-----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, AVc5IOZXiFMjadhtYH2UyJHYhZ2xgL1IK41TfJ9nxMCIojJ2zm0dLWo9W4TaBwmS LWIsJWhS+wQk4KhFoXBl7w== 0000865549-06-000004.txt : 20060814 0000865549-06-000004.hdr.sgml : 20060814 20060814164026 ACCESSION NUMBER: 0000865549-06-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20060630 FILED AS OF DATE: 20060814 DATE AS OF CHANGE: 20060814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ATLAS FUTURES FUND LIMITED PARTNERSHIP CENTRAL INDEX KEY: 0000865549 STANDARD INDUSTRIAL CLASSIFICATION: [6221] IRS NUMBER: 510380494 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-53111 FILM NUMBER: 061031159 BUSINESS ADDRESS: STREET 1: 5916 N 300 WEST CITY: FREMONT STATE: IN ZIP: 46737 BUSINESS PHONE: 2198331306 MAIL ADDRESS: STREET 1: 5916 N 300 WEST CITY: FREMONT STATE: IN ZIP: 46737 10-Q 1 a10q0606.txt 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 June 30, 2006 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 333-59976 Atlas Futures Fund, Limited Partnership (Exact name of registrant as specified in its charter) Delaware 51-0380494 (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 is an accelerated filer (as defined in Exchange Act Rule 12b-2) Yes No X Part 1 - FINANCIAL INFORMATION Item 1. Financial Statements. The reviewed financial statements for the Registrant for the six months ended June 30, 2006 are attached hereto and made a part hereof. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. General Information During the past quarter and in the future, Registrant, did and will, pursuant to the terms of the Limited Partnership Agreement, engage in the business of speculative and high risk trading of commodity futures and options markets through the services of one or more commodity trading advisors it selects. Description of Fund Business The Fund grants the commodity trading advisors a power of attorney that is terminable at the will of either party to trade the equity assigned by the Fund. Currently, the Fund has granted powers to two commodity trading advisors, Clarke Capital Management, Inc. and NuWave Investment Corp. Clarke trades approximately 80% of the Fund's equity made available for trading and NuWave trades the other 20%. The commodity trading advisors have sole discretion to select the trades and do not disclose the methods they use to make those determinations in their disclosure documents or to the Fund or general partner. There is no promise or expectation of a fixed return to the partners. The partners 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. Assets The Fund assets consist of cash used as margin to secure futures (formerly called commodity) trades entered on its behalf by the commodity trading advisors it selects. The Fund deposits its cash with one or more futures commission merchants (brokers) who hold and allocate the cash to use as margin to secure the trades made. The futures held in the Fund accounts are valued at the market price on the close of business each day by the Futures Commission Merchant or Merchants that hold the Fund equity made available for trading. The Capital accounts of the Partners are immediately responsible for all profit and losses incurred by trading and payment and accrual of the expenses of offering partnership interests for sale and the operation of the partnership. The fixed costs of operation of the Fund include continuing offering costs, a management fee to NuWave of 2% of equity assigned to it to trade, fixed brokerage commissions of 11%, and accounting and legal fees that must be paid before the limited partners 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 futures commission merchant 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 limited partners are not personally liable for the debts of the Fund, including any trading losses. The Registrant will continue to offer Units for sale to the public via its fully amended and restated prospectus dated February 6, 2006 until the balance, as of June 30, 2006, of $2,438,775 in face amount of Units are sold. As of June 30, 2006, of the $15,000,000 of Units registered, $12,561,225 has been sold and upon redemption by the holder, will not be resold. Absent the registration of additional Units, the Fund will be capitalized at $15,000,000 subject to redemption of Units by the holders as they request which are expected to be honored by the General Partner. 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 General Partner selects the futures commission merchants to hold the Fund assets. Both the commodity trading advisors and the general partner 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 general partner intends to allocate approximately 97% 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. To have the purchase price or appreciation, if any, of the Units, paid to them, partners must use the redemption feature of the Partnership. Distributions, although possible in the sole discretion of the general partner, are not expected to be made. The General Partner is not expected to make distributions. There is no current market for the Units sold, none is expected to develop and the partnership agreement limits the ability of a partner to transfer the Units. Results of Operations The Fund results after payment and accrual of expenses for the first six months of 2006 was a loss of $374,086 and for the six months of 2005 was a profit of $1,772,183. The profits were generated by the commodity trading advisors by methods that are proprietary to them. These results are not to be construed as an expectation of similar profits in the future. Quantitative and Qualitative Disclosures about Market Risk The business of the Fund is speculative and involves a high degree of risk of loss. 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 general partner 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 Certified Public Accounting Firm and then are reviewed each quarter and audited each year by a different independent CPA firm. Internal Control over Financial Reporting Each month, the general partner reviews the profit and loss statements for the month and once approved each partner is sent a statement to disclose total Fund performance and the amount in the partner's capital account. Checks are paid for expenses only upon approval of invoices submitted to the general partner or pursuant to standing authorizations for periodic fixed expenses. Payment of a redemption is only upon receipt of a request form signed by the person with authority over the partner's account. The general partner balances the daily account information with the monthly compilation and financial statements prepared by the independent CPA. 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. Exhibits and Reports on Form 8-K (a) None (b) None 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 June 30, 2006, to be signed on its behalf by the undersigned, thereunto duly authorized. Registrant: Atlas Futures Fund, Limited Partnership By Ashley Capital Management, Incorporated Its General Partner By: /s/ Michael Pacult Mr. Michael Pacult Sole Director, Sole Shareholder, President, and Treasurer of the General Partner Date: August 14, 2006 **************************************************************************** ATLAS FUTURES FUND, LIMITED PARTNERSHIP (A Delaware Limited Partnership) INDEX TO FINANCIAL STATEMENTS Page Accountants' Review Report F-2 Financial Statements Balance Sheets as of June 30, 2006 and December 31, 2005 F-3 Schedules of Investments as of June 30, 2006 and December 31, 2005 F-4 - F-9 Statements of Operations for the Three and Six Months Ended June 30, 2006 and 2005 F-10 Statements of Partners' Equity for the Six Months Ended June 30, 2006 and 2005 F-11 Statements of Cash Flows for the Six Months Ended June 30, 2006 and 2005 F-12 Notes to Financial Statements F-13 - F-19 F-1 Frank L. Sassetti & Co. Certified Public Accountants To The Partners Atlas Futures Fund, Limited Partnership Dover, Kent County, Delaware REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM We have reviewed the balance sheet, including the schedule of investments, of ATLAS FUTURES FUND, LIMITED PARTNERSHIP as of June 30, 2006 and the related statements of operations for the three and six months ended June 30, 2006 and 2005, and the statements of partners' equity and cash flows for the six months ended June 30, 2006 and 2005. These financial statements are the responsibility of the Partnership's management. 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 to financial data and making inquires of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with auditing standards generally accepted in the 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. Based on our review we are not aware of any material modifications that should be made to the financial statements referred to above for them to be in conformity with accounting principles generally accepted in the United States. We have previously audited, in accordance with auditing standards of the Public Company Accounting Oversight Board (United States), the balance sheet, including the schedule of investments, of ATLAS FUTURES FUND, LIMITED PARTNERSHIP as of December 31, 2005 and the related statements of operations, partner's equity and cash flows for the year then ended (not presented herein); and in our report dated February 24, 2006, we expressed an unqualified opinion on these financial statements. In our opinion, the information set forth in the accompanying balance sheet as of December 31, 2005 is fairly stated, in all material respects, in relation to the balance sheet from which it has been derived. /s/ Frank L. Sassetti & Co. August 11, 2006 Oak Park, Illinois 6611 W. North Avenue * Oak Park, Illinois 60302 * Phone (708) 386-1433 * Fax (708) 386-0139 F-2 ATLAS FUTURES FUND, LIMITED PARTNERSHIP (A Delaware Limited Partnership) BALANCE SHEETS JUNE 30, 2006 AND DECEMBER 31, 2005 ASSETS June 30, 2006 December 31, (A Review) 2005 Investments Equity in Commodity Futures Trading Accounts - Cash and cash equivalents $16,732,061 $16,822,678 Net unrealized gain (loss) on open commodity futures contracts (42,095) 250,902 16,689,966 17,073,580 Cash 91,604 88,004 Accrued interest receivable 51,662 34,073 $16,833,232 $17,195,657 LIABILITIES AND PARTNERS' EQUITY LIABILITIES Partner redemptions payable $ 286,648 $ 117,164 Accrued trading commissions payable 6,167 15,555 Accrued management fees 12,515 13,110 Incentive fees payable 67,052 170,919 Other accrued liabilities 49,908 37,128 Total Liabilities 422,290 353,876 PARTNERS' EQUITY Limited partners - (4,987.12 and 5,016.79 units) 16,410,942 16,841,781 General partner - (0 units) - - Total Partners' Equity 16,410,942 16,841,781 $16,833,232 $17,195,657 See accompanying notes. F-3 ATLAS FUTURES FUND, LIMITED PARTNERSHIP (A Delaware Limited Partnership) SCHEDULE OF INVESTMENTS JUNE 30, 2006 Contracts Value Percent United States Commodity Futures Positions, Held Long: 66 Aug '06 CME Cattle $(22,920) (0.13)% 63 Aug '06 IPE Br Crude 38,430 0.23 63 Aug '06 IPE Oil Gas (12,050) (0.07) 1 Dec '06 CBOT Corn 75 0.00 12 Sep '06 CBOT Wheat 10,513 0.06 3 Oct '06 CSC Sugar 3,427 0.02 1 Aug '06 NY LT Crude 3,840 0.02 3 Aug '06 NY Heating Oil (1,121) (0.00) 1 Sep '06 LME Alum (6,513) (0.04) 3 Sep '06 IMM Australian Dollar (915) (0.01) 5 Sep '06 IMM Canadian Dollar (8,300) (0.05) 3 Sep '06 IMM Euro 5,981 0.04 15 March '07 IMM Euro Dollar (200) (0.00) 9 Sep '06 E-Mini S&P 5,738 0.03 Total United States Commodity Futures Positions 15,985 0.10 Japanese Commodity Futures Positions, Held Long: 4 Sep '06 SGX Mini JGB (1,188) (0.01) Total Japanese Commodity Futures Positions (1,188) (0.01) British Commodity Futures Positions, Held Long: 2 Sep '06 New FTSE 100 10,953 0.07 Total British Commodity Futures Positions 10,953 0.07 Hong Kong Commodity Futures Positions, Held Long: 1 Jul '06 HK Hang Seng 2,858 0.02 Total Hong Kong Commodity Futures Positions 2,858 0.02 See accompanying notes. F-4 ATLAS FUTURES FUND, LIMITED PARTNERSHIP (A Delaware Limited Partnership) SCHEDULE OF INVESTMENTS- CONTINUED JUNE 30, 2006 Contracts Value Percent Australian Commodity Futures Positions, Held Long: 1 Sep '06 SFE 10 Y T-Bond $ (623) (0.00)% Total Australian Commodity Futures Positions (623) (0.00) European Commodity Futures Positions, Held Long: 4 Sep '06 Eurx E-Bund (8,708) (0.05) 1 Sep '06 DAX Index 8,967 0.05 3 Jul '06 MONEP CAC 40 EU 10,358 0.06 Total European Commodity Futures Positions 10,617 0.06 Total Commodity Futures Positions Long 38,602 0.24 United States Commodity Futures Positions, Sold Short: 63 Dec '06 CBOT Corn (11,813) (0.07) 67 Nov '06 CBOT Soybeans (33,375) (0.20) 127 Sep '06 CBT Note 10 Y (15,313) (0.09) 63 Sep '06 CBT Note 2 Y 25,594 0.15 63 Dec '06 NYC Cotton 42,210 0.25 66 Sep '06 IMM B-Pounds (85,919) (0.51) 63 Sep '06 IMM Swiss Franc (95,288) (0.57) 1 Sep '06 CMX Silver (3,095) (0.02) 1 Sep '06 LME Copper 20,750 0.12 Total United States Commodity Futures Positions, Sold Short (156,249) (0.94) British Commodity Futures Positions, Held Short: 127 Sep '06 Lif Long Gilt 95,735 0.57 35 Mar '07 Lif 3 M Sterling (4,849) (0.03) Total British Commodity Futures Positions 90,886 0.54 See accompanying notes. F-5 ATLAS FUTURES FUND, LIMITED PARTNERSHIP (A Delaware Limited Partnership) SCHEDULE OF INVESTMENTS- CONTINUED JUNE 30, 2006 Contracts Value Percent Australian Commodity Futures Positions, Held Short: 63 Sep '06 SFE 3 Y T-Bond $ (10,194) (0.06)% Total Australian Commodity Futures Positions (10,194) (0.06) European Commodity Futures Positions, Held Long: 63 Sep '06 Eurx E-BOBL (12,084) (0.07) 63 Sep '06 Eurx E-Bund 806 0.00 12 Mar '07 Lif 3 M Euribor 6,138 0.04 Total European Commodity Futures Positions (5,140) (0.03) Total Commodity Futures Positions Short (80,697) (0.49) Net Commodity Futures Positions (42,095) (0.25) Cash and Cash Equivalents in Trading Accounts: Sep '06 United States Treasury Bills ($11,500,000 Face Value) 11,363,765 68.09 Aug '06 United States Treasury Bills ($4,00,000 Face Value) 3,954,661 23.69 Jul '06 United States Treasury Bills ($800,000 Face Value) 791,304 4.74 United States Markets 306,603 1.84 European Markets 518,361 3.10 Hong Kong Markets (2,338) (0.01) British Pound Markets (158,980) (0.95) Australian Dollar Markets (89,268) (0.53) Japanese Yen Markets 47,953 0.28 Total Cash and Cash Equivalents in Trading Accounts 16,732,061 100.25 Total Investments $16,689,966 100.00% See accompanying notes. F-6 ATLAS FUTURES FUND, LIMITED PARTNERSHIP (A Delaware Limited Partnership) SCHEDULE OF INVESTMENTS DECEMBER 31, 2005 Contracts Value Percent United States Commodity Futures Positions, Held Long: 68 Mar '06 CBOT Soybeans $(32,162) (0.19)% 62 Mar '06 CBT Bean Meal (29,140) (0.17) 62 Mar '06 CBT T-Bonds (9,688) (0.06) 76 Feb '06 CME Cattle 18,540 0.11 62 Mar '06 CMX HG Copper 19,200 0.11 8 Jan '06 LME Alum US 51,081 0.30 2 Mar '06 LME Alum US 1,087 0.01 1 Jan '06 LME Copper 13,022 0.08 58 Mar '06 CSC Sugar II 187,656 1.10 62 Mar '06 KC Wheat 4,288 0.03 62 Mar '06 IMM Mex Peso 11,963 0.07 2 Mar '06 IMM B-Pounds (6,400) (0.04) 5 Mar '06 IMM Canadian $ (2,200) (0.01) 19 Mar '06 CBOT Corn 8,800 0.05 2 Mar '06 CBOT Wheat 238 0.00 1 Feb '06 CMX Gold 2,260 0.01 1 Mar '06 CMX Silver 200 0.00 8 Mar '06 Emini S&P 500 (4,000) (0.02) 4 Feb '06 NY LT Crude 1,810 0.01 1 Feb '06 NY Heating Oil 3,352 0.02 1 Feb '06 NY Unlead Gas 7,178 0.04 1 Feb '06 NY Natural Gas (1,050) (0.01) Total United States Commodity Futures Positions 246,035 1.44 Japanese Commodity Futures Positions, Held Long: 5 Mar '06 SGX MINI JGB 2,117 0.01 4 Mar '06 SMX Nikkei 8,298 0.05 Total Japanese Commodity Futures Positions 10,415 0.06 European Commodity Futures Positions, Held Long: 3 Mar '06 DAB Dax Index 9,488 0.06 1 Mar '06 Eurex E-Bund 71 0.00 Total European Commodity Futures Positions 9,559 0.06 The accompanying notes are an integral part of the financial statements. F-7 ATLAS FUTURES FUND, LIMITED PARTNERSHIP (A Delaware Limited Partnership) SCHEDULE OF INVESTMENTS December 31, 2005 Contracts Value Percent British Commodity Futures Positions, Held Long: 5 Mar '06 NEW FTSE 100 $ 7,646 0.04 % 5 Mar '06 LIF Long Gilt 6,100 0.04 9 Sep '06 CAP 3M STG 21 0.00 Total British Commodity Futures Positions 13,767 0.08 Hong Kong Commodity Futures Positions, Held Long: 5 Jan '06 HG (9,511) (0.05) Total Hong Kong Commodity Futures Positions (9,511) (0.05) Australian Commodity Futures Positions, Held Long: 1 Mar '06 SFE SPI 200 2,459 0.02 6 Mar '06 SFE 10Y T-Bond 9,224 0.05 62 Mar '06 SFE 3Y T-Bond 7,581 0.04 Total Australian Commodity Futures Positions 19,264 0.11 Total Commodity Futures Positions 289,529 1.70 United States Commodity Futures Positions, Sold Short: 58 Mar '06 CBT T-Note 2Y (12,813) (0.08) 65 Mar '06 IMM Euro FX (28,656) (0.17) 65 Mar '06 IMM Euro DLR 23,825 0.14 3 Mar '06 CSC Coffee C (7,819) (0.05) 5 Mar '06 IMM J YEN (10,406) (0.06) Total United States Commodity Futures Positions (35,869) (0.22) The accompanying notes are an integral part of the financial statements. F-8 ATLAS FUTURES FUND, LIMITED PARTNERSHIP (A Delaware Limited Partnership) SCHEDULE OF INVESTMENTS December 31, 2005 Contracts Value Percent European Commodity Futures Positions, Held Short: 9 Sep '06 LIF 3M Euribar $ 399 0.00 % 2 Jan '06 3M Monep CAC40 EU (1,088) (0.01) 62 Mar '06 Euro E-Schatz (2,069) (0.01) Total Euro Commodity Futures Positions (2,758) (0.02) Total Commodity Futures Positions, Sold Short (38,627) (0.24) Net Commodity Futures Positions 250,902 1.46 Cash and Cash Equivalents in Trading Accounts: Mar '06 United States Treasury Bill ($10,900,000 Face Value) 10,795,349 63.24 Mar '06 United States Treasury Bill ($1,800,000 Face Value) 1,782,533 10.44 Feb '06 United States Treasury Bill ($1,100,000 Face Value) 1,089,456 6.38 Feb '06 United States Treasury Bill ($600,000 Face Value) 594,226 3.48 Jan '06 United States Treasury Bill ($580,000 Face Value) 574,508 3.36 United States Markets 1,516,844 8.88 Euro Markets 592,040 3.47 British Pound Markets (91,011) (0.53) Australian Dollar Markets (85,440) (0.50) Hong Kong Dollar Markets 1,724 0.01 Japanese Yen Markets 52,449 0.31 Total Cash and Cash Equivalents in Trading Accounts 16,822,678 98.54 Total Investments $17,073,580 100.00 % The accompanying notes are an integral part of the financial statements. F-9 ATLAS FUTURES FUND, LIMITED PARTNERSHIP (A Delaware Limited Partnership) STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2006 AND 2005 (A Review) Three months ended Six months ended June 30, June 30, 2006 2005 2006 2005 INVESTMENT AND OTHER INCOME Interest income $173,980 $80,735 $325,575 $140,391 Total Income 173,980 80,735 325,575 140,391 EXPENSES Commissions 459,708 397,001 923,651 733,959 Management fees 12,527 9,850 25,073 15,988 Incentive fees 67,052 99,165 67,052 770,117 Professional accounting and legal fees 31,506 49,621 64,500 70,796 Other operating and administrative expenses (803) 2,914 721 8,679 Total Expenses 569,990 558,551 1,080,997 1,599,539 Net Investment Loss (396,010) (477,816) (755,422)(1,459,148) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Realized gain from trading in futures 2,195,744 502,586 640,783 3,053,456 Realized gain (loss) on exchange rate fluctuation 13,300 (8,691) 33,547 (17,898) Changes in unrealized gains (losses) on open commodity open futures contracts (377,674) (32,051) (292,994) 195,773 Total Realized and Unrealized Gains on Investments 1,831,370 461,844 381,336 3,231,331 NET INCOME (LOSS) $1,435,360 $(15,972)$(374,086)$1,772,183 NET INCOME (LOSS)- Limited partnership unit $287.51 $(3.46) $(74.59) $395.32 General partnership unit $- $- $- $- Weighted average partnership units outstanding: Limited units 4,992.36 4,617.38 5,015.09 4,482.88 General units - - - - The accompanying notes are an integral part of the financial statements. F-10 ATLAS FUTURES FUND, LIMITED PARTNERSHIP (A Delaware Limited Partnership) STATEMENTS OF PARTNERS' EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005 (A Review) 2006 2005 Amount Units Amount Units Beginning balance- January 1, $16,841,781 5,016.79 $11,790,949 4,316.80 Partner additions 576,958 170.23 1,454,051 506.55 Partner withdrawals (633,711) (199.90) (316,297) (124.27) Net income (loss) (374,086) 1,772,183 Balance at June 30, $16,410,942 4,987.12 $14,700,886 4,699.08 2006 2005 Value per unit $3,290.67 $3,128.46 Total partnership units 4,987.12 4,699.08 The accompanying notes are an integral part of the financial statements. F-11 ATLAS FUTURES FUND, LIMITED PARTNERSHIP (A Delaware Limited Partnership) STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005 (A Review) 2006 2005 CASH FLOWS FROM OPERATING ACTIVITIES Net income $(374,086) $1,772,183 Adjustments to reconcile net income to net cash provided by (used in) operating activities - Changes in unrealized (gains) losses 292,997 (195,772) Changes in operating assets and liabilities - Accrued interest receivable (17,589) 5,646 Accrued management and incentive fees (104,462) (253,719) Other payables and accruals 3,392 (3,045) Net Cash Provided By (Used In) Operating Activities (199,748) 1,325,293 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from sale of units, net of sales commissions 576,958 1,454,051 Partner redemptions (464,227) (342,043) Net Cash Provided By Financing Activities 112,731 1,112,008 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (87,017) 2,437,301 CASH AND CASH EQUIVALENTS Beginning of period 16,910,682 12,298,533 End of period $16,823,665 $14,735,834 End of period cash and cash equivalents consists of: Cash and cash equivalents in broker trading accounts $16,732,061 $14,494,653 Cash 91,604 241,181 $16,823,665 $14,735,834 The accompanying notes are an integral part of the financial statements. F-12 ATLAS FUTURES FUND, LIMITED PARTNERSHIP (A Delaware Limited Partnership) NOTES TO FINANCIAL STATEMENTS JUNE 30, 2006 AND 2005 (A Review) 1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Atlas Futures Fund, Limited Partnership (the "Fund") was formed January 12, 1998 under the laws of the State of Delaware. The Fund is engaged in the speculative trading of futures contracts in commodities, which commenced in October, 1999. Ashley Capital Management, Inc.("Ashley") and Michael Pacult are the General Partners and the commodity pool operators ("CPO's") of the Fund. The commodity trading advisors ("CTA's") are Clarke Capital Management, Inc. ("Clarke") and NuWave Investment Corp. ("NuWave"), effective February, 2005, who have the authority to trade as much of the Fund's equity as is allocated to them by the General Partner that is currently estimated to be 97% of total equity. The Fund began sells direct on a best efforts basis with no commissions. Interim Financial Statements - The balance sheet, including the schedule of investments, as of June 30, 2006 and the statements of operations for the three and six months ended June 30, 2006 and 2005, and the statements of partners' equity and cash flows for the six months ended June 30, 2006 and 2005 are unaudited. In the opinion of management, such financial statements reflect all adjustments, which were of a normal and recurring nature, necessary for a fair presentation of financial position as of June 30, 2006, the results of operations for the three and six months ended June 30, 2006 and 2005 and cash flows for the six months ended June 30, 2006 and 2005. Regulation - The Fund is a registrant with the Securities and Exchange Commission (SEC) pursuant to the Securities and Exchange Act of 1933 (the Act). The Fund is subject to the regulations of the SEC and the reporting requirements of the Act. The Fund is also 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 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. Registration Costs - Costs incurred for the initial filings with the Securities and Exchange Commission, Commodity Futures Trading Commission, National Futures Association (the "NFA") and the states where the offering was made were accumulated, deferred and charged against the gross proceeds of offering at the initial closing as part of the offering expense. The Fund remains open to new partners, and incurs costs required to retain the ability to issue new units. Such costs and the costs of recurring annual and quarterly filings with regulatory agencies are expensed as incurred. Revenue Recognition - Commodity futures contracts are recorded on the trade date and are reflected in the balance sheet at the difference between the original contract amount and the market value on the last business day of the reporting period. Market value of commodity futures contracts is based upon exchange or other applicable market best available closing quotations. F13 ATLAS FUTURES FUND, LIMITED PARTNERSHIP (A Delaware Limited Partnership) NOTES TO FINANCIAL STATEMENTS JUNE 30, 2006 AND 2005 (A Review) 1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Use of Accounting Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount 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. Income Taxes - The Fund is not required to provide a provision for income taxes. Income tax attributes that arise from its operations are passed directly to the individual partners. The Fund may be subject to state and local taxes in jurisdictions in which it operates. Statement of Cash Flows - For purposes of the Statement of Cash Flows, the Fund considers cash, money market funds and U.S. Treasury Bills to be cash equivalents. Net cash provided by operating activities include no cash payments for interest or income taxes for the periods ended June 30, 2006 and 2005. Foreign Currency Transactions - The Fund's functional currency is the U.S. dollar; however, it transacts business in currencies other than the U.S. dollar. Assets and liabilities denominated in currencies other than U.S. dollar are translated into U.S. dollars at the rates in effect at the date of the statement of financial condition. Income and expense items denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the rates in effect at each month end. Gains and losses resulting from the translation to U.S. dollars are reported in income currently. 2. GENERAL PARTNER DUTIES The responsibilities of the General Partner, in addition to directing the trading and investment activity of the Fund, include 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 as a limited partnership, maintaining a current list of names, addresses and numbers of units owned by each Limited Partner and taking such other actions as deemed necessary or desirable to manage the business of the Partnership. If the daily net unit value of the partnership falls to less than 50% of the highest value earned through trading at the close of any month, then the General Partner will immediately suspend all trading, provide all limited partners with notice of the reduction and give all limited partners the opportunity, for fifteen days after such notice, to redeem partnership interests. No trading will commence until after the lapse of the fifteen day period. F-14 ATLAS FUTURES FUND, LIMITED PARTNERSHIP (A Delaware Limited Partnership) NOTES TO FINANCIAL STATEMENTS JUNE 30, 2006 AND 2005 (A Review) 3. THE LIMITED PARTNERSHIP AGREEMENT The Limited Partnership Agreement provides, among other things, that: Capital Account - A capital account shall be established for each partner. The initial balance of each partner's capital account shall be the amount of the initial contributions to the partnership. Monthly Allocations - Any increase or decrease in the Partnership's net asset value as of the end of a month shall be credited or charged to the capital account of each Partner in the ratio that the balance of each account bears to the total balance of all accounts. Any distribution from profits or partners' capital will be made solely at the discretion of the General Partners. Federal Income Tax Allocations - As of the end of each fiscal year, the Partnership's realized capital gain or loss and ordinary income or loss shall be allocated among the Partners, 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 general partner within five business days. The investor also has five business days to withdraw his subscription. Funds are deposited into an interest bearing escrow account and will be transferred to the Fund's account on the first business day of the month after the subscription is accepted. Interest earned on the escrow funds will accrue to the account of the investor. Redemptions - A limited partner may request any or all of his investment be redeemed at the net asset value as of the end of a month. The written request must be received by the general partner no less than ten business days prior to a month end. Redemptions will generally be paid within twenty days of the effective month end. However, in various circumstances due to liquidity, etc. the general partner may be unable to comply with the request on a timely basis. Effective January 1, 2004, redemption penalties are no longer charged, although there is a twelve month lock-in. 4. FEES Effective January 1, 2004, the Fund is charged the following fees: A monthly commission of 7% (annual rate) of the Fund's assets on deposit with the futures commission merchant. The Corporate General Partner is responsible for payments of brokerage commission and fees to the futures commission merchant. F-15 ATLAS FUTURES FUND, LIMITED PARTNERSHIP (A Delaware Limited Partnership) NOTES TO FINANCIAL STATEMENTS JUNE 30, 2006 AND 2005 (A Review) 4. FEES - CONTINUED A quarterly incentive fee of 25% of "new trading profits" is paid to each CTA. "New net profits" includes all income earned by each CTA and expense allocated to their activity. In the event that trading produces a loss, no incentive fees would be paid and all losses would be carried over to the following months until profits from trading exceeded the loss. It is possible for one CTA to be paid an incentive fee during a quarter of a year when the Fund experiences a loss. A monthly continuing service fee of 4% (annual rate) of the investment in the Fund (as defined) will be paid to the selling agent. Effective June 1, 2004, the monthly commission was changed from 7% to 11% and the continuing service fee was eliminated. Effective February 1, 2005, the Fund added a new CTA, NuWave. NuWave's quarterly incentive fee is 20% of "new net profits" and also receives a monthly management fee of 2% (annualized) on the first $2,000,000 in allocated equity and 1% on the allocated equity above $2,000,000. NuWave was initially allocated $2,000,000 in equity on February 1, 2005. Effective February 1, 2006, the monthly commission amount of 11% was split with 7% going to Futures Investment Company ("Futures"), which is controlled by Michael Pacult and his wife, and 4% paid to Ashley. The Corporate General Partner reserves the right to change the fee structure at its sole-discretion. 5. RELATED PARTY TRANSACTIONS The Fund paid the following expenses to related parties during the six months ended June 30, 2006 and 2005 2006 2005 Commissions - Ashley $434,020 $656,611 Commissions - Futures $443,908 $ - Financial Accounting Standards Board Interpretation No. 45, Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others, identifies certain disclosures to be made by a guarantor in its financial statements about its obligations under certain guarantees that it has issued. In the normal course of business, the Fund has provided general indemnifications to the General Partner, 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 unasserted and unknown claims, but expects the risk of having to make any payments under these indemnifications to be remote. F-16 ATLAS FUTURES FUND, LIMITED PARTNERSHIP (A Delaware Limited Partnership) NOTES TO FINANCIAL STATEMENTS JUNE 30, 2006 AND 2005 (A Review) 6. TRADING ACTIVITIES AND RELATED RISKS The Fund is engaged in speculative trading of U.S. and foreign futures contracts in commodities. 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 and Treasury Bills in trading accounts are pledged as collateral for commodities 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, and the futures commission merchant establish minimum margin requirements for each traded contract. The futures commission merchant may increase the margin requirements above these minimums for any or all contracts. In general, the amount of required margin should never fall below 10% of the Net Asset Value. The cash deposited in trading accounts at June 30, 2006 and December 31, 2005 was $622,331 and $1,986,606, respectively, which equals approximately 4% and 12% of Net Asset Value, respectively. The Fund also purchases United States Treasury Bills as a form of margin. At June 30, 2006 and December 31, 2005, $16,109,730 and $14,836,072, respectively, was invested in U.S. Treasury Bills, which approximates 98% and 88% of Net Asset Value, respectively. Trading in futures contracts involves entering into contractual commitments to purchase or sell a particular commodity 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 of $19,200,000 and $44,907,000 on long positions at June 30, 2006 and December 31, 2005, respectively. 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. F-17 ATLAS FUTURES FUND, LIMITED PARTNERSHIP (A Delaware Limited Partnership) NOTES TO FINANCIAL STATEMENTS JUNE 30, 2006 AND 2005 (A Review) 6. TRADING ACTIVITIES AND RELATED RISKS- CONTINUED 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. The unrealized gains/(losses) on open commodity futures contracts at June 30, 2006 and December 31, 2005 were ($42,095) and $250,092, respectively. Open contracts generally mature within three months. As of June 30, 2006, the latest maturity date for open futures contracts is March, 2007. However, the Fund intends to close all contracts prior to maturity. 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-18 ATLAS FUTURES FUND, LIMITED PARTNERSHIP (A Delaware Limited Partnership) NOTES TO FINANCIAL STATEMENTS JUNE 30, 2006 AND 2005 (A Review) 7. FINANCIAL HIGHLIGHTS Three months ended Six months ended June 30, June 30, 2006 2005 2006 2005 Performance per Unit (5) Net unit value, beginning of period $3,000.59 $3,128.85 $3,357.08 $2,731.41 Net realized and unrealized gains/losses on commodity transactions 366.84 103.09 76.05 719.92 Investment and other income 37.41 17.49 73.09 31.06 Expenses (1) (114.17) (120.97) (215.55) (353.93) Net increase (decrease) for the period 290.08 (0.39) (66.41) 397.05 Net unit value, end of period $3,290.67 $3,128.46 $3,290.67 $3,128.46 Net assets, end of period (000) $16,411 $14,701 $16,411 $14,701 Total return (3) 9.67% (.01)% (1.98%) 14.54% Ratio to average net assets (4) Investment and other income 1.38% 0.75% 2.64% 1.39% Expenses (2) (.87)% (1.49)% (1.28)% (8.59)% (1) Includes brokerage commissions (2) Excludes brokerage commissions (3) Not annualized (4) Annualized for all periods (5) Investment and other income and expenses is calculated using average number of units outstanding during the year. Net realized and unrealized gains/losses on commodity transactions is a balancing amount necessary to reconcile the change in net unit value. F-19 EX-32 2 a10q0606ex3201.txt Exhibit 32.01 CERTIFICATION I, Michael Pacult, chief executive office and chief financial officer of Ashley Capital Management, Inc., the general partner of Atlas Futures Fund, Limited Partnership (the "Fund" or the "Registrant"), do hereby certify that: 1. I have reviewed this quarterly report on Form 10-Q of the Fund; 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)) 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) 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 (c) 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 Date: August 14, 2006 EX-32 3 a10q0306ex3202.txt EXHIBIT 32.02 CERTIFICATION BY CHIEF EXECUTIVE OFFICER & CHIEF FINANCIAL OFFICER I, Michael Pacult, the Chief Executive Officer and Chief Financial Officer of Ashley Capital Management, Inc. as general partner of Atlas Futures Fund, L.P., certify that (i) the Form 10Q for the period ended June 30, 2006 of Atlas Futures Fund, L.P. 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 10Q for the period ended June 30, 2006 fairly presents, in all material respects, the financial condition and results of operations of Atlas Futures Fund, L.P. ATLAS FUTURES FUND, LIMITED PARTNERSHIP By: Ashley Capital Management, Inc., General Partner By: /s/ Michael Pacult Michael Pacult Chief Executive Officer & Chief Financial Officer Date: August 14, 2006 -----END PRIVACY-ENHANCED MESSAGE-----