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 quarterly period ended June 30, 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. 0-26280
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, 1998
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition June 30, 1998
(Unaudited) and December 31, 1997....................2
Statements of Operations for the Quarters Ended
June 30, 1998 and 1997 (Unaudited)...................3
Statements of Operations for the Six Months Ended
June 30, 1998 and 1997 (Unaudited)...................4
Statements of Changes in Partners' Capital for the
Six Months Ended June 30, 1998 and 1997 (Unaudited)..5
Statements of Cash Flows for the Six Months Ended
June 30, 1998 and 1997 (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
Item 2. Changes in Securities and Use of Proceeds.....19-20
Item 6. Exhibits and Reports on Form 8-K.................21
</TABLE>
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
DEAN WITTER SPECTRUM STRATEGIC L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
June 30, December 31,
1998 1997
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in Commodity futures trading accounts:
Cash 52,887,085 57,104,003
Net unrealized gain on open contracts302,846 2,527,613
Net option premiums 64,066 322,123
Total Trading Equity 53,253,997 59,953,739
Subscriptions receivable 1,309,933 833,259
Interest receivable (DWR) 187,769 223,045
Total Assets 54,751,699 61,010,043
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 1,264,516 1,366,164
Accrued brokerage fees (DWR) 322,564 360,041
Accrued management fees 172,856 188,257
Total Liabilities 1,759,936 1,914,462
Partners' Capital
Limited Partners (5,870,740.633 and
5,460,628.572 Units, respectively) 52,434,969 58,48
2,349
General Partner (62,339.891 and
57,258.883 Units, respectively) 556,794 613,232
Total Partners' Capital 52,991,763 59,095,581
Total Liabilities and Partners' Capital 54,751,699 61,010,043
NET ASSET VALUE PER UNIT 8.93 10.71
<FN>
The accompanying notes 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,
1998 1997
$ $
REVENUES
<S> <C> <C>
Trading loss:
Realized (9,830,185) (1,485,457)
Net change in unrealized (768,472) (1,739,827)
Total Trading Results (10,598,657) (3,225,284)
Interest Income (DWR) 576,426 565,576
Total Revenues (10,022,231) (2,659,708)
EXPENSES
Brokerage fees (DWR) 1,044,358 1,151,526
Management fees 550,265 558,317
Total Expenses 1,594,623 1,709,843
NET LOSS (11,616,854) (4,369,551)
NET LOSS ALLOCATION
Limited Partners
(11,497,259) (4,313,037)
General Partner
(119,595) (56,514)
NET LOSS PER UNIT
Limited Partners
(2.01)
(.96)
General Partner
(2.01)
(.96)
<FN>
The accompanying notes 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,
1998 1997
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized (5,956,766) 2,149,992
Net change in unrealized (2,224,767) 3,546,616
Total Trading Results (8,181,533) 5,696,608
Interest Income (DWR) 1,196,530 1,049,519
Total Revenues (6,985,003) 6,746,127
EXPENSES
Brokerage fees (DWR) 2,211,493 2,117,950
Management fees 1,160,531 1,026,885
Incentive fees - 299,585
Total Expenses 3,372,024 3,444,420
NET INCOME (LOSS) (10,357,027) 3,301,707
NET INCOME (LOSS) ALLOCATION
Limited Partners
(10,250,589) 3,278,091
General Partner
(106,438) 23,616
NET INCOME (LOSS) PER UNIT
Limited Partners
(1.78) .83
General Partner
(1.78) .83
<FN>
The accompanying notes 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 Six Months Ended June 30, 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
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
Partners' Capital,
December 31, 1997 5,517,887.455 $58,482,349 $613,232
$59,095,581
Continuous Offering 955,534.433 9,595,412 50,000
9,645,412
Net Loss - (10,250,589) (106,438)
(10,357,027)
Redemptions (540,341.364) (5,392,203) -
(5,392,203)
Partners' Capital,
June 30, 1998 5,933,080.524 $52,434,969 $556,794
$52,991,763
<FN>
The accompanying notes 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,
1998 1997
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income (loss) (10,357,027) 3
,301,707
Noncash item included in net income (loss):
Net change in unrealized 2,224,767 (
3,546,616)
(Increase) decrease in operating assets:
Net option premiums 258,057 (61,855)
Interest receivable (DWR) 35,276 (33,412)
Increase (decrease) in operating liabilities:
Accrued brokerage fees (DWR) (37,477) 67,702
Accrued management fees (15,401)
32,825
Net cash used for operating activities (7,891,805) (
239,649)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in subscriptions receivable(476,674) (
902,423)
Continuous offering 9,645,412 1
2,112,217
Decrease in redemptions payable (101,648) (
460,220)
Redemptions of units (5,392,203) (
3,857,338)
Net cash provided by financing activities 3,674,887 6
,892,236
Net increase (decrease) in cash (4,216,918) 6
,652,587
Balance at beginning of period 57,104,003 4
5,997,912
Balance at end of period 52,887,085 5
2,650,499
<FN>
The accompanying notes 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 (collectively, "futures
interests"). The Partnership is one of the Dean Witter Spectrum
Series of Funds, comprised of the Partnership, Dean Witter
Spectrum Global Balanced L.P., Dean Witter Spectrum Technical
L.P. and Dean Witter Spectrum Select L.P. The general partner is
Demeter Management Corporation ("Demeter"). The non-clearing
commodity broker is Dean Witter Reynolds Inc. ("DWR"), with an
unaffiliated clearing commodity 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., Willowbridge Associates Inc. and Stonebrook
Capital Management, Inc. ("Stonebrook") as the trading advisors
for the Partnership.
<PAGE>
DEAN WITTER SPECTRUM STRATEGIC L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Effective April 30, 1998, A. Gary Shilling & Co., Inc.
("Shilling") was removed as a trading advisor to the Partnership.
All assets formerly managed by Shilling were allocated to
Stonebrook on June 1, 1998.
2. Summary of Significant Accounting Policies
Effective June 1, 1998, brokerage fees were reduced to 1/12 of
7.25% of Net Assets as of the first day of the month.
Management fees are accrued at a rate of 1/12 of 3% of the Net
Assets allocated to Stonebrook on the first day of each month.
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 current 13-week U.S.
Treasury bill rates. Brokerage expenses incurred by the
Partnership are paid to DWR.
4. Financial Instruments
The Partnership trades futures, options and forward contracts in
interest rates, stock indices, commodities and currencies.
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
<PAGE>
DEAN WITTER SPECTRUM STRATEGIC L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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, 1998 and
December 31, 1997, open contracts were:
Contract or Notional Amount
June 30, 1998 December 31, 1997
$ $
Exchange-Traded Contracts
Financial Futures:
Commitments to Purchase 133,085,000 87,114,000
Commitments to Sell 41,532,000 69,871,000
Commodity Futures:
Commitments to Purchase 51,929,000 32,034,000
Commitments to Sell 15,549,000 24,672,000
Options Written 1,153,000 -
Foreign Futures:
Commitments to Purchase 166,305,000 119,070,000
Commitments to Sell 35,948,000 5,387,000
Off-Exchange-Traded
Forward Currency Contracts
Commitments to Purchase - 748,000
Commitments to Sell 15,000 748,000
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.
<PAGE>
DEAN WITTER SPECTRUM STRATEGIC L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The net unrealized gains on open contracts are reported as a
component of "Equity in Commodity futures trading accounts" on
the Statements of Financial Condition totaled $302,846 and
$2,527,613 at June 30, 1998 and December 31, 1997, respectively.
Of the $302,846 net unrealized gain on open contracts at June 30,
1998, $302,873 related to exchange-traded futures and options
contracts and $(27) related to off-exchange-traded forward
currency contracts.
The $2,527,613 net unrealized gain on open contracts at December
31, 1997 all related to exchange-traded futures contracts.
Exchange-traded futures contracts held by the Partnership at June
30, 1998 and December 31, 1997 mature through June 1999 and
December 1998, respectively. Off-exchange-traded forward
currency contracts held by the Partnership at June 30, 1998 and
December 31, 1997 mature through July 1998 and January 1998,
respectively.
The contract amounts in the above table represent the
Partnership's extent of involvement in a particular class of
financial instrument, but not the credit risk associated with
counterparty non-performance. 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 DWR and Carr act as
the futures commission merchants or the counterparties, with
respect to most of the Partnership's assets. Exchange-traded
futures and futures styled options contracts are marked to market
on a daily basis, with variations in value settled on a daily
basis. Each of DWR and Carr, as a futures commission merchant
for the Partnership's exchange-traded futures and futures styled
options contracts, are required, pursuant to regulations of the
Commodity Futures Trading 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 futures styled options contracts, including an amount
equal to the net unrealized gain on all open futures and futures
styled options contracts, which funds, in the aggregate, totaled
$53,189,958 and $59,631,616 at June 30, 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 to the Partnership, payment of the net liquidating
value of the transactions in the Partnership's account with Carr
(including foreign currency contracts).
<PAGE>
DEAN WITTER SPECTRUM STRATEGIC L.P.
NOTES TO FINANCIAL STATEMENTS - (CONCLUDED)
For the six months ended June 30, 1998 and the year ended
December 31, 1997, the average fair value of financial
instruments held for trading purposes was as follows:
June 30, 1998
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 80,756,000 56,184,000
Options on Financial Futures 64,147,000 2,017,000
Commodity Futures 41,973,000 13,738,000
Options on Commodity Futures 4,332,000 3,124,000
Foreign Futures 207,445,000 17,506,000
Options on Foreign Futures 1,351,000 -
Off-Exchange-Traded
Currency Contracts 120,000 157,000
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 deposited with DWR, as
non-clearing broker and with Carr, as clearing broker in separate
futures interest trading accounts, and are used by the
Partnership as margin to engage in futures interest trading.
Such assets are held in either non-interest bearing bank accounts
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 be
illiquid. If the price of 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 and
result in restrictions on redemptions.
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
<PAGE>
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 interest in the
future will affect the amount of funds available for investment
in futures interests in subsequent periods. Since they are at
the discretion of the Limited Partners, it is not possible to
estimate the amount, and therefore, the impact of future
redemptions, exchanges or sales of additional Units.
Results of Operations
For the Quarter and Six Months Ended June 30, 1998
For the quarter ended June 30, 1998, the Partnership recorded
total trading losses net of interest income of $10,022,231 and
posted a decrease in Net Asset Value per Unit. The most
significant losses were recorded during April due primarily to a
spike higher in the value of the Japanese yen relative to the
U.S. dollar amid optimism regarding the Japanese economy. As a
result, losses were recorded from short Japanese yen positions
established during April. In metals, losses were experienced
from long silver futures positions as silver prices declined
during May. In financial futures, losses were recorded from
trading British
<PAGE>
interest rate futures during June as prices moved in a choppy
pattern. In the commodities markets, losses were recorded from
long crude oil futures positions as oil prices moved lower
throughout a majority of the quarter. Smaller losses were
recorded from long positions in lumber futures during May and
from long soybean meal futures during April. A portion of the
Partnership's overall losses was offset by gains recorded from
long positions in German and French bond futures as prices in
these markets moved higher throughout a majority of the quarter.
Smaller gains recorded during April and early May from long cocoa
futures positions also helped to mitigate these losses. Total
expenses for the three months ended June 30, 1998 were
$1,594,623, resulting in a net loss of $11,616,854. The value of
an individual Unit in the Partnership decreased from $10.94 at
March 31, 1998 to $8.93 at June 30, 1998.
For the six months ended June 30, 1998, the Partnership recorded
total trading losses net of interest income of $6,985,003 and
posted a decrease in Net Asset Value per Unit. The most
significant losses were recorded in currencies from transactions
involving the German mark as its value moved without consistent
direction during February and March. Losses were also recorded
from short positions in the German mark during April and May as
its value increased relative to the U.S. dollar. Additional
currency losses were experienced from short positions in the
Japanese yen as the value of the yen reversed higher during April
in reaction to a proposed economic stimulus plan for Japan.
<PAGE>
In soft commodities, losses were experienced from long sugar
futures positions as sugar prices moved lower throughout the
first quarter. Smaller losses were recorded in metals from long
silver futures positions as silver prices declined sharply during
May. A portion of these losses was offset by gains recorded from
long European bond and stock index futures positions as prices in
these markets moved higher during a majority of the first half of
the year. Additional gains were recorded in agricultural futures
from trading soybean and soybean products during February. Total
expenses for the six months ended June 30, 1998 were $3,372,024,
resulting in a net loss of $10,357,027. The value of an
individual Unit in the Partnership decreased from $10.71 at
December 31, 1997 to $8.93 at June 30, 1998.
For the Quarter and Six Months Ended June 30, 1997
For the quarter ended June 30, 1997, the Partnership recorded
total trading losses net of interest income of $2,659,708 and
posted a decrease in Net Asset 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
<PAGE>
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 three months ended June 30, 1997 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 recorded
total trading revenues including interest income of $6,746,127
and posted an increase in Net Asset Value per Unit. The most
significant gains were recorded from long cocoa futures positions
as prices moved sharply 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,
<PAGE>
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 six months
ended June 30, 1997 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.
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
Previously reported. See Form 10-Q for the quarter ended March
31, 1998.
Item 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
The Partnership, Dean Witter Spectrum Technical L.P. ("Spectrum
Technical"), and Dean Witter Spectrum Global Balanced L.P.
("Spectrum Global Balanced" and, collectively with the Partnership
and Spectrum Technical, the "Spectrum Series") 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 (SEC File Number 33-80146).
While such Units were not allocated among the Spectrum Series at
that time, they were subsequently allocated for convenience
purposes as follows: the Partnership 4,000,000, Spectrum Technical
4,000,000 and Spectrum Global Balanced 2,000,000. The Spectrum
Series collectively 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 Spectrum Series as follows: the
Partnership 6,000,000, Spectrum Technical 9,000,000 and Spectrum
Global Balanced 5,000,000. The Spectrum Series 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
Spectrum Series as follows: The Partnership 2,500,000, Spectrum
Technical 5,000,000 and Spectrum
<PAGE>
Global Balanced 1,000,000. The managing underwriter for the
Spectrum Series is DWR.
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 June 30, 1998, 7,705,806.068 Units were sold, leaving
4,794,193.932 Units unsold as of July 1, 1998. The aggregate price
of the Units sold through June 30, 1998 is $81,159,186.
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.
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
Reports on Form 8-K - No such reports have
been filed for the quarter ended June 30, 1998.
<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 12, 1998 By: /s/ Lewis A. Raibley, III
Lewis A. Raibley, III
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 statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 52,887,085
<SECURITIES> 0
<RECEIVABLES> 1,497,702<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 54,751,699<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 54,751,699<F3>
<SALES> 0
<TOTAL-REVENUES> (6,985,003)<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,372,024
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (10,357,027)
<INCOME-TAX> 0
<INCOME-CONTINUING> (10,357,027)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (10,357,027)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Receivables include subscription receivable of $1,309,933 and interest
receivable of $187,769.
<F2>In addition to cash and receivables, total assets include net unrealized
gain on open contracts of $302,846 and net option premiums of $64,066.
<F3>Liabilities include redemptions payable of $1,264,516, accrued brokerage
fees of $322,564 and accrued management fees of $172,856.
<F4>Total revenue includes realized trading revenue of $(5,956,766), net
change in unrealized of $(2,224,767) and interest income of $1,196,530.
</FN>
</TABLE>
