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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



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FORM 10-Q



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|x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------------



For the quarterly period ended June 30, 2004



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: 333-115353



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THE BEACON FINANCIAL FUTURES FUND, L.P.

(Exact name of registrant as specified in charter)



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|                        |  |                                     
|----------------------- |  | ------------------------------------
|Delaware                |  | 20-0963234                          
|(State of Organization) |  | (IRS Employer Identification Number)



|                                                                                |  |           
|------------------------------------------------------------------------------- |  | ----------
|c/o Beacon Management Corporation (USA) 47 Hulfish Street Princeton, New Jersey |  | 08542     
|(Address of principal executive offices)                                        |  | (Zip Code)



(609) 924-5395

(Registrants telephone number, including area code)



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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, and (2) has been subject to such filing requirements for the past 90
days.    Yes ̈No  x



Total number of Pages: 12 plus exhibits



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PART I - FINANCIAL INFORMATION



ITEM 1. FINANCIAL STATEMENTS



The following financial statements of
The Beacon Financial Futures Fund, L.P. are included in Item 1:



|                     |  |                                                                                               |  |     
|-------------------- |  | --------------------------------------------------------------------------------------------- |  | ----
|                     |  |                                                                                               |  | Page
|Financial Statements |  |                                                                                              
|                     |  |                                                                                              
|                     |  | Statements of Financial Condition as of April 12, 2004 and June 30, 2004 (unaudited)          |  | 3   
|                     |  |                                                                                              
|                     |  | Notes to Statements of Financial Condition as of April 12, 2004 and June 30, 2004 (unaudited) |  | 4   



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The Beacon Financial Futures Fund, L.P.

Statements of Financial Condition

As of April 12, 2004 and June 30, 2004 (unaudited)



ASSETS



|                     |  |                |       |               |   |      
|-------------------- |  | -------------- | ----- | ------------- | - | -----
|                     |  | April 12, 2004 |       | June 30, 2004
|                     |  |                |       | (unaudited)  
|Current Assets       |  |                |       |               |   |      
|Cash                 |  | $              | 1,000 |               | $ | 2,379
|Total Current Assets |  | $              | 1,000 |               | $ | 2,379



LIABILITIES &
PARTNERS CAPITAL



|                                                |  |                |       |               |   |      
|----------------------------------------------- |  | -------------- | ----- | ------------- | - | -----
|                                                |  | April 12, 2004 |       | June 30, 2004
|                                                |  |                |       | (unaudited)  
|Liabilities                                     |  |                |       |               |   |      
|Payable to General Partner                      |  | $              | 0     |               | $ | 1,379
|Total Liabilities                               |  |                | 0     |               |   | 1,379
|Partners Capital                               |  |                |       |               |   |      
|General Partner Capital Contribution (one unit) |  |                | 1,000 |               |   | 1,000
|Total Partners Capital                         |  |                | 1,000 |               |   | 1,000
|                                                |  |                |       |               |   |      
|Total Liabilities & Partners Capital           |  | $              | 1,000 |               | $ | 2,379
|                                                |  |                |       |               |   |      



See Notes to Statements
of Financial Condition



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The Beacon Financial Futures Fund, L.P.



Notes to the Statements of Financial Condition as of April 12, 2004 and June 30, 2004 (unaudited)



Note 1 : Nature of Operations and Significant Accounting Policies



Nature of Operations:The Beacon Financial Futures Fund, L.P. (a Delaware limited partnership) (the Partnership) was organized on
April 6, 2004 to engage in speculative trading of a diversified portfolio of commodity interests including futures, options on futures and forward contracts.



Beacon Management Corporation, the general partner of the Partnership (the General Partner), is registered as a commodity pool operator and
commodity trading advisor. UBS Financial Services and Man Financial, Inc. will initially serve as the Partnerships clearing brokers.



The Partnership was initially capitalized by the General Partner on April 12, 2004 through the contribution of $1,000 in exchange for one unit of
Partnership interest. The Partnership has not commenced operations and has had no other transactions or changes in net assets. The General Partner and each limited partner will share in the profits and losses of the Partnership in proportion to
their respective ownership interests.



During the period from
April 6, 2004 (date of organization) to June 30, 2004, the General Partner deposited $24,670 with the Partnership for the Partnerships SEC and NASD registration fees. The fees actually incurred related to these registrations were $23,291 and
at June 30, 2004, $1,379 is due from the Partnership to the General Partner. As of June 30, 2004, the Partnership has admitted no additional partners, has not commenced operations and has no changes in partners capital.



Significant Accounting Policies:The following are the significant
accounting policies of the Partnership.



Use of Estimates -The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statement and accompanying notes.
Actual results could differ from those estimates.



Income
Recognition -Purchases and sales of futures, options on futures, and forward contracts will be recorded on the trade date, and open contracts will be reflected at market value with the change in unrealized gains (losses) from one period to the
next recorded in operations. Gains or losses are realized when contracts are liquidated. The specific contracts liquidated are determined by the clearing broker (in most cases on a FIFO basis).



Valuation -The majority of the Partnerships positions will be
exchange-traded futures contracts, which will be valued daily at settlement prices published by the exchanges. Any spot and forward foreign currency contracts held by the Partnership will also be valued at published daily settlement prices or at
dealers quotes.



Income Taxes -The Partnership is
a partnership for federal income tax purposes and Partnership income or loss will be includable in the income tax returns of the individual partner.



Organization and Offering Expenses:Organizational and Offering costs, estimated by the General Partner to be approximately $400,000, will be
absorbed by the Selling Group Manager (Uhlmann Price Securities, LLC) and the General Partner. The Selling Group Manager and the General Partner will not be reimbursed by the Partnership for such costs.



Note 2 : Unit Transactions



Limited partners may purchase units of the Partnership upon approval by the
General Partner at the net asset value, as of the last day of each month or on any other date as determined by the General Partner.



After holding the units for eleven months, limited partners may require the Partnership to redeem some or all of their units at the net asset value, as of
the last day of each month without a redemption charge. Any units redeemed before the holder has been a limited partner for six months will be assessed a redemption charge equal to 5 percent of the net asset value per unit on the date of such
redemption and units redeemed after six but within eleven months will be assessed a 4 percent redemption charge. Redemption charges will be paid by the redeeming limited partner to the General Partner.



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Note 3: Partnership Fees and Expenses



Brokerage Fee  The Partnership will pay the General Partner a fixed, monthly Brokerage Fee of 0.5417%, or 6.50%
annually, of the Partnerships monthly net asset value. Out of this Brokerage Fee, the General Partner will pay all clearing, execution and give-up, floor brokerage, exchange and National Futures Association fees, management fees, trading
advisory fees, selling agent compensation, and any other transaction costs of the Partnership. The General Partner will retain any balance amount.



Included in the Brokerage Fee are the following amounts that are earned by the General Partner and Uhlmann Price Securities, LLC, the Selling Group
Manager.



| |  | Management Fee  paid monthly to the General Partner at a rate of 1/12thof 1% of the Partnerships monthly net asset value.
| | - | ---------------------------------------------------------------------------------------------------------------------------



| |  | Trading Advisory Fee  paid monthly to the General Partner at a rate of 1/12thof 1% of the Partnerships monthly net asset value.
| | - | ---------------------------------------------------------------------------------------------------------------------------------



| |  | Selling Agent Commission  fee to compensate distributors of the units for the Partnership for costs incurred in the distribution of Partnership units. Such distribution costs
may include commissions, payments to sales agents, promotional materials, overhead allocations and interest.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The selling agent compensation will be paid monthly by the Partnership at a rate of 1/12thof 3% of the Partnerships monthly net asset value. For the first 12 months after the sale of such units, the selling agent compensation will be paid
monthly by the Partnership to the General Partner, as reimbursement to the General Partner for amounts advanced by the General Partner to the selling agent at the time of the sale of such units. Commencing with the 13thmonth after the sale of such units, the selling agent compensation will be paid to the selling agent.



Incentive Fees  The Partnership will make an incentive
allocation equal to 20% trading profits to the capital account of the General Partner each quarter. Trading profits means the net new profits (realized and unrealized), excluding interest income, decreased by monthly Brokerage Fees and other
operating expenses that are chargeable to the Partnerships net assets, with these trading profits and items of decrease determined from the end of the last period for which an incentive fee was earned. Extraordinary expenses of the
partnership, if any, are not deducted in determining trading profits.



If the Partnership makes an incentive allocation and the Partnership fails to earn new trading profits for any subsequent period, the General Partners capital account will retain the incentive allocation previously made. However, the
Partnership will not make any subsequent incentive allocation until these losses have been recovered and the Partnership has again earned new trading profits.



Other Operating Expenses  The Partnership will pay all of its own direct legal, accounting, administrative, filing, reporting and data
processing expenses.



In accordance with Section IV.C. of the
NASAA Registration of Commodity Pool Programs, the fees and expenses, including extraordinary expenses, of the Partnership may not exceed 14% of the Partnerships average monthly net assets, as of the last day of each month during the calendar
year. The General partner will bear any fees in excess of these limitations.



Note 4: Financial Instruments with Off-Balance-Sheet Risk



The Partnerships trading activities will involve derivative financial instruments, primarily futures, options on futures, and forward contracts, which have market and/or credit risk.



Market Risk: Market risk will arise primarily from changes in the
market value of financial instruments. Generally, the Partnerships exposure will be equal to the notional value of futures contracts purchased and unlimited



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on such contracts sold short. As both a buyer and seller of options on futures, the Partnership will pay or receive a
premium at the outset and then bears the risk of unfavorable market variations underlying the option. The risk of loss for purchased options on futures will be limited to the premiums paid; written or sold options on futures will expose the
Partnership to potentially unlimited liability.



Exposure to
market risk will be influenced by a number of factors, including the relationships between financial instruments, and the volatility and liquidity in the markets in which the financial instruments will be traded. In many cases, the use of financial
instruments may serve to modify or offset market risk associated with other transactions and, accordingly, may serve to decrease the Partnerships overall exposure to market risk. The Partnership will attempt to control its exposure to market
risk through various analytical monitoring techniques.



Credit Risk:Credit risk will arise primarily from the potential inability of counterparties to perform in accordance with the terms of a contract. The Partnerships exposure to credit risk associated with counterparty
nonperformance will be limited to the current cost to replace all contracts in which the Partnership has a gain. Exchange-traded financial instruments generally do not give rise to significant counterparty exposure due to the case settlement
procedures for daily market movements and the margin requirements of individual exchanges.



Concentration of Credit Risk:The Partnership will use Man Financial Inc. and UBS Financial Services as clearing brokers (Clearing Brokers). In the event these Clearing Brokers do not fulfill their
obligations, the Partnership may be exposed to risk. This risk of default depends in part on the creditworthiness of these Clearing Brokers. The Partnership will attempt to minimize this credit risk by monitoring the creditworthiness of the Clearing
Brokers.



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|ITEM 2. |  | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|------- |  | -------------------------------------------------------------------------------------



MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



INTRODUCTION



As of July 30, 2004, the partnership had sold no units of limited partnership interest. The initial offering period expires
upon the sale of 1,000 units. The continuing offering period commences upon termination of the initial offering period and will be ongoing.



CAPITAL RESOURCES



The partnership will raise additional capital only through the sale of units offered pursuant to the continuing offering and does not intend to raise any
capital through borrowing. Due to the nature of the partnerships business, it will make no capital expenditures and will have no capital assets which are not operating capital or assets.



LIQUIDITY



Most United States commodity exchanges limit fluctuations in futures contracts 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 prices beyond the daily limit. This may affect the partnerships ability to initiate new positions
or close existing ones or may prevent it from having orders executed. Futures prices have occasionally moved 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 futures prices have not moved 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.



Trading in forward contracts introduces a possible further impact on liquidity. Because such contracts are executed off exchange between
private parties, the time required to offset or unwind these positions may be greater than that for regulated instruments. This potential delay could be exacerbated to the extent a counterparty is not a United States person.



Other than these limitations on liquidity, which are inherent in the
partnerships futures trading operations, the partnerships assets are expected to be highly liquid.



RESULTS OF OPERATIONS



As of July 30, 2004, the partnership had not commenced trading operations.



OFF-BALANCE SHEET RISK



The term
off-balance sheet risk refers to an unrecorded potential liability that, even though it does not appear on the balance sheet, may result in future obligation or loss. The partnership intends to trade in futures and forward contracts and
may therefore become a party to financial instruments with elements of off-balance sheet market and credit risk. In entering into these contracts, there exists a market risk that such contracts may be significantly influenced by conditions, such as
interest rate volatility, resulting in such contracts being less valuable. If the markets should move against all of the futures interests positions of the partnership at the same time, and if the general partner was unable to offset such positions,
the partnership could experience substantial losses. The general partner will access daily positions and profit and loss summaries for the partnership and will employ various measures to monitor draw-downs, market diversification and leverage.



In addition to market risk, in entering into futures and
forward contracts there is a credit risk that a counterparty will not be able to meet its obligations to the partnership. The counterparty for futures contracts traded in the United States and on most foreign exchanges is the clearinghouse
associated with such exchange. In general, clearinghouses are backed by the corporate members of the clearinghouse who are required to share any financial



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burden resulting from the non-performance by one of their members and, as such, should significantly reduce this credit
risk. In cases where the clearinghouse is not backed by the clearing members, like some foreign exchanges, it is normally backed by a consortium of banks or other financial institutions.



CRITICAL ACCOUNTING POLICIES  VALUATION OF THE PARTNERSHIPS POSITIONS



The general partner believes that the accounting policies that will be most
critical to the partnerships financial condition and results of operations relate to the valuation of the partnerships positions. The majority of the partnerships positions will be exchange-traded futures contracts, which will be
valued daily at settlement prices published by the exchanges. Any spot and forward foreign currency contracts held by the partnership will also be valued at published daily settlement prices or at dealers quotes. Thus, the general partner
expects that under normal circumstances substantially all of the partnerships assets will be valued on a daily basis using objective measures.



QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK



INTRODUCTION



Past Results Not Necessarily Indicative of Future Performance



The partnership is a speculative commodity pool. The market sensitive instruments held by it are acquired for speculative trading purposes, and all or a
substantial amount of the partnerships assets are subject to the risk of trading loss. Unlike an operating company, the risk of market sensitive instruments is integral, not incidental, to the partnerships main line of business.



Market movements can produce frequent changes in the fair
market value of the partnerships open positions and, consequently, in its earnings and cash flow. The partnerships market risk is influenced by a wide variety of factors, including the level and volatility of exchange rates, interest
rates, equity price levels, the market value of financial instruments and contracts, the diversification effects among the partnerships open positions and the liquidity of the markets in which it trades.



The partnership may rapidly acquire and liquidate both long and short
positions in a wide range of different markets. Consequently, it is not possible to predict how a particular future market scenario will affect performance, and the partnerships past performance is not necessarily indicative of its future
results.



Capital at Risk is a measure of the maximum amount
which the partnership could reasonably be expected to lose in a given market sector. However, the inherent uncertainty of the partnerships speculative trading and the recurrence in the markets traded by the partnership of market movements far
exceeding expectations could result in actual trading or non-trading losses far beyond the indicated Capital at Risk or the partnerships experience to date (i.e., risk of ruin). In light of this, as well as the risks and
uncertainties intrinsic to all future projections, the inclusion of the quantification included in this section should not be considered to constitute any assurance or representation that the partnerships losses in any market sector will be
limited to Capital at Risk or by the partnerships attempts to manage its market risk.



Standard of Materiality



Materiality as used in this section, Quantitative and Qualitative Disclosures about Market Risk, is based on an assessment of reasonably possible market movements and the potential losses caused by such movements, taking into
account the leverage, and multiplier features of the partnerships market sensitive instruments.



QUANTIFYING THE PARTNERSHIPS TRADING CAPITAL AT RISK



Quantitative Forward-Looking Statements



The following quantitative disclosures regarding the partnerships market risk exposures contain forward-looking statements within the meaning of the safe harbor from civil liability provided for such
statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). All quantitative disclosures in this section are deemed to be
forward-looking statements for purposes of the safe harbor, except for statements of historical fact (such as the dollar amount of maintenance margin required for market risk sensitive instruments held at the end of the reporting period).



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The partnerships risk exposure in the various market sectors traded by the partnership is
quantified below in terms of Capital at Risk. Due to the partnerships mark-to-market accounting, any loss in the fair value of the partnerships open positions is directly reflected in the partnerships earnings (realized or
unrealized).



Exchange maintenance margin requirements are
expected to be used by the partnership as the measure of its Capital at Risk. Maintenance margin requirements are set by exchanges to equal or exceed the maximum losses reasonably expected to be incurred in the fair value of any given contract in
95%-99% of any one-day intervals. The maintenance margin levels are established by dealers and exchanges using historical price studies as well as an assessment of current market volatility and economic fundamentals to provide a probabilistic
estimate of the maximum expected near-term one-day price fluctuation.



In the case of market sensitive instruments which are not exchange-traded (which includes currencies and some energy products and metals in the case of the partnership), the margin requirements for the equivalent futures positions have been
used as Capital at Risk. In those cases in which a futures-equivalent margin is not available, dealers margins have been used.



In the case of contracts denominated in foreign currencies, the Value at Risk figures include foreign margin amounts converted into U.S. Dollars with an
incremental adjustment to reflect the exchange rate risk inherent to the Dollar-based partnership in expressing Capital at Risk in a functional currency other than Dollars.



In quantifying the partnerships Capital at Risk, 100% positive correlation in the different positions held in each
market risk category has been assumed. Consequently, the margin requirements applicable to the open contracts have simply been aggregated to determine each trading categorys aggregate Capital at Risk. The diversification effects resulting from
the fact that the partnerships positions are rarely, if ever, 100% positively correlated have not been taken into account.



THE PARTNERSHIPS TRADING CAPITAL AT RISK IN DIFFERENT MARKET SECTORS



Since the partnership has not commenced operations as of the date of the Prospectus, it has no open positions susceptible to
a Capital at Risk analysis.



MATERIAL LIMITATIONS ON CAPITAL AT RISK AS AN
ASSESSMENT OF MARKET RISK



The face value of the market
sector instruments held by the partnership may typically be many times the applicable maintenance margin requirement (maintenance margin requirements generally ranging between approximately 1% and 10% of contract face value) as well as many times
the capitalization of the partnership. The magnitude of the partnerships open positions could create a risk of ruin not typically found in most other investment vehicles. Because of the size of its positions, certain market
conditions  unusual, but historically recurring from time to time  could cause the partnership to incur severe losses over a short period of time. The Capital at Risk tables  as well as the past performance of the partnership
 give no indication of this risk of ruin.



NON-TRADING
RISK



The partnership may experience non-trading market
risk on any foreign cash balances not needed for margin. However, these balances (as well as the market risk they represent) are expected to be immaterial. The partnership also may have non-trading market risk as a result of investing in U.S.
Treasury Bills. The market risk represented by these investments is expected to be immaterial.



QUALITATIVE DISCLOSURES REGARDING PRIMARY TRADING RISK EXPOSURES



The following qualitative disclosures regarding the partnerships market risk exposures  except for (i) those disclosures that are statements
of historical fact and (ii) the descriptions of how the partnership manages its primary market risk exposures  constitute forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities
Exchange Act. The partnerships primary market risk exposures as well as the strategies used and to be used by the general partner for managing such exposures are subject to numerous



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uncertainties, contingencies and risks, any one of which could cause the actual results of the partnerships risk
controls to differ materially from the objectives of such strategies. Government interventions, defaults and expropriations, illiquid markets, the emergence of dominant fundamental factors, political upheavals, changes in historical price
relationships, an influx of new market participants, increased regulation and many other factors could result in material losses as well as in material changes to the risk exposures and the risk management strategies of the partnership. There can be
no assurance that the partnerships market exposure and/or risk management strategies will not change materially or that any such strategies will be effective in either the short- or long-term. Investors must be prepared to lose all or
substantially all of their investment in the partnership.



Since the partnership had not commenced operations as of the date of this Prospectus, it had no primary trading risk exposures as of such date.



QUALITATIVE DISCLOSURES REGARDING NON-TRADING RISK EXPOSURE



General



The partnership is unaware of any (i) anticipated known demands, commitments or capital expenditures; (ii) material trends, favorable or unfavorable, in its capital resources; or (iii) trends or uncertainties that
will have a material effect on operations. From time to time, certain regulatory agencies have proposed increased margin requirements on futures contracts. Because the partnership generally will use a small percentage of assets as margin, the
partnership does not believe that any increase in margin requirements, as proposed, will have a material effect on the partnerships operations.



QUALITATIVE DISCLOSURES REGARDING MEANS OF MANAGING RISK EXPOSURE



The means by which the partnership attempts to manage the risk of the partnerships open positions is essentially the same in all market categories
traded. The general partner applies risk management policies to trading which generally are designed to limit the total exposure that may be taken per risk unit of assets under management. In addition, the general partner follows
diversification guidelines (often formulated in terms of the balanced volatility between markets and correlated groups), as well as adopting non-binding stop-loss points for each of the markets in which the partnership trades.



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PART II-OTHER INFORMATION



Item 1. Legal Proceedings.



None



Item 2. Changes in Securities



None



Item 3. Defaults upon Senior Securities



Not applicable.



Item 4. Submissions of Matters to a Vote of Security Holders.



None



Item 5. Other Information



None



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



None



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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 on August 13, 2004.



THE BEACON FINANCIAL FUTURES FUND, L.P.(Registrant)By:

Beacon Management Corporation (USA)General PartnerBy:

/s/ Mark S. StrattonMark S. StrattonPresident




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EXHIBIT INDEX



|              |  |                                                                                                   
|------------- |  | --------------------------------------------------------------------------------------------------
|ExhibitNumber |  | Description of Document                                                                           
|31.01         |  | Certification by Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|              | 
|32.01         |  | Certification by Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|              | 
|31.02         |  | Certification by Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|              | 
|32.02         |  | Certification by Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002



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