Back to GetFilings.com



DRAFT

FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

OR ( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarter ended September 30, 2004

Commission File Number 0-50736

SALOMON SMITH BARNEY FAIRFIELD FUTURES FUND L.P.

(Exact name of registrant as specified in its charter)


New York 04-3621353
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)

c/o Citigroup Managed Futures LLC
399 Park Avenue – 7th Fl.
New York, New York 10022

(Address and Zip Code of principal executive offices)

(212) 559-2011

(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 (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



SALOMON SMITH BARNEY FAIRFIELD FUTURES FUND L.P.

FORM 10-Q

INDEX


    Page
Number
PART I - Financial Information:
Item 1. Financial Statements:
  Statements of Financial Condition
at September 30, 2004 and December 31, 2003
(unaudited).		   3  
  Condensed Schedules of Investments
at September 30, 2004 and December 31, 2003
(unaudited).		   4 – 5  
  Statements of Income and Expenses
and Partners' Capital for the three and
nine months ended September 30, 2004 and 2003
(unaudited).		   6  
  Statements of Cash Flows for the three and nine
months ended September 30, 2004 and 2003
(unaudited).		   7  
  Notes to Financial Statements
(unaudited).		   8 – 12  
Item 2. Management's Discussion and
Analysis of Financial Condition
and Results of Operations.		    13 – 15  
Item 3. Quantitative and Qualitative
Disclosures about Market Risk		   16 – 17  
Item 4. Controls and Procedures.   18  
PART II - Other Information   19  

2



PART I

Item 1.    Financial Statements

Salomon Smith Barney Fairfield Futures Fund L.P.
Statements of Financial Condition
(Unaudited)


  September 30,
2004		 December 31,
2003
Assets:            
Equity in commodity futures trading account:            
Cash (restricted $16,090,510 in 2004 and $22,528,015 in 2003) $ 109,595,749   $ 147,097,742  
Net unrealized appreciation on open futures positions   5,758,039     7,024,635  
Unrealized appreciation on open forward contracts   368,719     9,431,409  
    115,722,507     163,553,786  
Interest receivable   38,074     17,096  
  $ 115,760,581   $ 163,570,882  
Liabilities and Partners' Capital:            
Liabilities:            
Unrealized depreciation on open forward contracts $ 479,219   $ 5,457,368  
Accrued expenses:            
Commissions   425,218     604,289  
Management fees   188,116     267,456  
Administrative fees   47,029     66,864  
Incentive fees   —     2,810,786  
Due to CGM   —     14,614  
Other   105,446     53,488  
Redemptions payable   987,741     985,637  
    2,232,769     10,260,502  
Partners' Capital:            
General Partner, 864.9335 Unit equivalents outstanding in 2004 and 2003   1,293,569     1,546,626  
Limited Partners, 75,044.4396 and 84,872.1963 Redeemable Units of Limited Partnership Interest outstanding in 2004 and 2003, respectively   112,234,243     151,763,754  
    113,527,812     153,310,380  
  $ 115,760,581   $ 163,570,882  

See Accompanying Notes to Unaudited Financial Statements.

3



Salomon Smith Barney Fairfield Futures Fund L.P.
Condensed Schedule of Investments
September 30, 2004
(Unaudited)


Sector Contract Fair Value
Currencies        
  Futures contracts purchased (0.12)% $ (133,811 ) 
  Futures contracts sold (0.22)%   (248,385 ) 
Total Currencies (0.34)%     (382,196 ) 
Total Energy 1.33% Futures contracts purchased 1.33%   1,507,550  
Total Grains 0.87% Futures contracts sold 0.87%   983,490  
Total Interest Rates U.S. 0.63% Futures contracts purchased 0.63%   713,988  
Total Interest Rates Non-U.S. 2.62% Futures contracts purchased 2.62%   2,969,300  
Metals        
  Unrealized appreciation on forward contracts 0.32%   368,719  
  Unrealized depreciation on forward contracts (0.42)%   (479,219 ) 
Total Metals (0.10)%     (110,500 ) 
Indices        
  Futures contracts purchased (0.09)%   (96,928 ) 
  Futures contracts sold 0.06%   62,835  
Total Indices (0.03)%     (34,093 ) 
Total Fair Value 4.98%   $ 5,647,539  

Country Composition Investments at Fair Value % of
Investments at
Fair Value
Australia $ 26,006     0.46 % 
France   (40,892 )    (0.72 ) 
Germany   1,505,707     26.66  
Hong Kong   (26,161 )    (0.46 ) 
Japan   602,667     10.67  
United Kingdom   757,380     13.41  
United States   2,822,832     49.98  
  $ 5,647,539     100.00 % 

Percentages are based on Partners' capital unless otherwise indicated.

See Accompanying Notes to Unaudited Financial Statements.

4



Salomon Smith Barney Fairfield Futures Fund L.P.
Condensed Schedule of Investments
December 31, 2003
(Unaudited)


Sector Contract Fair Value
Currencies Futures contracts purchased 2.19% $ 3,353,014  
  Unrealized appreciation on forward contracts 0.00%*