UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly report pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
For the Period ended September 30, 1996 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. 33-90360
DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
Delaware 13-3461507
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification No.)
c/o Demeter Management Corp.
Two World Trade Center, New York, NY 62 Fl. 10048
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 392-5454
(Former name, former address, and former fiscal year, if changed
since last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days.
Yes X No
<PAGE>
<TABLE>
DEAN WITTER DIVERSIFIED FUTURES FUND L.P.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
September 30, 1996
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition September 30, 1996
(Unaudited) and December 31, 1995.....................2
Statements of Operations for the Quarters Ended
September 30, 1996 and 1995 (Unaudited)...............3
Statements of Operations for the Nine Months Ended
September 30, 1996 and 1995 (Unaudited)...............4
Statements of Changes in Partners' Capital for the
Nine Months ended September 30, 1996 and 1995
(Unaudited)...........................................5
Statements of Cash Flows for the Nine Months Ended
September 30, 1996 and 1995 (Unaudited)...............6
Notes to Financial Statements (Unaudited)..........7-12
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations..13-19
Part II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.............. 20
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER DIVERSIFIED FUTURES FUND L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
September 30, December 31,
1996 1995
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in Commodity futures trading accounts:
Cash 152,632,188 186,577,817
Net unrealized gain on open contracts 12,161,683 7,961,783
Total Trading Equity 164,793,871 194,539,600
Interest receivable (DWR) 533,614 694,646
Due from DWR 140,990 257,457
Total Assets 165,468,475 195,491,703
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 2,107,052 76,096
Accrued management fee (DWFCM) 392,172 464,750
Accrued brokerage commissions (DWR) 286,499 628,375
Administrative expenses payable 79,489 97,122
Accrued transaction fees and costs 29,071 61,596
Total Liabilities 2,894,283 1,327,939
Partners' Capital
Limited Partners (185,196.270 and
205,070.252 Units, respectively) 160,597,652 192,029,423
General Partner (2,279.285 Units) 1,976,540 2,134,341
Total Partners' Capital 162,574,192 194,163,764
Total Liabilities and Partners' Capital 165,468,475 195,491,703
NET ASSET VALUE PER UNIT 867.18 936.41
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER DIVERSIFIED FUTURES FUND L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Quarters Ended September 30,
1996 1995
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 2,891,666 (4,933,746)
Net change in unrealized 11,362,983 (6,097,856)
Total Trading Results 14,254,649 (11,031,602)
Interest Income (DWR) 1,602,020 775,473
Total Revenues 15,856,669 (10,256,129)
EXPENSES
Brokerage commissions (DWR) 2,918,020 1,234,445
Management fees (DWFCM) 1,188,119 533,560
Transaction fees and costs 200,962 109,418
Administrative expenses 9,000 25,000
Total Expenses 4,316,101 1,902,423
NET INCOME (LOSS) 11,540,568 (12,158,552)
NET INCOME (LOSS) ALLOCATION
Limited Partners 11,403,524 (12,156,465)
General Partner 137,044 (2,087)
NET INCOME (LOSS) PER UNIT
Limited Partners 60.13 (96.84)
General Partner 60.13 (96.84)
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER DIVERSIFIED FUTURES FUND L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Nine Months Ended September 30,
1996 1995
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized (9,464,278) (4,326,538)
Net change in unrealized 4,199,900 (6,370,117)
Total Trading Results (5,264,378) (10,696,655)
Interest Income (DWR) 5,120,541 843,764
Total Revenues (143,837) (9,852,891)
EXPENSES
Brokerage commissions (DWR) 10,273,703 1,373,812
Management fees (DWFCM) 3,844,588 577,424
Transaction fees and costs 780,077 122,374
Administrative expenses 49,000 29,000
Incentive fees (DWFCM) - 27,484
Total Expenses 14,947,368 2,130,094
NET LOSS (15,091,205) (11,982,985)
NET LOSS ALLOCATION
Limited Partners (14,933,404) (11,852,320)
General Partner (157,801) (130,665)
NET LOSS PER UNIT
Limited Partners (69.23) (39.19)
General Partner (69.23) (39.19)
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER DIVERSIFIED FUTURES FUND L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the Nine Months Ended September 30, 1996 and 1995
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C> <C> <C>
Partners' Capital
December 31, 1994 2,969.768 $2,836,167 $77,795 $2,913,962
Offerings of Units 205,135.863 202,935,863 2,200,000 205,135,863
Net Loss - (11,852,320) (130,665) (11,982,985)
Redemptions (521.797) (518,913) - (518,913)
Partners' Capital
September 30, 1995 207,583.834 $193,400,797 $2,147,130 $195,547,927
Partners' Capital
December 31, 1995 207,349.537 $192,029,423 $2,134,341 $194,163,764
Net Loss - (14,933,404) (157,801) (15,091,205)
Redemptions (19,873.982) (16,498,367) - (16,498,367)
Partners' Capital
September 30, 1996 187,475.555 $160,597,652 $1,976,540 $162,574,192
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER DIVERSIFIED FUTURES FUND L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Nine Months Ended September 30,
1996 1995
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net loss (15,091,205) (11,982,985)
Noncash item included in net loss:
Net change in unrealized (4,199,900) 6,370,117
(Increase) decrease in operating assets:
Interest receivable (DWR) 161,032 (738,001)
Due from DWR 116,467 1,986
Increase (decrease) in operating liabilities:
Accrued management fee (DWFCM) (72,578) 512,267
Accrued brokerage commissions (DWR) (341,876) 155,881
Administrative expenses payable (17,633) 10,694
Accrued transaction fees and costs (32,525) 28,771
Net cash used for operating activities (19,478,218) (5,641,270)
CASH FLOWS FROM FINANCING ACTIVITIES
Offering of Units - 205,135,863
Increase in redemptions payable 2,030,956 230,136
Redemptions of units (16,498,367) (518,913)
Net cash provided by (used for) financing activities (14,467,411) 204,847,086
Net increase (decrease) in cash (33,945,629) 199,205,816
Balance at beginning of period 186,577,817 2,521,366
Balance at end of period 152,632,188 201,727,182
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
DEAN WITTER DIVERSIFIED FUTURES FUND 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, 1995 Annual Report on Form 10K.
1. Organization
Dean Witter Diversified Futures Fund Limited Partnership (the
"Partnership") is a limited partnership organized to engage in the
speculative trading of commodity futures and futures related
contracts, including forward contracts on foreign currencies. The
general partner is Demeter Management Corporation (the "General
Partner"). The commodity broker is Dean Witter Reynolds Inc.
("DWR"). The trading manager who makes all trading decisions for
the Partnership is Dean Witter Futures & Currency Management Inc.
("DWFCM"). The General Partner, DWR and DWFCM are wholly-owned
subsidiaries of Dean Witter, Discover & Co.
2. Summary of Significant Accounting Policies
Effective September 1, 1996, maximum total brokerage commissions
and transaction fees chargeable to the Partnership are capped at
.65% per month of adjusted Net Assets as defined in the Limited
Partnership.
<PAGE>
DEAN WITTER DIVERSIFIED FUTURES FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. 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 current 13-week U.S. Treasury Bill rates.
Brokerage expenses incurred by the Partnership are paid to DWR
Management fees and incentive fees (if any) are paid to DWFCM.
4. Financial Instruments
The Partnership trades futures and forward contracts in interest
rates, stock indices, commodities, currencies, petroleum and
precious metals. 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 September 30, 1996, open contracts were:
Contract or
Notional Amount
$
Exchange Traded Contracts
Financial Futures:
Commitments to Purchase 14,174,000
Commodity Futures:
Commitments to Purchase 40,627,000
Commitments to Sell 96,215,000
Foreign Futures:
Commitments to Purchase 377,882,000
Commitments to Sell 19,329,000
Off Exchange Traded Forward
Currency Contracts
Commitments to Purchase 359,736,000
Commitments to Sell 566,429,000
<PAGE>
DEAN WITTER DIVERSIFIED FUTURES FUND 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
Statement of Financial Condition and totaled $12,161,683 at
September 30, 1996. Of this amount $11,512,921 related to
exchange-traded futures contracts and $648,762 related to off-
exchange-traded forward currency contracts.
Exchange-traded futures contracts held by the Partnership at
September 30, 1996 mature through June 1997. Off-exchange-traded
forward currency contracts held by the Partnership at September 30,
1996 mature through November 1996. The contract amounts in the
above table represent the Partnership's extent of involvement in
the particular class of financial instrument, but not the credit
risk associated with counterparty nonperformance. The credit risk
associated with these instruments is limited to the amounts
reflected in the Partnership's Statements of Financial Condition.
<PAGE>
DEAN WITTER DIVERSIFIED FUTURES FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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
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 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 contracts including an
amount equal to the net unrealized gain on all open futures
contracts, which funds totaled $164,145,109 at September 30, 1996.
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 DIVERSIFIED FUTURES FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the nine months ended September 30, 1996, the average fair
value of financial instruments held for trading purposes was as
follows:
Assets Liabilities
$ $
Exchange-Traded Contracts
Financial Futures 166,770,000 155,410,000
Commodity Futures 116,120,000 56,546,000
Foreign Futures 287,941,000 95,277,000
Off-Exchange-Traded Forward
Currency Contracts 505,924,000 559,627,000
5. Legal Matters
On September 6, 10, and 20, 1996, 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 Management Corporation, DWFCM, Dean Witter, Discover
& Co. (all such parties referred to hereafter as the "Dean Witter
Parties"), the Partnership, certain other limited partnership
commodity pools of which Demeter is the general partner, and
certain trading advisors to those pools. Also, on September 18 and
20, 1996 similar purported class actions were filed in the Supreme
Court of the State of New York, New York 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
<PAGE>
DEAN WITTER DIVERSIFIED FUTURES FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
things, that the defendants committed fraud, deceit, mis-
representation, 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 could be added as
defendants. The Dean Witter Parties believe that they and the
Partnership 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 or the Partnership.
<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 are used by the
Partnership as margin to engage in commodity futures, forward
contracts and other commodity interest trading. DWR holds such
assets in either designated depositories or in securities approved
by the Commodity Futures Trading Commission 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 commodity futures
contracts, forward contracts on foreign currencies 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 the 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 of additional
Units in the future will impact the amount of funds available for
investments in commodity futures, forward contracts on foreign
currencies and other commodity interests. As redemptions are at
the discretion of Limited Partners, it is not possible to estimate
the amount and therefore, the impact of future redemptions.
Results of Operations
For the Quarter and Nine Months Ended September 30, 1996
For the quarter ended September 30, 1996, the Partnership's total
trading revenues including interest income were $15,856,669.
During the third quarter, the Partnership posted an increase in Net
Asset Value per Unit. The most significant trading gains were
recorded in the financial futures markets from long Australian,
European and Japanese bond futures positions as global interest
rate futures prices moved steadily higher between July and
September. Additional gains were recorded in the energy markets
from long positions in crude, heating and gas oil futures as prices
in these markets trended higher throughout the quarter.
<PAGE>
Gains were also recorded in metals as a downward move in aluminum
futures prices during September resulted in gains from previously
established short positions. A portion of the overall gains for
the quarter was offset by losses experienced in the agricultural
currency and soft commodities markets. In the agricultural
markets, losses were recorded as soybean and corn futures prices
moved in an inconsistent pattern during most of the quarter.
Additional losses were recorded in the currency markets during
August from short Australian dollar positions as its value reversed
higher relative to the U.S. dollar and other world currencies and
from short Japanese yen positions as its value increased sharply
during late August. In soft commodities, losses were recorded as
a result of trendless movement in cotton and coffee prices
throughout most of the quarter. Expenses are not comparable to the
prior year period and increased in September 1995 commensurate with
the increase in assets traded resulting from additional offering of
units in September 1995. Total expenses for the quarter were
$4,316,101, resulting in net income of $11,540,568. The value of
an individual Unit in the Partnership increased from $807.05 at
June 30, 1996 to $867.18 at September 30, 1996.
For the nine months ended September 30, 1996, the Partnership's
total trading losses net interest income were $143,837. During the
first nine months, the Partnership posted a decrease in Net Asset
Value per Unit. The most significant losses were recorded in soft
commodities as a result of choppy price movement in coffee, cotton
and cocoa futures during a majority of the first nine months of the
year. Additional losses were recorded in the agricultural markets
<PAGE>
as a result of trendless price movement in soybean products during
the first and third quarters of the year. Gains from long corn and
wheat futures positions during the second quarter offset a portion
of these losses. In financial futures trading, losses were
recorded as a result of short-term volatile movement in global
stock index futures prices during the first nine months of the
year. In interest rate futures, gains experienced during the third
quarter from long Australian and European bond futures positions
more than offset losses recorded during the first half of the year
in U.S. and Japanese interest rate futures. In the currency
markets, losses were recorded during February as a result of a
sharp and sudden trend reversal in the previous downward move in
the value of the Japanese yen and most European currencies, which
had resulted in gains during January. Smaller currency losses were
recorded from transactions involving the Canadian dollar. Trading
gains experienced from transactions involving the German mark
relative to the U.S. dollar and other world currencies during April
and July helped to mitigate currency losses. A portion of overall
losses during the first nine months of the year was offset by gains
from short aluminum futures positions as prices declined sharply
during September. These gains, coupled with smaller profits from
trading gold, more than offset losses experienced in silver and
other base metals during the first half of the year. Gains
experienced during the third quarter in the energy markets from a
strong upward move in heating, gas and crude oil futures prices
more than offset losses experienced from trading unleaded gas
futures earlier in the year. Expenses are not comparable to the
prior year period and increased in September 1995 commensurate with
<PAGE>
the increase in assets traded resulting from additional offering of
units in September 1995. Total expenses for the period were
$14,947,368, resulting in a net loss of $15,091,205. The value of
an individual Unit in the Partnership decreased from $936.41 at
December 31, 1995 to $867.18 at September 30, 1996.
For the Quarter and Nine Months Ended September 30, 1995
For the quarter ended September 30, 1995 the Partnership's total
trading losses net of interest income were $10,256,129. During the
third quarter, the Partnership posted a decrease in Net Asset Value
per Unit. The most significant trading losses were recorded in
financial futures as global interest rate futures prices
experienced choppiness throughout the quarter. As a result of this
price volatility, losses were experienced in U.S. Treasury bond,
Treasury note and eurodollar futures, as well as in Japanese,
Australian and French government bond futures trading. In global
stock index futures, a sharp reversal in the downward trend in the
Japanese Nikkei Index during July resulted in losses for the
Partnership's previously established short Nikkei positions.
Additional losses in this complex were recorded in Australian All
Ordinaries Index futures as Australian stock prices remained in a
short-term volatile range. In agricultural futures trading, net
losses were recorded from trading the soybean products and corn as
prices remained trendless throughout the quarter. Smaller losses
were recorded in each of the energy, metals and soft commodities
complexes as prices moved in a trendless pattern for most of the
quarter. Trading gains from transactions involving the Japanese
yen were recorded during all three months of the quarter as a
<PAGE>
downward trend in the value of the yen relative to the U.S. dollar
was evident until late September. Smaller Partnership gains were
recorded in August from transactions involving the British pound as
its value declined relative to the U.S. dollar. These gains offset
losses experienced due to a sharp reversal in European currency
values during late September. Expenses are not comparable to the
prior year third quarter and increased commensurate with the
increase in assets traded resulting from the additional offering of
units in September 1995. Total expenses for the period were
$1,902,423, resulting in a net loss of $12,158,552. The value of
an individual Unit in the Partnership decreased from $1,038.86 at
June 30, 1995 to $942.02 at September 30, 1995.
For the nine months ended September 30, 1995 the Partnership's
total trading losses net of interest income were $9,852,891.
During the first three quarters of the year, the Partnership posted
a decrease in Net Asset Value per Unit. The most significant
losses were recorded in agricultural futures, primarily due to a
trendless environment in soybean and corn prices. In other
markets, trading losses were experienced in metals futures as
precious and base metals prices traded within a short-term volatile
pattern for most of the year. Losses were also recorded in soft
commodities and energy futures trading due to similar price
volatility. Trading gains were recorded in financial futures
between February and May as global bond prices trended higher. As
a result, gains were recorded in Japanese, U.S., Australian and
European interest rate futures. Additional gains within this
complex were recorded from long positions in S&P 500 Index futures
<PAGE>
as domestic stock prices reached record highs throughout the first
nine months of the year. Currency trading also helped in
offsetting a portion of the Partnership's losses as an upward trend
in the Japanese yen and major European currencies versus the U.S.
dollar occurred between February and April. This upward trend in
these foreign currencies lost momentum during May and June.
However, a declining trend in the Japanese yen relative to the U.S.
dollar occurred between July and September resulting in net gains
for the Partnership's short yen positions during this period.
Expenses are not comparable to the prior year period and increased
in September 1995 commensurate with the increase in assets traded
resulting from the additional offering of units in September 1995.
Total expenses for the period were $2,130,094, resulting in a net
loss of $11,982,985. The value of an individual Unit in the
Partnership decreased from $981.21 at December 31, 1994 to $942.02
at September 30, 1995.
<PAGE>
PART II. OTHER INFORMATION
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 Diversified Futures
Fund L.P. (Registrant)
By: Demeter Management Corporation
(General Partner)
November 13, 1996 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.
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from Dean
Witter Diversified Futures Fund Limited Partnership and is qualified in
its entirety by reference to such financial instruments.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<CASH> 152,632,188
<SECURITIES> 0
<RECEIVABLES> 674,604<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 165,468,475<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 165,468,475<F3>
<SALES> 0
<TOTAL-REVENUES> (143,837)<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 14,947,368
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (15,091,205)
<INCOME-TAX> 0
<INCOME-CONTINUING> (15,091,205)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (15,091,205)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Receivables include interest receivable of $533,614 and due from DWR
of $140,990.
<F2>In addition to cash and receivables, total assets include net unrealized
gain on open contracts of $12,161,683.
<F3>Liabilities include redemptions payable of $2,107,052, accrued brokerage
commissions of $286,499, accrued management fees of $392,172 and
administrative expenses payable of $79,489 and accrued transaction fees
and costs of $29,071.
<F4>Total revenues include realized trading revenue of $(9,464,278), net
change in unrealized of $4,199,900 and interest income of $5,120,541.
</FN>
</TABLE>
