10-Q 1 c79103e10vq.txt QUARTERLY REPORT 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, 2003 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From __________ to __________. Commission File Number: 0-26459 THE FULCRUM FUND LIMITED PARTNERSHIP (Exact name of registrant as specified in its charter) CONNECTICUT 06-1456461 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) TWO AMERICAN LANE P.O. BOX 5150 GREENWICH, CONNECTICUT 06831-8150 (Address of principal executive offices, including zip code) Registrant's telephone number, including area code: (203) 861-1000 Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ---- ---- Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes No X ---- ---- THE FULCRUM FUND LIMITED PARTNERSHIP QUARTER ENDED JUNE 30, 2003 INDEX

PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS THE FULCRUM FUND LIMITED PARTNERSHIP STATEMENTS OF FINANCIAL CONDITION June 30, 2003 (Unaudited) and December 31, 2002 (Audited)

See accompanying notes. THE FULCRUM FUND LIMITED PARTNERSHIP CONDENSED SCHEDULE OF INVESTMENTS June 30, 2003 (Unaudited)

See accompanying notes. 2 THE FULCRUM FUND LIMITED PARTNERSHIP STATEMENTS OF OPERATIONS For the Three Months Ended June 30, 2003 and 2002 and For the Six Months Ended June 30, 2003 and 2002 (Unaudited)

See accompanying notes. 3 THE FULCRUM FUND LIMITED PARTNERSHIP STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (NET ASSET VALUE) For the Six Months Ended June 30, 2003 and 2002 (Unaudited)

See accompanying notes. 4 THE FULCRUM FUND LIMITED PARTNERSHIP NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. GENERAL DESCRIPTION OF THE PARTNERSHIP The Fulcrum Fund Limited Partnership (the Partnership) is a Connecticut limited partnership which operates as a commodity pool. The Partnership engages in the speculative trading of futures contracts and options on futures contracts. It is subject to the regulations of the Commodity Futures Trading Commission, an agency of the United States (U.S.) government which regulates most aspects of the commodity futures industry; rules of the National Futures Association, an industry self-regulatory organization; and the requirements of commodity exchanges and Futures Commission Merchants (brokers) through which the Partnership trades. The Partnership is a registrant with the Securities and Exchange Commission (SEC) pursuant to the Securities Exchange Act of 1934 (the Act). As a registrant, the Partnership is subject to the regulations of the SEC and the informational requirements of the Act. B. METHOD OF REPORTING The Partnership's financial statements are presented in accordance with accounting principles generally accepted in the United States of America, which require the use of certain estimates made by the Partnership's management. Gains or losses are realized when contracts are liquidated. Net unrealized gains or losses on open contracts (the difference between contract trade price and quoted market price) are reflected in the statement of financial condition in accordance with Financial Accounting Standards Board Interpretation No. 39 - "Offsetting of Amounts Related to Certain Contracts." Any change in net unrealized gain or loss during the current period is reported in the statement of operations. Brokerage commissions include exchange and other trading fees and are charged to expense when contracts are opened. C. CASH AND CASH EQUIVALENTS Cash and cash equivalents includes cash and short-term time deposits held at financial institutions. D. INCOME TAXES The Partnership prepares calendar year U.S. and applicable state information tax returns and reports to the partners their allocable shares of the Partnership's income, expenses and trading gains or losses. E. FOREIGN CURRENCY TRANSACTIONS The Partnership's functional currency is the U.S. dollar; however, it transacts business in currencies other than the U.S. dollar. Assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the rates in effect at the date of the statement of financial condition. Income and expense items denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the rates in effect during the period. Gains and losses resulting from the translation to U.S. dollars are reported in income currently. 5 THE FULCRUM FUND LIMITED PARTNERSHIP NOTES TO FINANCIAL STATEMENTS (CONTINUED) (Unaudited) NOTE 2. GENERAL PARTNER The General Partner of the Partnership is Kenmar Advisory Corp., which conducts and manages the business of the Partnership. The Limited Partnership Agreement requires the General Partner to maintain a capital account of no less than the lesser of 1% of the aggregate capital accounts of all partners or $500,000. For managing the continuing offering of units, the General Partner receives a monthly offering fee equal to 0.25% (3% annually) of that month's beginning Net Asset Value (as defined in the Limited Partnership Agreement) of the Partnership. The General Partner rebates to One Million Dollar Investors (as defined in the Confidential Private Placement Memorandum and Disclosure Document) who invested in the Partnership prior to August 1, 2000, a monthly amount equal to two-thirds of the offering fee applicable to such One Million Dollar Investors. All rebates to One Million Dollar Investors are made by issuing additional Units. A portion of the brokerage commissions paid by the Partnership to the broker is, in turn, paid by the broker to the General Partner. NOTE 3. COMMODITY TRADING ADVISOR The Partnership has an advisory agreement with Beacon Management Corporation (USA) (Beacon), a commodity trading advisor, pursuant to which the Partnership pays a monthly management fee of 1/12 of 2% (2% annually) of the month-end Net Asset Value of the subaccount (as defined in the advisory agreement) and a quarterly incentive fee equal to 20% of Net New Trading Profits (as defined). Beacon pays up to 22.5% of its management and incentive fees to the General Partner. No incentive fee was earned by Beacon during the six months ended June 30, 2003 and 2002. NOTE 4. DEPOSITS WITH BROKER The Partnership deposits cash with Man Financial Inc. to act as broker, subject to Commodity Futures Trading Commission regulations and various exchange and broker requirements. Margin requirements are satisfied by the deposit of cash with such broker. The Partnership earns interest income on its cash deposited with the broker. NOTE 5. SUBSCRIPTIONS, DISTRIBUTIONS AND REDEMPTIONS Investments in the Partnership are made by subscription agreement, subject to acceptance by the General Partner. The subscription price is equal to the Net Asset Value of the units purchased plus a 5% selling commission, unless such selling commission is waived in whole or in part by the General Partner. Additions to partners' capital are shown net of such selling commissions which amounted to $0 during the six months ended June 30, 2003 and 2002. The Partnership is not required to make distributions, but may do so at the sole discretion of the General Partner. A Limited Partner may request and receive redemption of units owned, subject to restrictions in the Limited Partnership Agreement. 6 THE FULCRUM FUND LIMITED PARTNERSHIP NOTES TO FINANCIAL STATEMENTS (CONTINUED) (Unaudited) NOTE 6. TRADING ACTIVITIES AND RELATED RISKS The Partnership engages in the speculative trading of U.S. and foreign futures contracts. The Partnership is exposed to both market risk, the risk arising from changes in the market value of the contracts, and credit risk, the risk of failure by another party to perform according to the terms of a contract. Purchase and sale of futures contracts requires margin deposits with the broker. Additional deposits may be necessary for any loss on contract value. The Commodity Exchange Act requires a broker to segregate all customer transactions and assets from such broker's proprietary activities. A customer's cash and other property (for example, U.S. Treasury bills) deposited with a broker are considered commingled with all other customer funds subject to the broker's segregation requirements. In the event of a broker's insolvency, recovery may be limited to a pro rata share of segregated funds available. It is possible that the recovered amount could be less than total cash and other property deposited. The Partnership has assets on deposit with financial institutions in connection with its cash management activities. In the event of a financial institution's insolvency, recovery of Partnership assets on deposit may be limited to account insurance or other protection afforded such deposits. For futures contracts, risks arise from changes in the market value of the contracts. Theoretically, the Partnership is exposed to a market risk equal to the value of futures contracts purchased and unlimited liability on such contracts sold short. The General Partner has established procedures to actively monitor market risk and minimize credit risk, although there can be no assurance that it will, in fact, succeed in doing so. The Limited Partners bear the risk of loss only to the extent of the market value of their respective investments and, in certain specific circumstances, distributions and redemptions received. NOTE 7. INTERIM FINANCIAL STATEMENTS The statement of financial condition as of June 30, 2003, including the June 30, 2003 condensed schedule of investments, the statements of operations for the three months and six months ended June 30, 2003 and 2002, and the statements of changes in partners' capital (net asset value) for the six months ended June 30, 2003 and 2002, are unaudited. In the opinion of management, such financial statements reflect all adjustments, which were of a normal and recurring nature, necessary for a fair presentation of financial position as of June 30, 2003, and the results of operations for the three months and six months ended June 30, 2003 and 2002. 7 NOTE 8. FINANCIAL HIGHLIGHTS The following information presents per unit operating performance data and other supplemental financial data for the three months and six months ended June 30, 2003 and 2002. This information has been derived from information presented in the financial statements.

Total returns are calculated based on the change in value of a unit during the period. An individual partner's total returns and ratios may vary from the above total returns and ratios based on the timing of additions and redemptions. --------------------- (1) Excludes brokerage commissions and other trading fees. (2) Includes brokerage commissions and other trading fees. (3) The net investment (loss) per unit is calculated by dividing the net investment (loss) by the average number of units outstanding during the period. The net realized and change in unrealized gain (loss) from trading is a balancing amount necessary to reconcile the change in net asset value per unit with the other per unit information. (4) Not annualized. (5) Annualized. 8 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The assets of the Fulcrum Fund Limited Partnership, formerly known as The Dennis Fund Limited Partnership (the "Partnership") are used to engage, directly or indirectly, in the speculative trading of (1) commodities, futures contracts, forward contracts, foreign exchange commitments, exchange for physicals, swap contracts, spot (cash) commodities and other items, options on the foregoing, and any rights pertaining to the foregoing contracts, instruments or investments ("Commodities") and (2) options, warrants, or other rights and any other investment or transaction (together with the Commodities, "Investments") that the Partnership's general partner, Kenmar Advisory Corp. (the "General Partner") deems, in its sole discretion, to be consistent with the objectives of the Partnership. From time to time, a portion of such proceeds may be used for transactions in the cash markets or for interbank trading. The assets of the Partnership are deposited with Man Financial Inc. (the "Broker") in a trading account established by the Partnership for the commodity trading advisor and are used by the Partnership as margin to engage in trading. Such assets are held in either a non-interest bearing bank account or in securities approved by the Commodity Futures Trading Commission for investment of customer funds. In addition, certain of the Partnership's assets may also be placed in a custodial account with a cash manager to maximize the interest earned on assets not committed as margin. The commodity trading advisor for the Partnership is the Meka program of the Beacon Management Corporation ("Beacon" or the "Advisor"). The Advisor is the sole advisor for the Partnership. CAPITAL RESOURCES The Partnership does not have, nor does it expect to have, any capital assets. Redemptions and sales of units of limited partnership interests ("Units") in the future will affect the amount of funds available for trading Investments in subsequent periods. There are only three factors that affect the Partnership's capital resources: (i) the trading profit or loss generated by the Advisor (including interest income); (ii) the money invested or redeemed by the limited partners of the Partnership (the "Limited Partners"); and (iii) capital invested or redeemed by the General Partner. The General Partner has maintained, and shall maintain, at all times a capital account in such an amount, up to a total of $500,000, as is necessary for the General Partner to maintain a one percent (1%) interest in the capital, income and losses of the Partnership. All capital contributions by the General Partner necessary to maintain such capital account balance shall be evidenced by Units of general partnership interest, each of which shall have an initial value equal to the Net Asset Value per Unit (as defined below) at the time of such contribution. The General Partner, in its sole discretion, may withdraw any excess above its required capital contribution without notice to the Limited Partners. The General Partner, in its sole discretion, may also contribute any greater amount to the Partnership, for which it shall receive, at its option, additional Units of general partnership interest at their then-current Net Asset Value (as defined below). "Net Asset Value" of the Partnership is defined as total assets of the Partnership, including, but not limited to, all cash and cash equivalents, accrued interest, earned discount, and open Commodities positions, less total liabilities, including, but not limited to, brokerage commissions that would be payable with respect to the closing of open Commodities positions, all as determined in accordance with the principles set forth in the Limited Partnership Agreement of the Partnership, dated June 18, 1996 and as amended on December 15, 1997 and further amended on October 10, 2000 (the "Partnership Agreement") or, where no such principles are specified therein, in accordance with United States generally accepted accounting principles applied on a consistent basis ("GAAP"). The term "Net Asset Value per Unit" is defined in the Partnership Agreement to mean the Net Asset Value of the Partnership divided by the number of Units outstanding as of the date of determination. 9 RESULTS OF OPERATIONS The success of the Partnership is dependent upon the ability of the Advisor to generate trading profits through the speculative trading of Investments sufficient to produce capital appreciation after payment of all fees and expenses. Future results will depend in large part upon the Investment markets in general, the performance of the Advisor, the amount of additions and redemptions, and changes in interest rates. Due to the highly leveraged nature of Investment trading, small price movements may result in substantial losses. Because of the nature of these factors and their interaction, it is impossible to predict future operating results. The Partnership incurs substantial charges from the payment of brokerage commissions to the Broker, management and/or incentive fees to the Advisor, management fees, offering fees and/or incentive fees to the General Partner and operating expenses. The Partnership is required to make substantial trading profits to avoid depletion and exhaustion of its assets from the above-mentioned fees and expenses. Due to the nature of the Partnership's business, the Partnership's trading results depend on the Advisor and the ability of its individual trading system to take advantage of price movement or other profit opportunities in the Investment markets. The Advisor trades in various markets at different times and prior activity in a particular market does not mean that such markets will be actively traded by an Advisor or will be profitable in the future. Consequently, the results of operations of the Partnership can only be discussed in the context of the overall trading activities of the Partnership, the Advisor's trading activities on behalf of the Partnership as a whole and how the Partnership has performed in the past. In general, Commodity Trading Advisors or CTAs analyze the movement of prices in the commodity and financial futures markets to identify trends and the opportunities for profit which accompany them. Because a CTA can take long or short positions in the futures markets, the direction of a trend is less important than the existence of a trend itself. The Advisor or another CTA has the potential to generate profits when prices are identified as trending downward, by going short or selling ahead of a price decline, and when prices appear to be trending upward, by going long or buying ahead of the rise in price. When prices are moving sideways (i.e., with little movement up or down) or are exhibiting significant short-term volatility (such as rapid intra-day or inter-day price swings) trends are few and far between, and CTA profits can be flat or negative. Set forth below is a comparison of the results of operations of the Partnership for the three and six month periods ended June 30, 2003 and 2002. As of June 30, 2003, the Net Asset Value of the Partnership was $10,230,701, a decrease of approximately 15.97% from its Net Asset Value of $12,175,705 at March 31, 2003. The Partnership's subscriptions and redemptions for the quarter ended June 30, 2003 totaled $23,419 and $880,688, respectively. For the quarter ended June 30, 2003, the Partnership had revenues comprised of ($439,292) in realized losses, ($385,473) in change in unrealized losses and $27,011 in interest income compared to revenues comprised of $1,987,342 in realized gains, $618,300 in change in unrealized gains and $34,843 in interest income for the same period in 2002. The total income for the second quarter of 2003 decreased by $3,438,240 from the same period in 2002, while total expenses increased by $22,110 between these periods. The Net Asset Value per Unit decreased 9.20% from $999.96 at March 31, 2003 to $908.01 at June 30, 2003. The Partnership's negative performance for the quarter ended June 30, 2003 resulted primarily from losses in metals, grains, tropicals, energies and meats. The Net Asset Value of the Partnership decreased $1,491,902 or 12.73%, from December 31, 2002 through June 30, 2003. The Partnership's subscriptions and redemptions for the six months ended June 30, 2003 totaled $50,079 and $1,408,914 respectively. For the six months ended June 30, 2003, the Partnership had revenues comprised of $3,388,669 in realized gains, ($2,995,497) in change in unrealized losses and 10 $60,471 in interest income compared to revenues comprised of ($242,592) in realized losses, $537,394 in change in unrealized gains and $71,816 in interest income for the same period in 2002. The total income for the six months of 2003 increased by $87,025 from the same period in 2002 while expenses increased by $31,698 between these periods. The Net Asset Value per Unit decreased 2.16% from $928.04 at December 31, 2002 to $908.01 at June 30, 2003. For the reasons described in this Management's Discussion and Analysis, past performance is not indicative of future results. As a result, any recent increases in net realized or unrealized trading gains may have no bearing on any results that may be obtained in the future. LIQUIDITY Although there is no public market for the Units, a Limited Partner may redeem its Units in the Partnership as of any month-end upon ten (10) days' written notice to the General Partner in the form of a request for redemption. With respect to the Partnership's trading, in general, the Advisor will trade only Investments that have sufficient liquidity to enable it to enter and close out positions without causing major price movements. Notwithstanding the foregoing, most United States commodity exchanges limit the amount by which certain commodities may move during a single day by regulations referred to as "daily price fluctuation limits" or "daily limits." Pursuant to such regulations, no trades may be executed on any given day at prices beyond daily limits. The price of a futures contract has occasionally moved the daily limit for several consecutive days, with little or no trading, thereby effectively preventing a party from liquidating its position. While the occurrence of such an event may reduce or effectively eliminate the liquidity of a particular market, it will not limit ultimate losses and may in fact substantially increase losses because of this inability to liquidate unfavorable positions. In addition, if there is little or no trading in a particular futures or forward contract that the Partnership is trading, whether such illiquidity is caused by any of the above reasons or otherwise, the Partnership may be unable to execute trades at favorable prices and/or may be unable or unwilling to liquidate its position prior to its expiration date, thereby requiring the Partnership to make or take delivery of the underlying interest of the Investment. The Partnership's trading also may be impacted by the various conflicts of interest between the Partnership and the General Partner, the Advisor, the Broker, and their affiliates. SAFE HARBOR STATEMENT The discussions above and under the heading "Item 3. Quantitative and Qualitative Disclosures About Market Risk" contain certain "forward-looking statements" (as such term is defined in Section 21E of the Securities Exchange Act of 1934) that are based on the beliefs of the Partnership, as well as assumptions made by, and information currently available to, the Partnership. Words such as "expects," "anticipates" and similar expressions have been used to identify "forward-looking statements" but are not the exclusive means of identifying such statements. A number of important factors could cause the Partnership's actual results, performance or achievements for 2003 and beyond to differ materially from the results, performance or achievements expressed in, or implied by, such forward-looking statements. These factors include, without limitation, risk of failure by third parties to perform according to contract terms and the factors described elsewhere in this Quarterly Report on Form 10-Q, including under the heading "Item 3. Quantitative and Qualitative Disclosures About Market Risk." See "Management's Discussion and Analysis of Financial Condition and Results of Operations - Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2002 for further discussion. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Derivative instruments involve varying degrees of off-balance sheet market risk. Changes in the level or volatility of interest rates or foreign currency exchange rates or the market values of the financial 11 instruments or commodities underlying such derivative instruments frequently result in changes in the Partnership's unrealized profit (loss) on such derivative instruments as reflected in the Statements of Financial Condition included herein. The Partnership's exposure to market risk is influenced by a number of factors, including the relationships among derivative instruments held by the Partnership, as well as the volatility and liquidity of the markets in which the financial instruments are traded. There has been no material change, during the six months ended June 30, 2003, in the sources of the Partnership's exposure to market risk. The General Partner has procedures in place intended to control the Partnership's exposure to market risk, although there can be no assurance that it will, in fact, succeed in doing so. These procedures focus primarily on monitoring the trading of the Advisor selected from time to time for the Partnership, calculating the Net Asset Value of the Advisor's respective Partnership accounts as of the close of business on each day and reviewing outstanding positions for over-concentrations. While the General Partner will not itself intervene in the markets to hedge or diversify the Partnership's market exposure, the General Partner may urge the Advisor to reallocate positions, or itself reallocate Partnership assets among different Advisors (although typically only as of the end of a month) in an attempt to avoid over-concentrations. However, such interventions would be unusual. Except in cases in which it appears that an Advisor has begun to deviate from past practice or trading policies or to be trading erratically, the General Partner's basic risk control procedures consist of the ongoing process of Advisor monitoring and selection, with the market risk controls being applied by the Advisor itself. ITEM 4. CONTROLS AND PROCEDURES The General Partner carried out an evaluation, under the supervision and with the participation of the General Partner's management, including its Chief Executive Officer and Chief Financial Officer, of the design and operation of the Partnership's disclosure controls and procedures. Based on this evaluation, the General Partner's Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2003, the Partnership's disclosure controls and procedures were effective to provide reasonable assurance that the information required to be disclosed by the Partnership in the reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. Any control system, no matter how well designed and operated, can provide only reasonable (not absolute) assurance that its objectives will be met. Furthermore, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. 12 PART II- OTHER INFORMATION ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS In June, 1996, the Partnership commenced a private placement of Units in reliance on the exemptions afforded by, among others, Section 4(2) of the Securities Act of 1933 and Rule 506 of Regulation D promulgated thereunder. Units are offered monthly at a price per Unit equal to the then-current Net Asset Value per Unit plus a selling commission equal to 5% unless such selling commission is waived in whole or in part. The minimum subscription is $26,250 for new investors other than Employee Benefit Plans or $10,500 for Employee Benefit Plans and existing Limited Partners, which amounts include selling commissions of $1,250 and $500, respectively. During the second quarter of 2003, 24.0302 Units were sold for a total of $23,419. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (A) EXHIBITS 3.1* Amended Certificate of Limited Partnership for the Fulcrum Fund Limited Partnership. 3.2* Limited Partnership Agreement of the Fulcrum Fund Limited Partnership, dated June 18, 1996, as amended December 15, 1997 and further amended October 10, 2000. 10.1** Customer Agreement between the Partnership and E.D. & F. Man International, Inc., dated August 27, 1996. 10.2* Cover letter and Model Sub-Advisory Agreement between The Fulcrum Fund Limited Partnership and Beacon Management Corporation dated January 1, 1998. 10.3* Cover letter and Model Sub-Advisory Agreement between The Dennis Fund Limited Partnership and Stonebrook Structured Products, LLC dated January 1, 1998. 31.1 Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. 31.2 Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. 32.1 Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. * Incorporated herein by reference to the Partnership's Annual Report on Form 10-K for the fiscal year ended December 31, 2000. ** Incorporated herein by reference to the Partnership's Registration Statement on Form 10 dated June 22, 1999. 13 (B) REPORTS ON FORM 8-K The Partnership did not file any reports on Form 8-K during the second quarter of 2003. 14 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. THE FULCRUM FUND LIMITED PARTNERSHIP Date: August 14, 2003 By: Kenmar Advisory Corp., its general partner By: /s/ Kenneth A. Shewer -------------------------- Kenneth A. Shewer Chairman (duly authorized officer of the General Partner) By: /s/ Maureen Howley -------------------------- Maureen Howley Chief Financial Officer (duly authorized officer of the General Partner)

FULCRUM FUND LIMITED PARTNERSHIP 10-Q