FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended JUNE 30, 2001
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission file number 0-21286
THE FOUR SEASONS FUND II L.P.
(Exact name of registrant as specified in its charter)
Delaware # 54-1640874
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
c/o JAMES RIVER MANAGEMENT CORP.
103 Sabot Park
Manakin-Sabot, Virginia
(Address of principal executive offices)
23103
(Zip Code)
(804) 578-4500 Attention: Mr. Paul Saunders
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or l5(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
-1-
FORM 10-Q PART 1 ITEM 1 FINANCIAL STATEMENTS
THE FOUR SEASONS FUND II L.P.
COMBINED STATEMENTS OF FINANCIAL CONDITION AS OF JUNE 30, 2001 AND
DECEMBER 31, 2000.
June 30, December 31,
2001 2000
----------- -------------
(Unaudited) (audited)
Cash $ 2,535 $ 18,013
Net Receivable From Commodity Broker:
Receivable For Cash Retained 264,471 237,079
Net Unrealized (Loss) Gain on (9,959) 75,121
Open Futures Contracts
Net Unexpired Option Premiums - 11,800
Accrued Interest Receivable 467 932
Other 432 1,120
U.S. Treasury Strip Securities (At Cost plus Accrued) 1,462,065 1,473,620
---------- ----------
TOTAL ASSETS $1,720,011 $1,817,685
========== ==========
LIABILITIES:
Accrued Brokerage Commissions $ 21,393 $ 29,036
Other Accrued Expenses 11,768 13,728
Accrued Sponsor Fees 6,412 9,826
Accrued Advisory Fees 4,213 2,884
---------- ----------
43,786 55,474
Minority interest in Trading Company 3,381 4,566
---------- ----------
TOTAL LIABILITIES 47,167 60,040
---------- ----------
PARTNERS' CAPITAL:
General Partner ( 22.717 units - 06/30/01) 25,666 26,967
( 22.717 units - 12/31/00)
Limited Partners (1457.909 units - 06/30/01) 1,647,178 1,730,678
(1457.909 units - 12/31/00)
---------- ----------
TOTAL PARTNERS' CAPITAL 1,672,844 1,757,645
---------- ----------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $1,720,010 $1,817,685
========== ==========
PARTNERSHIP UNITS OUTSTANDING 1,480.626 1,480.626
========== ==========
NET ASSET VALUE PER PARTNERSHIP UNIT $ 1,129.82 $ 1,187.10
========== ==========
The accompanying notes are an integral part of these combined statements.
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FORM 10-Q PART 1 ITEM 1 FINANCIAL STATEMENTS
THE FOUR SEASONS FUND II L.P.
COMBINED STATEMENTS OF OPERATIONS (UNAUDITED) -
FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2001 AND JUNE 30, 2000.
Three months Three months Six months Six months
ended 06/30/01 ended 06/30/00 ended 06/30/01 ended 06/30/00
-------------- -------------- -------------- --------------
REVENUES
Trading Profit (Loss)
Net realized gains (losses) $ 49,033 $(19,530) $ 59,601 $ 4,682
Net option premiums 5,958 (1,600) 10,844 (21,012)
Net change in unrealized gains on
open futures contracts (39,882) (19,687) (85,080) 12,428
Net change in unexpired options (26,925) (11,850) (11,800) (11,850)
----------- -------- -------- --------
Total Trading Results (11,816) (52,667) (26,436) (15,752)
Gain on sale of U.S. Treasury Strip Securities - 1,916 - 1,916
Interest income 25,551 28,609 51,797 60,215
----------- -------- -------- --------
Total Revenues 13,735 (22,142) 25,361 46,379
----------- -------- -------- --------
EXPENSES
Brokerage commissions 10,703 11,584 21,712 24,659
Administrative expenses 8,572 4,766 15,465 9,265
Management fees 4,211 4,509 8,533 9,634
Sponsor fees 3,165 3,387 6,412 7,235
----------- -------- -------- --------
Total Expenses 26,650 24,246 52,122 50,793
----------- -------- -------- --------
LOSS BEFORE ALLOCATION OF MINORITY INTEREST (12,915) (46,388) (26,760) (4,414)
ALLOCATION OF MINORITY INTEREST 583 1,562 1,185 1,327
----------- -------- -------- --------
NET LOSS: $ (12,332) $(44,826) $(25,575) $ (3,087)
=========== ======== ======== ========
Limited Partners $ (12,143) $(44,196) $(25,184) $ (2,992)
General Partner (189) (630) (392) (95)
Net loss per unit (8.33) (27.75) (17.27) (4.17)
The accompanying notes are an integral part of these combined statements.
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FORM 10-Q PART 1 ITEM 1 FINANCIAL STATEMENTS
THE FOUR SEASONS FUND II L.P.
COMBINED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (UNAUDITED) -
FOR THE SIX MONTHS ENDED JUNE 30, 2001, AND THE THREE MONTHS
ENDED MARCH 31, 2001.
UNITS OF
PARTNERSHIP
INTEREST LIMITED PARTNERS GENERAL PARTNER TOTAL
PARTNERS' CAPITAL, DECEMBER 31, 2000 1,480.626 $1,730,678 $26,967 $1,757,645
========= ========== ======= ==========
Capital Distributions - (58,316) (909) (59,225)
Net Loss - (13,041) (203) (13,244)
--------- ---------- ------- ----------
PARTNERS' CAPITAL, MARCH 31, 2001 (Unaudited) 1,480.626 $1,659,321 $25,855 $1,685,176
========= ========== ======= ==========
Net Loss - (12,143) (189) (12,332)
--------- ---------- ------- ----------
PARTNERS' CAPITAL, JUNE 30, 2001 (Unaudited) 1,480.626 $1,647,178 $25,666 $1,672,844
========= ========== ======= ==========
December 31, 2000:
Amount $1,187.10
Units outstanding 1,480.626
March 31, 2001:
Amount $1,138.15
Units outstanding 1,480.626
June 30, 2001:
Amount $1,129.82
Units outstanding 1,480.626
The accompanying notes are an integral part of these combined statements.
4
FORM 10-Q PART 1 ITEM 1 FINANCIAL STATEMENTS
THE FOUR SEASONS FUND II L.P.
COMBINED STATEMENT OF CASH FLOWS (UNAUDITED) - FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND JUNE 30, 2000.
6/30/01 6/30/00
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $(25,576) $ (3,087)
Adjustments To Reconcile Net Loss To
Net Cash Provided By Operating Activities:
Net Change In Unrealized Gains
On Open Futures Contracts 85,080 (12,428)
Net Change In Unrealized
Option Premiums 11,800 11,850
Accrued Interest From U.S. Treasury
Strip Securities (48,446) (56,736)
Gain on Sale of U.S. Treasury
Strip Securities - (1,916)
(Increase) Decrease In Operating Assets:
Net Receivable From Commodity
Broker For Cash Retained (26,704) 92,768
Net Receivable From Commodity
Broker For Interest Receivable 465 391
Increase (Decrease) In Operating Liabilities:
Accrued Brokerage Commissions (7,643) (5,359)
Accrued Advisory Fees 1,329 4,499
Accrued Sponsor Fees (3,414) (474)
Other Accrued Expenses (1,960) (5,494)
Redemptions Payable - 111,770
Allocation of Income to Minority Interest (1,185) (1,327)
-------- ---------
Net cash provided by operating activities (16,253) 137,544
-------- ---------
NET CASH FLOWS FROM FINANCING ACTIVITIES
Limited Partner Redemptions - (289,313)
Partner Distributions (59,225) (70,825)
-------- ---------
Net cash used in financing activities (59,225) (360,138)
-------- ---------
NET CASH FLOWS FROM INVESTING ACTIVITIES
Maturity of U.S. Treasury Strip 60,000 71,000
Sale of U.S. Treasury Strip Securities - 154,681
-------- ---------
Net cash provided by investing activities 60,000 225,681
-------- ---------
NET DECREASE IN CASH (15,478) -
CASH AT BEGINNING OF PERIOD 18,013 -
-------- ---------
CASH AT END OF PERIOD 2,535 -
======== =========
The accompanying notes are an integral part of these combined statements.
5
Form 10-Q Part 1 Item 2 Management's Discussion
THE FOUR SEASONS FUND II L.P.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND OPERATING
RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND JUNE 30, 2000:
(A) JUNE 30, JUNE 30,
2001 2000
--------- ---------
PARTNERS' CAPITAL $1,672,843 $1,694,009
For the six month period ended June 30, 2001, Partners'
Capital decreased $ 84,802 due primarily to capital distributions
of $ 59,225, and operating expenses of $ 52,122. The decrease in
capital resulting from capital distributions and operating
expenses was partially offset by the U.S. Treasury Strip
Securities' interest of $ 48,446. Realized and unrealized results
from the trading of futures, options on futures, and currency
forwards amounted to a loss of $ 26,436 for the period ended
June 30, 2001. Largest losses in futures trading were recognized
in the trading of S&P 500 futures contracts and US 30 year bonds;
largest gains were recognized in cotton and Eurodollar futures.
In comparison, for the six month period ended June 30, 2000,
Partners' capital decreased $ 363,225 due to net withdrawals of
$ 289,313, capital distributions of $ 70,825, and operating
expenses of $ 50,793. The decrease in capital resulting from
capital withdrawals and distributions, and operating expenses
was offset partially by the U.S. Securities' interest of $ 56,736.
Net realized and unrealized trading losses of futures contracts,
options on futures contracts, and currency forwards amounted to a
loss of $ (15,752). Largest gains in futures trading were
concentrated in natural gas and 10-yr Treasury Notes contracts,
while largest losses were accumulated in S&P 500 index contracts.
6
(B) The U.S. Treasury Strip Securities are valued at the lower of
cost plus accrued interest or market value. As of June 30,
2001, the cost plus accrued interest value (as shown on the
Combined Statement of Financial Condition) of the U.S. Treasury
Strip Securities is $ 1,462,065 and the value of said securities
at market value is $ 1,513,725. As of June 30, 2000, the
value of the U.S. Treasury Strip Securities at cost plus accrued
interest was $ 1,627,253 and the market value was $ 1,665,396.
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EXHIBITS
None
PART II
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 thereunto duly authorized.
THE FOUR SEASONS FUND II L.P.
(Registrant)
By JAMES RIVER MANAGEMENT CORP.
(General Partner)
By Edward M. Jasinski
Director of Fund Administration
8