SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly report pursuant to Section 12(b) or (g) of the
Securities Exchange Act of 1934
For the quarterly period ended March 31, 2001
Commission File Number 0-17555
EVEREST FUTURES FUND, L.P.
(Exact name of registrant as specified in its charter)
Iowa 42-1318186
State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2280 West Tyler Street, Suite 105, Fairfield, Iowa 52556
(Address of principal executive offices) (ZipCode)
Registrant's telephone number, including area code: (641) 472-5500
Not Applicable
(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
EVEREST FUTURES FUND, L.P.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2001
(1) GENERAL INFORMATION AND SUMMARY
Everest Futures Fund, L.P. (the "Partnership") is a limited partnership
organized on June 20, 1988 under the Iowa Uniform Limited Partnership Act.
The business of the Partnership is the speculative trading of commodity
futures contracts and other commodity interests, including forward contracts
on foreign currencies ("Commodity Interests") either directly or through
investing in other, including subsidiary, partnerships, funds or other
limited liability entities. The Partnership commenced its trading
operations on February 1, 1989 and its general partner is Everest Asset
Management, Inc. (the "General Partner") a Delaware corporation organized in
December 1987.
The Partnership was initially organized on June 20, 1988 under the name
Everest Energy Futures Fund, L.P. and its initial business was the
speculative trading of Commodity Interests, with a particular emphasis on
the trading of energy-related commodity interests. However, effective
September 12, 1991, the Partnership changed its name to "Everest Futures
Fund, L.P." and at the same time eliminated its energy concentration trading
policy. The Partnership thereafter has traded futures contracts and options
on futures contracts on a diversified portfolio of financial instruments and
precious metals and trades forward contracts on currencies.
The public offering of the Partnership's units of limited partnership
interest ("Units") commenced on or about December 6, 1988. On February 1,
1989, the initial offering period for the Partnership was terminated, by
which time the Net Asset Value of the Partnership was $2,140,315.74.
Beginning February 2, 1989, an extended offering period commenced which
terminated on July 31, 1989, by which time a total of 5,065.681 Units of
Limited Partnership Interest were sold. Effective May 1995 the Partnership
ceased to report as a public offering. On July 1, 1995 the Partnership
recommenced the offering of its Units as a Regulation D, Rule 506 private
placement, which continues to the present with a total of $74,609,407 for
42,474.16 Units sold July 1, 1995 through March 31, 2001.
During its operation, the Partnership has had various advisors. In December
1990, John W. Henry & Company, Inc. (JWH) began trading for the Partnership
as one of the Partnership's trading advisors. In May 1994, JWH became the
sole advisor to the Partnership. In March 1996, the Partnership transferred
all of its assets to, and became the sole limited partner of, Everest
Futures Fund II, L.P. (Everest II) and JWH began trading for Everest II. In
July 2000, the Partnership redeemed approximately 50% of its assets from
Everest II and allocated them to Trilogy's Barclay Futures Index Program.
The Partnership instructed Trilogy to trade its account using twice the
leverage of Trilogy's unleveraged portfolio to attempt to achieve a return
greater than the return of the Index before fees and expenses. Finally,
effective as of the close of business August 31, 2000, the Partnership
liquidated the balance of its investment in Everest II and opened a trading
account directly with JWH. JWH has used, and continues to use, only its
Financial and Metals Portfolio while trading for Everest II and the
Partnership.
The Partnership clears all of its futures and options on futures trades
through Cargill Investor Services, Inc. (CIS), its clearing broker, and all
of its cash trading through CIS Financial Services, Inc. (CISFS), an
affiliate of CIS.
On September 13, 1996 the Securities and Exchange Commission accepted for
filing a Form 10 -- Registration of Securities for the Partnership. Public
reporting of Units of the Partnership sold as a private placement commenced
at that time and has continued to the present.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements are prepared on a combined basis and
include the accounts of Everest Futures Fund, L.P. and Everest Futures Fund
II, L.P. All significant intercompany transactions and balances have been
eliminated in the accompanying combined financial statements. Effective
September 11, 2000, Everest Futures Fund II, L. P. was dissolved.
Cash Equivalents
Cash equivalents represent short-term highly liquid investments with
remaining maturities of 60 days or less and include money market accounts,
securities purchased under agreements to resell, commercial paper, and U.S.
Government and agency obligations with variable rate and demand features
that qualify them as cash equivalents. These cash equivalents, with the
exception of securities purchased under agreement to resell, are stated at
amortized cost, which approximates fair value. Securities purchased under
agreements to resell, with overnight maturity, are collateralized by U.S.
Government and agency obligations, and are carried at the amounts at which
the securities will subsequently be resold plus accrued interest. For
purposes of the statements of cash flows, cash and cash equivalents includes
cash and cash equivalents and cash on deposit with Brokers in the equity in
commodity futures trading accounts.
Fair Value of Financial Instruments
The financial instruments held by the Company are reported in the statement
of financial condition at market or fair value, or at carrying amounts which
approximate fair value, because of their highly liquid nature and short-term
maturity.
Revenue Recognition
Commodity futures contracts, forward contracts, physical commodities, and
related options are recorded on the trade date. All such transactions are
recorded on the identified cost basis and marked to market daily. Unrealized
gains and losses on open contracts reflected in the statements of financial
condition represent the difference between original contract amount and
market value (as determined by exchange settlement prices for futures
contracts and related options and cash dealer prices at a predetermined time
for forward contracts, physical commodities, and their related options) as
of the last business day of the year or as of the last date of the financial
statements.
Foreign Currency Translation
Assets and liabilities denominated in foreign currencies are translated at
the prevailing exchange rates as of the valuation date. Gains and losses on
investment activity are translated at the prevailing exchange rate on the
date of each respective transaction while year-end balances are translated
at the year-end currency rates.
Income Taxes
Income taxes are not provided for by the Partnership because taxable income
of the Partnership is includable in the income tax returns of the partners.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles 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 the reported amounts of increase and decrease in net assets
from operations during the period. Actual results could differ from those
estimates.
(3) THE LIMITED PARTNERSHIP AGREEMENT
The Limited Partners and General Partner share in the profits and losses of
the Partnership in proportion to the number of Units or Unit equivalents
held by each. However, no Limited Partner is liable for obligations of the
Partnership in excess of his or her capital contribution and profits, if
any, and such other amounts as he may be liable for pursuant to the Iowa
Uniform Limited Partnership Act. Distributions of profits are made solely
at the discretion of the General Partner.
Responsibility for managing the Partnership is vested solely in the General
Partner; however, the General Partner has delegated complete trading
authority to an unrelated party (note 4).
The Partnership bears all expenses incurred in connection with its trading
activities, including commodity brokerage commissions and fees payable to
the trading advisor, as well as legal, accounting, auditing, printing,
mailing and extraordinary expenses.
Limited Partners may cause any or all of their Units to be redeemed as of
the end of any month at net asset value on fifteen days' prior written
notice. The Partnership will be dissolved at December 31, 2020, or upon the
occurrence of certain events, as specified in the Limited Partnership
Agreement.
(4) OTHER AGREEMENTS
John W. Henry & Company, Inc. was the Partnership's sole trading advisor
from May 1, 1994 through July 31, 2000. Effective August 1, 2000,
approximately 50% of the Partnership's assets were allocated to Trilogy
Capital Management, LLC's Barclay Futures Index Program. As of March 31
2001, JWH managed approximately 56% of the Partnership's assets, and Trilogy
managed approximately 44%.
JWH receives a monthly management fee equal to 0.33% (4% annually) of the
Partnership's month-end allocated assets, as defined, and a quarterly
incentive fee of 15% (20% prior to April 1, 1995) of the Partnership's
trading profits allocable to its trading exclusive of interest income on
allocated assets, as defined. The incentive fee is retained by JWH even
though trading losses may occur in subsequent quarters; however, no further
incentive fees are payable until any such trading losses (other than losses
attributable to redeemed units and losses attributable to assets reallocated
to another advisor) are recouped by the Partnership. Effective October 1,
2000, JWH revised its fee structure. JWH currently receives a monthly
management fee of 0.167% (2%) annually and an incentive fee of 20%.
Trilogy receives a monthly management fee of 0.0375% (approximately 0.45%
annually) of the Partnership's allocated assets (0.45% annually.) Since the
Partnership has directed Trilogy to trade its account at 2:1 leverage, the
management fee represents 0.90% of the actual cash in the Trilogy account.
The Clearing Broker charges the Trading Partnership monthly brokerage
commissions equal to 0.50% (1.0833% prior to April 1, 1995) of the Trading
Partnership's beginning-of-month net asset value, as defined. Effective
November 1, 1995, the General Partner receives a management fee from the
Clearing Broker of approximately 83% of the brokerage commission charged by
the Clearing Broker. Prior to November 1, 1995, no management fee was
received by the General Partner.
A portion of assets are deposited with a commercial bank and invested under
the direction of Horizon Cash Management, Inc. ("Horizon"). Horizon will
receive a monthly cash management fee equal to 1/12 of .25% (.25% annually)
of the average daily assets under management if the accrued monthly interest
income earned on the Partnership's assets managed by Horizon exceeds the 91-
day U.S. Treasury bill rate.
(5) FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK
The Partnership was formed to speculatively trade commodity interests. The
Partnership's commodity interest transactions and related cash balances are
on deposit with the Clearing Broker or CIS Financial Services, Inc. ("CISFS"
or "Forward Currency Broker" and collectively, the "Brokers") at all times.
In the event that volatility of trading of other customers of the Brokers
impaired the ability of the Brokers to satisfy the obligations to the
Partnership, the Partnership would be exposed to off-balance sheet risk.
Such risk is defined in Statement of Financial Accounting Standards No. 105
(SFAS 105) as a credit risk. To mitigate this risk, the Clearing Broker,
pursuant to the mandates of the Commodity Exchange Act, is required to
maintain funds deposited by customers, relating to futures contracts in
regulated commodities, in separate bank accounts which are designated as
segregated customers' accounts. In addition, the Clearing Broker has set
aside funds deposited by customers relating to foreign futures and options
in separate bank accounts which are designated as customer secured accounts.
Lastly, the Clearing Broker is subject to the Securities and Exchange
Commission's Uniform Net Capital Rule which requires the maintenance of
minimum net capital at least equal to 4% of the funds required to be
segregated pursuant to the Commodity Exchange Act. The Clearing Broker and
Forward Currency Broker both have controls in place to make certain that all
customers maintain adequate margin deposits for the positions which they
maintain at each Broker. Such procedures should protect the Partnership
from the off-balance sheet risk as mentioned earlier. Neither the Clearing
Broker or the Forward Currency Broker engage in proprietary trading and thus
have no direct market exposure.
The counterparty of the Partnership for futures contracts traded in the
United States and most non-U.S. exchanges on which the fund trades is the
Clearing House associated with the exchange. In general, Clearing Houses
are backed by the membership and will act in the event of nonperformance by
one of its members or one of the members' customers and as such should
significantly reduce this credit risk. In the cases where the Partnership
trades on exchanges on which the Clearing House is not backed by the
membership, the sole recourse of the Partnership for nonperformance will be
the Clearing House. The Forward Currency Broker is the counterparty for the
Partnership's forward transactions. CISFS policies require that they
execute transactions only with top rated financial institutions with assets
in excess of $100,000,000.
The Partnership holds futures and futures options positions on the various
exchanges throughout the world and forward positions with CISFS which
transacts with various top rated banks throughout the world. As defined by
SFAS 105, futures and foreign currency contracts are classified as financial
instruments. SFAS 105 requires that the Partnership disclose the market
risk of loss from all of its financial instruments. Market risk is defined
as the possibility that future changes in market prices may make a financial
instrument less valuable or more onerous. If the markets should move
against all of the futures positions held by the Partnership at the same
time, and if the markets moved such that the trading advisor was unable to
offset the futures positions of the Partnership, the Partnership could lose
all of its assets and the partners would realize a 100% loss. The
Partnership has a contract with one trading advisor who makes the trading
decisions on behalf of the Partnership. That trading advisor trades a
program which is diversified among the various futures contracts in the
financials and metals group on exchanges both in the U.S. and outside the
U.S. Such diversification should greatly reduce this market risk.
The following chart discloses the dollar amount of the unrealized gain or
loss on open contracts related to Commodity Interests for the Partnership as
of
March 31, 2001:
COMMODITY GROUP
UNREALIZED GAIN/(LOSS)
FOREIGN CURRENCIES
1,942,303
STOCK INDICES
156,945
METALS
173,953
INTEREST RATE INSTRUMENTS
284,526
ENERGIES 92,110
AGRICULTURAL 1,135,628
____________
TOTAL
3,785,465
The range of maturity dates of these exchange traded open contracts is April
of 2001 to March of 2002. The average open trade equity for the period of
January 1, 2001 to March 31, 2001 was $4,131,051.
The margin requirement at March 31, 2001 was $5,103,567. To meet this
requirement, the Partnership had on deposit with the Clearing Broker
$1,299,486 in segregated funds, $1,555,459 in
secured funds and $2,520,602 in non-regulated funds.
Cash was on deposit with the Clearing Broker in each time period of the
financial statements that exceeded the cash requirements of the Commodity
Interests of the Partnership.
(6) FINANCIAL STATEMENT PREPARATION
The interim financial statements are unaudited but reflect all adjustments
that are, in the opinion of management, necessary for a fair statement of
the results for the interim periods presented. These adjustments consist
primarily of normal recurring accruals. These interim financial statements
should be read in conjunction with the audited financial statements of the
Partnership for the year ended December 31, 2000, as filed with the
Securities and Exchange Commission on March 31, 2001, as part of its Annual
Report on Form 10-K.
The results of operations for interim periods are not necessarily indicative
of the operating results to be expected for the fiscal year.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operation
Fiscal Quarter ended March 31, 2001
The Partnership recorded a gain of $4,275,321 or $163.15 per Unit for the
first quarter of 2001. This compares to a loss of $5,502,945 or $200.52 per
Unit for the first quarter of 2000.
The Partnership continued to employ two different trading strategies for the
first quarter 2001. The Fund was '1.08% in January. The John W. Henry &
Company Financial and Metals Portfolio (JWH) was profitable for the month
due to interest rate positions. A significant portion of the positive
returns occurred during the last days of the month surrounding the Fed cut
in rates on January 21st. In spite of the unusual action of two 50 basis
point rate cuts by the Fed in a single month, bond prices actually declined
by just over 2 points for January. All the remaining sections traded,
currencies, non-US stock indices and metals, incurred losses. The Barclay
Futures Index Program (BFIP) had an allocation of approximately 50% of the
Fund's assets for the first quarter 2001. In January the Index had a
decline for the Fund of 6.03%. The largest losses came in the energies and
grains and overall six of the seven sub-indexes (or sectors) were negative.
The only exception was profits in softs, especially sugar. All in all, the
Partnership posted a loss of $455,012 or $17.43 per Unit in January.
The Fund was +0.78% in February. The JWH allocation was again positive with
gains in short term interest rates. The short term rates reacted to central
bank easing and the massive rally in the Japanese government Bond as the
Japanese economy showed signs of sputtering, realized gains. After
eliminating their zero interest rate policy last August because of the
belief that a recovery was around the corner, the Bank of Japan is again
following a monetary policy of easing as rates were brought down 15 basis
points. The Japanese stock market reacted and the Nikkei stock index hit a
15 year low during February. Currencies suffered losses for the month as
they were affected by a weakening in the euro, which offset some of the
earlier gains from the beginning of the year. Late in the month, the euro
tumbled to two-month lows against the dollar in the wake of Turkey's lira
currency float. Market concerns about European bank exposure to Turkish
assets helped push the euro, already trending lower during the month, to
fresh troughs. Metals were slightly unprofitable for the month. The BFIP
allocation of the Fund lost 1.35%. The passive index had losses in metals
and currencies and profits in meats, softs, and energies. Overall, the
Partnership posted a gain of $318,381 or $12.51 per Unit in February.
The Fund was +10.42% in March. The JWH program was +12.88% with all four
sectors being profitable. Currencies led the way due to continued weakness
in the Japanese yen, although the other currencies were also profitable.
Declining interest rates also helped for the month, led by the Euro Bund and
the Japanese government bond. Many attributed the strength in bond prices
to be the result of the "flight to safety" due to continued weakness in the
equity markets. Stock index trading was mixed and there was a small gain in
metals. The BFIP gained back its losses from January and February with a
+7.49% result in March. The gains came in the softs, metals, grains,
currencies and energies. Smaller losses came in meats and financials.
Overall, the Partnership posted a gain of $4,411,952 or $168.07 per Unit in
March.
During the quarter, additional Units sold consisted of 1026.49 limited
partnership units; there were no general partnership units sold during the
quarter. Additional Units sold during the quarter represented a total of
$1,656,356. Investors redeemed a total of 1,060.18 Units during the
quarter. At the end of the quarter there were 26,069.99 Units outstanding
(including 198.49 Units owned by the General Partner).
During the fiscal quarter ended March 31, 2000, the Partnership had no
credit exposure to a counterparty which is a foreign commodities exchange or
to any counterparty dealing in over the counter contracts which was
material.
Fiscal Quarter ended March 31, 2000
The Partnership recorded a loss of $5,502,945 or $200.52 per Unit for the
first quarter of 2000. This compares to a loss of $3,835,309 or $151.17 per
Unit for the first quarter of 1999.
In the first month of the quarter the Partnership posted a loss resulting
primarily from volatility in the currency sector. The Partnership posted a
loss for the second month of the quarter resulting primarily from trading in
global interest rates. During the third month of the quarter currency
destabilization and massive capital shifts out of the U.S. dollar resulted
in a loss for the Partnership. Overall, the first quarter of fiscal 2000
ended negatively for the Partnership accounts managed by JWH. At March 31,
2000, John W. Henry & Company, Inc. was managing 100% of the Partnership's
assets using its Financial and Metals Portfolio.
January 2000 marked the turning of the millennium. This coupled with the
build-up to Y2K came and went without a hitch. However, the currency
sector was all but quiet as extreme volatility prompted large swings in the
price of the U.S. dollar relative to the Japanese yen. Within the first
couple of days of the New Year, the Japanese banks intervened and started
pouring money into the dollar. This abrupt reversal in the dollar/yen
relationship resulted in a reversal of the Partnership positions from long
yen to short yen within a matter of days. Similarly, yen trading relative to
the euro and Swiss franc contributed to Partnership losses. Short
Australian dollar positions proved difficult and also resulted in losses.
Stock indices, namely the Nikkei fell in response to volatility in the tech
sector, which is factored into that index. Long positions hurt the
Partnership performance. Despite realizing profits from short U.S. bond and
long Japanese Government Bond positions, the Partnership posted overall
losses. All in all, the Partnership posted a loss of $1,624,691 or $71.22
per Unit in January.
Changing expectations regarding economic growth and inflation created a
difficult trading environment in February. The strategic news item was the
U.S. Federal Reserve's decision to buy back part of the debt, which led to a
powerful rally in the U.S.30-year bond. The decision by the Fed created
havoc in the Partnership interest rate portfolio, which was dominated by
short positions. Losses were taken in North American, Asian, and European
interest rates. The yield on the 10-year U.S. government bond currently
exceeds that of the 30-year, creating an inverted yield curve, which is a
very unusual occurrence. Currency trading was mixed. Profitable long U.S.
dollar positions were bolstered by the revised 4th quarter Gross National
Product number, which reflected a robust economy. However, gains in the
dollar were offset by losses incurred by long Europe/short Japan positions.
Precious metals trading suffered as gold prices rallied and then fell
sharply. On March 2, the General Partner received a letter from Verne
Sedlacek, President of John W. Henry & Company, Inc. detailing modifications
to the Financial and Metals trading program. All changes are designed to add
balance to the program without giving up any upside potential. Most
noteworthy are the dramatic reductions in precious metals and Far Eastern
interest rate trading as well as the addition of offshore stock indices,
base metals, and the expansion of non-dollar currency trading. JWH remains
steadfast in their commitment to research. Overall, the Partnership posted
a loss of $2,925,475 or $97.24 per Unit in February.
In March, profit taking in U.S. tech stocks led to massive capital shifts
out of the dollar and into yen. These events destabilized currency and
stock markets worldwide. The appreciation of the yen contributed the
majority of the losses to the Partnership in that long positions in dollar
and euro versus the yen both suffered. Marginal gains in dollar positions
against Europe and Australia's currencies proved inadequate in offsetting
these losses. Performance in precious, as well as industrial metals was
down slightly. Positive performance in March came from the interest rate
sector. The 7% correction in tech stocks coupled with the U.S. Treasury's
continued buying of longer dated bonds led to positive performance in our
bond position. The European Central Bank's decision to raise short term
interest rates led to purchasing European bonds, which assisted our position
as well. Overall, the Partnership posted a loss of $952,778 or $32.06 per
Unit in March.
During the quarter, additional Units sold consisted of 8,388.88 limited
partnership units; there were no general partnership units sold during the
quarter. Additional Units sold during the quarter represented a total of
$14,033,699. Investors redeemed a total of 2,054.59 Units during the
quarter. At the end of the quarter there were 29,148.08 Units outstanding
(including 198.49 Units owned by the General Partner).
During the fiscal quarter ended March 31, 2001, the Partnership had no
credit exposure to a counterparty which is a foreign commodities exchange or
to any counterparty dealing in over the counter contracts which was
material.
Item 3. Quantitative and Qualitative Disclosures
About Market Risk
There has been no material change with respect to market risk since the
"Quantitative and Qualitative Disclosures About Market Risk" was made in the
Form 10K of the Partnership dated December 31, 2000.
Part II. OTHER INFORMATION
Item 1.
Legal Proceedings
The Partnership and its affiliates are from time to time parties to various
legal actions arising in the normal course of business. The General Partner
believes that there is no proceedings threatened or pending against the
Partnership or any of its affiliates which, if determined adversely, would
have a material adverse effect on the financial condition or results of
operations of the Partnership.
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)
Exhibits
Exhibit-27
b)
Reports on Form 8-K
None
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 and thereunto duly authorized.
EVEREST FUTURES FUND, L.P.
Date: May 14, 2001
By:
Everest Asset Management, Inc.,
its General Partner
By:
/s/ Peter Lamoureux
Peter Lamoureux
President
Part I. Financial Information
Item 1. Financial Statements
"Following are Financial Statements for the fiscal quarter ending March 31,
2001"
Fiscal Quarter Year to Date Fiscal Year
Fiscal Quarter Year to Date
Ended 3/31/01 to 3/31/01 Ended 12/31/00 Ended
3/31/00 to 3/31/00
Statement of
Financial Condition X X
Statement of
Operations X X X X
Statement of Changes
in Partners' Capital X
Statement of
Cash Flows X X
Notes to Financial
Statements X
"EVEREST FUTURES FUND, LP"
COMBINED STATEMENTS OF FINANCIAL CONDITION
UNAUDITED
"Mar 31, 2001" "Dec 31, 2000"
ASSETS
Cash and cash equivalents "32,716,431 " "19,699,842 "
Equity in commodity trading accounts:
Amount Due from broker "5,375,547 " "3,679,722 "
Net unrealized trading gains on open contracts "3,785,465 "
"5,019,780 "
"Investments, at fair value" "5,037,100 " "14,340,365 "
Tax receivable "36,445 " "36,445 "
Interest receivable "176,182 " "299,333 "
Total assets "47,127,169 " "43,075,487 "
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accrued expenses "28,950 " "25,700 "
Commissions payable "181,775 " "160,192 "
Advisor's management fee payable "116,948 " "68,143 "
Advisor's incentive fee payable "29,399 " 0
Redemptions payable "322,474 " "572,530 "
Deferred Partnership offering proceeds 0 0
Selling and Offering Expenses Payable 0 0
Total liabilities "679,547 " "826,565 "
Partners' Capital:
" Limited partners (25,871.50 and 25,905.20 units"
" outstanding at 3/31/01 and 12/31/00, respectively)" " 46,093,981 "
"41,927,664 "
(see Note 1)
General partners (198.49 units outstanding
at 3/31/01 and 12/31/00.) " 353,641 " "321,258 "
(see Note 1)
Total partners' capital "46,447,622 " "42,248,922 "
" Total liabilities, minority interest,"
and partners' capital "$47,127,169 " "$43,075,487 "
Net asset value per outstanding unit of Partnership
interest "$1,781.65 " "$1,618.50 "
"This Statement of Financial Condition, in the opinion of management, reflects
all adjustments necessary"
to fairly state the financial condition of Everest Futures Fund. (See Note 6)
"EVEREST FUTURES FUND, L.P."
COMBINED STATEMENTS OF OPERATIONS
"For the period January 1, 2001 through March 31, 2001"
UNAUDITED
"Jan 1, 2001" "Jan 1, 2001" "Jan 1, 2000"
"Jan 1, 2000"
through through through through
"Mar 31, 2001" "Mar 31, 2001" "Mar 31, 2000"
"Mar 31, 2000"
REVENUES
Gains on trading of commodity futures
" and forwards contracts, physical"
commodities and related options:
Realized gain (loss) on closed positions "5,637,319 "
"5,637,319 " "(6,925,697)" "(6,925,697)"
Change in unrealized trading gain (loss)
on open contracts "(1,234,315)" "(1,234,315)"
"2,064,338 " "2,064,338 "
Change in net unrealized gain (loss) on investments "2,194 "
"2,194 " "47,496 " "47,496 "
Net foreign currency translation gain (loss) "82,557 " "82,557 "
"(187,591)" "(187,591)"
Brokerage Commissions "(626,890)" "(626,890)" "(687,812)"
"(687,812)"
Total trading income (loss) "3,860,865 " "3,860,865 "
"(5,689,266)" "(5,689,266)"
" Interest income, net of cash management fees" "616,736 " "616,736
" "605,852 " "605,852 "
Total income (loss) "4,477,601 " "4,477,601 "
"(5,083,415)" "(5,083,415)"
General and administrative expenses
Advisor's management fees "163,321 " "163,321 " "441,472 "
"441,472 "
Advisor's incentive fees "29,399 " "29,399 " 0 0
Administrative expenses "9,559 " "9,559 " "(21,942)"
"(21,942)"
Total general and administrative expenses "202,280 " "202,280 "
"419,530 " "419,530 "
Minority Interest 0 0 0 0
Net income (loss) "4,275,321 " "4,275,321 " "(5,502,945)"
"(5,502,945)"
PROFIT (LOSS) PER UNIT OF
PARTNERSHIP INTEREST $163.15 $163.15 ($200.52)
($200.52)
(see Note 1) (see Note 1)
"This Statement of Operations, in the opinion of management, reflects all
adjustments "
necessary to fairly state the financial condition of Everest Futures Fund. (See
Note 6)
"EVEREST FUTURES FUND, LP"
COMBINED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
"For the period January 1, 2001 through March 31, 2001"
UNAUDITED
Limited General
Units* Partners Partners Total
"Partners' capital at Jan 1, 2001" "26,103.69 " "41,927,664 "
"$321,258 " "$42,248,922 "
Net profit (loss) "4,242,938 " "32,383 "
"4,275,320 "
Additional Units Sold "1,026.49 " "1,656,356 " 0
"1,656,356 "
(see Note 1)
Redemptions (see Note 1) "(1,060.18)" "(1,732,976)" 0
"(1,732,976)"
"Partners' capital at March 31, 2001" "26,069.99 " "$46,093,981 "
"$353,641 " "$46,447,622 "
Net asset value per unit
" January 1, 2001(see Note 1)" "1,618.50 " "1,618.50 "
Net profit (loss) per unit (see Note 1) 163.15 163.15
Net asset value per unit
" March 31, 2001" "$1,781.65 " "$1,781.65 "
* Units of Limited Partnership interest.
"This Statement of Changes in Partners' Capital, in the opinion of management,
reflects all"
adjustments necessary to fairly state the financial condition of Everest Futures
Fund. (See Note 6)
"EVEREST FUTURES FUND, LP"
COMBINED STATEMENTS OF CASH FLOWS
UNAUDITED
"Jan 1, 2001" "Jan 1, 2000"
through through
"Mar 31, 2001" "Mar 31, 2000"
Net profit (loss) "4,275,321 " "(5,502,945)"
Adjustments to reconcile net profit
(loss) to net cash provided by
(used in) operating activities:
Change in assets and liabilities:
Unrealized gain (loss) on open
futures contracts "1,234,315 " "(2,132,545)"
Interest receivable "123,151 " "342,126 "
Decrease (Increase) in commodity trading accounts 0 0
Accrued liabilities "103,038 " "(2,018)"
Redemptions payable "(250,056)" "362,474 "
" Investments, at fair value" "9,303,265 " "(1,196,800)"
Deferred Offering Proceeds 0 0
Selling and Offering Expenses Payable 0 "34,451 "
Change in Minority Interest "(52,103)"
Net cash provided by (used in)
operating activities "14,789,034 " "(8,147,360)"
Cash flows from financing activities:
Units Sold "1,656,356 " "14,033,699 "
Partner redemptions "(1,732,976)" "(3,274,811)"
Net cash provided by (used in)
financing activities "(76,621)" "10,758,888 "
Net increase (decrease) in cash "14,712,413 " "2,611,528 "
Cash at beginning of period "$23,379,564 " "$21,692,642 "
Cash at end of period "$38,091,977 " "$24,304,170 "
"This Statement of Cash Flows, in the opinion of management, reflects all
adjustments "
necessary to fairly state the financial condition of Everest Futures Fund. (See
Note 6)