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 SEPTEMBER 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
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FORM 10-Q PART 1 ITEM 1 FINANCIAL STATEMENTS
THE FOUR SEASONS FUND II L.P.
COMBINED CONDENSED STATEMENTS OF FINANCIAL CONDITION AS OF SEPTEMBER 30, 2001
AND DECEMBER 31, 2000.
September 30, December 31,
2001 2000
----------------- ----------------
(Unaudited) (audited)
ASSETS:
Cash $ 2,942 $ 18,013
Net Receivable From Commodity Broker:
Receivable For Cash Retained 174,412 237,079
Net Unrealized Gain on
Open Futures Contracts 45,125 75,121
Net Unexpired Option Premiums 26,200 11,800
Accrued Interest Receivable 279 932
Other 454 1,120
U.S. Treasury Strip Securities (Cost plus Accrued interest) 1,486,757 1,473,620
----------------- ---------------
TOTAL ASSETS $ 1,736,169 $ 1,817,685
================= ================
LIABILITIES:
Other Accrued Expenses $ 13,675 $ 2,884
Accrued Brokerage Commissions 10,663 29,036
Accrued Advisory Fees 4,271 13,728
Accrued Sponsor Fees 3,177 9,826
----------------- ----------------
31,786 55,474
Minority interest in Trading Company 3,437 4,566
----------------- ----------------
TOTAL LIABILITIES 35,223 60,040
----------------- ----------------
PARTNERS' CAPITAL:
General Partner ( 22.717 units - 09/30/01) 26,097 26,967
( 22.717 units - 12/31/00)
Limited Partners (1457.909 units - 09/30/01) 1,674,849 1,730,678
( 1457.909 units - 12/31/00)
----------------- ----------------
TOTAL PARTNERS' CAPITAL 1,700,946 1,757,645
----------------- ----------------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 1,736,169 $ 1,817,685
================= ================
PARTNERSHIP UNITS OUTSTANDING 1,480.626 1,480.626
================= ================
NET ASSET VALUE PER PARTNERSHIP UNIT $ 1,148.80 $ 1,187.10
================= ================
The accompanying notes are an integral part of these combined condensed
financial statements.
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FORM 10-Q PART 1 ITEM 1 FINANCIAL STATEMENTS
THE FOUR SEASONS FUND II L.P.
COMBINED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE MONTHS AND
NINE MONTHS ENDED SEPTEMBER 30, 2001 AND SEPTEMBER 30, 2000.
Three months Three months Nine months Nine months
ended 09/30/01 ended 09/30/00 ended 09/30/01 ended 09/30/00
-------------- -------------- -------------- --------------
REVENUES
Trading Profit (Loss)
Net realized gains (losses) $ (45,353) $ 48,498 $ 14,247 $ 53,180
Net option premiums (10,909) (11,794) (65) (32,806)
Net change in unrealized gains (losses)
on open futures contracts 55,084 (46,949) (29,996) (34,521)
Net change in unexpired options 26,200 7,500 14,400 (4,350)
-------------- ------------ ------------ ------------
Total Trading Results 25,022 (2,745) (1,414) (18,497)
Gain on sale of U.S. Treasury Strip Securities 0 4,393 0 6,309
Interest income 25,837 27,305 77,634 87,521
-------------- ------------ ------------ ------------
Total Revenues 50,859 28,953 76,220 75,333
-------------- ------------ ------------ ------------
EXPENSES
Brokerage commissions 10,839 11,001 32,552 35,660
Management fees 4,269 4,284 12,802 13,918
Sponsor fees 3,177 3,218 9,590 10,454
Administrative expenses 4,415 4,895 19,880 14,160
-------------- ------------ ------------ ------------
Total Expenses 22,700 23,398 74,824 74,192
-------------- ------------ ------------ ------------
INCOME BEFORE ALLOCATION OF MINORITY INTEREST 28,159 5,555 1,396 1,141
ALLOCATION OF MINORITY INTEREST (57) 364 1,130 1,691
--------------- ------------- ------------- -------------
NET INCOME: $ 28,102 $ 5,919 $ 2,526 $ 2,832
================ ============== ============== ==============
Limited Partners $ 27,671 $ 5,830 $ 2,487 $ 2,838
General Partner 431 89 39 (6)
Net income (loss) per unit 18.98 3.90 1.71 (0.27)
The accompanying notes are an integral part of these combined condensed
financial statements.
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FORM 10-Q PART 1 ITEM 1 FINANCIAL STATEMENTS
THE FOUR SEASONS FUND II L.P.
COMBINED CONDENSED STATEMENT OF PARTNERS' CAPITAL (UNAUDITED) FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 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 Income - 2,487 39 2,526
----------- ------------ -------------- ----------
PARTNERS' CAPITAL, SEPTEMBER 30, 2001 (unaudited) 1,480.626 $ 1,674,849 $ 26,097 $1,700,946
=========== ============ ============== ==========
December 31, 2000:
Amount $ 1,187.10
Units outstanding 1,480.626
September 30, 2001:
Amount $ 1,148.80
Units outstanding 1,480.626
The accompanying notes are an integral part of these combined condensed
financial statements.
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FORM 10-Q PART 1 ITEM 1 FINANCIAL STATEMENTS
THE FOUR SEASONS FUND II L.P.
COMBINED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE NINE MONTHS
ENDED SEPTEMBER 30, 2001 AND SEPTEMBER 30, 2000.
9/30/01 9/30/00
-------------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 2,526 $ 2,832
Adjustments To Reconcile Net Income To
Net Cash Used in Operating Activities:
Net Change In Unrealized Gains
On Open Futures Contracts 29,996 34,521
Net Change In Unrealized
Option Premiums (14,400) 4,350
Accrued Interest From U.S. Treasury
Strip Securities (73,138) (81,611)
Gain on Sale of U.S. Treasury
Strip Securities - (6,309)
(Increase) Decrease In Operating Assets:
Net Receivable From Commodity
Broker For Cash Retained 63,334 1,204
Net Receivable From Commodity
Broker For Interest Receivable 653 (179)
Increase (Decrease) In Operating Liabilities:
Accrued Brokerage Commissions (18,373) 5,380
Accrued Advisory Fees (9,457) 2,364
Accrued Sponsor Fees (6,649) 2,744
Other Accrued Expenses 10,791 (4,424)
Redemptions Payable - 39,256
Allocation of Income to Minority Interest (1,129) (1,691)
-------------- -----------
Net cash used in operating activities (15,846) (4,395)
-------------- -----------
NET CASH FLOWS FROM FINANCING ACTIVITIES
Limited Partner Redemptions - (328,569)
Partner Distributions (59,225) (70,825)
-------------- -----------
Net cash used in financing activities (59,225) (399,394)
-------------- -----------
NET CASH FLOWS FROM INVESTING ACTIVITIES
Maturity of U.S. Treasury Strip 60,000 71,000
Sale of U.S. Treasury Strip Securities - 329,957
-------------- -----------
Net cash provided by investing activities 60,000 400,957
-------------- -----------
NET DECREASE IN CASH (15,071) -
CASH AT BEGINNING OF PERIOD 18,013 -
-------------- -----------
CASH AT END OF PERIOD 2,942 -
============== ===========
The accompanying notes are an integral part of these combined condensed
statements.
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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 NINE MONTHS ENDED SEPTEMBER 30, 2001 AND SEPTEMBER 30, 2000:
(A) SEPT 30, SEPT 30,
2001 2000
---------- ----------
PARTNERS' CAPITAL $1,700,946 $1,660,673
For the nine month period ended September 30, 2001, Partners'
Capital decreased $ 56,699 due primarily to capital distributions of $
59,225, and operating expenses of $ 74,823. The decrease in capital
resulting from capital distributions and operating expenses was
partially offset by the U.S. Treasury Strip Securities' interest of $
73,138. Realized and unrealized results from the trading of futures,
options on futures, and currency forwards amounted to a loss of $
1,414 for the period ended September 30, 2001. Largest losses in
futures trading were recognized in the trading of S&P500 futures and
Lite Crude Oil and Heating Oil futures contracts.
In comparison, for the nine month period ended September 30,
2000, Partners' capital decreased $ 396,561 due to net withdrawals of
$ 328,569, capital distributions of $ 70,825, and operating expenses
of $ 74,192. The decrease in capital resulting from capital
withdrawals and distributions, and operating expenses was offset
partially by the U.S. Securities' interest of $ 81,611. Net realized
and unrealized trading losses of futures contracts, options on futures
contracts, and currency forwards amounted to a loss of $ (18,497).
Largest gains in futures trading were concentrated in US Treasury bond
futures contracts and 10-yr Treasury Notes contracts, while largest
losses were accumulated in S&P 500 index contracts.
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(B) The U.S. Treasury Strip Securities are valued at the lower of
cost plus accrued interest or market value. As of September 30, 2001,
the cost plus accrued interest value (as shown on the Combined
Condensed Statements of Financial Condition) of the U.S. Treasury
Strip Securities is $ 1,486,757 and the value of said securities at
market value is $ 1,543,999.20. As of September 30, 2000, the value of
the U.S. Treasury Strip Securities at cost plus accrued interest was
$1,481,245 and the market value was $ 1,514,983.
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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
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