UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly report pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
For the Period ended September 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 Corp.
Two World Trade Center, New York, NY 62 Fl. 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
September 30, 1997
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition September 30, 1997
(Unaudited) and December 31, 1996.....................2
Statements of Operations for the Quarters Ended
September 30, 1997 and 1996 (Unaudited)...............3
Statements of Operations for the Nine Months Ended
September 30, 1997 and 1996 (Unaudited)...............4
Statements of Changes in Partners' Capital for the
Nine Months ended September 30, 1997 and 1996
(Unaudited)...........................................5
Statements of Cash Flows for the Nine Months Ended
September 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 2. Changes in Securities and Use of Proceeds......20-22
Item 5. Other Information.................................22
Item 6. Exhibits and Reports on Form 8-K..................23
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM STRATEGIC L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
September 30, December 31,
1997 1996
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in Commodity futures trading accounts:
Cash 57,542,966 45,997,912
Net unrealized gain on open contracts 857,560 140,355
Net option premiums 383,840 (45,325)
Total Trading Equity 58,784,366 46,092,942
Subscriptions receivable 2,066,257 833,091
Interest receivable (DWR) 201,576 163,643
Total Assets 61,052,199 47,089,676
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 493,787 1,490,536
Accrued brokerage commissions (DWR) 396,036 323,442
Accrued management fees 207,078 156,821
Total Liabilities 1,096,901 1,970,799
Partners' Capital
Limited Partners (5,365,539.121 and
4,184,723.907 Units, respectively) 59,343,341 44,645,423
General Partner (55,330.243 and
44,377.944 Units respectively) 611,957 473,454
Total Partners' Capital 59,955,298 45,118,877
Total Liabilities and Partners' Capital 61,052,199 47,089,676
NET ASSET VALUE PER UNIT 11.06 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 September 30,
1997 1996
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 1,598,983 (307,120)
Net change in unrealized (2,829,411) 1,801,181
Total Trading Results (1,230,428) 1,494,061
Interest Income (DWR) 628,913 417,394
Total Revenues (601,515) 1,911,455
EXPENSES
Brokerage commissions (DWR) 1,187,561 881,098
Management fees 606,131 410,692
Incentive fees 127,509 77,894
Total Expenses 1,921,201 1,369,684
NET INCOME (LOSS) (2,522,716) 541,771
NET INCOME (LOSS) ALLOCATION
Limited Partners (2,507,603) 536,122
General Partner (15,113) 5,649
NET INCOME (LOSS) PER UNIT
Limited Partners (.44) .11
General Partner (.44) .11
<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 Nine Months Ended September 30,
1997 1996
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 3,748,975 (372,395)
Net change in unrealized 717,205 899,102
Total Trading Results 4,466,180 526,707
Interest Income (DWR) 1,678,432 1,138,178
Total Revenues 6,144,612 1,664,885
EXPENSES
Brokerage commissions (DWR) 3,305,511 2,465,365
Management fees 1,633,015 1,134,929
Incentive fees 427,095 474,793
Total Expenses 5,365,621 4,075,087
NET INCOME (LOSS) 778,991 (2,410,202)
NET INCOME (LOSS ) ALLOCATION
Limited Partners 770,488 (2,386,749)
General Partner 8,503 (23,453)
NET INCOME (LOSS )PER UNIT
Limited Partners .39 (.77)
General Partner .39 (.77)
<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 Nine Months Ended September 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 Offering 1,481,608.146 15,248,993 140,000 15,388,993
Net Loss - (2,386,749) (23,453) (2,410,202)
Redemptions (232,662.112) (2,387,524) - (2,387,524)
Partners' Capital
September 30, 1996 4,184,537.854 $42,607,315 $446,884 $43,054,199
Partners' Capital
December 31, 1996 4,229,101.851 $44,645,423 $473,454 $45,118,877
Continuous Offering 1,640,719.535 19,108,856 130,000 19,238,856
Net Income - 770,488 8,503 778,991
Redemptions (448,952.022) (5,181,426) - (5,181,426)
Partners' Capital
September 30, 1997 5,420,869.364 $59,343,341 $611,957 $59,955,298
<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 Nine Months Ended September 30,
1997 1996
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income (loss): 778,991 (2,410,202)
Noncash item included in net income (loss):
Net change in unrealized (717,205) (899,102)
Increase in operating assets:
Net option premiums (429,165) (368,853)
Interest receivable (DWR) (37,933) (32,058)
Increase (decrease) in operating liabilities:
Accrued brokerage commissions (DWR) 72,594 72,484
Accrued management fees 50,257 41,041
Incentive fees payable - (121,031)
Net cash used for operating activities (282,461) (3,717,721)
CASH FLOWS FROM FINANCING ACTIVITIES
Continuous offering 19,238,856 15,388,993
(Increase) decrease in subscriptions receivable (1,233,166) 1,547,750
Increase (decrease) in redemptions payable (996,749) 464,574
Redemptions of units (5,181,426) (2,387,524)
Net cash provided by financing activities 11,827,515 15,013,793
Net increase in cash 11,545,054 11,296,072
Balance at beginning of period 45,997,912 29,593,927
Balance at end of period 57,542,966 40,889,999
<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. The commodity broker for most of the
Partnership's transactions is Dean Witter Reynolds Inc. ("DWR").
Both Demeter and DWR are wholly owned subsidiaries of Morgan
Stanley, Dean Witter, Discover & Co. ("MSDWD").
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
<PAGE>
DEAN WITTER SPECTRUM STRATEGIC L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Indosuez. Following the sale, Carr became the counterparty on
the Partnership's foreign currency trades. However, during a
transition period of about four months, DWR will continue to
perform certain services relating to the Partnership's futures
trading including clearance. After such transition period, DWR
will continue to serve as a non-clearing commodity broker for the
Partnership with Carr providing all clearing services for
Partnership transactions.
2. Summary of Significant Accounting Policies
Effective August 1, 1997, the flat-rate brokerage fee was reduced
from 8.25% per annum to 7.65% per annum.
3. Related Party Transactions
The Partnership's cash is on deposit with DWR and Carr in
commodity trading accounts to meet margin requirements as needed.
DWR pays interest on these funds based on prevailing U.S.
Treasury Bill rates. Brokerage expenses incurred by the
Partnership are paid to DWR.
4. 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
<PAGE>
DEAN WITTER SPECTRUM STRATEGIC L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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
September 30, 1997 and December 31, 1996, open contracts were:
Contract or Notional Amount
September 30, 1997 December 31,
1996 $ $
Exchange-Traded Contracts
Financial Futures:
Commitments to Purchase 4,014,000 15,204,000
Commitments to Sell 2,832,000 28,092,000
Options Written - 5,212,000
Commodity Futures:
Commitments to Purchase 53,340,000 36,735,000
Commitments to Sell 7,737,000 16,911,000
Options Written 3,969,000 2,126,000
Foreign Futures:
Commitments to Purchase 71,635,000 37,389,000
Commitments to Sell 49,806,000 10,787,000
Options Written 507,000 -
Off-Exchange-Traded
Forward Currency Contracts
Commitments to Purchase 8,177 1,157,000
Commitments to Sell 134,000 1,121,000
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.
<PAGE>
DEAN WITTER SPECTRUM STRATEGIC L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 $857,560 and
$140,355 at September 30, 1997 and December 31, 1996,
respectively. Of the $857,560 net unrealized gain on open
contracts at September 30, 1997, $870,697 related to exchange-
traded futures contracts and $(13,137) 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 exchange-traded futures contracts and $162 related to
off-exchange-traded forward currency contracts.
Exchange-traded futures contracts held by the Partnership at
September 30, 1997 and December 31, 1996 mature through May 1998
and December 1997, respectively. Off-exchange-traded forward
currency contracts held by the Partnership at September 30, 1997
and December 31, 1996 mature through October 1997 and January
1997, respectively. The contract amounts in the above table
represent the Partnership's extent of involvement in the
particular class of 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.
<PAGE>
DEAN WITTER SPECTRUM STRATEGIC L.P.
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
The Partnership also has credit risk because either DWR or Carr
acts as the futures commission merchant or the 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 $58,391,997 and $46,138,105 at September 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 Carr, the sole
counterparty on all such contracts, to perform. Carr's parent,
Credit Agricole Indosuez, has guaranteed Carr's obligations to
the Partnership.
<PAGE>
DEAN WITTER SPECTRUM STRATEGIC L.P.
NOTES TO FINANCIAL STATEMENTS - (CONCLUDED)
For the nine months ended September 30, 1997 and the year ended
December 31, 1996, the average fair value of financial
instruments held for trading purposes was as follows:
September 30, 1997
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 17,830,000 76,569,000
Options on Financial Futures 16,239,000 639,000
Commodity Futures 92,088,000 27,091,000
Options on Commodity Futures 34,210,000 37,432,000
Foreign Futures 81,900,000 33,451,000
Options on Foreign Futures 5,616,000 575,000
Off-Exchange-Traded
Currency Contracts 584,000 1,124,000
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
<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 Carr, and are used by the
Partnership as margin to engage in futures interest trading. DWR
and Carr hold 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 and Carr 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 Nine Months Ended September 30, 1997
For the quarter ended September 30, 1997, the Partnership's total
trading losses net of interest income were $601,515. During the
third quarter, the Partnership posted a decrease in Net Asset
<PAGE>
Value per Unit. Losses were recorded during September from short
positions in S&P 500 Index futures as domestic equity prices
moved higher. Additional losses were recorded during August from
long positions in U.S. and European financial futures as prices
in these markets declined. Smaller losses were recorded from
short-term price volatility in agricultural futures during July
and September, as well as in copper futures during August and
July. These losses were partially offset by gains in currencies
as short positions in the German mark profited from a sharp
decline in value relative to the U.S. dollar during July.
Additional gains recorded during August from short positions in
heating oil futures and long positions in cocoa futures also
helped to mitigate overall Partnership losses during the quarter.
Total expenses for the quarter were $1,921,201, resulting in a
net loss of $2,522,716. The value of an individual Unit in the
Partnership decreased from $11.50 at June 30, 1997 to $11.06 at
September 30, 1997.
For the nine months ended September 30, 1997, the Partnership's
total trading revenues including interest income were $6,144,612.
During the first nine months of the year, the Partnership posted
an increase in Net Asset Value per Unit. The most significant
profits were recorded in currencies as short German mark
positions profited from a downward move relative to the U.S.
dollar during July. Currency gains were also recorded from
transactions involving the Japanese yen during the first half of
the year. Additional gains were recorded in soft commodities
<PAGE>
from long cocoa futures positions as cocoa prices moved higher
during March, May, June and August. Smaller profits were
recorded from trading energy futures, particularly crude and
heating oil futures, during the first half of the year and from
long zinc and copper futures during January, February and May.
These gains were partially offset by losses recorded from trading
in global interest rate futures during January, April, June and
August. Smaller losses from trading S&P 500 Index futures during
the second and third quarter also offset a portion of overall
Partnership gains for the first nine months of the year. Total
expenses for the period were $5,365,621 resulting in net income
of $778,991. The value of an individual Unit in the Partnership
increased from $10.67 at December 31, 1996 to $11.06 at September
30, 1997.
For the Quarter and Nine Months Ended September 30, 1996
For the quarter ended September 30, 1996, the Partnership's total
trading revenues including interest income were $1,911,455.
During the third quarter, the Partnership posted an increase in
Net Asset Value per Unit. The most significant gains were
recorded in the financial futures markets from long Japanese,
European and Australian bond futures positions as global interest
rate futures prices moved steadily higher between July and
September. Smaller gains were recorded from long S&P 500 Index
futures positions as U.S. stock prices moved sharply higher in
early September. Additional gains were recorded in the currency
markets during September from newly established short positions
in
<PAGE>
the Japanese yen, German mark and Swiss franc as the value of
these currencies moved lower late in the month. In the energy
markets, gains recorded from long crude oil futures during
September more than offset losses experienced from trading
natural gas futures during the quarter. A portion of the
Partnership's overall gains for the quarter was offset by losses
in the agricultural markets. The most significant of these
losses were recorded from trading corn, wheat and soybean
products during July and September. Smaller losses were recorded
in soft commodities and metals as a result of choppy price
movement. Total expenses
for the quarter were $1,369,684, resulting in net income of
$541,771. The value of an individual Unit in the Partnership
increased from $10.18 at June 30, 1996 to $10.29 at September 30,
1996.
For the nine months ended September 30, 1996, the Partnership's
total trading revenues including interest income were $1,664,885.
During the first nine months of the year, the Partnership posted
a decrease in Net Asset Value per Unit. Trading gains during the
first nine months of the year were offset by brokerage
commissions resulting in trading net losses. The most
significant of these losses were recorded in the metals markets
as a result of trendless price movement in most base metals
during the second and third quarters of the year. In soft
commodities, losses were recorded as a result of choppy price
movement in coffee, cocoa and cotton futures during a majority of
the first nine months of the year.
<PAGE>
Additional losses were recorded in the energy markets as losses
in natural gas futures experienced during April, May and the
third quarter more than offset gains from long crude oil futures
positions during September. Smaller losses were recorded in the
financial futures markets as gains in Japanese and French bond
futures, and global stock index futures during the third quarter,
offset losses experienced in U.S. and most European interest rate
futures during the first half of the year. A portion of the
Partnership's overall losses was offset by gains in the currency
markets from short Swiss franc, Japanese yen and German mark
positions as the value of these currencies moved lower relative
to the U.S. dollar during the second and third quarters of the
year. Additional currency gains were recorded from transactions
involving the British pound. Gains were also recorded in the
agricultural markets from long corn futures positions, as prices
increased during the first quarter, and from long wheat futures
positions, as prices increased early in the second quarter.
Total expenses for the period were $4,075,087, resulting in a net
loss of $2,410,202. The value of an individual Unit in the
Partnership decreased from $11.06 at December 31, 1995 to $10.29
at September 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 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
Dean Witter Spectrum Strategic L.P. ("Spectrum Strategic"); Dean
Witter Spectrum Technical L.P. ("Spectrum Technical"); and Dean
Witter Spectrum Balanced L.P. ("Spectrum Balanced" and,
collectively with Spectrum Strategic and Spectrum Technical, the
"Partnerships") collectively registered 10,000,000 Units of
Limited Partnership Interest ("Units") pursuant to a Registration
Statement on Form S-1, which became effective on September 15,
1994 (the "Registration Statement") (SEC File Number 33-80146).
While such Units were not allocated among the Partnerships at
that time, they were subsequently allocated for convenience
purposes as follows: Spectrum Strategic 4,000,000, Spectrum
Technical 4,000,000 and Spectrum Balanced 2,000,000. The
Partnerships registered an additional 20,000,000 Units pursuant
to a new Registration Statement on Form S-1, which become
effective on January 31, 1996 (SEC File Number 333-00494); such
units were allocated among the Partnerships as follows: Spectrum
Strategic 6,000,000, Spectrum Technical 9,000,000 and Spectrum
Balanced 5,000,000. The Partnerships registered an additional
8,500,000
<PAGE>
Units pursuant to another Registration Statement on Form S-1,
which become effective on April 30, 1996 (SEC File Number 333-
3222); such Units were allocated among the Partnerships as
follows: Spectrum Strategic 2,500,000, Spectrum Technical
5,000,000 and Spectrum Balanced 1,000,000. The managing
underwriter for the Partnerships is DWR.
The "Initial Offering" by the Partnerships, when Units were sold
for $10 each, commenced on September 15, 1994 and closed on
November 2, 1994; a "Continuing Offering" began thereafter,
during which Units are being sold at monthly closings as of the
last day of each month at a price equal to 100% of the Net Asset
Value of a Unit as of the date of such monthly closing.
Through September 30, 1997, 6,441,211.505 Units were sold,
leaving 6,058,788.495 Units unsold as of October 1, 1997. The
aggregate offering amount registered was $135,880,000, based upon
the offering prices of $10 per Unit for the 4,000,000 Units
registered on September 15, 1994; $11.73 per Unit for the
6,000,000 Units registered on January 31, 1996; and $10.20 per
Unit for the 2,500,000 Units registered on April 30, 1996. The
aggregate price of the Units sold through September 30, 1997 is
$68,310,705.
Since DWR has paid all expenses of the Initial and Continuing
Offerings, and no other expenses are chargeable against proceeds,
100% of the proceeds of the offering have been applied to the
working capital of the Partnership for use in accordance with the
<PAGE>
"Use of Proceeds" section of the Prospectus included as part of
each Registration Statement.
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.
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)
November 12, 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.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from Dean
Witter Spectrum Strategic L.P. and is qualified in its entirety by
reference to such financial instruments.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-END> SEP-30-1997
<CASH> 57,542,966
<SECURITIES> 0
<RECEIVABLES> 2,267,833<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 61,052,199<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 61,052,199<F3>
<SALES> 0
<TOTAL-REVENUES> 6,144,612<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 5,365,621
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 778,991
<INCOME-TAX> 0
<INCOME-CONTINUING> 778,991
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 778,991
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Receivables include subscriptions receivable of $2,066,257 and interest
receivable of $201,576.
<F2>In addition to cash and receivables, total assets include net unrealized
gain on open contracts of $857,560 and net option premiums of $383,840.
<F3>Liabilities include redemptions payable of $493,787, accrued brokerage
commissions of $396,036, and accrued management fee of $207,078.
<F4>Total revenue includes realized trading revenue of $3.748,975, net
change in unrealized of $717,205 and interest income of $1,678,432.
</FN>
</TABLE>
