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 March 31, 1998 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
March 31, 1998
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition March 31, 1998
(Unaudited) and December 31, 1997.....................2
Statements of Operations for the Quarters Ended
March 31, 1998 and 1997 (Unaudited)...................3
Statements of Changes in Partners' Capital for the
Quarters Ended March 31, 1998 and 1997 (Unaudited)....4
Statements of Cash Flows for the Quarters Ended
March 31, 1998 and 1997 (Unaudited)...................5
Notes to Financial Statements (Unaudited)..........6-11
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations..12-15
Part II. OTHER INFORMATION
Item 1. Legal Proceedings..............................16-17
Item 2. Changes in Securities and Use of Proceeds......17-19
Item 5. Other Information................................ 19
Item 6. Exhibits and Reports on Form 8-K..................20
<PAGE>
</TABLE>
<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DEAN WITTER SPECTRUM STRATEGIC L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
March 31, December 31,
1998 1997
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in Commodity futures trading accounts:
Cash 60,212,474 57,104,003
Net unrealized gain on open contracts 1,071,318 2,527,613
Net option premiums 393,170 322,123
Total Trading Equity 61,676,962 59,953,739
Subscriptions receivable 2,038,288 833,259
Interest receivable (DWR) 203,088 223,045
Total Assets 63,918,338 61,010,043
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 757,392 1,366,164
Accrued brokerage fees (DWR) 389,370 360,041
Accrued management fees 203,592 188,257
Total Liabilities 1,350,354 1,914,462
Partners' Capital
Limited Partners (5,659,764.676 and
5,460,628.572 Units, respectively) 61,926,595 58,482,349
General Partner (58,619.576 and
57,258.883 Units, respectively) 641,389 613,232
Total Partners' Capital 62,567,984 59,095,581
Total Liabilities and Partners' Capital 63,918,338 61,
010,043
NET ASSET VALUE PER UNIT 10.94 10.71
<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 March 31,
1998 1997
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 3,873,419 3,635,449
Net change in unrealized (1,456,295)
5,286,443
Total Trading Results 2,417,124 8,921,892
Interest Income (DWR) 620,104 483,943
Total Revenues 3,037,228 9,405,835
EXPENSES
Brokerage fees (DWR) 1,167,135 966,423
Management fees 610,266 468,569
Incentive fees - 299,585
Total Expenses 1,777,401 1,734,577
NET INCOME 1,259,827 7,671,258
NET INCOME ALLOCATION
Limited Partner 1,246,670 7,591,128
General Partner 13,157
80,130
NET INCOME PER UNIT
Limited Partners
.23 1.79
General Partner
.23 1.79
<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 March 31, 1998 and 1997
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C> <C>
<C>
Partners' Capital,
December 31, 1996 4,229,101.851 $44,645,423 $473,454
$45,118,877
Offering of Units 467,490.212 5,485,719 45,000
5,530,719
Net Income - 7,591,128 80,130
7,671,258
Redemptions (189,043.914) (2,160,801) -
(2,160,801)
Partners' Capital,
March 31, 1997 4,507,548.149 $55,561,469 $598,584
$56,160,053
Partners Capital,
December 31, 19975,517,887.455 $58,482,349 $613,232
$59,095,581
Offering of Units 439,810.729 4,834,328 15,000
4,849,328
Net Income - 1,246,670 13,157
1,259,827
Redemptions (239,313.932) (2,636,752) -
(2,636,752)
Partners' Capital,
March 31, 1998 5,718,384.252 $61,926,595 $641,389
$62,567,984
<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 Quarters Ended March 31,
1998 1997
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income 1,259,827 7
,671,258
Noncash item included in net income:
Net change in unrealized 1,456,295 (
5,286,443)
(Increase) decrease in operating assets:
Net option premiums (71,047) (41,102)
Interest receivable (DWR) 19,957 (13,773)
Increase in operating liabilities:
Accrued brokerage fees (DWR) 29,329 21,774
Accrued management fees 15,335
10,556
Incentive fees payable -
299,585
Net cash provided by operating activities 2,709,696 2
,661,855
CASH FLOWS FROM FINANCING ACTIVITIES
Offering of Units 4,849,328 5
,530,719
Increase in subscriptions receivable(1,205,029) (
2,021,152)
Decrease in redemptions payable (608,772) (
1,190,208)
Redemptions of units (2,636,752) (
2,160,801)
Net cash provided by financing activities 398,775
158,558
Net increase in cash 3,108,471 2
,820,413
Balance at beginning of period 57,104,003 4
5,997,912
Balance at end of period 60,212,474 4
8,818,325
<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 of Dean Witter Spectrum
Strategic L.P. (the "Partnership"). The financial statements and
condensed notes herein should be read in conjunction with the
Partnership's December 31, 1997 Annual Report on Form 10-K.
1. Organization
Dean Witter Spectrum Strategic L.P. is a limited partnership
organized to engage in the speculative trading of futures,
forward and options contracts on commodities and commodity
related interests, including foreign currencies, financial
instruments, and physical commodities. The Partnership is one of
the Dean Witter Spectrum Funds, comprised of Dean Witter Spectrum
Balanced L.P., Dean Witter Spectrum Strategic L.P., and Dean
Witter Spectrum Technical L.P. The general partner for the
partnership is Demeter Management Corporation ("Demeter"). The
non-clearing commodity broker is Dean Witter Reynolds Inc.
("DWR"), with an unaffiliated broker, Carr Futures, Inc.
("Carr"), providing clearing and execution services. Both
Demeter and DWR are wholly-owned subsidiaries of Morgan Stanley
Dean Witter & Co. ("MSDW"). Demeter has retained Blenheim
Investments, Inc., A. Gary Shilling
<PAGE>
DEAN WITTER SPECTRUM STRATEGIC L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
& Company, Inc. ("Shilling"), and Willowbridge Associates Inc. as
the trading advisors for the Partnership.
2. 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 current 13-week U.S.
Treasury Bill rates. Brokerage expenses incurred by the
Partnership are paid to DWR.
3. Financial Instruments
The Partnership trades futures, options and forward contracts in
interest rates, stock indices, commodities and currencies.
Futures 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 March 31, 1998 and December 31, 1997, open
contracts were:
<PAGE>
DEAN WITTER SPECTRUM STRATEGIC L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Contract or Notional Amount
March 31, 1998 December 31, 1997
$ $
Exchange-Traded Contracts
Financial Futures:
Commitments to Purchase 27,877,000 87,114,000
Commitments to Sell 86,021,000 69,871,000
Options Written 4,997,000 -
Commodity Futures:
Commitments to Purchase 50,252,000 32,034,000
Commitments to Sell 7,765,000 24,672,000
Options Written 4,525,000 -
Foreign Futures:
Commitments to Purchase 254,030,000 119,070,000
Commitments to Sell 11,011,000 5,387,000
Off-Exchange-Traded
Forward Currency Contracts
Commitments to Purchase - 748,000
Commitments to Sell 3,000 748,000
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.
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 $1,071,318 and
$2,527,613 at March 31, 1998 and December 31, 1997, respectively.
Of the $1,071,318 net unrealized gain on open contracts at March
31, 1998, $1,071,321 related to exchange-traded futures contracts
and $(3) related to off-exchange-traded forward currency
contracts.
<PAGE>
DEAN WITTER SPECTRUM STRATEGIC L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Of the $2,527,613 net unrealized gain on open contracts at
December 31, 1997, all was related to exchange-traded futures
contracts.
Exchange-traded futures contracts held by the Partnership at
March 31, 1998 and December 31, 1997 mature through June 1999 and
December 1998, respectively. Off-exchange-traded forward
currency contracts held by the Partnership at March 31, 1998 and
December 31, 1997 mature through April 1998 and January 1998,
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.
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
and Carr, as the futures commission merchants for all of the
Partnership's exchange-traded futures and option contracts, are
required pursuant to regulations of the Commodity Futures Trading
<PAGE>
DEAN WITTER SPECTRUM STRATEGIC L.P.
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
Commission ("CFTC") to segregate from their own assets and for
the
sole benefit of their commodity customers, all funds held by them
with respect to exchange-traded futures and options contracts
including an amount equal to the net unrealized gain on all open
futures and option contracts, which funds totaled $61,283,795 and
$59,631,616 at March 31, 1998 and December 31, 1997,
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.
For the quarter ended March 31, 1998 and December 31, 1997, the
average fair value of financial instruments held for trading
purposes was as follows:
March 31, 1998
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 72,594,000 55,886,000
Options on Financial Futures 34,847,000 3,529,000
Commodity Futures 40,719,000 12,113,000
Options on Commodity Futures 4,075,000 3,167,000
Foreign Futures 196,160,000 6,653,000
Off-Exchange-Traded
Currency Contracts 210,000 271,000
<PAGE>
DEAN WITTER SPECTRUM STRATEGIC L.P.
NOTES TO FINANCIAL STATEMENTS - (CONCLUDED)
December 31, 1997
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 30,123,000 70,617,000
Options on Financial Futures 18,562,000 1,261,000
Commodity Futures 80,636,000 24,285,000
Options on Commodity Futures 27,328,000 28,813,000
Foreign Futures 83,507,000 29,983,000
Options on Foreign Futures 4,320,000 479,000
Off-Exchange-Traded
Currency Contracts 507,000 922,000
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity - The Partnership's assets are on deposit in separate
commodity interest trading accounts with DWR and Carr, the
commodity brokers, and are used by the Partnership as margin to
engage in commodity futures, forward contracts and other
commodity 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 commodity futures contracts, forward contracts, and
other commodity interests, it is expected that the Partnership
will continue to own such liquid assets for margin purposes.
The Partnership's investment in commodity futures and forward
contracts and other commodity interests may be illiquid. If the
price for a futures contract for a particular commodity has
increased or decreased by an amount equal to the "daily limit",
positions in the commodity can neither be taken nor liquidated
unless traders are willing to effect trades at or within the
limit. Commodity futures 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 commodity futures positions.
There is no limitation on daily price moves in trading forward
contracts on foreign currencies. The markets for some world
<PAGE>
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, exchanges and
sales of additional Units of Limited Partnership in the future
will affect the amount of funds available for investments 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 Ended March 31, 1998
For the quarter ended March 31, 1998, the Partnership's total
trading revenues including interest income were $3,037,228.
During the first quarter, the Partnership recorded a gain in Net
Asset Value per Unit. The most significant gains were recorded
from long European bond futures positions as prices in these
markets moved higher during a majority of the quarter.
Additional gains were recorded during March from long crude oil
futures positions as oil prices spiked higher late in the month
on reports of a possible reduction in global output. In metals,
gains were recorded during late January and early February from
long silver futures positions as prices rallied sharply higher.
Smaller
<PAGE>
profits were recorded during February from trading soybean and
soybean product futures. These gains were partially offset by
losses experienced from long sugar futures positions as sugar
prices declined throughout the quarter. Smaller currency losses
were recorded during February and March from transactions
involving the German mark as its value moved without consistent
direction. Total expenses for the period were $1,777,401,
resulting in net income of $1,259,827. The value of an
individual Unit in the Partnership increased from $10.71 at
December 31, 1997 to $10.94 at March 31, 1998.
For the Quarter Ended March 31, 1997
For the quarter ended March 31, 1997, the Partnership's total
trading revenues including interest income were $9,405,835.
During the first quarter, the Partnership posted an increase in
Net Asset Value per Unit. The most significant gains were
recorded during February in the energy markets from short crude,
heating and gas oil futures positions as oil prices moved lower.
Additional gains were recorded from long positions in silver and
base metals futures as prices increased. Trading gains were also
recorded in the agricultural markets from long soybean futures
positions as prices moved higher in February and March. In the
currency markets, gains were recorded from short positions in the
Swiss franc and Japanese yen as the value of the U.S. dollar
strengthened versus these currencies during January and February.
Additional gains were recorded during March from short positions
in U.S. interest rate and S&P 500 Index futures as prices in
these markets moved lower. A small portion of the overall gains
for the
<PAGE>
quarter was offset by losses in global interest rate futures as
prices moved in a choppy pattern during a majority of the
quarter. Total expenses for the period were $1,734,577, resulting
in net income of $7,671,258. The value of an individual Unit in
the Partnership increased from $10.67 at December 31, 1996 to
$12.46 at March 1997.
<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., MSDW (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, alleging, among other things,
that the defendants committed fraud, deceit, negligent
misrepresentation, various violations of the California
Corporations Code, intentional and negligent breach of fiduciary
duty, fraudulent and unfair business practices, unjust
enrichment, and conversion in the sale and operation of the
various limited partnership commodity pools. 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. A
consolidated and amended complaint in the action pending in the
Supreme Court of the State of New York was filed on August 13,
1997, alleging that the defendants committed fraud, breach of
<PAGE>
fiduciary duty, and negligent misrepresentation in the sale and
operation of the various limited partnership commodity pools. On
December 16, 1997, upon motion of the plaintiffs, the action
pending in the Superior Court of the State of Delaware was
voluntarily dismissed without prejudice. 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
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:
<PAGE>
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 became 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 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 March 31, 1998, 7,193,802.679 Units were sold, leaving
5,306,197.321 Units unsold as of April 1, 1998. 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
<PAGE>
2,500,000 Units registered on April 30, 1996. The aggregate price
of the Units sold through March 31, 1998 is $76,398,102.
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
"Use of Proceeds" section of the Prospectus included as part of
each Registration Statement.
Item 5. OTHER INFORMATION
On March 12, 1998, the Spectrum Funds filed Post Effective
Amendment No. 4 to Registration Statement on Form S-1
(Registration No. 333-3222) with the Securities and Exchange
Commission, in order to update and make certain changes. These
changes include, among other things, a reduction in the brokerage
fees payable to DWR from 7.65% to 7.25% annually of the
Partnership's Net Assets.
Effective April 30, 1998, Shilling was terminated as an advisor
to the Partnership. The assets of the Partnership previously
allocated to Shilling will be allocated to Stonebrook Capital
Management Inc. effective June 1, 1998.
<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)
May 11, 1998 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> 3-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 60,212,474
<SECURITIES> 0
<RECEIVABLES> 2,241,376<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 63,918,338<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 63,918,338<F3>
<SALES> 0
<TOTAL-REVENUES> 3,037,228<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,777,401
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,259,827
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,259,827
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,259,827
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Receivables include subscription receivable of $2,038,288 and interest
receivable of $203,088.
<F2>In addition to cash and receivables, total assets include net unrealized
gain on open contracts of $1,071,318 and net option premiums of $393,170.
<F3>Liabilities include redemptions payable of $757,392, accrued brokerage
fees of $389,370 adn accrued management fees of $203,592.
<F4>Total revenue includes realized trading revenue of $3,873,419, net
change in unrealized of $(1,456,295) and interest income of $620,104.
</FN>
</TABLE>
