-----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, JzWeJ6nRYtC4w9JTL0Zo9/Nqs1aV8IImIJz1+QR4RqAzSeRlLQVIQ7a1cGL91yZn LQs/At8HC+pPOqDw/1qa1Q== 0000950130-98-002540.txt : 19980512 0000950130-98-002540.hdr.sgml : 19980512 ACCESSION NUMBER: 0000950130-98-002540 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980511 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HENRY JOHN W & CO/MILLBURN L P CENTRAL INDEX KEY: 0000853456 STANDARD INDUSTRIAL CLASSIFICATION: [6221] IRS NUMBER: 061287586 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-18215 FILM NUMBER: 98615715 BUSINESS ADDRESS: STREET 1: WORLD FINANCIAL CTR SOUTH TWR-6TH FLR STREET 2: C/O ML FUTURE INVESTMENT PARTNERS INCAGE CITY: MERRILL LYNCH WORLD STATE: NY ZIP: 10080 BUSINESS PHONE: 2122364161 MAIL ADDRESS: STREET 1: MERRILL LYNCH & CO STREET 2: WORLD FINANCIAL CTR, SOUTH TOWER, 6TH FL CITY: NEW YORK STATE: NY ZIP: 10080-6106 10-Q 1 QUARTERLY REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1998 ---------------- OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ Commission File Number 0-18215 JOHN W. HENRY & CO./MILLBURN L.P. ------------------------------------- (Exact Name of Registrant as specified in its charter) Delaware 06-1287586 - -------------------------------- --------------------------------- (State or other jurisdiction of (IRS Employer Identification No.) incorporation or organization) c/o Merrill Lynch Investment Partners Inc. Merrill Lynch World Headquarters - South Tower, 6th Fl. World Financial Center New York, New York 10080-6106 ----------------------------------------------------- (Address of principal executive offices) (Zip Code) 212-236-9757 ------------------------------------------------------------- (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 ----- ----- PART I - FINANCIAL INFORMATION Item 1. Financial Statements JOHN W. HENRY & CO./MILLBURN L.P. (a Delaware limited partnership) ------------------------------ STATEMENTS OF FINANCIAL CONDITION ---------------------------------
March 31, December 31, 1998 1997 ---- ---- ASSETS - ------ Investments $58,674,167 $63,024,164 Receivable from investments 648,773 514,158 -------------------- -------------------- TOTAL $59,322,940 $63,538,322 ==================== ==================== LIABILITIES AND PARTNERS' CAPITAL - --------------------------------- LIABILITIES: Redemptions payable $648,773 $514,158 -------------------- -------------------- Total liabilities 648,773 514,158 -------------------- -------------------- PARTNERS' CAPITAL: General Partner: (780 and 780 Series A Units) 210,708 221,605 (1976 and 1976 Series B Units) 433,818 456,174 (1439 and 1439 Series C Units) 246,211 258,899 Limited Partners: (49850 and 50992 Series A Units) 13,466,561 14,487,473 (132929 and 135244 Series B Units) 29,184,879 31,223,304 (88436 and 91020 Series C Units) 15,131,990 16,376,709 -------------------- -------------------- Total partners' capital 58,674,167 63,024,164 -------------------- -------------------- TOTAL $59,322,940 $63,538,322 ==================== ==================== NET ASSET VALUE PER UNIT Series A (Based on 50630 and 51772 Units outstanding) $270.14 $284.11 ==================== ==================== Series B (Based on 134905 and 137220 Units outstanding) $219.55 $230.87 ==================== ==================== Series C (Based on 89875 and 92459 Units outstanding) $171.11 $179.92 ==================== ====================
See notes to financial statements. 2 JOHN W. HENRY & CO./MILLBURN L.P. --------------------------------- (a Delaware limited partnership) ------------------------------ STATEMENTS OF INCOME --------------------
For the three For the three months ended months ended March 31, March 31, 1998 1997 ------------------ -------------------- REVENUES: Income from investments $3,078,837 $3,723,108 ------------------ -------------------- NET INCOME $3,078,837 $3,723,108 ================== ==================== NET INCOME PER UNIT: Weighted average number of units outstanding 279,873 303,531 ================== ==================== Weighted average net income per Limited Partner and General Partner Unit $11.00 $12.27 ================== ====================
See notes to financial statements. 3 JOHN W. HENRY & CO./MILLBURN L.P. (a Delaware limited partnership) ------------------------------ STATEMENTS OF CHANGES IN PARTNERS' CAPITAL ------------------------------------------ For the three months ended March 31, 1998 and 1997 --------------------------------------------------
Units Limited Partners ----- ---------------- Series A Series B Series C Series A Series B Series C ------------ ------------- ------------ ----------------- ----------------- ----------------- PARTNERS' CAPITAL, December 31, 1996 56,376 148,528 100,695 $14,040,479 $30,082,484 $15,878,356 Redemptions (1,665) (3,133) (1,273) (451,037) (688,349) (219,031) Net income - - - 860,985 1,840,225 971,123 ------------ ------------- ------------ ----------------- ----------------- ----------------- PARTNERS' CAPITAL, March 31, 1997 54,711 145,395 99,422 $14,450,427 $31,234,360 $16,630,448 ============ ============= ============ ================= ================= ================= PARTNERS' CAPITAL, December 31, 1997 51,772 137,220 92,459 $14,487,473 $31,223,304 $16,376,709 Redemptions (1,142) (2,315) (2,584) (311,649) (511,234) (448,277) Net loss - - - (709,263) (1,527,191) (796,442) ------------ ------------- ------------ ----------------- ----------------- ----------------- PARTNERS' CAPITAL, March 31, 1998 50,630 134,905 89,875 $13,466,561 $29,184,879 $15,131,990 ============ ============= ============ ================= ================= ================= General Partner --------------- Series A Series B Series C Total ---------------- ---------------- ---------------- ----------------- PARTNERS' CAPITAL, - - December 31, 1996 $196,983 $405,594 $230,192 $60,834,088 Redemptions - - - (1,358,417) Net income 12,010 24,730 14,035 3,723,108 ---------------- ---------------- ---------------- ----------------- PARTNERS' CAPITAL, March 31, 1997 $208,993 $430,324 $244,227 $63,198,779 ================ ================ ================ ================= PARTNERS' CAPITAL, December 31, 1997 $221,605 $456,174 $258,899 $63,024,164 Redemptions - - - (1,271,160) Net loss (10,897) (22,356) (12,688) (3,078,837) ---------------- ---------------- ---------------- ----------------- PARTNERS' CAPITAL, March 31, 1998 $210,708 $433,818 $246,211 $58,674,167 ================ ================ ================ =================
See notes to financial statements. 4 JOHN W. HENRY & CO./MILLBURN L.P. (A Delaware Limited Partnership) ------------------------------ NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These financial statements have been prepared without audit. In the opinion of management, the financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position of John W. Henry & Co./Millburn L.P. (the "Partnership" or the "Fund") as of March 31, 1998 and the results of its operations for the three months ended March 31, 1998 and 1997. However, the operating results for the interim periods may not be indicative of the results expected for the full year. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with general accepted accounting principles have been omitted. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Partnership's Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 1997 (the "Annual Report"). As of December 1, 1996, the Partnership invested all of its assets in Trading LLCs. The Partnership was, thus, invested indirectly in the trading of derivative instruments, but did not itself hold any derivative positions. Consequently, no such positions subsequent to November 30, 1996 are reflected in these financial statements. 2. INVESTMENTS As of March 31, 1998 and December 31, 1997, the Partnership had investments in the ML JWH Financial and Metals Portfolio L.L.C. ("JWH LLC") and ML Millburn Global L.L.C. ("Millburn LLC") as follows: 1998 1997 ------------------ ------------------ JWH LLC $ 28,518,233 $ 31,979,914 Millburn LLC 30,155,934 31,044,250 ------------------ ------------------ Total $ 58,674,167 $ 63,024,164 ================== ================== 5 Total revenues and fees with respect to such investments is set forth as follows:
For the three months Total Brokerage Administrative Profit Loss from ended March 31, 1998 Revenue Commissions Fees Shares Investments ------------------- ---------------- ------------------ ------------------ ----------------- Series A Units JWH LLC $(493,612) $166,854 $4,392 $ - $(664,858) Millburn LLC 118,327 169,055 4,449 125 (55,302) ------------------- ---------------- ------------------ ------------------ ----------------- Total $(375,285) $335,909 $8,841 $125 $(720,160) =================== ================ ================== ================== ================= Series B Units JWH LLC $(1,059,688) $357,802 $9,416 $ - $(1,426,906) Millburn LLC 252,625 365,495 9,618 153 (122,641) ------------------- ---------------- ------------------ ------------------ ----------------- Total $(807,063) $723,297 $19,034 $153 $(1,549,547) =================== ================ ================== ================== ================= Series C Units JWH LLC $(554,018) $186,982 $4,921 $ - $(745,921) Millburn LLC 133,068 190,987 5,026 264 (63,209) ------------------- ---------------- ------------------ ------------------ ----------------- Total $(420,950) $377,969 $9,947 $264 $(809,129) =================== ================ ================== ================== ================= Total All Units JWH LLC $(2,107,318) $711,638 $18,729 $ - $(2,837,685) Millburn LLC 504,020 725,537 19,093 542 (241,152) ------------------- ---------------- ------------------ ------------------ ----------------- Total $(1,603,298) $1,437,175 $37,822 $542 $(3,078,837) =================== ================ ================== ================== =================
6
For the three months Total Brokerage Administrative Profit Income from ended March 31, 1997 Revenue Commissions Fees Shares Investments ----------------- ---------------- ------------------ ------------------ ------------------- Series A Units JWH LLC $263,141 $182,952 $4,464 $564 $75,161 Millburn LLC 1,218,823 206,509 5,040 209,441 797,833 ----------------- ---------------- ------------------ ------------------ ------------------- Total $1,481,964 $389,461 $9,504 $210,005 $872,994 ================= ================ ================== ================== =================== Series B Units JWH LLC $562,829 $393,474 $9,604 $795 $158,956 Millburn LLC 2,609,249 444,407 10,849 447,995 1,705,998 ----------------- ---------------- ------------------ ------------------ ------------------- Total $3,172,078 $837,881 $20,453 $448,790 $1,864,954 ================= ================ ================== ================== =================== Series C Units JWH LLC $297,018 $207,966 $5,076 $345 $83,631 Millburn LLC 1,379,039 235,001 5,737 236,772 901,529 ----------------- ---------------- ------------------ ------------------ ------------------- Total $1,676,057 $442,967 $10,813 $237,117 $985,160 ================= ================ ================== ================== =================== Total All Units JWH LLC $1,122,988 $784,392 $19,144 $1,704 $317,748 Millburn LLC 5,207,111 885,917 21,626 894,208 3,405,360 ----------------- ---------------- ------------------ ------------------ ------------------- Total $6,330,099 $1,670,309 $40,770 $895,912 $3,723,108 ================= ================ ================== ================== ===================
7 Condensed statements of financial condition as of March 31, 1998 and December 31, 1997 and statements of operations for the three months ended March 31, 1998 and 1997 are set forth as follows:
1998 1997 ----------------------------------------- ------------------------------------------ JWH Millburn JWH Millburn LLC LLC LLC LLC -------------------- -------------------- -------------------- -------------------- Assets $54,294,178 $33,747,360 $62,481,438 $35,584,936 ==================== ==================== ==================== ==================== Liabilities $431,357 $662,386 $1,122,533 $1,454,659 Members' Capital 53,862,821 33,084,974 61,358,905 34,130,277 -------------------- -------------------- -------------------- -------------------- Total $54,294,178 $33,747,360 $62,481,438 $35,584,936 ==================== ==================== ==================== ==================== Revenues $(4,026,600) $553,011 $2,281,696 $5,750,149 Expenses 1,342,197 813,068 1,487,835 1,975,225 -------------------- -------------------- -------------------- -------------------- Net (Loss) Income $(5,368,797) ($260,057) $793,861 $3,774,924 ==================== ==================== ==================== ====================
8 3. INCOME (LOSS) PER UNIT The profit and loss of the Series A, Series B and Series C Units for the three months ended March 31, 1998 and 1997 is as follows:
1998 1997 ------------------------------------------------- -------------------------------------------------- Series A Series B Series C Series A Series B Series C --------------- ---------------- ---------------- ---------------- --------------- ----------------- REVENUES: Income from investments $(720,160) $(1,549,547) $(809,130) $872,994 $1,864,954 $985,160 --------------- ---------------- ---------------- ---------------- --------------- ----------------- Total revenues (720,160) (1,549,547) (809,130) 872,994 1,864,954 985,160 --------------- ---------------- ---------------- ---------------- --------------- ----------------- NET (LOSS) INCOME $(720,160) $(1,549,547) $(809,130) $872,994 $1,864,954 $985,160 =============== ================ ================ ================ =============== ================= NET (LOSS) INCOME PER UNIT: Weighted average number of units outstanding 51,579 142,368 96,211 55,776 147,631 100,124 =============== ================ ================ ================ =============== ================= Weighted average net (loss) income per Limited Partner and General Partner Unit $(13.96) $(10.88) $(8.41) $15.65 $12.63 $9.84 =============== ================ ================ ================ =============== =================
9 Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations MONTH-END NET ASSET VALUE PER SERIES A UNIT Jan. Feb. Mar. ---------------------------------------- 1997 $273.52 $270.58 $267.94 ---------------------------------------- 1998 $281.00 $268.85 $270.14 ---------------------------------------- MONTH-END NET ASSET VALUE PER SERIES B UNIT Jan. Feb. Mar. --------------------------------------- 1997 $222.32 $219.93 $217.78 --------------------------------------- 1998 $228.36 $218.48 $219.55 --------------------------------------- MONTH-END NET ASSET VALUE PER SERIES C UNIT Jan. Feb. Mar. ---------------------------------------- 1997 $173.26 $171.40 $169.73 ---------------------------------------- 1998 $177.97 $170.27 $171.11 ---------------------------------------- Item 3. Quantitative and Qualitative Disclosures About Market Risk Not Applicable Performance Summary January 1, 1997 to March 31, 1997 In currency markets, the U.S. dollar rallied and started 1997 on a strong note, rising to a four-year high versus the Japanese yen and two-and-a-half year highs versus the Deutsche mark and the Swiss franc. Currency trading was profitable in January and February; March was, however, unprofitable. Global interest rate markets began the year on a volatile note, as investors evaluated economic data for signs of inflation. Interest rate trading was profitable in March; losses were sustained in January and February. January 1, 1998, to March 31, 1998 The Fund's most profitable positions during the quarter were in the global interest rate markets. In Europe, an extended bond market rally continued despite an environment of robust growth in the United States, Canada and the United Kingdom, as well as a strong pick-up in growth in continental Europe. Gold prices drifted sideways and lower as Asian demand continued to slow and demand in the Middle East was affected by low oil prices. Trading results in stock index markets were mixed, but unprofitable, despite a strong first-quarter performance by the U.S. equity market as several consecutive weekly gains were recorded with most market averages setting new highs. Results in currency trading were also mixed, but unprofitable. In particular, the Swiss franc weakened versus the U.S. dollar. 10 PART II - OTHER INFORMATION Item 1. Legal Proceedings There are no pending legal proceedings to which the Partnership or the General Partner is a party. Item 2. Changes in Securities and Use of Proceeds (a) None. (b) None. (c) None. (d) None. Item 3. Defaults Upon Senior Securities None. Item 4. Submission of Matters to a Vote of Security Holders None. Item 5. Other information Mr. Michael A. Karmelin, Chief Financial Officer, Vice President and Treasurer of Merrill Lynch Investment Partners Inc. ("MLIP"), has announced that he will resign from MLIP effective April 15, 1998 to pursue other business opportunities. MLIP expects to announce his successor in the near future. Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits -------- There are no exhibits required to be filed as part of this report. (b) Reports on Form 8-K ------------------- There were no reports on Form 8-K filed during the first three months of fiscal 1998. 11 SIGNATURES 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. JOHN W. HENRY & CO./MILLBURN L.P. By: MERRILL LYNCH INVESTMENT PARTNERS INC. (General Partner) Date: May 11, 1998 By /s/JOHN R. FRAWLEY, JR. ----------------------- John R. Frawley, Jr. Chairman, Chief Executive Officer, President and Director Date: May 11, 1998 By /s/ SERGIO M. PAVONE -------------------- Sergio M. Pavone Vice President and Controller (Chief Accounting Officer) EX-27 2 FINANCIAL DATA SCHEDULE
BD 3-MOS 3-MOS DEC-31-1998 DEC-31-1997 JAN-01-1998 JAN-01-1997 MAR-31-1998 MAR-31-1997 0 0 59,322,940 63,659,714 0 0 0 0 0 0 0 0 59,322,940 63,659,714 0 0 648,773 460,935 0 0 0 0 0 0 0 0 0 0 0 0 0 0 58,674,167 63,198,779 59,322,940 63,659,714 0 0 0 0 0 0 3,078,837 3,723,108 0 0 0 0 0 0 3,078,837 3,723,108 3,078,837 3,723,108 0 0 0 0 3,078,837 3,723,108 11.00 12.27 11.00 12.27
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