10-Q 1 go10q902.txt FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 [X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended: September 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 [ ] Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X] THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. INDEX Part I - Financial Information Financial Statements: Pages Statements of Financial Condition at September 30, 2002 and December 31, 2001 (unaudited) 1 Statements of Operations for the Three Months Ended September 30, 2002 and 2001 (unaudited) 2-3 Statements of Operations for the nine Months Ended September 30, 2002 and 2001 (unaudited) 4-5 Condensed Schedule of Investments at September 30, 2002 (unaudited) 6-7 Statements of Changes in Partners' Capital for the Three Months Ended September 30, 2002 and 2001 (unaudited) 8 Statements of Changes in Partners' Capital for the nine Months Ended September 30, 2002 and 2001 (unaudited) 9 Financial Highlights for the Three Months Ended September 30, 2002 and 2001 (unaudited) 10 Financial Highlights for the nine Months Ended September 30, 2002 and 2001 (unaudited) 11 Notes to Financial Statements (unaudited) 12-14 Part II - Other Information 15-21 PART I. FINANCIAL INFORMATION Page 1 ITEM I. FINANCIAL STATEMENTS THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. Statements of Financial Condition (UNAUDITED)

See accompanying notes to financial statements. THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. Page 2 Statements of Operations For the three months ended September 30, 2002 and 2001 (UNAUDITED)

THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. Page 3 Statements of Operations For the three months ended September 30, 2002 and 2001 (UNAUDITED) (Continued)

See accompanying notes to financial statements. THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. Page 4 Statements of Operations For the nine months ended September 30, 2002 and 2001 (UNAUDITED)

THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. Page 5 Statements of Operations For the nine months ended September 30, 2002 and 2001 (UNAUDITED) (Continued)

See accompanying notes to financial statements. THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. Page 6 Condensed Schedule of Investments at September 30, 2002 (UNAUDITED)

See accompanying notes to financial statements. THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. Page 7 Condensed Schedule of Investments at September 30, 2002 (UNAUDITED) (Continued)

See accompanying notes to financial statements. THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. Page 8 Statement of Partners' Capital For the three months ended September 30, 2002 (UNAUDITED)

Statement of Partners' Capital For the three months ended September 30, 2001 (UNAUDITED)

See accompanying notes to financial statements. THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. Page 9 Statement of Partners' Capital For the nine months ended September 30, 2002 (UNAUDITED)

Statement of Partners' Capital For the nine months ended September 30, 2001 (UNAUDITED)

See accompanying notes to financial statements. THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. Page 10 Financial Highlights (Unaudited) Per unit operating performance for the three months ended September 30, 2002 and 2001 (unaudited) were as follows:

Total return and ratios for the three months ended September 30, 2002 (UNAUDITED): Total return: 13.39% Ratio of expenses to average net assets: 8.60% (annualized) Ratio of net investment loss to average net assets: -6.90% (annualized) See accompanying notes to financial statements. THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. Page 11 Financial Highlights (Unaudited) Per unit operating performance for the nine months ended September 30, 2002 and 2001 (unaudited) were as follows:

Total return and ratios for the nine months ended September 30, 2002 (UNAUDITED): Total return: 30.36% Ratio of expenses to average net assets: 9.07% (annualized) Ratio of net investment loss to average net assets: -6.96% (annualized) See accompanying notes to financial statements. THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. Page 12 NOTES TO FINANCIAL STATEMENTS (unaudited) 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 September 30, 2002 (unaudited) and December 31, 2001 and the results of its operations for the three month and nine month periods ended September 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 conjuction 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 indicative 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 MILLBURN GLOBAL OPPORTUNITY FUND L.P. Page 13 The Partnership's assets are either held in cash or are invested by the General Partner in United States Treasury bills or notes. 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 September 30, 2002, the Partnership experienced no meaningful periods of illiquidity in any of the markets traded by the Partnership. RESULTS OF OPERATIONS

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 decreased 0.97% in the third quarter of 2002. This decrease was attributable to redemptions of $916,063, which was partially offset by net income from operations of $825,326. 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 September 30, 2002 increased by $22, relative to the corresponding period in 2001. The Partnership's net asset value per unit registered a double-digit gain for the quarter, increasing 13.39%. Trading of interest rate, stock index and metal futures was profitable, while currency trading resulted in losses. Interest rates on government debt declined sharply during the summer. Hence, the partnership's long positions in German 5 and 10-year bonds, U.S. Treasury 5 and 10-year notes and the 30-year bond, and short-term eurodollar deposits were profitable. A long Japanese government bond position was also profitable, although the size of the gain was cut in half after a major sell-off in JGB's followed the Bank of Japan's announcement that it would purchase stocks from major banks. Global stock markets declined further during the quarter. Short positions in German, Hong Kong, Japanese, and U.S. stock index futures were quite profitable. THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. Page 14 In the metals sector of the portfolio, a short aluminum trade generated a modest gain that more than offset a fractional loss on a short gold trade. Currency trading, on the other hand, was unprofitable during the July- September period. The sustained dollar decline that had characterized the second quarter came to an end in the third quarter. A trend reversal that started in late July was followed by volatile but generally non- directional market activity thereafter. Hence, short dollar positions relative to the yen, euro, Korean won, and Swiss franc produced losses, and were closed or reversed to long positions. Non-dollar cross rate trading had no significant impact on NAV for the quarter. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Not applicable. The Partnership is a small business issuer. ITEM 4. CONTROLS AND PROCEDURES Millburn Ridgefield Corporation, the General Partner of the Partnership, with the participation of the General Partner's Co-Chief Executive Officers and Chief Financial Officer, has evaluated the effectiveness of the design and operation of its disclosure controls and procedures with respect to the Partnership within 90 days of the filing date of this quarterly report, and, based on their evaluation, have concluded that these disclosure controls and procedures are effective. There were no significant changes in the General Partner's internal controls with respect to the Partnership or in other factors applicable to the Partnership that could significantly affect these controls subsequent to the date of their evaluation. THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. Page 15 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 Co-Chief Executive Officer 99(b) - Certification of Co-Chief Executive Officer 99(c) - 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 29th day of October, 2002. THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. By: Millburn Ridgefield Corporation, General Partner Date: October 29, 2002 /s/Tod A. Tanis Tod A. Tanis Vice-President (principal accounting officer) THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. Page 16 Exhibit 99 (a) CERTIFICATION OF CO-CHIEF EXECUTIVE OFFICER I, George E. Crapple, Co-Chief Executive Officer of Millburn Ridgefield Corporation, the General Partner of The Millburn Global Opportunity Fund (the "Partnership"), do hereby certify that: 1. I have reviewed this quarterly report on Form 10-Q of The Millburn Global Opportunity 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 Partnership as of, and for, the periods presented in this quarterly report; 4. The Partnership's other certifying officers 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 Partnership and we have: (i) designed such disclosure controls and procedures to ensure that material information relating to the Partnership, 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 Partnership'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 Partnership's other certifying officers and I have disclosed, based on our most recent evaluation, to the Partnership's auditors and the audit committee of the Partnership'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 Partnership's ability to record, process, summarize and report financial data and have identified for the Partnership'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 Partnership's internal controls; and THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. Page 17 6. The Partnership's other certifying officers 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/ George E. Crapple __________________________________ George E. Crapple Co-Chief Executive Officer November 12, 2002 THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. Page 18 Exhibit 99 (b) CERTIFICATION OF CO-CHIEF EXECUTIVE OFFICER I, Harvey Beker, Co-Chief Executive Officer of Millburn Ridgefield Corporation, the General Partner of The Millburn Global Opportunity Fund (the "Fund"), do hereby certify that: 1. I have reviewed this quarterly report on Form 10-Q of The Millburn Global Opportunity 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 Partnership as of, and for, the periods presented in this quarterly report; 4. The Partnership's other certifying officers 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 Partnership and we have: (i) designed such disclosure controls and procedures to ensure that material information relating to the Partnership, 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 Partnership'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 Partnership's other certifying officers and I have disclosed, based on our most recent evaluation, to the Partnership's auditors and the audit committee of the Partnership'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 Partnership's ability to record, process, summarize and report financial data and have identified for the Partnership'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 Partnership's internal controls; and THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. Page 19 6. The Partnership's other certifying officers 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/ Harvey Beker __________________________________ Harvey Beker Co-Chief Executive Officer November 12, 2002 THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. Page 20 Exhibit 99 (c) CERTIFICATION OF CHIEF FINANCIAL OFFICER I, Gregg R. Buckbinder, Chief Financial Officer of Millburn Ridgefield Corporation, the General Partner of The Millburn Global Opportunity Fund (the "Fund"), do hereby certify that: 1. I have reviewed this quarterly report on Form 10-Q of The Millburn Global Opportunity 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 Partnership as of, and for, the periods presented in this quarterly report; 4. The Partnership's other certifying officers 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 Partnership and we have: (i) designed such disclosure controls and procedures to ensure that material information relating to the Partnership, 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 Partnership'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 Partnership's other certifying officers and I have disclosed, based on our most recent evaluation, to the Partnership's auditors and the audit committee of the Partnership'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 Partnership's ability to record, process, summarize and report financial data and have identified for the Partnership'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 Partnership's internal controls; and THE MILLBURN GLOBAL OPPORTUNITY FUND L.P. Page 21 6. The Partnership's other certifying officers 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/ Gregg R. Buckbinder __________________________________ Gregg R. Buckbinder Chief Financial Officer November 12, 2002

MILLBURN GLOBAL OPPORTUNITY FUND L P 10-Q