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, 2003 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.) 1100 North 4th Street, Suite 143, Fairfield, Iowa 52556 (Address of principal executive offices) (Zip Code) 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 Part I. Financial Information Item 1. Financial Statements Following are Financial Statements for the fiscal quarter ending March 31, 2003 Fiscal Quarter Year to Date Fiscal Year Fiscal Quarter Year to Date Ended 3/31/03 to 3/31/03 Ended 12/31/02 Ended 3/31/02 to 3/31/02 Statement of Financial Condition X X Statement of Operations X X X X Statement of Changes in Partners' Capital X Schedule of Investments X Notes to Financial Statements X EVEREST FUTURES FUND, LP COMBINED STATEMENTS OF FINANCIAL CONDITION UNAUDITED March 31, 2003 Dec 31, 2002 ASSETS Cash and cash equivalents 16,988,884 466,129 Equity in commodity trading accounts: Cash on deposit with brokers 21,678,967 14,452,134 Net unrealized trading gains on open contract (1,718,620) 5,429,931 Investments, at fair value 15,084,395 22,810,860 Interest receivable 90,735 14,624 Total assets 52,124,361 43,173,678 LIABILITIES AND PARTNERS' CAPITAL Liabilities: Accrued expenses 36,925 50,322 Commissions payable 210,444 150,029 Advisor's management fee payable 99,189 84,985 Advisor's incentive fee payable 518,566 Redemptions payable 16,921,899 167,638 Pending Partner additions 50,000 Selling and Offering Expenses Payable 19,653 0 Total liabilities 17,856,677 452,974 Partners' Capital: Limited partners (14373.93 and 20,591.62 units outstanding at 3/31/03 and 12/31/02, respectively 34,266,692 42,674,962 General partners (0.42 and 22.07 units outstanding at 3/31/03 and 12/31/02, respectively 992 45,742 Total partners' capital 34,267,684 42,720,704 Total liabilities and partners' capital $52,124,361 $43,173,678 Net asset value per outstanding unit of Partnership interest $2,383.95 $2,072.44 See accompanying notes to financial statements. EVEREST FUTURES FUND, L.P. COMBINED STATEMENTS OF OPERATIONS For the period January 1, 2003 through March 31, 2003 UNAUDITED Jan 1, 2003 Jan 1, 2003 Jan 1, 2002 Jan 1, 2002 through through through through March 31, 2003 March 31, 2003 March 31, 2002 March 31, 2002 REVENUES Gains on trading of commodity futures and forwards contracts, physical commodities and related options: Realized gain (loss) on closed positions 14,974,835 14,974,835 (2,051,350) (2,051,350) Change in unrealized trading gain (loss) on open contracts (7,148,551) (7,148,551) (2,500,595) (2,500,595) Net foreign currency translation gain (loss) 17,257 17,257 (51,054) (51,054) Brokerage Commissions (751,970) (751,970) (624,229) (624,229) Total trading income (loss) 7,091,571 7,091,571 (5,227,228) (5,227,228) Interest income, net of cash management fees 163,596 163,596 190,354 190,354 Total income (loss) 7,255,167 7,255,167 (5,036,874) (5,036,874) General and administrative expenses Advisor's management fees 304,652 304,652 226,973 226,973 Advisor's incentive fees 518,566 518,566 0 0 Administrative expenses 11,196 11,196 14,546 14,546 Total general and administrative expenses 834,415 834,415 241,519 241,519 Net income (loss) 6,420,752 6,420,752 (5,278,393) (5,278,393) PROFIT (LOSS) PER UNIT OF PARTNERSHIP INTEREST $311.51 $311.51 ($212.95) ($212.95) See accompanying notes to financial statements. EVEREST FUTURES FUND, LP COMBINED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL For the period January 1, 2003 through March 31, 2003 UNAUDITED Limited General Units Partners Partners Total Partners' capital at Jan 1, 2003 20,613.69 42,674,962 $45,742 $42,720,704 Net profit (loss) 6,413,434 7,318 6,420,752 Additional Units Sold 1,955.36 4,857,896 0 4,857,896 Redemptions (8,194.69) (19,679,599) (52,069) (19,731,668) Partners' capital at March 31, 2003 14,374.35 $34,266,693 $992 $34,267,684 Net asset value per unit January 1, 2003 2,072.44 2,072.44 Net profit (loss) per unit 311.51 311.51 Net asset value per unit March 31, 2003 $2,383.95 $2,383.95 See accompanying notes to financial statements. Everest Futures Fund, L.P Schedule of Investments March 31, 2003 Number of Principal Carrying Value/ Long positions: Contracts (notional) Value (OTE) Futures positions (-2.18%) Interest rates 251 $ 70,856,064 212,404 Metals 465 15,934,583 (764,068) Energy 188 7,245,534 (176,059) Agriculture 632 10,416,542 (63,718) Currencies 140 19,297,110 63,772 Indices 23 469,660 (18,400) 124,219,493 (746,069) Forward positions (2.39%) Currencies 113,705,626 817,713 Total long positions $ 237,925,118 71,644 Short positions: Futures positions (1.00%) Interest rates 305 $ 27,241,935 (220,548) Metals 636 20,897,574 637,388 Energy 257 6,430,230 (227,255) Agriculture 430 6,292,186 (415) Currencies 0 0 Indices 91 4,638,475 155,148 65,500,401 344,318 Forward positions (-6.23%) Currencies 134,590,779 (2,134,581) Total short positions $ 200,091,180 (1,790,263) Total open contracts (-5.02%) $ (1,718,620) Securities Held Maturity Over 60 days (44.01%) Coupon Maturity Cost FANNIE MAE MED TERM NT 3.15% 7/29/04 $ 703,816 FANNIE MAE MED TERM NT 3.50% 6/24/04 906,572 FANNIE MAE MED TERM NT 3.50% 6/24/04 2,015,111 FANNIE MAE MED TERM NT 3.50% 5/21/04 503,669 FANNIE MAE MED TERM NT 3.00% 7/29/04 2,511,337 FANNIE MAE MED TERM NT 3.00% 7/29/04 251,611 FANNIE MAE MED TERM NT 3.10 3.10% 10/29/04 1,007,176 FANNIE MAE MED TERM NT 3.125% 12/9/04 503,258 FANNIE MAE MED TERM NT 3.10% 10/29/04 806,538 FANNIE MAE MED TERM NT 2.7 8/20/2004 2.70% 8/20/04 251,445 PRIME PROPERTY FUND INC LP NT 12/31/03 5,000,000 FED HM LN BK BOND 2.00% 6/17/04 503,171 US T-NOTE TERM RP 5.50% 2/15/08 120,691 Total securities maturity over 60 days $ 15,084,395 Cash and cash equivalents (49.58%) 16,988,884 Cash on deposit with brokers (63.26%) 21,678,967 Less liabilities in excess of other assets (-51.83%) (17,765,942) Net assets (100.0%) $ 34,267,684 EVEREST FUTURES FUND, L.P. NOTES TO FINANCIAL STATEMENTS MARCH 31, 2003 (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 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 initial 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 $83,758,626 for 46,567.32 Units sold July 1, 1995 through March 31, 2003. On March 29, 1996, the Partnership transferred all of its assets to, and became the sole limited partner of, Everest Futures Fund II, L.P. (Trading Partnership)), a newly formed limited partnership that invested directly in commodity interests. The co-general partners of the Trading Partnership were CIS Investments, Inc. (CISI) and the General Partner (collectively, the General Partners). In July 2000, the Partnership redeemed approximately 50% of its assets from the Trading Partnership. Effective as of the close of business August 31, 2000, the Partnership liquidated its remaining investment in the Trading Partnership. CISI also liquidated its investment	in the Trading Partnership and the Trading Partnership was dissolved in September 2000. 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 Prior to the dissolution of the Trading Partnership, the accompanying financial statements were prepared on a combined basis and included the accounts of the Partnership and the Trading Partnership. All significant intercompany transactions and balances have been eliminated in the accompanying financial statements. Certain prior year amounts have been reclassified to be consistent with the current year presentation. Cash and 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. 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. The Partnership earns interest on 100% of the Partnership's average monthly cash balance on deposit with the Brokers at a rate equal to the average 91-day Treasury bill rate for U. S. Treasury bills issued during that month. Net Income (Loss) Per Unit of Partnership Interest Net income (loss) per unit of partnership interest is the difference between the net asset value per unit at the beginning and end of each period. Fair Value of Financial Instruments The financial instruments held by the Company are reported in the statements of financial condition at market or fair value, or at carrying amounts that approximate fair value, because of their highly liquid nature and short-term maturity. 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. Realized and unrealized foreign exchange gains or losses are included in trading income (loss) in the statements of operations. Income Taxes No provision for income taxes has been made in the accompanying financial statements as each partner is responsible for reporting income (loss) based upon the pro rata share of the profits or losses of the Partnership. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenues and expenses during the reporting 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 their capital contribution and profits, if any, and such other amounts as they may be liable for pursuant to the 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. The General Partner has delegated complete trading authority to an unrelated party (note 4). Prior to the dissolution of the Trading Partnership, the Trading Partnership bore 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. In addition, the Trading Partnership bore all of its administrative expenses. After the dissolution, the Partnership bears all of these 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 to the Partnership, or such lesser period as is acceptable to the Partnership. Although the Agreement does not permit redemptions for the first six months following a Limited Partner's admission to the Partnership, the Agreement does permit the Partnership to declare additional regular redemption dates. The Partnership will be dissolved at December 31, 2020, or upon the occurrence of certain events, as specified in the Limited Partnership Agreement. (4) CONTRACTS AND AGREEMENTS Prior to August 1, 2000, the Partnership's trading advisor was John W. Henry & Company, Inc. (JWH). Beginning July 1, 2001, JWH began trading its Strategic Allocation Program with a trading allocation of $40 million. Previously JWH traded its Financial and Metals program. JWH receives a monthly management fee equal to 0.167 (2% annually) of the Partnership's or Trading Partnership's (prior to September 2000) month-end net asset value, as defined, and a quarterly incentive fee of 20% of the Partnership's or Trading Partnership's (prior to September 2000) new net trading profits, as defined. The monthly management fee was reduced as of October 1, 2000 from 0.33% (4% annually). 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 or Trading Partnership (prior to September 2000). Effective August 1, 2000, Trilogy Capital Management, LLC (Trilogy) was added as a trading advisor. Trilogy was terminated effective June 30, 2001. Trilogy received a monthly management fee of 0.075% (0.9% annually) of the Partnership's month-end allocated assets as defined and did not receive an incentive fee. Effective September 1, 2001, Mount Lucas Management Corporation (MLM) was added as trading advisor with an initial allocation of $10 million. This allocation represented notional funding for the Partnership. Effective February 1, 2003, MLM receives a monthly management fee of 0.04167% (0.50% annually) of the Partnership's month-end allocated assets as defined. Prior to February 2003, MLM received a monthly management fee of 0.0625% (0.75% annually). As MLM uses the MLM Index-Unleveraged, they do not receive an incentive fee. . Effective February 1, 2003, CIS charges the Partnership or Trading Partnership (prior to September 2000) monthly brokerage commissions equal to 0.5156% of the Partnership or Trading Partnership's beginning-of-month net asset value, as defined. Prior to September 1, 2001, the monthly brokerage commission was 0.5%. Monthly brokerage commissions will increase incrementally to 0.5208% as the trading allocation to MLM increases.. The General Partner receives a management fee of approximately 83% of the brokerage commission charged by CIS. Net brokerage commissions are recorded in the statement of operations as a reduction of trading income and the amounts paid to the General Partner are recorded as management fees. Prior to September 2000, CISI received a co-general partner fee from the General Partner equal to 1/12 of .25% of the month-end net asset value, as defined. Prior to January 1, 1999, CISI received 1/12 of .40% of the month-end net asset value. CISI no longer as a co-general partner and no longer receives a co-general partner fee. As of March 31, 2003, the Partnership has approximately $34 million of net assets. JWH's allocation was approximately $34 million and MLM's was approximately $34 million of notional funding. The General Partner may replace or add trading advisors at any time. 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 0.25% (0.25% 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) TRADING ACTIVITIES AND RELATED RISKS The Partnership engages in the speculative trading of U.S. and foreign futures contracts, options on U.S. and foreign futures contracts, and forward contracts (collectively derivatives). These derivatives include both financial and non- financial contracts held as part of a diversified trading strategy. The Partnership is exposed to both market risk, the risk arising from changes in the market value of the contracts; and credit risk, the risk of failure by another party to perform according to the terms of a contract. The purchase and sale of futures and options on futures contracts requires margin deposits with a Futures Commission Merchant (FCM). Additional deposits may be necessary for any loss on contract value. The Commodity Exchange Act (CEAct) requires an FCM to segregate all customer transactions and assets from the FCM's proprietary activities. A customer's cash and other property such as U. S. Treasury Bills, deposited with an FCM are considered commingled with all other customer funds subject to the FCM's segregation requirements. In the event of an FCM's insolvency, recovery may be limited to a pro rata share of segregated funds available. It is possible that the recovered amount could be less than the total of cash and other property deposited. The Partnership has cash on deposit with an interbank market maker in connection with its trading of forward contracts. In the event of interbank market maker's insolvency, recovery of the Partnership assets on deposit may be limited to account insurance or other protection afforded such deposits. In the normal course of business, the Partnership does not require collateral from such interbank market maker. Because forward contracts are traded in unregulated markets between principals, the Partnership also assumes a credit risk, the risk of loss from counter party non-performance. For derivatives, risks arise from changes in the market value of the contracts. Theoretically, the Partnership is exposed to a market risk equal to the value of futures and forward contracts purchased and unlimited liability on such contracts sold short. As both a buyer and seller of options, the Partnership pays or receives a premium at the outset and then bears the risk of unfavorable changes in the price of the contract underlying the option. The notional amounts of open contracts at March 31, 2003, as disclosed in the Schedule of Investments, do not represent the Partnership's risk of loss due to market and credit risk, but rather represent the Partnership's extent of involvement in derivatives at the date of the statement of financial condition. Net trading results from derivatives for the periods presented are reflected in the statement of operations and equal gains (losses) from trading less brokerage commissions. Such trading results reflect the net gain arising from the Partnership's speculative trading of futures contracts, options on futures contracts, and forward contracts. The Limited Partners bear the risk of loss only to the extent of the net asset value of their Partnership units. (6)FINANCIAL HIGHLIGHTS The following financial highlights show the Partnership's financial performance for the three months ended March 31, 2003. Total return is calculated as the change in a theoretical limited partner's investment over the entire period. Total return is calculated based on the aggregate return of the Partnership taken as a whole. Total return 15.03% Ratio to average net assets: Net income 14.23% General and administrative expenses: Expenses 0.70% Incentive fees 1.15% Total general and Administrative expenses 1.85% The net investment income and general and administrative expenses ratios are computed based upon the weighted average net assets for the Partnership for the period ended March 31, 2003. (7) 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, 2002, as filed with the Securities and Exchange Commission on March 31, 2003, 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, 2003 The Partnership recorded a gain of $6,420,752 or $311.51 per Unit for the first quarter of 2003. This compares to a loss of $5,278,393 or $212.95 per Unit for the first quarter of 2002. The Partnership continued to employ John W. Henry & Company, Inc.'s Strategic Allocation Program (JWH SAP) as its core manager, and Mount Lucas Management Corporation's MLM Index (Unleveraged) (MLM) for an overlay program. In January the fund gained 16.02%. JWH was up 14.43%, with MLM adding 1.55%. JWH's investment style took advantage of uncertainty in the energy markets, a weakening dollar, and a poor global economic outlook. All sectors of the program made a positive contribution in January. MLM had profits in energies primarily, followed by financials and currencies. Although the media had focused on the impending war with Iraq and the strike in Venezuela and the effect these events were having on crude oil prices, the best performing part of the energy sector was natural gas. The Partnership posted a gain of $6,842,542 or $331.95 per Unit in January. In February the Partnership gained 8.56%. JWH had a gain of 7.45% as the program continued to profit from long term trends, primarily in the energy and fixed income markets. The impending war with Iraq, slowing global economies, weaker US dollar and high energy prices are the factors that propelled market prices in the Fund's favor. MLM had a profit of approximately 1%, and as was the case in January, the positive performance was driven by the energy sector. Gains were also seen in the currencies, financials and grains with smaller overall losses in meats, metals and softs. The Partnership posted a loss of $4,252,181 or $205.92 per Unit in February. In March the Fund had a loss of 8.67%. JWH was down 6.81% for March with the US-led coalition's war on Iraq taking center stage in financial and energy markets. A week before the actual war started, the markets anticipated a quick victory. THE US dollar strengthened, interest rates rose, and energy markets collapsed. The quick change in direction of the markets resulted in negative performance for the month of March. MLM lost approximately 2% for the Fund in March, not surprisingly driven by market reaction to the war. The largest losses came in the energy sector followed by metals, softs and financials. Grains were positive. The Partnership posted a loss of $4,673,971 or $226.36 per Unit in March. During the quarter, additional Units sold consisted of 1,955.36 limited partnership units; there were no general partnership units sold during the quarter. Additional Units sold during the quarter represented a total of $4,857,896. Investors redeemed a total of 8,173.04 Units during the quarter and the General Partner redeemed 21.65 Units. At the end of the quarter there were 14,374.35 Units outstanding (including 0.42 Units owned by the General Partner). Effective February 1, 2003, Peter Lamoureux, President of Everest Asset Management, Inc. (EAM) became the majority shareholder and sole director of EAM. Steven Foster and Steven Rubin are no longer principals, directors or shareholders. Effective March 7, 2003, EAM dismissed KPMG LLP as certifying accountant for the Partnership. Spicer, Jeffries, & Co. was engaged as the Registrant's independent accountant effective March 10, 2003. During the fiscal quarter ended March 31, 2002, the Partnership had no credit exposure to a counterparty, which is a foreign commodities exchange, or to any counter party dealing in over the counter contracts, which was material. See Footnote 5 of the Financial Statements for procedures established by the General Partner to monitor and minimize market and credit risks for the Partnership. In addition to the procedures set out in Footnote 5, the General Partner reviews on a daily basis reports of the Partnership's performance, including monitoring of the daily net asset value of the Partnership. The General Partner also reviews the financial situation of the Partnership's Clearing Broker on a monthly basis. The General Partner relies on the policies of the Clearing Broker to monitor specific credit risks. The Clearing Broker does not engage in proprietary trading and thus has no direct market exposure, which provides the General Partner assurance that the Partnership will not suffer trading losses through the Clearing Broker. Fiscal Quarter ended March 31, 2002 The Partnership recorded a loss of $5,278,393 or $212.95 per Unit for the first quarter of 2002. This compares to a gain of $4,275,321 or $163.15 per Unit for the first quarter of 2001. The Partnership continued to employ John W. Henry & Company, Inc.'s Strategic Allocation Program (JWH SAP) as its core manager, and Mount Lucas Management Corporation's MLM Index (Unleveraged) (MLM) for an overlay program. In January the fund was down 0.85%. JWH SAP had a loss of 1.05%. Gains from currency and energy positions were outweighed by losses in interest rates, agriculture, metals and stock indices. The gains in currencies came from the Japanese yen, Swiss franc, and the Euro. In energies, profits came from natural gas and crude oil positions. The biggest losses came from US and European interest rate positions. The MLM Index Program (Unleveraged) had a gain of 0.33%. Profits were in energies and softs, losses in metals, meats, grains, currencies and financials. The Partnership posted a loss of $355,767 or $14.17 per Unit in January. Effective January 1, 2002, Mark S. Rzepczynski was appointed President of John W. Henry & Company, Inc. Mr. Rzepczynski was most recently Senior Vice President of Research and Trading. Prior to joining JWH, Mr. Rzepczinski was Vice President and Director of Taxable Credit and Quantitative Research in the fixed-income division of Fidelity Management and Research from 1995 to 1998. Mr. Rzepczynski holds a BA (cum laude) in Economics from Loyola University of Chicago and an AM and PhD in Economics from Brown University. In February the Partnership had a loss of 3.79%. The month was particularly difficult for JWH SAP with conflicting U.S. economic data released creating concerns as to when the U.S. recovery would start. The result was a weaker U.S. dollar against major European currencies causing the largest sector loss for the month. On the flip side, renewed concerns over high levels of U.S. consumer and corporate debt provided profitable trades in the short end of the yield curve. Energies provided minimal profits, mostly from crude. Other commodities markets offered mixed performance. The Partnership posted a loss of $1,561,599 or $62.68 per Unit in February. During mid-month, the Japanese government announced the possibility of implementing a stimulus package to include inflating the economy and larger buy back programs in Japanese government bonds. In addition, the Japanese government proposed a possible program to buy stocks while at the same time introducing new regulations making short selling more difficult. These announcements adversely moved the Japanese government bond and Nikkei against us. Interest Rate and Stock Indices sectors were unprofitable for the month. Conversely, the Japanese government announced that at the end of March they would no longer guarantee time deposits in excess of 10 million yen. This caused concerned Japanese citizens to lower their deposit amounts and in turn purchase physical gold. The ensuing rally in gold pushed the metals sector into positive territory. The MLM Index Program (Unleveraged) had a loss of 0.75%. MLM had a reversal of sector performance from January. All sectors were positive in February except for energies. Everest Asset Management has added two new branch offices to assist with our ongoing effort to provide quality service to selling agents. A branch office has been opened in Charlotte, NC to represent Everest on the east coast, and a branch office has also been set up in Minneapolis, MN to assist in states west of the Mississippi. Ruth Mignerey will be the branch manager of the Charlotte office. Ruth graduated from Syracuse University and was most recently Assistant Vice President and Marketing Specialist in Alternative Investments at IJL/Wachovia Securities. Ruth has five years experience with Wachovia in structuring, marketing and performing due diligence on futures funds. Randy Kelsey will be the branch manager of the western office. Randy has been with Cargill Investor Services (CIS) in Chicago between 1980 and 1997. Between 1997 and 2001, Mr. Kelsey was a Senior Quality Consultant at Cargill, Inc. in Minneapolis. While at CIS, Mr. Kelsey acted as a wholesaler for the JWH Global Trust, a publicly offered trust also traded by JWH. In March the Fund had a loss of 8.56%. Both managers were substantially down for the month. The Partnership posted a loss of $3,361,027 or $136.10 per Unit in March. JWH had a loss of 5.73%. For the JWH SAP, March was a disappointing month despite positive returns from the energy, interest rate, metals and agricultural sectors, which were over powered by losses in currencies and indices. Japan's fiscal year end in March played a key role in producing negative results from yen-denominated markets. Japanese corporations repatriating yen for year-end purposes initially put heavy downward pressure on the USD yen from a level just shy of 134. However, a Japanese government official drew a line in the sand calling for a floor at a USD yen level of 125 126. Probably more influential was the announcement by Japanese regulators tightening short selling rules on the Nikkei higher from short covering and simultaneously moving USD yen and yen crosses lower. The USD yen market quickly reversed when the Japanese Government Pension and Investment Fund announced a JPY 7 trillion larger allocation to non- government fund managers for the new fiscal year. Fifteen percent of these assets would be allocated to non-Japanese markets, creating a demand for non-yen currencies. This brought USD yen quickly above the 132 level. Needless to say, this type of volatility created a very difficult trading environment. The energy sector turned in a solid performance, with each market in positive territory by taking advantage of the up trends. Support for higher prices came from stronger-than-anticipated economic numbers from the U.S. This provided strength to OPEC's announcement in Vienna on March 15th, when they determined there would be no changes in production, at least until the next meeting on June 6th. Additionally, the U.S. Administration's overtures towards Iraq gave further fuel to higher crude prices and put doubt on the United Nations renewing the "Oil for Food" programs for Iraq, which ends in May. Drawdowns in the U.S. stockpiles this month in crude and energy products also provided strength to the markets. Currencies were particularly hard hit this month. As mentioned previously, USD/yen and yen crosses were problematic. The U.S. dollar against the British pound, Swiss franc and Euro traded in a directionless fashion, resulting in losses as well. The South African rand was especially volatile after two relatively quiet weeks, resulting in trading losses. Minor currencies, including the Australian and New Zealand dollar, provided small bright spots with marginal profits. Global indices were demanding because of the conflicting sentiment surrounding both country specific and worldwide economic recovery. The Nikkei, DAX, Eurostoxx and NASDAQ all started the month on a positive note, but either failed to continue or simply faltered and reversed trend, causing losses in these markets. Profits in interest rates in Europe, Canada and Australia marginally outweighed losses in the United States and Japan. The Euro-Bund, Euro-Bobl and Australian 3-year bond futures provided solid profits from the well-defined downtrend. U.S. interest rates, which had been trending higher on fears of double dip recession in February, turned sharply lower early in March and experienced range bound trading for the remainder of the month, which provided little opportunity for profits. Metals were all positive with the exception of aluminum. Current over-supply conditions in aluminum made it difficult to keep pace with other base metals, copper, nickel and zinc, that trended higher as a result of inventory building in the U.S. Gold and silver continued to benefit from inflationary fears as nominal rates of return remain very low. MLM Index Program (Unleveraged) had a loss of 5.88% for the month, but the effect on the Fund was a loss of approximately 2.96% since the MLM Program is only one-half allocated for the overlay. Dramatic market reversals, particularly in the energy markets, spurred by the notion of a U.S. economic recovery and escalating tension in the Middle East resulted in a very difficult March for the MLM Index. Though certainly within the range of historical experience, this kind of result is definitely on the lower end of expectations for monthly returns of the Index. As noted last month, the Index was positioned for continued weakness in commodity prices and firmness in the bond market. As a result of the action during the month, the Index now has a much more balanced exposure to the commodity markets and currency markets, and is short the U.S. bond markets. The change in positions after a difficult month demonstrates the self-correcting nature of the MLM Index technology. While there can be no assurance that the new exposures will be successful, Mount Lucas Management Corporation believes that the Index discipline limits the single position risk. During the quarter, additional Units sold consisted of 4.09 limited partnership units; there were no general partnership units sold during the quarter. Additional Units sold during the quarter represented a total of $5,941. Investors redeemed a total of 647.27 Units during the quarter. At the end of the quarter there were 24,462.69 Units outstanding (including 77.48 Units owned by the General Partner). During the fiscal quarter ended March 31, 2002, the Partnership had no credit exposure to a counterparty, which is a foreign commodities exchange, or to any counter party dealing in over the counter contracts, which was material. See Footnote 5 of the Financial Statements for procedures established by the General Partner to monitor and minimize market and credit risks for the Partnership. In addition to the procedures set out in Footnote 5, the General Partner reviews on a daily basis reports of the Partnership's performance, including monitoring of the daily net asset value of the Partnership. The General Partner also reviews the financial situation of the Partnership's Clearing Broker on a monthly basis. The General Partner relies on the policies of the Clearing Broker to monitor specific credit risks. The Clearing Broker does not engage in proprietary trading and thus has no direct market exposure, which provides the General Partner assurance that the Partnership will not suffer trading losses through the Clearing Broker. 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, 2002. 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 The Partnership filed Form 8-K on March 17, 2003, reporting the change in certifying accountants and the change in principals. 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, 15, 2003 By: Everest Asset Management, Inc., its General Partner 		By:	__/s/ Peter Lamoureux______________________ 			Peter Lamoureux 			President CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350 I, Peter Lamoureux, certify that: 1. I have reviewed this quarterly report on Form 10-Q of Everest Futures Fund, L.P.; 2. Based on my knowledge, this quarterly 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 quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly 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 quarterly report; 4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have: (a) Designed such disclosure controls and procedures 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 quarterly report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 45 days prior to the filing date of this quarterly report (the "Evaluation Date"); and (c) Presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. I have disclosed, based on my most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. I have indicated in this quarterly report whether there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. EVEREST FUTURES FUND, L.P. Date: May 15, 2003 By: Everest Asset Management, Inc., its General Partner By: /s/ Peter Lamoureux Peter Lamoureux Director, President, and Treasurer