FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X]
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2012
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 number 333-119655
TriView Global Fund, LLC
(Exact name of registrant as specified in its charter)
Delaware
20-1689686
(State or other jurisdiction of incorporation
(I.R.S. Employer
or organization)
Identification No.)
505 Brookfield Drive, Dover, DE 19901
(Address of principal executive offices, including zip code)
(800) 331-1532
(Registrant’s telephone number, including area code)
(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 [ ]
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes [ ] No [ ] Not Applicable
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [X] Smaller Reporting Company[ ]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
Yes [ ] No [X]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) f the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes [ ] No [ ] Not applicable.
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. Not Applicable
Part 1 - FINANCIAL INFORMATION
Item 1. Financial Statements.
The reviewed financial statements for the Registrant for the nine months ended September 30, 2012 are attached hereto and made a part hereof.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
General Information
The Registrant (the “Fund”) was granted an initial effective date by the Securities and Exchange Commission ("SEC") on November 3, 2005. The Fund's Registration Statement filed May 7, 2010 for $20,000,000 in face amount of units of membership interests (the "Units") went effective with the SEC on August 10, 2010. The Fund's purpose, pursuant to the terms of the LLC Operating Agreement, is to engage in the business of speculative and high risk trading of commodity futures and options markets through the services of the commodity trading advisors its management has selected.
Description of Fund Business
The Fund grants one or more commodity trading advisors (“CTAs”) a power of attorney that is terminable at the will of either party to trade the equity assigned to each CTA by Fund management. The Managing Member has reserved the right to add and delete CTAs and reallocate equity assigned as it shall determine, in its sole discretion, without prior notice to the members (investors). A CTA has discretion to select and enter trades, and does not disclose the methods it uses to make those determinations in its disclosure documents, or to the Fund or to Fund management. There is no promise or expectation of a fixed or any other return to the investors. The investors must look solely to trading profits for a return their investment as the interest income is expected to be less than the fixed expenses to operate the Fund.
The CTA selected to trade on behalf of the Fund is GT Capital CTA, which is paid a 1% management fee on Fund assets allocated to it to trade, along with a 20% incentive fee on New Net Profit, as that term is defined in the Fund’s prospectus. There will be a twelve month lock-in commencing from the date an investment is admitted to the Fund.
On July 7, 2011, the Fund had sold approximately $1,374,000 in Units and commenced business. At such time, the Fund began to reimburse the managing member and its affiliates for offering and organizational of $291,153, though payment will not exceed 15% of gross subscription proceeds at any time. Such expenses will be amortized by the Fund over 60 months on a straight line basis, or paid off sooner at the managing member’s discretion.
Through August 31, 2011, the Fund paid the corporate managing member a 2.5% annual management fee calculated on the prior month-end net assets, and pay brokerage commissions to the affiliated introducing broker of $15 per round turn. Beginning September 1, 2011, the aforementioned fees were no longer be paid. Instead, the Fund pays fixed annual brokerage commissions of 10%, calculated on the prior month-end net assets, with 2.5% to the corporate managing member and 7.5% to the introducing broker, paid monthly. In its July 6, 2011 prospectus, the managing member had estimated the round turn brokerage of $15 would approximate 7.5% annually of Fund net assets. Accordingly, the managing member does not believe the total fees charged to the Fund will change.
As of the beginning of October, 2011, the Managing Member allocated approximately 50% of trading assets to another program traded by the Fund's sole CTA and reserves the right to change the allocation between the programs at its own discretion. For purposes of calculating the incentive fee, the performance of both programs will be netted during each quarterly incentive fee period such that the trading advisor is only paid an incentive fee when the performance considering both programs is net positive.
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Assets
Upon acceptance of subscriptions and admission to the Fund, the Managing Member deposits the subscription proceeds to the Fund’s accounts, including the account at the futures commission merchant to hold as security for the trades selected by the commodity trading advisor. The Managing Member will use its best efforts to put Fund equity not used for margin in accounts not maintained by or accessible by the futures commission merchant (FCM). This includes U.S. Treasuries held at the U.S. Treasury, investments in cash management funds that invest in only U.S. Treasuries, and foreign treasuries held with the respective issuing department of treasury, all held in the name of the Fund. The Fund assets at the FCM will consist of cash used as margin to secure futures (formerly called commodities) trades entered on its behalf by the commodity trading advisors it selects. The futures held in the Fund accounts at the FCM are valued at the market price on the close of business each day by the FCM. The Capital accounts of the Members are immediately responsible for all profit and losses incurred by trading and payment and accrual of the expenses of offering membership interests for sale and the operation of the Fund. The fixed costs of operation must be paid before the members may earn a profit on their investment.
The Fund does not intend to borrow from third parties. Its trades are entered pursuant to a margin agreement with the FCM, which obligates the fund to the actual loss, if any, without reference or limit by the amount of cash posted to secure the trade. The members are not personally liable for the debts of the Fund, including any trading losses. As of the date of this Report, there have been no offers or sales to non-affiliates of Units. Once a Unit has been sold and redeemed, it will not be resold. Capital available will be dependent upon the marketing and sales effort put in place by Fund management to sell the registered membership interests.
An Investment in the Fund Depends upon Redemption of Fund Units
The Fund Units are not traded and they have no market value. Liquidity of an investment in the Fund depends upon the credit worthiness of the exchanges, brokers, and third parties of off exchange traded futures that hold Fund equity or have a lien against Fund assets for payment of debts incurred. Those parties must honor their obligations to the Fund for the Fund to be able to obtain the return of its cash from the futures commission merchant that holds the Fund account.
The commodity trading advisors select the markets and the off exchange instruments to be traded. The Managing Member selects the futures commission merchants to hold the Fund assets. The commodity trading advisors and the Managing Member believe all parties who hold Fund assets or are otherwise obligated to pay value to the Fund are credit worthy. Margin is an amount to secure the entry of a trade and is not a limit of the profit or loss to be gained from the trade. The Managing Member allocates a substantial portion of the Fund equity to be used as margin to enter trades. Although it is customary for the commodity trading advisors to use 40% or less of the equity available as margin, there is no limit imposed by the Fund upon the amount of equity the advisors may commit to margin. It is possible for the Fund to suffer losses in excess of the margin it posts to secure the trades made. As of the date of this Report, the Fund maintained approximately 89% of its total assets on deposit with the FCM, and 10% in cash and cash equivalents, including Fund bank accounts and the Wells Fargo 100% Treasury money market fund.
To have the purchase price or appreciation, if any, of the Units paid to them, members must use the redemption feature of the Fund. Distributions, although possible in the sole discretion of the Managing Member, are not expected to be made. There is no current market for the Units sold, none is expected to develop and the LLC Operating Agreement limits the ability of a member to transfer the Units.
Results of Operations
The initial start-up costs attendant to the sale of Units by use of a Prospectus which has been filed with the Securities and Exchange Commission are substantial. The Operating Agreement grants solely to the Managing Member the right to select the CTAs and to otherwise manage the operation of the Fund. See the Registration Statement, incorporated by reference herein, for an explanation of the operation of the Fund.
On July 7, 2011, the Fund commenced business after admission of 26 limited partners, with total subscriptions of $1,374,333. As of September 30, 2012, aggregate subscriptions were $2,523,271. Because the Fund was not
3
operational prior to July 7, 2011, the Fund believes it would be misleading to compare the financial results for the three and nine months ended September 30, 2012 with the similar prior year period.
For non-financial reporting purposes (subscription and redemption purposes), the Fund's initial net asset value (NAV) per Unit of $1,000 decreased to $922.14, a loss of (7.79)%, from the commencement of operations into year end December 31, 2011, and it decreased a further (18.68)% in the nine months ended September 30, 2012. The losses were as a result of a combination of trading losses (see below) and operational expenses, the latter of which were $(121,966) for the commencement of operations into year end December 31, 2011 and $(194,828) for the nine months ended September 30, 2012, of which $(50,198) were incurred in the three months ended September 30, 2012. From the commencement of operations into year end December 31, 2011, the Fund's net assets increased to $1,796,875, primarily as a result of capital contributions by Members of $2,155,371. Despite $367,899 in capital contributions in the nine months ended September 30, 2012, the Fund's net assets decreased to $715,040 by the end of the period, primarily due to redemptions of $(1,126,550) and aforementioned operational expenses.
Going forward, any positive revenue is expected to be primarily derived from the trading of GT Capital CTA until short term interest rates rise and interest income contributes to revenues. The trading advisor’s objective is to achieve appreciation of the Fund's assets through speculative trading in futures contracts and options on futures contracts. There is no representation being made that the trading programs offered by the trading advisor will be successful in achieving this goal.
Money managers generally rely on either fundamental or technical analysis, or a combination thereof, in making trading decisions and attempting to identify price trends in a commodity interest. "Fundamental analysis" is the consideration of factors external to the market of a particular instrument. For example, weather and political events which affect the supply and demand of that particular instrument, in order to predict future prices of that instrument. As an example, some of the fundamental factors that affect the supply of commodities (e.g., agricultural products such as corn and soybeans) include the acreage planted, weather during the growing season, harvesting and distribution of the commodity and the previous year's crop carryover. The demand for such commodities is determined in part by domestic consumption and exports and is a product of many factors, including general world economic conditions, exports and the cost of competing products which might be substituted as alternate sources of food or fiber.
Technical analysis is not based on the anticipated supply and demand of the "cash" or "physical" (i.e., actual) commodity; instead, technical analysis is based on the theory that a study of the markets themselves (in particular, of trends of prices established by the markets for various instruments during selected historical periods) provides a means of anticipating prices. Technical analysis of the markets often includes a study of the actual daily, weekly and monthly price fluctuations, as well as volume variations and changes in open interest, utilizing charts and/or computers for analysis of these items and other technical market data. Both general methodologies have been employed with success by traders and investors in the past, however, neither trading method can be assured of success in a particular interval of time.
If a large price movement occurs in a sector that a trading advisor trades, such as stock indices, agriculture, financials, metals or softs, it does not necessarily mean that the trading advisor will engage in trades that capture such moves. Accordingly, market movements and conditions are not necessarily correlated with Fund performance. As always, past performance is not necessarily indicative of future results.
Since the commencement of operations, the CTA has allocated trades (by volume) among the following sectors in the approximate proportions: Currencies 15%, Energy 15%, Metals 10%, and Stock Indices 60%.
Pursuant to the Trading Advisory Agreement, the Fund pays a quarterly incentive fee to GT on new net profits, or those profits achieved on a per unit basis above the advisor's previous high water mark. See Note 5 to the financial statements herein for the current incentive fees. Trading profits (losses) from the commencement of operations to December 31, 2011 were $35,300, and they were $(80,020) in the nine months ended September 30, 2012. GT was paid an incentive fee of $2,438 as of December 31, 2012, but was not paid any incentive fee in 2012.
Interest income was negligible during the reporting period because of low short term interest rates.
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These results are not to be construed as an expectation of similar profits or losses in the future.
Item 3.
Quantitative and Qualitative Disclosures about Market Risk
The business of the Fund is speculative and involves a high degree of risk of loss. See the Fund’s Registration Statement and prospectus contained therein, incorporated herein, for a full description of the risks attendant to Fund business.
Item 4.
Controls and Procedures
Disclosure Controls and Procedures
The Registrant has adopted procedures in connection with the operation of its business including, but not limited to, the review of account statements sent to the Managing Member before the open of business each day that disclose the positions held overnight in the Fund accounts, the margin to hold those positions, and the amount of profit or loss on each position, and the net balance of equity available in each account. The Fund brokerage account statements and financial books and records accounts are prepared by an independent CPA Firm and then are reviewed each quarter and audited each year by a different independent CPA firm.
The Managing Member of the Fund, under the actions of its sole principal, Michael Pacult, has evaluated the effectiveness of the design and operation of its disclosure controls and procedures (as defined in the Securities Exchange Act of 1934 Rules 13a-15(e) or 15d-15(e)) with respect to the Fund as of the end of the period covered by this Report. Based on their evaluation, Mr. Pacult has concluded that these disclosure controls and procedures are effective.
Changes in Internal Control over Financial Reporting
There were no changes in the Managing Member’s internal control over financial reporting during the quarter ended September 30, 2012 that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting applicable to the Fund.
Part II - OTHER INFORMATION
Item 1. Legal Proceedings
For the five years preceding the date of this Report, there have been no legal proceedings against the Fund, its Managing Member, the FCM, the IB, the CTA or any of their Affiliates, directors or officers other than as described below. The CTA, GT Capital CTA, has had the following described reportable events, none of which, in the opinion of the CTA, is material to the performance of the CTA on behalf of the Fund’s account
On August 24, 2009, a lawsuit was filed against Mr. Teitelbaoum, principal of GT Capital CTA, and two other parties. The complaint alleges that Mr. Teitelbaoum and the other defendants failed to properly compensate the plaintiff for marketing services. Mr. Teitelbaoum vehemently denies all allegations of wrongdoing and plans to vigorously defend the lawsuit.
Since the commencement of business, Vision Financial Services LLC was the only FCM with which the Fund deposited assets, and it has had the following described reportable events, none of which, in the opinion of the FCM, is material to the performance of the FCM on behalf of the Fund’s account:
On May 18, 2011, simultaneously with the issuance of a complaint by the NFA, Vision Financial Markets LLC ("Vision") consented to a finding based on a one-count complaint for failure to supervise guaranteed IBs in violation of NFA Compliance Rule 2-9(a). The alleged activities occurred prior to 2009. Without admitting or denying the findings in the Committee’s Decision, Vision consented to pay a fine of $500,000 and to retain an independent consultant to review its supervisory procedures relating to guaranteed IBs. Vision undertook to implement revised procedures for supervising GIBs within 6 months. Finally, Vision consented to a restriction on guaranteeing new
5
introducing brokers until 2013, unless it petitions the NFA to lift the restriction earlier.
The FCM only acts as clearing brokers for the Fund’s futures accounts and as such it may have been paid commissions for executing and clearing trades. The FCM has not passed upon the adequacy or accuracy of the Fund’s prospectus or this report and will not act in any supervisory capacity with respect to the CPO or the CTA, as the case may be, nor participate in the management of the CPO or of the Fund or of the CTA. Therefore, investors should not rely on the FCM in deciding whether or not to participate in the Fund.
The Fund is not aware of any threatened or potential claims or legal proceedings to which the Fund is a party or to which any of its assets are subject. The FCMs has represented to the Managing Member that that none of the events reported above would interfere with its performance as a clearing broker for the Fund’s account.
Item 1A. Risk Factors
There have been no material changes from risk factors as previously disclosed in the Fund’s 2011 Form 10-K. The risks of the Fund are (1) described fully in its prospectus filed with its registration statement on Form S-1, which is incorporated herein by reference (2) described in summary in Part I of this Form 10-Q, which is incorporated herein by reference.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
None
Item 3. Defaults Upon Senior Securities
None
Item 4. (Removed and Reserved)
Not Applicable.
Item 5. Other Information
(a)
None
(b)
None
Item 6. Exhibits
31.1
Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934
32.1
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
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SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Form 10-Q for the period ended September 30, 2012, to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant:
TriView Global Fund, LLC
By TriView Capital Management, Inc.
Its Managing Member
By:
/s/ Michael Pacult
Mr. Michael Pacult
Sole Director, Sole Shareholder,
President, and Treasurer of the Managing Member
Date: November 19, 2012
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| TRIVIEW GLOBAL FUND, LLC |
| (A Delaware Limited Liability Company) |
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| QUARTERLY REPORT |
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| September 30, 2012 |
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| MANAGING MEMBER: |
| Triview Capital Management, Inc. |
| % Corporate Systems, Inc. |
| 505 Brookfield Drive |
| Dover, Kent County, Delaware 19901 |
| INDEX TO FINANCIAL STATEMENTS | |||
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| Report of Independent Registered Public Accounting Firm |
| F-2 |
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| Statements of Assets and Liabilities (Unaudited) |
| F-3 |
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| Condensed Schedule of Investments - December 31, 2011 (Unaudited) |
| F-4 |
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| Statements of Operations (Unaudited) |
| F-5 |
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| Statements of Changes in Net Assets (Unaudited) |
| F-6 |
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| Statements of Cash Flows (Unaudited) |
| F-7 |
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| Notes to the Financial Statements (Unaudited) |
| F-8 - F-15 |
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| Affirmation of the Commodity Pool Operator |
| F-16 |
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| F-1 | |||
| Patke & Associates, Ltd. | ||
| Certified Public Accountants | ||
| Report of Independent Registered Public Accounting Firm | ||
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| To the Members of |
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| TriView Global Fund, LLC |
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| Dover, Delaware |
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| We have reviewed the accompanying statements of assets and liabilities of TriView Global Fund, Limited Liability Company as of September 30, 2012, and the related statements of operations for the three and nine months ended September 30, 2012 and 2011, and the statements of changes in net assets and cash flows for the nine months ended September 30, 2012 and 2011. These financial statements are the responsibility of the Company's management. | ||
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| We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. | ||
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| Based on our review, we are not aware of any material modifications that should be made to such interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America. | ||
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| We have previously audited, in accordance with the auditing standards of the Public Company Accounting Oversight Board (United States), the statement of assets and liabilities of TriView Global Fund, Limited Liability Company, including the condensed schedule of investments, as of December 31, 2011, and the related statements of operations, changes in net assets and cash flows for the year then ended (not presented herein) and in our report dated March 9, 2012, we expressed an unqualified opinion on those financial statements. In our opinion, the information set forth in the accompanying statement of assets and liabilities as of December 31, 2011 is fairly stated, in all material respects, in relation to the statement of assets and liabilities from which it has been derived. | ||
| /s/ Patke & Associates, Ltd. |
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| Patke & Associates, Ltd. |
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| Lincolnshire, Illinois |
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| November 12, 2012 |
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| 300 Village Green Drive, Suite 210 * Lincolnshire, Illinois 60069 | ||
| Phone: (847) 913-5400 * Fax: (847) 913-5435 | ||
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| F-2 | ||
| TriView Global Fund, LLC | ||||
| (A Delaware Limited Liability Company) | ||||
| Statements of Assets and Liabilities | ||||
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| September 30, |
| December 31, |
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| 2012 |
| 2011 |
| Assets |
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| Equity in broker trading accounts |
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| Cash at broker | $ 481,339 |
| $ 1,255,856 |
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| Net unrealized (loss) on open futures contracts | - |
| (7,430) |
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| Total equity in broker trading accounts | 481,339 |
| 1,248,426 |
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| Cash and cash equivalents | 56,958 |
| 296,104 |
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| Prepaid expenses | 4,324 |
| 12,314 |
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| Total assets | 542,621 |
| 1,556,844 |
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| Liabilities |
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| Member redemptions payable | 18,749 |
| - |
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| Accounts payable and accrued liabilities | 17,426 |
| 16,902 |
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| Total liabilities | 36,175 |
| 16,902 |
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| Net assets | $ 506,446 |
| $ 1,539,942 | |
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| Analysis of net assets |
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| Non-managing members | $ 506,446 |
| $ 1,539,942 |
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| Managing members | - |
| - |
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| Net assets (equivalent to $531.13 and $790.28 per unit) | $ 506,446 |
| $ 1,539,942 |
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| Membership units outstanding |
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| Non-managing member units outstanding | 953.521 |
| 1,948.597 |
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| Managing members units outstanding | - |
| - |
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| Total membership units outstanding | 953.521 |
| 1,948.597 |
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| The accompanying notes are an integral part of the financial statements. F-3 | ||||
| TriView Global Fund, LLC | ||||||
| (A Delaware Limited Liability Company) | ||||||
| Condensed Schedule of Investments | ||||||
| December 31, 2011 | ||||||
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| Fair Value |
| Percent of Net Assets |
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| Futures contracts |
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| Futures contracts held long |
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| Energy |
| $ (6,150) |
| (0.40%) |
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| Currency |
| (1,280) |
| (0.08%) |
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| Total futures contracts held long |
| (7,430) |
| (0.48%) |
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| Net unrealized (loss) on open futures contracts | $ (7,430) |
| (0.48%) | ||
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| The accompanying notes are an integral part of the financial statements. F-4 | ||||||
| TriView Global Fund, LLC | ||||||||||||||||||
| (A Delaware Limited Liability Company) | ||||||||||||||||||
| Statements of Operations | ||||||||||||||||||
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| Three Months Ended September 30, |
| Nine Months Ended September 30, | |||||||||||||
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| 2012 |
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| Investment income |
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| Interest income |
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| $ 5 |
| $ 3 |
| $ 5 | |||||||||
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| Total investment income |
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| Expenses |
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| Commission expense |
| 27,723 |
| 19,162 |
| 121,285 |
| 19,162 | |||||||||
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| Management fees |
| 3,234 |
| 8,556 |
| 11,396 |
| 8,556 | |||||||||
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| Professional fees |
| 14,700 |
| 18,750 |
| 48,200 |
| 38,105 | |||||||||
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| Other operating expenses |
| 4,541 |
| 2,651 |
| 13,947 |
| 14,142 | |||||||||
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| Total expenses |
| 50,198 |
| 49,119 |
| 194,828 |
| 79,965 | |||||||||
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
| Net investment (loss) |
| (50,198) |
| (49,114) |
| (194,825) |
| (79,960) | |||||||||
|
|
|
|
|
|
|
|
|
|
| |||||||||
| Realized and unrealized gain (loss) from investments and foreign currency |
|
|
|
|
|
|
|
| ||||||||||
|
| Net realized (loss) from: |
|
|
|
|
|
|
|
| |||||||||
|
| Investments |
| (56,915) |
| (4,658) |
| (87,450) |
| (4,658) | |||||||||
|
| Foreign currency translation |
| - |
| (3,702) |
| - |
| (3,702) | |||||||||
|
| Net realized (loss) from investments and foreign currency transactions |
| (56,915) |
| (8,360) |
| (87,450) |
| (8,360) | |||||||||
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
| Net unrealized appreciation on investments |
| - |
| - |
| 7,430 |
| - | |||||||||
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
| Net realized and unrealized (loss) from investments |
|
|
|
|
|
|
|
| |||||||||
|
| and foreign currency transactions |
| (56,915) |
| (8,360) |
| (80,020) |
| (8,360) | |||||||||
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
| Net (decrease) in net assets resulting from operations |
| $ (107,113) |
| $ (57,474) |
| $ (274,845) |
| $ (88,320) | |||||||||
|
|
|
|
|
|
|
|
|
|
| |||||||||
| Net (decrease) per unit (for a single unit outstanding during the period) |
|
|
|
|
|
|
|
| ||||||||||
|
| Managing and non-managing member unit |
| $ (168.02) |
| $ (14.48) |
| $ (259.15) |
| $ (15,437.80) | |||||||||
| The accompanying notes are an integral part of the financial statements. F-5 | ||||||||||||||||||
| TriView Global Fund, LLC | ||||||||||
| (A Delaware Limited Liability Company) | ||||||||||
| Statements of Changes in Net Assets | ||||||||||
| (Unaudited) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nine Months Ended September 30, | ||||||
|
|
|
|
| 2012 |
| 2011 | ||||
|
|
|
|
| Units |
| Net Assets |
| Units |
| Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
| (Decrease) in net assets from operations |
|
|
|
|
|
|
|
| ||
| Net investment (loss) |
|
|
| $ (194,825) |
|
|
| $ (79,960) | ||
| Net realized (loss) from investments and foreign currency transactions |
| (87,450) |
|
|
| (8,360) | ||||
| Net unrealized appreciation on investments |
|
|
| 7,430 |
|
|
| - | ||
| Net (decrease) in net assets resulting from operations |
|
|
| (274,845) |
|
|
| (88,320) | ||
|
|
|
|
|
|
|
|
|
|
|
|
| Capital contributions from members |
| 407.914 |
| 367,899 |
| 1,591.250 |
| 1,580,214 | ||
| Redemptions by members |
| (1,402.990) |
| (1,126,550) |
| (2.000) |
| (1,986) | ||
|
| Total increase (decrease) in net assets |
| (995.076) |
| (1,033,496) |
| 1,589.250 |
| 1,489,908 | |
|
|
|
|
|
|
|
|
|
|
|
|
| Net assets at the beginning of the period |
| 1,948.597 |
| 1,539,942 |
| 2.000 |
| (258,306) | ||
| Net assets at the end of the period |
| 953.521 |
| $ 506,446 |
| 1,591.250 |
| $ 1,231,602 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| The accompanying notes are an integral part of the financial statements. F-6 | ||||||||||
| TriView Global Fund, LLC | ||||
| (A Delaware Limited Liability Company) | ||||
| Statements of Cash Flows | ||||
| (Unaudited) | ||||
|
|
|
|
|
|
|
|
| Nine Months Ended September 30, | ||
|
|
| 2012 |
| 2011 |
|
|
|
|
|
|
| Cash Flows from Operating Activities |
|
|
| |
|
|
|
|
|
|
| Net (decrease) in net assets resulting from operations | $ (274,845) |
| $ (88,320) | |
|
|
|
|
|
|
| Adjustments to reconcile net increase (decrease) in net assets from |
|
|
| |
|
| operations to net cash (used in) operating activities: |
|
|
|
|
|
|
|
|
|
|
| Changes in operating assets and liabilities: |
|
|
|
|
| (Increase) decrease in prepaid expenses | 7,990 |
| (13,402) |
|
| Unrealized (appreciation) on investments | (7,430) |
| - |
|
| Increase in accrued commissions payable | - |
| 10,146 |
|
| Increase in accrued management fees | - |
| 915 |
|
| Increase in accounts payable and accrued liabilities | 524 |
| 142 |
|
| Net cash (used in) operating activities | (273,761) |
| (90,519) |
|
|
|
|
|
|
| Cash Flows from Financing Activities |
|
|
| |
|
|
|
|
|
|
|
| (Decrease) in due to related parties | - |
| (196,695) |
|
| Proceeds from sale of units | 367,899 |
| 1,580,214 |
|
| Redemptions paid | (1,107,801) |
| - |
|
|
|
|
|
|
|
| Net cash provided by (used in) financing activities | (739,902) |
| 1,383,519 |
|
|
|
|
|
|
|
| Net increase (decrease) in cash and cash equivalents | (1,013,663) |
| 1,293,000 |
|
| Cash and cash equivalents, beginning of period | 1,551,960 |
| 405 |
|
| Cash and cash equivalents, end of period | $ 538,297 |
| $ 1,293,405 |
|
|
|
|
|
|
|
| End of period cash and cash equivalents consists of: |
|
|
|
|
|
|
|
|
|
|
| Cash at broker | $ 481,339 |
| $ 1,211,735 |
|
| Cash and cash equivalents | 56,958 |
| 81,670 |
|
|
|
|
|
|
|
| Total cash and cash equivalents | $ 538,297 |
| $ 1,293,405 |
|
|
|
|
|
|
| The accompanying notes are an integral part of the financial statements. F-7 | ||||
| TriView Global Fund, LLC | ||||||||||||||
| (A Delaware Limited Liability Company) | ||||||||||||||
| Notes to the Financial Statements | ||||||||||||||
| September 30, 2012 | ||||||||||||||
| (Unaudited) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
| |||||
| 1. | Nature of the Business |
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
| |||||
|
| TriView Global Fund, LLC (the "Fund") was formed on October 1, 2004 under the laws of the State of Delaware. The Fund is engaged in high risk, speculative and hedge trading of futures and forward contracts, options on futures and forward contracts, and other instruments selected by registered commodity trading advisors ("CTA's"). The Fund was in the development stage until July 7, 2011, when it commenced business after accepting subscriptions exceeding the minimum required. TriView Capital Management, Inc. (the "Corporate Managing Member") and Michael Pacult (the "Individual Managing Member" and collectively the "Managing Member") are the managing members and commodity pool operators ("CPO's") of the Fund. The CTA is GT Capital CTA ("GT Capital"), which has the authority to trade as much of the Fund's equity as is allocated to it by the Managing Member. The selling agent and introducing broker is Futures Investment Company ("FIC"), which is owned and operated by Michael Pacult and his wife. | |||||||||||||
|
|
|
|
|
|
|
|
|
|
| |||||
|
| Regulation - The Fund is a registrant with the Securities and Exchange Commission ("SEC") pursuant to the Securities Act of 1933. The Fund is subject to the regulations of the SEC and the reporting requirements of the Securities and Exchange Act of 1934, and of the rules and regulations of the Financial Industry Regulation Authority ("FINRA"). The Fund is also be subject to the regulations of the Commodities Futures Trading Commission ("CFTC"), an agency of the U.S. government, which regulates most aspects of the commodity futures industry, the rules of the National Futures Association and the requirements of various commodity exchanges where the Fund executes transactions. Additionally, the Fund is subject to the requirements of futures commission merchants ("FCM's") and interbank market makers through which the Fund trades and regulated by commodity exchanges and by exchange markets that may be traded by the advisor. | |||||||||||||
|
|
|
|
|
|
|
|
|
|
| |||||
| 2. | Significant Accounting Policies |
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
| |||||
|
| Offering Expenses and Organizational Costs - For financial reporting purposes in conformity with accounting principles generally accepted in the United States of America ("GAAP"), on the Fund's initial effective date, November 3, 2005, the Fund deducted from members' capital the total initial offering costs of $43,468, as of that date, and began expensing all subsequent offering costs. Organizational and operating costs are expensed as incurred for GAAP purposes. For all other purposes, including determining the Net Asset Value per Unit for subscription and redemption purposes, the Fund capitalized all offering, organizational and operating costs until commencement of business, July 7, 2011, which totaled $291,153. These costs are expensed and amortized on a straight line basis for 60 months or sooner at the discretion of the Managing Member. | |||||||||||||
|
|
|
|
|
|
|
|
|
|
| |||||
|
| As of September 30, 2012 and December 31, 2011, the Net Asset Value and Net Asset Value per Unit for financial reporting purposes and for all other purposes are as follows: | |||||||||||||
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
| Balance |
| Per Unit Calculation | |||||||||
|
|
|
| September 30, |
| December 31, |
| September 30, |
| December 31, | |||||
|
|
|
| 2012 |
| 2011 |
| 2012 |
| 2011 | |||||
|
| Net Asset Value for financial reporting purposes |
| $ 506,446 |
| $ 1,539,942 |
| $ 531.13 |
| $ 790.28 | |||||
|
|
|
|
|
|
|
|
|
|
| |||||
|
| Adjustment for initial offering costs |
| 43,468 |
| 43,468 |
| 45.59 |
| 22.31 | |||||
|
| Adjustment for other offering, organizational and operating expenses |
| 165,126 |
| 213,465 |
| 173.17 |
| 109.55 | |||||
|
|
|
|
|
|
|
|
|
|
| |||||
|
| Net Asset Value for all other purposes |
| $ 715,040 |
| $ 1,796,875 |
| $ 749.89 |
| $ 922.14 | |||||
|
|
|
|
|
|
|
|
|
|
| |||||
|
| Number of Units |
|
|
|
|
| 953.521 |
| 1,948.597 | |||||
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
| |||||
|
| Registration Costs - Costs incurred for the initial filings with SEC, FINRA and the states where the offering is expected to be made are included in the offering expenses and, accordingly, are accounted for as described above under "Offering Expenses and Organizational Costs". | |||||||||||||
|
|
|
|
|
|
|
|
|
|
| |||||
|
| Revenue Recognition - Futures and other investments are recorded on the trade date and are reflected in the statement of operations at the difference between the original contract amount and the fair value on the last business day of the reporting period. | |||||||||||||
|
|
|
|
|
|
|
|
|
|
| |||||
|
| Fair value of futures and other investments is based upon exchange or other applicable closing quotations related to the specific positions. | |||||||||||||
|
|
|
|
|
|
|
|
|
|
| |||||
|
| Interest income is recognized when it is earned. | |||||||||||||
| F-8 | ||||||||||||||
| TriView Global Fund, LLC | |||||||||||
| (A Delaware Limited Liability Company) | |||||||||||
| Notes to the Financial Statements | |||||||||||
| September 30, 2012 | |||||||||||
| (Unaudited) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |
| 2. | Significant Accounting Policies - Continued |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Fair Value Measurement and Disclosures - Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 820, establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date. | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Level 3 inputs are unobservable inputs for an asset or liability, including the Fund’s own assumptions used in determining the fair value of investments. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. As of and for the nine months ended September 30, 2012 and year ended December 31, 2011, the Fund did not have any Level 3 assets or liabilities. | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |
|
| The Fund had no investments as of September 30, 2012. The following table sets forth by level within the fair value hierarchy the Fund's investments accounted for at fair value on a recurring basis as of December 31, 2011. | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Fair Value at December 31, 2011 |
| |||||||||
|
| Description |
| Level 1 |
| Level 2 |
| Level 3 |
| Total |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Exchange Traded - Futures Contracts | $ (7,430) |
| $ - |
| $ - |
| $ (7,430) |
| ||
|
| Total |
| $ (7,430) |
| $ - |
| $ - |
| $ (7,430) |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Income Taxes - The Fund prepares calendar year U.S. Federal and applicable state information tax returns and reports to the members their allocable shares of the Fund’s income, expenses and trading gains or losses. No provision for income taxes has been made in the accompanying financial statements as each member is individually responsible for reporting income or loss based on such member’s respective share of the Fund’s income and expenses as reported for income tax purposes. | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Management has continued to evaluate the application of ASC 740, "Income Taxes" to the Fund and has determined that ASC 740 does not have a material impact on the Fund's financial statements. The Fund files federal and state tax returns. The 2008 through 2011 tax years generally remain subject to examination for the U.S. federal and most state tax authorities. | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Statement of Cash Flows - For the purposes of the Statement of Cash Flows, the Fund considers all short-term investments with an original maturity of three months or less to be cash equivalents. Net cash used in operating activities includes no cash payments for interest or income taxes for the nine months ended September 30, 2012 or 2011. | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Foreign Currency - The accounting records of the Fund are denominated in U.S. dollars. Assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates in effect on the valuation date. Commodity futures contracts transactions are translated into U.S. dollars at the exchange rates on the dates of such transactions. On the accompanying financial statements, effects of changes in exchange rates from all transactions denominated in currencies other than U.S. dollars are disclosed separately. | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Use of Accounting Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. | ||||||||||
| F-9 | |||||||||||
| TriView Global Fund, LLC | ||||||||||||
| (A Delaware Limited Liability Company) | ||||||||||||
| Notes to the Financial Statements | ||||||||||||
| September 30, 2012 | ||||||||||||
| (Unaudited) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |
| 3. | Managing Member Duties |
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| The responsibilities of the Managing Member, in addition to directing the trading and investment activity of the Fund, including suspending all trading, includes executing and filing all necessary legal documents, statements and certificates of the Fund, retaining independent public accountants to audit the Fund, employing attorneys to represent the Fund, reviewing the brokerage commission rates to determine reasonableness, maintaining the tax status of the Fund, maintaining a current list of the names, addresses and numbers of units owned by each member and taking such other actions as deemed necessary to manage the business of the Fund. | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| If the net unit value of the Fund falls to less than 50% of the greater of the original $1,000 selling price, less commissions and other charges or such higher value earned through trading, then the Managing Member will immediately suspend all trading, provide all members with notice of the reduction in net unit value and give all members the opportunity, for fifteen days after such notice, to redeem Units. No trading shall commence until after the lapse of such fifteen day period. | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |
| 4. | The Limited Liability Company ("LLC") Agreement |
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| The LLC Operating Agreement provides, among other things, that- | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Capital Account - A capital account shall be established for each member. The initial balance of each member's capital account shall be the amount of the initial contributions to the Fund. | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Monthly Allocations - Any increase or decrease in the Fund's net asset value as of the end of a month shall be credited or charged to the capital account of each member in the ratio that the balance of each account bears to the total balance of all accounts. | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Any distribution from profits or members' capital will be made solely at the discretion of the Managing Member. | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Federal Income Tax Allocations - As of the end of each fiscal year, the Fund's realized capital gain or loss and ordinary income or loss shall be allocated among the members, after having given effect to the fees and expenses of the Fund. | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Subscriptions - Investors must submit subscription agreements and funds at least five business days prior to month end. Subscriptions must be accepted or rejected by the Managing Member within five business days. The investor also has five business days to withdraw his subscription. Funds are deposited into an interest bearing subscription account and transferred to the Fund's account after the minimum to commence business has been raised and, thereafter, on the first business day of the month after the subscription is accepted. Interest earned on the subscription funds accrue to the account of the investor. | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Redemptions - A member may request any or all of his investment be redeemed at the net asset value as of the end of a month. Unless this requirement is waived, the written request must be received by the Managing Member no less than ten business days prior to a month end. Redemptions are generally paid within twenty days of the effective month end. However, in various circumstances due to liquidity, etc. the Managing Member may be unable to comply with the request on a timely basis. There is no redemption fee; however there is a twelve month lock-in commencing from the date of admission of an investment. | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |
| 5. | Fees |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| The Fund was initially charged the following fees after the commencement of trading. | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| A monthly management fee of 2.5% (annual rate) paid to the Corporate Managing Member, calculated on the Fund's prior month-end net assets. Brokerage commissions to the Fund's affiliated introducing broker, FIC, of $15 per round turn. | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| As of September 1, 2011, the Fund no longer paid FIC round turn brokerage commissions and no longer paid the Corporate Managing Member a management fee. Instead, the Fund is charged 10% (annual rate) fixed brokerage commissions, paid monthly, calculated on the prior month-end net assets, with 7.5% paid to FIC and 2.5% to the Corporate Managing Member. | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| A monthly management fee of 1% (annual rate) is paid to GT Capital calculated on the prior month-end equity allocated to it to trade. | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| A quarterly incentive fee of 20% of new net profits is paid to GT Capital. In October 2011, the Managing Member allocated approximately 50% of Fund trading equity to a separate program offered by GT Capital maintained in a separate account at the FCM, held in the name of the Fund. For purposes of calculating the quarterly incentive fee, the net performance of both programs is combined. There were no incentive fees for the nine months ended September 30, 2012 and 2011. | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| The Managing Member has reserved the right to implement a management fee and change the incentive fee at its sole discretion. The total incentive fees may be increased to 27% if the management fee is zero. The Fund may also increase the total management fees paid to the CTA's and Corporate Managing Member to 6% of total net assets if the total incentive fees are decreased to 15%. | |||||||||||
| F-10 | ||||||||||||
| TriView Global Fund, LLC | ||||||||
| (A Delaware Limited Liability Company) | ||||||||
| Notes to the Financial Statements | ||||||||
| September 30, 2012 | ||||||||
| (Unaudited) | ||||||||
|
|
|
|
|
|
|
|
|
|
| 6. | Related Party Transactions |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| The sole shareholder of the Corporate Managing Member made an initial member capital contribution in the Fund of $1,000. He is also the sole shareholder of TriView Capital Management, Inc., which along with the shareholder and other affiliates, has temporarily funded the syndication costs incurred by the Fund to date. A variable interest entity relationship existed between the Corporate Managing Member and the Fund until July 7, 2011 when the Fund commenced business. The Corporate Managing Member redeemed its interest July 31, 2011. | |||||||
|
|
|
|
|
|
|
|
|
|
|
| Due to related parties at September 30, 2011 and December 31, 2010 consisted of amounts due to the Corporate Managing Member, TriView Capital Management, Inc., FIC, and Michael Pacult, President of FIC, the Corporate Managing Member and TriView Capital Management, Inc. The balances result from offering, organizational and operating costs paid by the related parties on behalf of the Fund and cash advances. These amounts bear no interest or due dates and are unsecured. The following balances were outstanding as of September 30, 2012 and December 31, 2010: | |||||||
|
|
|
|
|
|
|
|
|
|
|
| The Fund pays commissions to the Corporate Managing Member and FIC. These related parties are 100% and 50%, respectively, owned by Michael Pacult. Related party commissions and management fees were as follows: | |||||||
|
| Commissions included in expenses: |
|
|
|
|
|
| |
|
|
|
|
| For The Nine Months Ended September 30, |
|
| ||
|
|
|
|
| 2012 |
| 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate Managing Member |
| $ 30,321 |
| $ 2,750 |
|
| |
|
| FIC |
|
| 77,877 |
| 13,344 |
|
|
|
| Total related party expenses |
| $ 108,198 |
| $ 16,094 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Management fees included in expenses: |
|
|
|
|
|
| |
|
|
|
|
| For The Nine Months Ended September 30, |
|
| ||
|
|
|
|
| 2012 |
| 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate Managing Member |
| $ - |
| $ 5,706 |
|
| |
|
| Total related party expenses |
| $ - |
| $ 5,706 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Commissions included in accrued expenses: |
|
|
|
|
|
| |
|
|
|
|
| September 30, |
| December 31, |
|
|
|
|
|
|
| 2012 |
| 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate Managing Member |
| $ 1,568 |
| $ 3,270 |
|
| |
|
| FIC |
|
| 4,256 |
| 3,347 |
|
|
|
| Total accrued commissions payable to related parties |
| $ 5,824 |
| $ 6,617 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| In the normal course of business, the Fund has provided general indemnifications to the Managing Member, its CTA and others when they act, in good faith, in the best interests of the Fund. The Fund is unable to develop an estimate for future payments resulting from hypothetical claims, but expects the risk of having to make any payments under these indemnifications to be remote. | |||||||
| F-11 | ||||||||
| TriView Global Fund, LLC | ||||||||||
| (A Delaware Limited Liability Company) | ||||||||||
| Notes to the Financial Statements | ||||||||||
| September 30, 2012 | ||||||||||
| (Unaudited) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| 7. | Trading Activities and Related Risks |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| The Fund is engaged in speculative trading of U.S. and foreign futures contracts. The Fund is exposed to both market risk, the risk arising from changes in market value of the contracts, and credit risk, the risk of failure by another party to perform according to the terms of a contract. | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| A certain portion of cash in trading accounts are pledged as collateral for futures trading on margin. Additional deposits may be necessary for any loss on contract value. The Commodity Exchange Act requires a broker to segregate all customer transactions and assets from such broker's proprietary activities. | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Each U.S. commodity exchange with the approval of the CFTC establishes minimum margin requirements for each traded contract. The FCM may increase the margin requirements above these minimums for any or all contracts. The Fund maintains cash and cash equivalents to satisfy these margin requirements. Cash and cash equivalents at September 30, 2012 and December 31, 2011 was $538,297 and $1,551,960, respectively. Based upon the types and amounts of contracts traded and the amount of liquid assets of the Fund, the Managing Member believes there is minimal risk of not being able to meet its margin requirement. | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Trading in futures contracts involves entering into contractual commitments to purchase or sell a particular futures contracts at a specified date and price. The gross or face amount of the contract, which is typically many times that of the Fund's net assets being traded, significantly exceeds the Fund's future cash requirements since the Fund intends to close out its open positions prior to settlement. As a result, the Fund is generally subject only to the risk of loss arising from the change in the value of the contracts. The market risk is limited to the gross or face amount of the contracts held on long positions, of which there were none at September 30, 2012 and $26,901 at December 31, 2011. However, when the Fund enters into a contractual commitment to sell commodities, it must make delivery of the underlying commodity at the contract price and then repurchase the contract at prevailing market prices or settle in cash. Since the repurchase price to which a commodity can rise is unlimited, entering into commitments to sell commodities exposes the Fund to unlimited potential risk. | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Market risk is influenced by a wide variety of factors including government programs and policies, political and economic events, the level and volatility of interest rates, foreign currency exchange rates, the diversification effects among the derivative instruments the Fund holds and the liquidity and inherent volatility of the markets in which the Fund trades. | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| There were no open futures contracts at September 30, 2012. The net unrealized loss on open futures contract was $7,430 at December 31, 2011. | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| F-12 | ||||||||||
| TriView Global Fund, LLC | |||||||||||
| (A Delaware Limited Liability Company) | |||||||||||
| Notes to the Financial Statements | |||||||||||
| September 30, 2012 | |||||||||||
| (Unaudited) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| 7. | Trading Activities and Related Risks - Continued |
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| The following tables discloses the fair values of derivative and hedging activities in the Statements of Assets and Liabilities and the Statements of Operations. | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivative Instruments | ||||||||||
|
| Statement of Assets and Liabilities | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Asset Derivatives at |
| Liability Derivatives at |
|
|
|
|
|
|
|
| Statement of Assets and Liabilities Location |
| December, 31 2011 Fair Value |
| December, 31 2011 Fair Value |
| Net |
|
|
|
|
|
|
| Fair Value |
| Fair Value |
| Net | |
|
| Derivatives not designated as hedge instruments under ASC 815 |
| Futures contracts |
| Net unrealized (loss) on open futures contracts |
| $ - |
| $ (7,430) |
| $ (7,430) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivative Instruments | ||||||||||
|
| Statement of Operations | ||||||||||
|
|
|
|
|
|
|
| For the three |
| For the nine |
|
|
|
|
|
|
|
| Line Item in the Statement Operations |
| months ended |
| months ended |
|
|
|
|
|
|
|
| of Operations |
| September 30,2012 |
| September 30,2012 |
|
|
|
| Derivatives not designated as hedge instruments under ASC 815 |
| Futures contracts |
| Net realized (loss) from investments and foreign currency transactions |
| $ (56,915) |
| $ (87,052) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivatives not designated as hedge instruments under ASC 815 |
| Options on Futures |
| Net realized (loss) from investments and foreign currency transactions |
| $ - |
| $ (398) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivatives not designated as hedge instruments under ASC 815 |
| Futures contracts |
| Net unrealized appreciation on investments |
| $ - |
| $ 7,430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the three |
| For the nine |
|
|
|
|
|
|
|
| Line Item in the Statement |
| months ended |
| months ended |
|
|
|
|
|
|
|
| of Operations |
| September 30,2011 |
| September 30,2011 |
|
|
|
| Derivatives not designated as hedge instruments under ASC 815 |
| Futures contracts |
| Net realized (loss) from investments and foreign currency transactions |
| $ (12,300) |
| $ (12,300) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivatives not designated as hedge instruments under ASC 815 |
| Options on Futures |
| Net realized (loss) from investments and foreign currency transactions |
| $ 3,940 |
| $ 3,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Credit risk is the possibility that a loss may occur due to the failure of a counter party to perform according to the terms of a contract. | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| The Fund has a substantial portion of its assets on deposit with financial institutions. In the event of a financial institution's insolvency, recovery of Fund deposits may be limited to account insurance or other protection afforded deposits. | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| The Fund has established procedures to actively monitor market risk and minimize credit risk although there can be no assurance that it will succeed. The basic market risk control procedures consist of continuously monitoring open positions, diversification of the portfolio and maintenance of a desirable margin-to-equity ratio. The Fund seeks to minimize credit risk primarily by depositing and maintaining its assets at financial institutions and brokers which it believes to be creditworthy. | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| F-13 | |||||||||||
| TriView Global Fund, LLC | ||||||||||||
| (A Delaware Limited Liability Company) | ||||||||||||
| Notes to the Financial Statements | ||||||||||||
| September 30, 2012 | ||||||||||||
| (Unaudited) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 8. | Derivative Financial Instruments and Fair Value of Financial Instruments |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| A derivative financial instrument is a financial agreement whose value is linked to, or derived from, the performance of an underlying asset. The underlying asset can be currencies, commodities, interest rates, stocks, or any combination. Changes in the underlying asset indirectly affect the value of the derivative. As the instruments are recognized at fair value, those changes directly affect reported income. | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| All investment holdings are recorded in the statement of assets and liabilities at their net asset value (fair value) at the reporting date. Financial instruments (including derivatives) used for trading purposes are recorded in the statement of assets and liabilities at fair value at the reporting date. Realized and unrealized changes in fair values are recognized in net investment gain (loss) in the period in which the changes occur. Interest income arising from trading instruments is included in the statement of operations as part of interest income. | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Notional amounts are equivalent to the aggregate face value of the derivative financial instruments. Notional amounts do not represent the amounts exchanged by the parties to derivatives and do not measure the Fund’s exposure to credit or market risks. The amounts exchanged are based on the notional amounts and other terms of the derivatives. | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 9. | Financial Instruments with Off-Balance Sheet Credit and Market Risk |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| All financial instruments are subject to market risk, the risk that future changes in market conditions may make an instrument less valuable or more onerous. As the instruments are recognized at fair value, those changes directly affect reported income. | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Included in the definition of financial instruments are securities, restricted securities and derivative financial instruments. Theoretically, the investments owned by the Fund directly are exposed to a market risk (loss) equal to the notional value of the financial instruments purchased and substantial liability on certain financial instruments purchased short. Generally, financial instruments can be closed. However, if the market is not liquid, it could prevent the timely close-out of any unfavorable positions or require the Fund to hold those positions to maturity, regardless of the changes in their value or the trading advisor’s investment strategies. | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Credit risk represents the accounting loss that would be recognized at the reporting date if counterparties failed to perform as contracted. Concentrations of credit risk (whether on or off balance sheet) that arise from financial instruments exist for groups of counterparties when they have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 10. | Indemnifications |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| In the normal course of business, the Fund enters into contracts and agreements that contain a variety of representations and warranties and which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. The Fund expects the risk of any future obligation under these indemnifications to be remote. | |||||||||||
|
|
|
|
|
|
|
|
|
|
| |||
| F-14 | ||||||||||||
| TriView Global Fund, LLC |
| ||||||||
| (A Delaware Limited Liability Company) |
| ||||||||
| Notes to the Financial Statements |
| ||||||||
| September 30, 2012 |
| ||||||||
| (Unaudited) |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
| 11. | Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, |
| ||||
|
|
| 2012 |
| 2011 |
| 2012 |
| 2011 |
|
|
| Performance per unit (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net unit value, beginning of the period | $ 699.15 |
| $ (144,576.34) |
| $ 790.28 |
| $ (129,153.02) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses |
|
| - |
|
|
| (15,423.32) |
|
|
| Net (decrease) prior to commencement |
|
|
|
|
|
|
|
|
|
| of operations (July 7, 2011) |
|
| - |
|
|
| (15,423.32) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reallocation of initial offering costs (see footnote 2) |
|
| 145,576.34 |
|
|
| 145,576.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net unit value, initial subscription |
|
| 1,000.00 |
|
|
| 1,000.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Absorption of initial offering costs (see footnote 2) |
|
| (211.54) |
|
|
| (211.54) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net unit value, commencement of operations (July 7, 2011) |
|
| 788.46 |
|
|
| 788.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net realized and unrealized gain (loss) from investments | (131.13) |
| 19.35 |
| (156.61) |
| 19.35 |
|
|
| Net investment (loss) | (36.89) |
| (33.83) |
| (102.54) |
| (33.83) |
|
|
| Net (decrease) after commencement of operations | (168.02) |
| (14.48) |
| (259.15) |
| (14.48) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net unit value at the end of the period | $ 531.13 |
| $ 773.98 |
| $ 531.13 |
| $ 773.98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net assets at the end of the period ($000) | $ 506 |
| $ 1,232 |
| $ 506 |
| $ 1,232 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total return (2) | (24.03)% |
| (22.60)% | (3) | (32.79)% |
| (22.60)% | (3) |
|
|
|
|
|
|
|
|
|
|
|
|
| Number of units outstanding at the end of the period | 953.521 |
| 1,591.250 |
| 953.521 |
| 1,591.250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Supplemental Data |
|
|
|
|
|
|
|
|
|
| Ratio to average net assets (4) |
|
|
|
|
|
|
|
|
|
| Net investment (loss) | (25.27)% |
| (18.17)% | (3) | (19.52)% |
| (18.17)% | (3) |
|
| Expenses | (25.27)% |
| (18.17)% | (3) | (19.52)% |
| (18.17)% | (3) |
|
|
|
|
|
|
|
|
|
|
|
|
| Total return was calculated based on the change in value of a unit during the period. Net realized and unrealized gain (loss) from investments is a balancing amount necessary to reconcile the change in net unit value. An individual member's total returns and ratios may vary from the above total returns and ratios based on the timing of additions and redemptions. |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Investment income and expenses and net realized and unrealized gains and (losses) on future transactions are calculated based on a single unit outstanding during the period. |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
| (2) Not annualized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (3) Total return and ratios were calculated for the trading period of July 7, 2011 through September 30, 2011. |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
| (4) Annualized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| F-15 | |||||||||
| TriView Global Fund, LLC | ||||||||||
| Affirmation of the Commodity Pool Operator | ||||||||||
| For the Nine Months Ended September 30, 2012 and 2011 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ******************************************************************************************************************************************************************* | ||||||||||
|
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|
|
| To the best of the knowledge and belief of the undersigned, the information contained in this report is accurate and complete. | ||||||||||
|
|
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|
|
| /s/ Michael Pacult |
|
|
|
|
|
|
|
| |
|
| Michael Pacult |
|
|
|
|
|
|
|
| |
|
| President, TriView Capital Management, Inc. |
|
|
|
|
| ||||
|
| Managing Member |
|
|
|
|
|
|
| ||
|
| TriView Global Fund, LLC |
|
|
|
|
| ||||
|
|
|
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|
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|
|
|
|
| F-16 | ||||||||||
Exhibit 31.01
CERTIFICATION
I, Michael Pacult, hereby certify that:
1. I have reviewed this quarterly report on Form 10-Q of TriView Global Fund, LLC;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonable likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
By:
/s/ Michael Pacult
Michael Pacult
President of TriView Capital Management, Inc.
Managing Member of the Registrant
Date:
November 19, 2012
EXHIBIT 32.01
CERTIFICATION BY CHIEF EXECUTIVE OFFICER &
CHIEF FINANCIAL OFFICER
I, Michael Pacult, the Chief Executive Officer and Chief Financial Officer of TriView Capital Management, Inc. as managing member of TriView Global Fund, LLC, certify that (i) the Form 10-Q for the period ended September 30, 2012 of TriView Global Fund, LLC fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and (ii) the information contained in the Form 10-Q for the period ended September 30, 2012 fairly presents, in all material respects, the financial condition and results of operations of TriView Global Fund, LLC.
TRIVIEW GLOBAL FUND, LLC
By:
TriView Capital Management, Inc., Managing Member
By:
/s/ Michael Pacult
Michael Pacult
Chief Executive Officer &
Chief Financial Officer
Date:
November 19, 2012
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Note 3: Managing Member Duties
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Sep. 30, 2012
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