, 1999.
As of June 30, 1999 and December 31, 1998, the Fund's total capitalization was
approximately $93 million and $104 million, all of which was allocated to
trading.
<TABLE>
<CAPTION>
June 30, 1999 December 31, 1998
---------------------------------------- -----------------------------------------
% OF TOTAL % OF TOTAL
MARKET SECTOR VALUE AT RISK CAPITALIZATION VALUE AT RISK CAPITALIZATION
-------------- -------------- -------------- --------------
- -----------------------------
<S> <C> <C> <C> <C>
Interest Rates $ 2,953,077 3.16% $ 1,485,947 1.42%
Currencies 1,270,707 1.36 3,022,541 2.90
Stock Indices 2,309,135 2.47 1,788,496 1.71
Metals 327,977 0.35 620,947 0.60
Commodities 638,938 0.70 492,438 0.47
Energy 633,876 0.70 578,300 0.55
-------------- ---------- -------------- ----------
$ 8,133,710 8.74% $ 7,988,669 7.65%
============== ========== ============== ==========
<CAPTION>
Average month-end Average month-end
For the Period For the Period
April 1999 through June 1999 January 1999 through June 1999
---------------------------------------- -----------------------------------------
% OF TOTAL % OF TOTAL
MARKET SECTOR VALUE AT RISK CAPITALIZATION VALUE AT RISK CAPITALIZATION
-------------- -------------- -------------- --------------
- -----------------------------
<S> <C> <C> <C> <C>
Interest Rates $ 2,821,701 2.99% $ 4,996,475 5.18%
Currencies 1,424,687 1.51 1,602,333 1.66
Stock Indices 1,872,580 1.98 2,122,016 2.20
Metals 329,552 0.35 405,025 0.42
Commodities 602,900 0.64 625,814 0.65
Energy 801,805 0.85 663,485 0.69
-------------- ---------- -------------- ----------
$ 7,853,225 8.32% $10,415,148 10.80%
============== ========== ============== ==========
</TABLE>
10
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
There are no pending proceedings to which the Partnership or the General
Partner is a party.
Item 2. Changes in Securities and Use of Proceeds
(a) None.
(b) None.
(c) None.
(d) 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 report.
(b) Reports on Form 8-K
-------------------
There were no reports on Form 8-K filed during the first six months of
fiscal 1999.
11
<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 10, 1999 By /s/ JOHN R. FRAWLEY, JR.
------------------------
John R. Frawley, Jr.
Chairman, Chief Executive Officer,
President and Director
Date: August 10, 1999 By /s/ MICHAEL L. PUNGELLO
-----------------------
Michael L. Pungello
Vice President, Chief Financial Officer
and Treasurer
12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> BD
<S> <C> <C>
<PERIOD-TYPE> 6-MOS 6-MOS
<FISCAL-YEAR-END> DEC-31-1999 DEC-31-1998
<PERIOD-START> JAN-01-1999 JAN-01-1998
<PERIOD-END> JUN-30-1999 JUN-30-1998
<CASH> 0 0
<RECEIVABLES> 96,352,360 110,778,798
<SECURITIES-RESALE> 0 0
<SECURITIES-BORROWED> 0 0
<INSTRUMENTS-OWNED> 0 0
<PP&E> 0 0
<TOTAL-ASSETS> 96,352,360 110,778,798
<SHORT-TERM> 0 0
<PAYABLES> 2,856,558 6,343,187
<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> 93,495,802 104,435,611
<TOTAL-LIABILITY-AND-EQUITY> 96,352,360 110,778,798
<TRADING-REVENUE> 5,610,637 (2,230,841)
<INTEREST-DIVIDENDS> 2,254,760 3,380,634
<COMMISSIONS> 4,637,418 6,174,709
<INVESTMENT-BANKING-REVENUES> 0 0
<FEE-REVENUE> 0 0
<INTEREST-EXPENSE> 0 0
<COMPENSATION> 0 0
<INCOME-PRETAX> 3,227,979 (5,024,916)
<INCOME-PRE-EXTRAORDINARY> 3,227,979 (5,024,916)
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 3,227,979 (5,024,916)
<EPS-BASIC> 5.41 (5.73)
<EPS-DILUTED> 5.41 (5.73)
</TABLE>
