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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 April 30, 1997
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 0-17590
THE FOUR SEASONS FUND
(Exact name of registrant as specified in its charter)
Illinois # 36-3586810
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
c/o Heinold Asset Management, Inc.
One Financial Place
440 S. LaSalle - 20th Floor
Chicago, Illinois
(Address of principal executive offices)
60605
(Zip Code)
(312) 663-7900
(Registrant's telephone number, including area code)
Same
(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
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PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
FOUR SEASONS FUND
(An Illinois Limited Partnership)
CONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION
APRIL 30, 1997 JULY 31,
ASSETS (UNAUDITED) 1996
----------- -----------
EQUITY IN FUTURES AND FORWARD TRADING ACCOUNTS:
U.S. TREASURY SECURITIES, AT COST PLUS ACCRUED
INTEREST WHICH APPROXIMATES MARKET VALUE $ 0 $ 0
NET UNREALIZED APPRECIATION ON OPEN
FUTURES AND FORWARD CONTRACTS (2,675) 250,897
AMOUNT DUE FROM (TO) BROKER 2,264,606 2,198,520
----------- -----------
2,261,930 2,449,417
U.S TREASURY STRIP NOTES, AT MARKET VALUE 13,340,089 13,620,157
----------- -----------
TOTAL ASSETS $15,602,020 $16,069,574
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES:
ACCRUED BROKERAGE COMMISSIONS PAYABLE $ 48,313 $ 54,064
OTHER ACCRUED EXPENSES 10,800 7,182
ACCRUED PROFIT SHARE 0 0
----------- -----------
TOTAL LIABILITIES 59,113 61,246
----------- -----------
GENERAL PARTNER'S INTEREST IN TRADING COMPANY 75,543 67,366
----------- -----------
PARTNERS' CAPITAL:
GENERAL PARTNER, 110 UNIT EQUIVALENTS
OUTSTANDING AT APRIL 30, 1997 AND JULY 31, 1996 211,043 198,067
LIMITED PARTNERS, 7,952 AND 8,743 UNITS
OUTSTANDING AT APRIL 30, 1997
AND JULY 31, 1996, RESPECTIVELY 15,256,322 15,742,895
----------- -----------
TOTAL PARTNERS' CAPITAL 15,467,364 15,940,962
----------- -----------
$15,602,020 $16,069,574
=========== ===========
PER OUTSTANDING UNIT OF PARTNERSHIP INTEREST:
NET ASSET VALUE $ 1,918.57 $ 1,800.61
=========== ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
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FOUR SEASONS FUND
(An Illinois Limited Partnership)
CONSOLIDATED
STATEMENTS OF PARTNERS' CAPITAL
FOR THE NINE MONTHS ENDED APRIL 30, 1997 (UNAUDITED)
LIMITED GENERAL
PARTNERS PARTNERS TOTAL
----------- -------- -----------
FUND EQUITY AT JULY 31, 1996 $15,742,895 $198,067 $15,940,962
(8,743 LIMITED PARTNERSHIP UNITS)
ADD (DEDUCT):
REDEMPTION 0F 791 LIMITED
PARTNERSHIP UNITS (1,453,657) (1,453,657)
NET INCOME (LOSS) 967,083 12,976 980,058
----------- -------- -----------
FUND EQUITY AT APRIL 30, 1997 $15,256,322 $211,043 $15,467,364
(7,952 LIMITED PARTNERSHIP UNITS) =========== ======== ===========
NET ASSET VALUE PER UNIT AT
APRIL 30, 1997: $ 1,918.57
==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
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FOUR SEASONS FUND
(An Illinois Limited Partnership)
CONSOLIDATED
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED APRIL 30, 1997 AND 1996 (UNAUDITED)
REVENUES: 1997 1996
---------- ---------
NET REALIZED TRADING GAINS (LOSSES) ON CLOSED
FUTURES CONTRACTS $1,029,408 $ 115,739
INCREASE (DECREASE) IN NET UNREALIZED APPRECIATION
ON OPEN FUTURES AND FORWARD CONTRACTS (253,572) (104,772)
INTEREST INCOME 81,997 107,487
ACCRETION OF U.S TREASURY STRIP NOTES 751,555 734,200
GAIN (LOSS) ON MARKET VALUE OF U.S. TREASURY
STRIP NOTES (77,703) (195,232)
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TOTAL REVENUES 1,531,685 657,422
EXPENSES:
BROKERAGE COMMISSIONS 500,951 598,283
PROFIT SHARE ALLOWABLE TO JOINT VENTURE
TRADING ADVISOR 0 19,306
OTHER EXPENSES 42,500 27,600
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TOTAL EXPENSES 543,451 645,189
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INCOME (LOSS) BEFORE GENERAL PARTNER'S INTEREST
IN TRADING COMPANY 988,233 12,233
GENERAL PARTNER'S INTEREST IN TRADING COMPANY
OPERATING INCOME (LOSS) (8,175) 13,244
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NET INCOME (LOSS) $ 980,058 $ 25,477
========== =========
NET INCOME (LOSS) ALLOCATED TO:
GENERAL PARTNER $ 12,976 $ 1,037
========== =========
NET INCOME (LOSS) ALLOCATED TO:
LIMITED PARTNERS $ 967,083 $ 24,440
========== =========
INCREASE (DECREASE) IN NET ASSET VALUE FOR A
UNIT OUTSTANDING THROUGHOUT EACH PERIOD $ 117.96 $ 9.43
========== =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
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FOUR SEASONS FUND
(An Illinois Limited Partnership)
CONSOLIDATED
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED APRIL 30, 1997 AND 1996 (UNAUDITED)
REVENUES: 1997 1996
--------- -----------
NET REALIZED TRADING GAINS (LOSSES) ON CLOSED
FUTURES CONTRACTS $ 447,220 $ (248,759)
INCREASE (DECREASE) IN NET UNREALIZED APPRECIATION
ON OPEN FUTURES CONTRACTS (499,228) (606,120)
INTEREST INCOME 28,857 22,310
ACCRETION OF U.S TREASURY STRIP NOTES 252,772 240,689
GAIN (LOSS) ON MARKET VALUE OF U.S. TREASURY
STRIP NOTES (208,214) (821,389)
--------- -----------
21,407 (1,413,269)
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EXPENSES:
BROKERAGE COMMISSIONS 161,174 183,983
PROFIT SHARE ALLOCATION TO JOINT VENTURE
TRADING ADVISOR 0 (3,314)
OTHER ADMINISTRATIVE EXPENSES 21,000 9,600
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182,174 190,269
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INCOME (LOSS) BEFORE GENERAL PARTNER'S INTEREST
IN TRADING COMPANY (160,768) (1,603,538)
GENERAL PARTNER'S INTEREST IN TRADING COMPANY
OPERATING INCOME (LOSS) 6,249 24,967
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NET INCOME (LOSS) $(154,519) (1,578,571)
========= ===========
NET GAIN (LOSS) ALLOCATED TO
GENERAL PARTNER $ (1,681) (17,762)
========= ===========
NET GAIN (LOSS) ALLOCATED TO
LIMITED PARTNERS $(157,878) (1,560,809)
========= ===========
INCREASE (DECREASE) IN NET ASSET VALUE FOR A
UNIT OUTSTANDING THROUGHOUT EACH PERIOD $ (15.28) (161.46)
========= ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
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FOUR SEASONS FUND
(An Illinois Limited Partnership)
CONSOLIDATED
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED APRIL 30, 1997 AND 1996 (UNAUDITED)
1997 1996
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FUNDS PROVIDED BY:
NET INCOME (LOSS) $ 980,059 $ 25,477
INCREASE IN OTHER LIABILITIES (29,252)
DECREASE IN EQUITY IN COMMODITY FUTURES
TRADING ACCOUNTS 467,554 1,949,543
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TOTAL FUNDS PROVIDED 1,447,613 1,945,768
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FUNDS APPLIED TO:
REDEMPTION OF LIMITED PARTNERSHIP UNITS 1,453,657 1,945,768
REDEMPTION OF GENERAL PARTNERSHIP UNITS 0 0
INCREASE IN EQUITY IN COMMODITY FUTURES 0
TRADING ACCOUNTS
DECREASE IN OTHER LIABILITIES (6,043) 0
---------- ----------
1,447,613 1,945,768
CHANGE IN CASH BALANCE $ 0 $ 0
---------- ----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS
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THE FOUR SEASONS FUND
(An Illinois Limited Partnership)
NOTES TO FORM 10-Q FINANCIAL STATEMENTS
1. The financial information included herein, other than the condensed
Statement of Financial Condition as of July 31, 1996, has been prepared by
management without audit by Independent Certified Public Accountants. The
condensed Statement of Financial Condition as of April 30, 1997 has been
derived from the audited financial statements as of July 31, 1996. The interim
financial statements do not include all the disclosures contained in the annual
financial statements. The information furnished includes all adjustments which
are, in the opinion of management, necessary for a fair statement of results
for the interim periods. The results of operations as presented, however,
should not be considered indicative of the results to be expected for the
entire year.
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THE FOUR SEASONS FUND
(AN ILLINOIS LIMITED PARTNERSHIP)
NOTES TO FORM 10-Q FINANCIAL STATEMENTS
ITEM 2, Management's Discussion and Analysis of Financial Condition and
Operating results for the nine months ended April 30, 1997.
30-Apr-97 July 31, 1996
Ending Equity(Note A) 15,467,364 15,940,962
Ending equity at April 30,1997 is lower than ending equity at July 31, 1996
due to redemption of limited partnership units.
NINE MONTHS NINE MONTHS
ENDED 4/30/97 ENDED 4/30/96
Net realized trading gains
on closed futures and forward
contracts (Note B) 1,029,408 115,739
Net realized trading gains on closed futures and forward contracts for the
quarter ended 4/30/97 is higher than net realized trading gains on closed
futures and forward contracts for the quarter ended 4/30/96 due to more
profitable trading during the period.
THREE MONTHS THREE MONTHS
ENDED 4/30/97 ENDED 4/30/96
Net realized trading gains
on closed futures and forward
contracts (Note C) 447,220 (248,759)
Net realized trading gains on closed futures and forward contracts for the
quarter ended 4/30/97 is higher than net realized trading gains on closed
futures and forward contracts for the quarter ended 4/30/96 due to more
profitable trading during the period.
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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
(Registrant)
By Heinold Asset Management, Inc.
(General Partner)
By
Lee E. Meyer
Chief Financial Officer
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