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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 March 31, 2003
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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
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(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 [ ]
Total number of Pages: 26 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 March 31, 2003 and December 31, 2003 3
Condensed Schedule of Investments as of March 31, 2003 4
Condensed Schedule of Investments as of December 31, 2002 5
Statement of Operations as of March 31, 2003 6
Statement of Changes in Net Assets as of March 31, 2003 7
Statement of Cash Flows as of March 31, 2003 8
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 March 31, 2003 and December 31, 2002 9
Condensed Schedule of Investments as of March 31, 2003 10
Condensed Schedule of Investments as of December 31, 2002 11
Statement of Operations as of March 31, 2003 12
Statement of Changes in Net Assets as of March 31, 2003 13
Statement of Cash Flows as of March 31, 2003 14
NOTES TO SERIES A AND SERIES B UNAUDITED FINANCIAL STATEMENTS DATED MARCH 31, 2003 15-18
2
QUADRIGA SUPERFUND, L.P. -- Series A
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 2003 (Unaudited) and December 31, 2002
(Audited)
March 31, 2003 December 31, 2002
-------------- -----------------
ASSETS
US GOVERNMENT SECURITIES, at market
(March 31, 2003 cost $3,227,282; December 31, 2002 cost $944,085) $ 3,233,903 $ 945,098
NET EQUITY IN FUTURES AND FORWARD CONTRACTS 92,923 68,338
DUE FROM BROKER 1,366,165 816,407
CASH 1,041,987 402,631
-------------- ---------------
Total assets 5,734,978 2,232,474
-------------- ---------------
LIABILITIES
ADVANCE CAPITAL CONTRIBUTIONS 1,510,042 972,745
FEES PAYABLE 24,645 43,294
-------------- ---------------
Total liabilities 1,534,687 1,016,039
-------------- ---------------
NET ASSETS $ 4,200,291 $ 1,216,435
============== ===============
NUMBER OF SHARES 3,847.317 1,110.275
NET ASSET VALUE PER SHARE $ 1,091.75 $ 1,095.62
============== ===============
See accompanying notes to unaudited financial statements.
3
QUADRIGA SUPERFUND, L.P. -- Series A
CONDENSED SCHEDULE OF INVESTMENTS
March 31, 2003 (Unaudited)
PERCENTAGE OF MARKET OR
FACE VALUE NET ASSETS UNREALIZED
UNITED STATES DEBT SECURITIES, AT MARKET
United States Treasury Bills due May 29, 2003
(cost $3,227,282), securities are held in margin
accounts as collateral for open futures $ 3,240,000 77.0 % $ 3,233,903
================= =================
FUTURES CONTRACTS, AT UNREALIZED
SECTOR
CURRENCIES
Futures contracts purchased 0.1 4,501
Futures contracts sold (0.2) (6,366)
----------------- -----------------
Total futures contracts (0.1) (1,865)
----------------- -----------------
GRAINS
Futures contracts purchased 0.1 2,255
Futures contracts sold 0.0 (1,119)
----------------- -----------------
Total futures contracts 0.1 1,136
----------------- -----------------
INDICES
Futures contracts purchased 1.2 50,675
Futures contracts sold (0.3) (14,472)
----------------- -----------------
Total futures contracts 0.9 36,203
----------------- -----------------
LIVESTOCK
Futures contracts purchased 0.0 1,440
----------------- -----------------
METALS
Futures contracts purchased 1.7 69,849
Futures contracts sold (0.8) (31,987)
----------------- -----------------
Total futures contracts 0.9 37,862
----------------- -----------------
SOFTS
Futures contracts purchased 0.8 32,115
Futures contracts sold (0.4) (13,968)
----------------- -----------------
Total futures contracts 0.4 18,147
----------------- -----------------
TOTAL FUTURES CONTRACTS, AT UNREALIZED 2.2 % $ 92,923
================= =================
FUTURES CONTRACTS BY COUNTRY COMPOSITION
JAPAN 1.5 % $ 62,763
UNITED STATES 0.7 29,706
OTHER 0.0 454
----------------- -----------------
TOTAL FUTURES CONTRACTS BY COUNTRY 2.2 % $ 92,923
================= =================
See accompanying notes to unaudited financial statements.
4
QUADRIGA SUPERFUND, L.P. -- Series A
CONDENSED SCHEDULE OF INVESTMENTS
December 31, 2002 (Audited)
PERCENTAGE OF MARKET OR
FACE VALUE NET ASSETS UNREALIZED
INVESTMENTS IN SECURITIES, AT MARKET
DEBT SECURITIES
UNITED STATES
United States Treasury Bills due May 29, 2003 (cost
$944,085), securities are held in margin accounts as
collateral for open futures and forward contracts $ 950,000 77.7 % $ 945,098
================= =================
FUTURES AND FORWARD CONTRACTS, AT UNREALIZED
SECTOR
ENERGY
Futures contracts purchased 3.3 % $ 40,276
----------------- -----------------
GRAINS
Futures contracts purchased 0.1 731
Futures contracts sold (0.2) (2,368)
----------------- -----------------
TOTAL GRAINS (0.1) (1,637)
----------------- -----------------
LIVESTOCK
Futures contracts purchased 0.3 3,180
----------------- -----------------
METALS
Futures contracts purchased 2.9 35,700
Futures contracts sold 0.1 900
----------------- -----------------
Total futures contracts 3.0 36,600
----------------- -----------------
Unrealized appreciation on forward contracts 0.1 986
Unrealized depreciation on forward contracts (0.6) (7,644)
----------------- -----------------
Total forward contracts (0.5) (6,658)
----------------- -----------------
TOTAL METALS 2.5 29,942
----------------- -----------------
SOFTS
Futures contracts sold (0.3) (3,423)
----------------- -----------------
TOTAL FUTURES AND FORWARD CONTRACTS, AT UNREALIZED 5.7 % $ 68,338
================= =================
FUTURES AND FORWARD CONTRACTS BY COUNTRY COMPOSITION
JAPAN 2.2 26,536
UNITED KINGDOM 0.7 8,142
UNITED STATES 2.8 33,660
----------------- -----------------
TOTAL FUTURES AND FORWARD CONTRACTS BY COUNTRY 5.7 % $ 68,338
================= =================
5
QUADRIGA SUPERFUND, L.P. -- SERIES A
STATEMENT OF OPERATIONS
For the Three Months Ended March 31, 2003
(Unaudited)
INVESTMENT INCOME, interest $ 7,730
--------------
EXPENSES
Management fee 17,018
Organization and offering expenses 9,199
Operating expenses 1,380
Selling commission 36,797
Incentive fee 227,484
Brokerage commissions 36,852
Other 802
--------------
Total expenses 329,532
--------------
NET INVESTMENT INCOME (LOSS) (321,802)
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments (71,377)
Net change in unrealized on investments 24,585
--------------
NET GAIN (LOSS) ON INVESTMENTS (46,792)
--------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (368,594)
=============
See accompanying notes to unaudited financial statements.
6
QUADRIGA SUPERFUND, L.P. -- SERIES A
STATEMENT OF CHANGES IN NET ASSETS
For the Three Months Ended March 31, 2003
(Unaudited)
NET ASSETS, beginning of period $ 1,216,435
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS (368,594)
CAPITAL SHARE TRANSACTIONS
Issuance of shares 3,363,183
Redemption of shares (10,733)
--------------
NET ASSETS, end of period $ 4,200,291
==============
See accompanying notes to unaudited financial statements.
7
QUADRIGA SUPERFUND, L.P. -- SERIES A
STATEMENT OF CASH FLOWS
For the Three Months Ended March 31, 2003
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net increase (decrease) in net assets from operations $ (368,594)
Adjustments to reconcile net increase (decrease) in net assets
to net cash provided by (used in) operating activities:
Changes in operating assets and liabilities:
US Government securities (2,288,805)
Due from brokers (549,758)
Net equity in futures contracts (24,585)
Fees payable (18,649)
---------------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (3,250,391)
---------------
CASH FLOWS FROM FINANCING ACTIVITIES
Capital contributions, net of change in advance capital contributions 3,900,480
Capital withdrawals (10,733)
---------------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 3,889,747
---------------
NET INCREASE (DECREASE) IN CASH 639,356
CASH, beginning of period 402,631
---------------
CASH, end of period $ 1,041,987
===============
See accompanying notes to unaudited financial statements.
8
QUADRIGA SUPERFUND, L.P. - SERIES B
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 2003 (Unaudited) and December 31, 2002 (Audited)
March 31, 2003 December 31, 2002
-------------- -----------------
ASSETS
US GOVERNMENT SECURITIES, at market
(March 31, 2003 cost: $4,182,877; December 31, 2002 cost: $1,540,776) $ 4,192,077 $ 1,542,197
NET EQUITY IN FUTURES AND FORWARD CONTRACTS 229,445 192,020
DUE FROM BROKER 2,109,750 1,152,562
CASH 2,505,441 396,680
-------------- ---------------
Total assets 9,036,713 3,283,459
-------------- ---------------
LIABILITIES
ADVANCE CAPITAL CONTRIBUTIONS 2,665,663 961,768
FEES PAYABLE 37,164 124,710
-------------- ---------------
Total liabilities 2,702,827 1,086,478
-------------- ---------------
NET ASSETS $ 6,333,886 $ 2,196,981
============== ===============
NUMBER OF SHARES 5,595.910 1,894.331
NET ASSET VALUE PER SHARE $ 1,131.88 $ 1,159.77
============== ===============
See accompanying notes to unaudited financial statements.
9
QUADRIGA SUPERFUND, L.P. - SERIES B
CONDENSED SCHEDULE OF INVESTMENTS
March 31, 2003 (Unaudited)
PERCENTAGE OF MARKET OR
FACE VALUE NET ASSETS UNREALIZED
UNITED STATES DEBT SECURITIES, AT MARKET
United States Treasury Bills due May 29, 2003
(cost $4,182,877), securities are held in margin
accounts as collateral for open futures $ 4,200,000 66.2 % $ 4,192,077
================= =================
FUTURES CONTRACTS, AT UNREALIZED
SECTOR
CURRENCIES
Futures contracts purchased 0.2 10,457
Futures contracts sold (0.2) (15,462)
----------------- -----------------
Total futures contracts - (5,005)
----------------- -----------------
GRAINS
Futures contracts purchased 0.1 5,400
Futures contracts sold 0.0 (2,704)
----------------- -----------------
Total futures contracts 0.1 2,696
----------------- -----------------
INDICES
Futures contracts purchased 2.1 131,955
Futures contracts sold (0.7) (45,129)
----------------- -----------------
Total futures contracts 1.4 86,826
----------------- -----------------
LIVESTOCK
Futures contracts purchased 0.1 3,680
----------------- -----------------
METALS
Futures contracts purchased 2.8 177,744
Futures contracts sold (1.3) (74,099)
----------------- -----------------
Total futures contracts 1.5 103,645
----------------- -----------------
SOFTS
Futures contracts purchased 1.2 74,547
Futures contracts sold (0.7) (36,944)
----------------- -----------------
Total futures contracts 0.5 37,603
----------------- -----------------
TOTAL FUTURES, AT UNREALIZED 3.6 % $ 229,445
================= =================
FUTURES CONTRACTS BY COUNTRY COMPOSITION
JAPAN 2.5 % $ 158,609
UNITED STATES 1.2 77,379
OTHER (0.1) (6,543)
----------------- -----------------
TOTAL FUTURES CONTRACTS BY COUNTRY 3.6 % $ 229,445
================= =================
See accompanying notes to unaudited financial statements.
10
QUADRIGA SUPERFUND, L.P. -- Series B
CONDENSED SCHEDULE OF INVESTMENTS
December 31, 2002 (Audited)
PERCENTAGE OF MARKET OR
FACE VALUE NET ASSETS UNREALIZED
INVESTMENTS IN SECURITIES, AT MARKET
DEBT SECURITIES
UNITED STATES
United States Treasury Bills due May 29, 2003 (cost
$1,540,776), securities are held in margin accounts as
collateral for open futures and forward contracts $1,550,000 70.2 % $ 1,542,197
================= ===============
FUTURES AND FORWARD CONTRACTS, AT UNREALIZED
SECTOR
ENERGY
Futures contracts purchased 5.5 % $ 120,786
----------------- ---------------
GRAINS
Futures contracts purchased - 676
Futures contracts sold (0.3) (6,308)
----------------- ---------------
TOTAL GRAINS (0.3) (5,632)
----------------- ---------------
LIVESTOCK
Futures contracts purchased 0.4 8,820
----------------- ---------------
METALS
Futures contracts purchased 4.2 92,818
Futures contracts sold 0.1 2,286
----------------- ---------------
Total futures contracts 4.3 95,104
----------------- ---------------
Unrealized appreciation on forward contracts 0.3 7,562
Unrealized depreciation on forward contracts (1.2) (25,854)
----------------- ---------------
Total forward contracts (0.9) (18,292)
----------------- ---------------
TOTAL METALS 3.5 76,812
----------------- ---------------
SOFTS
Futures contracts sold (0.4) (8,951)
----------------- ---------------
INDICES
Futures contracts purchased - 185
----------------- ---------------
TOTAL FUTURES AND FORWARD CONTRACTS, AT UNREALIZED 8.7 % $ 192,020
================= ===============
FUTURES AND FORWARD CONTRACTS BY COUNTRY COMPOSITION
JAPAN 3.0 % $ 66,227
UNITED KINGDOM 1.0 22,307
UNITED STATES 4.7 103,486
----------------- ---------------
TOTAL FUTURES AND FORWARD CONTRACTS BY COUNTRY 8.7 % $ 192,020
================= ===============
11
QUADRIGA SUPERFUND, L.P. -- SERIES B
STATEMENT OF OPERATIONS
For the Three Month Period Ended March 31, 2003
(Unaudited)
INVESTMENT INCOME, interest $ 11,027
---------------
EXPENSES
Management fee 26,276
Organization and offering expenses 14,203
Operating expenses 2,130
Selling commission 56,813
Incentive fee 494,808
Brokerage commissions 84,306
Other 1,960
---------------
Total expenses 680,496
---------------
NET INVESTMENT INCOME (LOSS) (669,469)
---------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments (479,520)
Net change in unrealized on investments 37,425
---------------
NET GAIN (LOSS) ON INVESTMENTS (442,095)
---------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (1,111,564)
===============
See accompanying notes to unaudited financial statements.
12
QUADRIGA SUPERFUND, L.P. -- SERIES B
STATEMENT OF CHANGES IN NET ASSETS
For the Three Month Period Ended March 31, 2003
(Unaudited)
NET ASSETS, beginning of period $ 2,196,981
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS (1,111,564)
CAPITAL SHARE TRANSACTIONS
Issuance of shares 5,299,458
Redemption of shares (50,989)
----------------
NET ASSETS, end of period $ 6,333,886
================
See accompanying notes to unaudited financial statements.
13
QUADRIGA SUPERFUND, L.P. -- SERIES B
STATEMENT OF CASH FLOWS
For the Three Month Period Ended March 31, 2003
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net increase (decrease) in net assets from operations $ (1,111,564)
Adjustments to reconcile net increase (decrease) in net assets
to net cash provided by (used in) operating activities:
Changes in operating assets and liabilities:
US Government securities (2,649,880)
Due from brokers (957,188)
Net equity in futures contracts (37,425)
Fees payable (87,546)
-----------------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (4,843,603)
-----------------
CASH FLOWS FROM FINANCING ACTIVITIES
Capital contributions, net of change in advance capital contribution 7,003,353
Capital withdrawals (50,989)
-----------------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 6,952,364
-----------------
NET INCREASE (DECREASE) IN CASH 2,108,761
CASH, beginning of year 396,680
-----------------
CASH, end of year $ 2,505,441
=================
See accompanying notes to unaudited financial statements.
14
QUADRIGA SUPERFUND, L.P. -- SERIES A AND B
NOTES TO UNAUDITED FINANCIAL STATEMENTS DATED MARCH 31, 2003
1. NATURE OF OPERATIONS
Organization and Business
Quadriga Superfund, L.P. (the "Fund"), a Delaware Limited Partnership,
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 Quadriga 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 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 and Exchange Commission ("SEC")
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, 2002.
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 year, which represents market value for those commodity interests for
which market quotes are readily available.
Translation of Foreign Currency
Assets and liabilities denominated in foreign currencies are translated
into U.S. dollar amounts at the year 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.
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.
15
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 BROKERS
Amounts due from brokers may be restricted to the extent that they
serve as deposits for securities sold short.
In the normal course of business, all of the Fund's securities
transactions, money balances and 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 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 capital contributions represent cash received prior to March
31, 2003 for April contributions and do not participate in the earnings of the
Fund until April 1, 2003.
5. RELATED PARTY TRANSACTIONS
In accordance with the Limited Partnership Agreement, Quadriga Capital
Management, Inc., 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). In accordance with the
Prospectus dated October 31, 2002 Part One-Disclosure Document, Quadriga Asset
Management, Inc., 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.
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.
16
6. FINANCIAL HIGHLIGHTS
Financial highlights for the period January 1, 2003 through March 31,
2002 are as follows:
SERIES A SERIES B
------------------- -------------------
Total return
Total return before incentive fees (0.1) % (1.3) %
Incentive fees (0.2) (1.1)
------------------- -------------------
Total return after incentive fees (0.3) % (2.4) %
=================== ===================
Ratio to average partners' capital
Operating expenses before incentive fees 2.7 % 3.1 %
Incentive fees 5.9 8.3
------------------- -------------------
Total expenses 8.6 % 11.4 %
=================== ===================
Net investment income (loss) (8.4) % (11.2) %
=================== ===================
Net asset value per unit, beginning of period $ 1,095.62 $ 1,159.77
------------------- -------------------
Per unit operating performance
Net investment income (loss)
(3.38) (16.80)
Net gain (loss) on investments
(0.49) (11.09)
------------------- -------------------
Net increase in net assets from operations (3.87) (27.89)
------------------- -------------------
Net asset value per unit, end of period $ 1,091.75 $ 1,131.88
=================== ===================
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. 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 risks 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. Market risk is directly impacted by the volatility and liquidity in the
markets in which the related underlying assets are traded.
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 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 March 31,
2003. 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 Quadriga 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 Quadriga Capital Management, Inc. not
less than ten business days prior to the end of the month (or such shorter
period as permitted by Quadriga 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.
18
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 three months ended March 31, 2003, subscriptions
totaling $8,662,642 have been accepted and redemptions over the same period
totaled $61,722.
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 borrowing. 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
Series A:
The loss for the quarter ended March 31, 2003 was 0.35%. This decrease
consisted of interest income of +0.01%, negative trading performance (including
commissions) of approximately -0.08% and approximately -0.28% due to management
fees, organization expenses, operating expenses, selling commissions and
incentive fees. At March 31, 2003 and December 31, 2002, the net asset value per
unit of Series A was $1,091.75 and $1,095.62, respectively.
Series B:
The loss for the quarter ended March 31, 2003 was 2.40%. This decrease
consists of interest income of +0.02%, negative trading performance (including
commissions) of approximately -1.14% and approximately -1.28% 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 being leveraged
approximately 1.5 times Series A. At March 31, 2003 and December 31, 2002, the
net asset value per unit of Series B was $1,131.88 and $1,159.77, respectively.
Fund results for January 2003:
19
The continuing downward trend in stock markets produced gains in short
positions in stock index futures and also in long positions in U.S. Treasury
bonds, notes and interest rate futures.
Long positions in currencies futures versus the U.S. Dollar were also
profitable.
Due to the persisting threat of a war in Iraq, prices in the energy
market continued their upward trend and contributed positive performance.
In the metal sector, long positions in precious metals benefited from
rising prices.
During the month of January, Series A gained 11.4% and Series B 17.6%.
Fund results for February 2003:
Short positions in stock index futures as well as long positions in
U.S. Treasury bonds, notes and interest rate futures profited by downward
movement in stock markets.
In the currencies sector, the Fund gained in long positions in the
Japanese Yen, the Canadian Dollar and Australian Dollar, whereas the upwards
trend of the Euro versus the U.S. Dollar was interrupted.
Long positions in energy products benefited again from the political
tensions caused by the pending war in the Middle East.
Although the prices of agricultural products as well as of gold and
silver decreased significantly resulting in losses in long positions in these
markets, the net asset value of Series A and B increased by 12.0% and 17.1%,
respectively.
Fund results for March 2003:
The military operation in Iraq caused a sudden upward movement in stock
markets. This affected negatively short positions in stock indices as well as
long positions in U.S. Treasury bonds, notes and interest rate futures.
Long positions in currencies versus the U.S. Dollar lost due to the
sharp rise in value of the Dollar versus most other foreign currencies.
Furthermore, the upward trend of prices in the energy sector ended
abruptly and caused significant losses in long futures positions. Although short
positions in metals offset the losses slightly (this sector was the only one
with a positive contribution to this month's trading results), Series A
experienced a loss of 20.12%, whereas Series B decreased by 29.1%.
For the first quarter of the year 2003, the most profitable market
group was the energy sector, while positions in agricultural products showed the
weakest performance.
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 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 Quadriga Capital Management was
unable to offset such positions, the Fund could experience substantial losses.
Quadriga 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%.
20
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.
CRITICAL ACCOUNTING POLICIES -- VALUATION OF THE FUND'S POSITIONS
Quadriga 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, Quadriga Capital Management
expects that under normal circumstances substantially all of the Fund's assets
will be valued on a daily basis using objective measures.
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.
21
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
Quadriga 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.
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 March 31, 2003 and the
trading gains/losses by market category for the year then ended. All open
position trading risk exposures of the Fund have been included in calculating
the figures set forth below. As of March 31, 2003 and December 31, 2002, the net
asset value for Series A and Series B was approximately $10,534,178 and
$3,413,416, respectively.
Series A as of March 31, 2003:
SECTOR MARKET RISK (USD) % OF TOTAL CAPITALIZATION (NET ASSETS)
- ------ ----------------- --------------------------------------
Stock Indices 114,311 2.72
Financial Futures 132,650 3.14
Currencies 20,900 0.50
Agricultural Products 145,177 3.46
Metals 199,294 4.74
Series B as of March 31, 2003:
SECTOR MARKET RISK (USD) % OF TOTAL CAPITALIZATION (NET ASSETS)
- ------ ----------------- --------------------------------------
Stock Indices 309,760 4.89
Financial Futures 331,882 5.24
Currencies 50,600 0.80
Agricultural Products 353,953 5.59
Metals 479,540 7.57
22
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 -- give 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 Quadriga 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
March 31, 2003, by market sector.
Currencies
The Fund's currency exposure is to exchange rate those, primarily
fluctuations 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).
Quadriga Capital Management does not anticipate that the risk profile of the
Fund's currency sector will change significantly in the future. The exposure to
these markets as of March 31, 2003 was relatively low in comparison to historic
levels.
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
23
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. The exposure to these markets as of March 31,
2003 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-7 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. The exposure to these markets as
of March 31, 2003 was relatively low in comparison 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 March 31, 2003, the fund had no exposure to
the energy market based on open positions.
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 represent a great diversification in terms of correlation to many of the
other sectors the Fund trades. The exposure to these markets as of March 31,
2003 was the highest among all market groups.
Agricultural Market
The Fund's agricultural market exposure is completed to fluctuations in
the price of cocoa, sugar, coffee, cotton, lean hogs and live cattle. These
markets represent a great diversification in terms of correlation to many of the
other sectors the Fund trades. The exposure to these markets as of March 31,
2003 was relatively low in comparison to historic levels.
QUALITATIVE DISCLOSURES REGARDING NON-TRADING RISK EXPOSURE
The following were the only non-trading risk exposures of the Fund as
of March 31, 2003.
Foreign Currency Balances
The Fund's primary foreign currency balances are in the G-7 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 Quadriga 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 Quadriga Capital Management, severally,
attempt to manage the risk of the Fund's open positions is essentially the same
in all market categories traded. Quadriga Capital Management
24
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, Quadriga 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.
Quadriga 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.
GENERAL
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.
ITEM 4. CONTROLS AND PROCEDURES
The principal executive officer and principal financial officer of
Quadriga 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 Quadriga Capital Management
have evaluated the effectiveness of the Fund's disclosure controls and
procedures as of a date within ninety (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, there have been no
significant changes in the Fund's internal controls or in other factors that
could significantly affect these controls subsequent to the date of their
evaluation.
PART II-OTHER INFORMATION
Item 1. Legal Proceedings.
None
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Submissions of Matters to a vote of Security Holders.
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K.
None
25
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 May 15, 2003.
QUADRIGA SUPERFUND, L.P.
(Registrant)
By: Quadriga Capital Management, Inc.
General Partner
By: /s/ Christian Baha
-------------------------------------------
Christian Baha
President and Chief Executive Officer
26
CERTIFICATION
I, Christian Baha, President and Chief Executive Officer of Quadriga Capital
Management, Inc., the general partner of Quadriga Superfund, L.P. (the "Fund"),
do hereby certify that:
1. I have reviewed this quarterly report on Form 10-Q of the Fund;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
Fund as of, and for, the periods presented in this quarterly report;
4. The Fund's other certifying officer and I are responsible for establishing
and maintaining disclosure controls and procedures (as such term is defined in
paragraph (c) of Exchange Act Rule 15d-14) for the Fund and we have:
(i) designed such disclosure controls and procedures to ensure
that material information relating to the Fund, including its
consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which
this quarterly report is being prepared;
(ii) 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 quarterly report (the "Evaluation Date"); and
(iii) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based
on our evaluation as of the Evaluation Date;
5. The Fund's other certifying officer and I have disclosed, based on our most
recent evaluation, to the Fund's auditors and the audit committee of the Fund's
board of directors (or persons performing the equivalent functions):
(i) all significant deficiencies in the design or operation of
internal controls which could adversely affect the Fund's
ability to record, process, summarize and report financial
data and have identified for the Fund's auditors any material
weaknesses in internal controls; and
(ii) any fraud, whether or not material, that involves management
or other employees who have a significant role in the Fund's
internal controls; and
6. The Fund's other certifying officer and I have indicated in this quarterly
report whether not there were significant changes in internal controls or in
other factors that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.
By: /s/ Christian Baha
-------------------------------------------
Christian Baha
President and Chief Executive Officer
May 15, 2003
CERTIFICATION
I, Gerhard Entzmann, Secretary and Chief Financial Officer of Quadriga Capital
Management, Inc., the general partner of Quadriga Superfund, L.P. (the "Fund"),
do hereby certify that:
1. I have reviewed this quarterly report on Form 10-Q of the Fund;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
Fund as of, and for, the periods presented in this quarterly report;
4. The Fund's other certifying officer and I are responsible for establishing
and maintaining disclosure controls and procedures (as such term is defined in
paragraph (c) of Exchange Act Rule 15d-14) for the Fund and we have:
(i) designed such disclosure controls and procedures to ensure
that material information relating to the Fund, including its
consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which
this quarterly report is being prepared;
(ii) 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 quarterly report (the "Evaluation Date"); and
(iii) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based
on our evaluation as of the Evaluation Date;
5. The Fund's other certifying officer and I have disclosed, based on our most
recent evaluation, to the Fund's auditors and the audit committee of the Fund's
board of directors (or persons performing the equivalent functions):
(i) all significant deficiencies in the design or operation of
internal controls which could adversely affect the Fund's
ability to record, process, summarize and report financial
data and have identified for the Fund's auditors any material
weaknesses in internal controls; and
(ii) any fraud, whether or not material, that involves management
or other employees who have a significant role in the Fund's
internal controls; and
6. The Fund's other certifying officer and I have indicated in this quarterly
report whether or not there were significant changes in internal controls or in
other factors that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.
By: /s/ Gerhard Entzmann
-------------------------------------------
Gerhard Entzmann
Secretary and Chief Financial Officer
May 15, 2003