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 BALANCED L.P.
(Exact name of registrant as specified in its charter)
Delaware 13-3782232
(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 BALANCED 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
</TABLE>
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DEAN WITTER SPECTRUM BALANCED 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 27,285,580 24,954,956
Net unrealized gain on open contracts1,144,196 681,559
Net option premiums - (458,150)
Total Trading Equity 28,429,776 25,178,365
Subscriptions receivable 1,123,725 625,710
Interest receivable (DWR) 117,825 118,949
Total Assets 29,671,326 25,923,024
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 354,418 114,576
Accrued brokerage fees (DWR) 113,335 99,762
Accrued management fee 28,912 25,450
Incentive fee payable 28,182 -
Total Liabilities 524,847 239,788
Partners' Capital
Limited Partners (1,977,567.024 and
1,849,054.344 Units, respectively) 28,845,568 25,418,875
General Partner (20,629.587 and
19,230.497 Units, respectively) 300,911 264,361
Total Partners' Capital 29,146,479 25,683,236
Total Liabilities and Partners' Capital 29,671,326 25,9
23,024
NET ASSET VALUE PER UNIT 14.59 13.75
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM BALANCED L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Quarters Ended March 31,
1998 1997
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 1,235,926 1,041,124
Net change in unrealized 462,637 (205,045)
Total Trading Results 1,698,563 836,079
Interest Income (DWR) 343,883 249,143
Total Revenues 2,042,446 1,085,222
EXPENSES
Brokerage fees (DWR) 328,188 265,834
Management fee 83,722 60,416
Incentive fee 28,182 -
Total Expenses 440,092 326,250
NET INCOME 1,602,354 758,972
NET INCOME ALLOCATION
Limited Partners 1,585,804
750,641
General Partner 16,550
8,331
NET INCOME PER UNIT
Limited Partners .84
.46
General Partner
.84 .46
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM BALANCED 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 1,609,108.931 $18,499,873 $206,382
$18,706,255
Offering of Units 105,298.810 1,281,890 -
1,281,890
Net Income - 750,641 8,331
758,972
Redemptions (82,601.612) (1,011,219) -
(1,011,219)
Partners' Capital,
March 31, 1997 1,631,806.129 $19,521,185 $214,713
$19,735,898
Partners Capital,
December 31, 19971,868,284.841 $25,418,875 $264,361
$25,683,236
Offering of Units 201,687.882 2,868,400 20,000
2,888,400
Net Income - 1,585,804 16,550
1,602,354
Redemptions (71,776.112) (1,027,511) -
(1,027,511)
Partners' Capital,
March 31, 1998 1,998,196.611 $28,845,568 $300,911
$29,146,479
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM BALANCED 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 1,602,354 758,972
Noncash item included in net income:
Net change in unrealized (462,637) 205,045
(Increase) decrease in operating assets:
Net option premiums (458,150) (
200,200)
Interest receivable (DWR) 1,124 (1,711)
Increase (decrease) in operating liabilities:
Accrued brokerage fees (DWR) 13,573 (975)
Accrued management fee 3,462 (222)
Incentive fee payable 28,182
- -
Net cash provided by operating activities 727,908
760,909
CASH FLOWS FROM FINANCING ACTIVITIES
Offering of Units 2,888,400 1
,281,890
Increase in subscriptions receivable (498,015) (
319,093)
Increase (decrease) in redemptions payable239,842 (
630,037) R
edemptions of units (1,027,511) (
1,011,219)
Net cash provided by (used for) financing activities 1,602,716
(678,459)
Net increase in cash 2,330,624 82,450
Balance at beginning of period 24,954,956 1
9,127,125
Balance at end of period 27,285,580 1
9,209,575
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
DEAN WITTER SPECTRUM BALANCED 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
Balanced 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 10K.
1. Organization
Dean Witter Spectrum Balanced L.P. is a limited partnership
organized to engage in the speculative trading of futures,
forward and options contracts, and other commodity 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 RXR, Inc. as the trading manager for the
Partnership.
<PAGE>
DEAN WITTER SPECTRUM BALANCED L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 BALANCED 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 25,501,000 40,675,000
Commitments to Sell 38,977,000 6,721,000
Commodity Futures:
Commitments to Purchase 2,626,000 -
Commitments to Sell 1,832,000 5,168,000
Foreign Futures:
Commitments to Purchase 56,320,000 45,574,000
Commitments to Sell 6,827,000 26,176,000
Off-Exchange-Traded
Forward Currency Contracts
Commitments to Purchase 10,810,000 2,436,000
Commitments to Sell 14,217,000 10,218,000
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 $1,144,196 and
$681,559 at March 31, 1998 and December 31, 1997, respectively.
Of the $1,144,196 net unrealized gain on open contracts at March
31, 1998 $1,059,915 related to exchange-traded forward currency
contracts and $84,281 related to off-exchange-traded forward
currency contracts.
<PAGE>
DEAN WITTER SPECTRUM BALANCED L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Of the $681,559 net unrealized gain on open contracts at December
31, 1997, $657,913 related to exchange-traded futures contracts
and $23,646 related to off-exchange-traded forward currency
contracts.
Exchange-traded futures contracts held by the Partnership at
March 31, 1998 and December 31, 1997 mature through June 1998 and
March 1998, respectively. Off-exchange-traded forward currency
contracts held by the Partnership at March 31, 1998 and December
31, 1997 mature through June 1998 and March 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 non-performance. 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 options contracts, are
<PAGE>
DEAN WITTER SPECTRUM BALANCED L.P.
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
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 options
contracts including an amount equal to the net unrealized gain on
all open futures and options contracts, which funds totaled
$28,345,495 and $25,612,869 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 of 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 the year ended December
31, 1997, the average fair value of financial instruments held
for trading purposes was as follows:
<PAGE>
DEAN WITTER SPECTRUM BALANCED L.P.
NOTES TO FINANCIAL STATEMENTS - (CONCLUDED)
March 31, 1998
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 40,116,000 15,947,000
Options on Financial Futures - 2,998,000
Commodity Futures 1,065,000 3,551,000
Foreign Futures 61,691,000 15,088,000
Off-Exchange-Traded Forward
Currency Contracts 9,152,000 14,059,000
December 31, 1997
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 39,908,000 11,661,000
Options on Financial Futures 1,206,000 2,398,000
Commodity Futures 4,414,000 3,535,000
Foreign Futures 28,444,000 26,146,000
Off-Exchange-Traded Forward
Currency Contracts 12,716,000 16,655,000
<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 contracts,
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 Interest 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 $2,042,446.
During the first quarter, the Partnership recorded a gain in Net
Asset Value per Unit. The most significant gains were recorded
from long S&P 500 Index futures positions in the stock index
portion of the balanced portfolio as domestic stock prices
climbed to record highs during the first three months of 1998.
Additional gains were recorded in the managed futures component
from long European bond futures positions, particularly German
and French bond futures, as prices in these markets trended
higher during a majority of the quarter. In energy futures
trading, profits were
<PAGE>
recorded from short crude oil futures positions during January
and February as oil prices declined on news of a tentative
agreement between the U.N. and Iraq. Smaller gains were recorded
from livestock futures trading during February. In the bond
portion of the balanced portfolio, small gains were recorded from
long U.S. Treasury note futures positions as prices finished the
quarter slightly higher. These gains were partially offset by
losses experienced from short cotton futures as cotton prices
increased during March after moving lower previously. Smaller
losses were recorded in currencies as the value of the Japanese
yen moved in a short-term volatile pattern during February.
Total expenses for the period were $440,092, resulting in net
income of $1,602,354. The value of an individual Unit in the
Partnership increased from $13.75 at December 31, 1997 to $14.59
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 $1,085,222.
During the first quarter, the Partnership posted a gain in Net
Asset Value per Unit. The most significant gains were recorded in
the currency markets due primarily to a strengthening in the
value of the U.S. dollar relative to most major currencies during
January and February. Additional gains were recorded in the
stock portion of the portfolio from long S&P 500 Index futures
positions as domestic stock prices moved higher during January
and February before reversing lower during March. Trading gains
were also experienced in the managed futures portion of the
balanced portfolio from short positions in oil and gas futures as
prices in
<PAGE>
these markets moved lower during February. A portion of the
overall gains was offset by losses recorded from long positions
in the bond portion of the portfolio as U.S. bond prices moved in
a choppy pattern early in the quarter before moving lower during
March. Total expenses for the period were $326,250, resulting
in net income of $758,972. The value of an individual Unit in
the Partnership increased from $11.63 at December 31, 1996 to
$12.09 at March 31, 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
misrepresenta-tion, 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
<PAGE>
that the defendants committed fraud, breach of 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, 2,576,871.312 Units were sold, leaving
5,423,128.688 Units unsold as of April 1, 1998. The aggregate
offering amount registered was $89,740,000, based upon the offering
prices of $10 per Unit for the 2,000,000 Units registered on
September 15, 1994; $11.73 per Unit for the 5,000,000 Units
registered on January 31, 1996; and $11.09 per Unit for the
<PAGE>
1,000,000 Units registered on April 30, 1996. The aggregate price
of the Units sold through March 31, 1998 is $29,921,820.
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 4.9% to 4.6% annually of the
Partnership's Net Assets. In addition, on April 20, 1998 the
Partnership changed its name from Dean Witter Spectrum Balanced
L.P. to Dean Witter Spectrum Global Balanced L.P.
<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 Balanced 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 Balanced 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> 27,285,580
<SECURITIES> 0
<RECEIVABLES> 1,241,550<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 29,671,326<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 29,671,326<F3>
<SALES> 0
<TOTAL-REVENUES> 2,042,446<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 440,092
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,602,354
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,602,354
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,602,354
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Receivables include subscription receivable of $1,123,725 and interest
receivable of $117,825.
<F2>In addition to cash and receivables, total assets include net unrealized
gain on open contracts of $1,144,196.
<F3>Liabilities include redemptions payable of $354,418, accrued brokerage
fees of $113,335, accrued management fee of $28,912 and
incentive fee payable of $28,182.
<F4>Total revenue includes realized trading revenue of $1,235,926, net
change in unrealized of $462,637 and interest income of $343,883.
</FN>
</TABLE>
