UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2011
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: 000-51836
ROGERS INTERNATIONAL RAW MATERIALS FUND, L.P.
(Exact name of registrant as specified in charter)
Illinois | 36-4368292 | |
(State of Organization) | (IRS Employer Identification Number) | |
c/o Beeland Management Company, L.L.C. General Partner 141 West Jackson Boulevard Suite 1340A Chicago, Illinois |
60604 | |
(Address of principal executive offices) | (Zip Code) |
(312) 264-4375
(Registrants 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, and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of large accelerated filer, accelerated filer, and smaller reporting company in Rule 12b-2 of the Exchange Act.
Large accelerated filer | ¨ | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ | Smaller reporting company | x |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x
PART IFINANCIAL INFORMATION
ITEM 1. | FINANCIAL STATEMENTS |
The following financial statements of Rogers International Raw Materials Fund, L.P. are included in Item 1:
Page | ||
Financial Statements |
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3 | ||
4-5 | ||
6 | ||
7 | ||
8-17 |
2
Rogers International Raw Materials Fund, L.P.
Statements of Financial Condition as of September 30, 2011 (Unaudited) and December 31, 2010 (Audited)
September 30, 2011 | December 31, 2010 | |||||||
ASSETS |
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Equity in broker trading accounts: |
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U.S. Government securities, at fair value |
$ | 30,064,037 | $ | 29,082,108 | ||||
Cash at brokers |
9,071,061 | 8,027,725 | ||||||
Unrealized gain (loss) on open futures contracts, net |
(4,428,766 | ) | 3,125,524 | |||||
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Total equity in brokers trading accounts |
34,706,332 | 40,235,357 | ||||||
Cash and cash equivalents |
5,055,745 | 11,189,077 | ||||||
Interest receivable |
| 553 | ||||||
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Total assets |
$ | 39,762,077 | $ | 51,424,987 | ||||
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LIABILITIES |
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Brokerage commissions payable |
$ | 4,356 | $ | 4,944 | ||||
Accrued management fees General Partner |
37,399 | 37,973 | ||||||
Administrative and other fees payable |
149,611 | 466,818 | ||||||
Subscriptions received in advance |
7,000 | 56,581 | ||||||
Withdrawals payable |
1,861,492 | 918,830 | ||||||
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Total liabilities |
2,059,858 | 1,485,146 | ||||||
PARTNERS CAPITAL (NET ASSETS) |
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Partners capital (net assets) |
37,702,219 | 49,939,841 | ||||||
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Total liabilities and partners capital (net assets) |
$ | 39,762,077 | $ | 51,424,987 | ||||
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See accompanying notes to the financial statements.
3
Rogers International Raw Materials Fund, L.P.
Condensed Schedule of Investments as of September 30, 2011 (Unaudited)
U.S. Government securities:
(total cost - $30,042,061)
Fair Value | Percent of Partners Capital (Net Assets) |
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U.S. Treasury Bills due 10/20/2011 at 0.22%, principal amount $1,000,000 |
$ | 999,881 | 2.65 | % | ||||
U.S. Treasury Bills due 11/17/2011 at 0.21%, principal amount $2,000,000 |
1,999,451 | 5.30 | ||||||
U.S. Treasury Bills due 12/15/2011 at 0.24%, principal amount $2,500,000 |
2,498,760 | 6.63 | ||||||
U.S. Treasury Bills due 2/9/2012 at 0.19%, principal amount $2,510,000 |
2,508,278 | 6.65 | ||||||
U.S. Treasury Bills due 3/8/2012 at 0.26%, principal amount $2,330,000 |
2,327,325 | 6.17 | ||||||
U.S. Treasury Bills due 4/5/2012 at 0.20%, principal amount $3,300,000 |
3,296,617 | 8.74 | ||||||
U.S. Treasury Bills due 5/3/2012 at 0.08%, principal amount $4,070,000 |
4,068,006 | 10.79 | ||||||
U.S. Treasury Bills due 5/31/2012 at 0.18%, principal amount $3,678,000 |
3,673,529 | 9.74 | ||||||
U.S. Treasury Bills due 6/28/2012 at 0.17%, principal amount $3,300,000 |
3,295,887 | 8.74 | ||||||
U.S. Treasury Bills due 7/26/2012 at 0.06%, principal amount $2,000,00 |
1,999,018 | 5.30 | ||||||
U.S. Treasury Bills due 8/23/2012 at 0.09%, principal amount $3,400,000 |
3,397,285 | 9.01 | ||||||
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$ | 30,064,037 | 79.72 | % | |||||
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Unrealized Gain (Loss) on Open Long Futures Contracts |
Percent of Partners Capital (Net Assets) |
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Futures contracts: |
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U.S. Futures Positions |
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Agricultural |
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33 December 2011 NYC Cotton Contracts |
(508,695 | ) | -1.35 | % | ||||
Other* |
(1,068,442 | ) | (2.83 | ) | ||||
Metals* |
(310,790 | ) | (0.82 | ) | ||||
Energy* |
(858,022 | ) | (2.28 | ) | ||||
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Total U.S. Futures Positions |
(2,745,949 | ) | (7.28 | ) | ||||
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Foreign Futures Positions |
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Agricultural* |
(37,107 | ) | (0.10 | ) | ||||
Metals |
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13 November 2011 LME Copper Contracts |
(418,538 | ) | (1.11 | ) | ||||
Other* |
(1,227,172 | ) | (3.25 | ) | ||||
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Total Foreign Futures Positions |
(1,682,817 | ) | (4.46 | ) | ||||
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Total Futures Contracts |
$ | (4,428,766 | ) | -11.74 | % | |||
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* | No individual futures contract position constitutes greater than 1 percent of Partners Capital (Net Assets). Accordingly, the number of contracts and expiration dates are not presented. |
See accompanying notes to financial statements.
4
Rogers International Raw Materials Fund, L.P.
Condensed Schedule of Investments as of December 31, 2010 (Audited)
U.S. Government securities:
(total cost - $29,077,799)
Fair Value | Percent of Partners Capital (Net Assets) |
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U.S. Treasury Bills due 1/13/2011 at 0.08%, principal amount $2,800,000 |
$ | 2,799,922 | 5.61 | % | ||||
U.S. Treasury Bills due 1/27/2011 at 0.11%, principal amount $5,500,000 |
5,499,586 | 11.01 | ||||||
U.S. Treasury Bills due 2/24/2011 at 0.12%, principal amount $2,300,000 |
2,299,591 | 4.60 | ||||||
U.S. Treasury Bills due 4/21/2011 at 0.16%, principal amount $3,300,000 |
3,298,406 | 6.61 | ||||||
U.S. Treasury Bills due 5/26/2011 at 0.18%, principal amount $3,500,000 |
3,497,545 | 7.00 | ||||||
U.S. Treasury Bills due 9/30/2011 at 0.17%, principal amount $3,300,000 |
3,297,239 | 6.60 | ||||||
U.S. Treasury Bills due 7/28/2011 at 0.17%, principal amount $3,400,000 |
3,396,700 | 6.80 | ||||||
U.S. Treasury Bills due 8/25/2011 at 0.18%, principal amount $2,000,000 |
1,997,712 | 4.00 | ||||||
U.S. Treasury Bills due 9/22/2011 at 0.20%, principal amount $2,000,000 |
1,997,144 | 4.00 | ||||||
U.S. Treasury Bills due 10/20/2011 at 0.22%, principal amount $1,000,000 |
998,263 | 2.00 | ||||||
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$ | 29,082,108 | 58.23 | % | |||||
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Unrealized Gain (Loss) on Open Long Futures Contracts |
Percent of Partners Capital (Net Assets) |
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Futures contracts*: |
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U.S. Futures Positions |
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Agricultural |
$ | 1,719,954 | 3.45 | % | ||||
Metals |
361,250 | 0.72 | ||||||
Energy |
479,818 | 0.96 | ||||||
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Total U.S. Futures Positions |
2,561,022 | 5.13 | ||||||
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Foreign Futures Positions |
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Agricultural |
79,167 | 0.16 | ||||||
Metals |
485,335 | 0.97 | ||||||
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Total Foreign Futures Positions |
564,502 | 1.13 | ||||||
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Total Futures Contracts |
$ | 3,125,524 | 6.26 | % | ||||
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* | No individual futures contract position constitutes greater than 1 percent of Partners Capital (Net Assets). Accordingly, the number of contracts and expiration dates are not presented. |
See accompanying notes to financial statements.
5
Rogers International Raw Materials Fund, L.P.
Statements of Operations for the Three and Nine Months Ended September 30, 2011 and September 30, 2010 (Unaudited)
Three Months Ended September 30, 2011 |
Three Months Ended September 30, 2010 |
Nine Months Ended September 30, 2011 |
Nine Months Ended September 30, 2010 |
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Net trading gains (losses): |
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Realized |
$ | (2,846,170 | ) | $ | 2,257,092 | $ | 3,116,333 | $ | (608,590 | ) | ||||||
Change in unrealized |
(2,478,752 | ) | 3,516,540 | (7,554,290 | ) | 1,429,519 | ||||||||||
Commissions |
(18,026 | ) | (21,709 | ) | (64,471 | ) | (76,652 | ) | ||||||||
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(5,342,948 | ) | 5,751,923 | (4,502,428 | ) | 744,277 | |||||||||||
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Investment income: |
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Interest income |
16,484 | 18,329 | 54,048 | 45,219 | ||||||||||||
Other income |
420,046 | | 536,778 | 282,650 | ||||||||||||
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436,530 | 18,329 | 590,826 | 327,869 | |||||||||||||
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Expenses: |
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Management fees General Partner |
112,950 | 107,691 | 367,520 | 347,375 | ||||||||||||
Administrative fees and other expenses |
219,126 | 191,697 | 659,843 | 599,950 | ||||||||||||
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332,076 | 299,388 | 1,027,363 | 947,325 | |||||||||||||
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Net investment gain (loss) |
104,454 | (281,059 | ) | (436,537 | ) | (619,456 | ) | |||||||||
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Net income (loss) |
$ | (5,238,494 | ) | $ | 5,470,864 | $ | (4,938,965 | ) | $ | 124,821 | ||||||
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Net increase (decrease) in NAV per GP and LP unit: |
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General Partner |
$ | (22.98 | ) | $ | 19.30 | $ | (23.02 | ) | $ | 1.73 | ||||||
Limited Partners-Series A |
$ | (22.98 | ) | $ | 19.30 | $ | (23.02 | ) | $ | 1.73 | ||||||
Limited Partners-Series B |
$ | (24.42 | ) | $ | | $ | (24.98 | ) | $ | | ||||||
Net income (loss) per General and Limited Partners (based on weighted average number of units outstanding during the period): |
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General Partner |
$ | (92,703 | ) | $ | 77,900 | $ | (92,871 | ) | $ | 7,002 | ||||||
Limited Partners-Series A |
(5,043,735 | ) | 5,392,964 | (4,720,875 | ) | 117,819 | ||||||||||
Limited Partners-Series B |
(102,056 | ) | | (125,219 | ) | | ||||||||||
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$ | (5,238,494 | ) | $ | 5,470,864 | $ | (4,938,965 | ) | $ | 124,821 | |||||||
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See accompanying notes to financial statements.
6
Rogers International Raw Materials Fund, L.P.
Statements of Changes in Partners Capital (Net Assets) for the Nine Months Ended September 30, 2011 and September 30, 2010 (Unaudited)
General Partner | Limited Partners | |||||||||||||||||||||||||||||||
Series A | Series B | |||||||||||||||||||||||||||||||
Number of Units |
Dollars | Number of Units |
Dollars | Number of Units |
Dollars | Total | Total | |||||||||||||||||||||||||
Partners capital (net assets), December 31, 2010 |
4,034 | $ | 770,838 | 255,561 | $ | 48,829,926 | 1,780 | $ | 339,077 | $ | 49,169,003 | $ | 49,939,841 | |||||||||||||||||||
Contributions |
| | | | 2,440 | 487,082 | 487,082 | 487,082 | ||||||||||||||||||||||||
Net income (loss) |
| (92,871 | ) | | (4,720,875 | ) | | (125,219 | ) | (4,846,094 | ) | (4,938,965 | ) | |||||||||||||||||||
Withdrawals |
| | (39,185 | ) | (7,747,209 | ) | (218 | ) | (38,530 | ) | (7,785,739 | ) | (7,785,739 | ) | ||||||||||||||||||
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Partners capital (net assets), September 30, 2011 |
4,034 | $ | 677,967 | 216,376 | $ | 36,361,842 | 4,002 | $ | 662,410 | $ | 37,024,252 | $ | 37,702,219 | |||||||||||||||||||
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Partners capital (net assets), December 31, 2009 |
4,034 | $ | 660,293 | 314,149 | $ | 51,416,343 | | $ | | $ | 51,416,343 | $ | 52,076,636 | |||||||||||||||||||
Contributions |
| | | | | | | | ||||||||||||||||||||||||
Net income |
| 7,002 | | 117,819 | | | 117,819 | 124,821 | ||||||||||||||||||||||||
Withdrawals |
| | (46,488 | ) | (7,261,994 | ) | | | (7,261,994 | ) | (7,261,994 | ) | ||||||||||||||||||||
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Partners capital (net assets), September 30, 2010 |
4,034 | $ | 667,295 | 267,661 | $ | 44,272,168 | | $ | | $ | 44,272,168 | $ | 44,939,463 | |||||||||||||||||||
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30-Sep-11 | 30-Sep-10 | |||||||
Per unit data |
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Net asset value Series A |
$ | 168.05 | $ | 165.40 | ||||
Net asset value Series B |
$ | 165.46 | $ | | ||||
Net asset value General |
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Partner |
$ | 168.05 | $ | 165.40 |
7
Rogers International Raw Materials Fund, L.P.
Notes to the Financial Statements (Unaudited)
Note 1. Significant Accounting Policies:
Nature of Business and Organization: Rogers International Raw Materials Fund, L.P. (the Partnership) is an Illinois Limited Partnership that was established in May 2000. The Partnership trades a portfolio primarily of commodity futures and forward contracts, principally on recognized exchanges. The Partnership may also purchase contracts in the over the counter marketplace under certain circumstances. The Partnership invests and trades exclusively on the long side of the market. The Partnerships investment strategy is designed to replicate the Rogers International Commodity Index ® (the Index) and positions are rebalanced monthly to maintain the Indexs relative weightings. James B. Rogers designed the Index.
The Partnership commenced trading during November 2001 with assets raised from the offering of its original units of limited partnership interest, now referred to as Series A units, and offered Series A units through October 2005. The Partnership began accepting contributions for Series B units in November 2010. Series A units and Series B units are identical with respect to their participation in the profits and losses of the Partnership; however, Series B units do not participate in any Partnership expenses or recoveries related to the bankruptcy of Refco Inc. and its affiliates. The Partnerships General Partner and commodity pool operator is Beeland Management Company, L.L.C. (the General Partner).
Accounting Policies: The Partnership follows U.S. Generally Accepted Accounting Principles (GAAP), as established by the Financial Accounting Standards Board (FASB), to ensure consistent reporting of financial condition and results of operation.
Net Assets: The valuation of net assets includes open commodity futures contracts owned by the Partnership, if any, at the end of the period. The unrealized gain or loss on these contracts has been calculated based on closing prices on the last business day of each month. Net asset value is determined by subtracting liabilities from assets, which also equals partners capital.
Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents: Cash and cash equivalents include highly liquid instruments with original maturities of three months or less at the date of acquisition. Cash and cash equivalents represent amounts on deposit with a broker to facilitate payment of expenses and partner withdrawals.
Fair Value of Financial Instruments: Securities and derivative financial instruments are recorded at fair value.
Deposits with Brokers: The Partnership deposits assets with brokers subject to Commodity Futures Trading Commission regulations and various exchange and broker requirements. Margin requirements are satisfied by the deposit of cash with such brokers. The Partnership earns interest income on its assets deposited with the brokers.
Revenue Recognition: Futures and exchange traded forward contracts are recorded on a trade date basis and realized gains or losses are recognized when contracts are liquidated. Unrealized gains or losses on open contracts (the difference between contract trade price and market price) are reported in the statements of financial condition as a net unrealized gain or loss, as there exists a right of offset of unrealized gains or losses. Any change in net unrealized gain or loss from the preceding period is reported in the statement of operations.
Interest Income Recognition: The Partnership records interest income on the accrual basis.
8
Rogers International Raw Materials Fund, L.P.
Notes to the Financial Statements (Unaudited)
Note 1. Significant Accounting Policies (Continued):
Foreign Currency Translation: Foreign currency is translated into U.S. dollars at the exchange rate published by the carrying broker or futures commission merchant on the last business day of each month. The Partnership does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized trading gains or losses.
Ongoing Offering Expenses: Ongoing offering expenses are accrued on an ongoing basis and charged to expense as incurred.
Income Taxes: No provision for income taxes has been made in these financial statements as each partner is individually responsible for reporting income or loss based on its respective share of the Partnerships income and expenses as reported for income tax purposes.
The Partnership is generally not subject to examination by U.S. federal or state taxing authorities for tax years before 2007. The Partnership has no material uncertain tax positions, and accordingly, has not recorded a liability for the payment of interest or penalties through September 30, 2011.
Profit and Loss Allocation: Profits and losses of the Partnership are allocated by series based on the number of units held.
Withdrawals Payable: Withdrawals approved by the General Partner prior to month-end with a fixed effective date and fixed amount are recorded as withdrawals payable as of month-end (See Note 5).
Statement of Cash Flows: The Partnership has elected not to provide a statement of cash flows as permitted by GAAP as all of the following conditions have been met:
-During the year, substantially all of the Partnerships investments were highly liquid;
-Substantially all of the Partnerships investments are carried at fair value;
-The Partnership had little or no debt during the year;
-The Partnerships financial statements include a statement of changes in partners capital (net assets).
Recent Account Pronouncements: In May 2011, the FASB issued ASU No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (ASU 2011-04). This ASU represents the converged guidance of the FASB and the IASB (the Boards) on fair value measurement. The collective efforts of the Boards and their staffs, reflected in ASU 2011-04, have resulted in common requirements for measuring fair value and for disclosing information about fair value measurements, including a consistent meaning of the term fair value and enhanced disclosure requirements for investments that do not have readily determinable fair values. The Boards have concluded the common requirements will result in greater comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with U.S. GAAP and IFRS. This amendment is effective for periods beginning after December 15, 2011. The Partnership is currently evaluating the impact of ASU 2011-04 on future financial statements.
9
Rogers International Raw Materials Fund, L.P.
Notes to the Financial Statements (Unaudited)
Note 2. Fair Value Measurements:
As described in Note 1, the Partnership records its investments at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Partnership utilizes valuation techniques to maximize the use of observable inputs and minimize the use of unobservable inputs. Inputs are broadly defined as assumptions market participants would use in pricing an asset or liability. Assets and liabilities recorded at fair value are categorized within the fair value hierarchy based upon the level of judgment associated with the inputs used to measure their value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:
Level 1. Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
Level 2. Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly; and fair value is determined through the use of models or other valuation methodologies.
Level 3. Inputs are unobservable for the asset or liability and include situations where there is little, if any, market activity for the asset or liability. The inputs into the determination of fair value are based upon the best information in the circumstances and may require significant management judgment or estimation.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investments level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Partnerships assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. The following section describes the valuation techniques used by the Partnership to measure different financial instruments at fair value and includes the level within the fair value hierarchy in which the financial instrument is categorized.
The fair values of exchange traded futures contracts are based upon exchange settlement prices. Money market funds are valued using quoted market prices. U.S. Government securities are stated at cost plus accrued interest, which approximates fair value based on quoted prices for identical assets in an active market. These financial instruments are classified as Level 1 of the fair value hierarchy.
10
Rogers International Raw Materials Fund, L.P.
Notes to the Financial Statements (Unaudited)
Note 2. Fair Value Measurements (Continued):
The following table summarizes the Partnerships assets measured at fair value on a recurring basis as of September 30, 2011 and December 31, 2010 using the fair value hierarchy:
September 30, 2011 | December 31, 2010 | |||||||
Description |
Level 1 | Level 1 | ||||||
Equity in brokers trading account: |
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U.S. Government securities* |
$ | 30,064,037 | $ | 29,082,108 | ||||
Unrealized gain (loss) on open futures contracts, net* |
(4,428,766 | ) | 3,125,524 | |||||
Cash at brokers: |
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Money market funds |
2,098,702 | 2,577,040 | ||||||
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Total assets at fair value |
$ | 27,733,973 | $ | 34,784,672 | ||||
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*See | condensed schedules of investments for further description. |
At September 30, 2011 and December 31, 2010 and for the nine months ended September 30, 2011 and 2010 there were no Level 2 or Level 3 assets or liabilities.
In addition, substantially all of the Partnerships other assets and liabilities are considered financial instruments and are reflected at fair value, or at carrying amounts that approximate fair value because of the short maturity of the instruments.
Note 3. Derivative Transactions
Qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments, and disclosures about credit-risk related contingent features in derivative agreements are presented.
The Partnerships business is the trading of futures contracts to replicate the Index. The Partnership does not consider any derivative instruments to be hedging instruments, as this term is generally understood under FASB guidance.
As September 30, 2011 and December 31, 2010, the Partnerships derivative contracts had the following impact on the statements of financial condition:
Asset Derivatives | Liability Derivatives | Net Derivatives | ||||||||||
September 30, 2011 | September 30, 2011 | September 30, 2011 | ||||||||||
Fair Value | Fair Value | Fair Value* | ||||||||||
Agricultural |
$ | 74,193 | $ | (1,688,437 | ) | $ | (1,614,244 | ) | ||||
Metals |
80,050 | (2,036,550 | ) | (1,956,500 | ) | |||||||
Energy |
| (858,022 | ) | (858,022 | ) | |||||||
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Totals |
$ | 154,243 | $ | (4,583,009 | ) | $ | (4,428,766 | ) | ||||
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* | The net fair value of all asset and liability derivatives is included in equity in brokers trading accounts in the statements of financial condition. |
11
Rogers International Raw Materials Fund, L.P.
Notes to the Financial Statements (Unaudited)
Note 3. Derivative Transactions (Continued):
Asset Derivatives | Liability Derivatives | Net Derivatives | ||||||||||
December 31, 2010 | December 31, 2010 | December 31, 2010 | ||||||||||
Fair Value | Fair Value | Fair Value* | ||||||||||
Agricultural |
$ | 1,801,471 | $ | (2,350 | ) | $ | 1,799,121 | |||||
Metals |
1,155,865 | (309,280 | ) | 846,585 | ||||||||
Energy |
486,668 | (6,850 | ) | 479,818 | ||||||||
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Totals |
$ | 3,444,004 | $ | (318,480 | ) | $ | 3,125,524 | |||||
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*The net fair value of all asset and liability derivatives is included in equity in broker trading accounts in the statements of financial condition.
Trading revenue from derivative contracts for the three and nine months ended September 30, 2011 and 2010:
Three months ended | Three months ended | Nine months ended | Nine months ended | |||||||||||||
Type of Contract |
September 30, 2011 | September 30, 2010 | September 30, 2011 | September 30, 2010 | ||||||||||||
Agricultural |
$ | (1,091,966 | ) | $ | 3,674,899 | $ | (2,154,011 | ) | $ | 1,550,430 | ||||||
Metals |
(2,750,383 | ) | 1,554,111 | (2,543,415 | ) | 832,577 | ||||||||||
Energy |
(1,482,573 | ) | 544,622 | 259,469 | (1,562,078 | ) | ||||||||||
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$ | (5,324,922 | ) | $ | 5,773,632 | $ | (4,437,957 | ) | $ | 820,929 | |||||||
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Line Item in Statements of Operations |
Three months ended September 30, 2011 |
Three months ended September 30, 2010 |
Nine months ended September 30, 2011 |
Nine months ended September 30, 2010 |
||||||||||||
Realized |
$ | (2,846,170 | ) | $ | 2,257,092 | $ | 3,116,333 | $ | (608,590 | ) | ||||||
Change in unrealized |
(2,478,752 | ) | 3,516,540 | (7,554,290 | ) | 1,429,519 | ||||||||||
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$ | (5,324,922 | ) | $ | 5,773,632 | $ | (4,437,957 | ) | $ | 820,929 | |||||||
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Trading revenue is exclusive of brokerage commissions.
For the three and nine months ended September 30, 2011 and 2010, the monthly average number of contracts bought and sold was 905, 1,070, 1,121 and 1,368, respectively.
Note 4. Agreements and Related-Party Transactions:
The Limited Partnership Agreement vests all responsibility and powers for the management of the business and affairs of the Partnership with the General Partner, Beeland Management Company, L.L.C., including trading decisions.
The Partnership pays a monthly management fee to the General Partner equal to 0.08333% of the net assets of the Partnership at the close of the preceding month (1.00% per annum).
12
Rogers International Raw Materials Fund, L.P.
Notes to the Financial Statements (Unaudited)
Note 4. Agreements and Related-Party Transactions (continued):
The Partnership is responsible for the administrative and trading expenses related to its operations. The General Partner may incur certain expenses on behalf of the Partnership and charge the Partnership for its allocable portion of these expenses.
Uhlmann Price Securities L.L.C. (Uhlmann), a party related to the General Partner by reason of common management, acts as the selling group manager for the Partnership. The Partnership pays Uhlmann a share of selling fees when units are sold by additional selling agents. Selling fees of up to 2% of the gross offering proceeds (which includes a 0.50% reallowance to Uhlmann) are charged to partners capital upon issuance of Series B Partnership units.
In addition, there is an annual trailing servicing fee of up to 1% of the net asset value of the specific partners capital account payable to the soliciting broker-dealer for ongoing investor services. For all Series B units sold, the total trailing servicing fee is not to exceed 7.99% of the gross offering proceeds of the units sold.
The Price Futures Group, Inc. (PFG), a related party to the General Partner through common management, acts as the introducing broker for the Partnership, whereby the trading accounts of the Partnership are introduced to the Partnerships clearing broker. A portion of the brokerage fee paid by the Partnership for clearing transactions is paid to PFG by the clearing broker.
Fund Dynamics, LLC, an affiliate of the General Partner through common management, acts as the Partnerships administrator. Fund Dynamics, LLC calculates both the daily and monthly Net Asset Value (NAV), prepares the monthly accounting package, and prepares monthly investor statements.
A summary of fees charged by related parties to the Partnership is as follows:
Three months ended | Three months ended | Nine months ended | Nine months ended | |||||||||||||
September 30, 2011 | September 30, 2010 | September 30, 2011 | September 30, 2010 | |||||||||||||
Management fees General Partner |
$ | 112,950 | $ | 107,691 | $ | 367,520 | $ | 347,375 | ||||||||
Administrative fees Fund Dynamics |
25,037 | 25,976 | 80,703 | 83,180 | ||||||||||||
Trailing servicing fees Uhlmann |
72,319 | 70,082 | 235,472 | 227,007 | ||||||||||||
Selling Fees Uhlmann |
960 | | 8,718 | |
Note 5. Partnership Capital and Withdrawals:
The Partnership accepts contributions as of the close of business on the last business day of each month for investment on the first day of the next succeeding month. The General Partner may accept or reject contributions and waive the minimum contribution amounts in its sole discretion.
Effective November 1, 2010, the Partnership began accepting contributions for Series B units. The Partnership has not issued Series A units since October 1, 2005.
The purchase price of a unit is the net asset value per unit as of the end of each calendar month. Net asset value per unit is calculated as the net asset value at month-end divided by the number of outstanding units.
The Partnership accepts withdrawals on a monthly basis. Requests for withdrawal should be received by the General Partner no later than six business days prior to the end of the month in which an investor chooses to withdraw. Requests for withdrawal should be sent to the General Partner by email, fax, or overnight courier.
13
Rogers International Raw Materials Fund, L.P.
Notes to the Financial Statements (Unaudited)
Note 6. Financial Instruments with Off-Balance Sheet Credit and Market Risk:
The Partnership is involved in trading activities that may have market and/or credit risk. Financial instruments employed in the Partnerships operations may have market and/or credit risk in excess of the amounts recorded in the statement of financial condition.
Market RiskMarket risks arise from changes in the market value of financial instruments. Theoretically, the Partnerships exposure is equal to the notional contract value of futures contracts entered. Exposure to market risk is 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 are traded.
Credit RiskCredit risk arises primarily from the potential inability of counterparties to perform in accordance with the terms of a contract. The Partnerships exposure to credit risk associated with counterparty nonperformance is generally the net unrealized gain on the open positions plus the value of the margin or collateral held by the counterparty. Exchange-traded financial instruments generally do not give rise to significant counterparty exposure due to the cash settlement procedures for daily market movements and the margin requirements of individual exchanges. Financial instruments traded off-exchange give rise to the risk of the failure of, or the inability or refusal to perform by, the counterparties to such trades.
Concentration of Credit RiskThe Partnership clears all of its futures trades through one clearing broker, MF Global, Inc. In the event this counterparty does not fulfill its obligations or becomes insolvent, the Partnership may be exposed to losses.
The Partnership has a substantial portion of its assets on deposit with financial institutions in connection with its cash management activities. In the event of a financial institutions insolvency, recovery of the Partnerships assets on deposit may be limited to the amount of insurance or other protection afforded such deposits.
The Partnership attempts to minimize this credit risk by monitoring the creditworthiness of the clearing broker and financial institutions.
14
Rogers International Raw Materials Fund, L.P.
Notes to the Financial Statements (Unaudited)
Note 7. Financial Highlights:
Financial highlights for limited partners for the three and nine months ended September 30, 2011 and 2010 are as follows:
Series A | Series B | Series A | Series A | Series B | Series A | |||||||||||||||||||
Three months ended |
Three months ended |
Three months ended |
Nine months ended |
Nine months ended |
Nine months ended |
|||||||||||||||||||
September 30, 2011 |
September 30, 2011(4) |
September 30, 2010 |
September 30, 2011 |
September 30, 2011(4) |
September 30, 2010 |
|||||||||||||||||||
Net asset value per unit at the beginning of the period |
$ | 191.03 | $ | 189.88 | $ | 146.10 | $ | 191.07 | $ | 190.44 | $ | 163.67 | ||||||||||||
Income (loss) from operations: |
||||||||||||||||||||||||
Net trading gains (losses) |
(23.46 | ) | (23.03 | ) | 20.30 | (21.25 | ) | (20.71 | ) | 3.84 | ||||||||||||||
Investment income: |
1.92 | 0.07 | 0.07 | 2.46 | 0.23 | 1.09 | ||||||||||||||||||
Expenses: |
(1.44 | ) | (1.46 | ) | (1.07 | ) | (4.23 | ) | (4.50 | ) | (3.20 | ) | ||||||||||||
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Net investment gain (loss) |
0.48 | (1.39 | ) | (1.00 | ) | (1.77 | ) | (4.27 | ) | (2.11 | ) | |||||||||||||
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Net income (loss) per unit |
(22.98 | ) | (24.42 | ) | 19.30 | (23.02 | ) | (24.98 | ) | 1.73 | ||||||||||||||
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Net asset value per unit at the end of the period |
$ | 168.05 | $ | 165.46 | $ | 165.40 | $ | 168.05 | $ | 165.46 | $ | 165.40 | ||||||||||||
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Series A Three months ended September 30, 2011 |
Series B Three months ended September 30, 2011(4) |
Series A Three months ended September 30, 2010 |
Series A Nine months ended September 30, 2011 |
Series B Nine months ended September 30, 2011(4) |
Series A Nine months ended September 30, 2010 |
|||||||||||||||||||
Ratio of net investment loss to average partners capital (net assets)(1) |
1.03 | % | -3.00 | % | 2.58 | % | -1.19 | % | -2.92 | % | -1.79 | % | ||||||||||||
Ratio of expenses to average partners capital (net assets) (1)(2) |
3.07 | % | 3.15 | % | 2.75 | % | 2.86 | % | 3.08 | % | 2.74 | % | ||||||||||||
Total return (3) |
-12.03 | % | -12.86 | % | 13.22 | % | -12.05 | % | -13.12 | % | 1.06 | % |
The above ratios were calculated for the partners taken as a whole. The computation of such ratios was not based on the amount of expenses assessed and income allocated to an individual partners capital account, which may vary from these ratios based on the timing of capital transactions (see Note 5).
(1) | Annualized. |
(2) | The ratio of expenses to average partners capital (net asset) values does not include brokerage commissions. |
(3) | Not annualized. |
(4) | Series B units were first accepted effective November 1, 2010 and thus no per unit data is available for the periods ended September 30, 2010. |
15
Rogers International Raw Materials Fund, L.P.
Notes to the Financial Statements (Unaudited)
Note 8. Litigation:
The Partnership is a beneficiary of a Litigation Trust which is seeking recoveries from third parties, related to the 2005 bankruptcy of Refco, Inc. and numerous affiliates (the Refco Bankruptcy). As of September 30, 2011, the Partnership has received the full value of its allowed claims in the Refco Bankruptcy and has recovered approximately $4.8 million in excess of its allowed securities claim in the Refco Bankruptcy and may receive additional Refco Bankruptcy related recoveries, although there can be no assurance that it will or that any additional recoveries will be material. Management is unable to estimate the amounts of any such additional recoveries.
All Refco Bankruptcy related recoveries received by the Partnership, including excess recoveries except as described below, have been allocated among all partners in the Partnership who were partners as of October 31, 2005, on a pro-rata basis as October 31, 2005, with redeemed partners receiving cash distributions. Cash distributions to redeemed partners from excess recoveries totaled approximately $494,000 for the year ended December 31, 2010. No excess distributions have been made in 2011. Pursuant to Section 12.2 of the Partnerships Agreement of Limited Partnership, the Partnership reimbursed the General Partner and James B. Rogers approximately $400,000 and $428,000, respectively, from excess recoveries for legal costs incurred by the General Partner and James B. Rogers defending against suits related to the Refco Bankruptcy in 2010 and 2009. Included in administrative fees and other fees payable are amounts due under these arrangements of $0 and $249,542 at September 30, 2011 and December 31, 2010, respectively.
The Partnership has reserved $30,000 of the excess Refco related recoveries to apply to expenses incurred to administer ongoing communication with, and distributions and reporting to, redeemed limited partners with respect to Refco related recoveries received by the Partnership. These expenses include but are not limited to professional fees, printing, postage, and administration fees. At September 30, 2011, $26,934 of these expenses is included in administrative and other fees payable on the statement of financial condition.
At September 30, 2011 and December 31, 2010, approximately $1,065,102 and $208,000 of excess Refco related recoveries was payable to redeemed limited partners. These amounts are included in withdrawals payable for those periods ended.
Note 9. Indemnifications:
In the normal course of business, the Partnership enters into contracts and agreements that contain a variety of representations and warranties, both of which provide general indemnifications. The Partnerships maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Partnership that have not yet occurred. The Partnership expects the risk of any future obligation under these indemnifications to be remote.
Note 10. Interim Financial Statements:
The statements of financial condition, including the condensed schedule of investments, as of September 30, 2011, the statement of operations and changes in partners capital (net assets) for the three and nine months ended September 30, 2011 and 2010 and the accompanying notes to the financial statements are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP may be omitted pursuant to such rules and regulations. In the opinion of the General Partner, such financial statements and accompanying disclosures reflect all adjustments, which were of a normal and recurring nature, necessary for a fair presentation of the financial position as of September 30, 2011, results of operations and changes in partners capital (net assets) for the three and nine months ended September 30, 2011 and 2010. The results of operations for three and nine months ended September 30, 2011 and 2010 are not necessarily indicative of the results to be expected for the full year or any other period. These financial statements should be read in conjunction with the audited financial statements and the notes thereto included in the Partnerships Form 10-K as filed with the SEC.
16
Rogers International Raw Materials Fund, L.P.
Notes to the Financial Statements (Unaudited)
Note 11. Subsequent Events:
On October 31, 2011, MF Global Holdings Ltd., the parent Company of MF Global Inc., then the Partnerships futures commission merchant, filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code. The Securities and Exchange Commission and CFTC agreed that a SIPC-lead bankruptcy of MF Global Inc. would be the safest and most prudent course of action to protect customer accounts and assets and SIPC initiated the liquidation of MF Global Inc. under the Securities Investor Protection Act. As of October 31, 2011 the Partnership held approximately 12.6% of partners capital in customer segregated and secured accounts at MF Global Inc. The CFTC has stated that there is a shortfall in customer segregated accounts, although as of November 14, 2011, the true extent of such shortfall remains unknown. Although some assets have been transferred from MF Global Inc. to the Partnerships new futures commission merchant, ADM Investors Services, Inc., as of November 14, 2011, the General Partner believes that a portion of the Partnerships assets are, and may remain for some time, illiquid, but does not have sufficient information to estimate accurately how long such assets may be unavailable to the Partnership or the percentage of assets that may not be recovered, if any. Notwithstanding the foregoing, the Partnership is currently continuing its operations tracking the Index and anticipates continuing to do so for the foreseeable future.
17
ITEM 2. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
INTRODUCTION
The Partnerships principal objective is to provide an alternative investment vehicle for investors with diversified investment portfolios. The Partnerships trading is designed to replicate the positions which comprise the Rogers International Commodity Index. The Partnership invests and trades in a portfolio of commodity futures and exchange traded forward contracts. The Partnership invests and trades solely on the long side of the market. The General Partner (Beeland Management) manages all business of the Partnership.
CAPITAL RESOURCES
The Partnership will raise additional capital only through the sale of Units offered pursuant to a continuing offering and does not intend to raise any capital through borrowing. Due to the nature of the Partnerships 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 Partnerships 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.
On October 31, 2011, MF Global Holdings Ltd., the parent Company of MF Global Inc., then the Partnerships futures commission merchant, filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code. The Securities and Exchange Commission and CFTC agreed that a SIPC-lead bankruptcy of MF Global Inc. would be the safest and most prudent course of action to protect customer accounts and assets and SIPC initiated the liquidation of MF Global Inc. under the Securities Investor Protection Act. As of October 31, 2011 the Partnership held approximately 12.6% of partners capital in customer segregated and secured accounts at MF Global Inc. The CFTC has stated that there is a shortfall in customer segregated accounts, although as of November 14, 2011, the true extent of such shortfall remains unknown. Although some assets have been transferred from MF Global Inc. to the Partnerships new futures commission merchant, ADM Investors Services, Inc., as of November 14, 2011, the General Partner believes that a portion of the Partnerships assets are, and may remain for some time, illiquid, but does not have sufficient information to estimate accurately how long such assets may be unavailable to the Partnership or the percentage of assets that may not be recovered, if any. Notwithstanding the foregoing, the Partnership is currently continuing its operations tracking the Index and anticipates continuing to do so for the foreseeable future.
Other than these limitations on liquidity, which are inherent in the Partnerships trading operations, the Partnerships assets are expected to be highly liquid.
RESULTS OF OPERATIONS
The Partnerships net income or loss is directly related to changes in the value of the Index, which the Partnership is designed to replicate, and is not dependent on trading decisions made by the Beeland Management apart from balancing positions to track the Index. In periods of general market inflation, Beeland Management would expect the value of the Index to increase; similarly, in periods of general market deflation, Beeland Management would expect the value of the Index to decrease. The Partnerships performance may be negative in years when the Indexs performance is positive due to fees charged.
The components of the Partnerships return are normally the gains and losses recognized from the changes in futures market prices and the interest income earned on cash balances. The mechanics and rules of futures markets allow the Partnership to earn interest on approximately 90% to 100% of its assets.
18
At September 30, 2011 and 2010, the Partnerships net assets were $37,702,219 and $44,939,463, respectively.
Three months ended |
Three months ended |
Nine months ended |
Nine months ended |
|||||||||||||
September 30, 2010 |
September 30, 2011 |
September 30, 2011 |
September 30, 2010 |
|||||||||||||
Net Revenues |
||||||||||||||||
Realized Net trading gains (losses): |
$ | (2,846,170 | ) | $ | 2,257,092 | $ | 3,116,333 | $ | (608,590 | ) | ||||||
Unrealized trading gains (losses) |
(2,478,752 | ) | 3,516,540 | (7,554,290 | ) | 1,429,519 | ||||||||||
Interest income |
16,484 | 18,329 | 54,048 | 45,219 | ||||||||||||
Commissions |
(18,026 | ) | (21,709 | ) | (64,471 | ) | (76,652 | ) | ||||||||
Other income |
420,046 | | 536,778 | 282,650 | ||||||||||||
|
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|||||||||
Total Net Revenues (Loss) |
(4,906,418 | ) | 5,770,252 | (3,911,602 | ) | 1,072,146 | ||||||||||
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Operating Expenses: |
||||||||||||||||
Management fees |
112,950 | 107,691 | 367,520 | 347,375 | ||||||||||||
Administrative fees and other expenses |
219,126 | 191,697 | 659,843 | 599,950 | ||||||||||||
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|||||||||
Total Operating Expanses |
332,076 | 299,388 | 1,027,363 | 947,325 | ||||||||||||
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|||||||||
Net income (loss) |
$ | (5,238,494 | ) | $ | 5,470,864 | $ | (4,938,965 | ) | $ | 124,821 | ||||||
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The Partnership pays various fees and expenses on a continuing basis which include management fees, servicing fees, and brokerage commission and transaction fees.
Results of Operations
2011
The Partnership posted a net gain of 2.93% in January. Performance of the indexs sectors was mixed. The agriculture and energy sectors posted gains of 1.97% and 1.22%, respectively, while the metals sector posted a loss of -0.04%. The best performing commodities in January were cotton, rubber, tin, lean hogs, and greasy wool. The highest grossing commodities were brent crude, cotton, wheat, corn, and rubber.
The Partnership posted a gain of 3.65% in February. The performance for all of the Indexs sectors was positive. The energy, metals, and agriculture sectors posted gains of 2.37%, 0.96%, and 0.48%, respectively. The best performing commodities in February were silver, cotton, gas oil, brent crude, and coffee. The highest grossing commodities were brent crude, cotton, light crude, corn, and silver.
The Partnership posted a gain of 2.14% in March. The performance for the Indexs sectors was mixed. The energy sector posted a gain of 2.98%, while the agriculture and metals sectors posted losses of -0.62% and -0.03%, respectively. The best performing commodities in March were silver, greasy wool, light crude, natural gas, and RBOB gasoline. The highest grossing commodities were light crude, brent crude, silver, natural gas, and RBOB gasoline.
The Partnership posted a gain of 2.84% in April. The performance for the Indexs sectors was mixed. The energy and metals sectors posted gains of 2.95% and 0.86%, respectively, while the agriculture sectors posted a loss of -0.86%. The best performing commodities in April were silver, cocoa, coffee, RBOB gasoline, and gold. The highest grossing commodities were light crude, brent crude, silver, corn, and RBOB gasoline.
19
The Partnership posted a loss of -5.42% in May. The performance for the Indexs sectors was negative. The agriculture, metals, and energy sectors posted losses of -0.48%, -0.96%, and -3.70%, respectively. The best performing commodities in May were greasy wool, Euro rapeseed, milling wheat, oats, and orange juice. The highest grossing commodities were milling wheat, sugar, orange juice, oats, and cotton.
The Partnership posted a loss of -5.68% in June. For the month of June, the performance for the Indexs sectors was negative. The agriculture, metals, and energy sectors posted losses of -2.85%, -0.38%, and -2.48%, respectively. The best performing commodities in June were sugar, lead, greasy wool, live cattle, and orange juice. The highest grossing commodities were sugar, lead, live cattle, copper, and zinc.
The Partnership posted a gain of 2.09% in July. The performance for all of the Indexs sectors was positive in July. The agriculture, energy, and metals sectors posted gains of 0.50%, 0.59%, and 1.13%, respectively. The best performing commodities were silver, sugar, palladium, tin, and wheat. The highest grossing commodities were brent crude, wheat, silver, sugar, and gold.
The Partnership posted a gain of 0.44% in August. In August, the performance for the Indexs sectors was mixed. The energy and metals sectors posted losses of -1.94% and -0.40%, respectively while the agriculture sector posted a gain of 2.12%. The best performing commodities were coffee, corn, gold, KC wheat, and wheat. The highest grossing commodities were corn, wheat, gold, coffee, and soybeans.
The Partnership posted a loss of -14.22% in September. In September, the performance for all of the Indexs sectors was negative. The agriculture, energy, and metals sectors posted losses of -5.02%, -4.76%, and -4.04%, respectively. The best performing commodities were lean hogs, live cattle, azuki beans, euro rapeseed, and greasy wool. The highest grossing commodities were lean hogs, live cattle, azuki beans, euro rapeseed, and greasy wool. The Partnerships year to date return for the nine months ended September 30, 2011 was -12.07%.
2010
Units of the Partnership posted a net loss of -8.22% in January. Performance for the Indexs sectors was negative. The energy, agriculture, and metals sectors posted losses of -3.96%, -2.76%, and -1.42%, respectively. Highest grossing commodities for the Partnerships performance in January were sugar, orange juice, lumber, azuki beans, and greasy wool.
Units of the Partnership posted a net gain of 5.17% in February. The energy, agriculture, and metals sectors posted gains of 3.12%, 1.42%, and 0.84%, respectively. The top performing commodities for the Partnership were cotton, nickel, crude oil, soybean oil and RBOB gasoline.
Units of the Partnership posted a net loss of 0.41% in March. Sector performance was mixed for March, the energy and metals sectors posted gains of 1.53% and 1.31%, respectively, while the agriculture sector posted a loss of -2.17%. Highest grossing commodities for March were crude oil, brent oil, aluminum, copper, and nickel.
Units of the Partnership posted a net gain of 2.54% in April. Sector performance was positive for April and the energy, agriculture, and metal sectors posted gains of 1.51%, 1.11%, and 0.16%, respectively. The top performing commodities for the Partnership were palladium, soybean meal, KC wheat, wheat, and cocoa. The highest grossing commodities for April were brent oil, crude oil, wheat, corn, and gold.
Units of the Partnership posted a net loss of -9.89% in May. The performance of the all sectors of the Indexs was negative. The energy, agriculture, and metal sectors posted losses of -6.55%, -2.06%, and -1.72%, respectively. The top performing commodities for the Partnership were natural gas, orange juice, gold, euro rapeseed, and greasy wool. The highest grossing commodities for May were natural gas, gold, orange juice, euro rapeseed, and greasy wool.
Units of the Partnership posted a net loss of -0.33% in June. The performance of the Indexs sectors was mixed. The agriculture and energy sectors posted gains of 0.39% and 0.30%, respectively, while the metals sector posted a loss of -0.69%. The top performing commodities for the Partnership were oats, coffee, canola, sugar, and euro rapeseed. The highest grossing commodities for June were coffee, sugar, natural gas, oats, and gold.
20
Units of the Partnership posted a net gain of 7.74% in July. The performance of the Indexs sectors was positive. The agriculture, energy, and metals sectors posted gains of 4.81%, 1.61%, and 1.46%, respectively. The top performing commodities for the Partnership were wheat, KC wheat, sugar, lead, and palladium. The highest grossing commodities for July were wheat, crude oil, brent oil, copper, and sugar.
Units of the Partnership posted a net loss of -3.02% in August. The performance of the Indexs sectors was mixed. The energy sector posted a loss of -3.69% while the metals and agriculture sectors posted gains of 0.16% and 0.73%, respectively. The top performing commodities for the Partnership were cotton, corn, silver, tin, and rubber. The highest grossing commodities for August were cotton, corn, gold, silver, and copper.
Units of the Partnership posted a net gain of 8.35% in September. The performance of the Indexs sectors was positive. The agriculture, energy, and metals sectors posted gains of 2.91%, 3.56%, and 2.04%, respectively. The top performing commodities for the Partnership were oats, sugar, cotton, palladium, and tin. The highest grossing commodities for September were light crude, brent crude, cotton, corn, and aluminum. The Partnerships year to date performance through September 30, 2010 is 1.06%.
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 trades primarily in futures and exchange traded 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 open positions of the Partnership at the same time, the Partnership could experience substantial losses.
In addition to market risk, in entering into futures, exchange-traded forward, or over the counter 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 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. In off-exchange transactions, traders must rely solely on the credit of their counterparties. Margins, which may be subject to loss in the event of a default, are generally required in exchange trading, and counterparties may require collateral in the over-the-counter markets.
CRITICAL ACCOUNTING POLICIES VALUATION OF THE PARTNERSHIPS POSITIONS
The General Partner believes that the accounting policies that are most critical to the Partnerships financial condition and results of operations relate to the valuation of the Partnerships positions. The majority of the Partnerships positions are exchange-traded futures contracts, which are valued daily at settlement prices published by the exchanges. Any spot or forward foreign currency contracts held by the Partnership are also valued at published daily settlement prices or at dealers quotes. Thus, the General Partner expects that under normal circumstances substantially all of the Partnerships assets will be valued on a daily basis using objective measures.
OFF-BALANCE SHEET ARRANGEMENTS
The Partnership does not engage in off-balance sheet arrangements with other entities.
21
CONTRACTUAL OBLIGATIONS
The Partnership does not enter into any contractual obligations or commercial commitments to make future payments of a type that would be typical for an operating company or that would affect its liquidity or capital resources. The Partnerships sole business is trading futures, exchange-traded commodity forward, and, possibly, commodity related over the counter contracts. All such contracts are settled by offset, not delivery. The Partnerships Financial Statements, included in this report, present an Schedule of Investments setting forth unrealized gain and unrealized loss on the Partnerships open futures contracts at September 30, 2011 (unaudited) and December 31, 2010.
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Not required.
ITEM 4. | CONTROLS AND PROCEDURES |
The principal executive officer and principal financial officer of Beeland Management have evaluated the effectiveness of Beeland Managements disclosure controls and procedures with respect to the Partnership as of the end of the fiscal quarter for which this Quarterly Report on Form 10-Q is being filed and have concluded that Beeland Managements disclosure controls and procedures to ensure that material information relating to the Partnership is made known to them by others within Beeland Management, particularly during the period in which this quarterly report is being prepared are effective. Subsequent to the quarter ended June 30, 2011, with the integration of additional personnel, management has revised procedures to improve Beeland Managements internal controls over financial reporting.
22
PART II-OTHER INFORMATION
ITEM 1. | LEGAL PROCEEDINGS. |
None.
ITEM 1A. | RISK FACTORS |
Not required.
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. |
(c) Pursuant to the Partnerships Limited Partnership Agreement, investors may redeem their units at the end of each calendar month at the then current month-end net asset value per unit. The redemption of units has no impact on the value of units that remain outstanding, and units are not reissued once redeemed.
The following tables summarize the redemptions by investors during the three months ended September 30, 2011:
Series A
Month: | Units Redeemed: | NAV per Unit ($): | ||||||
July 31, 2011 |
3,276.82 | $ | 195.02 | |||||
August 31, 2011 |
4,214.81 | $ | 195.91 | |||||
September 30, 2011 |
4,583.54 | $ | 168.05 |
Series B
Month: | Units Redeemed: | NAV per Unit ($): | ||||||
July 31, 2011 |
0.00 | $ | 193.84 | |||||
August 31, 2011 |
36.33 | $ | 192.89 | |||||
September 30, 2011 |
150.36 | $ | 165.46 |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
Not applicable.
ITEM 4. | (Removed and Reserved) |
ITEM 5. | OTHER INFORMATION |
None
ITEM 6. | EXHIBITS |
31.01 | Rule 13a-14(a)/15d-14(a) Certification | |
31.02 | Rule 13a-14(a)/15d-14(a) Certification | |
32.01 | Section 1350 Certification | |
32.02 | Section 1350 Certification | |
101.00 | The following financial information from our Quarterly Report on Form 10-Q for the third quarter of 2011, filed with the SEC on November 14, 2011, formatted in Extensible Business Reporting Language (XBRL): (i) the Statements of Financial Condition as of September 30, 2011 (unaudited) and December 31, 2010, (ii) the Condensed Schedule of Investments as of September 30, 2011 (unaudited) and December 31, 2010 (iii) the Unaudited Statements of Operations for the three and nine months ended September 30, 2011 and September 30, 2010, (iii) the Unaudited Statements of Changes in Partners Capital (Net Assets) the nine months ended September 30, 2011 and September 30, 2010, and (iv) Notes to Unaudited Financial Statements. |
23
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 November 14, 2011.
ROGERS INTERNATIONAL RAW MATERIALS FUND, L.P. (Registrant) | ||
By: | Beeland Management Company, L.L.C. General Partner | |
By: | /s/Walter Thomas Price III | |
Walter Thomas Price III Managing Member (Principal Executive Officer) | ||
By: | /s/ Allen D. Goodman | |
Allen D. Goodman Managing Member (Principal Financial and Accounting Officer) |
24
EXHIBIT 31.01
RULE 13a-14(a)/15d-14(a)
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
I, Walter Thomas Price III, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Rogers International Raw Materials Fund, L.P.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: November 14, 2011
By: /s/ Walter Thomas Price III
Walter Thomas Price III
Managing Member (Principal Executive Officer)
Beeland Management Company, L.L.C.
General Partner of Rogers International Raw Materials Fund, L.P.
E-1
EXHIBIT 31.02
RULE 13a-14(a)/15d-14(a)
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
I, Allen D. Goodman, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Rogers International Raw Materials Fund, L.P.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: November 14, 2011
By: /s/ Allen D. Goodman
Allen D. Goodman
Managing Member (Principal Financial and Accounting Officer)
Beeland Management Company, L.L.C.
General Partner of Rogers International Raw Materials Fund, L.P.
E-2
EXHIBIT 32.01
CERTIFICATION
PURSUANT TO
SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE
I, Walter Thomas Price III, a Managing Member of Beeland Management Company, L.L.C., the General Partner of Rogers International Raw Materials Fund, L.P. (the Partnership), certify that (i) the Quarterly Report of the Partnership on Form 10-Q for the period ended September 30, 2011 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and (ii) the information contained in such Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.
Date: November 14, 2011
By: /s/ Walter Thomas Price III
Walter Thomas Price III
Managing Member (Principal Executive Officer)
Beeland Management Company, L.L.C.
General Partner of Rogers International Raw Materials Fund, L.P.
E-3
EXHIBIT 32.02
CERTIFICATION
PURSUANT TO
SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE
I, Allen D. Goodman, a Managing Member of Beeland Management Company, L.L.C., the General Partner of Rogers International Raw Materials Fund, L.P. (the Partnership), certify that (i) the Quarterly Report of the Partnership on Form 10-Q for the period ended September 30, 2011 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and (ii) the information contained in such Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.
Date: November 14, 2011
By: /s/ Allen D. Goodman
Allen D. Goodman
Managing Member (Principal Financial and Accounting Officer)
Beeland Management Company, L.L.C.
General Partner of Rogers International Raw Materials Fund, L.P.
E-4
Condensed Schedule Of Investments (USD $) | Sep. 30, 2011 | Dec. 31, 2010 | ||||
---|---|---|---|---|---|---|
Schedule of Investments [Line Items] | ||||||
Unrealized Gain (Loss) on Open Long Futures Contracts, Net | $ (4,428,766) | $ 3,125,524 | [1] | |||
Percentage of Net Assets | (11.74%) | 6.26% | [1] | |||
U.S. Government Securities [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Fair Value | 30,064,037 | 29,082,108 | ||||
Percentage of Net Assets | 79.72% | 58.23% | ||||
U.S. Government Securities [Member] | U.S. Treasury Bills due 10/20/2011 at 0.22% principal amount $1,000,000 [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Fair Value | 999,881 | 998,263 | ||||
Percentage of Net Assets | 2.65% | 2.00% | ||||
U.S. Government Securities [Member] | U.S. Treasury Bills due 11/17/2011 at 0.21%, principal amount $2,000,000 [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Fair Value | 1,999,451 | |||||
Percentage of Net Assets | 5.30% | |||||
U.S. Government Securities [Member] | U.S. Treasury Bills due 12/15/2011 at 0.24%, principal amount $2,500,000 [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Fair Value | 2,498,760 | |||||
Percentage of Net Assets | 6.63% | |||||
U.S. Government Securities [Member] | U.S. Treasury Bills due 2/9/2012 at 0.19%, principal amount $2,510,000 [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Fair Value | 2,508,278 | |||||
Percentage of Net Assets | 6.65% | |||||
U.S. Government Securities [Member] | U.S. Treasury Bills due 3/8/2012 at 0.26%, principal amount $2,330,000 [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Fair Value | 2,327,325 | |||||
Percentage of Net Assets | 6.17% | |||||
U.S. Government Securities [Member] | U.S. Treasury Bills due 4/5/2012 at 0.20%, principal amount $3,300,000 [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Fair Value | 3,296,617 | |||||
Percentage of Net Assets | 8.74% | |||||
U.S. Government Securities [Member] | U.S. Treasury Bills due 5/3/2012 at 0.08%, principal amount $4,070,000 [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Fair Value | 4,068,006 | |||||
Percentage of Net Assets | 10.79% | |||||
U.S. Government Securities [Member] | U.S. Treasury Bills due 5/31/2012 at 0.18%, principal amount $3,678,000 [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Fair Value | 3,673,529 | |||||
Percentage of Net Assets | 9.74% | |||||
U.S. Government Securities [Member] | U.S. Treasury Bills due 6/28/2012 at 0.17%, principal amount $3,300,000 | ||||||
Schedule of Investments [Line Items] | ||||||
Fair Value | 3,295,887 | |||||
Percentage of Net Assets | 8.74% | |||||
U.S. Government Securities [Member] | U.S. Treasury Bills due 7/26/2012 at 0.06%, principal amount $2,000,000 | ||||||
Schedule of Investments [Line Items] | ||||||
Fair Value | 1,999,018 | |||||
Percentage of Net Assets | 5.30% | |||||
U.S. Government Securities [Member] | U.S. Treasury Bills due 8/23/2012 at 0.09%, principal amount $3,400,000 | ||||||
Schedule of Investments [Line Items] | ||||||
Fair Value | 3,397,285 | |||||
Percentage of Net Assets | 9.01% | |||||
U.S. Government Securities [Member] | U.S. Treasury Bills due 7/28/2011 at 0.17% principal amount $3,400,000 [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Fair Value | 3,396,700 | |||||
Percentage of Net Assets | 6.80% | |||||
U.S. Government Securities [Member] | U.S. Treasury Bills due 8/25/2011 at 0.18% principal amount $2,000,000 [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Fair Value | 1,997,712 | |||||
Percentage of Net Assets | 4.00% | |||||
U.S. Government Securities [Member] | U.S. Treasury Bills due 9/22/2011 at 0.20% principal amount $2,000,000 [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Fair Value | 1,997,144 | |||||
Percentage of Net Assets | 4.00% | |||||
U.S. Government Securities [Member] | U.S. Treasury Bills due 1/13/2011 at 0.08%, principal amount $2,800,000 [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Fair Value | 2,799,922 | |||||
Percentage of Net Assets | 5.61% | |||||
U.S. Government Securities [Member] | U.S. Treasury Bills due 1/27/2011 at 0.11%, principal amount $5,500,000 [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Fair Value | 5,499,586 | |||||
Percentage of Net Assets | 11.01% | |||||
U.S. Government Securities [Member] | U.S. Treasury Bills due 2/24/2011 at 0.12%, principal amount $2,300,000 [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Fair Value | 2,299,591 | |||||
Percentage of Net Assets | 4.60% | |||||
U.S. Government Securities [Member] | U.S. Treasury Bills due 4/21/2011 at 0.16%, principal amount $3,300,000 [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Fair Value | 3,298,406 | |||||
Percentage of Net Assets | 6.61% | |||||
U.S. Government Securities [Member] | U.S. Treasury Bills due 5/26/2011 at 0.18%, principal amount $3,500,000 [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Fair Value | 3,497,545 | |||||
Percentage of Net Assets | 7.00% | |||||
U.S. Government Securities [Member] | U.S. Treasury Bills due 9/30/2011 at 0.17%, principal amount $3,300,000 [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Fair Value | 3,297,239 | |||||
Percentage of Net Assets | 6.60% | |||||
U.S. Government Securities [Member] | U.S. Futures Positions [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Unrealized Gain (Loss) on Open Long Futures Contracts, Net | (2,745,949) | |||||
Percentage of Net Assets | (7.28%) | |||||
U.S. Government Securities [Member] | U.S. Futures Positions [Member] | Agricultural [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Unrealized Gain (Loss) on Open Long Futures Contracts, Net | (37,107) | [1] | ||||
Percentage of Net Assets | (0.10%) | [1] | ||||
U.S. Government Securities [Member] | U.S. Futures Positions [Member] | Agricultural [Member] | 33 December 2011 NYC Cotton Contracts [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Unrealized Gain (Loss) on Open Long Futures Contracts, Net | (508,695) | |||||
Percentage of Net Assets | (1.35%) | |||||
U.S. Government Securities [Member] | U.S. Futures Positions [Member] | Agricultural [Member] | Other [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Unrealized Gain (Loss) on Open Long Futures Contracts, Net | (1,068,442) | [1] | ||||
Percentage of Net Assets | (2.83%) | [1] | ||||
U.S. Government Securities [Member] | U.S. Futures Positions [Member] | Metals [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Unrealized Gain (Loss) on Open Long Futures Contracts, Net | (310,790) | [1] | ||||
Percentage of Net Assets | (0.82%) | [1] | ||||
U.S. Government Securities [Member] | U.S. Futures Positions [Member] | Metals [Member] | 13 November 2011 LME Copper Contracts [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Unrealized Gain (Loss) on Open Long Futures Contracts, Net | (418,538) | |||||
Percentage of Net Assets | (1.11%) | |||||
U.S. Government Securities [Member] | U.S. Futures Positions [Member] | Metals [Member] | Other [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Unrealized Gain (Loss) on Open Long Futures Contracts, Net | (1,227,172) | [1] | ||||
Percentage of Net Assets | (3.25%) | [1] | ||||
U.S. Government Securities [Member] | U.S. Futures Positions [Member] | Energy [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Unrealized Gain (Loss) on Open Long Futures Contracts, Net | (858,022) | [1] | ||||
Percentage of Net Assets | (2.28%) | [1] | ||||
Futures Contracts [Member] | U.S. Futures Positions [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Unrealized Gain (Loss) on Open Long Futures Contracts, Net | 2,561,022 | [1] | ||||
Percentage of Net Assets | 5.13% | [1] | ||||
Futures Contracts [Member] | U.S. Futures Positions [Member] | Agricultural [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Unrealized Gain (Loss) on Open Long Futures Contracts, Net | 1,719,954 | [1] | ||||
Percentage of Net Assets | 3.45% | [1] | ||||
Futures Contracts [Member] | U.S. Futures Positions [Member] | Metals [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Unrealized Gain (Loss) on Open Long Futures Contracts, Net | 361,250 | [1] | ||||
Percentage of Net Assets | 0.72% | [1] | ||||
Futures Contracts [Member] | U.S. Futures Positions [Member] | Energy [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Unrealized Gain (Loss) on Open Long Futures Contracts, Net | 479,818 | [1] | ||||
Percentage of Net Assets | 0.96% | [1] | ||||
Futures Contracts [Member] | Foreign Futures Positions [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Unrealized Gain (Loss) on Open Long Futures Contracts, Net | (1,682,817) | 564,502 | [1] | |||
Percentage of Net Assets | (4.46%) | 1.13% | [1] | |||
Futures Contracts [Member] | Foreign Futures Positions [Member] | Agricultural [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Unrealized Gain (Loss) on Open Long Futures Contracts, Net | 79,167 | [1] | ||||
Percentage of Net Assets | 0.16% | [1] | ||||
Futures Contracts [Member] | Foreign Futures Positions [Member] | Metals [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Unrealized Gain (Loss) on Open Long Futures Contracts, Net | $ 485,335 | [1] | ||||
Percentage of Net Assets | 0.97% | [1] | ||||
|
Condensed Schedule Of Investments (Parenthetical) (U.S. Government Securities [Member], USD $) | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Schedule of Investments [Line Items] | ||
Trading Securities, Cost | $ 30,042,061 | $ 29,077,799 |
U.S. Treasury Bills due 10/20/2011 at 0.22% principal amount $1,000,000 [Member] | ||
Schedule of Investments [Line Items] | ||
Treasury Bill Effective Yield | 0.22% | 0.22% |
Face Value | 1,000,000 | 1,000,000 |
U.S. Treasury Bills due 11/17/2011 at 0.21%, principal amount $2,000,000 [Member] | ||
Schedule of Investments [Line Items] | ||
Treasury Bill Effective Yield | 0.21% | |
Face Value | 2,000,000 | |
U.S. Treasury Bills due 12/15/2011 at 0.24%, principal amount $2,500,000 [Member] | ||
Schedule of Investments [Line Items] | ||
Treasury Bill Effective Yield | 0.24% | |
Face Value | 2,500,000 | |
U.S. Treasury Bills due 2/9/2012 at 0.19%, principal amount $2,510,000 [Member] | ||
Schedule of Investments [Line Items] | ||
Treasury Bill Effective Yield | 0.19% | |
Face Value | 2,510,000 | |
U.S. Treasury Bills due 3/8/2012 at 0.26%, principal amount $2,330,000 [Member] | ||
Schedule of Investments [Line Items] | ||
Treasury Bill Effective Yield | 0.26% | |
Face Value | 2,330,000 | |
U.S. Treasury Bills due 4/5/2012 at 0.20%, principal amount $3,300,000 [Member] | ||
Schedule of Investments [Line Items] | ||
Treasury Bill Effective Yield | 0.20% | |
Face Value | 3,300,000 | |
U.S. Treasury Bills due 5/3/2012 at 0.08%, principal amount $4,070,000 [Member] | ||
Schedule of Investments [Line Items] | ||
Treasury Bill Effective Yield | 0.08% | |
Face Value | 4,070,000 | |
U.S. Treasury Bills due 5/31/2012 at 0.18%, principal amount $3,678,000 [Member] | ||
Schedule of Investments [Line Items] | ||
Treasury Bill Effective Yield | 0.18% | |
Face Value | 3,678,000 | |
U.S. Treasury Bills due 6/28/2012 at 0.17%, principal amount $3,300,000 | ||
Schedule of Investments [Line Items] | ||
Treasury Bill Effective Yield | 0.17% | |
Face Value | 3,300,000 | |
U.S. Treasury Bills due 7/26/2012 at 0.06%, principal amount $2,000,000 | ||
Schedule of Investments [Line Items] | ||
Treasury Bill Effective Yield | 0.06% | |
Face Value | 2,000,000 | |
U.S. Treasury Bills due 8/23/2012 at 0.09%, principal amount $3,400,000 | ||
Schedule of Investments [Line Items] | ||
Treasury Bill Effective Yield | 0.09% | |
Face Value | 3,400,000 | |
U.S. Treasury Bills due 7/28/2011 at 0.17% principal amount $3,400,000 [Member] | ||
Schedule of Investments [Line Items] | ||
Treasury Bill Effective Yield | 0.17% | |
Face Value | 3,400,000 | |
U.S. Treasury Bills due 8/25/2011 at 0.18% principal amount $2,000,000 [Member] | ||
Schedule of Investments [Line Items] | ||
Treasury Bill Effective Yield | 0.18% | |
Face Value | 2,000,000 | |
U.S. Treasury Bills due 9/22/2011 at 0.20% principal amount $2,000,000 [Member] | ||
Schedule of Investments [Line Items] | ||
Treasury Bill Effective Yield | 0.20% | |
Face Value | 2,000,000 | |
U.S. Treasury Bills due 1/13/2011 at 0.08%, principal amount $2,800,000 [Member] | ||
Schedule of Investments [Line Items] | ||
Treasury Bill Effective Yield | 0.08% | |
Face Value | 2,800,000 | |
U.S. Treasury Bills due 1/27/2011 at 0.11%, principal amount $5,500,000 [Member] | ||
Schedule of Investments [Line Items] | ||
Treasury Bill Effective Yield | 0.11% | |
Face Value | 5,500,000 | |
U.S. Treasury Bills due 2/24/2011 at 0.12%, principal amount $2,300,000 [Member] | ||
Schedule of Investments [Line Items] | ||
Treasury Bill Effective Yield | 0.12% | |
Face Value | 2,300,000 | |
U.S. Treasury Bills due 4/21/2011 at 0.16%, principal amount $3,300,000 [Member] | ||
Schedule of Investments [Line Items] | ||
Treasury Bill Effective Yield | 0.16% | |
Face Value | 3,300,000 | |
U.S. Treasury Bills due 5/26/2011 at 0.18%, principal amount $3,500,000 [Member] | ||
Schedule of Investments [Line Items] | ||
Treasury Bill Effective Yield | 0.18% | |
Face Value | 3,500,000 | |
U.S. Treasury Bills due 9/30/2011 at 0.17%, principal amount $3,300,000 [Member] | ||
Schedule of Investments [Line Items] | ||
Treasury Bill Effective Yield | 0.17% | |
Face Value | $ 3,300,000 |
Document And Entity Information | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2011 |
Document Fiscal Year Focus | 2011 |
Document Fiscal Period Focus | Q3 |
Entity Registrant Name | ROGERS INTERNATIONAL RAW MATERIALS FUND LP |
Entity Central Index Key | 0001118384 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Smaller Reporting Company |
Entity Common Stock, Shares Outstanding | 0 |
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Partnership Capital And Withdrawals | 9 Months Ended |
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Sep. 30, 2011 | |
Partnership Capital And Withdrawals [Abstract] | |
Partnership Capital And Withdrawals | Note 5. Partnership Capital and Withdrawals: The Partnership accepts contributions as of the close of business on the last business day of each month for investment on the first day of the next succeeding month. The General Partner may accept or reject contributions and waive the minimum contribution amounts in its sole discretion. Effective November 1, 2010, the Partnership began accepting contributions for Series B units. The Partnership has not issued Series A units since October 1, 2005. The purchase price of a unit is the net asset value per unit as of the end of each calendar month. Net asset value per unit is calculated as the net asset value at month-end divided by the number of outstanding units. The Partnership accepts withdrawals on a monthly basis. Requests for withdrawal should be received by the General Partner no later than six business days prior to the end of the month in which an investor chooses to withdraw. Requests for withdrawal should be sent to the General Partner by email, fax, or overnight courier. |
Interim Financial Statements | 9 Months Ended |
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Sep. 30, 2011 | |
Interim Financial Statements [Abstract] | |
Interim Financial Statements | Note 10. Interim Financial Statements: The statements of financial condition, including the condensed schedule of investments, as of September 30, 2011, the statement of operations and changes in partners' capital (net assets) for the three and nine months ended September 30, 2011 and 2010 and the accompanying notes to the financial statements are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP may be omitted pursuant to such rules and regulations. In the opinion of the General Partner, such financial statements and accompanying disclosures reflect all adjustments, which were of a normal and recurring nature, necessary for a fair presentation of the financial position as of September 30, 2011, results of operations and changes in partner's capital (net assets) for the three and nine months ended September 30, 2011 and 2010. The results of operations for three and nine months ended September 30, 2011 and 2010 are not necessarily indicative of the results to be expected for the full year or any other period. These financial statements should be read in conjunction with the audited financial statements and the notes thereto included in the Partnership's Form 10-K as filed with the SEC. |
Significant Accounting Policies | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1. Significant Accounting Policies: Nature of Business and Organization: Rogers International Raw Materials Fund, L.P. (the "Partnership") is an Illinois Limited Partnership that was established in May 2000. The Partnership trades a portfolio primarily of commodity futures and forward contracts, principally on recognized exchanges. The Partnership may also purchase contracts in the over the counter marketplace under certain circumstances. The Partnership invests and trades exclusively on the "long side" of the market. The Partnership's investment strategy is designed to replicate the Rogers International Commodity Index ® (the "Index") and positions are rebalanced monthly to maintain the Index's relative weightings. James B. Rogers designed the Index. The Partnership commenced trading during November 2001 with assets raised from the offering of its original units of limited partnership interest, now referred to as "Series A" units, and offered Series A units through October 2005. The Partnership began accepting contributions for Series B units in November 2010. Series A units and Series B units are identical with respect to their participation in the profits and losses of the Partnership; however, Series B units do not participate in any Partnership expenses or recoveries related to the bankruptcy of Refco Inc. and its affiliates. The Partnership's General Partner and commodity pool operator is Beeland Management Company, L.L.C. (the "General Partner"). Accounting Policies: The Partnership follows U.S. Generally Accepted Accounting Principles ("GAAP"), as established by the Financial Accounting Standards Board ("FASB"), to ensure consistent reporting of financial condition and results of operation. Net Assets: The valuation of net assets includes open commodity futures contracts owned by the Partnership, if any, at the end of the period. The unrealized gain or loss on these contracts has been calculated based on closing prices on the last business day of each month. Net asset value is determined by subtracting liabilities from assets, which also equals partners' capital. Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents: Cash and cash equivalents include highly liquid instruments with original maturities of three months or less at the date of acquisition. Cash and cash equivalents represent amounts on deposit with a broker to facilitate payment of expenses and partner withdrawals. Fair Value of Financial Instruments: Securities and derivative financial instruments are recorded at fair value. Deposits with Brokers: The Partnership deposits assets with brokers subject to Commodity Futures Trading Commission regulations and various exchange and broker requirements. Margin requirements are satisfied by the deposit of cash with such brokers. The Partnership earns interest income on its assets deposited with the brokers. Revenue Recognition: Futures and exchange traded forward contracts are recorded on a trade date basis and realized gains or losses are recognized when contracts are liquidated. Unrealized gains or losses on open contracts (the difference between contract trade price and market price) are reported in the statements of financial condition as a net unrealized gain or loss, as there exists a right of offset of unrealized gains or losses. Any change in net unrealized gain or loss from the preceding period is reported in the statement of operations. Interest Income Recognition: The Partnership records interest income on the accrual basis.
Foreign Currency Translation: Foreign currency is translated into U.S. dollars at the exchange rate published by the carrying broker or futures commission merchant on the last business day of each month. The Partnership does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized trading gains or losses. Ongoing Offering Expenses: Ongoing offering expenses are accrued on an ongoing basis and charged to expense as incurred. Income Taxes: No provision for income taxes has been made in these financial statements as each partner is individually responsible for reporting income or loss based on its respective share of the Partnership's income and expenses as reported for income tax purposes. The Partnership is generally not subject to examination by U.S. federal or state taxing authorities for tax years before 2007. The Partnership has no material uncertain tax positions, and accordingly, has not recorded a liability for the payment of interest or penalties through September 30, 2011. Profit and Loss Allocation: Profits and losses of the Partnership are allocated by series based on the number of units held. Withdrawals Payable: Withdrawals approved by the General Partner prior to month-end with a fixed effective date and fixed amount are recorded as withdrawals payable as of month-end (See Note 5). Statement of Cash Flows: The Partnership has elected not to provide a statement of cash flows as permitted by GAAP as all of the following conditions have been met: -During the year, substantially all of the Partnership's investments were highly liquid; -Substantially all of the Partnership's investments are carried at fair value; -The Partnership had little or no debt during the year; -The Partnership's financial statements include a statement of changes in partners' capital (net assets). Recent Account Pronouncements: In May 2011, the FASB issued ASU No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (ASU 2011-04). This ASU represents the converged guidance of the FASB and the IASB (the Boards) on fair value measurement. The collective efforts of the Boards and their staffs, reflected in ASU 2011-04, have resulted in common requirements for measuring fair value and for disclosing information about fair value measurements, including a consistent meaning of the term "fair value" and enhanced disclosure requirements for investments that do not have readily determinable fair values. The Boards have concluded the common requirements will result in greater comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with U.S. GAAP and IFRS. This amendment is effective for periods beginning after December 15, 2011. The Partnership is currently evaluating the impact of ASU 2011-04 on future financial statements. |
Financial Highlights | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Financial Highlights [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Highlights | Note 7. Financial Highlights: Financial highlights for limited partners for the three and nine months ended September 30, 2011 and 2010 are as follows:
The above ratios were calculated for the partners taken as a whole. The computation of such ratios was not based on the amount of expenses assessed and income allocated to an individual partner's capital account, which may vary from these ratios based on the timing of capital transactions (see Note 5).
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Litigation | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Litigation [Abstract] | |
Litigation | Note 8. Litigation: The Partnership is a beneficiary of a Litigation Trust which is seeking recoveries from third parties, related to the 2005 bankruptcy of Refco, Inc. and numerous affiliates (the "Refco Bankruptcy"). As of September 30, 2011, the Partnership has received the full value of its allowed claims in the Refco Bankruptcy and has recovered approximately $4.8 million in excess of its allowed securities claim in the Refco Bankruptcy and may receive additional Refco Bankruptcy related recoveries, although there can be no assurance that it will or that any additional recoveries will be material. Management is unable to estimate the amounts of any such additional recoveries. All Refco Bankruptcy related recoveries received by the Partnership, including excess recoveries except as described below, have been allocated among all partners in the Partnership who were partners as of October 31, 2005, on a pro-rata basis as October 31, 2005, with redeemed partners receiving cash distributions. Cash distributions to redeemed partners from excess recoveries totaled approximately $494,000 for the year ended December 31, 2010. No excess distributions have been made in 2011. Pursuant to Section 12.2 of the Partnership's Agreement of Limited Partnership, the Partnership reimbursed the General Partner and James B. Rogers approximately $400,000 and $428,000, respectively, from excess recoveries for legal costs incurred by the General Partner and James B. Rogers defending against suits related to the Refco Bankruptcy in 2010 and 2009. Included in administrative fees and other fees payable are amounts due under these arrangements of $0 and $249,542 at September 30, 2011 and December 31, 2010, respectively. The Partnership has reserved $30,000 of the excess Refco related recoveries to apply to expenses incurred to administer ongoing communication with, and distributions and reporting to, redeemed limited partners with respect to Refco related recoveries received by the Partnership. These expenses include but are not limited to professional fees, printing, postage, and administration fees. At September 30, 2011, $26,934 of these expenses is included in administrative and other fees payable on the statement of financial condition. At September 30, 2011 and December 31, 2010, approximately $1,065,102 and $208,000 of excess Refco related recoveries was payable to redeemed limited partners. These amounts are included in withdrawals payable for those periods ended. |
Financial Instruments With Off-Balance Sheet Credit And Market Risk | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Financial Instruments With Off-Balance Sheet Credit And Market Risk [Abstract] | |
Financial Instruments With Off-Balance Sheet Credit And Market Risk | Note 6. Financial Instruments with Off-Balance Sheet Credit and Market Risk: The Partnership is involved in trading activities that may have market and/or credit risk. Financial instruments employed in the Partnership's operations may have market and/or credit risk in excess of the amounts recorded in the statement of financial condition. Market Risk—Market risks arise from changes in the market value of financial instruments. Theoretically, the Partnership's exposure is equal to the notional contract value of futures contracts entered. Exposure to market risk is 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 are traded. Credit Risk—Credit risk arises 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 is generally the net unrealized gain on the open positions plus the value of the margin or collateral held by the counterparty. Exchange-traded financial instruments generally do not give rise to significant counterparty exposure due to the cash settlement procedures for daily market movements and the margin requirements of individual exchanges. Financial instruments traded off-exchange give rise to the risk of the failure of, or the inability or refusal to perform by, the counterparties to such trades. Concentration of Credit Risk—The Partnership clears all of its futures trades through one clearing broker, MF Global, Inc. In the event this counterparty does not fulfill its obligations or becomes insolvent, the Partnership may be exposed to losses. The Partnership has a substantial portion of its assets on deposit with financial institutions in connection with its cash management activities. In the event of a financial institution's insolvency, recovery of the Partnership's assets on deposit may be limited to the amount of insurance or other protection afforded such deposits. The Partnership attempts to minimize this credit risk by monitoring the creditworthiness of the clearing broker and financial institutions. |
Statements Of Changes In Partners' Capital (Net Assets) (USD $) | General Partner [Member] | Limited Partners Series A [Member] | Limited Partners Series B [Member] | Limited Partner [Member] | Total |
---|---|---|---|---|---|
Partners' capital (net assets) at Dec. 31, 2009 | $ 660,293 | $ 51,416,343 | $ 51,416,343 | $ 52,076,636 | |
Partners' capital (net assets), Units at Dec. 31, 2009 | 4,034 | 314,149 | |||
Net income (loss) | 7,002 | 117,819 | 117,819 | 124,821 | |
Withdrawals | (7,261,994) | (7,261,994) | (7,261,994) | ||
Withdrawals, Units | (46,488) | ||||
Partners' capital (net assets) at Sep. 30, 2010 | 667,295 | 44,272,168 | 44,272,168 | 44,939,463 | |
Partners' capital (net assets), Units at Sep. 30, 2010 | 4,034 | 267,661 | |||
Partners' capital (net assets) at Dec. 31, 2010 | 770,838 | 48,829,926 | 339,077 | 49,169,003 | 49,939,841 |
Partners' capital (net assets), Units at Dec. 31, 2010 | 4,034 | 255,561 | 1,780 | ||
Contributions | 487,082 | 487,082 | 487,082 | ||
Contributions, Units | 2,440 | ||||
Net income (loss) | (92,871) | (4,720,875) | (125,219) | (4,846,094) | (4,938,965) |
Withdrawals | (7,747,209) | (38,530) | (7,785,739) | (7,785,739) | |
Withdrawals, Units | (39,185) | (218) | |||
Partners' capital (net assets) at Sep. 30, 2011 | $ 677,967 | $ 36,361,842 | $ 662,410 | $ 37,024,252 | $ 37,702,219 |
Partners' capital (net assets), Units at Sep. 30, 2011 | 4,034 | 216,376 | 4,002 |
Fair Value Measurements | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Note 2. Fair Value Measurements: As described in Note 1, the Partnership records its investments at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Partnership utilizes valuation techniques to maximize the use of observable inputs and minimize the use of unobservable inputs. Inputs are broadly defined as assumptions market participants would use in pricing an asset or liability. Assets and liabilities recorded at fair value are categorized within the fair value hierarchy based upon the level of judgment associated with the inputs used to measure their value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: Level 1. Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2. Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly; and fair value is determined through the use of models or other valuation methodologies. Level 3. Inputs are unobservable for the asset or liability and include situations where there is little, if any, market activity for the asset or liability. The inputs into the determination of fair value are based upon the best information in the circumstances and may require significant management judgment or estimation. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Partnership's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. The following section describes the valuation techniques used by the Partnership to measure different financial instruments at fair value and includes the level within the fair value hierarchy in which the financial instrument is categorized. The fair values of exchange traded futures contracts are based upon exchange settlement prices. Money market funds are valued using quoted market prices. U.S. Government securities are stated at cost plus accrued interest, which approximates fair value based on quoted prices for identical assets in an active market. These financial instruments are classified as Level 1 of the fair value hierarchy. The following table summarizes the Partnership's assets measured at fair value on a recurring basis as of September 30, 2011 and December 31, 2010 using the fair value hierarchy:
At September 30, 2011 and December 31, 2010 and for the nine months ended September 30, 2011 and 2010 there were no Level 2 or Level 3 assets or liabilities. In addition, substantially all of the Partnership's other assets and liabilities are considered financial instruments and are reflected at fair value, or at carrying amounts that approximate fair value because of the short maturity of the instruments. |
Derivative Transactions | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Transactions | Note 3. Derivative Transactions Qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments, and disclosures about credit-risk related contingent features in derivative agreements are presented. The Partnership's business is the trading of futures contracts to replicate the Index. The Partnership does not consider any derivative instruments to be hedging instruments, as this term is generally understood under FASB guidance. As September 30, 2011 and December 31, 2010, the Partnership's derivative contracts had the following impact on the statements of financial condition:
*The net fair value of all asset and liability derivatives is included in equity in broker trading accounts in the statements of financial condition. Trading revenue from derivative contracts for the three and nine months ended September 30, 2011 and 2010:
Trading revenue is exclusive of brokerage commissions. For the three and nine months ended September 30, 2011 and 2010, the monthly average number of contracts bought and sold was 905, 1,070, 1,121 and 1,368, respectively. |
Subsequent Events | 9 Months Ended |
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Sep. 30, 2011 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11. Subsequent Events: On October 31, 2011, MF Global Holdings Ltd., the parent Company of MF Global Inc., then the Partnership's futures commission merchant, filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code. The Securities and Exchange Commission and CFTC agreed that a SIPC-lead bankruptcy of MF Global Inc. would be the safest and most prudent course of action to protect customer accounts and assets and SIPC initiated the liquidation of MF Global Inc. under the Securities Investor Protection Act. As of October 31, 2011 the Partnership held approximately 12.6% of partners' capital in customer segregated and secured accounts at MF Global Inc. The CFTC has stated that there is a shortfall in customer segregated accounts, although as of November 14, 2011, the true extent of such shortfall remains unknown. Although some assets have been transferred from MF Global Inc. to the Partnership's new futures commission merchant, ADM Investors Services, Inc., as of November 14, 2011, the General Partner believes that a portion of the Partnership's assets are, and may remain for some time, illiquid, but does not have sufficient information to estimate accurately how long such assets may be unavailable to the Partnership or the percentage of assets that may not be recovered, if any. Notwithstanding the foregoing, the Partnership is currently continuing its operations tracking the Index and anticipates continuing to do so for the foreseeable future. |
Agreements And Related-Party Transactions | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Agreements And Related-Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agreements And Related-Party Transactions | Note 4. Agreements and Related-Party Transactions: The Limited Partnership Agreement vests all responsibility and powers for the management of the business and affairs of the Partnership with the General Partner, Beeland Management Company, L.L.C., including trading decisions. The Partnership pays a monthly management fee to the General Partner equal to 0.08333% of the net assets of the Partnership at the close of the preceding month (1.00% per annum). The Partnership is responsible for the administrative and trading expenses related to its operations. The General Partner may incur certain expenses on behalf of the Partnership and charge the Partnership for its allocable portion of these expenses. Uhlmann Price Securities L.L.C. ("Uhlmann"), a party related to the General Partner by reason of common management, acts as the selling group manager for the Partnership. The Partnership pays Uhlmann a share of selling fees when units are sold by additional selling agents. Selling fees of up to 2% of the gross offering proceeds (which includes a 0.50% reallowance to Uhlmann) are charged to partners' capital upon issuance of Series B Partnership units. In addition, there is an annual trailing servicing fee of up to 1% of the net asset value of the specific partner's capital account payable to the soliciting broker-dealer for ongoing investor services. For all Series B units sold, the total trailing servicing fee is not to exceed 7.99% of the gross offering proceeds of the units sold. The Price Futures Group, Inc. ("PFG"), a related party to the General Partner through common management, acts as the introducing broker for the Partnership, whereby the trading accounts of the Partnership are introduced to the Partnership's clearing broker. A portion of the brokerage fee paid by the Partnership for clearing transactions is paid to PFG by the clearing broker. Fund Dynamics, LLC, an affiliate of the General Partner through common management, acts as the Partnership's administrator. Fund Dynamics, LLC calculates both the daily and monthly Net Asset Value ("NAV"), prepares the monthly accounting package, and prepares monthly investor statements. A summary of fees charged by related parties to the Partnership is as follows:
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Statements Of Changes In Partners' Capital (Parenthetical) (USD $) | 9 Months Ended | |
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Sep. 30, 2011 | Sep. 30, 2010 | |
General Partner [Member] | ||
Net Asset Value per Unit | $ 168.05 | $ 165.40 |
Limited Partners Series A [Member] | ||
Net Asset Value per Unit | $ 168.05 | $ 165.40 |
Limited Partners Series B [Member] | ||
Net Asset Value per Unit | $ 165.46 |
Indemnifications | 9 Months Ended |
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Sep. 30, 2011 | |
Indemnifications [Abstract] | |
Indemnifications | Note 9. Indemnifications: In the normal course of business, the Partnership enters into contracts and agreements that contain a variety of representations and warranties, both of which provide general indemnifications. The Partnership's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Partnership that have not yet occurred. The Partnership expects the risk of any future obligation under these indemnifications to be remote. |
Statements Of Financial Condition (USD $) | Sep. 30, 2011 | Dec. 31, 2010 | |||
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ASSETS | |||||
U.S. Government securities, at fair value | $ 30,064,037 | $ 29,082,108 | |||
Cash at brokers | 9,071,061 | 8,027,725 | |||
Unrealized gain (loss) on open futures contracts, net | (4,428,766) | 3,125,524 | [1] | ||
Total equity in brokers trading accounts | 34,706,332 | 40,235,357 | |||
Cash and cash equivalents | 5,055,745 | 11,189,077 | |||
Interest receivable | 553 | ||||
Total assets | 39,762,077 | 51,424,987 | |||
LIABILITIES | |||||
Brokerage commissions payable | 4,356 | 4,944 | |||
Accrued management fees - General Partner | 37,399 | 37,973 | |||
Administrative and other fees payable | 149,611 | 466,818 | |||
Subscriptions received in advance | 7,000 | 56,581 | |||
Withdrawals payable | 1,861,492 | 918,830 | |||
Total liabilities | 2,059,858 | 1,485,146 | |||
PARTNERS' CAPITAL (NET ASSETS) | |||||
Partners' capital (net assets) | 37,702,219 | 49,939,841 | |||
Total liabilities and partners' capital (net assets) | $ 39,762,077 | $ 51,424,987 | |||
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