UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20599
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) June 30, 2004
BASSETT FURNITURE INDUSTRIES, INCORPORATED
(Exact name of registrant as specified in its charter)
| VIRGINIA | 0-209 | 54-0135270 | ||
| (State or other jurisdiction of incorporation or organization) |
(Commission File No.) | (I.R.S. Employer Identification No.) |
| 3525 FAIRYSTONE PARK HIGHWAY BASSETT, VIRGINIA |
24055 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code 276/629-6000
Item 9. Regulation FD Disclosure
The following information is being furnished pursuant to both this Item 9 and Item 12 Results of Operations and Financial Condition.
Audited financial statements of the Bassett Industries Alternative Asset Fund, L.P. are attached as Exhibit 99 hereto.
Item 12. Results of Operations and Financial Condition.
The information furnished in Item 9 above is incorporated herein by reference.
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 hereunto duly authorized.
| BASSETT FURNITURE INDUSTRIES, INCORPORATED | ||||
| Date: June 30, 2004 |
By: |
/s/ Barry C. Safrit | ||
| Barry C. Safrit | ||||
| Title: |
Vice President, Chief Financial Officer | |||
Exhibit Index
| Exhibit No. 99 | Bassett Industries Alternative Asset Fund, L.P - Financial Statements for the Year Ended December 31, 2003 with Independent Auditors’ Report. | |
Exhibit 99.1
BASSETT INDUSTRIES ALTERNATIVE
ASSET FUND, L.P.
FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITORS’ REPORT
DECEMBER 31, 2003
A CLAIM FOR EXEMPTION FROM CERTAIN REGULATORY REPORTING REQUIREMENTS HAS BEEN MADE TO THE COMMODITY FUTURES TRADING COMMISSION PURSUANT TO COMMISSION REGULATION 4.7 BY THE COMMODITY POOL OPERATOR OF BASSETT INDUSTRIES ALTERNATIVE ASSET FUND, L.P.
BASSETT INDUSTRIES ALTERNATIVE ASSET FUND, L.P.
CONTENTS
| Affirmation of the Commodity Pool Operator |
1 | |
| Independent Auditors’ Report |
2 | |
| Financial Statements |
||
| Statement of Financial Condition |
3 | |
| Statement of Operations |
4 | |
| Statement of Changes in Partners’ Capital |
5 | |
| Statement of Cash Flows |
6 | |
| Condensed Schedule of Investments |
7 | |
| Notes to Financial Statements |
8-10 | |
BASSETT INDUSTRIES ALTERNATIVE ASSET FUND, L.P.
AFFIRMATION OF THE COMMODITY POOL OPERATOR
To the best of the knowledge and belief of the undersigned, the information contained in the annual report for the year ended December 31, 2003 is accurate and complete.
| /s/ Louis W. Moelchert, Jr. |
| Louis W. Moelchert, Jr., Managing Member |
| Private Advisors, L.L.C. |
| General Partner for |
| Bassett Industries Alternative Asset Fund, L.P. |
Commodity Pool Operator:
Private Advisors, L.L.C
1801 Bayberry Court, Suite 303
Richmond, VA 23226
(804) 289-6000
Commodity Pool:
Bassett Industries Alternative Asset Fund, L.P.
1
INDEPENDENT AUDITORS’ REPORT
To the Partners of Bassett Industries Alternative Asset Fund, L.P.
We have audited the accompanying statement of financial condition of Bassett Industries Alternative Asset Fund, L.P., including the condensed schedule of investments, as of December 31, 2003, and the related statements of operations, changes in partners’ capital and cash flows for the year then ended. These financial statements are the responsibility of the General Partner of Bassett Industries Alternative Asset Fund, L.P. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the General Partner, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bassett Industries Alternative Asset Fund, L.P. as of December 31, 2003, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
/s/ Rothstein, Kass & Company, P.C.
Roseland, New Jersey
April 24, 2004
2
BASSETT INDUSTRIES ALTERNATIVE ASSET FUND, L.P.
STATEMENT OF FINANCIAL CONDITION
December 31, 2003
| ASSETS |
|||
| Investments in investment companies, at fair value (cost $32,191,281) |
$ | 45,559,549 | |
| Cash and cash equivalents |
326,761 | ||
| $ | 45,886,310 | ||
| LIABILITIES AND PARTNERS’ CAPITAL |
|||
| Liabilities |
|||
| Accrued expenses |
$ | 7,439 | |
| Partners’ capital |
45,878,871 | ||
| $ | 45,886,310 | ||
See accompanying notes to financial statements.
3
BASSETT INDUSTRIES ALTERNATIVE ASSET FUND, L.P.
STATEMENT OF OPERATIONS
Year Ended December 31, 2003
| Investment income, interest |
$ | 12,144 | ||
| Expenses |
||||
| Management fee |
423,820 | |||
| Professional fees and other |
18,541 | |||
| Total expenses |
442,361 | |||
| Net investment income (loss) |
(430,217 | ) | ||
| Equity in net earnings (net loss) of investments in investment companies |
5,510,344 | |||
| Net income |
$ | 5,080,127 | ||
See accompanying notes to financial statements.
4
BASSETT INDUSTRIES ALTERNATIVE ASSET FUND, L.P.
STATEMENT OF CHANGES IN PARTNERS’ CAPITAL
Year Ended December 31, 2003
| General Partner |
Limited Partner |
Total | |||||||
| Partners’ capital, beginning of period |
$ | 15,676 | $ | 40,783,068 | $ | 40,798,744 | |||
| Net income |
1,952 | 5,078,175 | 5,080,127 | ||||||
| Partners’ capital, end of period |
$ | 17,628 | $ | 45,861,243 | $ | 45,878,871 | |||
See accompanying notes to financial statements.
5
BASSETT INDUSTRIES ALTERNATIVE ASSET FUND, L.P.
STATEMENT OF CASH FLOWS
Year Ended December 31, 2003
| Cash flows from operating activities |
||||
| Net income |
$ | 5,080,127 | ||
| Adjustments to reconcile net income to net cash provided by |
||||
| (used in) operating activities: |
||||
| Equity in net earnings of investments in investment companies |
(5,510,344 | ) | ||
| Changes in operating assets and liabilities: |
||||
| Cost of investments in investment companies |
17,787,166 | |||
| Accrued expenses |
(147,456 | ) | ||
| Net cash provided by (used in) operating activities |
17,209,493 | |||
| Cash flows from financing activities |
||||
| Capital withdrawals, including payment of withdrawals payable |
(17,000,000 | ) | ||
| Net increase (decrease) in cash and cash equivalents |
209,493 | |||
| Cash and cash equivalents, beginning of period |
117,268 | |||
| Cash and cash equivalents, end of period |
$ | 326,761 | ||
See accompanying notes to financial statements.
6
BASSETT INDUSTRIES ALTERNATIVE ASSET FUND, L.P.
CONDENSED SCHEDULE OF INVESTMENTS
December 31, 2003
| Percentage of Partners’ Capital |
Fair Value |
Investment Objective | ||||||
| Investments in Investment Companies |
||||||||
| Styx Partners, L.P. |
38.4 | % | $ | 17,596,163 | Direct Lending | |||
| HBK Fund, L.P. |
21.0 | 9,626,000 | Multi-Strategy | |||||
| *Securities Sold Short |
||||||||
| Government Bonds |
||||||||
| US Treasury, interest rates 1.25% - 4.38% maturities Dec 2004 - Nov 2008, valued at $2,630,852,000 The Fund’s proportionate share of this investment is $5,046,287 |
||||||||
| Japanese Government Bonds, interest rates 0.80%-2.00%, maturities Mar 2009 - Dec 2012, valued at $1,615,927,000 The Fund’s proportionate share of this investment is $3,099,540 |
||||||||
| Contrarian Capital Trade Claims, L.P. |
17.9 | 8,190,099 | Distressed | |||||
| Merced Partners Limited Partnership |
15.1 | 6,945,731 | Multi-Strategy | |||||
| BBT Partners, L.P. |
5.6 | 2,549,160 | Multi-Strategy | |||||
| Other |
1.3 | 652,396 | ||||||
| Total (cost $32,191,281) |
99.3 | % | $ | 45,559,549 | ||||
| * | These investments are disclosed because the Fund’s proportionate share of these investments exceeds 5% of the Fund’s partners’ capital. |
See accompanying notes to financial statements.
7
BASSETT INDUSTRIES ALTERNATIVE ASSET FUND, L.P.
NOTES TO FINANCIAL STATEMENTS
1. Nature of operations and summary of significant accounting policies
Nature of Operations
Bassett Industries Alternative Asset Fund, L.P. (the “Fund”), a Delaware limited partnership, commenced operations on July 1, 1998. Private Advisors, LLC is the General Partner (“General Partner”) of the Fund. Bassett Furniture Industries, Inc and the General Partner are currently the only partners.
The objective of the Fund is to achieve consistent, positive returns, while attempting to reduce risk and volatility, by placing its capital with a variety of investment companies and experienced portfolio managers. Such hedge funds and portfolio managers will employ a variety of trading styles or strategies, including, but not limited to, convertible arbitrage, merger or risk arbitrage, distressed debt, long/short equity, multi-strategy and other market-neutral strategies. The General Partner has discretion to make all investment and trading decisions, including the selection of investment managers. The General Partner will select portfolio managers on the basis of various criteria, including, among other things, the manager’s investment performance during various time periods and market cycles, the company’s infrastructure, and the manager’s reputation, experience, training and investment philosophy. In addition, the General Partner will require that each portfolio manager have a substantial personal investment in the investment program. Refer to the Fund’s offering memorandum for more information.
Cash and Cash Equivalents
The fund considers its investment in a short-term money market funds to be a cash equivalent.
Investments in Investment Companies
In accordance with the Limited Partnership Agreement, investments in investment companies are valued by the General Partner at fair value utilizing the net asset valuations provided by the underlying investment companies, unless the General Partner determines some other valuation is more appropriate. Substantially all of the underlying investments of the investment companies are compromised of cash and cash equivalents and readily marketable securities.
Investment Income
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 income tax returns. The financial statements reflect the Fund’s transactions without adjustment, if any, required for income tax purposes.
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.
8
BASSETT INDUSTRIES ALTERNATIVE ASSET FUND, L.P.
NOTES TO FINANCIAL STATEMENTS
2. Allocation of net profits and losses
In accordance with the Limited Partnership Agreement, profits and losses of the Fund are allocated to partners according to their respective interests in the Fund.
3. Related party transactions
The Fund pays the General Partner, a quarterly management fee equal to 0.25% (1.0% per annum) of the Fund’s net asset value at the beginning of each quarter.
4. Investments in investment companies
As of December 31, 2003, the Fund invested in other investment companies, none of which were related parties.
The following table summarizes the Fund’s investments in investment companies as of December 31, 2003. Investment companies in which the Fund invested 5% or more of its net assets are individually identified, while smaller investments are aggregated. The management agreements of the investee funds provide for compensation to the managers in the form of fees ranging from 1.0% to 1.5% annually of net assets and performance incentive allocations equal to 20% of net profits earned.
| Investment |
% of Fund’s Net Assets |
Fair Value |
Redemptions Permitted |
Annual Fee Percentages |
||||||||||
| Management |
Incentive |
|||||||||||||
| Styx Partners, L.P. |
38.4 | % | $ | 17,596,163 | Annually | 1.00 | % | 20.00 | % | |||||
| HBK Fund, L.P. |
21.0 | 9,626,000 | Quarterly | 1.50 | 20.00 | |||||||||
| Contrarian Capital Trade Claims, L.P. |
17.9 | 8,190,099 | Annually | 1.50 | 20.00 | |||||||||
| Merced Partners Limited Partnership |
15.1 | 6,945,731 | Annually | 1.50 | 20.00 | |||||||||
| BBT Partners, L.P. |
5.6 | 2,549,160 | Quarterly | 1.50 | 20.00 | |||||||||
| Other |
1.3 | 652,396 | ||||||||||||
| Total |
99.3 | % | $ | 45,559,549 | ||||||||||
The General Partner was unable to obtain the specific fee amounts for the above funds. The applicable fee percentage was substituted for the fee amounts.
9
BASSETT INDUSTRIES ALTERNATIVE ASSET FUND, L.P.
NOTES TO FINANCIAL STATEMENTS
5. Financial highlights
Financial highlights for the year ended December 31, 2003 are as follows:
| Total return |
12.5 | % | |
| Ratio to average limited partners’ capital Expenses |
1.0 | % | |
| Net investment income (loss) |
(1.0 | )% | |
Financial highlights are calculated for the limited partner taken as a whole.
10