UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 10-Q
X Quarterly report pursuant to Section 13 of 15(d) of the
- --- Securities Exchange Act of 1934
For the Quarterly period ended March 31, 1996 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 2-73692
The Balanced Opportunity Fund Limited Partnership
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(Exact name of registrant as specified in its charter)
Illinois 36-3655854
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(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
c/o Rodman & Renshaw Futures Management, Inc.
223 South Wacker Drive, Suite 4500
Chicago, Illinois 60606
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(Address of principal (Zip Code)
executive offices)
(312) 526-2000
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(Registrant's telephone number, including area code)
Indicate by checkmark 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
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Total Pages In This Report - 9
The Balanced Opportunity Fund Limited Partnership
INDEX
PART I - FINANCIAL INFORMATION
Page
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Item 1. Financial Statements -
Consolidated Statements of Financial Condition as of
March 31, 1996 (unaudited) and June 30, 1995 3
Consolidated Statements of Operations (unaudited) for the
three-month and nine-month periods ended March 31, 1996 and 1995 4
Consolidated Statements of Changes in Partners' Capital (unaudited)
for the nine-month period ended March 31, 1996 and the
year ended June 30, 1995 5
Note to Unaudited Consolidated Financial Statements --
March 31, 1996 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
Part II - OTHER INFORMATION 8
Item 6. Reports on Form 8-K 8
SIGNATURES 9
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
THE BALANCED OPPORTUNITY FUND LIMITED PARTNERSHIP
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
March 31,
1996 June 30,
(unaudited) 1995
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ASSETS
Equity in commodity futures trading accounts:
Cash $ 689,000 $1,147,000
Net unrealized gain on open contracts 23,000 84,000
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Total equity in commodity futures
trading accounts 712,000 1,231,000
Guaranteed yield pool, at market 5,148,000 5,527,000
Interest receivable 3,000
State tax receivable 1,000 6,000
Other receivables 32,000 5,000
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Total assets $5,893,000 $6,772,000
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accrued administrative expenses $ 14,000 $ 15,000
Accrued commissions and fees 43,000 36,000
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Total liabilities 57,000 51,000
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Partners' capital
Limited partners (units outstanding:
1996 - 3,579.4502; 1995 - 4,106.4502) 5,660,000 6,544,000
General partner (units outstanding: 111.1143) 176,000 177,000
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Total partners' capital 5,836,000 6,721,000
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TOTAL LIABILITIES AND PARTNERS' CAPITAL $5,893,000 $6,772,000
========== ==========
NET ASSET VALUE PER UNIT $ 1,581.29 $ 1,593.49
========== ==========
<FN>
See note to the unaudited consolidated financial statements.
</FN>
THE BALANCED OPPORTUNITY FUND LIMITED PARTNERSHIP
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
1996 1995 1996 1995
---------- -------- --------- ---------
REVENUES:
Trading profit/(loss):
Realized $(223,000) $166,000 $(17,000) $ 148,000
Change in unrealized (91,000) 184,000 (61,000) (288,000)
Foreign currency gain/(loss) 3,000 7,000 (18,000) 1,000
---------- -------- --------- ----------
Total trading profit/(loss) and
foreign currency gain/(loss) (311,000) 357,000 (96,000) (139,000)
Guaranteed yield pool:
Accrued interest 161,000 111,000 382,000 355,000
Unrealized market value gain/(loss) (74,000) 131,000 (62,000) (28,000)
---------- -------- --------- ----------
Total guaranteed yield pool
revenue 87,000 242,000 320,000 327,000
Interest income 12,000 6,000 31,000 19,000
---------- -------- -------- ----------
Total revenues (212,000) 605,000 255,000 207,000
---------- -------- -------- ----------
EXPENSES:
Brokerage commissions 70,000 32,000 205,000 150,000
Advisory fees 15,000 16,000 47,000 50,000
Administrative expenses 12,000 15,000 34,000 51,000
--------- -------- -------- ----------
Total expenses 97,000 63,000 286,000 251,000
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NET INCOME/(LOSS) $(309,000) $542,000 $ (31,000) $ (44,000)
========== ======== ========== ==========
NET INCOME/(LOSS) ALLOCATED TO:
Limited partners $(300,000) $528,000 $ (30,000) $ (44,000)
========== ======== ========== ==========
General partner $ (9,000) $ 14,000 $ (1,000) $ 0
========== ======== ========== ==========
NET INCOME/(LOSS) PER UNIT
OUTSTANDING FOR ENTIRE PERIOD $ (83.61) $ 124.39 $ (12.20) $ 3.59
========== ======== ========== ==========
<FN>
See note to the unaudited consolidated financial statements.
</FN>
THE BALANCED OPPORTUNITY FUND LIMITED PARTNERSHIP
CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' CAPITAL
TOTAL UNITS
OF PARTNERSHIP LIMITED GENERAL
INTEREST PARTNERS PARTNER TOTAL
-------------- -------- ------- -----
PARTNERS' CAPITAL
June 30, 1994 5,096.9000 $ 7,395,000 $165,000 $ 7,560,000
Redemptions (879.3355) (1,245,000) (1,245,000)
Net income 394,000 12,000 406,000
----------- ------------ -------- ------------
PARTNERS' CAPITAL
June 30, 1995 4,217.5645 6,544,000 177,000 6,721,000
Redemptions (527.0000) (854,000) (854,000)
Net (loss) (30,000) (1,000) (31,000)
----------- ------------ --------- ------------
PARTNERS' CAPITAL
March 31, 1996
(unaudited) 3,690.5645 $ 5,660,000 $176,000 $ 5,836,000
=========== =========== ======== ===========
<FN>
See note to the unaudited consolidated financial statements.
</FN>
THE BALANCED OPPORTUNITY FUND LIMITED PARTNERSHIP
NOTE TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1996
NOTE A - BASIS OF PRESENTATION
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The unaudited consolidated financial statements of The Balanced
Opportunity Fund Limited Partnership (the "Partnership") have
been prepared in accordance with generally accepted accounting
principles for interim financial information and with the
instructions to Form 10-Q and Rule 10-01 of Regulation S-X.
Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management,
all adjustments considered necessary for a fair presentation of
the financial condition and results of operations of the
Partnership for the periods presented have been included. For
further information, refer to the consolidated financial
statements and footnotes thereto included in the Partnership's
annual report on Form 10-K for the year ended June 30, 1995.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Capital Resources
The purpose of the Partnership is to trade commodity interests;
as such, the Partnership does not have, nor does it expect to
make, any capital expenditures or have any capital assets that
are not operating capital or assets. The Partnership's use of
assets is solely to provide necessary margin or premiums for, and
to pay any losses incurred in connection with, its trading
activity. Redemption of additional units in the future will
impact the amount of funds available for trading commodity
interests. Redemptions of units during the quarter ended
March 31, 1996, reduced the amount of funds available by
$372,000.
Liquidity
Most United States commodity exchanges limit fluctuations in
commodity futures contract prices during a single day by
regulations referred to as "daily price fluctuation limits" or
"daily limits". During a single trading day, no trades may be
executed at a price beyond the daily limit. Once the price of a
futures contract has reached the daily limit for that day,
positions in that contract can neither be taken nor liquidated.
Commodity futures prices have occasionally reached the daily
limit for several consecutive days with little or no trading.
Similar occurrences could prevent the Partnership from promptly
liquidating unfavorable positions and subject the Partnership to
substantial losses which could exceed the margin initially
committed to such trades. In addition, even if commodity futures
prices have not reached the daily limit, the Partnership may not
be able to execute futures trades at favorable prices if little
trading in such contracts is taking place. Other than these
limitations on liquidity, which are inherent in the Partnership's
trading of commodity interests, the Partnership's assets are
highly liquid and are expected to remain so. A portion of the
Fund's assets have been invested in certain United States
treasury obligations. This investment is designed to provide
ultimate repayment of the investors' initial contributions.
These securities are not used for trading purposes.
Results of Operations
Given the volatility of the markets in which the Partnership
trades, its quarterly results could fluctuate significantly and
are not indicative of the expected results for the fiscal year.
For the three month and nine month periods ended March 31, 1996,
the Partnership reported trading losses of $311,000 and $96,000
with net losses of $309,000 and $31,000, respectively. These
results are compared to trading profits of $357,000 and net
income of $542,000 for the quarter ended March 31, 1995 and
trading losses of $139,000 and net loss of $44,000 for the nine
month period ended March 31, 1995. The losses in the quarter
ended March 31, 1996, were due to trading losses in US Treasury
Bonds, European interest rate instruments, and in foreign
currency markets during February, 1996. There was an increase in
brokerage commissions of $38,000 and $55,000 for the three months
and nine months ended March 31, 1996, as compared to the same
periods last year. A reduction in monthly processing fees
decreased administrative expenses by $3,000 and $17,000 for the
three months and nine months ended March 31, 1996, as compared to
the same periods last fiscal year.
Approximately 80% of the Fund's assets at the commencement of
trading were invested in zero coupon United States Government
Treasury securities. From this Guaranteed Yield Pool there were
net revenues of $87,000 and $320,000 for the three month and nine
month periods ended March 31, 1996, respectively, compared to net
revenues of $242,000 and $327,000 for the same periods last
fiscal year. This is due to the sensitivity of these securities
to prevailing market interest rates.
Net asset value per limited partner unit outstanding decreased
$83.61 and $12.20 during the three and nine month periods ended
March 31, 1996, respectively, compared to increases of $124.39
and $3.59 for the three and nine month periods ended
March 31, 1995, respectively.
PART II. OTHER INFORMATION
Item 6. Reports on Form 8-K
No reports were filed on Form 8-K during the three months ended
March 31, 1996.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
The Balanced Opportunity Fund Limited Partnership
(Registrant)
BY: Rodman & Renshaw Futures Management, Inc., General Partner
BY: /s/
PAUL M. DILLON
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Paul M. Dillon, Director and President
Date: May 13, 1996
BY: /s/MARTIN G. PEMBROKE
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Martin G. Pembroke, Treasurer
Date: May 13, 1996