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                                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, 1997 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
--------------------------------------------------------------------------------
(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
--------------------------------------------------------------------------------
            (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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              The Balanced Opportunity Fund Limited Partnership
              -------------------------------------------------

<TABLE>
<CAPTION>

                                    INDEX

                                                                           Page
                                                                           ----
<S>      <C>                                                               <C>
PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements -


 Consolidated Statements of Financial Condition as of
 December 31, 1997 (unaudited) and June 30, 1997                             3

 Consolidated Statements of Operations (unaudited) for the
 three-month and six-month periods ended December 31, 1997                   
 and 1996                                                                    4

 Consolidated Statements of Changes in Partners' Capital for the
 six-month period ended December 31, 1997 (unaudited) and the
 year ended June 30, 1997                                                    5


 Note to Unaudited Consolidated Financial Statements --
 December 31, 1997                                                           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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PART I.  FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS

              THE BALANCED OPPORTUNITY FUND LIMITED PARTNERSHIP
               CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

                                      
<TABLE>
<CAPTION>

                                                   DECEMBER 31,
                                                      1997            JUNE 30,
                                                   (UNAUDITED)          1997
                                                  ------------        -------
<S>                                               <C>                 <C>

ASSETS

Equity in commodity futures trading accounts:
   Cash                                           $  754,000          $  714,000
   Net unrealized gain/(loss) on open contracts       12,000             103,000
                                                  ----------          ----------

          Total equity in commodity futures
          trading accounts                           766,000             817,000

Guaranteed yield pool, at market                   2,655,000           2,783,000


Illinois replacement tax receivable                                        1,000

Other receivables                                      2,000               4,000
                                                  ----------          ----------

          Total assets                            $3,423,000          $3,605,000
                                                  ==========          ==========


LIABILITIES AND PARTNERS' CAPITAL

Liabilities:
   Accrued administrative expenses                $   23,000          $   20,000
   Accrued commissions and fees                       25,000              24,000
                                                  ----------          ----------
                                                   
          Total liabilities                           48,000              44,000
                                                  ----------          ----------

Partners' capital
   Limited partners (units outstanding: 1,732.8520
                     and 1,967.8520)               3,172,000           3,371,000
   General partner (units outstanding:  111.1143)    203,000             190,000
                                                  ----------          ----------

          Total partners' capital                  3,375,000           3,561,000
                                                  ----------          ----------

TOTAL LIABILITIES AND PARTNERS' CAPITAL           $3,423,000          $3,605,000
                                                  ==========          ==========

NET ASSET VALUE PER UNIT                          $ 1,830.50          $ 1,712.76
                                                  ==========          ==========
</TABLE>



        See note to the unaudited consolidated financial statements.


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<PAGE>   4



              THE BALANCED OPPORTUNITY FUND LIMITED PARTNERSHIP
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (UNAUDITED)



<TABLE>
<CAPTION>

                                 THREE MONTHS ENDED           SIX MONTHS ENDED
                                    DECEMBER 31,                DECEMBER 31,
                                        1997       1996       1997        1996
                                        ----       ----       ----        ----
<S>                                 <C>          <C>        <C>        <C>
REVENUES:
  Trading profit/(loss):
     Realized                       $(22,000)    $ 191,000  $270,000   $177,000
     Change in unrealized              8,000       (61,000)  (92,000)    30,000
 Foreign currency gain/(loss)         (1,000)            0    (3,000)     1,000
                                     --------     ---------  --------  --------

     Total trading profit and
       foreign currency gain         (15,000)      130,000   175,000    208,000

 Guaranteed yield pool:
  Accrued interest                    56,000       200,000   102,000    396,000
  Unrealized market value gain/(loss) 33,000      (132,000)   86,000   (253,000)
                                     --------     ---------  --------  --------

     Total guaranteed yield pool
       revenue                        89,000        68,000   188,000    143,000

Interest income                        8,000         5,000    17,000      8,000
                                     --------     ---------  --------  --------

          TOTAL REVENUES              82,000       203,000   380,000    359,000
                                     --------     ---------  --------  --------

EXPENSES:

 Brokerage commissions                34,000        59,000    71,000    119,000
 Advisory fees                         8,000        14,000    17,000     28,000
 Administrative expenses              32,000        15,000    57,000     30,000
                                     --------     ---------  --------  --------
     TOTAL EXPENSES                   74,000        88,000   145,000    177,000
                                     --------     ---------  --------  --------

NET INCOME/(LOSS)                    $ 8,000      $115,000  $235,000   $182,000
                                     ========     =========  ========  ========

NET INCOME/(LOSS) ALLOCATED TO:
          Limited partners           $ 8,000      $111,000  $222,000   $176,000
                                     ========     =========  ========  ========
          General partner            $     0      $  4,000  $ 13,000   $  6,000
                                     ========     =========  ========  ========
NET INCOME/(LOSS) PER UNIT
   OUTSTANDING FOR ENTIRE PERIOD     $  4.15      $  33.12  $ 117.74   $  52.47
                                     ========     =========  ========  ========
</TABLE>


         See note to the unaudited consolidated financial statements.


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<PAGE>   5




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



<TABLE>
<CAPTION>

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



PARTNERS' CAPITAL
   June 30, 1996         3,503.5645       $ 5,305,000    $174,000   $ 5,479,000

Redemptions             (1,424.5982)       (2,356,000)               (2,356,000)


Net income/(loss)                             422,000      16,000       438,000
                         ----------        ----------     -------    ----------

PARTNERS' CAPITAL
   June 30, 1997         2,078.9663         3,371,000     190,000     3,561,000

Redemptions (Unaudited)   (235.0000)         (421,000)                 (421,000)


Net income (Unaudited)                        222,000      13,000       235,000
                         ----------        ----------     -------    ----------

PARTNERS' CAPITAL
   December 31, 1997
   (unaudited)           1,843.9663       $ 3,172,000    $203,000   $ 3,375,000
                         ==========        ==========     =======    ==========
</TABLE>


         See note to the unaudited consolidated financial statements.



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THE BALANCED OPPORTUNITY FUND LIMITED PARTNERSHIP
NOTE TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 1997



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, 1997.










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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.
The Net Asset Values are calculated and equity reports are reviewed by the
General Partner on a daily basis to monitor the trading manager's activity to
minimize the market and credit risks of the Fund.  The General Partner also
monitors the trading manager's compliance with investment objectives as set
forth in the prospectus.  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, 1997 reduced the
amount of funds available by $284,000.

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.  The counterparty for all exchange-traded contracts through March 24, 1997
was ED&F Man International, Inc. and Rand Financial Services, Inc. after that
date.  For over-the-counter contracts, the counterparty was ED&F Man Capital
Inc. through March 24, 1997 and Rand Financial Services, Inc. thereafter.  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.



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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.

In the three month and six month periods ending December 31, 1997, the Fund
experienced trading profits of ($15,000) and $175,000 respectively compared to
$130,000 and $208,000 for the same periods in 1996.  The quarter commenced with
the seasonal uneasiness of October giving way to extreme market volatility,
partially as a result of the chaos in the markets overseas. The Fund's     
Net Asset Value remained relatively stable due mostly to positions in the fixed
income sector benefiting from a "flight to quality" as the Fund attempted to
reduce its exposure in the volatile equity markets. In the currency sector,
Fund performance was marginally profitable throughtout the quarter as the U.S.
Dollar continued to strenghten against most major and minor currrencies.        
Overall, the Fund's Net Asset Value increased slightly during the quarter,
demonstrating once again the importance of global diversification and prudent
asset allocation in these volatile market conditions.

In the three month and six month periods ending December 31, 1997, the total
guaranteed yield pool revenue was $89,000 and $188,000  respectively compared
to $68,000 and $143,000 for the same periods in 1996.

At December 31, 1997 there were no material credit risk exposure exceeding 10%
total assets for either exchange-traded or over-the-counter contracts.


Brokerage commissions and advisory fees, which are based on the net assets of
the Fund, declined as a direct result of redemptions.

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, 1997.




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                                  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 and a Director

Date:  February 11, 1998




BY: /s/ Thomas G. Pinou
    -----------------------------
    Thomas G. Pinou
    Treasurer and a Director

Date:  February 11, 1998




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