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: June 30, 2002
or
[ ] Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Commission File Number: 33-50388
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
(Exact name of registrant as specified in its charter)
Delaware 06-1346-879
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
c/o MILLBURN RIDGEFIELD CORPORATION
411 West Putnam Avenue
Greenwich, Connecticut 06830
(Address of principal executive offices)
Registrant's telephone number, including area code: (203) 625-7554
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant Limited Partnership Units
to Section 12(g) of the Act: (Title of Class)
Indicate by check mark whether the registrant (1) 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 [ ]
Aggregate market value of the voting and non-voting common equity held by
non-affiliates: $6,009,436.00.
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. INDEX
Part I - Financial Information
Financial Statements: Pages
Statements of Financial Condition at
June 30, 2002 and December 31, 2001 (unaudited) 1
Statements of Operations for the Three Months
Ended June 30, 2002 and 2001 (unaudited) 2
Statements of Operations for the Six Months
Ended June 30, 2002 and 2001 (unaudited) 3
Condensed Schedule of Investments at
June 30, 2002 (unaudited) 4-5
Statements of Changes in Partners' Capital for the
Three Months Ended June 30, 2002 and 2001 (unaudited) 6
Statements of Changes in Partners' Capital for the
Six Months Ended June 30, 2002 and 2001 (unaudited) 7
Financial Highlights for the Three Months Ended
June 30, 2002 and 2001 (unaudited) 8
Financial Highlights for the Six Months Ended
June 30, 2002 and 2001 (unaudited) 9
Notes to Financial Statements (unaudited) 10-12
Part II - Other Information 13
PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
Statements of Financial Condition (UNAUDITED)
30-Jun-02 31-Dec-01
Assets: ------------ ------------
Cash $ 140,791 $ 106,743
Cash denominated in foreign currencies
(cost $0,000 and $21,308 at June 30,2002
and December 31, 2001) 0 20,159
Investments in U.S. Treasury notes
- at value (amortized cost $1,939,248 and
$1,459,586 at June 30, 2002 and Dec. 31, 2001) 1,940,912 1,468,056
Unrealized appreciation/(depreciation)
on open contracts 902,588 258,196
------------ ------------
Total equity in trading accounts 2,984,291 1,853,154
Investments in U.S. Treasury notes
- at value (amortized cost $3,245,846
and $4,495,022 at June 30, 2002 and
Dec. 31, 2001) 3,247,663 4,503,659
Money market fund 877,340 335,147
Accrued interest receivable 86,377 96,076
------------ ------------
Total Assets $ 7,195,671 $ 6,788,036
============ ============
Liabilities & Partners' Capital:
Due to broker $ 152,503 $ 0
Due to General Partner 350,000 0
Accrued expenses 8,097 42,416
Redemptions payable to limited partners 298,750 179,639
Accrued brokerage commissions 41,639 40,346
------------ ------------
Total Liabilities 850,989 262,401
Partners' Capital:
General Partner 335,246 571,851
Limited Partners (3,772.130 & 4,296.678
Limited Partnership Units outstanding
at June 30, 2002 and Dec. 31, 2001,
respectively) 6,009,436 5,953,784
------------ ------------
Total Partners' Capital 6,344,682 6,525,635
------------ ------------
Total Liabilities and Partners' Capital $ 7,195,671 $ 6,788,036
============ ============
Net Asset Value per Limited Partnership Unit $ 1,593.12 $ 1,473.14
See accompanying notes to financial statements.
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
Statements of Operations
For the three months ended June 30, 2002 and 2001 (UNAUDITED)
Jun 30, 2002 Jun 30, 2001
------------ ------------
Investment income
Interest income $ 32,074 $ 95,111
Expenses
Administrative expenses 6,218 19,622
Brokerage commissions 119,730 140,936
------------ ------------
Total expenses 125,948 160,558
------------ ------------
Total investment loss (93,874) (65,447)
------------ ------------
Realized and unrealized gains (losses)
Net gains(losses) on trading of futures
and forward contracts
Net realized gains (losses) on closed positions:
Futures and forward contracts 307,675 471,706
Foreign exchange transactions 0 0
------------ ------------
Net realized gains (losses on
closed positions 307,675 471,706
------------ ------------
Net change in unrealized appreciation
(depreciation)
Futures and forward contracts 1,081,588 (1,007,571)
Foreign exchange translation 2,864 4,308
------------ ------------
Net change in unrealized
appreciation (depreciation) 1,084,452 (1,003,263)
------------ ------------
Net realized and unrealized gains
(losses) on trading of futures and
forward contracts and foreign
exchange translation 1,392,127 (531,557)
------------ ------------
Net gains (losses) from U.S. Treasury obligations
Net realized gains 0 19,688
Net change in unrealized appreciation
(depreciation) 3,477 (33,280)
------------ ------------
Net gains (losses) from U.S.
Treasury obligations 3,477 (13,592)
------------ ------------
Total net realized and unrealized
gains (losses) 1,395,604 (545,149)
------------ ------------
Net income (loss) $ 1,301,730 $ (610,596)
------------ ------------
Net income (loss) per unit of
beneficial interest $ 293.54 $ (116.03)
------------ ------------
See accompanying notes to financial statements.
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
Statements of Operations
For the six months ended June 30, 2002 and 2001 (UNAUDITED)
Jun 30, 2002 Jun 30, 2001
------------ ------------
Investment income
Interest income $ 69,436 $ 201,067
Expenses
Administrative expenses 12,439 39,245
Brokerage commissions 239,962 292,831
------------ ------------
Total expenses 252,401 332,076
------------ ------------
Total investment loss (182,965) (131,009)
------------ ------------
Realized and unrealized gains (losses)
Net gains(losses) on trading of futures
and forward contracts
Net realized gains (losses) on closed
positions:
Futures and forward contracts 465,327 1,465,421
Foreign exchange transactions 0 0
------------ ------------
Net realized gains (losses on
closed positions 465,327 1,465,421
------------ ------------
Net change in unrealized appreciation (depreciation)
Futures and forward contracts 644,392 (1,076,747)
Foreign exchange translation 312 (11,973)
------------ ------------
Net change in unrealized
appreciation (depreciation) 644,704 (1,088,720)
------------ ------------
Net realized and unrealized gains
(losses) on trading of futures and
forward contracts and foreign
exchange translation 1,110,031 376,701
------------ ------------
Net gains (losses) from U.S. Treasury obligations
Net realized gains 0 19,688
Net change in unrealized appreciation
(depreciation) (13,626) (17,951)
------------ ------------
Net gains (losses) from U.S.
Treasury obligations (13,626) 1,737
------------ ------------
Total net realized and unrealized
gains (losses) 1,096,405 378,438
------------ ------------
Net income (loss) $ 913,440 $ 247,429
------------ ------------
Net income (loss) per unit of
beneficial interest $ 207.45 $ 34.57
------------ ------------
See accompanying notes to financial statements.
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
Condensed Schedule of Investments at June 30, 2002 (UNAUDITED)
Net Unrealized
Appreciation/
(Depreciation) Net Unrealized
as a percentage of Appreciation/
Futures and Forward Contracts Partners' Capital (Depreciation)
----------------------------- ------------------ ---------------
Futures Contracts Purchased 5.67%
Interest Rates $ 361,505
Metals (1,805)
---------------
Total Futures Contracts Purchased 359,700
---------------
Futures Contracts Sold 0.36%
Metals (21,243)
Stock Indices 44,395
---------------
Total Futures Contracts Sold 23,152
---------------
Total investment in futures contracts 6.03% 382,852
---------------
Total Forward Contracts Purchased 8.10% 514,159
---------------
Forward Contracts Sold 0.09% 5,577
---------------
Total investment in forward
contracts 8.19% 519,736
---------------
Total Investments in futures and
forward contracts 14.22% $ 902,588
===============
See accompanying notes to financial statements.
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
Condensed Schedule of Investments at June 30, 2002 (UNAUDITED) (Continued)
Value as a %
of Partners'
Face Amount Investments in U.S. Treasury Notes Capital Value
- ----------- ---------------------------------- ------------ ------------
Government - United States 81.78%
$2,060,000 U.S. Treasury notes, 6.375%, 8/15/2002 2,071,588
1,810,000 U.S. Treasury notes, 5.75%, 10/31/2002 1,833,756
1,260,000 U.S. Treasury notes, 4.625%, 2/28/2003 1,283,231
-----------
Total investments in U.S. Treasury
notes (amortized cost $5,185,094) 81.78% $5,188,575
-----------
Percent of Net Unrealized
Currency Composition - Unrealized to Appreciation/
Futures & Forward Contracts Total Unrealized (Depreciation)
----------------- ---------------
British Pound 1.81% $ 16,326
Euro 15.15% 136,786
Hong Kong Dollar 0.24% 2,154
Japanese Yen 5.62% 50,727
Norwegian krona 0.62% 5,577
U.S. Dollar 76.56% 691,018
----------------- --------------
Total 100.00% $ 902,588
================= ==============
See accompanying notes to financial statements.
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
Statement of Partners' Capital
For the three months ended June 30, 2002 (UNAUDITED)
Limited General
Partners Partner Total
------------ ------------ ------------
Partners' Capital at March 31,
2002 (4,223.195 Units) 5,488,369 547,537 6,035,906
Redemption of (451.065) Units (642,954) (350,000) (992,954)
Net Income(Loss) 1,164,021 137,709 1,301,730
------------ ------------- ------------
Partners' Capital at June 30, 6,009,436 335,246 6,344,682
2002 (3,772.130 Units) ============ ============= ============
Net Asset Value per Unit
at June 30, 2002 1,593.12
============
Statement of Partners' Capital
For the three months ended June 30, 2001 (UNAUDITED)
Limited General
Partners Partner Total
------------ ------------ ------------
Partners' Capital at March 31,
2001 (5,121.335 Units) 7,544,463 571,351 8,115,814
Redemption of (547.534) Units (760,731) 0 (760,731)
Net Income(Loss) (576,598) (33,998) (610,596)
------------ ------------- ------------
Partners' Capital at June 30, 6,207,134 537,353 6,744,487
2001 (4,573.801 Units) ============ ============= ============
Net Asset Value per Unit
at June 30, 2001 1,357.11
============
See accompanying notes to financial statements.
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
Statement of Partners' Capital
For the six months ended June 30, 2002 (UNAUDITED)
Limited General
Partners Partner Total
------------ ------------ ------------
Partners' Capital at December 31,
2001 (4,296.678 Units) 5,953,784 571,851 6,525,635
Redemption of (524.548) Units (744,393) (350,000) (1,094,393)
Net Income(Loss) 800,045 113,395 913,440
------------ ------------- ------------
Partners' Capital at June 30,
2002 (3,772.130 Units) 6,009,436 335,246 6,344,682
============ ============= ============
Net Asset Value per Unit
at June 30, 2002 1,593.12
============
Statement of Partners' Capital
For the six months ended June 30, 2001 (UNAUDITED)
Limited General
Partners Partner Total
------------ ------------ ------------
Partners' Capital at December 31,
2000 (5,415.782 Units) 7,162,609 1,141,446 8,304,055
Redemption of (841.981) Units (1,156,997) (650,000) (1,806,997)
Net Income(Loss) 201,522 45,907 247,429
------------ ------------- ------------
Partners' Capital at June 30, 6,207,134 537,353 6,744,487
2001 (4,573.801 Units) ============ ============= ============
Net Asset Value per Unit
at June 30, 2001 1,357.11
============
See accompanying notes to financial statements.
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
Financial Highlights (Unaudited)
Per unit operating performance for the three months ended
June 30, 2002 and 2001 (unaudited) were as follows:
June 30, 2002 June 30, 2001
-------------- --------------
Net income (loss) from operations:
Net investment loss $ (23.67) $ (14.46)
Net realized and unrealized
gains (losses) on trading of
futures and forward contracts 316.47 (94.49)
Net gains (losses) from U.S.
Treasury obligations 0.74 (7.08)
-------------- --------------
Net income (loss) per unit 293.54 (116.03)
Net asset value per Unit,
beginning of period 1,299.58 1,473.14
-------------- --------------
Net asset value per Unit,
end of Period $ 1,593.12 $ 1,357.11
============== ==============
Total return and ratios for the three months ended
June 30, 2002 (UNAUDITED):
Total return: 22.59%
Ratio of expenses to average net assets: 9.03% (annualized)
Ratio of net investment loss to average net assets: -6.94% (annualized)
See accompanying notes to financial statements.
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
Financial Highlights (Unaudited)
Per unit operating performance for the six months ended
June 30, 2002 and 2001 (unaudited) were as follows:
June 30, 2002 June 30, 2001
-------------- --------------
Net income (loss) from operations:
Net investment loss $ (45.21) $ (24.37)
Net realized and unrealized
gains (losses) on trading of
futures and forward contracts 255.93 62.76
Net gains (losses) from U.S.
Treasury obligations (3.27) (3.82)
-------------- --------------
Net income (loss) per unit 207.45 34.57
Net asset value per Unit,
beginning of period 1,385.67 1,322.54
-------------- --------------
Net asset value per Unit,
end of Period $ 1,593.12 $ 1,357.11
============== ==============
Total return and ratios for the six months ended
June 30, 2002 (UNAUDITED):
Total return: 14.97%
Ratio of expenses to average net assets: 8.83% (annualized)
Ratio of net investment loss to average net assets: -6.61% (annualized)
See accompanying notes to financial statements.
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
The accompanying financial statements are unaudited but, in the opinion of
management, include all adjustments (consisting only of normal recurring
adjustments) necessary for a fair presentation of the Partnership's financial
condition at June 30, 2002 (unaudited) and December 31, 2001 and the
results of its operations for the three month and six month periods ended
June 30, 2002 and 2001. These financial statements present the results of
interim periods and do not include all disclosures normally provided in
annual financial statements. It is suggested that these financial statements
be read in conjunction with the financial statements and notes included in
the Partnership's annual report on Form 10-K filed with the Securities and
Exchange Commission for the year ended December 31, 2001.
ITEM II. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Reference is made to "Item 1," Financial Statements" The information
contained therein is essential to, and should be read in conjunction with,
the following analysis.
OPERATIONAL OVERVIEW
Due to the nature of the Partnership's business, its results of operations
depend on the General Partner's ability to recognize and capitalize on
trends and other profit opportunities in different sectors of the global
capital markets. the General Partner's trading methods are confidential,
so that substantially the only information that can be furnished regarding
the Partnership's results of operations is contained in the performance
record of its trading. Unlike operating businesses, general economic or
seasonal conditions do not directly affect the profit potential of the
Partnership, and its past performance is not necessarily indicate of future
results. Because of the speculative nature of its trading, operational or
economic trends have little relevance to the Partnership's results. The
General Partner believes that there are certain market conditions, for
example, markets with strong price trends, in which the Partnership has a
better likelihood of being profitable than in others.
LIQUIDITY AND CAPITAL RESOURCES
The Partnership does not intend to raise any additional capital because it
is a closed-end fund and cannot sell any more Units unless it undertakes a
new public offering, which would require another registration with the
Securities and Exchange Commission. The Partnership does not engage in
borrowing.
The Partnership trades futures, options and forward contracts primarily on
currencies and secondarily on financial instruments. Due to the nature of
the Partnership's business, it will make no significant capital expenditures,
and substantially all its assets are and will be represented by cash
equivalents or deposits in money market funds, United States Treasury
securities, and investments in futures, forward contracts and related
options.
The Partnership's assets are either held in cash or are invested by
the General Partner in United States Treasury bills. To the extent
deposited as margin with currency dealers or futures brokers, the
Partnership's assets are subject to the General Partner's ability to
close out its currency futures or forward contracts positions. The
Partnership could be prevented from promptly liquidating unfavorable
positions, thereby subjecting the Partnership to substantial losses
which could exceed the margin initially committed to such trades.
In addition, the Partnership may not be able to execute forward
contract trades at favorable prices if little trading in the contracts
it holds is taking place. Other than these limitations on liquidity,
which are inherent in the Partnership's trading operations, the
Partnership's assets are highly liquid and are expected to remain so.
During its operations for the three-month period ended June 30, 2002,
the Partnership experienced no meaningful periods of illiquidify in
any of the markets traded by the Partnership.
RESULTS OF OPERATIONS
30-Jun-02 31-Mar-02
------------- -------------
Ending Equity $ 6,344,682 $ 6,035,906
Due to the nature of commodity trading, the results of operations for
the interim period presented should not be considered indicative of
the results that may be expected for the entire year.
The Partnership's net assets increased 5.12% in the second quarter of
2002. This increase was attributable to a net income from operations
of $1,301,730, which was partially offset by redemptions of $992,954.
Brokerage commissions are calculated on the net asset value on the
last day of each month and are affected by trading performance and
redemptions. Brokerage commissions for the three months ended June
30, 2002 equaled $119,730, a decrease of $21,206 relative to the
corresponding period in 2001.
The Partnership's net asset value per unit registered a strong
double-digit advance in the quarter, increasing by 22.59%. Trading in
currencies interest rates and stock indices accounted for all of the
gain. Metals trading, on the other hand was generally unprofitable,
although gold trading was somewhat profitable.
As the U.S. dollar declined broadly during the quarter, short dollar
positions relative to the euro, yen, Swiss franc, Korean won, and
Singapore dollar were all profitable. Non-dollar cross rate trading
was also fractionally profitable. Not even frequent foreign exchange
market intervention by the Bank of Japan-assisted late in the quarter
by the Fed and ECB, could halt the dollar's slide.
In addition, Long positions in U.S. dollar-based short-term and
long-term government fixed income futures were profitable, and by the
end of the period, long positions in European and Japanese fixed
income futures were also showing profits. Short stock-index futures
positions were profitable as well. Trading of German, Hong Kong, and
Japanese stock futures were all profitable.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not applicable. The Partnership is a small business issuer.
PART II. OTHER INFORMATION
ITEM I. Legal Proceedings - None
ITEM 2. Changes in Securities and Use of Proceeds - None
ITEM 3. Defaults Upon Senior Securities - None
ITEM 4. Submission of Matters to a Vote of Security Holders - None
ITEM 5. Other Information - None
ITEM 6. (a) Exhibits -
99(a) - Certification of Chief Executive Officer
99(b) - Certification of Chief Financial Officer
(b) Reports on Form 8-K - None
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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, in the
City of New York and State of New York on the 8th day of August, 2002.
THE MILLBURN GLOBAL OPPORTUNITY FUND L.P.
By: Millburn Ridgefield Corporation,
General Partner
Date: August 8, 2002
/s/Tod A. Tanis
Tod A. Tanis
Vice-President
(principal accounting officer)
Exhibit 99(a)
CERTIFICATION PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF
THE UNITED STATES CODE
I, George E. Crapple, the Co-Chief Executive Officer of Millburn
Ridgefield Corporation, the General Partner of The Millburn Global
Opportunity Fund L.P. (the "Partnership") certify that (i) the Quarterly
Report of the Partnership on Form 10Q for the period ending June 30, 2002
fully complies with the requirements of Section 13(a) or 15(d) of the
Securities Exchange Act of 1934 and (ii) the information contained in
such Quarterly Report fairly presents, in all material respects, the
financial condition and results of operations of the Partnership.
Date: August 8, 2002
/s/George E. Crapple
George E. Crapple
Co-Chief Executive Officer
Exhibit 99(b)
CERTIFICATION PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF
THE UNITED STATES CODE
I, Gregg R. Buckbinder, the Chief Operating Officer and Chief
Financial Officer of Millburn Ridgefield Corporation, the Managing
Owner of The Millburn Global Opportunity Fund L.P. (the "Partnership")
certify that (i) the Quarterly Report of the Partnership on Form 10Q
for the period ending June 30, 2002 fully complies with the
requirements of Section 13(a) or 15(d) of the Securities Exchange Act
of 1934 and (ii) the information contained in such Quarterly Report
fairly presents, in all material respects, the financial condition and
results of operations of the Partnership.
Date: August 8, 2002
/s/Gregg R. Buckbinder
Gregg R. Buckbinder
Chief Operating Officer
Chief Financial Officer