-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Nn2u8gJ/mSCufgwGFlTeLxXm304r24XnKhM+lh1xW/cawCk86OGZOA7svlk5A/Y/ saqw243CiEPrAWgVo1MnIQ== 0000950123-96-002434.txt : 19960517 0000950123-96-002434.hdr.sgml : 19960517 ACCESSION NUMBER: 0000950123-96-002434 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960515 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SLH PERFORMANCE PARTNERS FUTURES FUND LP CENTRAL INDEX KEY: 0000841941 STANDARD INDUSTRIAL CLASSIFICATION: OIL ROYALTY TRADERS [6792] IRS NUMBER: 133486116 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-18467 FILM NUMBER: 96566398 BUSINESS ADDRESS: STREET 1: 390 GREENWICH ST 1ST FLR STREET 2: C/O SMITH BARNEY FUTURES MGMT INC CITY: NEW YORK STATE: NY ZIP: 10013 BUSINESS PHONE: 2127235424 MAIL ADDRESS: STREET 1: C/O SMITH BARNEY FUTURES MANAGEMENT INC STREET 2: 390 GREENWICH ST 1ST FLOOR CITY: NEW YORK STATE: NY ZIP: 10013 10-Q 1 SLH PERFORMANCE PARTNERS FUTURES FUND LP 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (X) QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ( ) TRANSITION REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter ended March 31, 1996 Commission File Number 0-18467 SLH PERFORMANCE PARTNERS FUTURES FUND L.P. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 13-3486116 - -------------------------------------------------------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) c/o Smith Barney Futures Management Inc. 390 Greenwich St. - 1st. Fl. New York, New York 10013 - -------------------------------------------------------------------------------- (Address and Zip Code of principal executive offices) (212) 723-5424 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) 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 --- --- 2 SLH PERFORMANCE PARTNERS FUTURES FUND L.P. FORM 10-Q INDEX
Page Number ------ PART I - Financial Information: Item 1. Financial Statements: Statements of Financial Condition at March 31, 1996 and December 31, 1995. 3 Statements of Income and Expenses and Partners' Capital for the Three Months ended March 31,1996 and 1995. 4 Notes to Financial Statements 5 - 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7 - 8 PART II - Other Information 9
2 3 PART I Item 1. Financial Statements SLH PERFORMANCE PARTNERS FUTURES FUND L.P. STATEMENTS OF FINANCIAL CONDITION
MARCH 31, DECEMBER 31, 1996 1995 ---------- ------------ ASSETS (Unaudited) Equity in commodity futures trading account: Cash and cash equivalents $2,931,477 $3,219,888 Net unrealized depreciation on open futures contracts 34,835 116,804 ---------- ---------- 2,966,312 3,336,692 Interest receivable 10,124 12,031 ---------- ---------- $2,976,436 $3,348,723 ========== ========== LIABILITIES AND PARTNERS' CAPITAL Liabilities: Accrued expenses: Commissions 18,601 $ 20,929 Management fees 5,530 6,217 Incentive fees 0 1,896 Other 31,920 21,986 Redemptions payable 96,752 119,161 ---------- ---------- 152,803 170,189 ---------- ---------- Partners' Capital General Partner, 24 Unit equivalents outstanding in 1996 and 1995 30,553 33,254 Limited Partners, 2,194 and 2,270 Units of Limited Partnership Interest outstanding in 1996 and 1995, respectively 2,793,080 3,145,280 ---------- ---------- 2,823,633 3,178,534 ---------- ---------- $2,976,436 $3,348,723 ========== ==========
See Notes to Financial Statements. 3 4 SLH PERFORMANCE PARTNERS FUTURES FUND L.P. STATEMENTS OF INCOME AND EXPENSES AND PARTNERS' CAPITAL (UNAUDITED)
THREE-MONTHS ENDED MARCH 31, ================================= 1996 1995 ----------- ----------- Income: Net gains (losses) on trading of commodity futures: Realized losses on closed positions ($ 112,428) ($ 119,633) Change in unrealized gains/losses on open positions (81,969) 574,396 ----------- ----------- (194,397) 454,763 Less, brokerage commissions and clearing fees ($1,548 and $1,484, respectively) (65,765) (75,655) ----------- ----------- Net realized and unrealized gains (losses) (260,162) 379,108 Interest income 31,025 38,821 ----------- ----------- (229,137) 417,929 ----------- ----------- Expenses: Incentive fees 0 72,152 Management fees 17,418 15,535 Other 11,594 10,089 ----------- ----------- 29,012 97,776 ----------- ----------- Net income (loss) (258,149) 320,153 Redemptions (96,752) (316,777) ----------- ----------- Net increase (decrease) in Partners' capital (354,901) 3,376 Partners' capital, beginning of period 3,178,534 3,455,515 ----------- ----------- Partners' capital, end of period $ 2,823,633 $ 3,458,891 =========== =========== Net asset value per Unit (2,218 and 2,697 Units outstanding at March 31, 1996 and 1995, respectively) $ 1,273.05 $ 1,282.50 =========== =========== Net income (loss) per Unit of Limited Partnership Interest and General Partnership Unit equivalent $ (112.54) $ 108.75 ========== ===========
See Notes to Financial Statements. 4 5 SLH PERFORMANCE PARTNERS FUTURES FUND L.P. NOTES TO FINANCIAL STATEMENTS March 31, 1996 (Unaudited) General SLH Performance Partners Futures Fund L.P. (the "Partnership") was organized under the laws of the State of Delaware on October 3, 1988. The Partnership engages in the speculative trading of commodity interests including forward contracts on foreign currencies, commodity options and commodity futures contracts on U.S. Treasuries and certain other financial instruments and foreign currencies. The commodity interests that are traded by the Partnership are volatile and involve a high degree of market risk. The Partnership commenced trading operations on June 6, 1989. Smith Barney Futures Management Inc. acts as the general partner (the "General Partner") of the Partnership. Smith Barney Inc. ("SB"), an affiliate of the General Partner, acts as commodity broker for the Partnership. All trading decisions for the Partnership are being made by SJO, Inc. and Hyman Beck & Company, Inc. (the "Advisors"). The accompanying financial statements are unaudited but, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the Partnership's financial condition as of March 31, 1996 and the results of its operations for the three months ended March 31, 1996 and 1995. These financial statements present the results of interim periods and do not include all disclosures normally provided in annual financial statements. It is suggested that these financial statements be read in conjunction with the financial statements and notes included in the Partnership's annual report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 1995. Due to the nature of commodity trading, the results of operations for the interim periods presented should not be considered indicative of the results that may be expected for the entire year. 5 6 SLH PERFORMANCE PARTNERS FUTURES FUND L.P. NOTES TO FINANCIAL STATEMENTS March 31, 1996 (Continued) Net Asset Value Per Unit Changes in net asset value per Unit for the three months ended March 31, 1996 and 1995 were as follows:
THREE MONTHS ENDED MARCH 31, 1996 1995 ---------------------------- Net realized and unrealized gains (losses) $ (113.41) $ 128.76 Interest income 13.52 13.18 Expenses (12.65) (33.19) --------- --------- Increase (decrease) for period (112.54) 108.75 Net Asset Value per Unit, beginning of period 1,385.59 1,173.75 --------- --------- Net Asset Value per Unit, end of period $1,273.05 $1,282.50 ========= =========
6 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Liquidity and Capital Resources The Partnership does not engage in the sale of goods or services. Its only assets are its equity in its commodity futures trading account, net unrealized appreciation (depreciation) on open futures contracts and interest receivable. Because of the low margin deposits normally required in commodity futures trading, relatively small price movements may result in substantial losses to the Partnership. While substantial losses could lead to a decrease in liquidity, no such losses occurred in the first quarter of 1996. The Partnership is party to financial instruments with off- balance sheet risk, including derivative financial instruments and derivative commodity instruments, in the normal course of its business. These financial instruments include forwards, futures and options, whose value is based upon an underlying asset, index, or reference rate, and generally represent future commitments to exchange currencies or cash flows, or to purchase or sell other financial instruments at specified terms at specified future dates. Each of these instruments is subject to various risks similar to those relating to the underlying financial instruments including market and credit risk. The General Partner monitors and controls the Partnership's risk exposure on a daily basis through financial, credit and risk management monitoring systems and, accordingly believes that it has effective procedures for evaluating and limiting the credit and market risks to which the Partnership is subject. The Partnership's capital consists of the capital contributions of the partners as increased or decreased by gains or losses on commodity futures trading, expenses, interest income, redemptions of Units and distributions of profits, if any. For the three months ended March 31, 1996, Partnership capital decreased 11.2% from $3,178,534 to $2,823,633. This decrease was attributable to the redemption of 76 limited partnership Units resulting in an outflow of $96,752 and by a net loss from operations of $258,149 for the three months ended March 31, 1996. Future redemptions can impact the amount of funds available for investments in commodity contract positions in subsequent periods. Results of Operations During the Partnership's first quarter of 1996, the net asset value per Unit decreased 8.1% from $1,385.59 to $1,273.05 as compared to the first quarter of 1995 in which the net asset value 7 8 per Unit increased 9.3%. The Partnership experienced a net trading loss before commissions and expenses in the first quarter of 1996 of $194,397. Losses were recognized in the trading of commodity futures in interest rates, precious metals, stock indices, currencies and agricultural products. The Partnership experienced a net trading gain before commissions and expenses in the first quarter of 1995 of $454,763. Gains were primarily realized in the trading of commodity futures in metals, agricultural products and stock indices which were partially offset by losses realized in the trading of grains and financials. Commodity futures markets are highly volatile. Broad price fluctuations and rapid inflation increase the risks involved in commodity trading, but also increase the possibility of profit. The profitability of the Partnership depends on the existence of major price trends and the ability of the Advisors to identify correctly those price trends. These price trends are influenced by, among other things, changing supply and demand relationships, weather, governmental, agricultural, commercial and trade programs and policies, national and international political and economic events and changes in interest rates. To the extent that market trends exist and the Advisors are able to identify them, the Partnership expects to increase capital through operations. Interest income on 80% of the Partnership's daily average equity was earned on the monthly average 13-week U.S. Treasury bill yield. Interest income for the three months ended March 31, 1996 decreased by $7,796, as compared to the corresponding period in 1995. This decrease was attributable to a decrease in interest rates in the first quarter of 1996 as compared to 1995 coupled with the effect of redemptions on the Partnership's equity maintained in cash. Brokerage commissions are calculated on the adjusted net asset value on the last day of each month and, therefore, vary according to trading performance and redemptions. Accordingly, they must be compared in relation to the fluctuations in the monthly net asset values. Commissions and clearing fees for the three months ended March 31, 1996 decreased by $9,890, as compared to the corresponding period in 1995. Management fees are calculated as a percentage of the Partnership's net asset value as of the end of each month and are affected by trading performance and redemptions. Management fees for the three months ended March 31, 1996 increased by $1,883, as compared to the corresponding period in 1995. This increase in management fees is the result of an overpayment of management fees in 1994 that was adjusted in the first quarter of 1995. Incentive fees are based on the new appreciation generated by each Advisor as defined in the advisory agreements between the Partnership, the General Partner and each Advisor. No incentive fees were earned during the three months ended March 31, 1996. Trading performance for the three months ended March 31, 1995 resulted in incentive fees of $72,152. 8 9 PART II OTHER INFORMATION Item 1. Legal Proceedings - None Item 2. Changes in Securities - None Item 3. Defaults Upon Senior Securities - None Item 4. Submission of Matters to a Vote of Security Holders - None Item 5. Other Information - None Item 6. (a) Exhibits - None (b) Reports on Form 8-K - None 9 10 SIGNATURES Pursuant to the requirements of Section 13 or 15 (d) 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. SLH PERFORMANCE PARTNERS FUTURES FUND L.P. By: Smith Barney Futures Management Inc. ------------------------------------ (General Partner) By: /s/ David J.Vogel, President David J. Vogel, President Date: 5/10/96 ------------------- Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: Smith Barney Futures Management Inc. ------------------------------------ (General Partner) By: /s/ David J.Vogel, President ------------------------------------ David J. Vogel, President Date: 5/10/96 ------------------- By: /s/ Daniel A. Dantuono ------------------------------------ Daniel A. Dantuono Chief Financial Officer and Director Date: 5/10/96 ------------------- 10 11 EXHIBIT INDEX ------------- Exhibit No. Description - ------- ----------- 27 Financial Data Schedule EX-27 2 FINANCIAL DATA SCHEDULE
5 0000841941 SLH PERFORMANCE PARTNERS FUTURES FUND L.P. 3-MOS DEC-31-1996 JAN-01-1996 MAR-31-1996 2,931,477 34,835 10,124 0 0 2,976,436 0 0 2,976,436 152,803 0 0 0 0 2,823,633 2,976,436 0 (229,137) 0 0 29,012 0 0 (258,149) 0 0 0 0 0 (258,149) (112.54) 0
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