FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(X) QUARTERLY REPORT UNDER SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
OR ( ) TRANSITION REPORT UNDER SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter ended March 31, 1999
Commission File Number 0-26132
SMITH BARNEY DIVERSIFIED FUTURES FUND L.P.
(Exact name of registrant as specified in its charter)
New York 13-3729162
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
c/o Smith Barney Futures Management Inc.
390 Greenwich St. - 1st Fl.
New York, New York 10013
(Address and Zip Code of principal executive offices)
(212) 723-5424
(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>
SMITH BARNEY DIVERSIFIED FUTURES FUND L.P.
FORM 10-Q
INDEX
Page
Number
PART I - Financial Information:
Item 1 Financial Statements:
Statement of Financial Condition at March 31,
1999 (unaudited) and December 31, 1998 3
Statement of Income and Expenses and Partners'
Capital for the three months ended March 31,
1999 and 1998 (unaudited). 4
Notes to Financial Statements
(unaudited) 5 - 9
Item 2 Management's Discussion and
Analysis of Financial Condition
and Results of Operations 10 - 12
Item 3 Quantitative and Qualitative
Disclosures of Market Risk 13 - 14
PART II - Other Information 15
2
<PAGE>
PART I
ITEM 1. FINANCIAL STATEMENTS
SMITH BARNEY DIVERSIFIED FUTURES FUND L.P.
STATEMENT OF FINANCIAL CONDITION
MARCH 31, DECEMBER 31,
1999 1998
------------- --------------
ASSETS: (Unaudited)
Equity in commodity futures trading account:
Cash and cash equivalents $131,810,215 $136,910,140
Net unrealized appreciation
on open futures contracts 5,313,120 9,155,609
------------ ------------
137,123,335 146,065,749
Interest receivable 418,309 399,031
------------ ------------
$137,541,644 $146,464,780
============ ============
LIABILITIES AND PARTNERS' CAPITAL:
Liabilities:
Accrued expenses:
Commissions $ 642,489 $ 684,171
Management fees 326,016 360,801
Other 98,232 721,179
Incentive fees -- 89,185
Redemptions payable 1,807,899 705,183
------------ ------------
2,874,636 2,560,519
------------ ------------
Partners' Capital:
General Partner, 2,048.9308 Unit
equivalents outstanding in 1999 and 1998 2,765,749 2,863,893
Limited Partners, 97,715.8526 and
100,905.2113 Units of Limited Partnership
Interest outstanding in 1999 and 1998,
respectively 131,901,259 141,040,368
------------ ------------
134,667,008 143,904,261
------------ ------------
$137,541,644 $146,464,780
============ ============
See Notes to Financial Statements.
3
<PAGE>
SMITH BARNEY DIVERSIFIED FUTURES FUND L.P.
STATEMENT OF INCOME AND EXPENSES AND PARTNERS' CAPITAL
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
------------ -------------
1999 1998
------------- -------------
<S> <C> <C>
Income:
Net gains (losses) on trading of commodity
futures:
Realized gains on closed positions $ 808,558 $ 3,459,309
Change in unrealized gains/losses on
open positions (3,842,489) (6,141,169)
------------- -------------
(3,033,931) (2,681,860)
Less, brokerage commissions including
clearing fees of 58,967 and $93,177,
respectively (2,072,448) (2,258,006)
------------- -------------
Net realized and unrealized losses (5,106,379) (4,939,866)
Interest income 1,186,464 1,505,167
------------- -------------
(3,919,915) (3,434,699)
------------- -------------
Expenses:
Management fees 969,506 1,023,147
Other 36,252 36,552
Incentive fees -- 242,074
------------- -------------
1,005,758 1,301,773
------------- -------------
Net loss (4,925,673) (4,736,472)
Additions 29,432 32,476
Redemptions (4,341,012) (5,748,730)
------------- -------------
Net decrease in Partners' capital (9,237,253) (10,452,726)
Partners' capital, beginning of period 143,904,261 151,381,261
------------- -------------
Partners' capital, end of period $ 134,667,008 $ 140,928,535
------------- -------------
Net asset value per Unit
(99,764.7834 and 112,107.9575 Units
outstanding at March 31, 1999 and
1998, respectively) $ 1,349.85 $ 1,257.08
------------- -------------
Net loss per Unit of Limited Partnership
Interest and General Partner Unit equivalent $ (47.90) $ (41.35)
------------- -------------
</TABLE>
See Notes to Financial Statements
4
<PAGE>
SMITH BARNEY DIVERSIFIED FUTURES FUND L.P.
NOTES TO FINANCIAL STATEMENTS
March 31, 1999
(Unaudited)
1. General:
Smith Barney Diversified Futures Fund L.P. (the "Partnership") is a limited
partnership organized under the laws of the State of New York, on August 13,
1993 to engage in the speculative trading of a diversified portfolio of
commodity interests including futures contracts, options and forward contracts.
The commodity interests that are traded by the Partnership are volatile and
involve a high degree of market risk. The Partnership commenced trading
operations on January 12, 1994.
Smith Barney Futures Management Inc. acts as the general partner (the
"General Partner") of the Partnership. The Partnership's commodity broker is
Salomon Smith Barney Inc. ("SSB"). SSB is an affiliate of the General Partner.
The General Partner is wholly owned by Salomon Smith Barney Holdings Inc.
("SSBH"), which is the sole owner of SSB. SSBH is a wholly owned subsidiary of
Citigroup Inc. All trading decisions are made for the Partnership by Campbell &
Company, Inc., John W. Henry & Company Inc., Trendview Management Inc.,
Willowbridge Associates Inc. and Rabar Market Research, Inc. (collectively, the
"Advisors").
The accompanying financial statements are unaudited but, in the opinion of
management, include all adjustments (consisting only of normal recurring
adjustments) necessary for a fair presentation of the Partnership's financial
condition at March 31, 1999 and the results of its operations for the three
months ended March 31, 1999 and 1998. These financial statements present the
results of interim periods and do not include all disclosures normally provided
in annual financial statements. It is suggested that these financial statements
be read in conjunction with the financial statements and notes included in the
Partnership's annual report on Form 10-K filed with the Securities and Exchange
Commission for the year ended December 31, 1998.
Due to the nature of commodity trading, the results of operations for the
interim periods presented should not be considered indicative of the results
that may be expected for the entire year.
5
<PAGE>
SMITH BARNEY DIVERSIFIED FUTURES FUND L.P.
NOTES TO FINANCIAL STATEMENTS
(continued)
2. Net Asset Value Per Unit:
Changes in net asset value per Unit for the three months ended March
31, 1999 and 1998, were as follows:
THREE-MONTHS ENDED
MARCH 31,
1999 1998
Net realized and
unrealized losses $ (49.70) $ (43.10)
Interest income 11.64 13.06
Expenses (9.84) (11.31)
--------- ---------
Decrease for period (47.90) (41.35)
Net Asset Value per Unit,
beginning of period 1,397.75 1,298.43
--------- ---------
Net Asset Value per Unit,
end of period $ 1,349.85 $ 1,257.08
========= =========
3. Trading Activities:
The Partnership was formed for the purpose of trading contracts in a
variety of commodity interests, including derivative financial instruments and
derivative commodity instruments. The results of the Partnership's trading
activity are shown in the statement of income and expenses.
The Customer Agreement between the Partnership and SSB gives the
Partnership the legal right to net unrealized gains and losses.
All of the commodity interests owned by the Partnership are held for
trading purposes. The fair value of these commodity interests, including
options thereon,if applicable, at March 31, 1999 and December 31, 1998 was
$5,313,120 and $9,155,609, respectively, and the average fair value during the
three and twelve months then ended, based on a monthly calculation, was
$6,545,117 and $8,814,289, respectively.
6
<PAGE>
4. Financial Instrument Risk:
The Partnership is party to financial instruments with off-balance
sheet risk, including derivative financial instruments and derivative commodity
instruments, in the normal course of its business. These financial instruments
may include forwards, futures and options, whose value is based upon an
underlying asset, index, or reference rate, and generally represent future
commitments to exchange currencies or cash flows, to purchase or sell other
financial instruments at specific terms at specified future dates, or, in the
case of derivative commodity instruments, to have a reasonable possibility to be
settled in cash, through physical delivery or with another financial instrument.
These instruments may be traded on an exchange or over-the-counter ("OTC").
Exchange traded instruments are standardized and include futures and certain
option contracts. OTC contracts are negotiated between contracting parties and
include forwards and certain options. Each of these instruments is subject to
various risks similar to those related to the underlying financial instruments
including market and credit risk. In general, the risks associated with OTC
contracts are greater than those associated with exchange traded instruments
because of the greater risk of default by the counterparty to an OTC contract.
Market risk is the potential for changes in the value of the financial
instruments traded by the Partnership due to market changes, including interest
and foreign exchange rate movements and fluctuations in commodity or security
prices. Market risk is directly impacted by the volatility and liquidity in the
markets in which the related underlying assets are traded.
Credit risk is the possibility that a loss may occur due to the failure
of a counterparty to perform according to the terms of a contract. Credit risk
with respect to exchange traded instruments is reduced to the extent that an
exchange or clearing organization acts as a counterparty to the transactions.
The Partnership's risk of loss in the event of counterparty default is typically
limited to the amounts recognized in the statement of financial condition and
not represented by the contract or notional amounts of the instruments. The
Partnership has concentration risk because the sole counterparty or broker with
respect to the Partnership's assets is SSB.
The General Partner monitors and controls the Partnership's risk
exposure on a daily basis through financial, credit and risk management
monitoring systems and, accordingly believes that it has effective procedures
for evaluating and limiting the credit and market risks to which the Partnership
is subject. These monitoring systems allow the General Partner to statistically
analyze actual trading results with risk adjusted performance indicators and
correlation statistics. In addition, on-line monitoring systems provide account
analysis of futures, forwards and options positions by sector, margin
requirements, gain and loss transactions and collateral positions.
7
<PAGE>
The notional or contractual amounts of these instruments, while not
recorded in the financial statements, reflect the extent of the Partnership's
involvement in these instruments.
At March 31, 1999, the notional or contractual amounts of the
Partnership's commitment to purchase and sell these instruments was $602,480,947
and $739,576,559, respectively, as detailed below. All of these instruments
mature within one year of March 31, 1999. However, due to the nature of the
Partnership's business, these instruments may not be held to maturity. At March
31, 1999, the fair value of the Partnership's derivatives, including options
thereon, if applicable, was $5,313,120, as detailed below.
MARCH 31, 1999
NOTIONAL OR CONTRACTUAL
AMOUNT OF COMMITMENTS
TO PURCHASE TO SELL FAIR VALUE
Currencies:
- - Exchange Traded Contracts $ 10,817,695 $ 51,345,580 $ 661,152
- - OTC Contracts 58,988,391 195,205,458 613,752
Energy 29,032,421 -- 2,771,386
Grains 12,487,640 4,906,807 (161,188)
Interest Rates U.S. 6,617,375 212,438,402 1,091,363
Interest Rates Non-U.S 430,376,401 212,889,318 (467,854)
Livestock -- 1,192,410 (3,270)
Metals 15,344,552 38,938,818 (760,859)
Softs 6,917,148 12,907,831 456,565
Indices 31,899,324 9,751,935 1,112,073
------------ ------------ ------------
Totals $602,480,947 $739,576,559 $ 5,313,120
============ ============ ============
8
<PAGE>
At December 31, 1998, the notional or contractual amounts of the
Partnership's commitment to purchase and sell these instruments was $710,781,714
and $672,667,460, respectively, and fair value of the Partnership's derivatives,
including options thereon, if applicable, was $9,155,609, as detailed below.
DECEMBER 31,1998
NOTIONAL OR CONTRACTUAL
AMOUNT OF COMMITMENTS
TO PURCHASE TO SELL FAIR VALUE
Currencies:
- - Exchange Traded Contracts $ 1,854,238 $ 8,298,013 $ 57,514
- - OTC Contracts 101,811,752 92,268,276 56,390
Energy 29,148 13,483,496 433,210
Grains 316,896 18,245,823 415,008
Interest Rates U.S. 79,457,250 95,731,294 (740,429)
Interest Rates Non-U.S 496,535,139 404,533,682 7,987,464
Livestock -- 636,650 20,120
Metals 2,326,150 29,063,147 468,466
Softs 13,219,410 7,949,559 383,544
Indices 15,231,731 2,457,520 74,322
------------ ------------ ------------
Totals $710,781,714 $672,667,460 $ 9,155,609
============ ============ ============
9
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Liquidity and Capital Resources
The Partnership does not engage in the sale of goods or services. Its only
assets are its equity in its commodity futures trading account, consisting of
cash and cash equivalents, net unrealized appreciation (depreciation) on open
futures and forward contracts, commodity options and interest receivable.
Because of the low margin deposits normally required in commodity futures
trading, relatively small price movements may result in substantial losses to
the Partnership. While substantial losses could lead to a decrease in liquidity,
no such losses occurred during the third quarter of 1999.
The Partnership's capital consists of the capital contributions of the partners
as increased or decreased by gains or losses on commodity futures trading,
expenses, interest income, additions and redemptions of Units and distributions
of profits, if any.
For the three months ended March 31, 1999, Partnership capital decreased 6.4%
from $143,904,261 to $134,667,008. This decrease was attributable to the
redemption of 3,210.8757 Units totaling $4,341,012 coupled with net loss from
operations of $4,925,673 which was partially offset by additional sales of
21.5170 Units totaling $29,432. Additional Units offered represent a reduced
brokerage fee to existing limited partners investing $1,000,000 or more. Future
redemptions can impact the amount of funds available for investments in
commodity contract positions in subsequent periods.
Risk of Computer System Failure (Year 2000 Issue)
The Year 2000 issue is the result of existing computers in
many businesses using only two digits to identify a year in the date field.
These computers and programs, often referred to as "information technology,"
were designed and developed without considering the impact of the upcoming
change in the century. If not corrected, many computer applications could fail
or create erroneous results at the Year 2000. Such systems and processes are
dependent on correctly identifying dates in the next century.
The General Partner administers the business of the
Partnership through various systems and processes maintained by SSBH and SSB. In
addition, the operation of the Partnership is dependent on the capability of the
Partnership's Advisors, the brokers and exchanges through which the Advisors
trade, and other third parties to prepare adequately for the Year 2000 impact on
their systems and processes. The Partnership itself has no systems or
information technology applications relevant to its operations.
10
<PAGE>
The General Partner, SSB, SSBH and their parent organization
Citigroup Inc. have undertaken a comprehensive, firm-wide evaluation of both
internal and external systems (systems related to third parties) to determine
the specific modifications needed to prepare for the year 2000. The combined
Year 2000 program in SSB is expected to cost approximately $140 million over the
four years from 1996 through 1999, and involve over 450 people at the peak
staffing level. SSB expects to complete all compliance and certification work by
June 1999. At this time, over 95% of SSBH systems have completed the correction
process and are Year 2000 compliant. Over 73% of the systems have completed
certification testing. The Year 2000 project at SSBH remains on schedule.
The systems and components supporting the General Partner's
business that require remediation have been identified and modifications have
been made to bring them into Year 2000 compliance. Testing of these systems was
completed in the fourth quarter of 1998. Final testing and certification are
expected to be completed by the end of the first quarter of 1999.
This expenditure and the General Partner's resources dedicated
to the preparation for Year 2000 do not and will not have a material impact on
the operation or results of the Partnership.
The General Partner has requested and received statements from
the Advisors that each has undertaken its own evaluation and remediation plans
to identify any of its computer systems that are Year 2000 vulnerable. Each
Advisor has confirmed it is taking immediate actions to remedy those systems as
necessary. The General Partner will continue to inquire into and to confirm each
Advisor's readiness for Year 2000.
The most likely and most significant risk to the Partnership
associated with the lack of Year 2000 readiness is the failure of outside
organizations, including the commodities exchanges, clearing organizations, or
regulators with which the Partnership interacts to resolve their Year 2000
issues in a timely manner. This risk could involve the inability to determine
the value of the Partnership at some point in time and would make effecting
purchases or redemptions of Units in the Partnership infeasible until such
valuation was determinable.
SSB has successfully participated in industry-wide testing
including: The Streetwide Beta Testing organized by the Securities Industry
Association (SIA), a government securities clearing test with the Federal
Reserve Bank of New York, The Depository Trust Company, and The Bank of New
York, and Futures Industry Association participants test. The firm is also
participating in the streetwide testing which commenced in March 1999.
11
<PAGE>
It is possible that problems may occur that would require some
time to repair. Moreover, it is possible that problems will occur outside SSBH
for which SSBH could experience a secondary effect. Consequently, SSBH is
preparing comprehensive, written contingency plans so that alternative
procedures and a framework for critical decisions are defined before any
potential crisis occurs.
The goal of Year 2000 contingency planning is a set of
alternate procedures to be used in the event of a critical system failure or a
failure by a supplier or counterparty. Planning work was completed in December
1998, and testing of alternative procedures will be conducted in the first half
of 1999.
Results of Operations
During the Partnership's first quarter of 1999, the net asset value per
Unit decreased 3.4% from $1,397.75 to $1,349.85, as compared to an decrease of
3.2% in the first quarter of 1998. The Partnership experienced a net trading
loss before brokerage commissions and related fees in the first quarter of 1999
of $3,033,931. Losses were primarily attributable to the trading of commodity
futures in livestocks, indices, softs, non - U.S. interest rates and metals and
were partially offset by gains in currencies, U.S. interest rates, energy and
grains. The Partnership experienced a net trading loss before brokerage
commissions and related fees in the first quarter of 1998 of $2,681,860. Losses
were primarily attributable to the trading of commodity futures in currencies,
U.S. interest rates, softs, grains, metals and energy products and were
partially offset by gains in indices, livestock and non-U.S interest rates.
Commodity futures markets are highly volatile. Broad price fluctuations
and rapid inflation increase the risks involved in commodity trading, but also
increase the possibility of profit. The profitability of the Partnership depends
on the existence of major price trends and the ability of the Advisors to
identify correctly those price trends. Price trends are influenced by, among
other things, changing supply and demand relationships, weather, governmental,
agricultural, commercial and trade programs and policies, national and
international political and economic events and changes in interest rates. To
the extent that market trends exist and the Advisors are able to identify them,
the Partnership expects to increase capital through operations.
Interest income on 80% of the Partnership's daily equity maintained in
cash was earned on the monthly average 30-day U.S. Treasury bill rate determined
weekly by SSB based on the non-competitive yield on three month U.S. Treasury
bills maturing in 30 days from the date in which such weekly rate is determined.
Interest income for the three months ended March 31, 1999 decreased by $318,703,
as compared to the corresponding period in 1998. The decrease in interest income
is primarily due to the effect of redemptions on the Partnership's equity
maintained in cash.
Brokerage commissions are calculated on the Partnership's net asset
value as of the last day of each month and, therefore, vary according to trading
performance and redemptions. Accordingly, they must be compared in relation to
the fluctuations in monthly net asset values. Commissions and fees for the three
months ended March 31, 1999 decreased by $185,558, as compared to the
corresponding period in 1998.
Management fees are calculated on the portion of the Partnership's net
asset value allocated to each Advisor at the end of the month and, therefore,
are affected by trading performance and redemptions. Management fees for the
three months ended March 31, 1999 decreased by $53,641, as compared to the
corresponding period in 1998.
Incentive fees are based on the new trading profits generated by each
Advisor at the end of the quarter, as defined in the advisory agreements between
the Partnership, the General Partner and each Advisor. Trading performance for
the three months ended March 31, 1999 and 1998 resulted in incentive fees of $0
and $242,074, respectively.
12
<PAGE>
Item 3. Quantitative and Qualitative Disclosures of Market Risk
The Partnership is a speculative commodity pool. The market sensitive
instruments held by it are acquired for speculative trading purposes, and all or
substantially all of the Partnership's assets are subject to the risk of trading
loss. Unlike an operating company, the risk of market sensitive instruments is
integral, not incidental, to the Partnership's main line of business.
Market movements result in frequent changes in the fair market value of
the Partnership's open positions and, consequently, in its earnings and cash
flow. The Partnership's market risk is influenced by a wide variety of factors,
including the level and volatility of interest rates, exchange rates, equity
price levels, the market value of financial instruments and contracts, the
diversification effects among the Partnership's open positions and the liquidity
of the markets in which it trades.
The Partnership rapidly acquires and liquidates both long and short
positions in a wide range of different markets. Consequently, it is not possible
to predict how a particular future market scenario will affect performance, and
the Partnership's past performance is not necessarily indicative of its future
results.
Value at Risk is a measure of the maximum amount which the Partnership
could reasonably be expected to lose in a given market sector. However, the
inherent uncertainty of the Partnership's speculative trading and the recurrence
in the markets traded by the Partnership of market movements far exceeding
expectations could result in actual trading or non-trading losses far beyond the
indicated Value at Risk or the Partnership's experience to date (i.e., "risk of
ruin"). In light of the foregoing as well as the risks and uncertainties
intrinsic to all future projections, the inclusion of the quantification
included in this section should not be considered to constitute any assurance or
representation that the Partnership's losses in any market sector will be
limited to Value at Risk or by the Partnership's attempts to manage its market
risk.
13
<PAGE>
The following table indicates the trading Value at Risk associated with the
Partnership's open positions by market category as of March 31, 1999. All open
position trading risk exposures of the Partnership have been included in
calculating the figures set forth below. As of March 31, 1999, the Partnership's
total capitalization was approximately $134,667,008. There has been no material
change in the trading Value at Risk information previously disclosed in the Form
10-K for the year ended December 31, 1998.
March 31, 1999
% of Total
Market Sector Value at Risk Capitalization
Currencies
- Exchange Traded Contracts $ 733,979 0.55%
- OTC Contracts 5,021,303 3.72%
Energy 2,359,400 1.75%
Grains 494,090 0.37%
Interest rates U.S. 1,809,875 1.34%
Interest rates Non-U.S 3,409,792 2.53%
Livestock 27,025 0.02%
Metals 1,113,350 0.83%
Softs 1,113,947 0.83%
Indices 3,373,791 2.51%
----------- -----
Total $19,456,552 14.45%
=========== ======
14
<PAGE>
PART II OTHER INFORMATION
Item 1. Legal Proceedings
For information concerning a purported class action against
numerous broker-dealers including Salomon Smith Barney, see the
description that appears in the sixth paragraph under the caption Item
3. "Legal Proceedings" on Form 10-K for the year ending December 31,
1998. SSBH has filed a motion to dismiss the amended complaint.
Item 2. Changes in Securities and Use of Proceeds - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
Item 5. Other Information - None
Item 6. (a) Exhibits - None
(b) Reports on Form 8-K - None
15
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
SMITH BARNEY DIVERSIFIED FUTURES FUND L.P.
By: Smith Barney Futures Management Inc.
(General Partner)
By: /s/ David J. Vogel, President
David J. Vogel, President
Date: 5/14/99
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
By: Smith Barney Futures Management Inc.
(General Partner)
By: /s/ David J. Vogel, President
David J. Vogel, President
Date: 5/14/99
By /s/ Daniel A. Dantuono
Daniel A. Dantuono
Chief Financial Officer and
Director
Date: 5/14/99
16
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000911503
<NAME> SMITH BARNEY DIVERSIFIED FUTURES FUND L.P.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 131,810,215
<SECURITIES> 5,313,120
<RECEIVABLES> 418,309
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 137,541,644
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 137,541,644
<CURRENT-LIABILITIES> 2,874,636
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 134,667,008
<TOTAL-LIABILITY-AND-EQUITY> 137,541,644
<SALES> 0
<TOTAL-REVENUES> (3,919,915)
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,005,758
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (4,925,673)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (4,925,673)
<EPS-PRIMARY> (47.90)
<EPS-DILUTED> 0
</TABLE>
