Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: ProFutures Long/Short Growth Fund, L.P.
Commission File Number 0-25585
Dear Sirs:
This filing contains Form 10-Q for the quarter ended June 30, 2001.
Very truly yours,
PROFUTURES LONG/SHORT GROWTH FUND, L.P.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
X Quarterly Report Under Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the Quarter Ended June 30, 2001
--------------
Commission File Number 0-25585
-------
PROFUTURES LONG/SHORT GROWTH FUND, L.P.
---------------------------------------
(Exact name of registrant)
Delaware 74-2849862
- ----------------------- ------------------------------------
(State of Organization) (I.R.S. Employer Identification No.)
ProFutures, Inc.
11612 Bee Cave Road
Suite 100
Austin, Texas 78738
---------------------------------------
(Address of principal executive office)
Registrant's telephone number
(800) 348-3601
--------------
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.
PROFUTURES LONG/SHORT GROWTH FUND, L.P.
STATEMENTS OF FINANCIAL CONDITION
June 30, 2001 (Unaudited) and December 31, 2000 (Audited)
-------------
June 30, December 31,
2001 2000
---- ----
ASSETS
Equity in broker trading accounts
Cash $12,667,202 $12,482,092
Net option premiums (received) (125,825) (266,750)
Unrealized gain on open contracts 285,368 837,101
----------- -----------
Deposits with broker 12,826,745 13,052,443
Cash 13,881 29,180
----------- -----------
Total assets $12,840,626 $13,081,623
=========== ===========
LIABILITIES
Accounts payable $ 17,509 $ 28,188
Commissions and other trading fees
on open contracts 11,746 14,338
Incentive fees payable 80,560 111,774
Management fees payable 51,799 32,343
Redemptions payable 172,580 208,851
----------- -----------
Total liabilities 334,194 395,494
----------- -----------
PARTNERS' CAPITAL (Net Asset Value)
General Partner - 61 units outstanding at
June 30, 2001 and December 31, 2000 55,909 52,762
Limited Partners - 13,683 and 14,712 units
outstanding at June 30, 2001 and
December 31, 2000 12,450,523 12,633,367
----------- -----------
Total partners' capital
(Net Asset Value) 12,506,432 12,686,129
----------- -----------
$12,840,626 $13,081,623
=========== ===========
See accompanying notes.
PROFUTURES LONG/SHORT GROWTH FUND, L.P.
STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 2001 and 2000
(Unaudited)
-------------
Six months ended
June 30,
2001 2000
---- ----
INCOME
Trading gains (losses)
Realized $ 1,704,558 $(16,674,110)
Change in unrealized (551,733) 5,098,500
------------ ------------
Gain (loss) from trading 1,152,825 (11,575,610)
Interest income 273,636 884,628
------------ ------------
Total income (loss) 1,426,461 (10,690,982)
------------ ------------
EXPENSES
Brokerage commissions 139,685 15,119
Incentive fees 292,906 0
Management fees 190,423 451,430
Operating expenses 72,262 41,059
------------ ------------
Total expenses 695,276 507,608
------------ ------------
NET INCOME (LOSS) $ 731,185 $(11,198,590)
============ ============
NET INCOME (LOSS) PER GENERAL AND
LIMITED PARTNER UNIT
(based on weighted average number of
units outstanding during the period of
14,359 and 22,193, respectively) $ 50.92 $ (504.61)
============ ============
INCREASE (DECREASE) IN NET ASSET VALUE PER
GENERAL AND LIMITED PARTNER UNIT $ 51.21 $ (506.06)
============ ============
See accompanying notes.
PROFUTURES LONG/SHORT GROWTH FUND, L.P.
STATEMENTS OF OPERATIONS
For the Three Months Ended June 30, 2001 and 2000
(Unaudited)
-------------
Three months ended
June 30,
2001 2000
---- ----
INCOME
Trading gains (losses)
Realized $ 1,095,727 $ (6,177,442)
Change in unrealized (1,160,141) (2,061,900)
------------ ------------
(Loss) from trading (64,414) (8,239,342)
Interest income 112,926 384,990
------------ ------------
Total income (loss) 48,512 (7,854,352)
------------ ------------
EXPENSES
Brokerage commissions 72,193 5,833
Incentive fees 80,560 0
Management fees 91,713 194,422
Operating expenses 31,067 14,059
------------ ------------
Total expenses 275,533 214,314
------------ ------------
NET (LOSS) $ (227,021) $ (8,068,666)
============ ============
NET (LOSS) PER GENERAL AND
LIMITED PARTNER UNIT
(based on weighted average number of
units outstanding during the period of
14,125 and 21,319, respectively) $ (16.07) $ (378.47)
============ ============
(DECREASE) IN NET ASSET VALUE PER
GENERAL AND LIMITED PARTNER UNIT $ (14.61) $ (376.44)
============ ============
See accompanying notes.
PROFUTURES LONG/SHORT GROWTH FUND, L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (NET ASSET VALUE)
For the Six Months Ended June 30, 2001 and 2000
(Unaudited)
-------------
Total Partners' Capital
Number of ------------------------------------
Units General Limited Total
--------- -------- ------------ ------------
Balances at
December 31, 2000 14,773 $ 52,762 $ 12,633,367 $ 12,686,129
Net income for the
six months ended
June 30, 2001 3,147 728,038 731,185
Redemptions (1,029) 0 (910,882) (910,882)
------ -------- ------------ ------------
Balances at
June 30, 2001 13,744 $ 55,909 $ 12,450,523 $ 12,506,432
====== ======== ============ ============
Balances at
December 31, 1999 23,375 $101,567 $ 38,536,017 $ 38,637,584
Net (loss) for the
six months ended
June 30, 2000 (31,101) (11,167,489) (11,198,590)
Additions 977 0 1,354,526 1,354,526
Redemptions (4,141) 0 (5,613,574) (5,613,574)
------ -------- ------------ ------------
Balances at
June 30, 2000 20,211 $ 70,466 $ 23,109,480 $ 23,179,946
====== ======== ============ ============
Net asset value
per unit at
December 31, 1999 $ 1,652.95
===========
June 30, 2000 $ 1,146.89
===========
December 31, 2000 $ 858.74
===========
June 30, 2001 $ 909.95
===========
See accompanying notes.
PROFUTURES LONG/SHORT GROWTH FUND, L.P.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
-------------
Note 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
-----------------------------------------------------------
A. General Description of the Partnership
ProFutures Long/Short Growth Fund, L.P. (the Partnership) is a
Delaware limited partnership which operates as a commodity investment
pool. From inception through October 2000, the Partnership engaged in
the speculative trading of United States (U.S.) stock index futures
contracts pursuant to an advisory contract with Hampton Capital
Management, Inc. (Hampton). During October 2000, as a result of
extreme stock market volatility and trading losses, the advisory
contract with Hampton was terminated and trading was halted. Three
new commodity trading advisors were subsequently selected and trading
resumed in December 2000. The Partnership remains focused on trading
stock index futures and options, but the new advisors also trade a
diversified group of commodity, currency, and other futures, forward
and option contracts.
B. Regulation
As a registrant with the Securities and Exchange Commission, the
Partnership is subject to the regulatory requirements under the
Securities Act of 1933 and the Securities Exchange Act of 1934. As a
commodity investment pool, the Partnership is subject to the
regulations of the Commodity Futures Trading Commission, an agency of
the U.S. government which regulates most aspects of the commodity
futures industry; rules of the National Futures Association, an
industry self-regulatory organization; and the requirements of
commodity exchanges and Futures Commission Merchants (brokers) through
which the Partnership trades.
C. Method of Reporting
The Partnership's financial statements are presented in accordance
with accounting principles generally accepted in the United States of
America, which require the use of certain estimates made by the
Partnership's management. Transactions are accounted for on the trade
date. Gains or losses are realized when contracts are liquidated.
Unrealized gains or losses on open contracts (the difference between
contract purchase price and quoted market price) are reflected in the
statement of financial condition as a net gain or loss, as there
exists a right of offset of unrealized gains or losses in accordance
with Financial Accounting Standards Board Interpretation No. 39 -
"Offsetting of Amounts Related to Certain Contracts." Any change in
net unrealized gain or loss from the preceding period is reported in
the statement of operations.
For purposes of both financial reporting and calculation of
redemption value, Net Asset Value Per Unit is calculated by dividing
Net Asset Value by the total number of units outstanding.
PROFUTURES LONG/SHORT GROWTH FUND, L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
-------------
Note 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
-----------
D. Brokerage Commissions
Brokerage commissions include other trading fees and are charged to
expense when contracts are opened.
E. Income Taxes
The Partnership prepares calendar year U.S. and state information
tax returns and reports to the partners their allocable shares of
the Partnership's income, expenses and trading gains or losses.
F. Organizational Charge
The General Partner pays all organizational and offering costs of
the Partnership. As reimbursement for such costs, the General
Partner (or the Distributor, ProFutures Financial Group, Inc., a
broker/dealer affiliate of the General Partner) receives an
organizational charge of 1% of the subscription amount of each
subscriber to the Partnership. Additions are reflected in the
statement of changes in partners' capital (net asset value) net
of such organizational charge totaling $0 for the six and three
months ended June 30, 2001 and $13,545 and $5,384 for the six and
three months ended June 30, 2000.
G. Foreign Currency Transactions
The Partnership's functional currency is the U.S. dollar; however, it
transacts business in currencies other than the U.S. dollar. Assets
and liabilities denominated in currencies other than the U.S. dollar
are translated into U.S. dollars at the rates in effect at the date of
the statement of financial condition. Income and expense items
denominated in currencies other than the U.S. dollar are translated
into U.S. dollars at the rates in effect during the period. Gains and
losses resulting from the translation to U.S. dollars are reported in
income currently.
H. Statements of Cash Flows
The Partnership has elected not to provide statements of cash flows
as permitted by Statement of Financial Accounting Standards No. 102
- "Statement of Cash Flows - Exemption of Certain Enterprises and
Classification of Cash Flows from Certain Securities Acquired for
Resale."
PROFUTURES LONG/SHORT GROWTH FUND, L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
-------------
Note 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
-----------
I. Statement of Financial Accounting Standard No. 133
In June 1998, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standard ("SFAS") No. 133,
"Accounting for Derivative Instruments and Hedging Activities" (the
"Statement"), effective for fiscal years beginning after June 15,
2000, as amended by SFAS No. 137. SFAS No. 133 is further amended by
SFAS No. 138, which clarifies issues surrounding interest risk,
foreign currency denominated items, normal purchases and sales and net
hedging. This Statement supersedes SFAS No. 119 ("Disclosure about
Derivative Financial Instruments and Fair Value of Financial
Instruments") and SFAS No. 105 ("Disclosure of Information about
Financial Instruments with Off-Balance Sheet Risk and Financial
Instruments with Concentrations of Credit Risk") whereby disclosure of
average aggregate fair values and contract/notional values,
respectively, of derivative financial instruments is no longer
required for an entity such as the Partnership which carries its
assets at fair value. The application of the provisions of SFAS No.
133, as amended by SFAS No. 137 and SFAS No. 138, did not have a
significant effect on the financial statements.
J. Interim Financial Statements
In the opinion of management, the unaudited interim financial
statements reflect all adjustments, which were of a normal and
recurring nature, necessary for a fair presentation of financial
position as of June 30, 2001, and the results of operations for
the six and three months ended June 30, 2001 and 2000.
Note 2. GENERAL PARTNER
---------------
The General Partner of the Partnership is ProFutures, Inc., which
conducts and manages the business of the Partnership. The
Limited Partnership Agreement requires the General Partner and/or
its principals and affiliates to maintain capital accounts equal to
at least 1% of the total capital of the Partnership. At June 30, 2001
and December 31, 2000, the capital accounts of the General Partner
and/or its principals and affiliates totaled $493,357 and $465,592,
respectively.
The Limited Partnership Agreement was amended effective
February 16, 1999 and generally requires that the General Partner
maintain a net worth of up to $1,000,000. ProFutures, Inc. has
callable subscription agreements with ABN AMRO Incorporated (ABN),
formerly ING (U.S.) Securities, Futures & Options, Inc., the
Partnership's broker, whereby ABN has subscribed to purchase (up to
$14,000,000) the number of shares of common stock of ProFutures, Inc.
necessary to maintain the General Partner net worth requirements.
PROFUTURES LONG/SHORT GROWTH FUND, L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
-------------
Note 2. GENERAL PARTNER (CONTINUED)
---------------------------
The Partnership paid the General Partner a monthly management fee
equal to 1/4 of 1% (3% annually) of month-end Net Assets (as defined
in the Limited Partnership Agreement) through November 2000.
Effective December 1, 2000, the General Partner management fee was
reduced to 1/6 of 1% (2% annually) of month-end Net Assets.
Total management fees earned by ProFutures, Inc. for the six months
ended June 30, 2001 and 2000 were $126,768 and $451,430, respectively.
Such management fees earned for the three months ended June 30, 2001
and 2000 were $61,081 and $194,422, respectively. Management fees
payable to ProFutures, Inc. as of June 30, 2001 and December 31, 2000
were $21,167 and $21,528, respectively.
Note 3. COMMODITY TRADING ADVISORS
--------------------------
The Partnership had an advisory contract with Hampton Capital
Management, Inc. (Hampton), pursuant to which the Partnership paid a
quarterly incentive fee equal to 20% of New Trading Profits (as
defined in the advisory contract). Effective October 13, 2000, the
advisory contract with Hampton was terminated and trading was halted.
Effective December 1, 2000, the Partnership resumed trading with three
new trading advisors. Each advisor is paid a monthly management fee of
1/12 of 1% (1% annually) of Allocated Net Asset Value (as defined in
each respective advisory agreement). In addition, each advisor
receives a quarterly incentive fee of 20% of Trading Profits (as
defined).
Note 4. DEPOSITS WITH BROKER
--------------------
The Partnership deposits funds with ABN to act as broker, subject
to Commodity Futures Trading Commission regulations and various
exchange and broker requirements. The Partnership earns interest
income on its assets deposited with the broker.
At June 30, 2001 and December 31, 2000, the initial margin
requirement of $2,680,066 and $3,822,228, respectively, is
satisfied by the deposit of cash with such broker.
Note 5. SUBSCRIPTIONS, DISTRIBUTIONS AND REDEMPTIONS
--------------------------------------------
Investments in the Partnership were made by subscription agreement,
subject to acceptance by the General Partner. Effective November
2000, the Partnership is closed to new investment; however, the
General Partner may reopen the Partnership to new investments in the
future.
PROFUTURES LONG/SHORT GROWTH FUND, L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
-------------
Note 5. SUBSCRIPTIONS, DISTRIBUTIONS AND REDEMPTIONS (CONTINUED)
--------------------------------------------------------
The Partnership is not required to make distributions, but may do so
at the sole discretion of the General Partner. A Limited Partner
may require the Partnership to redeem any or all of such Limited
Partner's units at Net Asset Value as of the close of business on
the last day of any month upon advance written notice to the General
Partner. The Limited Partnership Agreement contains a complete
description of the Partnership's redemption policies and procedures.
Note 6. TRADING ACTIVITIES AND RELATED RISKS
------------------------------------
The Partnership engages in the speculative trading of U.S. and foreign
futures contracts and options on futures contracts (collectively
"derivatives"). 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.
Purchase and sale of futures contracts and options on futures
contracts requires margin deposits with the broker. Additional
deposits may be necessary for any loss on contract value. The
Commodity Exchange Act requires a broker to segregate all customer
transactions and assets from such broker's proprietary activities. A
customer's cash and other property (for example, U.S. Treasury bills)
deposited with a broker are considered commingled with all other
customer funds subject to the broker's segregation requirements. In
the event of a broker'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 total cash and other property
deposited.
Open contracts generally mature within three months, however, the
Partnership intends to close all contracts prior to maturity. At
June 30, 2001, the latest maturity date for open contracts is
September 2002, and at December 31, 2000, the latest maturity date
for open contracts is September 2001.
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 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. Written options expose the
Partnership to potentially unlimited liability, and purchased options
expose the Partnership to a risk of loss limited to the premiums paid.
The Partnership has assets on deposit with a financial institution in
connection with its cash management activities. In the event of a
financial institution's insolvency, recovery of Partnership assets on
deposit may be limited to account insurance or other protection
afforded such deposits.
PROFUTURES LONG/SHORT GROWTH FUND, L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
-------------
Note 6. TRADING ACTIVITIES AND RELATED RISKS (CONTINUED)
------------------------------------------------
The General Partner has established procedures to actively monitor
market risk and minimize credit risk, although there can be no
assurance that it will, in fact, succeed in doing so. The General
Partner's basic market risk control procedures consist of
continuously monitoring the trading activity of the various trading
advisors, with the actual market risk controls being applied by the
advisors themselves. The General Partner seeks to minimize credit risk
primarily by depositing and maintaining the Partnership's assets at
financial institutions and brokers which the General Partner believes
to be creditworthy. The Limited Partners bear the risk of loss only
to the extent of the market value of their respective investments and,
in certain specific circumstances, distributions and redemptions
received.
PROFUTURES LONG/SHORT GROWTH FUND, L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
-------------
Note 7. FINANCIAL HIGHLIGHTS
--------------------
The following information contains per unit operating performance data
for a unit outstanding during the entire three months and six months
ended June 30, 2001, and other supplemental financial data. This
information has been derived from information presented in the
financial statements.
Three months ended Six months ended
June 30, 2001 June 30, 2001
(Unaudited) (Unaudited)
----------- -----------
Per Unit Performance
(for a unit outstanding throughout
the entire period)
----------------------------------
Net asset value per unit at
March 31, 2001 and
December 31, 2000, respectively $924.56 $858.74
------- -------
Income (loss) from operations:
Net investment income * (6.40) (19.64)
Net realized and change in unrealized
gain (loss) from trading ** (8.21) 70.85
------- -------
Total income (loss)
from operations (14.61) 51.21
------- -------
Net asset value per unit at
June 30, 2001 $909.95 $909.95
======= =======
Total Return *** (1.58)% 5.96%
Supplemental Data
Ratio to average net assets:
Expenses *, + 6.60% 8.87%
Net investment income *, + (2.93)% (4.50)%
------------------
* Excludes brokerage commissions and other trading fees paid
directly to the broker.
** Includes brokerage commissions and other trading fees paid
directly to the broker.
*** Not annualized
+ Annualized
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations.
A. LIQUIDITY: Substantially all of the Partnership's assets are
highly liquid, such as cash and open futures and option contracts.
It is possible that extreme market conditions or daily price
fluctuation limits at exchanges could adversely affect the liquidity
of open futures contracts. There are no restrictions on the
liquidity of these assets except for amounts on deposit with the
broker needed to meet margin requirements on open futures contracts.
B. CAPITAL RESOURCES: Since the Partnership's business is the purchase
and sale of various commodity interests, it will make few, if any,
capital expenditures.
The Partnership raises additional capital only through the sale of
Units and trading profits (if any) and does not engage in borrowing.
The Partnership sells no securities other than the Units. Effective
November 2000, the Partnership is closed to new investment; however,
the General Partner may reopen the Partnership to new investments in
the future.
C. RESULTS OF OPERATIONS: From inception through October 2000, the
Partnership engaged in the speculative trading of U.S. stock index
futures contracts pursuant to an advisory contract with Hampton
Capital Management, Inc. (Hampton). During October 2000, as a result
of extreme stock market volatility and trading losses, the advisory
contract with Hampton was terminated and trading was halted. Three
new commodity trading advisors were subsequently selected and trading
resumed in December 2000. The Partnership remains focused on trading
stock index futures and options, but the new advisors also trade a
diversified group of commodity, currency, and other futures, forward
and option contracts.
The Partnership's net income (loss) for the six months ended June 30,
2001 and 2000 consisted of the following:
2001 2000
---- ----
Three months ended March 31 $ 958,206 $ (3,129,924)
Three months ended June 30 (227,021) (8,068,666)
--------- ------------
Six months ended June 30 $ 731,185 $(11,198,590)
========= ============
The Partnership's trading losses for the quarter ended June 30, 2001
occurred primarily in the metals, currencies and interest rates
markets and were largely offset by gains in the equities, energies and
agricultural markets.
The Partnership's net trading gains for the six months ended June 30,
2001 resulted from gains in all market sectors, except for losses in
the energies markets.
The Fund's Trading Advisors were able to profit during the first
quarter of 2001, even though many markets were relatively trendless,
by using very short-term trading strategies in the stock index futures
and writing options on the S&P 500. The decision in late 2000 to
expand the Fund's focus beyond stock indexes by allocating part of the
assets to a more diversified program proved helpful, with additional
gains coming in markets such as foreign currencies, agricultural
commodities, short-term interest rates and metals. The first quarter
ended with a gain of 7.66%.
April 2001 brought a large loss for the Fund, almost all of which came
from stock indexes. On April 18th, the U.S. Federal Reserve announced
a surprise cut in interest rates. This caused the stock market, which
had been trending lower, to move up dramatically in a mid-day surge.
One of the Trading Advisors had sold call options based on a bearish
forecast. The sudden reversal led to these positions being stopped
out at a major loss within a few moments of the Federal Reserve
announcement. April ended with a net loss for the Fund of 10.73%.
May and June 2001 were much more favorable, bringing gains of 3.69%
and 6.32% respectively. Much of the gain came from stock indexes and
foreign currencies as well as agricultural commodities. The second
quarter of 2001 ended with a loss of 1.58% and the first six months of
2001 were a gain of 5.96%.
During the first six months of 2000, the Partnership engaged in the
speculative trading of stock index futures contracts on U.S.
exchanges; therefore, operating results will fluctuate from period to
period. The first and second quarters of 2000 were periods of extreme
volatility in the U.S. equity markets. For most of both the first and
second quarters, the Advisor generally maintained a long market
position. The net trading losses in the first quarter occurred
primarily early in the quarter as the S&P 500 Index (the "Index") was
declining partially offset by trading gains later in the quarter as
the Index was rising. The net trading losses in the second quarter
occurred throughout the quarter with a majority of the trading losses
occurring on April 14, 2000. The S&P 500 Index declined 5.8% on that
day, and the Advisor was in a maximum leverage long position. This
lead to a one day loss for the Partnership of 19.79%.
At June 30, 2001, partners' capital totaled $12,506,432, a net
decrease of $179,697 from December 31, 2000, due to redemptions of
$910,882 exceeding net income for the six months ended June 30, 2001.
The General Partner has established procedures to actively monitor
market risk and minimize credit risk, although there can be no
assurance that it will, in fact, succeed in doing so. The General
Partner's basic market risk control procedures consist of continuously
monitoring the trading activity of the various advisors with the
actual market risk controls being applied by the advisors themselves.
The General Partner seeks to minimize credit risk primarily by
depositing and maintaining the Partnership's assets at financial
institutions and brokers which the General Partner believes to be
creditworthy.
Due to the speculative nature of trading derivatives, the
Partnership's income or loss from operations may vary widely from
period to period. Management cannot predict whether the Partnership's
future Net Asset Value per Unit will increase or experience a decline.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
D. POSSIBLE CHANGES: The General Partner reserves the right to
terminate certain and/or engage additional trading advisors or
change any of the Partnership's clearing arrangements.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
None.
Item 2. Changes in Securities.
None.
Item 3. Defaults Upon Senior Securities.
Not Applicable.
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.
There were no reports filed on Form 8-K.
Exhibits filed herewith:
None.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Partnership has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
PROFUTURES LONG/SHORTH GROWTH FUND, L.P.
(Partnership)
By /s/ Gary D. Halbert
---------------------------------
Gary D. Halbert, President
ProFutures, Inc., General Partner