UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 2005
------------------
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from to
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Commission File number: 333-88460
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QUADRIGA SUPERFUND, L.P.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Delaware 98-0375395
- ------------------------ -----------------------------------
(State of Organization) (IRS Employer Identification Number)
Le Marquis Complex, Unit 5
P.O. Box 1479
Grand Anse
St. George's, Grenada
West Indies N/A
- ---------------------------------------- -----------------------------------
(Address of principal executive offices) (Zip Code)
(473) 439-2418
(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 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months, and (2) has been subject to such filing requirements
for the past 90 days. Yes [X] No [ ]
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act). [ ] Yes [X] No
Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [ ] No [ ]
The number of shares outstanding of each of the issuer's classes of common stock
as of the close business on __________________.
Total number of Pages: 33 plus exhibits
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The following financial statements of Quadriga Superfund, L.P. - Series A are
included in Item 1:
Page
----
FINANCIAL STATEMENTS
Statements of Assets and Liabilities as of September 30, 2005 (unaudited)
and December 31, 2004 (audited) 3
Condensed Schedule of Investments as of September 30, 2005 (unaudited) 4
Condensed Schedule of Investments as of December 31, 2004 (audited) 6
Statements of Operations for the three months ended September 30, 2005 and
September 30, 2004 (unaudited) and for nine months ended September 30, 2005 8
and September 30, 2004 (unaudited)
Statements of Changes in Net Assets for the nine months ended September 30, 2005
and September 30, 2004 (unaudited) 9
Statements of Cash Flows for the nine months ended September 30, 2005 and
September 30, 2004 (unaudited) 10
The following financial statements of Quadriga Superfund, L.P. - Series B are
included in Item 1:
Page
----
FINANCIAL STATEMENTS
Statements of Assets and Liabilities as of September 30, 2005 (unaudited)
and December 31, 2004 (audited) 11
Condensed Schedule of Investments as of September 30, 2005 (unaudited) 12
Condensed Schedule of Investments as of December 31, 2004 (audited) 14
Statements of Operations for the three months ended September 30,
2005 and September 30, 2004 (unaudited) and for nine months ended
September 30, 2005 and September 30, 2004 (unaudited) 16
Statements of Changes in Net Assets for the nine months ended September 30, 2005 and
September 30, 2004 (unaudited) 17
Statements of Cash Flows for the nine months ended September 30, 2005 and September 30, 2004
(unaudited) 18
NOTES TO SERIES A AND SERIES B UNAUDITED FINANCIAL STATEMENTS DATED SEPTEMBER 30, 2005 19-22
2
QUADRIGA SUPERFUND, L.P. - SERIES A
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2005 (UNAUDITED) AND DECEMBER 31, 2004 (AUDITED)
SEPTEMBER 30, DECEMBER 31,
2005 2004
------------- -----------
ASSETS
US GOVERNMENT SECURITIES, at market
cost $44,818,443 and $25,593,575 as of
September 30, 2005 and December 31, 2004 $44,818,443 $25,638,997
DUE FROM BROKERS 3,445,148 4,165,004
UNREALIZED APPRECIATION ON OPEN FORWARD CONTRACTS 847,453 1,801,065
FUTURES CONTRACTS PURCHASED 3,886,089 294,377
FUTURES CONTRACTS SOLD 1,060,027 30,355
CASH 3,321,729 911,222
----------- -----------
Total assets 57,378,889 32,841,020
----------- -----------
LIABILITIES
UNREALIZED DEPRECIATION ON OPEN FORWARD CONTRACTS 446,417 410,499
ADVANCE SUBSCRIPTIONS 3,255,800 475,850
FEES PAYABLE 321,430 186,402
----------- -----------
Total liabilities 4,023,647 1,072,751
----------- -----------
NET ASSETS $53,355,242 $31,768,269
----------- -----------
NUMBER OF UNITS 40,132.994 21,660.138
NET ASSETS VALUE PER SHARE $ 1,329.46 $ 1,466.67
----------- -----------
See accompanying notes to financial statements
3
QUADRIGA SUPERFUND, L.P. - SERIES A
CONDENSED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2005 (UNAUDITED)
PERCENTAGE OF MARKET OR
FACE VALUE NET ASSETS FAIR VALUE
DEBT SECURITIES UNITED STATES, AT MARKET
United States Treasury Bills due
December 1, 2005 (cost $44,818,443),
securities are held in margin accounts
as collateral for open futures and forwards $ 45,050,000 84.0% $ 44,818,443
---- ------------
FORWARD CONTRACTS, AT FAIR VALUE
UNREALIZED APPRECIATION ON FORWARD CONTRACTS
CURRENCIES 0.9% $ 480,540
METALS 0.7 366,913
---- ------------
Total unrealized appreciation on forward contracts 1.6 847,453
---- ------------
UNREALIZED DEPRECIATION ON FORWARD CONTRACTS
(446,417)
CURRENCIES (0.9)
---- ------------
Total unrealized depreciation on forward contracts (0.9) (446,417)
---- ------------
TOTAL FORWARD CONTRACTS, AT FAIR VALUE 0.7% $ 401,036
---- ------------
FUTURES CONTRACTS, AT FAIR VALUE
FUTURES CONTRACTS PURCHASED
CURRENCY (0.5) $ (262,131)
ENERGY 0.9 464,325
FINANCIAL (0.1) (43,623)
FOOD & FIBER 0.1 36,565
INDICES 1.8 955,016
METALS 5.1 2,735,937
---- ------------
Total futures contracts purchase 7.3 3,886,089
---- ------------
FUTURES CONTRACTS SOLD
CURRENCY 1.4 756,238
FINANCIAL 0.1 53,062
FOOD & FIBER 0.5 250,727
---- ------------
Total futures contracts sold 2.0 1,060,027
---- ------------
TOTAL FUTURES CONTRACTS, AT FAIR VALUE 9.3% $ 4,946,116
---- ------------
FUTURES AND FORWARD CONTRACTS BY COUNTRY COMPOSITION
JAPAN 3.1 % $ 1,643,062
UNITED KINGDOM (0.1) (34,016)
UNITED STATES 5.1 2,733,972
OTHER 1.9 1,004,134
---- ------------
TOTAL FUTURES AND FORWARD CONTRACTS BY COUNTRY 10.0% $ 5,347,152
---- ------------
</Table>
See accompanying notes to financial statements
4
QUADRIGA SUPERFUND, L.P. - SERIES A
CONDENSED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2004 (AUDITED)
<Table>
<Caption>
PERCENTAGE OF MARKET OR
FACE VALUE NET ASSETS FAIR VALUE
DEBT SECURITIES UNITED STATES, AT MARKET
United States Treasury Bills due
June 2, 2005 (cost $25,593,575),
securities are held in margin
accounts as collateral for open futures and forwards 25,900,000 80.7% $ 25,638,997
---- -------------
FORWARD CONTRACTS, AT FAIR VALUE
UNREALIZED APPRECIATION ON FORWARD CONTRACTS
CURRENCIES 1.9% $ 617,030
METALS 3.7 1,184,035
---- -------------
Total unrealized appreciation on forward contracts 5.6 1,801,065
---- -------------
UNREALIZED DEPRECIATION ON FORWARD CONTRACTS
CURRENCIES (0.5) (147,157)
METALS (0.8) (263,342)
---- -------------
Total unrealized depreciation on forward contracts (1.3) (410,499)
---- -------------
TOTAL FORWARD CONTRACTS, AT FAIR VALUE 4.3% $ 1,390,566
---- -------------
FUTURES CONTRACTS, AT FAIR VALUE
FUTURES CONTRACTS PURCHASED
FINANCIAL 0.3 $ 93,025
FOOD & FIBER 0.0* (627)
GRAINS 0.2 60,185
INDICES 1.8 559,742
LIVESTOCK 0.1 17,540
METALS (1.4) (435,488)
---- -------------
Total futures contracts purchase 1.0 294,377
---- -------------
FUTURES CONTRACTS SOLD
FOOD & FIBER 0.0* (8,703)
GRAINS 0.0* 45,432
INDICES
WOOD & RUBBER (0.1) (40,874)
---- -------------
Total futures contracts sold 0.0 30,355
---- -------------
TOTAL FUTURES CONTRACTS, AT FAIR VALUE 1.0% $ 324,732
---- -------------
FUTURES AND FORWARD CONTRACTS BY COUNTRY COMPOSITION
CANADA 0.5% $ 158,626
JAPAN 0.6 195,919
UNITED KINGDOM 3.7 1,176,366
UNITED STATES 0.2 82,147
OTHER 0.3 102,240
---- -------------
TOTAL FUTURES AND FORWARD CONTRACTS BY COUNTRY 5.3% $ 1,715,298
---- -------------
</Table>
* Due to rounding
See accompanying notes to financial statements
5
QUADRIGA SUPERFUND, L.P. - SERIES A
STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2005 2004 2005 2004
----------- ----------- ---------- ------------
INVESTMENT INCOME, interest $ 320,899 $ 79,511 $ 685,071 $ 182,263
----------- ----------- ----------- -----------
EXPENSES
Management fee 217,432 113,242 496,624 311,329
Organization and offering expenses 117,531 61,213 268,445 168,286
Operating expenses 17,630 9,182 40,267 25,242
Selling commission 470,123 244,848 1,073,781 673,141
Incentive fee - - - 651,950
Brokerage commissions 551,853 244,937 1,265,740 635,428
Other 434 16,207 1,401 33,590
----------- ----------- ----------- -----------
Total expenses 1,375,003 689,629 3,146,258 2,498,966
----------- ----------- ----------- -----------
NET INVESTMENT LOSS (1,054,104) (610,118) (2,461,187) (2,316,703)
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized loss on futures
and forward contracts (8,646) (2,839,090) (3,364,894) (2,042,213)
Net change in unrealized appreciation
on futures and forward contracts 2,827,548 4,160,695 3,631,854 2,504,617
----------- ----------- ----------- -----------
NET GAIN ON INVESTMENTS 2,818,902 1,321,605 266,690 462,404
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN
NET ASSETS FROM OPERATIONS $ 1,764,798 $ 711,487 $(2,194,227) $(1,854,299)
----------- ----------- ----------- -----------
See accompanying notes to financial statements
6
QUADRIGA SUPERFUND, L.P. - SERIES A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
(UNAUDITED)
2005 2004
------------ ------------
DECREASE IN NET ASSETS FROM OPERATIONS
Net investment loss $ (2,461,187) $ (2,316,703)
Net realized loss on futures and forward contracts (3,364,894) (2,042,213)
Net change in unrealized appreciation on futures
and forward contracts 3,631,854 2,504,617
------------ ------------
NET DECREASE IN NET ASSETS FROM OPERATIONS (2,194,227) (1,854,299)
CAPITAL SHARE TRANSACTIONS
Issuance of Units 27,406,454 13,470,189
Redemption of Units
(3,625,254) (1,931,611)
------------ ------------
NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS 23,781,200 11,538,578
NET INCREASE IN NET ASSETS 21,586,973 9,684,279
NET ASSETS, beginning of period 31,768,269 16,144,789
------------ ------------
NET ASSETS, end of period $ 53,355,242 $ 25,829,068
------------ ------------
UNITS, beginning of period 21,660.138 12,256.648
ISSUANCE OF UNITS 21,224.899 10,057.734
REDEMPTION OF UNITS (2,752.043) (1,534.168)
------------ ------------
UNITS, end of period 40,132.994 20,780.214
------------ ------------
See accompanying notes to financial statements
7
QUADRIGA SUPERFUND, L.P. - SERIES A
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
(UNAUDITED)
2005 2004
------------ -------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net decrease in net assets from operations $ (2,194,227) $ (1,854,299)
Adjustments to reconcile decrease in net assets to net cash used in operating
activities:
Changes in operating assets and liabilities:
US Government securities (19,179,446) (7,474,346)
Due from brokers 719,856 174,406
Unrealized appreciation on open forward contracts 953,612 (680,219)
Futures contracts purchased (3,591,712) (1,513,270)
Unrealized depreciation on open forward contracts 35,918 (92,264)
Futures contracts sold (1,029,672) (218,864)
Fees payable 135,028 56,823
------------ ------------
NET CASH USED IN OPERATING ACTIVITIES (24,150,643) (11,602,033)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Subscriptions, net of change in advance subscriptions 30,186,404 13,056,328
Redemptions, net of redemption payable (3,625,254) (1,939,651)
------------ ------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 26,561,150 11,116,677
------------ ------------
NET INCREASE (DECREASE) IN CASH 2,410,507 (485,356)
CASH, beginning of period 911,222 1,597,546
------------ ------------
CASH, end of period $ 3,321,729 $ 1,112,190
------------ ------------
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES
2004 subscriptions received in 2003 $ 1,097,282
------------
2005 subscriptions received in 2004 $ 475,850
------------
See accompanying notes to financial statements
8
QUADRIGA SUPERFUND, L.P. - SERIES B
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2005 (UNAUDITED) AND DECEMBER 31, 2004 (AUDITED)
SEPTEMBER 30, 2005 DECEMBER 31, 2004
------------------ -----------------
ASSETS
US GOVERNMENT SECURITIES, at market
cost $34,274,419 and $32,907,267 as of
September 30, 2005 and December 31, 2004 $34,274,419 $32,964,488
DUE FROM BROKERS 1,132,669 6,206,789
UNREALIZED APPRECIATION ON OPEN FORWARD CONTRACTS 895,788 3,433,661
FUTURES CONTRACTS PURCHASED 4,255,067 503,878
FUTURES CONTRACTS SOLD 1,138,334 53,415
CASH 239,654 1,826,691
----------- -----------
Total assets 41,935,931 44,988,922
----------- -----------
LIABILITIES
UNREALIZED DEPRECIATION ON OPEN FORWARD CONTRACTS 472,472 976,707
ADVANCE SUBSCRIPTIONS 140,922 1,288,630
REDEMPTION PAYABLE 122,997 -
FEES PAYABLE 115,888 249,221
----------- -----------
Total liabilities 852,279 2,514,558
----------- -----------
NET ASSETS $41,083,652 $42,474,364
----------- -----------
NUMBER OF UNITS 27,146.837 24,547.544
NET ASSETS VALUE PER SHARE $ 1,513.39 $ 1,730.29
----------- -----------
</Table>
See accompanying notes to financial statements.
9
QUADRIGA SUPERFUND, L.P. - SERIES B
CONDENSED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2005 (UNAUDITED)
PERCENTAGE OF MARKET OR
FACE VALUE NET ASSETS FAIR VALUE
DEBT SECURITIES UNITED STATES, AT MARKET
United States Treasury Bills Due December 1, 2005
(cost $34,274,419), Securities are held in margin
accounts as collateral for open futures and forwards $ 34,450,000 83.4% $34,274,419
---- -----------
FORWARD CONTRACTS, AT FAIR VALUE
UNREALIZED APPRECIATION ON FORWARD CONTRACTS
CURRENCIES 1.2% $ 506,063
METALS 1.0 389,725
---- -----------
Total unrealized appreciation on
forward contracts 2.2 895,788
---- -----------
UNREALIZED DEPRECIATION ON FORWARD CONTRACTS
CURRENCIES (1.2) (472,472)
---- -----------
Total unrealized depreciation on
forward contracts (1.2) (472,472)
---- -----------
TOTAL FORWARD CONTRACTS, AT FAIR VALUE 1.0% $ 423,316
---- -----------
FUTURES CONTRACTS, AT FAIR VALUE
FUTURES CONTRACTS PURCHASED
CURRENCY (0.7)% $ (276,305)
ENERGY 1.3 543,991
FINANCIAL 0.0* 23,490
FOOD & FIBER 0.1 38,705
INDICES 2.5 1,010,568
METALS 7.1 2,914,618
---- -----------
Total futures contracts purchased 10.3 4,255,067
---- -----------
FUTURES CONTRACTS SOLD
CURRENCY 2.0 802,437
FINANCIAL 0.1 56,312
FOOD & FIBER 0.7 279,585
---- -----------
Total futures contracts sold 2.8 1,138,334
---- -----------
TOTAL FUTURES CONTRACTS, AT FAIR VALUE 13.1% $ 5,393,401
---- -----------
FUTURES AND FORWARD CONTRACTS BY COUNTRY COMPOSITION
JAPAN 4.3% $ 1,782,057
UNITED KINGDOM 0.2 90,313
UNITED STATES 7.8 3,186,484
OTHER 1.8 757,863
---- -----------
TOTAL FUTURES AND FORWARD CONTRACTS BY COUNTRY 14.1% $ 5,816,717
---- -----------
* Due to rounding
See accompanying notes to financial statements.
10
QUADRIGA SUPERFUND, L.P. - SERIES B
CONDENSED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2004 (AUDITED)
<Table>
<Caption>
PERCENTAGE OF MARKET OR
FACE VALUE NET ASSETS FAIR VALUE
DEBT SECURITIES UNITED STATES, AT MARKET
United States Treasury Bills due
June 2, 2005 (cost $32,907,267),
securities are held in margin
accounts as collateral for open
futures and forwards $ 33,300,000 77.6% $32,964,488
---- -----------
FORWARD CONTRACTS, AT FAIR VALUE
UNREALIZED APPRECIATION ON FORWARD CONTRACTS
CURRENCIES 2.7% $ 1,160,542
METALS 5.4 2,273,119
---- -----------
Total unrealized appreciation on
forward contracts 8.1 3,433,661
---- -----------
UNREALIZED DEPRECIATION ON FORWARD CONTRACTS
CURRENCIES (0.7) (277,021)
METALS (1.6) (699,686)
---- -----------
Total unrealized depreciation on
forward contracts (2.3) (976,707)
---- -----------
TOTAL FORWARD CONTRACTS, AT FAIR VALUE 5.8% $ 2,456,954
---- -----------
FUTURES CONTRACTS, AT FAIR VALUE
FUTURES CONTRACTS PURCHASED
FINANCIAL 0.3 $ 136,558
FOOD & FIBER 0.0* (1,143)
GRAINS 0.2 109,485
INDICES 2.5 1,051,088
LIVESTOCK 0.0* 30,900
METALS (1.9) (823,010)
---- -----------
Total futures contracts purchased 1.1 503,878
---- -----------
FUTURES CONTRACTS SOLD
FOOD & FIBER 0.0* (16,281)
GRAINS 0.2 80,231
INDICES 0.2 64,500
WOOD & RUBBER (0.2) (75,035)
---- -----------
Total futures contracts sold 0.2 53,415
---- -----------
TOTAL FUTURES CONTRACTS, AT FAIR VALUE 1.3% $ 557,293
---- -----------
FUTURES AND FORWARD CONTRACTS BY COUNTRY COMPOSITION
CANADA 0.7 $ 291,605
JAPAN 0.8 360,659
UNITED KINGDOM 4.8 2,026,818
UNITED STATES 0.4 155,681
OTHER 0.4 179,484
---- -----------
TOTAL FUTURES AND FORWARD CONTRACTS BY COUNTRY 7.1% $ 3,014,247
---- -----------
* Due to rounding
See accompanying notes to financial statements.
11
QUADRIGA SUPERFUND, L.P. - SERIES B
STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2005 2004 2005 2004
----------- ----------- ----------- -----------
INVESTMENT INCOME, interest $ 297,409 $ 98,700 $ 766,210 $ 233,717
EXPENSES
Management fee 187,535 145,388 546,091 418,649
Organization and offering expenses 101,370 78,588 295,185 226,297
Operating expenses 15,206 11,789 44,277 33,945
Selling commission 405,481 314,351 1,180,739 905,187
Incentive fee - - - 1,158,857
Brokerage commissions 591,667 438,743 1,672,423 1,199,328
Other 411 29,934 1,046 64,963
----------- ----------- ----------- -----------
Total expenses 1,301,670 1,018,793 3,739,761 4,007,226
----------- ----------- ----------- -----------
NET INVESTMENT LOSS (1,004,261) (920,093) (2,973,551) (3,773,509)
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain (loss) on futures
and forward contracts 1,634,123 (5,006,865) (5,111,702) (3,758,228)
Net change in unrealized appreciation on
futures and forward contracts 1,404,668 7,240,787 2,802,470 4,317,445
----------- ----------- ----------- -----------
NET GAIN (LOSS) ON INVESTMENTS 3,038,791 2,233,922 (2,309,232) 559,217
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 2,034,530 $ 1,313,829 $(5,282,783) $(3,214,292)
----------- ----------- ----------- -----------
See accompanying notes to financial statements.
12
QUADRIGA SUPERFUND, L.P. - SERIES B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
(UNAUDITED)
2005 2004
----------- -----------
DECREASE IN NET ASSETS FROM OPERATIONS
Net investment loss (2,973,551) (3,773,509)
Net realized loss on futures and forward contracts (5,111,702) (3,758,228)
Net change in unrealized appreciation on futures and forward
contracts 2,802,470 4,317,445
------------ ------------
NET DECREASE IN NET ASSETS FROM OPERATIONS (5,282,783) (3,214,292)
CAPITAL SHARE TRANSACTIONS
Issuance of Units 9,920,376 17,067,911
Redemption of Units (6,028,305) (2,420,815)
------------ ------------
NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS 3,892,071 14,647,096
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS (1,390,712) 11,432,804
NET ASSETS, beginning of period
42,474,364 22,136,771
------------ ------------
NET ASSETS, end of period $ 41,083,652 $ 33,569,575
------------ ------------
UNITS, beginning of period 24,547.544 14,945.226
ISSUANCE OF UNITS 6,567.333 11,483.511
REDEMPTION OF UNITS (3,968.040 (1,971.276)
------------ ------------
27,146.837 24,457.461
------------ ------------
UNITS, end of period
See accompanying notes to financial statements.
13
QUADRIGA SUPERFUND, L.P. - SERIES B
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
(UNAUDITED)
2005 2004
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net decrease in net assets from operations $ (5,282,783) $ (3,214,292)
Adjustments to reconcile decrease in net assets
to net cash used in operating activities:
Changes in operating assets and liabilities:
US Government securities (1,309,931) (6,902,135)
Due from/to brokers 5,074,120 131,844
Unrealized appreciation on open forward contracts 2,537,873 (1,130,168)
Futures contracts purchased (3,751,189) (2,501,514)
Unrealized depreciation on open forward contracts (504,235) (171,598)
Futures contracts sold (1,084,919) (514,165)
Fees payable (133,333) 67,083
------------ ------------
NET CASH USED IN OPERATING ACTIVITIES (4,454,397) (14,234,945)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Subscriptions, net of change in advance subscriptions 8,772,668 17,060,911
Redemptions, net of redemption payable (5,905,308) (2,428,967)
------------ ------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 2,867,360 14,631,944
------------ ------------
NET INCREASE (DECREASE) IN CASH (1,587,037) 396,999
CASH, beginning of period 1,826,691 854,910
------------ ------------
CASH, end of period $ 239,654 1,251,909
------------ ------------
Supplemental disclosure of noncash financing activities:
2004 contributions received in 2003
$ 920,395
------------
2005 contributions received in 2004 $ 1,288,630
------------
Redemption payable $ 122,997 -
------------ ------------
See accompanying notes to financial statements.
14
QUADRIGA SUPERFUND, L.P. - SERIES A AND B
NOTES TO FINANCIAL STATEMENTS
September 30, 2005
(Unaudited)
QUADRIGA SUPERFUND, L.P. - SERIES A AND B
1. NATURE OF OPERATIONS
Organization and Business
Quadriga Superfund, L.P., a Delaware Limited Partnership (the "Fund"), commenced
operations on November 5, 2002. The Fund was organized to trade speculatively in
the United States of America and International commodity equity markets using a
strategy developed by Superfund Capital Management, Inc., the General Partner
and Trading Manager of the Fund. The Fund has issued two classes of Units,
Series A and Series B. The two Series will be traded and managed the same way
except degree of leverage.
The term of the Fund shall continue until December 31, 2050, unless terminated
earlier by the General Partner or by operation of the law or a decline in the
aggregate net assets of such series to less than $500,000.
2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The unaudited financial statements have been prepared in accordance with the
rules and regulations of the Securities Exchange Commission ("SEC") and U.S.
generally accepted accounting principles with respect to the Form 10-Q and
reflect all adjustments which in the opinion of management are normal and
recurring, which are necessary for a fair statement of the results of interim
periods presented. It is suggested that these financial statements be read in
conjunction with the financial statements and the related notes included in the
Fund's Annual Report on Form 10-K for the year ended December 31, 2004.
Valuation of Investments in Futures and Forward Contracts
All commodity interests (including derivative financial instruments and
derivative commodity instruments) are used for trading purposes. The commodity
interests are recorded on trade date basis and open contracts are recorded in
the statements of assets and liabilities at fair value on the last business day
of the period, which represents market value for those commodity interests for
which market quotes are readily available.
Exchange-traded futures contracts are valued at settlement prices published by
the recognized exchange. Any spot and forward foreign currency contracts held by
the Funds will be valued at published settlement prices or at dealers' quotes.
The Fund uses the amortized cost method for valuing the US Treasury Bills;
accordingly, the cost of securities plus accreted discount, or minus amortized
premium approximates fair value.
Translation of Foreign Currency
Assets and liabilities denominated in foreign currencies are translated into
U.S. dollar amounts at the period end exchange rates. Purchases and sales of
investments, and income and expenses, that are denominated in foreign
currencies, are translated into U.S. dollar amounts on the transaction date.
Adjustments arising from foreign currency transactions are reflected in the
statements of operations.
The Fund does not isolate that portion of the results of operations arising from
the effect of changes in foreign exchange rates on investments from fluctuations
from changes in market prices of investments held. Such fluctuations are
included in net gain (loss) on investments in the statements of operations.
15
Investment Transactions and Related Investment Income
Investment transactions are accounted for on a trade-date basis. Interest is
recognized on the accrual basis.
Income Taxes
The Fund does not record a provision for income taxes because the partners
report their share of the Fund's income or loss on their returns. The financial
statements reflect the Fund's transactions without adjustment, if any, required
for income tax purposes.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires the General Partner
to make estimates and assumptions that affect the amounts disclosed in the
financial statements. Actual results could differ from those estimates.
3. DUE FROM/TO BROKERS
Due from brokers consists of proceeds from securities sold. Amounts due from
brokers may be restricted to the extent that they serve as deposits for
securities sold short. Amounts due to brokers represent margin borrowings that
are collateralized by certain securities.
In the normal course of business, all of the Fund's marketable securities
transactions, money balances and marketable security positions are transacted
with brokers. The Fund is subject to credit risk to the extent any broker with
which it conducts business is unable to fulfill contractual obligations on its
behalf. The General Partner monitors the financial condition of such brokers and
does not anticipate any losses from these counterparties.
4. ALLOCATION OF NET PROFITS AND LOSSES
In accordance with the Fund's First Amended and Restated Limited Partnership
Agreement dated January 15, 2005 (the "Limited Partnership Agreement"), net
profits and losses of the Fund are allocated to partners according to their
respective interests in the Fund as of the beginning of each month.
Advance subscriptions represent cash received prior to September 30, 2005 for
subscriptions of the subsequent month and do not participate in the earnings of
the Fund until October 1, 2005.
5. RELATED PARTY TRANSACTIONS
In accordance with the "Limited Partnership Agreement", the General Partner
shall be paid a monthly management fee equal to one-twelfth of 1.85% (1.85% per
annum), a monthly organization and offering fee equal to one-twelfth of 1% (1%
per annum) and monthly operating expenses equal to one-twelfth of .15% (.15% per
annum). Superfund Asset Management, Inc., an entity related to the General
Partner by common ownership, shall be paid monthly selling commissions equal to
one-twelfth of 4% (4% per annum) of the month end net asset value of the Fund.
Units purchased on or after February 28, 2005 are subject to a maximum
cumulative selling commission per Unit of 10%.
The General Partner will also be paid a monthly performance/incentive fee equal
to 25% of the new appreciation without respect to interest income. Trading
losses will be carried forward and no further performance/incentive fee may be
paid until the prior losses have been recovered.
6. FINANCIAL HIGHLIGHTS
Financial highlights for the period January 1, 2005 through September 30, 2005
are as follows:
16
SERIES A SERIES B
--------- ---------
Total return
Total return before incentive fees (9.4)% (12.5)%
Incentive fees 0.0 0.0
Total return after incentive fees (9.4)% (12.5)%
========= =========
Ratio to average partners' capital
Operating expenses before incentive fees (8.9)% (9.5)%
Incentive fees 0.0 0.0
--------- ---------
Total expenses (8.9)% (9.5)%
========= =========
Net investment loss before incentive fee (7.0)% (7.5)%
--------- ---------
Net asset value per unit, beginning of period $1,466.67 $1,730.29
Net decrease in net assets from operations (137.21) (216.90)
--------- ---------
Net asset value per unit, end of period $1,329.46 $1,513.39
========= =========
18
Financial highlights are calculated for each series taken as a whole. An
individual partner's return and ratios may vary based on the timing of capital
transactions.
7. FINANCIAL INSTRUMENT RISK
In the normal course of its business, the Fund is party to financial instruments
with off-balance sheet risk, including derivative financial instruments and
derivative commodity instruments. The term "off balance sheet risk" refers to an
unrecorded potential liability that, even though it does not appear on the
balance sheet, may result in a future obligation or loss. These financial
instruments may include forwards, futures and options, whose values are based
upon an underlying asset, index, or reference rate, and generally represent
future commitments to exchange currencies or cash flows, to purchase or sell
other financial instruments at specific terms at specific future dates, or, in
the case of derivative commodity instruments, to have a reasonable possibility
to be settled in cash, through physical delivery or with another financial
instrument. These instruments may be traded on an exchange or over-the-counter
("OTC"). Exchange traded instruments are standardized and include futures and
certain option contracts. OTC contracts are negotiated between contracting
parties and include forwards and certain options. Each of these instruments is
subject to various risks similar to those related to the underlying financial
instruments including market and credit risk. In general, the risks associated
with OTC contracts are greater than those associated with exchange traded
instruments because of the greater risk of default by the counter party to an
OTC contract.
Market risk is the potential for changes in the value of the financial
instruments traded by the Fund due to market changes, including interest and
foreign exchange rate movements and fluctuations in commodity of security
prices. In entering into these contracts, there exists a market risk that such
contracts may be significantly influenced by conditions, such as interest rate
volatility, resulting in such contracts being less valuable. If the markets
should move against all of the futures interest positions at the same time, and
the General Partner was unable to offset such positions, the Fund could
experience substantial losses.
Credit risk is the possibility that a loss may occur due to the failure of a
counter party to perform according to the terms of a contract. Credit risk with
respect to exchange-traded instruments is reduced to the extent that an exchange
or clearing organization acts as a counter party to the transactions. The Fund's
risk of loss in the event of counter party default is typically limited to the
amounts recognized in the statements of assets and liabilities and not
represented by the contract or notional amounts of the instruments. The Fund has
credit risk and concentration risk because the brokers with respect to the
Fund's assets are ADM Investor Services Inc., FIMAT USA, LLC., Bear Stearns &
Co. Inc., Barclays Capital Inc. and Man Financial.
17
The General Partner monitors and controls the Fund's risk exposure on a daily
basis through financial, credit and risk management monitoring systems, and
accordingly believes that it has effective procedures for evaluating and
limiting the credit and market risks to which the Fund is subject. These
monitoring systems allow the Fund's General Partner to statistically analyze
actual trading results with risk adjusted performance indicators and correlation
statistics. In addition, on-line monitoring systems provide account analysis of
futures and forward positions by sector, margin requirements, gain and loss
transactions, and collateral positions.
The majority of these instruments mature within one year of September 30, 2005.
However, due to the nature of the Fund's business, these instruments may not be
held to maturity.
8. SUBSCRIPTIONS AND REDEMPTIONS
Investors must submit subscriptions at least five business days prior to the
applicable month-end closing date and they will be accepted once payments are
received and cleared. All subscriptions funds are required to be promptly
transmitted to HSBC Bank USA (the "Escrow Agent"). Subscriptions must be
accepted or rejected by Superfund Capital Management, Inc. within five business
days of receipt, and the settlement date for the deposit of subscription funds
in escrow must be within five business days of acceptance. No fees or costs will
be assessed on any subscription while held in escrow, irrespective of whether
the subscription is accepted or subscription funds returned. The Escrow Agent
will invest the subscription funds in short-term United States Treasury bills or
comparable authorized instruments while held in escrow.
A limited partner of a Series may request any or all of his investment in such
Series be redeemed by such Series at the net asset value of a Unit within such
Series as of the end of the month, subject to a minimum redemption of $1,000 and
subject further to such limited partner having an investment in such Series,
after giving effect to the requested redemption, at least equal to the minimum
initial investment amount of $5,000. Limited partners must transmit a written
request of such withdrawal to Superfund Capital Management, Inc. not less than
ten business days prior to the end of the month (or such shorter period as
permitted by Superfund Capital Management, Inc.) as of which redemption is to be
effective. Redemptions will generally be paid within 20 days after the date of
redemption. However, in special circumstances, including, but not limited to,
inability to liquidate dealers' positions as of a redemption date or default or
delay in payments due to each Series from clearing brokers, banks or other
persons or entities, each Series may in turn delay payment to persons requesting
redemption of the proportionate part of the net assets of each Series
represented by the sums that are subject of such default or delay.
9. COMMITMENTS AND CONTINGENCIES
On March 10, 2005, Superfund Capital Management, Inc., the General Partner of
Quadriga Superfund L.P., received written notice from the Internal Revenue
Service (the IRS) directed to Quadriga Superfund, L.P. that a late filing
penalty in the amount of $357,500, together with accrued interest in the amount
of $3,095.98, was owed to the IRS in relation to Quadriga Superfund L.P.'s 2003
income tax filings. The penalty and interest assessment were the result of the
assertion by the IRS that Quadriga Superfund, L.P. did not file timely
extensions and, therefore, timely tax filings for 2003. RK Alternative
Investment, Inc., the tax accountant that prepared and submitted the income tax
returns for Quadriga Superfund, L.P., has appealed the penalty and provided
evidence of timely filings to the IRS. Based upon information provided by RK
Alternative Investment, Inc., Superfund Capital Management, Inc., believes that
the penalty and interest will be withdrawn by the IRS after the appeal is
considered. In the event that any or all of the penalty and/or interest balance
is not withdrawn after appeal, Superfund Capital Management, Inc. has committed
to assume any and all liability for the penalty and/or interest. As such,
Quadriga Superfund, L.P. and its limited partners will not incur any liability
should the penalty and interest assessment not be withdrawn by the IRS on
appeal.
19
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
INTRODUCTION
Quadriga Superfund, L.P. commenced the offering of its Units of Limited
Partnership Interest on October 22, 2002. The initial offering terminated on
October 31, 2002 and the Fund commenced operations on November 5, 2002. The
continuing offering period commenced at the termination of the initial offering
period and is ongoing. For the quarter ended September 30, 2005, subscriptions
totaling $22,027,897 have been accepted and redemptions over the same period
totaled $3,372,780.
CAPITAL RESOURCES
The Fund will raise additional capital only through the sale of Units
offered pursuant to the continuing offering and does not intend to raise any
capital through borrowings. Due to the nature of the Fund's business, it will
make no capital expenditures and will have no capital assets which are not
operating capital or assets.
LIQUIDITY
Most United States commodity exchanges limit fluctuations in futures
contracts 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 prices beyond the daily limit. This may affect the Fund's
ability to initiate new positions or close existing ones or may prevent it from
having orders executed. Futures prices have occasionally moved the daily limit
for several consecutive days with little or no trading. Similar occurrences
could prevent the Fund from promptly liquidating unfavorable positions and
subject the Fund to substantial losses, which could exceed the margin initially
committed to such trades. In addition, even if futures prices have not moved the
daily limit, the Fund may not be able to execute futures trades at favorable
prices if little trading in such contracts is taking place.
Trading in forward contracts introduces a possible further impact on
liquidity. Because such contracts are executed "off exchange" between private
parties, the time required to offset or "unwind" these positions may be greater
than that for regulated instruments. This potential delay could be exacerbated
to the extent a counterparty is not a United States person.
Other than these limitations on liquidity, which are inherent in the Fund's
futures trading operations, the Fund's assets are expected to be highly liquid.
RESULTS OF OPERATIONS
Three Months Ended September 30, 2005
Series A:
Net results for the quarter ended September 30, 2005 were a gain of 3.21%
in net asset value compared to the preceding quarter. This increase consisted of
interest income of 0.58%, trading performance (including commissions) of 4.12%
and charges of 1.49% due to management fees, organization expenses, operating
expenses, and selling commissions. At September 30, 2005, the net asset value
per unit of Series A was $1,329.46.
Series B:
Net results for the quarter ended September 30, 2005 were a gain of 5.16%
in net asset value compared to the preceding quarter. This increase consisted of
interest income of 0.75%, trading performance (including commissions) of 6.20%
and charges of 1.79% due to management fees, organization expenses, operating
expenses, and selling commissions. Series B generally magnifies the performance
for Series A during any period, either positive or negative, due to Series B's
leverage of approximately 1.5 times Series A. At September 30, 2005, the net
asset value per unit of Series B was $1,513.39.
20
Fund results for July 2005:
Stock indices were on the rise again and therefore the fund's long
positions in these markets were profitable.
In contrary, long positions in bonds, notes and interest markets produced
losses as prices in these futures markets declined.
Combined long and short positions in the currencies didn't produce any
significant performance, as the trends were inconsistent and trading was quite
volatile.
In the energy sector, long positions took profit again from the slightly
rising price levels.
For the month of July 2005, Series A lost 2.85% and Series B lost 3.68%,
including charges.
Fund results for August 2005:
With the exception of Japanese markets, the upward trend of world stock
indices reversed in August, resulting in losses to the Fund's long positions.
The rise of energy prices continued and a shortage in supplies due to
Hurricane Katrina in the Gulf Coast area of the United States led to new all
time highs on the crude oil markets. The Fund's long positions in this sector
performed well as a result.
The Fund's short positions in foreign currencies incurred losses as the
U.S. Dollar weakened versus most currencies.
The grain markets trended downward with soy products trading at 6-month
lows. As a result, the Fund's short positions in these markets performed
positively.
For the month of August 2005, Series A gained 5.69% and Series B gained
8.02%, each including charges.
Fund results for September 2005:
In the month of September, world stock market indices, most notably Asian
indices, were moving upwards; therefore Quadriga Superfund L.P.'s ("the Fund's")
long positions gained.
Conversely, worldwide treasuries traded lower for the month, resulting in
losses for the Fund's long positions in these markets.
The major metals markets - especially Gold - trended higher during
September and provided a positive result for the "long" strategy
established by the Fund's trading system.
Long positions in foreign currencies markets were unsuccessful this month
due to the strengthening of the U.S. Dollar.
In September 2005, the net asset value of Series A and B increased by 0.51%
and 1.06%, respectively, including charges.
For the third quarter of 2005, the most profitable market group overall was the
metals sector, while the greatest losses were attributable to positions in the
bonds and notes.
21
Three Months Ended June 30, 2005
Series A:
Net results for the quarter ended June 30, 2005 were a loss of 9.81% in net
asset value compared to the preceding quarter. This decrease consisted of
interest income of 0.57%, trading performance (including commissions) of -8.82%
and charges of 1.56% due to management fees, organization expenses, operating
expenses, and selling commissions. At June 30, 2005, the net asset value per
unit of Series A was $1,288.17.
Series B:
Net results for the quarter ended June 30, 2005 were a loss of 13.49% in
net asset value compared to the preceding quarter. This decrease consisted of
interest income of 0.55%, trading performance (including commissions) of -12.55%
and charges of 1.49% due to management fees, organization expenses, operating
expenses, and selling commissions. Series B generally magnifies the performance
for Series A during any period, either positive or negative, due to Series B's
leverage of approximately 1.5 times Series A. At June 30, 2005, the net asset
value per unit of Series B was $1,439.18.
Fund results for April 2005:
During the month of April, we saw stock markets on a decline, which
resulted in a considerable loss to the Fund's long positions.
In contrary, rising prices in the bond and notes markets were beneficial to
the Fund's long positions in this sector.
The prices for the energy markets reversed their rising trend and declined
sharply. As a result, the Fund's long positions in these markets incurred
significant losses.
For the month of April 2005, Series A lost 12.22% and Series B lost 16.86%,
including charges.
Fund results for May 2005:
Rising stock indices led to a positive result of the "long strategy" of the
Fund for these markets.
Long positions in bonds, notes and interest markets also performed well.
A "long/short strategy" in the metal markets resulted in losses. Also,
short positions in the grains produced a negative performance.
For the month of May 2005, Series A gained 0.30% and Series B gained 0.48%,
each including charges.
Fund results for June 2005:
As stock indices continued their rise, the Fund's long positions continued
to be profitable for this month.
Long positions in bonds, notes and interest markets also contributed
notably to this month's positive performance due to rising prices in these
sectors.
Minor losses were incurred by short positions in the soft commodities and
long positions in the energy markets.
In June 2005, the net asset value of Series A and B increased by 2.44% and
3.56%, respectively, including charges.
For the second quarter of 2005, the most profitable market group overall was the
bonds and notes sector, while the greatest losses were attributable to positions
in the energy markets.
22
Three Months Ended March 31, 2005
Series A:
Net results for the quarter ended March 31, 2005 were a loss of 2.62% in
net asset value compared to the preceding quarter. This decrease consisted of
interest income of 0.53%, trading performance (including commissions) of -1.51%
and charges of 1.64% due to management fees, organization expenses, operating
expenses, and selling commissions. At March 31, 2005 and December 31, 2004, the
net asset value per unit of Series A was $1,428.28 and $1,466.67, respectively.
Series B:
Net results for the quarter ended March 31, 2005 were a loss of 3.86% in
net asset value compared to the preceding quarter. This decrease consisted of
interest income of 0.52%, trading performance (including commissions) of -2.78%
and charges of 1.58% due to management fees, organization expenses, operating
expenses, and selling commissions. Series B generally magnifies the performance
for Series A during any period, either positive or negative, due to Series B's
leverage of approximately 1.5 times Series A. At March 31, 2005, the net asset
value per unit of Series B was $1,663.54.
Fund results for January 2005:
The first month of the year 2005 showed a sharp decline of metal prices
causing significant losses for the Fund's long positions.
Also, short positions in foreign currencies were not successful due to the
rising US Dollar and therefore lost considerably.
Long positions in the stock index markets were also contributing to this
month's negative performance.
During the month of January 2005, Series A lost 9.87% and Series B lost
14.74%,including charges.
Fund results for February 2005:
Rising energy prices led to a positive result of the "long" strategy of the
Fund for these markets.
Long positions in stock index markets performed almost as well and were
contributing to this month's positive Fund performance together with combined
long and short positions in other financial futures sectors.
A "long/short" strategy in the agricultural markets was not quite
successful and marked the only noteworthy loss for this month.
For February 2005, Series A gained 1.78% and Series B gained 3.94%, each
including charges.
Fund results for March 2005:
During the first half month of March, the US Dollar was on a rise again and
this development caused substantial losses to the Fund's short positions in
non-domestic currencies.
The trading performance of the financial futures was positive due to short
positions in bonds and notes and both long and short positions in interest
rates.
However, the most important influence on this month's performance resulted
from long positions in the energy sector, which were able to take significant
profits from sharply rising prices.
In March 2005, the net asset value of Series A and B increased by 6.15% and
8.49%, respectively, including charges.
For the first quarter of 2005, the most profitable market group overall was the
energy sector while the highest losses resulted from positions in the foreign
currencies markets.
23
Three Months Ended September 30, 2004:
Series A:
Net results for the quarter ended September 30, 2004 were a gain of 2.72%
in net asset value compared to the preceding quarter. This increase consisted of
interest income of 0.19%, trading performance (including commissions) of 3.54%
and charges of 1.01% due to management fees, organization expenses, operating
expenses, selling commissions and incentive fees. At September 30, 2004, the net
asset value per unit of Series A was $1,242.96.
Series B:
Net results for the quarter ended September 30, 2004 were a gain of 4.00%
in net asset value compared to the preceding quarter. This increase consisted of
interest income of 0.30%, trading performance (including commissions) of 5.37%
and charges of 1.67% due to management fees, organization expenses, operating
expenses, selling commissions and incentive fees. Series B generally magnifies
the performance for Series A during any period, either positive or negative, due
to Series B's leverage of approximately 1.5 times Series A. At September 30,
2004, the net asset value per unit of Series B was $1,372.57.
Fund results for July 2004:
For the month of July, long positions in the financial futures sector, most
importantly in stock market indices were unprofitable.
However, long positions in the energy sector were able to compensate for
these losses by profiting from rising prices mainly in the oil and oil-related
futures markets.
The other market groups didn't reveal significant trends and didn't have
any major influence on this month's slightly negative performance.
During the month of July, Series A lost 0.16% and Series B lost 0.09%,
including charges.
Fund results for August 2004:
After last month's rally, which persisted during the first weeks of August,
oil prices gave back most of their gains resulting in a negative performance for
the fund's long positions in the energy sector, which was the worst among all
market groups
Long positions in financial futures traded sideward, whereas long and short
positions in foreign currencies were able to contribute positively to this
month's trading performance.
A combined long/short strategy in the agricultural sector produced a slight
loss.
For August, Series A decreased by 6.84% and Series B by 9.29%, each
including charges.
Fund results for September 2004:
Due to the impact of Hurricane Ivan on the US oil production in the Gulf of
Mexico, rising prices of crude oils as well as oil-related products resulted in
a major gain of the fund's long positions in these markets.
Long positions in metal markets were able to even outperform these gains
and were the most successful contributors to this month's outstanding trading
performance.
The only notable losses were incurred by long positions in the financial
futures sector.
The net asset value of Series A and B for September gained 10.44% and
14.75%, respectively, including charges.
24
For the third quarter of 2004, the most profitable market group overall was the
energy sector while positions in the stock index markets contributed the
greatest amount of losses.
Three Months Ended June 30, 2004
Series A:
Net results for the quarter ended June 30, 2004 were a loss of 18.71% in
net asset value compared to the preceding quarter. This decrease consisted of
interest income of 0.23%, trading performance (including commissions) of -17.40%
and charges of 1.54% due to management fees, organization expenses, operating
expenses, selling commissions and incentive fees. At June 30, 2004, the net
asset value per unit of Series A was $1,210.02.
Series B:
Net results for the quarter ended June 30, 2004 were a loss of 25.49% in
net asset value compared to the preceding quarter. This decrease consisted of
interest income of 0.21%, trading performance (including commissions) of -24.23%
and charges of 1.47% due to management fees, organization expenses, operating
expenses, selling commissions and incentive fees. Series B generally magnifies
the performance for Series A during any period, either positive or negative, due
to Series B's leverage of approximately 1.5 times Series A. At June 30, 2004,
the net asset value per unit of Series B was $1,319.81.
Fund results for April 2004:
In April, long positions in stock market indices and metals were
unprofitable due to falling prices in both market sectors.
Long positions in the energy sector were the only notably positive
contributors to the fund's performance for this month.
The largest losses resulted from a combined long/short strategy in foreign
currencies.
During the month of April 2004, Series A lost 14.20% and Series B lost
19.59%, including charges.
Fund results for May 2004:
Although the downwards trend on the stock markets reversed, long positions
still produced losses for the month.
Long positions in the energy markets performed well and were the main
source of this month's positive performance.
In the financial futures sector, short positions in Bonds, Notes and
Interest Rates generated slight profits.
Only combined long/short positions in foreign currencies produced
significant losses.
For May, Series A increased by 7.21% and Series B by 9.11%, each including
charges.
Fund results for June 2004:
In the month of June, long positions in stock indices faced a weakening of
the upwards trend, but were still able to perform slightly positive.
Short positions in the other financial futures sectors lost along with long
positions in the metal markets.
The most significant losses were incurred by long positions in the energy
sector due to a sharp price-decline in these markets.
25
The net asset value of Series A and B lost 11.62% and 15.07%, respectively,
including charges.
For the second quarter of 2004, the most profitable market group overall was the
energy sector while positions in the currencies markets contributed the greatest
amount of losses.
Three Months Ended March 31, 2004:
Series A:
Net results for the quarter ended March 31, 2004 were a gain of 13.00% in
net asset value compared to the preceding quarter. This increase consisted of
interest income of 0.24%, trading performance (including commissions) of 18.50%
and charges of 5.75% due to management fees, organization expenses, operating
expenses, selling commissions and incentive fees. At March 31, 2004, the net
asset value per unit of Series A was $1,488.43.
Series B:
Net results for the quarter ended March 31, 2004 were a gain of 19.59% in
net asset value compared to the preceding quarter. This increase consisted of
interest income of 0.24%, trading performance (including commissions) of 26.31%
and charges of 6.96% due to management fees, organization expenses, operating
expenses, selling commissions and incentive fees. Series B generally magnifies
the performance for Series A during any period, either positive or negative, due
to Series B's leverage of approximately 1.5 times Series A. At March 31, 2004,
the net asset value per unit of Series B was $1,771.36.
Fund results for January 2004:
In January, long positions in stock market indices profited considerably
from upward price developments on the stock exchanges.
Long positions in the metal sector performed in a successful manner along
with most of the foreign currencies.
Minor losses were incurred by a combination of long and short positions in
the agricultural markets.
During the month of January 2004, Series A gained 2.46% and Series B gained
3.49%, including charges.
Fund results for February 2004:
For the month of February, the continuing upwards movement on the stock
exchanges resulted in further profits for long positions.
Long positions in the energy and metals markets also performed notably
well.
In the financial futures sector, long positions in bonds, notes and
interest rates also contributed to this month's positive performance.
For February, Series A realized a profit of 12.65% while Series B increased
by 18.63%, each including charges.
Fund results for March 2004:
In the month of March, the upwards trend of the stock indices reversed and
caused a loss for the Fund's long positions.
Also, the strengthening US Dollar caused a negative performance of long
positions in foreign currencies.
Long positions in the metal sector performed slightly negative, whereas
energy and financial futures positions were able to realize minor gains.
26
The net asset value of Series A and B lost 2.10% and 2.59%, respectively,
including charges.
For the first quarter of 2004, the most profitable market group overall was the
metal sector while positions in the currencies markets contributed the greatest
amount of losses.
OFF-BALANCE SHEET RISK
The term "off-balance sheet risk" refers to an unrecorded potential
liability that, even though it does not appear on the balance sheet, may result
in a future obligation or loss. The Fund trades in futures and forward contracts
and is therefore a party to financial instruments with elements of off-balance
sheet market and credit risk. In entering into these contracts, there exists a
market risk that such contracts may be significantly influenced by conditions,
such as interest rate volatility, resulting in such contracts being less
valuable. If the markets should move against all of the futures interests
positions of the Fund at the same time, and if Superfund Capital Management was
unable to offset such positions, the Fund could experience substantial losses.
Superfund Capital Management attempts to minimize market risk through real-time
monitoring of open positions, diversification of the portfolio and maintenance
of a margin-to-equity ratio in all but extreme instances not greater than 50%.
In addition to market risk, in entering into futures and forward contracts
there is a credit risk that a counterparty will not be able to meet its
obligations to the Fund. The counterparty for futures contracts traded in the
United States and on most foreign exchanges is the clearinghouse associated with
such exchange. In general, clearinghouses are backed by the corporate members of
the clearinghouse who are required to share any financial burden resulting from
the non-performance by one of their members and, as such, should significantly
reduce this credit risk. In cases where the clearinghouse is not backed by the
clearing members, like some foreign exchanges, it is normally backed by a
consortium of banks or other financial institutions.
OFF-BALANCE SHEET ARRANGEMENTS
The Fund does not engage in off-balance sheet arrangements with other
entities.
CONTRACTUAL OBLIGATIONS
The Fund does not enter into contractual obligations or commercial
commitments to make future payments of a type that would be typical for an
operating company. The Fund's sole business is trading futures, both long
(contracts to buy) and short (contracts to sell). All such contracts are settled
by offset, not delivery. Substantially all such contracts are for settlement
within four months of the trade date and substantially all such contracts are
held by the Funds for less than four months before being offset or rolled over
into new contracts with similar maturities. The Financial Statements of Series A
and Series B each present a Condensed Schedule of Investments setting forth net
unrealized appreciation (depreciation) of such Series' open future and forward
currency contracts at September 30, 2005 and December 31, 2004.
CRITICAL ACCOUNTING POLICIES - VALUATION OF THE FUND'S POSITIONS
Superfund Capital Management believes that the accounting policies that
will be most critical to the Fund's financial condition and results of
operations relate to the valuation of the Fund's positions. The majority of the
Fund's positions will be exchange-traded futures contracts, which will be valued
daily at settlement prices published by the exchanges. Any spot and forward
foreign currency contracts held by the Fund will also be valued at published
daily settlement prices or at dealers' quotes. Thus, Superfund Capital
Management expects that under normal circumstances substantially all of the
Fund's assets will be valued on a daily basis using objective measures.
27
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
INTRODUCTION
Past Results Not Necessarily Indicative of Future Performance
The Fund is a speculative commodity pool. The market sensitive instruments
held by it are acquired for speculative trading purposes, and all or a
substantial amount of the Fund's assets are subject to the risk of trading loss.
Unlike an operating company, the risk of market sensitive instruments is
integral, not incidental, to the Fund's main line of business.
Market movements can produce frequent changes in the fair market value of
the Fund's open positions and, consequently, in its earnings and cash flow. The
Fund's market risk is influenced by a wide variety of factors, including the
level and volatility of exchange rates, interest rates, equity price levels, the
market value of financial instruments and contracts, the diversification effects
among the Fund's open positions and the liquidity of the markets in which it
trades.
The Fund rapidly acquires and liquidates both long and short positions in a
wide range of different markets. Consequently, it is not possible to predict how
a particular future market scenario will affect performance, and the Fund's past
performance is not necessarily indicative of its future results.
Value at Risk is a measure of the maximum amount which the Fund could
reasonably be expected to lose in a given market sector. However, the inherent
uncertainty of the Fund's speculative trading and the recurrence in the markets
traded by the Fund of market movements far exceeding expectations could result
in actual trading or non-trading losses far beyond the indicated Value at Risk
or the Fund's experience to date (i.e., "risk of ruin"). In light of this, as
well as the risks and uncertainties intrinsic to all future projections, the
inclusion of the quantification included in this section should not be
considered to constitute any assurance or representation that the Fund's losses
in any market sector will be limited to Value at Risk or by the Fund's attempts
to manage its market risk.
Standard of Materiality
Materiality as used in this section, "Quantitative and Qualitative
Disclosures About Market Risk," is based on an assessment of reasonably possible
market movements and the potential losses caused by such movements, taking into
account the leverage, and multiplier features of the Fund's market sensitive
instruments.
QUANTIFYING THE FUND'S TRADING VALUE AT RISK
Quantitative Forward-Looking Statements
The following quantitative disclosures regarding the Fund's market risk
exposures contain "forward-looking statements" within the meaning of the safe
harbor from civil liability provided for such statements by the Private
Securities Litigation Reform Act of 1995 (set forth in Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934).
All quantitative disclosures in this section are deemed to be forward-looking
statements for purposes of the safe harbor, except for statements of historical
fact (such as the dollar amount of maintenance margin required for market risk
sensitive instruments held at the end of the reporting period).
The Fund's risk exposure in the various market sectors traded by Superfund
Capital Management is quantified below in terms of Value at Risk. Due to the
Fund's mark-to-market accounting, any loss in the fair value of the Fund's open
positions is directly reflected in the Fund's earnings (realized or unrealized).
Exchange maintenance margin requirements have been used by the Fund as the
measure of its Value at Risk. Maintenance margin requirements are set by
exchanges to equal or exceed the maximum losses reasonably expected to be
incurred in the fair value of any given contract in 95%-99% of any one-day
intervals. The maintenance margin levels are established by dealers and
exchanges using historical price studies as well as an assessment of current
market volatility and economic fundamentals to provide a probabilistic estimate
of the maximum expected near-term one-day price fluctuation.
28
In the case of market sensitive instruments which are not exchange-traded
(which includes currencies and some energy products and metals in the case of
the Fund), the margin requirements for the equivalent futures positions have
been used as Value at Risk. In those cases in which a futures-equivalent margin
is not available, dealers' margins have been used.
In the case of contracts denominated in foreign currencies, the Value at
Risk figures include foreign margin amounts converted into U.S. Dollars with an
incremental adjustment to reflect the exchange rate risk inherent to the
Dollar-based Fund in expressing Value at Risk in a functional currency other
than Dollars.
In quantifying the Fund's Value at Risk, 100% positive correlation in the
different positions held in each market risk category has been assumed.
Consequently, the margin requirements applicable to the open contracts have
simply been aggregated to determine each trading category's aggregate Value at
Risk. The diversification effects resulting from the fact that the Fund's
positions are rarely, if ever, 100% positively correlated have not been taken
into account.
THE FUND'S TRADING VALUE AT RISK IN DIFFERENT MARKET SECTORS
The following tables indicate the trading Value at Risk associated with the
Fund's open positions by market category as of September 30, 2005. All open
position trading risk exposures of the Fund have been included in calculating
the figures set forth below. As of September 30, 2005 and June 30, 2005, the net
assets for Series A were $53,355,242 and $31,565,019, respectively, and the net
assets for Series B as of such dates were $41,083,652 and $40,419,427,
respectively.
Series A as of September 30, 2005:
SECTOR MARKET RISK (USD) % OF TOTAL CAPITALIZATION (NET ASSETS)
Stock Indices 1,351,175 2.53
Financial Futures 1,161,545 2.18
Currencies 5,907,756 11.07
Agricultural Products 422,444 0.79
Energy 1,324,149 2.48
Metals 1,697,938 3.18
Series B as of September 30, 2005:
SECTOR MARKET RISK (USD) % OF TOTAL CAPITALIZATION (NET ASSETS)
Stock Indices 1,432,917 3.49
Financial Futures 1,229,840 3.00
Currencies 8,458,329 20.59
Agricultural Products 446,790 1.09
Energy 1,401,475 3.41
Metals 1,798,853 4.38
The following tables indicate the trading Value at Risk associated with the
Fund's open positions by market category as of December 31, 2004. All open
position trading risk exposures of the Fund have been included in calculating
the figures set forth below. As of December 31, 2004 and December 31, 2003, the
net assets for Series A were $31,768,269 and $16,144,789, respectively, and the
net assets for Series B as of such dates were $42,474,364 and $22,136,771,
respectively.
Series A as of December 31, 2004:
SECTOR MARKET RISK (USD) % OF TOTAL CAPITALIZATION (NET ASSETS)
Stock Indices 2,658,322 8.37
Financial Futures 1,768,283 5.57
Currencies 3,164,525 9.96
Agricultural Products 359,234 1.13
Metals 2,475,673 7.79
29
Series B as of December 31, 2004:
SECTOR MARKET RISK (USD) % OF TOTAL CAPITALIZATION (NET ASSETS)
Stock Indices 4,989,526 11.75
Financial Futures 3,290,875 7.75
Currencies 5,955,673 14.02
Agricultural Products 668,748 1.57
Metals 4,956,335 10.82
MATERIAL LIMITATIONS ON VALUE AT RISK AS AN ASSESSMENT OF MARKET RISK
The face value of the market sector instruments held by the Fund is
typically many times the applicable maintenance margin requirement (maintenance
margin requirements generally ranging between approximately 1% and 10% of
contract face value) as well as many times the capitalization of the Fund. The
magnitude of the Fund's open positions creates a "risk of ruin" not typically
found in most other investment vehicles. Because of the size of its positions,
certain market conditions -- unusual, but historically recurring from time to
time -- could cause the Fund to incur severe losses over a short period of time.
The foregoing Value at Risk tables -- as well as the past performance of the
Fund -- gives no indication of this "risk of ruin."
NON-TRADING RISK
The Fund has non-trading market risk on its foreign cash balances not
needed for margin. However, these balances (as well as the market risk they
represent) are immaterial. The Fund also has non-trading market risk as a result
of investing a substantial portion of its available assets in U.S. Treasury
Bills. The market risk represented by these investments is immaterial.
QUALITATIVE DISCLOSURES REGARDING PRIMARY TRADING RISK EXPOSURES
The following qualitative disclosures regarding the Fund's market risk
exposures -- except for (i) those disclosures that are statements of historical
fact and (ii) the descriptions of how the Fund manages its primary market risk
exposures -- constitute forward-looking statements within the meaning of Section
27A of the Securities Act and Section 21E of the Securities Exchange Act. The
Fund's primary market risk exposures as well as the strategies used and to be
used by Superfund Capital Management for managing such exposures are subject to
numerous uncertainties, contingencies and risks, any one of which could cause
the actual results of the Fund's risk controls to differ materially from the
objectives of such strategies. Government interventions, defaults and
expropriations, illiquid markets, the emergence of dominant fundamental factors,
political upheavals, changes in historical price relationships, an influx of new
market participants, increased regulation and many other factors could result in
material losses as well as in material changes to the risk exposures and the
risk management strategies of the Fund. There can be no assurance that the
Fund's current market exposure and/or risk management strategies will not change
materially or that any such strategies will be effective in either the short- or
long-term. Investors must be prepared to lose all or substantially all of their
investment in the Fund.
The following were the primary trading risk exposures of the Fund as of
September 30, 2005 by market sector.
Currencies
The Fund's currency exposure is to exchange rate fluctuations, primarily
those which disrupt the historical pricing relationships between different
currencies and currency pairs. These fluctuations are influenced by interest
rate changes as well as political, geopolitical and general economic conditions.
The Fund trades in a large number of currencies, including cross-rates, (e.g.
positions between two currencies other than the U.S. Dollar). Superfund Capital
Management does not anticipate that the risk profile of the Fund's currency
sector will change significantly in the future. As of September 30, 2005 the
exposure to these markets was the highest among all market groups.
30
Interest Rates
Interest rate movements directly affect the price of the sovereign bond
positions held by the Fund and indirectly the value of the Fund's stock index
and currency positions. Interest rate movements in one country as well as
relative interest rate movements between countries could materially impact the
Fund's profitability. The Fund's primary interest rate exposure is to interest
rate fluctuations in the United States, Europe, United Kingdom, Australia and
Japan. The changes in interest rates which have the most effect on the Fund are
changes in long-term as opposed to short-term rates. As of September 30, 2005
the exposure to these markets was relatively low in comparison to historic
levels.
Stock Indices
Generally, the Fund's primary exposure is to the equity price risk in the
G-8 countries and certain other countries with high liquidity (Taiwan, Hong
Kong, Switzerland and Spain). The Fund is primarily exposed to the risk of
adverse price trends or static markets in these countries. Static markets would
not cause major price changes but would make it difficult for the Fund to avoid
being "whipsawed" into numerous smaller losses. As of September 30, 2005 the
exposure to these markets was similar to historic levels.
Energy
The Fund's primary energy market exposure is to crude oil, natural gas and
heating oil. Movements in these markets are often due to geopolitical
developments in the Middle East but can also be caused by shortage due to
extreme weather conditions. As of September 30, 2005, the exposure to these
markets was relatively low in comparison to historic levels.
Metals
The Fund's metals market exposure derives primarily from fluctuations in
the price of gold, silver, platinum, copper, zinc, nickel and aluminum. These
markets are generally diversified in terms of correlation to many of the other
sectors the Fund trades. The exposure to these markets as of September 30, 2005
was similar to historic levels.
Agricultural Market
The Fund's agricultural market exposure is to fluctuations in the price of
cocoa, sugar, coffee, cotton, lean hogs and live cattle. These markets are
generally diversified in terms of correlation to many of the other sectors the
Fund trades. The exposure to these markets as of September 30, 2005 was the
lowest among all market groups.
QUALITATIVE DISCLOSURES REGARDING NON-TRADING RISK EXPOSURE
General
On March 10, 2005, Superfund Capital Management, Inc., the General Partner
of Quadriga Superfund L.P., received written notice from the Internal Revenue
Service (the IRS) directed to Quadriga Superfund, L.P. that a late filing
penalty in the amount of $357,500, together with accrued interest in the amount
of $3,095.98, was owed to the IRS in relation to Quadriga Superfund L.P.'s 2003
income tax filings. The penalty and interest assessment were the result of the
assertion by the IRS that Quadriga Superfund, L.P. did not file timely
extensions and, therefore, timely tax filings for 2003. RK Alternative
Investment, Inc., the tax accountant that prepared and submitted the income tax
returns for Quadriga Superfund, L.P., has appealed the penalty and provided
evidence of timely filings to the IRS. Based upon information provided by RK
Alternative Investment, Inc., Superfund Capital Management, Inc., believes that
the penalty and interest will be withdrawn by the IRS after the appeal is
considered. In the event that any or all of the penalty and/or interest balance
is not withdrawn after appeal, Superfund Capital Management, Inc. has committed
to assume any and all liability for the penalty and/or interest. As such,
Quadriga Superfund, L.P. and its limited partners will not incur any liability
should the penalty and interest assessment not be withdrawn by the IRS on
appeal.
31
Except as described in the preceding paragraph, the Fund is unaware of any
(i) anticipated known demands, commitments or capital expenditures; (ii)
material trends, favorable or unfavorable, in its capital resources; or (iii)
trends or uncertainties that will have a material effect on operations. From
time to time, certain regulatory agencies have proposed increased margin
requirements on futures contracts. Because the Fund generally will use a small
percentage of assets as margin, the Fund does not believe that any increase in
margin requirements, as proposed, will have a material effect on the Fund's
operations.
Foreign Currency Balances
The Fund's primary foreign currency balances are in the G-8 countries along
with Spain and Asian markets. The Fund controls the non-trading risk of these
balances by regularly converting these balances back into dollars (no less
frequently than weekly, and more frequently if a particular foreign currency
balance becomes unusually large based on Superfund Capital Management's
experience).
Treasury Bill Positions
The Fund's only market exposure in instruments held other than for trading
is in its Treasury Bill portfolio. The Fund holds Treasury Bills (interest
bearing and credit risk-free) with durations no longer than six months.
Substantial or sudden fluctuations in prevailing interest rates could cause
immaterial mark-to-market losses on the Fund's Treasury Bills, although
substantially all of these short-term investments are held to maturity.
QUALITATIVE DISCLOSURES REGARDING MEANS OF MANAGING RISK EXPOSURE
The means by which the Fund and Superfund Capital Management, severally,
attempt to manage the risk of the Fund's open positions is essentially the same
in all market categories traded. Superfund Capital Management applies risk
management policies to its trading which generally limit the total exposure that
may be taken per "risk unit" of assets under management. In addition, Superfund
Capital Management follows diversification guidelines (often formulated in terms
of the balanced volatility between markets and correlated groups), as well as
imposing "stop-loss" points at which the Fund's brokers must attempt to close
out open positions.
Superfund Capital Management controls the risk of the Fund's non-trading
instruments (Treasury Bills held for cash management purposes) by limiting the
duration of such instruments to no more than six months.
ITEM 4. CONTROLS AND PROCEDURES
The principal executive officer and principal financial officer of
Superfund Capital Management have concluded that the Fund has effective
disclosure controls and procedures to ensure that material information relating
to the Fund is made known to them by others within the Fund, particularly during
the period in which this quarterly report is being prepared. The principal
executive officer and principal financial officer of Superfund Capital
Management have evaluated the effectiveness of the Fund's disclosure controls
and procedures as of a date within 90 days prior to the filing date of this
report (the "Evaluation Date") and have based the foregoing conclusion about the
effectiveness of the Fund's disclosure controls and procedures based on their
evaluation as of the Evaluation Date.
During the period covered by this report, PFPC, Inc. became the
administrator of the Fund, replacing the previous administrator, RK Consulting,
L.L.C. Other than the change in administrator, there have been no significant
changes in the Fund's internal controls or in other factors that could
materially affect these controls subsequent to the date of their evaluation.
32
PART II-OTHER INFORMATION
Item 1. Legal Proceedings.
None
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
(c) Pursuant to the Fund's Limited Partnership Agreement, investors may
redeem their Units at the end of each calendar month at the then current
month-end Net Asset Value per Unit. The redemption of Units has no impact on the
value of Units that remain outstanding, and Units are not reissued once
redeemed.
The following tables summarize the redemptions by investors during the
three months ended September 30, 2005:
Series A:
Month Units Redeemed NAV per Unit ($)
----- -------------- ----------------
July 31, 2005 356.417 1,251.48
August 31, 2005 197.178 1,322.67
September 30, 2005 531.945 1,329.46
---------
1,085,045
=========
Series B:
Month Units Redeemed NAV per Unit ($)
----- -------------- ----------------
July 31, 2005 291.654 1,386.27
August 31, 2005 676.983 1,497.48
September 30, 2005 227.645 1,513.39
---------
1,196.282
Item 3. Defaults upon Senior Securities.
Not applicable.
Item 4. Submissions of Matters to a Vote of Security Holders.
None
Item 5. Other Information.
None
Item 6. Exhibits.
The following exhibits are included herewith:
31.1 Certification by Chief Executive Officer Pursuant to Section 302
of the Sarbanes-Oxley Act of 2002
31.2 Certification by Chief Financial Officer Pursuant to Section 302
of the Sarbanes-Oxley Act of 2002
32.1 Certification by Chief Executive Officer Pursuant to Section 906
of the Sarbanes-Oxley Act of 2002
32.2 Certification by Chief Financial Officer Pursuant to Section 906
of the Sarbanes-Oxley Act of 2002
33
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 on November 14, 2005.
QUADRIGA SUPERFUND, L.P.
(Registrant)
By: Superfund Capital Management, Inc.
General Partner
By: /s/ Christian Baha
---------------------------------------
Christian Baha
President and Chief Executive Officer
34
EXHIBIT INDEX
Exhibit Number Description of Document Page Number
- -------------- ----------------------- -----------
31.1 Certification by Chief Executive Officer Pursuant to Section 302
of the Sarbanes-Oxley Act of 2002 E-2
31.2 Certification by Chief Financial Officer Pursuant to Section 302
of the Sarbanes-Oxley Act of 2002 E-3
32.1 Certification by Chief Executive Officer Pursuant to Section 906
of the Sarbanes-Oxley Act of 2002 E-4
32.2 Certification by Chief Financial Officer Pursuant to Section 906
of the Sarbanes-Oxley Act of 2002 E-5
E-1