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 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 13,111,881
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 11,476,983
Net increase in cash 6,652,587 9,278,366
Balance at beginning of period 45,997,912 29,593,927
Balance at end of period 52,650,499 38,872,293
<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 exchange-
traded 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.
<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.
<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 entirey by
references to such financial instruments.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> JUN-30-1997
<CASH> 52,650,499
<SECURITIES> 0
<RECEIVABLES> 1,932,569<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 58,286,569<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 58,286,569<F3>
<SALES> 0
<TOTAL-REVENUES> 6,746,127<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,444,420
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 3,301,707
<INCOME-TAX> 0
<INCOME-CONTINUING> 3,301,707
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,301,707
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Receivables include subscriptions receivable of $1,735,514 and interest
receivable of $197,055.
<F2>In addition to cash and receivables, total assets include net unrealized
gain on open contracts of $3,686,971 and net option premiums of $16,530.
<F3>Liabilities include redemptions payable of $1,030,316, accrued brokerage
commissions of $391,144, and accrued management fees of $189,646.
<F4>Total revenue includes realized trading revenue of $2,149,992, net
change in unrealized of $3,546,616 and interest income of $1,049,519.
</FN>
</TABLE>
