<PAGE>
                          UNITED STATES
                SECURITIES AND EXCHANGE COMMISSION
                      WASHINGTON D.C. 20549

                            FORM 10-Q

 X   Quarterly report pursuant to Section 13 of 15(d) of the
-------   Securities Exchange Act of 1934

For the Quarterly period ended December 31, 1996 or          

     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 2-73692


        The Balanced Opportunity Fund Limited Partnership
----------------------------------------------------------------- 
     (Exact name of registrant as specified in its charter)

 
           Illinois                       36-3655854           
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   (State or other jurisdiction of           (IRS Employer
      incorporation or organization)         Identification No.)



  c/o Rodman & Renshaw Futures Management, Inc.
  233 South Wacker Drive, Suite 4500   
  Chicago, Illinois                        60606                
----------------------------------------------------------------- 
 (Address of principal                 (Zip Code)
      executive offices)


                        (312)  526-2000                         
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       (Registrant's telephone number, including area code)

Indicate by checkmark 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 
                                                   ---      --- 
 


                  Total Pages In This Report - 9
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<TABLE>
             The Balanced Opportunity Fund Limited Partnership

<CAPTION>
                                   INDEX

<S>                                                                 <C>
PART I - FINANCIAL INFORMATION
                                                                    Page
Item 1.  Financial Statements -                              

  Consolidated Statements of Financial Condition as of
  December 31, 1996 (unaudited) and June 30, 1996                       3

  Consolidated Statements of Operations (unaudited) for the
  three-month and six-month periods ended December 31, 1996 and 1995    4   
                                                              
  Consolidated Statements of Changes in Partners' Capital for the    
  six-month period ended December 31, 1996 (unaudited) and the
  year ended June 30, 1996                                              5
          
  Note to Unaudited Consolidated Financial Statements --
  December 31, 1996                                                     6

Item 2.  Management's Discussion and Analysis of Financial     
         Condition and Results of Operations                            7
                                                           

Part II - OTHER INFORMATION                                             8   
   

Item 6.  Exhibits and Reports on Form 8-K                               8

SIGNATURES                                                              9

</TABLE>
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<TABLE>

PART I.  FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS     

                          THE BALANCED OPPORTUNITY FUND LIMITED PARTNERSHIP
                            CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<CAPTION>

                                                            December 31,    
                                                                1996            June 30,
                                                            (unaudited)           1996
                                                            ------------        ----------
<S>                                                         <C>                 <C>     
ASSETS

Equity in commodity futures trading accounts:
   Cash                                                     $  720,000          $  568,000
   Net unrealized gain on open contracts                        30,000                    
                                                            ----------          ----------


              Total equity in commodity futures
              trading accounts                                 750,000             568,000


Guaranteed yield pool, at market                             4,875,000           4,987,000


Interest receivable                                              1,000                    


Illinois replacement tax receivable                              1,000               1,000


Other receivables                                                1,000               1,000
                                                            ----------          ----------    


              Total assets                                  $5,628,000          $5,557,000
                                                            ==========          ==========            
       


LIABILITIES AND PARTNERS' CAPITAL

Liabilities:
   Accrued administrative expenses                          $   23,000          $   40,000
   Accrued commissions and fees                                 18,000              38,000
                                                            ----------          ---------- 
              Total liabilities                                 41,000              78,000     


Partners' capital
   Limited partners (units outstanding: 3,345.4502
                       and 3,392.4502)                       5,407,000           5,305,000
   General partner (units outstanding:  111.1143)              180,000             174,000
                                                            ----------          ----------

              Total partners' capital                        5,587,000           5,479,000
                                                            ----------          ----------

TOTAL LIABILITIES AND PARTNERS' CAPITAL                     $5,628,000          $5,557,000
                                                            ==========          ==========    


NET ASSET VALUE PER UNIT                                    $ 1,616.22          $ 1,563.75
                                                            ==========          ==========

<FN>

                    See note to the unaudited consolidated financial statements.
</FN>
</TABLE>
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<TABLE>

       THE BALANCED OPPORTUNITY FUND LIMITED PARTNERSHIPCONSOLIDATED STATEMENTS OF OPERATIONS
                                            (unaudited)

<CAPTION>
                                                       THREE MONTHS ENDED                 SIX MONTHS ENDED
                                                          DECEMBER 31,                      DECEMBER 31,  
                                                       1996          1995                1996           1995
                                                       ----          ----                ----           ----       

<S>                                                  <C>            <C>                <C>            <C>          
REVENUES:

   Trading profit/(loss):                                                          
      Realized                                       $191,000       $ 255,000          $177,000       $ 206,000 
      Change in unrealized                            (61,000)         14,000            30,000          30,000
   Foreign currency gain/(loss)                             0           3,000             1,000       $ (21,000)
                                                     --------       ---------          --------       ----------

               Total trading profit and
                  foreign currency gain               130,000         272,000           208,000         215,000 


   Guaranteed yield pool:
      Accrued interest                        200,000         109,000           396,000         221,000  
      Unrealized market value gain/(loss)            (132,000)         25,000          (253,000)         12,000
                                                     ---------      ---------          ---------      ---------

               Total guaranteed yield pool
                  revenue                              68,000         134,000           143,000         233,000
                  

Interest income                                         5,000          10,000             8,000          19,000
                                                     --------       ---------          --------       ---------

               Total revenues                         203,000         416,000           359,000         467,000
                                                     --------       ---------          --------       ---------


EXPENSES:

   Brokerage commissions                               59,000          65,000           119,000         135,000
   Advisory fees                                       14,000          16,000            28,000          32,000
   Administrative expenses                             15,000          12,000            30,000          22,000
                                                     --------       ---------          --------       ---------
               Total expenses                          88,000          93,000           177,000         189,000
                                                     --------       ---------          --------       ---------



NET INCOME                                           $115,000       $ 323,000          $182,000       $ 278,000
                                                     ========       =========          ========       =========    
                                                     
NET INCOME ALLOCATED TO:
               Limited partners                      $111,000       $ 314,000          $176,000       $ 270,000
                                                     ========       =========          ========       =========

               General partner                       $  4,000       $   9,000          $  6,000       $   8,000
                                                     ========       =========          ========       =========


NET INCOME PER UNIT
   OUTSTANDING FOR ENTIRE PERIOD                     $  33.12       $   82.50          $  52.47       $   71.41
                                                     ========       =========          ========       =========

<FN>
                          See note to the unaudited consolidated financial statements.
</FN>
</TABLE>
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<TABLE>

                      
THE BALANCED OPPORTUNITY FUND LIMITED PARTNERSHIP
                    CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' CAPITAL


<CAPTION>
                              
                        TOTAL UNITS 
                        OF PARTNERSHIP    LIMITED           GENERAL           
                        INTEREST          PARTNERS          PARTNER           TOTAL
                        --------------    --------          -------           -----      



<S>                     <C>               <C>               <C>               <C>
PARTNERS' CAPITAL
   June 30, 1995        4,217.5645        $ 6,544,000       $177,000          $ 6,721,000


Redemptions              (714.0000)        (1,150,000)                         (1,150,000)


Net loss                                      (89,000)        (3,000)             (92,000)
                        -----------       ------------      ---------         ------------
PARTNERS' CAPITAL
   June 30, 1996        3,503.5645        $ 5,305,000       $174,000          $ 5,479,000 
                        ===========       ============      =========         ============    


Redemptions              ( 47.0000)           (74,000)                            (74,000)


Net income                                    176,000          6,000              182,000    
      
                        -----------       -----------       ---------         ------------


PARTNERS' CAPITAL
   December 31, 1996
   (unaudited)          3,456.5645        $ 5,407,000       $180,000          $ 5,587,000     
                        ===========       ============      ========          ============


<FN>


                See note to the unaudited consolidated financial statements.
</FN>
</TABLE>
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THE BALANCED OPPORTUNITY FUND LIMITED PARTNERSHIP
NOTE TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1996 



NOTE A - BASIS OF PRESENTATION
------   ---------------------

The unaudited consolidated financial statements of The Balanced
Opportunity Fund Limited Partnership (the "Partnership") have
been prepared in accordance with generally accepted accounting
principles for interim financial information and with the
instructions to Form 10-Q and Rule 10-01 of Regulation S-X. 
Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles
for complete financial statements.  In the opinion of management,
all adjustments considered necessary for a fair presentation of
the financial condition and results of operations of the
Partnership for the periods presented have been included. For
further information, refer to the consolidated financial
statements and footnotes thereto included in the Partnership's
annual report on Form 10-K for the year ended June 30, 1996.

<PAGE>
Item 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS
          OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Capital Resources

The purpose of the Partnership is to trade commodity interests;
as such, the Partnership does not have, nor does it expect to
make, any capital expenditures or have any capital assets that
are not operating capital or assets.  The Partnership's use of
assets is solely to provide necessary margin or premiums for, and
to pay any losses incurred in connection with, its trading
activity. Redemption of additional units in the future will
impact the amount of funds available for trading commodity
interests.  Redemptions of units during the quarter ended
December 31, 1996 reduced the amount of funds available by
$24,000.  

Liquidity

Most United States commodity exchanges limit fluctuations in
commodity futures contract 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 a price beyond the daily limit.  Once the price of a
futures contract has reached the daily limit for that day,
positions in that contract can neither be taken nor liquidated. 
Commodity futures prices have occasionally reached the daily
limit for several consecutive days with little or no trading. 
Similar occurrences could prevent the Partnership from promptly
liquidating unfavorable positions and subject the Partnership to
substantial losses which could exceed the margin initially
committed to such trades.  In addition, even if commodity futures
prices have not reached the daily limit, the Partnership may not
be able to execute futures trades at favorable prices if little
trading in such contracts is taking place.  Other than these
limitations on liquidity, which are inherent in the Partnership's
trading of commodity interests, the Partnership's assets are
highly liquid and are expected to remain so.  A portion of the
Fund's assets have been invested in certain United States
treasury obligations.  This investment is designed to provide
ultimate repayment of the investors' initial contributions. 
These securities are not used for trading purposes. 

Results of Operations  

Given the volatility of the markets in which the Partnership
trades, its quarterly results could fluctuate significantly and
are not indicative of the expected results for the fiscal year.

Trading operations were not as profitable at $130,000 and
$208,000 for the three-month and six-month periods ended December
31, 1996 as compared to the same periods in 1995 when the Fund
did well from its international bonds and financial positions and
its energy 
contracts.  During October and November,1996, the Fund
benefitted from its increased exposure in US financials and the
market appreciation following the election.  Throughout the six
months ended December 31, 1996, the Fund profited from its
positions in the international sector.  Natural gas and crude oil
positions also contributed to good performance as demands rose
during the last quarter of 1996 with prices peaking in December. 
These gains in energies were offset with losses in meats and
grains.  Sugar fluctuated substantially during this period
reaching its peak in early September then dropping until a slight
rebound in late November was followed by low prices in early
December and a resurgence to end the month.  Coffee also
fluctuated from September through December with prices increasing
the first half of November and then declining until the latter
half of December. 

During the six-month period ended December 31, 1996, the Fund
sold zero coupon United States Treasury securities in order to
maintain an approximate ratio of 20% trading assets to 80%
Guaranteed Yield Pool.  This resulted in lower revenues from the
Guaranteed Yield Pool as compared with both the quarter and
six-month periods a year ago. 


PART II.  OTHER INFORMATION

Item 6.   Reports on Form 8-K

No reports were filed on Form 8-K during the three months ended
December 31, 1996.

<PAGE>
                           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 Balanced Opportunity Fund Limited Partnership
                           (Registrant)

BY: Rodman & Renshaw Futures Management, Inc., General Partner



BY:
    /s/F. L. KIRBY                                     
      -----------------------------------
      F. L. Kirby       
      President 
     
Date:    February 13, 1997     




BY: /s/THOMAS G. PINOU                                     
      ----------------------------------
      Thomas G. Pinou                        
      Treasurer
    
Date:    February 13, 1997

<PAGE>
       
                            EXHIBIT INDEX

Exhibit 27     Article 5 Financial Data Schedule