UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
AMENDMENT
[X] Quarterly report pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the Period ended June 30, 1997 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 No. 33-80146
DEAN WITTER SPECTRUM STRATEGIC L.P.
(Exact name of registrant as specified in its charter)
Delaware 13-3782225
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization)
Identification
No.)
c/o Demeter Management Corporation
Two World Trade Center, 62 Fl., New York, NY 10048
(Address of principal executive offices) (Zip
Code)
Registrant's telephone number, including area code (212) 392-
5454
(Former name, former address, and former fiscal year, if
changed since last report)
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>
<TABLE>
DEAN WITTER SPECTRUM STRATEGIC L.P.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
June 30, 1997
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition June 30, 1997
(Unaudited) and December 31, 1996....................2
Statements of Operations for the Quarters Ended
June 30, 1997 and 1996 (Unaudited)...................3
Statements of Operations for the Six Months Ended
June 30, 1997 and 1996 (Unaudited)...................4
Statements of Changes in Partners' Capital for the
Six Months Ended June 30, 1997 and 1996 (Unaudited)..5
Statements of Cash Flows for the Six Months Ended
June 30, 1997 and 1996 (Unaudited)...................6
Notes to Financial Statements (Unaudited).........7-
12 Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.13-18
Part II. OTHER INFORMATION
Item 1. Legal Proceedings.............................19-
20 Item 5. Other
Information................................20 Item 6.
Exhibits and Reports on Form 8-K.................21
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM STRATEGIC L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
June 30, December
31, 1997
1996
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in Commodity futures trading accounts:
Cash 52,650,499 45,997,912
Net unrealized gain on open contracts3,686,971 140,355
Net option premiums 16,530 (45,325)
Total Trading Equity 56,354,000 46,092,942
Subscriptions receivable 1,735,514 833,091
Interest receivable (DWR) 197,055 163,643
Total Assets 58,286,569 47,089,676
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 1,030,316 1,490,536
Accrued brokerage commissions (DWR) 391,144 323,442
Accrued management fees 189,646 156,821
Total Liabilities 1,611,106 1,970,799
Partners' Capital
Limited Partners (4,876,375.763 and
4,184,723.907 Units, respectively) 56,083,393
44,64 5,423
General Partner (51,479.692 and
44,377.944 Units respectively) 592,070 473,454
Total Partners' Capital 56,675,463 45,118,877
Total Liabilities and Partners' Capital58,286,569 47,089,676
NET ASSET VALUE PER UNIT 11.50 10.67
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM STRATEGIC
L.P. STATEMENTS OF
OPERATIONS
(Unaudited)
<CAPTION>
For the Quarters Ended June
30, 1997
1996
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized (1,485,457) 1,250,609
Net change in unrealized (1,739,827)
(456,592)
Total Trading Results (3,225,284)
794,017
Interest Income (DWR) 565,576 387,247
Total Revenues (2,659,708)
1,181,264
EXPENSES
Brokerage commissions (DWR) 1,151,526 842,316
Management fees 558,317 385,060
Incentive fees
- -
186,125
Total Expenses 1,709,843 1,413,501
NET LOSS (4,369,551) (232,237)
NET LOSS ALLOCATION
Limited
Partner
(4,313,037) (230,283)
General
Partner
(56,514) (1,954)
NET LOSS PER UNIT
Limited
Partners
(.96) (.01)
General
Partner
(.96) (.01)
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM STRATEGIC
L.P. STATEMENTS OF
OPERATIONS
(Unaudited)
<CAPTION>
For the Six Months Ended June
30,
1997 1996
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 2,149,992 (65,275)
Net change in unrealized 3,546,616
(902,079)
Total Trading Results 5,696,608
(967,354)
Interest Income (DWR) 1,049,519 720,784
Total Revenues 6,746,127
(246,570)
EXPENSES
Brokerage commissions (DWR) 2,117,950 1,584,267
Management fees 1,026,885 724,237
Incentive fees 299,585 396,899
Total Expenses 3,444,420 2,705,403
NET INCOME (LOSS) 3,301,707
(2,951,973)
NET INCOME (LOSS) ALLOCATION
Limited Partner
3,278,091
(2,922,871)
General Partner
23,616 (29,102)
NET INCOME (LOSS) PER UNIT
Limited
Partners .83
(.88)
General
Partner .83
(.88)
<FN>
The accompanying footnotes are an integral part
of these financial statements. </TABLE>
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM STRATEGIC L.P. STATEMENTS OF CHANGES
IN PARTNERS' CAPITAL
For the Quarters Ended June 30, 1997 and 1996 (Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C>
<C> <C>
Partners' Capital,
December 31, 1995 2,935,591.820 $32,132,595 $330,337
$32,462,932
Continuous Offering1,247,524.887 12,991,881 120,000
13,111,881
Net Loss - (2,922,871) (29,102)
(2,951,973)
Redemptions (120,511.189) (1,265,978)
- -
(1,265,978)
Partners' Capital,
June 30, 1996 4,062,605.518 $40,935,627 $421,235
$41,356,862
Partners' Capital,
December 31, 1996 4,229,101.851 $44,645,423 $473,454
$45,118,877
Continuous Offering1,034,601.239 12,017,217 95,000
12,112,217
Net Income - 3,278,091 23,616
3,301,707
Redemptions (335,847.635) (3,857,338)
- -
(3,857,338)
Partners' Capital,
June 30, 1997 4,927,855.455 $56,083,393 $592,070
$56,675,463
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM STRATEGIC
L.P. STATEMENTS OF CASH
FLOWS
(Unaudited)
<CAPTION>
For the Six Months Ended June
30, 1997 1996
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income (loss) 3,301,707
(
2,951,973)
Noncash item included in net income (loss):
Net change in unrealized (3,546,616)
902,079
Increase in operating assets:
Net option premiums (61,855)
(50,705)
Interest receivable (DWR) (33,412)
(21,379)
Increase (decrease) in operating liabilities:
Accrued brokerage commissions (DWR)67,702 83,921
Accrued management fees 32,825 38,364
Incentive fees
payable
- - (198,924)
Net cash used for operating activities (239,649)
(
2,198,617)
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in subscriptions receivable(902,423) (
676,870)
Continuous offering 12,112,217 1
3,111,881
Increase (decrease) in redemptions payable
(460,220) 307,950
Redemptions of units (3,857,338) (
1,265,978)
Net cash provided by financing activities 6,892,236 1
1,476,983
Net increase in cash 6,652,587 9
,278,366
Balance at beginning of period 45,997,912 2
9,593,927
Balance at end of period 52,650,499 3
8,872,293
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
DEAN WITTER SPECTRUM STRATEGIC
L.P. NOTES TO FINANCIAL
STATEMENTS
(UNAUDITED)
The financial statements include, in the opinion of
management, all adjustments necessary for a fair presentation
of the results of operations and financial condition. The
financial statements and condensed notes herein should be read
in conjunction with the Partnership's December 31, 1996 Annual
Report on Form 10K.
1. Organization
Dean Witter Spectrum Strategic L.P. (the "Partnership") is
a limited partnership organized to engage in the
speculative trading of futures and forward contracts,
options on future contracts and on physical commodities,
and other commodity interests, including foreign currencies,
financial instruments, precious and industrial metals, energy
products and agriculturals
(collectively, "futures interests"). The general partner of
the Partnership, Demeter Management Corporation
("Demeter"), has retained Blenheim Invest-ments, Inc., A. Gary
Shilling & Company, Inc., and Willowbridge Associates Inc. as
the trading advisors of the Partnership. Both Demeter and
the commodity broker, Dean Witter Reynolds Inc. ("DWR") are
wholly owned subsidiaries of Morgan Stanley, Dean Witter,
Discover & Co. ("MSDWD").
2. Related Party Transactions
The Partnership's cash is on deposit with DWR in
commodity trading accounts to meet margin requirements as
needed. DWR pays interest on these funds based on prevailing
U.S. Treasury Bill rates.
<PAGE>
DEAN WITTER SPECTRUM STRATEGIC L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Brokerage expenses incurred by the Partnership are paid to DWR.
3. Financial Instruments
The Partnership trades futures and forward contracts in
interest rates, stock indices, commodities, currencies,
petroleum and precious metals. Futures, options and
forwards represent
contracts for delayed delivery of an instrument at a
specified date and price. Risk arises from changes in the
value of these contracts and the potential inability of
counterparties to perform under the terms of the contracts.
There are numerous factors which may significantly
influence the market value of these contracts, including
interest rate volatility. At June 30, 1997 and December 31,
1996, open contracts were:
Contract or Notional Amount
June 30, 1997 December 31,
1996 $ $
Exchange-Traded Contracts
Financial Futures:
Commitments to Purchase 12,343,000 15,204,000
Commitments to Sell 45,695,000 28,092,000
Options Written - 5,212,000
Commodity Futures:
Commitments to Purchase 29,576,000
36,735,000
Commitments to Sell 58,745,000
16,911,000
Options Written 62,144,000
2,126,000
Foreign Futures:
Commitments to Purchase 74,730,000
37,389,000
Commitments to Sell 34,019,000
10,787,000
Options Written 464,000
- -
Off-Exchange-Traded
Forward Currency Contracts
Commitments to Purchase 1,063,000
1,157,000
Commitments to Sell 1,056,000
1,121,000
<PAGE>
DEAN WITTER SPECTRUM STRATEGIC L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
A portion of the amounts indicated as off-balance-sheet risk
in
forward currency contracts is due to offsetting
forward commitments to purchase and to sell the same currency
on the same date in the future. These
commitments are economically
offsetting, but are not offset in the forward market until
the settlement date.
The net unrealized gain on open contracts is reported as
a component of "Equity in Commodity futures trading accounts"
on the Statements of Financial Condition and totaled
$3,686,971 and $140,355 at June 30, 1997 and December 31,
1996, respectively. Of the $3,686,971 net unrealized gain on
open contracts at June 30, 1997, $3,686,961 related to
exchange-traded futures contracts and $10 related to
off-exchange-traded forward currency
contracts. Of the $140,355 net unrealized gain on
open contracts at December 31, 1996, $140,193 related to
exchangetraded futures contracts and $162 related to off-
exchange-traded forward currency contracts.
Exchange-traded futures contracts held by the Partnership at
June 30, 1997 and December 31, 1996 mature through March
1998 and December 1997, respectively. Off-exchange-
traded forward
currency contracts held by the Partnership at June 30, 1997
and December 31, 1996 mature through July 1997 and January
1997, respectively. The contract amounts in the above table
represent the Partnership's extent of involvement in the
particular class of
<PAGE>
DEAN WITTER SPECTRUM STRATEGIC L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
financial instrument, but not the credit risk associated
with counterparty nonperformance. The credit risk
associated with these instruments is limited to the amounts
reflected in the Partnership's Statements of Financial
Condition.
The Partnership also has credit risk because DWR acts as
the futures commission merchant or the sole counterparty,
with respect to most of the Partnership's assets. Exchange-
traded futures and options contracts are marked to market on
a daily basis, with variations in value settled on a daily
basis. DWR,
as the futures commission merchant for all of the
Partnership's exchange-traded futures contracts, is
required pursuant to
regulations of the Commodity Futures Trading Commission
("CFTC") to segregate from its own assets and for the sole
benefit of its commodity customers all funds held by DWR
with respect to
exchange-traded futures and options contracts including an
amount equal to the net unrealized gain on all open futures
contracts, which funds totaled $56,337,460 and $46,138,105 at
June 30, 1997 and December 31, 1996, respectively. With
respect to the
Partnership's off-exchange-traded forward currency
contracts, there are no daily settlements of variations in
value nor is
there any requirement that an amount equal to the net
unrealized gain on open forward contracts be segregated.
With respect to
those off-exchange-traded forward currency contracts,
the
Partnership is at risk to the ability of DWR, the counterparty
on all such contracts, to perform.
<PAGE>
DEAN WITTER SPECTRUM STRATEGIC L.P.
NOTES TO FINANCIAL STATEMENTS -
(CONTINUED)
For the six months ended June 30, 1997 and the year
ended December 31, 1996, the average fair value of
financial
instruments held for trading purposes was as follows:
June 30, 1997
Assets
Liabilities $
$
Exchange-Traded Contracts:
Financial Futures 12,127,000
84,835,000
Options on Financial Futures 1,499,000
913,000
Commodity Futures 109,363,000
32,862,000
Options on Commodity Futures 38,269,000
33,918,000
Foreign Futures 69,295,000
23,345,000
Options on Foreign Futures 2,868,000
288,000
Off-Exchange-Traded
Currency Contracts 814,000 1,528,000
December 31, 1996
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 41,783,000
37,098,000
Options on Financial Futures 10,093,000
1,401,000
Commodity Futures 93,183,000
8,843,000
Options on Commodity Futures 17,066,000
2,566,000
Foreign Futures 59,665,000
12,417,000
Options on Foreign Futures 3,267,000
16,000
Off-Exchange-Traded
Currency Contracts 4,367,000 4,704,000
4. Subsequent Event
On July 31, 1997, DWR closed the sale of its
institutional futures business and foreign currency trading
operations to Carr Futures
Inc. ("Carr"), a subsidiary of Credit Agricole
Indosuez. Following the sale, Carr became the counterparty on
the
<PAGE>
DEAN WITTER SPECTRUM STRATEGIC L.P.
NOTES TO FINANCIAL STATEMENTS - (CONCLUDED)
Partnership's foreign currency trades. However, during
a
transition period of about three months, DWR will
continue perform certain services relating to the
Partnership's futures trading including clearance. After
such transition period, DWR will continue to serve as a
futures broker for the Partnership with Carr providing
execution and clearing services for the Partnership's
account.
Effective August 1, 1997, the flat-rate brokerage fee will
be reduced from 8.25% per annum to 7.65% per annum.
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Liquidity - The Partnership's assets are on deposit in
futures interest trading accounts with DWR, and are used
by the
Partnership as margin to engage in futures interest trading.
DWR holds such assets in either designated depositories
or in securities approved by the CFTC for investment of
customer funds. The Partnership's assets held by DWR may be
used as margin solely for the Partnership's trading. Since
the Partnership's sole
purpose is to trade in futures interests, it is expected that
the Partnership will continue to own such liquid assets for
margin purposes.
The Partnership's investment in futures interests may, from
time to time, be illiquid. Most United States futures
exchanges limit fluctuations in certain futures interest prices
during a single day by regulations referred to as "daily
price fluctuations limits" or "daily limits". Pursuant to
such regulations, during a single trading day no trades may
be executed at prices beyond the daily limit. If the price
of a particular futures interest has increased or decreased
by an amount equal to the "daily limit", positions in such
futures interest can neither be taken nor liquidated unless
traders are willing to effect trades at or within the limit.
Futures interest prices have occasionally moved the daily
limit for several consecutive days with little or no trading.
Such market conditions could prevent the Partnership from
promptly liquidating its futures interests and result in
<PAGE>
restrictions on redemptions. However, since the commencement
of trading by the Partnership, there has never been a time
when illiquidity has affected a material portion of the
Partnership's assets.
There is no limitation on daily price moves in trading
forward contracts on foreign currencies. The markets for
some world currencies have low trading volume and are
illiquid, which may prevent the Partnership from trading in
potentially profitable markets or prevent the Partnership
from promptly liquidating unfavorable positions in such
markets and subjecting it to substantial losses. Either
of these market conditions could result in restrictions on
redemptions.
Capital Resources. The Partnership does not have, nor does
it expect to have, any capital assets. Redemptions and
sales of additional Units in the future will affect the
amount of funds available for investments in futures
interests in subsequent periods. As redemptions are at
the discretion of Limited Partners, it is not possible to
estimate the amount and therefore the impact of future
redemptions.
Results of Operations
For the Quarter and Six Months Ended June 30, 1997
For the quarter ended June 30, 1997, the Partnership's
total trading losses net of interest income were $2,659,708.
During the second quarter, the Partnership posted a decrease
in Net Asset
<PAGE>
Value per Unit. Losses were recorded throughout the quarter
from short-term price volatility in European and Japanese
bond
futures. Additional losses were recorded during April from
short U.S. interest rate futures positions as U.S. bond
prices moved higher after moving lower previously. In stock
index futures, losses were recorded from trading S&P 500 and
Hang Seng Index futures during April and May. Smaller losses
were recorded in the agricultural markets from long positions
in soybean products and wheat futures as prices moved lower
during May and June. A portion of these losses was offset
by gains recorded from long cocoa
futures positions as prices in this market moved
dramatically higher during May and June. Additional gains
were recorded from long copper and zinc futures positions,
as base metals prices moved higher during May. In
currency trading, losses from transactions involving the
German mark and British pound were more than offset by gains
recorded during May and June from transactions involving the
Japanese yen. Total expenses for
the quarter were $1,709,843, resulting in a net loss
of $4,369,551. The value of an individual Unit in the
Partnership decreased from $12.46 at March 31, 1997 to $11.50
at June 30, 1997.
For the six months ended June 30, 1997, the Partnership's
total trading revenues including interest income were
$6,746,127. During the first six months, the Partnership
posted an increase in Net Asset Value per Unit. The most
significant gains were recorded from long cocoa futures
positions as prices moved sharply
<PAGE>
higher during March, May and June. Additional gains
were recorded from trading most base metals, particularly
long positions in copper and zinc futures, as prices in these
markets moved higher during January, February and May. In
energy futures trading, profits were recorded from trading
crude, heating and gas oil futures during the first quarter.
In currencies, gains were recorded from transactions
involving the Japanese yen and Swiss franc throughout a
majority of the first half of the year. Smaller gains were
recorded from long positions in soybean futures, as prices
in this market moved higher during the first quarter and
April. A portion of the Partnership's overall gains was
offset by losses from trendless price movement in Japanese
and European interest rate futures during January, April
and June. Smaller losses were recorded in global stock index
futures from trading S&P 500 and Hang Seng Index futures
during the second quarter. Total expenses for the period
were $3,444,420 resulting in net income of $3,301,707.
The value of an individual Unit in the Partnership
increased from $10.67 at December 31, 1996 to $11.50 at June
30, 1997.
For the Quarter and Six Months Ended June 30, 1996
For the quarter ended June 30, 1996, the Partnership's
total trading revenues Including interest income were
$1,181,264. During the second quarter, the Partnership posted a
small loss in Net Asset Value per Unit. Trading gains during
the quarter were offset by brokerage commissions resulting in
net trading losses. The most significant losses were recorded
in the metals markets as
<PAGE>
both precious and base metals prices moved in a short-
term volatile pattern throughout the quarter. Additional
losses were recorded in global financial futures trading as
prices in these markets moved without consistent direction
between April and June. Trading losses were also recorded in
the energy markets as a result of losses in crude oil futures
during May and June, as well as in natural and unleaded gas
futures during April. A majority of these losses were offset
by gains experienced during April from long corn and wheat
futures positions as prices in these markets increased.
Additional gains were recorded during April as the value of
the German mark and Swiss franc moved lower relative to the
U.S. dollar and other world currencies. Smaller
currency gains were recorded in June from short positions in
the Japanese yen. Losses in May from transactions
involving the German mark offset a portion of overall
currency gains for the quarter. In soft commodities,
trading gains in cocoa futures during April and May, and in
sugar futures during May and June, more than offset losses
experienced in cotton trading during May. Total expenses for
the quarter were $1,413,501, resulting in a net loss of
$232,237. The value of an individual Unit in the Partnership
decreased from $10.19 at March 31, 1996 to $10.18 at June 30,
1996.
For the six months ended June 30, 1996, the Partnership's
total trading losses net of interest income were $246,570.
During the
first six months, the Partnership posted a decrease in Net
Asset Value per Unit. The most significant losses for the
period were <PAGE>
recorded during February as a result of sharp and sudden
price movement in many of the markets traded by the
Partnership. As a result, losses were recorded in financial
futures from trading global interest rate futures.
Additional losses were recorded in financial futures trading
during the second quarter as global interest rate and
stock index futures prices moved without consistent
direction. Losses were also recorded in the energy markets
during February, May and June from trading crude oil
futures and in April and May from trading natural and
unleaded gas futures.
Trading losses in base metals during the second
quarter more than offset the gains in silver futures
during January. A portion of the overall losses for the
Partnership were offset by gains in the agricultural markets
from long corn futures positions as prices increased since
early in the first quarter and from long wheat futures
positions as prices increased early in the second quarter.
Additional gains were recorded during April as the value
of the German mark and Swiss franc moved lower relative
to the U.S. dollar and other world currencies. Smaller
currency gains recorded in June from transactions
involving the Japanese yen also helped to mitigate a portion of
overall losses for the first half of the year.
Total
expenses for the period were $2,705,403, resulting in a net
loss of $2,591,973. The
value of an individual Unit in the
Partnership decreased from $11.06 at December 31, 1995 to
$10.18 at June 30, 1996.
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
On September 6, 10, and 20, 1996, and on March 13, 1997,
similar purported class actions were filed in the Superior
Court of the State of
California, County of Los Angeles, on behalf of all
purchasers of interests in limited partnership commodity
pools
sold by DWR. Named defendants include DWR, Demeter, Dean
Witter Futures &
Currency Management, Inc., MSDWD, (all such parties
referred to hereafter as the "Dean Witter Parties"),
certain limited partnership commodity pools of which
Demeter is the general partner, and certain trading advisors
to those pools. On June 16,
1997, the plaintiffs in the above actions filed a
consolidated amended complaint. Similar purported class
actions were also filed on September 18 and 20, 1996 in the
Supreme Court of the State of New York, New York County, and
on November 14, 1996 in the Superior Court of the State of
Delaware, New Castle County, against the Dean Witter
Parties and certain trading advisors on behalf of all
purchasers of interests in various limited partnership
commodity pools sold by DWR. Generally, these complaints
allege, among other things, that the defendants committed
fraud, deceit, misrepresentation, breach of fiduciary
duty, fraudulent and unfair business practices,
unjust
enrichment, and conversion in connection with the sale
and operation of
the various limited partnership commodity pools.
The complaints seek unspecified amounts of compensatory
and punitive
damages and other relief. It is possible that
additional similar actions may be filed and that, in the
course
of these actions, other parties
<PAGE>
could be added as defendants. The Dean Witter Parties
believe
that they have strong defenses to, and they will
vigorously
contest, the actions. Although the ultimate outcome of
legal proceedings cannot be predicted with certainty, it is the
opinion of management of the Dean Witter Parties that the
resolution of
the actions will not have a material adverse effect on
the financial condition or the results of operations of any
of the Dean Witter Parties.
Item 5. OTHER INFORMATION
On July 21, 1997, MSDWD, the sole shareholder of
Demeter, appointed a new Board of Directors consisting of
Richard M. DeMartini, Mark J. Hawley, Lawrence Volpe, Joseph
G. Siniscalchi, Edward C. Oelsner III, and Robert E. Murray.
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
(A) Exhibits - None.
(B) Reports on Form 8-K. -
None.
<PAGE>
SIGNATURE
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.
Dean Witter Spectrum
Strategic L.P. (Registrant)
By: Demeter Management
Corporation (General Partner)
August 13, 1997 By: /s/ Patti L.
Behnke
Patti L. Behnke
Chief Financial Officer
The General Partner which signed the above is the only
party authorized to act for the Registrant. The Registrant
has no principal executive officer, principal financial
officer,
controller, or principal accounting officer and has no Board
of Directors.
