10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarter ended:   March 31, 2018

or

o 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:   000-51651

WORLD MONITOR TRUST III – SERIES J

(Exact name of the Registrant as specified in its charter)

Delaware	20-2446281
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

680 Fifth Avenue, Suite 1901, New York, New York	10019
(Address of principal executive offices)	(Zip Code)

212-596-3480

(The Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

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 (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No o

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 o

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 “accelerated filer”, “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o	Accelerated filer o
Non-accelerated filer x	Smaller Reporting Company o

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o No x

WORLD MONITOR TRUST III – SERIES J

INDEX TO QUARTERLY REPORT ON FORM 10-Q

MARCH 31, 2018

		Page
PART I – FINANCIAL INFORMATION		3
Item 1.	Condensed Financial Statements	4
	World Monitor Trust III – Series J
	Condensed Statements of Financial Condition as of March 31, 2018 (Unaudited) and December 31, 2017	5
	Condensed Schedules of Investments as of March 31, 2018 (Unaudited) and December 31, 2017	6
	Condensed Statements of Operations (Unaudited) for the Three Months Ended March 31, 2018 and 2017	7
	Condensed Statements of Changes in Unitholders’ Capital (Unaudited) for the Three Months Ended March 31, 2018 and 2017	8
	Notes to Condensed Financial Statements (Unaudited)	9-21
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32
Item 4.	Controls and Procedures	34
PART II – OTHER INFORMATION		35
Item 1.	Legal Proceedings	35
Item 1.A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 3.	Defaults Upon Senior Securities	36
Item 4.	Mine Safety Disclosures	36
Item 5.	Other Information	36
Item 6.	Exhibits	36

2

PART I – FINANCIAL INFORMATION

Item 1. Condensed Financial Statements

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK;
CONDENSED FINANCIAL STATEMENTS TO FOLLOW]

3

WORLD MONITOR TRUST III – SERIES J

CONDENSED FINANCIAL STATEMENTS

March 31, 2018 (Unaudited)

4

WORLD MONITOR TRUST III – SERIES J

CONDENSED STATEMENTS OF FINANCIAL CONDITION

March 31, 2018 (Unaudited) and December 31, 2017

	March 31, 2018		December 31, 2017
ASSETS
Cash and cash equivalents (see Note 2)	$	1,198,120	$	1,533,764
Investment in securities, at fair value (cost $164,322 and $163,284 at March 31, 2018 and December 31, 2017, respectively)		163,529		163,470
Investment in Private Funds, at fair value		4,464,739		4,736,849
Receivable from Managing Member		23,612		52,435
Total assets	$	5,850,000	$	6,486,518
LIABILITIES
Accrued expenses payable	$	52,170	$	55,217
Service fees payable (see Note 5)		26,712		34,670
Redemptions payable		254,786		220,554
Total liabilities		333,668		310,441
UNITHOLDERS’ CAPITAL (Net Asset Value)
Class I Units:
Unitholders’ Units – 34,122.031 and 37,528,608 Units outstanding at March 31, 2018 and December 31, 2017, respectively		2,151,047		2,521,293
Class II Units:
Unitholders’ Units – 5,106.741 and 5,253.004 Units outstanding at March 31, 2018 and December 31, 2017, respectively		394,548		430,526
Class III Units:
Unitholders’ Units – 34,347.716 and 35,009.245 Units outstanding at March 31, 2018 and December 31, 2017, respectively		2,970,737		3,224,258
Total Unitholders’ capital (Net Asset Value)		5,516,332		6,176,077
Total liabilities and Unitholders’ capital	$	5,850,000	$	6,486,518
NET ASSET VALUE PER UNIT
Class I	$	63.04	$	67.18
Class II	$	77.26	$	81.96
Class III	$	86.49	$	92.10

See accompanying notes.

5

WORLD MONITOR TRUST III – SERIES J

CONDENSED SCHEDULES OF INVESTMENTS

March 31, 2017 (Unaudited) and December 31, 2017

	March 31, 2018					December 31, 2017
	Fair Value					Fair Value
	as a % of					as a % of
	Unitholders’					Unitholders’
	Capital			Fair Value		Capital			Fair Value
Investment in securities:
Publicly-traded mutual funds:
DoubleLine Low Duration Bond Fund (shares 16,402.107 and 16,398.136 at March 31, 2018 and December 31, 2017, respectively)		2.96	%		163,529		2.65	%		163,740
Total investment in securities (cost $164,322 and $163,284 at March 31, 2018 and December 31, 2017, respectively)		2.96	%	$	163,529		2.65	%	$	163,740
Investment in Private Funds:
ADG Systematic Macro Feeder Fund (530) LLC		29.11	%		1,606,059		24.71	%		1,526,112
Fort Contrarian Feeder Fund (510) LLC		20.90	%		1,152,802		19.84	%		1,225,398
QIM Feeder Fund (526) LLC		30.92	%		1,705,878		32.15	%		1,985,339
Total investment in Private Funds		80.93	%	$	4,464,739		76.70	%	$	4,736,849

See accompanying notes.

6

WORLD MONITOR TRUST III – SERIES J

CONDENSED STATEMENTS OF OPERATIONS

For the Three Months Ended March 31, 2018 and 2017 (Unaudited)

	Three months ended March 31,
	2018			2017
INVESTMENT INCOME
Interest income	$	0		$	0
Dividend income		1,038			8,427
Total investment income		1,038			8,427
EXPENSES
Management fees to Managing Owner		27,550			31,073
Managing Owner interest earned on Certain Investment Funds (see Note 4)		59			10,076
Service fees - Class I Units (see Note 5)		33,720			55,855
Sales commission		7,022			19,257
Operating expenses		59,379			87,883
Total expenses		127,730			204,144
General and administrative expenses borne by the Managing Member and affiliates		23,612			4,756
Net expenses		104,118			199,388
Net investment loss		(103,080	)		(190,961	)
REALIZED AND UNREALIZED GAIN OR (LOSS) ON INVESTMENTS
Net realized gain (loss) on investment in securities		0			(2,694	)
Net change in unrealized (depreciation) appreciation on investment in securities		(979	)		7,564
Net gain (loss) from investment in securities		(979	)		4,870
Total gain (loss) from Investment in Affiliated Funds		0			264,967
Total change in appreciation (depreciation) from Investment in Private Funds		(272,110	)		0
Total gain (loss) on Investment in Private and Affiliated Funds		(272,110	)		264,967
Total gain (loss) on investments		(273,089	)		269,837
NET INCOME (LOSS)	$	(376,169	)	$	78,876
NET INCOME (LOSS) PER WEIGHTED AVERAGE UNITHOLDER
Net income (loss) per weighted average Unitholder
Class I	$	(4.32	)	$	(0.31	)
Class II	$	(4.70	)	$	0.24
Class III	$	(5.64	)	$	2.58
Weighted average number of Units outstanding
Class I		36,052.661			94,484.152
Class II		5,143.307			6,071.706
Class II		34,784.281			41,213.033

See accompanying notes.

7

WORLD MONITOR TRUST III – SERIES J

CONDENSED STATEMENTS OF CHANGES IN UNITHOLDERS’ CAPITAL

For the Three Months Ended March 31, 2018 and 2017 (Unaudited)

	Class I						Class II						Class III
	Unitholders						Unitholders						Unitholders						Total
	Units			Amount			Units			Amount			Units			Amount			Units			Amount
Three months ended March 31, 2018
Unitholders’ capital at December 31, 2017		37,528.62		$	2,521,294			5,253.01		$	430,526			35,009.27		$	3,224,257			77,790.90		$	6,176,077
Subscriptions																							0
Redemptions		(3,406.58	)		(214,379	)		(146.26	)		(11,800	)		(661.53	)		(57,397	)		(4,214.37	)		(283,576	)
Net gain (loss)					(155,868	)					(24,177	)					(196,124	)					(376,169	)
Unitholders’ capital at March 31, 2018		34,122.04		$	2,151,047			5,106.75		$	394,549			34,347.74		$	2,970,736			73,576.53		$	5,516,332
Three months ended March 31, 2017
Unitholders’ capital at December 31, 2016		106,116.03		$	7,858,343			6,395.49		$	567,090			0.00		$	0			112,511.52		$	8,425,433
Subscriptions					0						0			43,908.27			4,390,827			43,908.27			4,390,827
Redemptions		(17,508.21	)		(1,271,403	)		(542.21	)		(47,374	)		(4,400.48	)		(461,886	)		(22,450.90	)		(1,780,663	)
Net gain (loss)					(28,847	)					1,484						106,239						78,876
Unitholders’ capital at March 31, 2017		88,607.82		$	6,558,093			5,853.28		$	521,200			39,507.79		$	4,035,180			133,968.89		$	11,114,473

See accompanying notes.

8

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

Note 1. ORGANIZATION

A. General Description of the Trust

World Monitor Trust III (the “Trust”) is a business trust organized under the laws of Delaware on September 28, 2004. The Trust consisted of four separate and distinct series (“Series”): Series G, H, I and J. Series G, H, I and J commenced operations on December 1, 2005. As of December 31, 2007, Series G, H and I were no longer offered and had been dissolved. Series J will continue to exist unless terminated pursuant to the provisions of Article XIII of the Trust’s Fifth Amended and Restated Declaration of Trust and Trust Agreement (the “Trust Agreement”). The assets of each Series have been segregated from those of the other Series, separately valued and independently managed, and separate financial statements have been prepared for each Series. Each Series was formed to engage in the direct or indirect speculative trading of a diversified portfolio of futures contracts, options on futures contracts and forward currency contracts and may, from time to time, engage in cash and spot transactions. The fiscal year end of Series J is December 31.

Kenmar Preferred Investments, LLC (“Kenmar Preferred” or the “Managing Owner”), a Delaware limited liability company is the managing owner of the Trust and has been delegated administrative authority over the operations of the Trust. As the Managing Owner of the Trust and of each Series, Kenmar Preferred conducts and manages the business of the Trust and each Series.

Clarity Managed Account & Analytics Platform, LLC (“Clarity”), an affiliate of Kenmar Preferred, serves as the managing member for CTA Choice Fund LLC (“CTA Choice”). CTA Choice is a Delaware limited liability company which consists of multiple segregated series, each established pursuant to a separate Certificate of Designation prepared by Clarity. Each series maintains separate and distinct records. The assets associated with each series, and the liabilities and obligations incurred with respect to a particular series are enforceable only against the assets of that series. Effective September 30, 2017 the Registrant terminated investments in CTA Choice.

Kenmar Global Investment Management, LLC (the “Asset Allocator”), an affiliate of the Managing Owner, was the Asset Allocator of CTA Choice prior to March 30, 2016. On March 30, 2016, Kenmar Global Investment Management, LLC was put into liquidation effective December 31, 2015, and Clarity was appointed as the Asset Allocator of CTA Choice. Pursuant to the Investment Management Agreements (formerly Asset Allocation Agreements) between the Managing Owner, the Asset Allocator, and each interestholder, the Asset Allocator determines the trading level of each interestholder’s assets and reallocates among the separate series of CTA Choice as agreed upon with the Trading Advisors. Effective September 30, 2017 the Registrant terminated investments in CTA Choice and by reference the Asset Allocation agreement.

The Trust expects to access the Advisors in the future through various series of Galaxy Plus. Galaxy Plus is an “umbrella fund” having multiple series, each of which is referred to herein as a “Galaxy Fund.” Each Galaxy Fund has its own clearly-defined investment objective and strategies that are implemented by a trading advisor. Gemini Alternative Funds, LLC, a Nebraska limited liability company, is the managing member of Galaxy Plus.

9

WORLD MONITOR TRUST III – SERIES J

 NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

Note 1. ORGANIZATION (CONTINUED)

A. General Description of the Trust (Continued)

Series J allocated a portion of its net assets (“Allocated Assets”) to commodity trading advisors (each, a “Trading Advisor” and collectively, the “Trading Advisors”) through CTA Choice, for which such allocations are rebalanced quarterly. Through September 30, 2017, Series J allocated its Allocated Assets to each Trading Advisor, which managed and made trading decisions with respect to those Allocated Assets (see below table). The Managing Owner may terminate any current Trading Advisor or select new trading advisors from time to time at its sole discretion in order to achieve the goals of Series J. In the future, the Managing Owner may determine to access certain Trading Advisors through separate investee pools.

Each Trading Advisor listed below is referred to herein as an “Private Fund” and collectively referred to herein as the “Private Funds”:

Private Fund	Trading Advisor	Trading Program	Start Date	Termination Date
ADG Systematic Macro Feeder Fund (530) LLC (“ADG”)	ADG Capital Management, L.L.C.	Systematic macro strategy program	10/1/2017
Fort Contrarian Feeder Fund (510) LLC (“FORT”)	Fort L.P.	Systematic, trend-anticipating trading program	10/1/2017
QIM Feeder Fund (526) LLC (“QIM”)	Quantitative Investment Management, L.L.C.	Short to medium-term trading strategy program	10/1/2017

Effective October 1, 2017 the Registrant allocated assets to Galaxy Plus Funds which together with Affiliated Investment Funds (“Registrant Trading Investments”) dependent on the time period the Registrant effects exposure indirectly to various Trading Advisors.

Series J meets the definition of an investment company in accordance with guidance under Accounting Standards Codification Topic 946 “Financial Services – Investment Companies”.

B. Regulation

As a registrant with the Securities and Exchange Commission (“SEC”), the Trust and each Series are subject to the regulatory requirements under the Securities Act of 1933 and the Securities Exchange Act of 1934.

As a commodity pool, the Trust and each Series are subject to the regulations of the Commodity Futures Trading Commission (“CFTC”), an independent agency of the U.S. government which regulates most aspects of the commodity futures industry; rules of the National Futures Association (“NFA”), an industry self-regulatory organization; and the requirements of the various commodity exchanges where the Trust, indirectly through the Registrant Trading Investments, executes transactions.

10

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

Note 1. ORGANIZATION (CONTINUED)

C. The Offering

Series J offered units (the “Units”) in three classes (each, a “Class”) – Class I, Class II and Class III.

Up to $281,250,000 Series J, Class I and $93,750,000 Series J, Class II and $4,390,827 Series J, Class III Units were being offered (totaling $379,390,827) (“Subscription Maximum”). Units were being offered to investors who met certain established suitability standards. Prior to November 30, 2008, investments required a minimum aggregate initial subscription of $5,000 and $2,000 for certain Benefit Plan Investors (including IRAs), although the minimum purchase for any single series was $500.

Effective November 30, 2008, the Board of Directors of the Managing Owner of Series J determined that the Units would no longer be publicly offered and would only be available on a private placement basis to “accredited investors” pursuant to Regulation D under the Securities Act of 1933.

For new subscribers, the minimum initial investment is $25,000 ($10,000 for benefit plan investors (including IRAs). The minimum additional subscription amount for current investors is $5,000.

Series J completed its initial offering on December 1, 2005 with gross proceeds of $31,024,443.

Subscriptions were no longer accepted effective December 2013.

Effective February 1, 2017, KMP Futures Fund I, LLC (“KMPFF”), a Delaware Limited Liability Company contributed all of its assets into Series J. Members in KMPFF received a pro rata in-kind distribution of the Series J units effective February 1, 2017, which resulted for all Members in KMPFF to receive a direct ownership interest in Series J under a new class of units Class III (“Class III”).

D. Exchanges, Redemptions and Termination

Redemptions from Series J are permitted on a monthly basis with no redemption charges applicable to either Class I, Class II or Class III Units.

In the event that the Net Asset Value of a Series, after adjustments for distributions, contributions and redemptions, declines by 50% or more since the commencement of trading activities or the first day of a fiscal year, the Series will automatically terminate. Should the Managing Owner make a determination that Series J’s aggregate net assets in relation to its operating expenses make it unreasonable or imprudent to continue the business of Series J, or, in the exercise of its reasonable discretion, if the aggregate Net Asset Value of Series J as of the close of business on any business day declines below $10 million, the Managing Owner may dissolve Series J.

Although the Net Asset Value is currently below $10 million, as of March 31, 2018, the Managing Owner has not made a determination to terminate Series J.

11

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Basis of Accounting

The condensed statements of financial condition, including the condensed schedules of investments, as of March 31, 2017, the condensed statements of operations for the three months ended March 31, 2018 (“First Quarter 2018”) and for the three months ended March 31, 2017 (“First Quarter 2017”) and the condensed statements of changes in Unitholders’ capital for the First Quarter 2018 and the First Quarter 2017 are unaudited.

In the opinion of the Managing Owner, the condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial position of Series J as of March 31, 2018 and the results of its operations for the First Quarter 2018 and First Quarter 2017. The operating results for these interim periods may not be indicative of the results expected for a full year.

The condensed financial statements of Series J are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Such principles require the Managing Owner 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 condensed financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in Series J’s annual report on Form 10-K filed with the SEC for the year ended December 31, 2017.

The weighted average number of Units outstanding was computed for purposes of disclosing net gain (loss) per weighted average Unitholder. The weighted average number of Units is equal to the number of Units outstanding at period end, adjusted proportionately for Units subscribed and redeemed based on their respective time outstanding during the period.

Investment in securities consists of publicly-traded mutual funds, which are valued using the quoted share price on the last day of the period. Realized gains and losses from investment in securities are determined using the identified cost method. Any change in net unrealized gain or loss from the preceding period is reported in the condensed statements of operations. Dividends are recorded on the ex-dividend date.

Series J has elected not to provide a statement of cash flows since substantially all of Series J’s investments are carried at fair value and classified as Level 1 measurements in the fair value hierarchy table or fair value was determined using the practical expedient method. Series J has little or no debt and a condensed statement of changes in Unitholders’ capital (Net Asset Value) is provided.

Consistent with standard business practice in the normal course of business, Series J has provided general indemnifications to the Managing Owner, the Trading Advisors and others when they act, in good faith, in the best interests of Series J. Series J is unable to develop an estimate of the maximum potential amount of future payments that could potentially result from any hypothetical future claim, but expects the risk of having to make any payments under these general business indemnifications to be remote.

12

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS 

(Unaudited)

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A. Basis of Accounting (Continued)

Series J accounts for financial assets and liabilities using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels: quoted market prices in active markets for identical assets and liabilities (Level 1), inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly (Level 2), and unobservable inputs for the asset or liability (Level 3).

Series J considers its investments in publicly-traded mutual funds to be based on quoted prices in active markets for identical assets (Level 1).

There are no Level 3 investments as of March 31, 2018 or December 31, 2017, nor any portion of the interim periods.

The following tables summarize the assets measured at fair value using the fair value hierarchy. Series J’s investments in affiliated investment funds and private funds are valued based on the net asset value reported by such funds. By adopting ASU 2015-07, the investments in affiliated investment funds and private funds are excluded from the fair value hierarchy below.

March 31, 2018	Level 1		Level 2		Level 3		Total
Assets:
Investment in securities, at fair value	$	163,529	$	0	$	0	$	163,529
December 31, 2017	Level 1		Level 2		Level 3		Total
Assets:
Investment in securities, at fair value	$	163,470	$	0	$	0	$	163,470

B. Cash and Cash Equivalents

Cash and cash equivalents include cash and investments in overnight deposits. Interest income, if any, includes interest on cash and overnight deposits. In the event of a financial institution’s insolvency, recovery of cash on deposit may be limited to account insurance or other protections afforded such deposits. Series J has established procedures to actively monitor market risk and minimize credit risk, although there can be no assurance that it will, in fact, succeed in doing so. The Unitholders bear the risk of loss only to the extent of the market value of their respective investments and, in certain specific circumstances, distributions or redemptions received.

C. Income Taxes

Series J is treated as a partnership for U.S. federal income tax purposes. As such, Series J is not required to provide for, or pay, any U.S. federal or state income taxes. Income tax attributes that arise from its operations are passed directly to the Unitholders including the Managing Owner. Series J may be subject to other state and local taxes in jurisdictions in which it operates.

13

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

C. Income Taxes (Continued)

Series J appropriately recognizes and discloses uncertain tax provisions in their financial statements. Recognition is permitted for each position if, based on its technical merits, it is “more likely than not” that the position will be upheld under audit by tax authorities. The Managing Owner has reviewed Series J’s tax positions for all open years and concluded that no provision for income taxes or expense is required in these condensed financial statements. Series J has elected an accounting policy to classify interest and penalties related to income taxes as interest or other expense. The 2014 through 2017 tax years generally remain subject to examination by U.S. Federal and most tax authorities.

There have been no differences between the tax basis and book basis of assets, liabilities or Unitholders’ capital since inception of Series J.

D. Profit and Loss Allocations and Distributions

Income and expenses (excluding the service fee and upfront sales commissions further discussed in Note 5) are allocated pro rata to the Class I Units, Class II Units and Class III Units monthly based on the Units outstanding during the month. Class I Units are charged with the service fee and upfront sales commission applicable to such Units. Distributions (other than redemptions of Units) may be made at the sole discretion of the Managing Owner on a pro rata basis in accordance with the respective capital balances of the Unitholders. The Managing Owner has not and does not presently intend to make any distributions.

E. Interest

Interest is recorded on an accrual basis.

F. Offering Costs

In accordance with the Trust’s Agreement and Prospectus, the Managing Owner is responsible for the payment of all offering expenses of Series J incurred after the Initial Offering Period (“ongoing offering costs”), provided that the amount of such ongoing offering costs paid by the Managing Owner are subject to reimbursement by the Trust, without interest, in up to 36 monthly payments during each of the first 36 months following the month in which such expenses were paid by the Managing Owner. Through March 31, 2018, the Managing Owner has paid $2,936,640 in ongoing offering costs, of which $2,879,478 has been allocated to Series J. Ongoing offering costs incurred through November 30, 2006 in the amount of $599,062 will not be reimbursed to the Managing Owner. For the period December 1, 2006 through March 31, 2018, the Managing Owner incurred and Series J was allocated ongoing offering costs in the amount of $2,300,021 and $2,280,415, respectively. Of the $2,280,415, allocated to Series J, $635,144 will not be reimbursable to the Managing Owner. Series J will only be liable for payment of ongoing offering costs on a monthly basis. If Series J terminates prior to completion of payment of such amounts to the Managing Owner, the Managing Owner will not be entitled to any additional payments, and Series J will have no further obligation to the Managing Owner. During the First Quarter 2017 and 2018, Series J’s did not incur any offering cost.

14

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited) 

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

G. Investment in Private Funds

The investment in Galaxy Plus Funds is reported at fair value in Series J’s statements of financial condition. As a practical expedient, fair value ordinarily is the fund’s net asset value as determined for the Galaxy Plus Funds in accordance with the fund’s valuation policies and reported at the time of Series J’s valuation by the management of the funds. Generally, the fair value of Series J’s investment in Galaxy Plus Funds represents the amount that Series J could reasonably expect to receive from the Galaxy Plus Funds if Series J’s investment was redeemed at the time of the valuation, based on information reasonably available at the time the valuation is made and that Series J believes to be reliable

H. New Accounting Pronouncement

In May, 2015, the FASB issued Accounting Standards Update No. 2015-07 (“ASU 2015-07”), “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or its Equivalent).” ASU 2015-07 removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using net asset value per share as a practical expedient. The Managing Owner of the Trust adopted ASU 2015-07 as of January 1, 2016. The adoption of ASU 2015-07 did not have a material impact on the Trust’s Financial Statements.

15

WORLD MONITOR TRUST III – SERIES J 

NOTES TO CONDENSED FINANCIAL STATEMENTS 

(Unaudited)

Note 3. RELATED PARTIES

Series J reimburses Kenmar Preferred and its affiliates for services it performs for Series J, which include, but are not limited to: management, legal, accounting, registrar, transfer and assignment functions, investor communications, printing, and other administrative services.

The expenses incurred by Series J for services performed by Kenmar Preferred and its affiliates for Series J were as follows:

Expenses payable to the Managing Owner and its affiliates, which are included in accrued expenses payable on the condensed statements of financial condition as of March 31, 2018 and December 31, 2017 were $9,792 and $12,865 respectively.

	Three months ended March 31,
	2018			2017
Management fees to Managing Owner	$	27,550		$	31,073
Managing Owner interest earned on Certain Investment Funds		59			10,076
Operating expenses		21,481			25,587
		49,090			66,736
General and administrative expense borne by the Managing Owner and its affiliates		(23,612	)		(4,756	)
Total	$	25,478		$	61,980

Note 4. MANAGING OWNER AND AFFILIATES

The Managing Owner is paid a monthly management fee of 1/12^th of 0.5% (0.5% per annum) of Series J’s Net Asset Value at the beginning of each month Class I and Class II (See Note 3). Class III also pays a management fee to the Managing Owner. The Class III management fee and operating expense cap (see Note 3) are both calculated on the Net Asset Value of Class III at rates of 6.0% and 1.5% per annum, respectively. In addition, Class III’s portion of the Service Fees, which are paid by Class III Units, are deducted from the management fee to be paid by Class III Units to the Managing Owner.

Series J invests a portion of the excess cash balances not required for margin through certain investment funds which invest in (i) U.S. government securities (which include any security issued or guaranteed as to principal or interest by the United States), (ii) any certificate of deposit for any of the foregoing, including U.S. treasury bonds, U.S. treasury bills and issues of agencies of the United States government, (iii) corporate bonds or notes, or (iv) other instruments permitted by applicable rules and regulations (collectively, “Certain Investment Funds”). Such excess cash balances were held at US Bancorp Fund Services, LLC as transfer agent for DoubleLine Funds, at March 31, 2018 and December 31, 2017.

16

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS 

(Unaudited)

Note 4. MANAGING OWNER AND AFFILIATES (CONTINUED)

The objective is to obtain a rate of return for Series J that balances risk and return relative to the historically low yields on short term cash deposits with banks and/or brokerage firms. There is no guarantee that the Managing Owner will be successful in investing the excess cash successfully to obtain a greater yield than available on short term cash deposits with banks and/or brokerage firms. The Managing Owner is paid monthly 1/12^th of 50% of the first 1% of the positive returns earned on Series J’s investments in Certain Investment Funds. The calculation is based on Series J’s average annualized Net Asset Value, and any losses related to returns on Certain Investment Funds must first be recovered through subsequent positive returns prior to the Managing Owner receiving a payment. After the calculation of the amount payable to the Managing Owner, Series J will be credited with all additional positive returns (or 100% of any losses) on Series J’s investments in Certain Investment Funds. If at the end of any calendar year, a loss has been incurred on the returns for Certain Investment Funds, then the loss carry forward will reset to zero for the next calendar year with regards to the calculation of the Managing Owner’s portion of Certain Investment Fund’s income. As of March 31, 2018, the loss carry forward amounted to $0. For the First Quarter 2018 and the First Quarter 2017, the Managing Owner’s portion of interest earned on Certain Investment Funds amounted to $59 and $10,076, respectively.

Series J paid a monthly administrative services fee to Clarity for risk management and related services with respect to monitoring the Trading Advisors, indirectly through its investment in Affiliated Investment Funds based on their respective beginning of month Allocated Assets. Investment in affiliated funds and the Clarity agreement have been terminated during the year ended December 31, 2017. For the First Quarter 2018 and the First Quarter 2017, the administrative services fee earned indirectly totaled $0 and $7,856, respectively. Investments in Affiliated Investment Funds ceased September 30, 2017 as the Registrant transitioned to investing in Galaxy Funds.

Note 5. SERVICE FEES AND SALES COMMISSIONS

Series J pays a service fee with respect to Class I Units, monthly in arrears, equal to 1/12^th of 2% (2% per annum) of the Net Asset Value per Unit of the outstanding Class I Units as of the beginning of the month. Series J also pays an initial commission equal to 2% of the initial Net Asset Value per Unit of each Class I Unit sold by the Correspondent Selling Agents (“CSA”), payable on the date such Class I Units are purchased. Commencing with the 13^th month after the purchase of a Class I Unit, the CSAs received an ongoing monthly commission equal to 1/12^th of 2% (2% per annum) of the Net Asset Value per Class I Unit as of the beginning of each month of the Class I Units sold by them.

The Service Fee – Class I Units (as described below) disclosed on the condensed statements of operations represents (i) the monthly 1/12th of 2% of the Net Asset Value per Class I Unit as of the beginning of each month of the Class I Units, (ii) the initial upfront sales commission of 2%, and (iii) a deduction for Series J’s recapture of the 1/12th of 2% service fee on all Units owned for less than 12 months that have received the 2% upfront sales commission and a recapture of the service fee on Units held with no CSA. A portion of the service fee disclosed in the statements of operations represents the monthly on-going trailing compensation paid to service providers ranging from 1/12th of 3.5% (3.5% per annum) to 1/12th of 4.0% (4.0% per annum) of the beginning of month Net Asset Value of the applicable Class III unitholders interests. The services fees are paid by Class III Units and are deducted from the management fee paid to the Managing Owner. For First Quarter 2018, the total fees paid by Class III Units was $46,889 out which $22,850 was paid as management fees to the Managing Owner.

17

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS 

(Unaudited)

Note 5. SERVICE FEES AND SALES COMMISSIONS (CONTINUED)

For the First Quarter 2018 and the First Quarter 2017, the Service Fee – Class I and Class III Units is composed of the following:

	Three months ended March 31,
	2018			2017
Monthly 1/12th of 2% service fee calculated on all Class I and Class III Units	$	34,838		$	35,780
Series J’s recapture on 1/12th of 2% service fee on select Units and recapture of the service fee on Units held with no CSA		(1,118	)		(1,654	)
Total	$	33,720		$	34,126

Kenmar Securities LLC (“Selling Agent”) an affiliate of the Managing Owner is the selling agent for Series J. Series J pays the Selling Agent a monthly sales commission equal to 1/12th of 1% (1% annually) of the net asset value of the outstanding units as of the beginning of each month. For the First Quarter 2018 and the First Quarter 2017, Series J directly paid the Selling Agent sales commission of $7,022 and $19,257, respectively.

Series J pays a monthly fee to Wells Fargo for providing continuing due diligence, training, operations, system support, and marketing. For Class I and II Units purchased by clients of Wells Fargo on or prior to October 1, 2010, the fee is 1/12^th of 0.10% (0.10% per annum) of the beginning of the month Net Asset Value. For Class I and II Units purchased subsequent to October 1, 2010 the fee is 1/12^th of 0.30% (0.30% per annum) of the beginning of the month Net Asset Value. These fees are deducted from the management fee paid to the Managing Owner.

Note 6. ADMINISTRATOR

Gemini Hedge Fund Services, LLC (“Gemini” or the “Administrator”), a Nebraska limited liability company, serves as the Administrator of Series J. The Administrator performs or supervises the performance of services necessary for the operation and administration of Series J (other than making investment decisions), including administrative and accounting services. The Administrator also calculates Series J’s Net Asset Value. In addition, the Administrator maintains certain books and records of Series J, including certain books and records required by CFTC Rule 4.23(a).

Series J indirectly paid its pro-rata share of administrator fees through its investment in Affiliated Investment Funds. Investment in affiliated funds have been terminated during the year ended December 31, 2017. For the First Quarter 2018 and the First Quarter 2017, Series J indirectly paid administrator fees totaling $0 and $18,292, respectively.

Series J also pays administrator fees directly to the Administrators. For the First Quarter 2018 and the First Quarter 2017, Series J directly paid the Administrator fees of $1,500 and $1,500, respectively.

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WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS 

(Unaudited)

Note 7. INVESTMENT IN PRIVATE FUNDS

Through September 30, 2017, Series J invested a portion of its assets in Affiliated Investment Funds. Series J fully redeemed from the Affiliated Investment Funds as of September 30, 2017. Series J’s investment in Private Funds represents 80.94% and 76.70% of the Net Asset Value of Series J at March 31, 2018 and December 31, 2017, respectively.

Investment in affiliated funds have been terminated during the year ended December 31, 2017. Series J records its proportionate share of income or loss in the condensed statements of operations.

The following tables summarize the change in net asset value (fair value) of Series J’s investment in Private Funds for the Year-To-Date 2018 and the Year-To-Date 2017:

	Net asset value									Net asset value
	December 31, 2017		Purchases		Loss			Redemptions		March 31, 2018
Investment in Private Funds	$	4,736,849	$	0	$	(272,110	)	$	0	$	4,464,739
	Net asset value									Net asset value
	December 31, 2016		Purchases		Gain			Redemptions		December 31, 2017
Investment in Private Funds	$	0	$	4,612,569	$	124,280		$	0	$	4,736,849

The Private Funds are redeemable weekly and require a redemption notice of 2 days. Series J may make additional contributions to or redemptions from the Private Funds on a standard allocation date. The Private Funds engage in trading commodity futures including agricultural, currency, energy, interest rates and stock indices among other types, foreign currency forward contracts and options on futures contracts. Series J records its proportionate share of income or loss in the statements of operations

The following table sets out the total capital contribution and Investment Level split between net asset value:

	Total capital contribution March 31, 2018		Total Investment Level March 31, 2018
ADG Systematic Macro Feeder Fund (530) LLC		1,606,059		1,606,059
Fort Contrarian Feeder Fund (510) LLC		1,152,802		2,305,604
QIM Feeder Fund (526) LLC		1,705,878		3,411,756
Total	$	4,464,739	$	7,323,419

Note 8. TRUSTEE

The trustee of the Trust is Wilmington Trust Company, a Delaware banking corporation. The trustee has delegated to the Managing Owner the power and authority to manage the business and affairs of the Trust and has only nominal duties and liabilities with respect to the Trust.

19

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

Note 9. COSTS, FEES AND EXPENSES

A. Operating Expenses

Operating expenses of Series J are paid for by Series J.

B. Commissions

Series J, indirectly through the commodity trading activity of the Registrant Trading Investments, is obligated to pay all floor brokerage expenses, give-up charges and NFA clearing and exchange fees. These activities are reflected within the respective net asset value of each of the Registrant Trading Investments.

Note 10. DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS

No derivative instruments were directly held by Series J as of March 31, 2018 and December 31, 2017. Derivative trading activity is conducted within the Registrants Trading Investments. Series J’s investment in Registrants Trading Investments is subject to the market and credit risks of the futures contracts, options on futures contracts, forward currency contracts and other financial instruments held or sold short by them. Series J bears the risk of loss only to the extent of the capital commitment of its investment and, in certain specific circumstances, distributions and redemptions received.

Series J is exposed to various types of risks associated with the derivative instruments and related markets in which it indirectly invests through its investment in Registrants Trading Investments. These risks include, but are not limited to, risk of loss from fluctuations in the value of derivative instruments held (market risk) and the inability of counterparties to perform under the terms of Series J’s investment activities (credit risk), including investment in Registrants Trading Investments.

The Managing Owner has established due diligence procedures to actively monitor market risk and minimize credit risk, although there can be no assurance that it will, in fact, succeed in doing so. The Unitholders bear the risk of loss only to the extent of the market value of their respective investment in Series J and, in certain specific circumstances, distributions and redemptions received.

Market Risk

Market risk is influenced by a wide variety of factors, including government programs and policies, political and economic events, the level and volatility of interest rates, foreign currency exchange rates, the diversification effect among the derivative instruments, the liquidity and inherent volatility of the markets in which Series J indirectly invests through its ownership in Registrants Trading Investments.

Credit Risk

The Managing Owner attempts to minimize both credit and market risks by Series J and its Registrant Trading Investments. The Managing Owner monitors the credit risk of the Registrant Trading Investments as part of the due diligence process but does not have direct control over the selection of counterparties and credit risk of the Registrant Trading Investments.

20

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS 

(Unaudited)

Note 11. FINANCIAL HIGHLIGHTS

The following information presents per Unit operating performance data and other supplemental data for the First Quarter 2018 and the First Quarter 2017. This information has been derived from information presented in the condensed financial statements:

	Class I						Class II						Class III
	Three months ended March 31,						Three months ended March 31,						Three months ended March 31,
	2018			2017			2018			2017			2018			2017
Per Unit Performance
(for a Unit outstanding throughout the entire period)
Net Asset Value per Unit at beginning of period	$	67.18		$	74.05		$	81.96		$	88.67		$	92.10		$	100.00
Gain (Loss) from operations:
Net realized and change in unrealized gain (loss)(1)		(2.94	)		1.33			(3.61	)		1.54			(4.06	)		3.46
Dividend income (1)		0.01			0.06			0.01			0.08			0.02			0.05
Expenses(1),(4)		(1.21	)		(143	)		(1.10	)		(1.25	)		(1.57	)		(1.37	)
Total gain (loss) from operations		(4.14	)		(0.04	)		(4.70	)		0.37			(5.61	)		2.14
Net Asset Value per Unit at end of period	$	63.04		$	74.01		$	77.26		$	89.04		$	86.49		$	102.14
Total Return(3),(4)		(6.16	)%		(0.05	)%		(5.73	)%		0.42	%		(6.09	)%		2.14	%
Supplemental data
Ratios to average Net Asset Value:
Net investment loss(2),(4)		(7.42	)%		(7.38	)%		(5.50	)%		(5.29	)%		(7.02	)%		(7.74	)%
Dividend income(4)		0.07	%		0.35	%		0.00	%		0.34	%		0.07	%		0.27	%
Other expenses (4)		7.49	%		7.73	%		5.57	%		5.63	%		7.09	%		8.01	%
Total expenses		7.49	%		7.73	%		5.57	%		5.63	%		7.09	%		8.01	%

Total return is calculated based on the change in value of a Unit during the period. An individual Unitholder’s total return and ratios may vary from the above total returns and ratios based on the timing of subscriptions and redemptions.

⁽¹⁾ Dividend income and expenses per Unit are calculated by dividing dividend income and other expenses applicable to each Class by the weighted average number of Units of each Class outstanding during the period. Net realized and change in unrealized loss is a balancing amount necessary to reconcile the change in Net Asset Value per Unit of each Class with the other per Unit information.

⁽²⁾ Represents dividend income less total expenses. This excludes Series J’s proportionate share of income and expenses from investment in Registrants Trading Investments Funds.

⁽³⁾ Not Annualized.

⁽⁴⁾ Net of Class III’s portion of general and administrative expenses borne by the Managing Owner and affiliates.

Note 12. SUBSEQUENT EVENTS

From April 1, 2018 through May 15, 2018, there were estimated redemptions of $156,114.

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

This report on Form 10-Q (the “Report”) for the quarter ending March 31, 2018 (“First Quarter 2018”) includes forward-looking statements that reflect the current expectations of Kenmar Preferred Investments, LLC, the Managing Owner of World Monitor Trust III – Series J (the “Registrant”), about the future results, performance, prospects and opportunities of the Registrant. The Managing Owner has tried to identify these forward-looking statements by using words such as “may”, “will”, “expect”, “anticipate”, “believe”, “intend”, “should” and “estimate”, or the negative of those terms or similar expressions. These forward-looking statements are based on information currently available to the Managing Owner and are subject to a number of risks, uncertainties and other factors, both known, such as those described in this Report, and unknown, that could cause the Registrant’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.

You should not place undue reliance on any forward-looking statements. Except as expressly required by the Federal securities laws, the Managing Owner undertakes no obligation to publicly update or revise any forward-looking statements or the risks, uncertainties or other factors described in this Report, as a result of new information, future events or changed circumstances or for any other reason after the date of this Report.

Introduction

General

World Monitor Trust III (the “Trust”) was formed as a Delaware Statutory Trust on September 28, 2004, with separate series (each, a “Series”) of units of beneficial interest (“Units”). Its term will expire on December 31, 2054 (unless terminated earlier in certain circumstances). The trustee of the Trust is Wilmington Trust Company. The Trust’s fiscal year for book and tax purposes ends on December 31.

The Trust’s Units were initially offered in four (4) separate and distinct Series: Series G, Series H, Series I and Series J (the “Registrant”). The Trust may issue additional Series of Units in the future. Each Series will continue to exist until terminated pursuant to the provisions of Article XIII of the Fifth Amended and Restated Declaration of Trust and Trust Agreement (the “Trust Agreement”). Each Series offers Units in two classes (each, a “Class”) – Class I and Class II. Class I Units pay a service fee. Class II Units may only be offered to investors who are represented by approved correspondent selling agents who are directly compensated by the investor for services rendered in connection with an investment in the Trust (such arrangements commonly referred to as “wrap-accounts”) (see Note 5 of the condensed financial statements). Please see (The Offering) section below for Class III units issued on February 1, 2017.

Series G, H, I and J commenced trading operations on December 1, 2005.

Units are offered as of the beginning of each month, and Units will continue to be offered in each Series until the maximum amount of each Series’ Units which are registered are sold. The Managing Owner may suspend or terminate the offering of Units of any Series at any time or extend the offering by registering additional Units. The Managing Owner terminated the offering of Units of Series H and Series I effective September 30, 2007 and dissolved Series H and Series I effective close of business on April 30, 2007. The Managing Owner terminated the offering of Units of Series G on December 31, 2007 and dissolved Series G effective close of business on December 31, 2007.

Managing Owner and its Affiliates

Kenmar Preferred Investments, LLC (“Kenmar Preferred” or the “Managing Owner”), is the Managing Owner of the Registrant.

Kenmar Preferred has been the Managing Owner of the Registrant since October 1, 2004. The Managing Owner may, but is not required under the terms of the Trust Agreement to maintain an interest in the Registrant.

The Registrant reimburses the Managing Owner for services it performs for the Registrant, which include, but are not limited to: management, legal, accounting, registrar, transfer and assignment functions, investor communications, printing, postage and related services with respect to monitoring the Trust and other administrative services. The Registrant paid a monthly fee (which terminated September 30, 2017) to Clarity Managed Account & Analytics Platform, LLC (“Clarity”), an affiliate of the Managing Owner, for risk management and related services with respect to monitoring the Trading Advisors.

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The Offering

Units are being offered to investors who meet certain established suitability standards. Prior to November 30, 2008, investments required a minimum aggregate initial subscription of $5,000 and $2,000 for certain Benefit Plan Investors (including IRAs), although the minimum purchase for any single series was $500. Effective December 1, 2008, the minimum initial investment for new subscribers is $25,000 ($10,000 for benefit plan investors (including IRAs)) and the minimum additional subscription amount for current investors, who are “accredited investors,” is $5,000.

Effective November 30, 2008, the Board of Directors of the Managing Owner of the Registrant determined that the Registrant’s Units are no longer to be publicly offered and are only to be available on a private placement basis to accredited investors pursuant to Regulation D under the Securities Act of 1933 (the “Securities Act”). This change in the manner in which the Registrant’s Units are offered has no material impact to current investors as there is no change in the fees and expenses and redemption terms of the Units or any change in the management and investment strategy and reporting provided to investors of the Registrant. New subscriptions must be made by persons that are accredited investors. Current investors that are not accredited investors are not required to redeem their current Units, but are not able to purchase additional Units.

Initially, the Units for each Series were offered for a period ending November 30, 2005 (“Initial Offering Period”) at $100 per Unit. The subscription minimum of $30,000,000 for the Registrant was reached during the Initial Offering Period permitting all of Series G, H, I and J to commence trading operations. The Registrant completed its initial offering on December 1, 2005 with gross proceeds of $31,024,443, which was fully allocated to the trading vehicles. Series H and Series I Units were fully redeemed as of April 30, 2007 and Series G’s Units as of December 31, 2007. Up to $281,250,000 Series J, Class I and $93,750,000 Series J, Class II Units are being offered (totaling $375,000,000) (“Subscription Maximum”).

Effective February 1, 2017, KMP Futures Fund I, LLC (“KMPFF”), a Delaware Limited Liability Company contributed all of its assets into the Registrant. Members in KMPFF received a pro rata in-kind distribution of the Series J units effective February 1, 2017, which resulted for all Members in KMPFF to receive a direct ownership interest in Series J under a new class of units Class III. Class III Units pay a service fee which is deducted from the management fee payable to the Managing Owner.

The Trading Advisors and the Trading Vehicles

Effective September 30, 2017 the Registrant ceased investing in Affiliated Investment Fund and Effective October 1, 2017 the Registrant allocated Assets to Galaxy Plus Funds FORT, QIM and ADG. At March 31, 2018, the Registrants investments were approximately 81% of its assets.

● Galaxy Plus Fund - FORT (“FORT”), managed by the Galaxy Plus Managed Account Platform, which is a systematic, trend-anticipating trading program.

● Galaxy Plus Fund - QIM (“QIM”), managed by the Galaxy Plus Managed Account Platform, which is a short to medium-term trading strategy designed to capitalize on market inefficiencies and

● Galaxy Plus Fund - ADG (“ADG”), managed by the Galaxy Plus Managed Account Platform, which is a systematic macro strategy program that aims to generate excess returns by reallocating capital between asset classes.

Galaxy Plus Funds are investment vehicles available under the Galaxy Plus Managed Account Platform (the “Platform”).  The Platform is sponsored by Gemini Alternative Funds, LLC (the “Sponsor” or “GAF”) as a means of making available, to qualified high net-worth individuals and institutional investors (including fund of hedge funds) (“Investors”), a variety of third-party professional managed futures and foreign exchange advisors (“Advisors”).  The Trading Advisor is not affiliated with the Sponsor and investments by the Registrant into the Platform will be referred to as “Galaxy Funds”.

The Administrator

Effective February 1, 2016, Gemini Hedge Fund Services LLC (“Gemini” or the “Administrator”), a Nebraska limited liability company located at 80 Arkay Drive, Hauppauge, NY 11788, was appointed by the Registrant to serve as the Registrant’s administrator and provide certain administration and accounting services.

23

The Administrator performs or supervises the performance of services necessary for the operation and administration of the Registrant (other than making investment decisions), including administrative and accounting services. The Administrator also calculates the Registrant’s Net Asset Value. In addition, the Administrator maintains certain books and records of the Registrant, including certain books and records required by CFTC Rule 4.23(a).

Fees and Expenses

Management Fee

The Registrant pays the Managing Owner in advance a monthly management fee on the Registrant’s Net Asset Value (defined below) at the beginning of each month (See Note 4 of the Registrant’s 2017 Annual Report, which is filed as an exhibit hereto).

“Net Asset Value” is the total assets of the Registrant less total liabilities of the Registrant, each determined on the basis of accounting principles generally accepted in the United States of America.

Trading Advisors’ Fees

The Registrant, indirectly through its investment in the Galaxy Plus Funds, pays each Trading Advisor a monthly management fee and an incentive fee accrued monthly and paid quarterly.

Galaxy Funds	Management Fee	Incentive Fee
Galaxy Plus Fund - FORT*	2.00%	20.00%
Galaxy Plus Fund - QIM*	0.00%	30.00%
Galaxy Plus Fund - ADG*	2.00%	20.00%

“New High Net Trading Profits” (for purposes of calculating a Trading Advisor’s incentive fees) will be computed as of the close of business of the last day of each respective period (the “Incentive Measurement Date”) and will include such profits (as outlined below) since the immediately preceding Incentive Measurement Date (or, with respect to the first Incentive Measurement Date, since commencement of operations of the Registrant or the date the Trading Advisor commenced trading activities for the Registrant), each an Incentive Measurement Period. New High Net Trading Profits for any Incentive Measurement Period will be the net profits, if any, from the Trading Advisor’s trading during such period (including (i) realized trading profit (loss) plus or minus (ii) the change in unrealized trading profit (loss) on open positions), and will be calculated after the determination of certain transaction costs attributable to the Trading Advisor’s trading activities, operating expenses, and the Trading Advisor’s management fee, but before deduction of any incentive fees payable during the Incentive Measurement Period. New High Net Trading Profits will not include interest earned or credited on the assets allocated to the Trading Advisor.

New High Net Trading Profits will be generated only to the extent that the cumulative New High Net Trading Profits achieved by the Trading Advisor exceed the highest level of cumulative New High Net Trading Profits achieved by such Trading Advisor as of a previous Incentive Measurement Date. Except as set forth below, net losses from prior months must be recouped before New High Net Trading Profits can again be generated.

If a withdrawal or distribution occurs or if a Trading Advisor’s advisory agreement with the relevant CTA Fund is terminated at any date that is not an Incentive Measurement Date, the date of the withdrawal or distribution or termination will be treated as if it were an Incentive Measurement Date. New High Net Trading Profits for an Incentive Measurement Period shall exclude capital contributions allocated to the Trading Advisor in an Incentive Measurement Period, distributions or redemptions paid or payable from the Trading Advisor’s account during an Incentive Measurement Period and any loss carry-forward attributable to the Trading Advisor will be reduced in the same proportion that the value of the assets allocated away from the Trading Advisor comprises of the value of the assets allocated to the Trading Advisor prior to such allocation away from the Trading Advisor. In calculating New High Net Trading Profits, incentive fees paid for a previous Incentive Measurement Period will not reduce cumulative New High Net Trading Profits in subsequent periods.

24

Brokerage Commissions and Fees

The Registrant indirectly pays to the clearing brokers all brokerage commissions, including applicable exchange fees, National Futures Association (“NFA”) fees, give-up fees, pit brokerage fees and other transaction related fees and expenses charged in connection with the Registrant’s trading activities. These activities are charged indirectly through the Registrant’s Trading Investments and are reflected within the respective net asset values of each of the Registrants Trading Investments. On average, total charges paid to the clearing brokers are expected to be less than $10.00 per round-turn trade, although the clearing broker’s brokerage commissions and trading fees will be determined on a contract-by-contract basis. The exact amount of such brokerage commissions and trading fees to be incurred is impossible to estimate and will vary based upon a number of factors including the trading frequency of each Trading Advisor, the types of instruments traded, transaction sizes, degree of leverage employed and transaction rates in effect from time to time.

Routine Operational, Administrative and Other Ordinary Expenses

The Registrant pays directly or indirectly all of its routine operational, administrative and other ordinary expenses, including, but not limited to, (i) legal, bookkeeping, accounting, custodial, administration (including, without limitation, the costs and expenses of the Administrator), auditing, tax preparation charges and related charges of the Registrant (including reimbursement of the Managing Owner on a reasonable time-spent basis, for certain legal, accounting, administrative and registrar and transfer agent work performed by certain of the Managing Owner’s personnel for and on behalf of the Registrant), as well as printing and other related expenses, (ii) investment related expenses, including, but not limited to brokerage commissions, “bid-ask” spreads, mark-ups, margin interest and other transactional charges and clearing fees, as well as banking, sales and purchase commissions and charges and exchange fees, fees and charges of other custodians and clearing agencies, interest and commitment fees on loans and debit balances, income taxes, withholding taxes, transfer taxes and other governmental charges and duties, and other transactional charges and clearing fees incurred by the Trading Advisor on behalf of the Registrant, the Registrant’s pro rata share of the expenses of any Registrants Trading Investments into which it invests, and any due diligence expenses incurred in selecting and monitoring the Trading Advisor and any Registrants Trading Investments, (iii) operational and overhead expenses of the Registrant, including but not limited to, photocopying, postage, and telephone expenses, (iv) preparation of monthly, quarterly, annual and other reports required by applicable Federal and state regulatory authorities, (v) the Registrant’s meetings and preparing, printing and mailing of proxy statements and reports to Unitholders, (vi) client relations and services, and (vii) computer equipment, system maintenance and other technology-related expenses.

Extraordinary Fees and Expenses

The Registrant pays all its extraordinary fees and expenses, if any, and its allocable portion of all extraordinary fees and expenses of the Registrant generally, if any, as determined by the Managing Owner. Extraordinary fees and expenses are fees and expenses that are non-recurring and unusual in nature, such as legal claims and liabilities and litigation costs and any permitted indemnification payments related thereto. Extraordinary fees and expenses shall also include material expenses that are not currently anticipated obligations of the Registrant or of managed futures funds in general, such as the payment of partnership taxes or governmental fees associated with payment of such taxes. Routine operational, administrative and other ordinary expenses will not be deemed extraordinary expenses. Any fees and expenses imposed on the Registrant due to the status of an individual shall be paid by such individual or the Registrant, not the Managing Owner.

Expense Cap

Routine operational, administrative and other ordinary expenses, other than the Managing Owner’s management fee, the fees to be paid to the Registrant’s Trading Advisor(s), Brokerage Commissions and extraordinary fees and expenses, are limited to 1.50% of average Net Asset Value per annum for Class III Units. In the event fees and expenses for such items exceed such amount, the Managing Owner will pay such amounts. 

25

Competition

The Managing Owner and its affiliates have formed, and may continue to form, various entities to engage in the speculative trading of futures, forward and options contracts which have certain of the same investment policies as the Registrant.

The Registrant is an open-end fund, which solicits the sale of additional Units on a monthly basis until the maximum amount of Units being offered by the Registrant have been sold. As such, the Registrant may compete with other entities, whether or not formed by the Managing Owner, to attract new Unitholders. In addition, to the extent that a Trading Advisor recommends similar or identical trades to the Registrant and other accounts that it manages, the Registrant may compete with those accounts for the execution of the same or similar trades, as well as with other market participants.

Employees

The Registrant has no employees. Management and administrative services for the Registrant are performed by the Managing Owner or First parties pursuant to the Trust Agreement, as further discussed in Notes 3, 4, 5, 6 and 8 of the Registrant’s 2017 Annual Report, which is filed as an exhibit to the Registrant’s Form 10-K for the fiscal year ended December 31, 2017.

Financial Information about Segments

The Registrant’s business constitutes only one segment for financial reporting purposes. The Registrant does not engage in the production or sale of any goods or services. The objective of the Registrant’s business is appreciation of its assets through speculative trading in commodity interests. Financial information about the Registrant’s business, as of March 31, 2018, is set forth under Items 2 and 3 herein.

Financial Information about Geographic Areas

Although the Registrant has indirect exposure to the global futures, forward and option markets, it does not have operations outside of the United States.

Available Information

The Registrant files an annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to these reports with the Securities and Exchange Commission (the “SEC”). You may read and copy any document filed by the Registrant at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for information on the Public Reference Room. The Registrant does not maintain an internet website; however, the Registrant’s SEC filings are available to the public from the EDGAR database on the SEC’s website at http://www.sec.gov. The Registrant’s CIK number is 0001345991.

Critical Accounting Policies

General

Preparation of the condensed financial statements and related disclosures in compliance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires the application of appropriate accounting rules and guidance. Applying these policies requires the Managing Owner to make judgments, estimates and assumptions in connection with the preparation of the Registrant’s condensed financial statements. Actual results may differ from the estimates used.

The Managing Owner has evaluated the Registrant’s condensed financial statements and related disclosures and has determined that the policies discussed below are critical accounting policies because they involve estimates, judgments and assumptions that are particularly complex, subjective or uncertain. For further discussion of the Registrant’s significant accounting policies, see Note 2 of the Registrant’s 2017 Annual Report, which is filed as an exhibit to the Registrant’s Form 10-K for the fiscal year ended December 31, 2017.

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The Registrant records all investments at fair value in its condensed financial statements, with changes in fair value reported in the condensed statements of operations. Generally, fair values are based on quoted market prices; however, in certain circumstances, significant judgments and estimates are involved in determining fair value in the absence of an active market closing price. The Registrant considers its investments in publicly-traded mutual funds to be based on quoted prices in active markets for identical assets (Level 1) and inputs other than quoted market prices that are observable for asset or liability, either directly or indirectly (level 2). Level 3 inputs reflect the Registrant’s assumptions that it believes market participants would use in pricing the asset or liability. The Registrant develops Level 3 inputs based on the best information available in the circumstances, which may include indirect correlation to a market value, combinations of market values or the Registrant’s proprietary data. Level 3 inputs generally include information derived through extrapolation or interpolation of observable market data. The Registrant does not currently have any investments valued using Level 3 inputs.

The Registrants Trading Investments are reported at fair value in the Registrant’s statements of financial condition. As a practical expedient, fair value ordinarily is the fund’s net asset value as determined for the Registrants Trading Investments in accordance with the fund’s valuation policies and reported at the time of the Registrant’s valuation by the management of the funds. Generally, the fair value of the Registrants Trading Investments represents the amount that the Registrant could reasonably expect to receive if the Registrant’s investment was redeemed at the time of the valuation, based on information reasonably available at the time the valuation is made and that the Registrant believes to be reliable.

Of the Registrant’s investments as of March 31, 2018, $163,529 or 2.96% of the Net Asset Value were classified as Level 1. Generally, the fair value of the Registrant’s investment in the Trading Investments represents the amount that the Registrant could reasonably expect to receive from the Registrants Trading Investments if the Registrant’s investment was redeemed at the time of the valuation, based on information reasonably available at the time the valuation is made and that the Registrant believes to be reliable.

The Registrant invest a portion of the excess cash balances not required for funding the Registrant Trading Investments through certain investment funds which invest in (i) U.S. government securities (which include any security issued or guaranteed as to principal or interest by the United States), (ii) any certificate of deposit for any of the foregoing, including U.S. treasury bonds, U.S. treasury bills and issues of agencies of the United States government, (iii) corporate bonds or notes, or (iv) other instruments permitted by applicable rules and regulations (collectively, “Certain Investment Funds”). Such excess balances were held at US Bancorp Fund Services, LLC as transfer agent for DoubleLine Funds, at March 31, 2018 and December 31, 2017. The objective is to obtain a rate of return for the Registrant that balances risk and return relative to the historically low yields on short-term cash deposits with banks and/or brokerage firms. There is no guarantee that the Managing Owner will be successful in investing the excess cash successfully to obtain a greater yield than available on short-term cash deposits with banks and/or brokerage firms. The Managing Owner is paid monthly 1/12^th of 50% of the first 1% of the positive returns earned on the Registrant’s investments in Certain Investment Funds. The calculation is based on the Registrant’s average annualized Net Asset Value, and any losses related to returns on the Certain Investment Funds must first be recovered through subsequent positive returns prior to the Managing Owner receiving a payment. After the calculation of the amount payable to the Managing Owner, the Registrant will be credited with all additional positive returns (or 100% of any losses) on the Registrant’s investment in Certain Investment Funds. If, at the end of any calendar year, a loss has been incurred on the returns for the Certain Investment Funds, then the loss carry forward will reset to zero for the next calendar year with regards to the calculation of the Managing Owner’s portion of the Certain Investment Fund’s income.

Liquidity and Capital Resources

The Registrant commenced operations on December 1, 2005 with gross proceeds of $31,024,443 allocated to commodities trading. Additional contributions raised through the continuous offering of limited units (“Limited Units”) and general units (“General Units” or “Managing Owner Units” and, together with the Limited Units, “Units”) of beneficial ownership in the Registrant for the period from December 1, 2005 (commencement of operations) to March 31, 2018 resulted in additional gross proceeds to the Registrant of $195,857,057.

Limited Units in the Registrant may be redeemed on a monthly basis. Subscriptions were no longer accepted effective December 2013.

Subscriptions and Redemptions

First Quarter 2018

Subscriptions of Limited Units for the First Quarter were $0. Redemptions of Limited Units for the First Quarter 2018 were $283,576.

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First Quarter 2017

Due to the consolidation, there was a onetime Subscription of Limited Units for the First Quarter 2017 of $4,390,827 for Class III Units. Redemptions of Limited Units for the First Quarter 2017 were $1,780,663.

Liquidity

A portion of the Registrant’s net assets is held in cash, which not required to fund the Registrant Trading Investments.

Commodity contracts exposed to indirectly through its investment in Registrant Trading Investments may be subject to periods of illiquidity because of market conditions, regulatory considerations and other reasons. For example, commodity exchanges limit fluctuations in certain commodity futures contract prices during a single day by regulations referred to as “daily limits”. During a single day, no trades may be executed at prices beyond the daily limit. Once the price of a futures contract for a particular commodity has increased or decreased by an amount equal to the daily limit, positions in the commodity can neither be taken nor liquidated unless traders are willing to effect trades at or within the limit. Commodity futures prices have occasionally moved the daily limit for several consecutive days with little or no trading. Such market conditions could prevent the Registrant from promptly liquidating its indirect exposure, through its investment in Registrant Trading Investments, to commodity futures positions.

Since the Registrant’s business is to trade futures, forward and option contracts through its investment in Registrant Trading Investments, its capital is at risk due to changes in the value of these contracts (market risk) or the inability of counterparties to perform under the terms of the contracts (credit risk). The Registrant’s exposure to market risk is influenced by a number of factors including the volatility of interest rates and foreign currency exchange rates, the liquidity of the markets in which the contracts are traded and the relationships among the contracts held. The inherent uncertainty of the Registrant’s speculative trading as well as the development of drastic market occurrences could result in losses considerably beyond the Registrant’s experience to date and could ultimately lead to a loss of all or substantially all of Unitholders’ capital. The Managing Owner attempts to minimize these risks by requiring the Registrant and the Trading Advisors to abide by various trading limitations and policies, which include limiting margin amounts, trading only in liquid markets and permitting the use of stop loss provisions. See Note 10 of the Registrant’s 2017 Annual Report for a further discussion on the credit and market risks associated with the Registrant’s futures, forwards and option contracts held indirectly through its investment in Registrant Trading Investments.

There are no known material trends, demands, commitments, events or uncertainties at the present time that are reasonably likely to result in the Registrant’s liquidity increasing or decreasing in a material way.

The Registrant does not have, nor does it expect to have, any capital assets.

Market Overview

Following is a market overview for the First Quarter 2018 and the First Quarter 2017:

First Quarter 2018

Volatility came roaring back during the 1st quarter of 2018 as a strengthening US economy, uncertainty over the pace of U.S. interest rates hikes and the potential for a global trade war combined to shake the markets out of the calm waters that had characterized much of 2017.

Benchmark U.S. equity indices began the quarter on a positive note as the Dow Industrials, S&P 500 and Nasdaq all swept to new highs on the back of positive economic readings and expectations that the tax overhaul would boost corporate earnings. Overseas the mood was also upbeat as investors looked toward an improving economic picture at home as euro-area joblessness declined to the lowest level since early 2009; in Asia the Nikkei hit a 26-year high and the Hang Seng hit a record. The euphoria wouldn’t last long however. The rally stalled in late-January as global equity markets swept lower. The rout was sparked by fears of quickening inflation which would force more aggressive Federal Reserve tightening; worries over a U.S.-led trade war added to investor jitters. By quarter-end, global indices had rallied off lows but nevertheless most ended lower.

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Global bond prices fell - and yields rose - during the first quarter. The move was sparked by expectations that a quickening pace of economic growth would compel further tightening by the U. S. Federal Reserve; news that the Bank of Japan had trimmed its purchases of longer-term bonds also pushed yields higher. Thereafter, inflationary worries, expectations of a rising U.S. deficit, a March U.S. Federal Reserve interest rate hike, central bank unwinding of monetary stimulus and prospects for a trade war supported yields.

Despite the backdrop of stronger U.S. growth and a yield advantage – with expectations of further Federal Reserve rate hikes this year - the U.S. dollar ended the first quarter weaker. Dollar weakness was attributed to potentially hawkish policy shifts form central banks in Europe and Japan, expectations that the synchronized nature of global expansion would lift emerging-market economies, worries over personnel departures in the White House and Trump’s protectionist policies.

In commodity markets, WTI and Brent crude oil rose, reaching multi-year highs. The move was attributed to the effects of OPEC-led supply cuts, falling U.S. crude stockpiles amid rising demand and geopolitical risk including unrest in Iran, OPEC’s third-biggest producer. A halt at Libya’s biggest crude field also worried investors. Overall though, expectations for growing U.S. shale output kept the rally in check. In metals markets, a weaker dollar, concerns about Chinese purchases of U.S. debt and the prospect of higher inflation left gold prices higher at quarter end.

First Quarter 2017

Global stock indices ended the first quarter on a positive note. In the U.S., the S&P500, Dow Jones Industrial Average and Nasdaq all marked new record highs as investors viewed the administration’s goals of reducing taxes, increasing infrastructure spending and scaling back regulations as supportive for corporate profits.

A dovish Federal Reserve outlook and a quickening pace of economic growth also lifted markets. In Europe, the mood was similarly optimistic as stock indices moved higher on better economic readings and brightening consumer confidence. In the UK, the FTSE marked new all-time highs but ultimately closed off those levels as Prime Minister Theresa May formally have triggered the country’s exit from the European Union. In Japan, the Nikkei remained rangebound and ended the quarter lower.

U.S. interest rate markets traded within broad ranges with prices of the 10-, 5-, and 2-year notes all ending the quarter slightly higher. Overall, these markets were influenced by the pace of U.S. Federal Reserve tightening, Trump’s call for a re-write of U.S. tax policy and expectations for fiscal policy. Overseas, political risk and the fate of the euro weighed heavily on Eurozone investors as did speculation that the ECB could end its bond-buying program in 2018. At quarter end, French bond prices were lower while German prices were higher. In the UK, gilt prices fell in January but rallied thereafter as Brexit was triggered; in March the yield difference between the U.S. and U.K. was the greatest in 25 years. In Japan, bond prices ended the quarter higher.

In currencies, the U.S. dollar rallied to a 14-year high in early January only to fall from that level as investors began to lose conviction in the Trump reflation trade. While the greenback rallied back in February, it ultimately succumbed as the failure of the U.S. health care bill quashed investor optimism that Trump would be able to enact tax cuts needed to accelerate growth. In Europe, the common currency benefited from better-than-expected growth and inflation readings and easing French election fears. Meanwhile despite Brexit fallout, the British pound ended the 1st quarter higher buoyed on economic reports which showed UK inflation accelerated more than forecast to break through the Bank of England’s target for the first time since 2013.

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In commodity markets, crude oil prices ended the 1st quarter lower as record U.S. supply diminished the impact of reductions in OPEC output. Natural gas prices also ended the quarter lower as milder winter temperatures tempered demand. In precious metals, gold prices rallied for much of the quarter as political uncertainty from Brexit to the French election to protectionist policies of the Trump administration, sparked safe haven buying. In agricultural markets, wheat and corn prices generally kept within tight ranges ending the quarter slightly higher while soybean prices slid on expectations for a good South American harvest. In tropical markets, sugar prices declined on ample supplies, cocoa and coffee prices ended the quarter flat.

Sector Performance

Due to the nature of the Registrant’s indirect trading activities, a period-to-period comparison of its trading results is not meaningful. However, set forth below are the following:

(a) the major sectors to which the Registrant’s assets were allocated indirectly as of the First Quarter 2018 and the First Quarter 2017, measured as a percentage of the “gross speculator margin” (i.e., the minimum amount of cash or marginable securities a speculator must post when buying or selling futures assets); and

(b) a discussion of the Registrant’s trading results for the major sectors in which the Registrant traded indirectly for the First Quarter 2018 and the First Quarter 2017.

First Quarter 2018

Trading results for the major sectors in which the Registrant traded indirectly for the First Quarter 2018 were as follows:

Currencies: (+) The Registrant experienced gains in currencies as profits realized in February and March were sufficient to erase early-quarter gains. Overall, largest profits were linked to positions in the Japanese yen and Mexican peso as the currencies rallied against the U.S. dollar. Largest losses were in the Chinese yuan, Thai baht and Swiss franc.

Interest Rates: (-) The Registrant experienced losses in global interest rates as February gains were insufficient to erase January and March losses. Positions across the U.S. markets were unprofitable, notably at the longer end of the curve. Largest gains were seen in the Australian 10-year and German bund markets.

Indices: (-) The Registrant experienced losses in global stock indices as gains in March were insufficient to cover losses in January and February. Losses were largest in the U.S. market as trading in the S&P, DJIA and Nasdaq ended the quarter in negative territory. Losses were also posted in the Nikkei. The quarter’s largest gains were in the DAX

.

Energies: (+) The Registrant realized gains in energies as profits in January and March covered February losses. Largest profits were posted in the WTI and Brent crude markets; small losses were posted in natural gas.

Metals: (+) The Registrant realized gains in metals as profits realized in gold erased losses in silver and copper.

First Quarter 2017

As of March 31, 2017, the allocation of the Registrant’s assets, through its investment in Affiliated Investment Funds, to major sectors was as follows:

Sector	Allocation
Meats		0.49	%
Currencies		7.53	%
Energies		14.00	%
Grains		5.20	%
Indices		22.68	%
Interest Rates		47.61	%
Metals		2.22	%
Tropicals		0.27	%
TOTAL		100.00	%

Trading results for the major sectors in which the Registrant traded indirectly for the First Quarter 2017 were as follows:

Currencies: (-) The Registrant experienced losses as the U.S. dollar ended the quarter lower. Overall. losses in the Japanese yen, euro, British pound and Mexican peso erased gains in the Australian and New Zealand dollars.

Interest Rates: (+) The Registrant experience gains as profits in February erased losses in January and March. Overall, largest profits were realized on positions in the British gilt as prices moved higher beginning in late-January. Gains also accumulated in the Japanese, German and French government bonds markets. Trading in U.S. bond markets was slightly profitable.

Indices: (+) The Registrant experienced gains in all three months of the quarter as U.S. and European stock indices rallied on a brightening investor outlook. Losses were posted in the Nikkei and Hang Seng.

Energies: (-) The Registrant realized losses in all three months of the quarter as losses accumulated across most markets in the sector. Largest losses were realized on positions in natural gas as prices reversed course in March after falling earlier on milder winter weather.

Metals: (+) The Registrant realized profits in metals. Overall, gains in gold, copper, zinc and aluminum were sufficient to erase losses in palladium, platinum and nickel.

Results of Operations

First Quarter 2018

The Net Asset Value per Unit of Class I as of March 31, 2018 was $63.04, a decrease of $4.14 from the December 31, 2017 Net Asset Value of $67.18.

The Net Asset Value per Unit of Class II as of March 31, 2018 was $77.26, a decrease of $4.70 from the December 31, 2017 Net Asset Value of $81.96.

The Net Asset Value per Unit of Class III as of March 31, 2018 was $86.49, a decrease of $5.61 from the December 31, 2017 Net Asset Value of $92.10.

The Registrant’s average net asset level for the First Quarter 2018 was approximately $5,830,000, a decrease of approximately $5,940,000 as compared to the First Quarter 2017.

The Registrant’s performance for Class I, Class II and Class III for the First Quarter 2018 was (6.16)%, (5.73)% and (6.09)%, respectively. Performance includes the percentage change in the Registrant’s Net Asset Value excluding the effect of any subscriptions and redemptions and includes the percentage impact of investment gains/(losses) less any commissions and related fees and expenses. Past performance is not necessarily indicative of future results.

The Registrant’s total loss from its investment in securities for the First Quarter 2018 was approximately $1,000. 

The Registrant’s total loss from its investment in Private Funds for the First Quarter 2018 was approximately $272,000.

Dividend income for the First Quarter 2018 was approximately $1,000, a decrease of approximately $7,000, as compared to the First Quarter 2017.

Management fees to the Managing Owner for the First Quarter 2018 were approximately $28,000, a decrease of approximately $3,000 as compared to the First Quarter 2017.

Service fees for the First Quarter 2018 were approximately $34,000, a decrease of approximately $22,000 as compared to the First Quarter 2017.

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Sales commissions for the First Quarter 2018 were approximately $7,000, a decrease of approximately $12,000 as compared to the First Quarter 2017, primarily due to the decrease in the average net asset level for Class I Units.

Managing Owner interest earned on Certain Investment Funds for the First Quarter 2018 was approximately $59, a decrease of approximately $10,000, as compared to the First Quarter 2017.

Operating expenses were approximately $59,000 for the First Quarter 2018, a decrease of approximately $29,000 as compared to the First Quarter 2017. These expenses include accounting, audit, registrar and transfer agent, tax and legal fees, as well as printing and postage costs related to reports sent to Unitholders.

General and administrative expenses borne by the Managing Member and affiliates were approximately $24,000 for the First Quarter 2018, a increase of approximately $19,000 as compared to the First Quarter 2017.

Offering costs were $0 for the First Quarter 2018.

First Quarter 2017

The Net Asset Value per Unit of Class I as of March 31, 2017 was $74.01, a decrease of $0.04 from the December 31, 2016 Net Asset Value of $74.05.

The Net Asset Value per Unit of Class II as of March 31, 2017 was $89.04, an increase of $0.37 from the December 31, 2016 Net Asset Value of $88.67.

The Net Asset Value per Unit of Class III as of March 31, 2017 was $102.14, an increase of $2.14 from its original subscription on February 1, 2017.

The following table discloses each Trading Advisor’s contribution to the Net Asset Values of Class I and Class II for the First Quarter 2017, as well as the allocation of the Registrant’s assets to each Trading Advisor as of March 31, 2017. The table is based on the effect of a Unitholder that held Units for the First Quarter 2017, and is based on the average contribution per Trading Advisor and net expenses for the relevant Class of Units.

WMT III Series J - Class I			WMT III Series J - Class II			WMT III Series J - Class III			Allocation of Assets as of March 31, 2017
Beginning UNAV	74.05		Beginning UNAV	88.67		Beginning UNAV	100.00
CTA Choice FRT	0.70		CTA Choice FRT	0.84		CTA Choice FRT	1.98			33.66	%
CTA Choice ISAT	0.15		CTA Choice ISAT	0.18		CTA Choice ISAT	0.21			9.51	%
CTA Choice KEY	0.05		CTA Choice KEY	0.05		CTA Choice KEY	1.23			56.83	%
CTA Choice QNTM	(0.09	)	CTA Choice QNTM	(0.11	)	CTA Choice QNTM	0.00			0.00	%
CTA Choice RDOK	0.43		CTA Choice RDOK	0.51		CTA Choice RDOK	0.00			0.00	%
Net Expenses	(1.28	)	Net Expenses	(1.10	)	Net Expenses	(1.28	)
ENDING UNAV	74.01		ENDING UNAV	89.04		ENDING UNAV	102.14			100.00	%

The Registrant’s average net asset level for the First Quarter 2017 was approximately $11,770,213, an increase of approximately $717,000 as compared to the First Quarter 2016, primarily because of the consolidation of KMPFF into Series J Class III Units.

The Registrant’s performance for Class I, Class II and Class III for the First Quarter 2017 was (0.05)%, 0.42% and 2.14%, respectively. Performance includes the percentage change in the Registrant’s Net Asset Value excluding the effect of any subscriptions and redemptions and includes the percentage impact of investment gains/(losses) less any commissions and related fees and expenses. Past performance is not necessarily indicative of future results.

The Registrant’s total gain from its investment in securities for the First Quarter 2017 was approximately $5,000.

The Registrant’s total gain from its investment in Affiliated Investment Funds for the First Quarter 2017 was approximately $265,000.

Dividend income for the First Quarter 2017 was approximately $8,000, a decrease of approximately $6,000, as compared to the First Quarter 2016.

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Brokerage commissions and other transaction fees, which were paid indirectly through the Affiliated Investment Funds and are reflected within the respective net asset values of each of the Affiliated Investment Funds for the First Quarter 2017 were approximately $41,000, a increase of approximately $17,000, as compared to the First Quarter 2016.

Management fees to the Trading Advisors, which are paid indirectly through the Affiliated Investment Funds and are reflected within the respective net asset values of each of the Affiliated Investment Funds, for the First Quarter 2017 were approximately $42,000, a decrease of approximately $8,000 as compared to the First Quarter 2016, primarily due to the decrease in the average net asset level discussed above.

Management fees to the Managing Owner for the First Quarter 2017 were approximately $31,000, an increase of approximately $17,000 as compared to the First Quarter 2016, primarily due to the addition of Class III units.

Trading Advisor incentive fees are based on the New High Net Trading Profits generated by the Trading Advisors, as defined in the Trading Advisory Agreements between the Registrant and the Trading Advisors. Trading Advisor incentive fees, which are paid indirectly through the Affiliated Investment Funds and are reflected within the respective net asset values of each of the Affiliated Investment Funds, for the First Quarter 2017 were approximately $0.

An administrative services fee, which was indirectly paid to Clarity for risk management and related services with respect to monitoring the Trading Advisors through the Affiliated Investment Funds and reflected within the respective net asset values of each of the Affiliated Investment Funds, for the First Quarter 2017 was approximately $8,000, an increase of approximately $0 as compared to the First Quarter 2016.

Service fees for the First Quarter 2017 were approximately $56,000, an increase of approximately $6,000 as compared to the First Quarter 2016, primarily due to the addition of Class III units.

Sales commissions for the First Quarter 2017 were approximately $19,000, a decrease of approximately $9,000 as compared to the First Quarter 2016, primarily due to the decrease in the average net asset level for Class I Units.

Managing Owner interest earned on Certain Investment Funds for the First Quarter 2017 was approximately $10,000, a decrease of approximately $4,000, as compared to the First Quarter 2016.

Operating expenses were approximately $88,000 for the First Quarter 2017. These expenses include accounting, audit, registrar and transfer agent, tax and legal fees, as well as printing and postage costs related to reports sent to Unitholders.

Offering costs were $0 for the First Quarter 2017.

Inflation

Inflation has had no material impact on the operations or on the financial condition of the Registrant from inception through March 31, 2018.

Off-Balance Sheet Arrangements and Contractual Obligations

The Registrant’s direct contractual obligations are with the Managing Owner, and indirectly through the Registrants Trading Investments. Trading Advisor management, incentive, trading, operational and administrative fees payable by the Registrant to the Registrants Trading Investments are disclosed and calculated in the respective offering documents. As such, the Managing Owner cannot anticipate the amounts to be paid for future periods as Net Asset Values and “New High Net Trading Profits” are not known until a future date. Commissions payable to the Registrant’s commodity broker are based on a cost per executed trade and, as such, the Managing Owner cannot anticipate the amount that will be required under the brokerage agreement, as the level of executed trades are not known until a future date. These agreements are effective for one-year terms, renewable automatically for additional one-year terms unless terminated. Additionally, these agreements may be terminated by either party thereto for various reasons. Additionally, since the Registrant does not enter into other long-term debt obligations, capital lease obligations, operating lease obligations or other long-term liabilities that would otherwise be reflected on the Registrant’s statements of financial condition, a table of contractual obligations has not been presented. For a further discussion of the Registrant’s contractual obligations, see Notes 1, 3, 4, 5, 6 and 9 of the Registrant’s 2017 Annual Report, which is filed as an exhibit for the year ended December 31, 2017.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

Introduction

Past Results Not Necessarily Indicative of Future Performance

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

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

The Registrant rapidly acquires and liquidates both long and short positions in a wide range of different markets. Consequently, it is not possible to predict how a particular futures market scenario will affect performance, and the Registrant’s past performance is not necessarily indicative of its future results.

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

Standard of Materiality

Materiality as used in this section, “Quantitative and Qualitative Disclosures About Market Risk,” is based on an assessment of reasonably possible market movements and the potential losses caused by such movements, taking into account the leverage, optionality and multiplier features of the Registrant’s market sensitive instruments.

Quantifying the Registrant’s Trading Value at Risk

Quantitative Forward-Looking Statements

The following quantitative disclosures regarding the Registrant’s market risk exposures contain “forward-looking statements” within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)).

The Registrant’s risk exposure in the various market sectors traded by the Trading Advisors is quantified below in terms of Value at Risk. Due to the Registrant’s mark-to-market accounting, any loss in the fair value of the Registrant’s open positions is directly reflected in the Registrant’s earnings (realized or unrealized) and cash flow (at least in the case of exchange-traded contracts in which profits and losses on open positions are settled daily through variation margin).

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Exchange maintenance margin requirements have been used by the Registrant as the measure of its Value at Risk. Maintenance margin requirements are set by exchanges to equal or exceed the maximum losses reasonably expected to be incurred in the fair value of any given contract in 95%-99% of any one-day interval. The maintenance margin levels are established by dealers and exchanges using historical price studies as well as an assessment of current market volatility (including the implied volatility of the options on a given futures contract) and economic fundamentals to provide a probabilistic estimate of the maximum expected near-term one-day price fluctuation. Maintenance margin has been used rather than the more generally available initial margin, because initial margin includes a credit risk component, which is not relevant to Value at Risk.

In the case of market sensitive instruments that are not exchange-traded (almost exclusively currencies in the case of the Registrant), the margin requirements for the approximate estimated equivalent futures positions have been used as Value at Risk. In those rare cases in which a futures-equivalent margin is not available, estimated dealers’ margins have been used.

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

The Registrant’s Trading Value at Risk in Different Market Sectors

The following table presents the trading value at risk associated with the Registrant’s open positions by market sector through its investment in Private Funds at March 31, 2018. All open position trading risk exposures of the Registrant have been included in calculating the figure set forth below. At March 31, 2018 and December 31, 2017, the Registrant had total capitalizations of approximately $6 million and $6 million, respectively.

	March 31, 2018					December 31, 2017
			% of Total					% of Total
Fund	Value at Risk		Capitalization			Value at Risk		Capitalization
ADG Systematic Macro Feeder Fund (530) LLC	$	32,954		2.0	%	$	33,459		2.2	%
Fort Contrarian Feeder Fund (510) LLC		20,936		2.7	%		31,380		3.7	%
QIM Feeder Fund (526) LLC		64,691		7.4	%		56,582		8.0	%
	$	118,581		12.1	%	$	121,421		13.9	%

Material Limitations on Value at Risk as an Assessment of Market Risk

The notional value of the market sector instruments held by the Registrant (directly/indirectly) is typically many times the applicable maintenance margin requirement (maintenance margin requirements generally range between approximately 1% and 10% of the face value) as well as many times the total capitalization of the Registrant. The magnitude of the Registrant’s open positions creates a “risk of ruin” not typically found in most other investment vehicles. Because of the size of its positions, certain market conditions, although unusual, but historically recurring from time to time, could cause the Registrant to incur severe losses over a short period of time. The foregoing Value at Risk table, as well as the past performance of the Registrant gives no indication of this “risk of ruin.”

Non-Trading Risk

The Registrant has non-trading market risk on its foreign cash balances not needed for margin. However, these balances (as well as any market risk they represent) are immaterial.

Qualitative Disclosures Regarding Primary Trading Risk Exposures

The following qualitative disclosures regarding the Registrant’s market risk exposures—except for (i) those disclosures that are statements of historical fact and (ii) the descriptions of how the Registrant manages its primary market risk exposures—constitute forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act.

34

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

Based on the trading value at risk at March 31, 2018, the Registrant experienced a net decrease in its value at risk, relative to capitalization levels, as compared with the trading value at risk at December 31, 2017.

Qualitative Disclosures Regarding Means of Managing Risk Exposure

The means by which the Managing Owner and the Trading Advisors through Registrants Trading Investments attempt to manage the risk of the Registrant’s open positions is essentially the same in all market categories traded.

The Trading Advisors attempt to minimize market risk exposure by applying their own risk management trading policies that include the diversification of trading assets into various market sectors. Additionally, the Managing Owner’s oversight committee is responsible for evaluating and overseeing the Trading Advisors’ trading policies. The oversight committee meets periodically to discuss and analyze issues such as liquidity, position size, capacity, performance cycles, and new product and market strategies.

The Managing Owner shall automatically terminate the Registrants Trading Investments if the Net Asset Value of the Registrant declines by 40% during any year or since the commencement of trading activities. Furthermore, the Trust Agreement provides that the Registrant will liquidate its positions, and eventually dissolve, if the Registrant experiences a decline in the Net Asset Value of 50% in any year or since the commencement of trading activities. In each case, the decline in Net Asset Value is after giving effect for contributions, distributions and redemptions. The Managing Owner may impose additional restrictions (through modifications of such trading limitations and policies) upon the trading activities of the Trading Advisors as it, in good faith, deems to be in the best interest of the Registrant.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Registrant’s “disclosure controls and procedures” (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) are designed to ensure that information required to be disclosed by the Registrant in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and that such information is accumulated and communicated to the Registrant’s management, including the Managing Owner’s President (who, in these capacities, function as the Principal Executive Officers of the Registrant), as appropriate to allow for timely decisions regarding required disclosure.

In designing and evaluating the Registrant’s disclosure controls and procedures, the Managing Owner recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs. Because of the inherent limitations in all control systems, no evaluation of the controls can prove absolute assurance that all control issues and instances of fraud, if any, within the Registrant have been detected.

The Managing Owner’s management, under the supervision and with the participation of certain officers of the Managing Owner (including the Managing Owner’s President has evaluated the effectiveness of the Registrant’s disclosure controls and procedures during the First Quarter 2018. Based upon such evaluation, the Managing Owner’s President has concluded that, as of March 31, 2018, the Registrant’s disclosure controls and procedures were effective.

Changes in Internal Control Over Financial Reporting

There have been no changes in the Registrant’s internal control over financial reporting (as defined in Rules 13a – 15(f) and 15d – 15(f) under the Exchange Act) during the third Quarter 2017 that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

35

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

There are no material legal proceedings pending, on appeal, or concluded to which the Registrant is a party or to which any of its assets are subject.

Item 1.A. Risk Factors

There have been no changes from risk factors as previously disclosed in the Registrant’s Form 10-K for the fiscal year ended December 31, 2017.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table presents sales of unregistered interests (i.e., Managing Owner interests) exempt from registration under Section 4(2) of the Securities Act of 1933 during the period from September 28, 2004 (inception) through March 31, 2018.

	Amount of
Date of Sale	Units Sold		Cash Received
March 10, 2005		10	$	1,000
December 1, 2005		3,080	$	308,000
January 1, 2006		765	$	74,535
February 1, 2006		416	$	40,000
March 1, 2006		256	$	24,489
April 1, 2006		223	$	21,560
May 1, 2006		265	$	27,537
June 1, 2006		454	$	47,400
July 1, 2006		575	$	59,000
August 1, 2006		530	$	52,350
September 1, 2006		403	$	39,200
October 1, 2006		374	$	36,000
November 1, 2006		189	$	18,000
December 1, 2006		11	$	1,000
January 1, 2007		62	$	6,000
February 1, 2007		217	$	21,000
March 1, 2007		109	$	10,000
August 1, 2007		30	$	3,000
September 1, 2007		10	$	1,000
October 1, 2007		49	$	5,000
November 1, 2007		28	$	3,000
December 1, 2007		19	$	2,000
January 1, 2008		265	$	29,000
March 1, 2008		113	$	15,000
April 1, 2008		258	$	40,000
May 1, 2008		419	$	50,000
June 1, 2008		329	$	40,000
July 1, 2008		497	$	61,000
August 1, 2008		294	$	35,000
September 1, 2008		347	$	40,000
October 1, 2008		196	$	22,000

There are no material restrictions upon the Registrant’s present or future ability to make distributions in accordance with the provisions of the Trust Agreement. No distributions have been made since inception and no distributions are anticipated in the future.

The Managing Owner redeemed all of its Units in the Registrant. As of March 31, 2018, there were 522 holders of record owning 73,576.53 Units, which include 0 Managing Owner Units.

36

The Managing Owner has sole discretion in determining what distributions, if any, the Registrant will make to Unitholders. The Registrant has never declared a dividend and does not intend to do so in the future. The Registrant did not repurchase any Units registered pursuant to Section 12 of the Securities Exchange Act of 1934 (the “Exchange Act”) during the period January 1, 2013 through March 31, 2018.

Item 3. Defaults Upon Senior Securities

None

Item 4. Mine Safety Disclosures

Not Applicable

Item 5. Other Information

None

Item 6. Exhibits:

3.1 Fifth Amended and Restated Declaration of Trust Agreement of World Monitor Trust III dated June 30, 2010 (incorporated by reference to Exhibit 13.1 to the Registrant’s annual report on Form 10-K for the year ended December 31, 2009)

4.2 Subscription Requirements (annexed to the Prospectus as Exhibit B and incorporated by reference to Exhibit 4.2 to the Trust’s Post-Effective Amendment No. 3 on S-1 Registration Statement, File No. 333-119612, filed with the Commission on April 25, 2006)

4.3 Subscription instructions, Form of Subscription Agreement and Power of Attorney (annexed to the Prospectus as Exhibit C and incorporated by reference to Exhibit 4.3 to the Trust’s Post-Effective Amendment No. 3 on S-1 Registration Statement, File No. 333-119612, filed with the Commission on April 25, 2006)

4.4 Form of Privacy Notices of the Managing Owner dated December 2010 (incorporated by reference to Exhibit 4.4 to the Registrant’s annual report on Form 10-K for the year ended December 31, 2010)

10.1 Form of Subscription Escrow Agreement (incorporated by reference to Exhibit 10.1 to the Trust’s Pre-Effective Amendment No. 2 on S-1 Registration Statement, File No. 333-119612, filed with the Commission on March 14, 2005)

10.2 Form of Advisory Agreement among WMT III Series G/J Trading Vehicle LLC, the Managing Owner and Graham Capital Management, L.P. (incorporated by reference to Exhibit 10.2 to the Trust’s Pre-Effective Amendment No. 2 on S-1 Registration Statement, File No. 333-119612, filed with the Commission on March 14, 2005)

10.3 Form of Advisory Agreement among World Monitor Trust III – Series J, the Managing Owner and Eagle Trading Systems Inc. (incorporated by reference to Exhibit 10.3 to the Trust’s Post-Effective Amendment No. 6 to Form S-1 Registration Statement, File No. 333-119612, filed with the Commission on April 10, 2007)

10.4 Form of Advisory Agreement among World Monitor Trust III – Series J, the Managing Owner and Ortus Capital Management (Cayman) Limited (incorporated by reference to Exhibit 10.4 to the Trust’s Post-Effective Amendment No. 8 to Form S-1 Registration Statement, File No. 333-119612, filed with the Commission on April 25, 2007)

10.5 Form of Customer Agreement between the WMT III Series G/J Trading Vehicle LLC and UBS Securities LLC (incorporated by reference to Exhibit 10.5 to the Trust’s Pre-Effective Amendment No. 2 on S-1 Registration Statement, File No. 333-119612, filed with the Commission on March 14, 2005)

37

10.6 Form of Customer Agreement between the World Monitor Trust III – Series J and UBS Securities LLC (incorporated by reference to Exhibit 10.6 to the Trust’s Post-Effective Amendment No. 6 to Form S-1 Registration Statement, File No. 333-119612, filed with the Commission on April 10, 2007)

10.7 Form of FX Prime Brokerage Agreement between UBS AG and WMT III Series G/J Trading Vehicle LLC (incorporated by reference to Exhibit 10.7 to the Trust’s Post-Effective Amendment No. 6 to Form S-1 Registration Statement, File No. 333-119612, filed with the Commission on April 10, 2007)

10.8 Form of ISDA Master Agreement between UBS AG and WMT III Series G/J Trading Vehicle LLC, Schedule to ISDA Master Agreement and Credit Support Annex to Schedule (incorporated by reference to Exhibit 10.8 to the Trust’s Post-Effective Amendment No. 6 to Form S-1 Registration Statement, File No. 333-119612, filed with the Commission on April 10, 2007)

10.9 Form of FX Prime Brokerage Agreement between UBS AG and World Monitor Trust III – Series J (incorporated by reference to Exhibit 10.9 to the Trust’s Post-Effective Amendment No. 8 to Form S-1 Registration Statement, File No. 333-119612, filed with the Commission on April 25, 2007)

10.10 Form of ISDA Master Agreement between UBS AG and World Monitor Trust III – Series J, Schedule to ISDA Master Agreement and Credit Support Annex to Schedule (incorporated by reference to Exhibit 10.10 to the Trust’s Post-Effective Amendment No. 8 to Form S-1 Registration Statement, File No. 333-119612, filed with the Commission on April 25, 2007)

10.11 WMT III Series G/J Trading Vehicle LLC Organization Agreement (incorporated by reference to Exhibit 1.1 to the Trust’s Post-Effective Amendment No. 6 to Form S-1 Registration Statement, File No. 333-119612, filed with the Commission on April 10, 2007)

10.12 Form of Advisory Agreement among World Monitor Trust III – Series J, the Managing Owner and Graham Capital Management, L.P. (incorporated by reference to Exhibit 10.12 to the Registrant’s annual report on Form 10-K for the year ended December 31, 2007)

10.13 Form of Services Agreement among World Monitor Trust III – Series J, the Managing Owner and Spectrum Global Fund Administration, L.L.C. (incorporated by reference to Exhibit 10.13 to the Registrant’s annual report on Form 10-K for the year ended December 31, 2007)

10.14 Advisory Agreement dated March 24, 2010 by and among, World Monitor Trust III – Series J, Kenmar Preferred Investments Corp. and Tudor Investment Corporation (incorporated by reference to Exhibit 10.9 to the Registrant’s Form 8-K, File No. 000-51651, filed with the Commission on March 26, 2010)

10.15 Advisory Agreement dated March 24, 2010 by and among, World Monitor Trust III – Series J, Kenmar Preferred Investments Corp. and Paskewitz Asset Management, LLC (incorporated by reference to Exhibit 10.10 to the Registrant’s Form 8-K, File No. 000-51651, filed with the Commission on March 26, 2010)

10.16 Amendment No. 1 dated September 29, 2010, with an effective date of October 1, 2010, to the Advisory Agreement dated November 28, 2008, by and among, World Monitor Trust III – Series J, Kenmar Preferred Investments Corp. and Eagle Trading Systems Inc. (incorporated by reference to Exhibit 10.16 to the Registrant’s Form 8-K, File No. 000-51651, filed with the Commission on October 1, 2010)

10.17 Amendment No. 1 dated September 29, 2010, with an effective date of October 1, 2010, to the Advisory Agreement dated November 28, 2008, by and among, World Monitor Trust III – Series J, Kenmar Preferred Investments Corp. and Graham Capital Management, L.P. (incorporated by reference to Exhibit 10.17 to the Registrant’s Form 8-K, File No. 000-51651, filed with the Commission on October 1, 2010)

10.18 Amendment No. 1 dated September 29, 2010, with an effective date of October 1, 2010, to the Advisory Agreement dated July 1, 2009, by and among, World Monitor Trust III – Series J, Kenmar Preferred Investments Corp. and Krom River Investment Management (Cayman) Limited and Krom River Trading AG (incorporated by reference to Exhibit 10.18 to the Registrant’s Form 8-K, File No. 000-51651, filed with the Commission on October 1, 2010)

38

10.19 Amendment No. 1 dated September 29, 2010, with an effective date of October 1, 2010, to the Advisory Agreement dated March 24, 2010 by and among, World Monitor Trust III – Series J, Kenmar Preferred Investments Corp. and Paskewitz Asset Management, LLC (incorporated by reference to Exhibit 10.19 to the Registrant’s Form 8-K, File No. 000-5161, filed with the Commission on October 1, 2010)

10.20 Amendment No. 1 dated September 29, 2010, with an effective date of January 1, 2011, to the Advisory Agreement dated May 28, 2009, by and among, World Monitor Trust III – Series J, Kenmar Preferred Investments Corp. and Ortus Capital Management Limited (incorporated by reference to Exhibit 10.20 to the Registrant’s Form 8-K, File No. 000-5161, filed with the Commission on October 1, 2010)

10.21 Administrative Services Agreement entered into as of January 27, 2011, by and among GlobeOp Financial Services LLC and World Monitor Trust III – Series J (incorporated by reference to Exhibit 10.21 to the Registrant’s Form 10-Q, filed with the Commission on August 15, 2011)

10.22 Middle/Back Office Services Agreement entered into as of January 27,2011, by and between GlobeOp Financial Services LLC, World Monitor Trust III – Series J and Kenmar Preferred Investments Corp. (incorporated by reference to Exhibit 10.22 to the Registrant’s Form 10-Q, filed with the Commission on August 15, 2011)

14.1 Kenmar Preferred Investments Corp. Code of Ethics (adopted pursuant to Section 406 of Sarbanes Oxley Act of 2002) as of November 29, 2011(incorporated by reference to Exhibit 14.1 to the Registrant’s annual report to Form 10-K for the year ended December 31, 2011)

31.1 Certification pursuant to Exchange Act Rules 13a-14 and 15d-14 (filed herewith)

32.1 Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)

99.1 Notice to Unitholders regarding certain changes to the ownership and structure of the Registrant’s underlying managers (incorporated by reference to Exhibit 99.1 to the Registrant’s Form 8-K, File No., filed with the Commission on January 4, 2012)

99.2 Notice to Unitholders regarding certain changes to the ownership and structure of the Registrant’s underlying managers (incorporated by reference to Exhibit 99.1 to the Registrant’s Form 8-K, File No. 000-51651, filed with the Commission on August 17, 2012)

99.3 Notice to Unitholders regarding certain changes to the ownership and structure of the Registrant’s underlying managers (incorporated by reference to Exhibit 99.1 to the Registrant’s Form 8-K, File No. 000-51651, filed with the Commission on December 6, 2012)

99.4 Notice to Unitholders regarding certain changes to the ownership and structure of the Registrant’s underlying managers (incorporated by reference to Exhibit 99.1 to the Registrant’s Form 8-K, File No. 000-51651, filed with the Commission on May 6, 2013)

99.5 Notice to Unitholders regarding certain changes to the ownership and structure of the Registrant’s underlying managers (incorporated by reference to Exhibit 99.1 to the Registrant’s Form 8-K, File No. 000-51651, filed with the Commission on September 3, 2013)

99.6 Notice to Unitholders regarding certain changes to the ownership and structure of the Registrant’s underlying managers (incorporated by reference to Exhibit 99.1 to the Registrant’s Form 8-K, File No. 000-51651, filed with the Commission on September 3, 2013)

101.INS XBRL Instance Document

101.SCH XBRL Taxonomy Extension Schema Document

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document

39

101.LAB XBRL Taxonomy Extension Label Linkbase Document

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

101.DEF XBRL Taxonomy Extension Definition Linkbase Document

In accordance with Rule 406T of Regulation S-T, the XBRL related information in Exhibit 101 to the Quarterly Report on Form 10-Q shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be part of any registration statement or other document filed under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

[Remainder of page left blank intentionally.]

40

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

WORLD MONITOR TRUST III – SERIES J

By: Kenmar Preferred Investments, LLC,
its Managing Owner

By:	/s/ Jim Parrish		Date: May 15, 2018
	Name:	Jim Parrish
	Title:	President
		(Principal Executive Officer)

41

EX-31.1

WORLD MONITOR TRUST III - SERIES J

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jim Parrish, certify that:

1. I have reviewed this Report on Form 10-Q of World Monitor Trust III – Series J (the “Registrant”);

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 condensed 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 Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as such term is 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 we 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 condensed financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the Registrant’s 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 Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s 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 Registrant’s 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 Registrant’s internal control over financial reporting.

Date: May 15, 2018	By:	/s/ Jim Parrish
		Jim Parrish
		(Principal Executive Officer)

EX-32.1

WORLD MONITOR TRUST III - SERIES J

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Jim Parrish, hereby certifies pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Quarterly Report on Form 10-Q of World Monitor Trust III – Series J for the period ended March 31, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Quarterly Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/ Jim Parrish
Name:	Jim Parrish
Title:	President
	(Principal Executive Officer)
	Kenmar Preferred Investments, LLC,
	Managing Owner of
	World Monitor Trust III – Series J
Date:	May 15, 2018

XML

Document and Entity Information	3 Months Ended
	Mar. 31, 2018 shares
Document And Entity Information
Entity Registrant Name	World Monitor Trust III - Series J
Entity Central Index Key	0001345991
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Units, Units Outstanding	0

XML

STATEMENTS OF FINANCIAL CONDITION (Unaudited)	Mar. 31, 2018 USD ($) $ / Units	Dec. 31, 2017 USD ($) $ / Units
ASSETS
Cash and cash equivalents (see Note 2)	$ 1,198,120	$ 1,533,764
Investment in securities, at fair value (cost $164,322 and $163,284 at March 31, 2018 and December 31, 2017, respectively)	163,529	163,470
Investment in Private Funds, at fair value	4,464,739	4,736,849
Receivable from Managing Owner	23,612	52,435
Total assets	5,850,000	6,486,518
LIABILITIES
Accrued expenses payable	52,170	55,217
Service fees payable (see Note 5)	26,712	34,670
Redemptions payable	254,786	220,554
Total liabilities	333,668	310,441
UNITHOLDERS' CAPITAL (Net Asset Value)
Total Unitholders' capital (Net Asset Value)	5,516,332	6,176,077
Total liabilities and Unitholders' capital	5,850,000	6,486,518
Capital Unit Class I [Member]
UNITHOLDERS' CAPITAL (Net Asset Value)
Class I Units: Unitholders' Units - 34,122.031 and 37,528,608 Units outstanding at March 31, 2018 and December 31, 2017, respectively; Class II Units: Unitholders' Units - 5,106.741 and 5,253.004 Units outstanding at March 31, 2018 and December 31, 2017, respectively; Class III Units: Unitholders' Units - 34,347.716 and 35,009.245 Units outstanding at March 31, 2018 and December 31, 2017, respectively	$ 2,151,047	$ 2,521,293
NET ASSET VALUE PER UNIT
Net asset value per unit | $ / Units	63.04	67.18
Capital Unit Class II [Member]
UNITHOLDERS' CAPITAL (Net Asset Value)
Class I Units: Unitholders' Units - 34,122.031 and 37,528,608 Units outstanding at March 31, 2018 and December 31, 2017, respectively; Class II Units: Unitholders' Units - 5,106.741 and 5,253.004 Units outstanding at March 31, 2018 and December 31, 2017, respectively; Class III Units: Unitholders' Units - 34,347.716 and 35,009.245 Units outstanding at March 31, 2018 and December 31, 2017, respectively	$ 394,548	$ 430,526
NET ASSET VALUE PER UNIT
Net asset value per unit | $ / Units	77.26	81.96
Capital Unit Class III [Member]
UNITHOLDERS' CAPITAL (Net Asset Value)
Class I Units: Unitholders' Units - 34,122.031 and 37,528,608 Units outstanding at March 31, 2018 and December 31, 2017, respectively; Class II Units: Unitholders' Units - 5,106.741 and 5,253.004 Units outstanding at March 31, 2018 and December 31, 2017, respectively; Class III Units: Unitholders' Units - 34,347.716 and 35,009.245 Units outstanding at March 31, 2018 and December 31, 2017, respectively	$ 2,970,737	$ 3,224,258
NET ASSET VALUE PER UNIT
Net asset value per unit | $ / Units	86.49	92.10

XML

STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Investments in Securities, at cost	$ 164,322	$ 163,284
Unitholders' capital, outstanding	73,576.53	77,790.9
Capital Unit Class I [Member]
Unitholders' capital, outstanding	37,528,608	37,528,608
Capital Unit Class II [Member]
Unitholders' capital, outstanding	5,106.741	5,253.004
Capital Unit Class III [Member]
Unitholders' capital, outstanding	34,347.716	35,009.245

XML

CONDENSED SCHEDULES OF INVESTMENTS (Unaudited) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Investment in securities, at fair value	$ 163,529	$ 163,470
Investment in Private Funds, at fair value	$ 4,464,739	$ 4,736,849
Double Line Funds [Member]
Fair Value as a percentage of Unitholders' Capital	2.96%	2.65%
Investment in securities, at fair value	$ 163,529	$ 163,470
Investments in Securities at Fair Value [Member]
Fair Value as a percentage of Unitholders' Capital	2.96%	2.65%
Investment in securities, at fair value	$ 163,529	$ 163,470
ADG Systematic Macro Feeder Fund (530) LLC [Member]
Fair Value as a percentage of Unitholders' Capital	29.11%	24.71%
Investment in Private Funds, at fair value	$ 1,606,059	$ 1,526,112
Fort Contrarian Feeder Fund (510) LLC [Member]
Fair Value as a percentage of Unitholders' Capital	20.90%	19.84%
Investment in Private Funds, at fair value	$ 1,152,802	$ 1,225,398
QIM Feeder Fund (526) LLC [Member]
Fair Value as a percentage of Unitholders' Capital	30.92%	32.15%
Investment in Private Funds, at fair value	$ 1,705,878	$ 1,985,339
Investment in Private Funds [Member]
Fair Value as a percentage of Unitholders' Capital	80.93%	76.70%
Investment in Private Funds, at fair value	$ 4,464,739	$ 4,736,849

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CONDENSED SCHEDULES OF INVESTMENTS (Unaudited) (Parenthetical) - shares	Mar. 31, 2018	Dec. 31, 2017
Double Line Funds [Member]
Shares owned	16,402.107	16,398.136
Investments in Securities at Fair Value [Member]
Shares owned	164,322	163,284

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STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
INVESTMENT INCOME
Interest income	$ 0	$ 0
Dividend income	1,038	8,427
Total investment income	1,038	8,427
EXPENSES
Management fees to Managing Owner	27,550	31,073
Managing Owner interest earned on Certain Investment Funds (see Note 4)	59	10,076
Service fees - Class I Units (see Note 5)	33,720	55,855
Sales commission	7,022	19,257
Operating expenses	59,379	87,883
Total expenses	127,730	204,144
General and administrative expenses borne by the Managing Owner and affiliates	23,612	4,756
Net expenses	104,118	199,388
Net investment loss	(103,080)	(190,961)
REALIZED AND UNREALIZED GAIN OR (LOSS) ON INVESTMENTS
Net realized loss on investment in securities	0	(2,694)
Net change in unrealized (depreciation) appreciation on investment in securities	(979)	7,564
Net gain (loss) from investment in securities	(979)	4,870
Total gain (loss) from Investment in Affiliated Funds	0	264,967
Total change in appreciation (depreciation) from Investment in Private Funds	(272,110)	0
Total gain (loss) on Investment in Private and Affiliated Funds	(272,110)	264,967
Total gain (loss) on investments	(273,089)	269,837
NET INCOME (LOSS)	$ (376,169)	$ 78,876
Capital Unit Class I Member
NET LOSS PER WEIGHTED AVERAGE UNIT
Net loss per weighted average Unit	$ (4.32)	$ (0.31)
Weighted average number of Units outstanding	36,052.661	94,484.152
Capital Unit Class II [Member]
NET LOSS PER WEIGHTED AVERAGE UNIT
Net loss per weighted average Unit	$ (4.70)	$ 0.24
Weighted average number of Units outstanding	5,143.307	6,071.706
Capital Unit Class III [Member]
NET LOSS PER WEIGHTED AVERAGE UNIT
Net loss per weighted average Unit	$ (5.64)	$ 2.58
Weighted average number of Units outstanding	34,784.281	41,213.033

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STATEMENTS OF CHANGES IN UNITHOLDERS' CAPITAL EQUITY (Unaudited) - USD ($)	Capital Unit Class I Member	Capital Unit Class II [Member]	Capital Unit Class III [Member]	Total
Unitholders' capital, beginning balance at Dec. 31, 2016	$ 7,858,343	$ 567,090	$ 0	$ 8,425,433
Unitholders' capital, beginning balance, Units at Dec. 31, 2016	106,116.03	6,395.49	0	112,511.52
Subscriptions			$ 4,390,827	$ 4,390,827
Subscriptions, Units			43,908.27	43,908.27
Redemptions	$ (1,271,403)	$ (47,374)	$ (461,886)	$ (1,780,663)
Redemptions, Units	(17,508.21)	(542.21)	(4,400.48)	(22,450.90)
Net loss	$ (28,847)	$ 1,484	$ 106,239	$ 78,876
Unitholders' capital, ending balance at Mar. 31, 2017	$ 6,558,093	$ 521,200	$ 4,035,180	$ 11,114,473
Unitholders' capital, ending balance, Units at Mar. 31, 2017	88,607.82	5,853.28	39,507.79	133,968.89
Unitholders' capital, beginning balance at Dec. 31, 2017	$ 2,521,294	$ 430,526	$ 3,224,257	$ 6,176,077
Unitholders' capital, beginning balance, Units at Dec. 31, 2017	37,528.62	5,253.01	35,009.27	77,790.9
Redemptions	$ (214,379)	$ (11,800)	$ (57,397)	$ (283,576)
Redemptions, Units	(3,406.58)	(146.26)	(661.53)	(4,214.37)
Net loss	$ (155,868)	$ (24,177)	$ (196,124)	$ (376,169)
Unitholders' capital, ending balance at Mar. 31, 2018	$ 2,151,047	$ 394,549	$ 2,970,736	$ 5,516,332
Unitholders' capital, ending balance, Units at Mar. 31, 2018	34,122.04	5,106.75	34,347.74	73,576.53

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ORGANIZATION

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION

Note 1. ORGANIZATION

A. General Description of the Trust

World Monitor Trust III (the “Trust”) is a business trust organized under the laws of Delaware on September 28, 2004. The Trust consisted of four separate and distinct series (“Series”): Series G, H, I and J. Series G, H, I and J commenced operations on December 1, 2005. As of December 31, 2007, Series G, H and I were no longer offered and had been dissolved. Series J will continue to exist unless terminated pursuant to the provisions of Article XIII of the Trust’s Fifth Amended and Restated Declaration of Trust and Trust Agreement (the “Trust Agreement”). The assets of each Series have been segregated from those of the other Series, separately valued and independently managed, and separate financial statements have been prepared for each Series. Each Series was formed to engage in the direct or indirect speculative trading of a diversified portfolio of futures contracts, options on futures contracts and forward currency contracts and may, from time to time, engage in cash and spot transactions. The fiscal year end of Series J is December 31.

Kenmar Preferred Investments, LLC (“Kenmar Preferred” or the “Managing Owner”), a Delaware limited liability company is the managing owner of the Trust and has been delegated administrative authority over the operations of the Trust. As the Managing Owner of the Trust and of each Series, Kenmar Preferred conducts and manages the business of the Trust and each Series.

Clarity Managed Account & Analytics Platform, LLC (“Clarity”), an affiliate of Kenmar Preferred, serves as the managing member for CTA Choice Fund LLC (“CTA Choice”). CTA Choice is a Delaware limited liability company which consists of multiple segregated series, each established pursuant to a separate Certificate of Designation prepared by Clarity. Each series maintains separate and distinct records. The assets associated with each series, and the liabilities and obligations incurred with respect to a particular series are enforceable only against the assets of that series. Effective September 30, 2017 the Registrant terminated investments in CTA Choice.

Kenmar Global Investment Management, LLC (the “Asset Allocator”), an affiliate of the Managing Owner, was the Asset Allocator of CTA Choice prior to March 30, 2016. On March 30, 2016, Kenmar Global Investment Management, LLC was put into liquidation effective December 31, 2015, and Clarity was appointed as the Asset Allocator of CTA Choice. Pursuant to the Investment Management Agreements (formerly Asset Allocation Agreements) between the Managing Owner, the Asset Allocator, and each interestholder, the Asset Allocator determines the trading level of each interestholder’s assets and reallocates among the separate series of CTA Choice as agreed upon with the Trading Advisors. Effective September 30, 2017 the Registrant terminated investments in CTA Choice and by reference the Asset Allocation agreement.

The Trust expects to access the Advisors in the future through various series of Galaxy Plus. Galaxy Plus is an “umbrella fund” having multiple series, each of which is referred to herein as a “Galaxy Fund.” Each Galaxy Fund has its own clearly-defined investment objective and strategies that are implemented by a trading advisor. Gemini Alternative Funds, LLC, a Nebraska limited liability company, is the managing member of Galaxy Plus.

Series J allocated a portion of its net assets (“Allocated Assets”) to commodity trading advisors (each, a “Trading Advisor” and collectively, the “Trading Advisors”) through CTA Choice, for which such allocations are rebalanced quarterly. Through September 30, 2017, Series J allocated its Allocated Assets to each Trading Advisor, which managed and made trading decisions with respect to those Allocated Assets (see below table). The Managing Owner may terminate any current Trading Advisor or select new trading advisors from time to time at its sole discretion in order to achieve the goals of Series J. In the future, the Managing Owner may determine to access certain Trading Advisors through separate investee pools.

Each Trading Advisor listed below is referred to herein as an “Private Fund” and collectively referred to herein as the “Private Funds”:

Private Fund	Trading Advisor	Trading Program	Start Date	Termination Date
ADG Systematic Macro Feeder Fund (530) LLC (“ADG”)	ADG Capital Management, L.L.C.	Systematic macro strategy program	10/1/2017
Fort Contrarian Feeder Fund (510) LLC (“FORT”)	Fort L.P.	Systematic, trend-anticipating trading program	10/1/2017
QIM Feeder Fund (526) LLC (“QIM”)	Quantitative Investment Management, L.L.C.	Short to medium-term trading strategy program	10/1/2017

Effective October 1, 2017 the Registrant allocated assets to Galaxy Plus Funds which together with Affiliated Investment Funds (“Registrant Trading Investments”) dependent on the time period the Registrant effects exposure indirectly to various Trading Advisors.

Series J meets the definition of an investment company in accordance with guidance under Accounting Standards Codification Topic 946 “Financial Services – Investment Companies”.

B. Regulation

As a registrant with the Securities and Exchange Commission (“SEC”), the Trust and each Series are subject to the regulatory requirements under the Securities Act of 1933 and the Securities Exchange Act of 1934.

As a commodity pool, the Trust and each Series are subject to the regulations of the Commodity Futures Trading Commission (“CFTC”), an independent agency of the U.S. government which regulates most aspects of the commodity futures industry; rules of the National Futures Association (“NFA”), an industry self-regulatory organization; and the requirements of the various commodity exchanges where the Trust, indirectly through the Registrant Trading Investments, executes transactions.

C. The Offering

Series J offered units (the “Units”) in three classes (each, a “Class”) – Class I, Class II and Class III.

Up to $281,250,000 Series J, Class I and $93,750,000 Series J, Class II and $4,390,827 Series J, Class III Units were being offered (totaling $379,390,827) (“Subscription Maximum”). Units were being offered to investors who met certain established suitability standards. Prior to November 30, 2008, investments required a minimum aggregate initial subscription of $5,000 and $2,000 for certain Benefit Plan Investors (including IRAs), although the minimum purchase for any single series was $500.

Effective November 30, 2008, the Board of Directors of the Managing Owner of Series J determined that the Units would no longer be publicly offered and would only be available on a private placement basis to “accredited investors” pursuant to Regulation D under the Securities Act of 1933.

For new subscribers, the minimum initial investment is $25,000 ($10,000 for benefit plan investors (including IRAs). The minimum additional subscription amount for current investors is $5,000.

Series J completed its initial offering on December 1, 2005 with gross proceeds of $31,024,443.

Subscriptions were no longer accepted effective December 2013.

Effective February 1, 2017, KMP Futures Fund I, LLC (“KMPFF”), a Delaware Limited Liability Company contributed all of its assets into Series J. Members in KMPFF received a pro rata in-kind distribution of the Series J units effective February 1, 2017, which resulted for all Members in KMPFF to receive a direct ownership interest in Series J under a new class of units Class III (“Class III”).

D. Exchanges, Redemptions and Termination

Redemptions from Series J are permitted on a monthly basis with no redemption charges applicable to either Class I, Class II or Class III Units.

In the event that the Net Asset Value of a Series, after adjustments for distributions, contributions and redemptions, declines by 50% or more since the commencement of trading activities or the first day of a fiscal year, the Series will automatically terminate. Should the Managing Owner make a determination that Series J’s aggregate net assets in relation to its operating expenses make it unreasonable or imprudent to continue the business of Series J, or, in the exercise of its reasonable discretion, if the aggregate Net Asset Value of Series J as of the close of business on any business day declines below $10 million, the Managing Owner may dissolve Series J.

Although the Net Asset Value is currently below $10 million, as of March 31, 2018, the Managing Owner has not made a determination to terminate Series J.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Basis of Accounting

The condensed statements of financial condition, including the condensed schedules of investments, as of March 31, 2017, the condensed statements of operations for the three months ended March 31, 2018 (“First Quarter 2018”) and for the three months ended March 31, 2017 (“First Quarter 2017”) and the condensed statements of changes in Unitholders’ capital for the First Quarter 2018 and the First Quarter 2017 are unaudited.

In the opinion of the Managing Owner, the condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial position of Series J as of March 31, 2018 and the results of its operations for the First Quarter 2018 and First Quarter 2017. The operating results for these interim periods may not be indicative of the results expected for a full year.

The condensed financial statements of Series J are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Such principles require the Managing Owner 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 condensed financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in Series J’s annual report on Form 10-K filed with the SEC for the year ended December 31, 2017.

The weighted average number of Units outstanding was computed for purposes of disclosing net gain (loss) per weighted average Unitholder. The weighted average number of Units is equal to the number of Units outstanding at period end, adjusted proportionately for Units subscribed and redeemed based on their respective time outstanding during the period.

Investment in securities consists of publicly-traded mutual funds, which are valued using the quoted share price on the last day of the period. Realized gains and losses from investment in securities are determined using the identified cost method. Any change in net unrealized gain or loss from the preceding period is reported in the condensed statements of operations. Dividends are recorded on the ex-dividend date.

Series J has elected not to provide a statement of cash flows since substantially all of Series J’s investments are carried at fair value and classified as Level 1 measurements in the fair value hierarchy table or fair value was determined using the practical expedient method. Series J has little or no debt and a condensed statement of changes in Unitholders’ capital (Net Asset Value) is provided.

Consistent with standard business practice in the normal course of business, Series J has provided general indemnifications to the Managing Owner, the Trading Advisors and others when they act, in good faith, in the best interests of Series J. Series J is unable to develop an estimate of the maximum potential amount of future payments that could potentially result from any hypothetical future claim, but expects the risk of having to make any payments under these general business indemnifications to be remote.

Series J accounts for financial assets and liabilities using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels: quoted market prices in active markets for identical assets and liabilities (Level 1), inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly (Level 2), and unobservable inputs for the asset or liability (Level 3).

Series J considers its investments in publicly-traded mutual funds to be based on quoted prices in active markets for identical assets (Level 1).

There are no Level 3 investments as of March 31, 2018 or December 31, 2017, nor any portion of the interim periods.

The following tables summarize the assets measured at fair value using the fair value hierarchy. Series J’s investments in affiliated investment funds and private funds are valued based on the net asset value reported by such funds. By adopting ASU 2015-07, the investments in affiliated investment funds and private funds are excluded from the fair value hierarchy below.

March 31, 2018	Level 1		Level 2		Level 3		Total
Assets:
Investment in securities, at fair value	$	163,529	$	0	$	0	$	163,529
December 31, 2017	Level 1		Level 2		Level 3		Total
Assets:
Investment in securities, at fair value	$	163,470	$	0	$	0	$	163,470

B. Cash and Cash Equivalents

Cash and cash equivalents include cash and investments in overnight deposits. Interest income, if any, includes interest on cash and overnight deposits. In the event of a financial institution’s insolvency, recovery of cash on deposit may be limited to account insurance or other protections afforded such deposits. Series J has established procedures to actively monitor market risk and minimize credit risk, although there can be no assurance that it will, in fact, succeed in doing so. The Unitholders bear the risk of loss only to the extent of the market value of their respective investments and, in certain specific circumstances, distributions or redemptions received.

C. Income Taxes

Series J is treated as a partnership for U.S. federal income tax purposes. As such, Series J is not required to provide for, or pay, any U.S. federal or state income taxes. Income tax attributes that arise from its operations are passed directly to the Unitholders including the Managing Owner. Series J may be subject to other state and local taxes in jurisdictions in which it operates.

Series J appropriately recognizes and discloses uncertain tax provisions in their financial statements. Recognition is permitted for each position if, based on its technical merits, it is “more likely than not” that the position will be upheld under audit by tax authorities. The Managing Owner has reviewed Series J’s tax positions for all open years and concluded that no provision for income taxes or expense is required in these condensed financial statements. Series J has elected an accounting policy to classify interest and penalties related to income taxes as interest or other expense. The 2014 through 2017 tax years generally remain subject to examination by U.S. Federal and most tax authorities.

There have been no differences between the tax basis and book basis of assets, liabilities or Unitholders’ capital since inception of Series J.

D. Profit and Loss Allocations and Distributions

Income and expenses (excluding the service fee and upfront sales commissions further discussed in Note 5) are allocated pro rata to the Class I Units, Class II Units and Class III Units monthly based on the Units outstanding during the month. Class I Units are charged with the service fee and upfront sales commission applicable to such Units. Distributions (other than redemptions of Units) may be made at the sole discretion of the Managing Owner on a pro rata basis in accordance with the respective capital balances of the Unitholders. The Managing Owner has not and does not presently intend to make any distributions.

E. Interest

Interest is recorded on an accrual basis.

F. Offering Costs

In accordance with the Trust’s Agreement and Prospectus, the Managing Owner is responsible for the payment of all offering expenses of Series J incurred after the Initial Offering Period (“ongoing offering costs”), provided that the amount of such ongoing offering costs paid by the Managing Owner are subject to reimbursement by the Trust, without interest, in up to 36 monthly payments during each of the first 36 months following the month in which such expenses were paid by the Managing Owner. Through March 31, 2018, the Managing Owner has paid $2,936,640 in ongoing offering costs, of which $2,879,478 has been allocated to Series J. Ongoing offering costs incurred through November 30, 2006 in the amount of $599,062 will not be reimbursed to the Managing Owner. For the period December 1, 2006 through March 31, 2018, the Managing Owner incurred and Series J was allocated ongoing offering costs in the amount of $2,300,021 and $2,280,415, respectively. Of the $2,280,415, allocated to Series J, $635,144 will not be reimbursable to the Managing Owner. Series J will only be liable for payment of ongoing offering costs on a monthly basis. If Series J terminates prior to completion of payment of such amounts to the Managing Owner, the Managing Owner will not be entitled to any additional payments, and Series J will have no further obligation to the Managing Owner. During the First Quarter 2017 and 2018, Series J’s did not incur any offering cost.

G. Investment in Private Funds

The investment in Galaxy Plus Funds is reported at fair value in Series J’s statements of financial condition. As a practical expedient, fair value ordinarily is the fund’s net asset value as determined for the Galaxy Plus Funds in accordance with the fund’s valuation policies and reported at the time of Series J’s valuation by the management of the funds. Generally, the fair value of Series J’s investment in Galaxy Plus Funds represents the amount that Series J could reasonably expect to receive from the Galaxy Plus Funds if Series J’s investment was redeemed at the time of the valuation, based on information reasonably available at the time the valuation is made and that Series J believes to be reliable

H. New Accounting Pronouncement

In May, 2015, the FASB issued Accounting Standards Update No. 2015-07 (“ASU 2015-07”), “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or its Equivalent).” ASU 2015-07 removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using net asset value per share as a practical expedient. The Managing Owner of the Trust adopted ASU 2015-07 as of January 1, 2016. The adoption of ASU 2015-07 did not have a material impact on the Trust’s Financial Statements.

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RELATED PARTIES

3 Months Ended

Mar. 31, 2018

Related Party Transactions [Abstract]

RELATED PARTIES

Note 3. RELATED PARTIES

Series J reimburses Kenmar Preferred and its affiliates for services it performs for Series J, which include, but are not limited to: management, legal, accounting, registrar, transfer and assignment functions, investor communications, printing, and other administrative services.

The expenses incurred by Series J for services performed by Kenmar Preferred and its affiliates for Series J were as follows:

Expenses payable to the Managing Owner and its affiliates, which are included in accrued expenses payable on the condensed statements of financial condition as of March 31, 2018 and December 31, 2017 were $9,792 and $12,865 respectively.

	Three months ended March 31,
	2018			2017
Management fees to Managing Owner	$	27,550		$	31,073
Managing Owner interest earned on Certain Investment Funds		59			10,076
Operating expenses		21,481			25,587
		49,090			66,736
General and administrative expense borne by the Managing Owner and its affiliates		(23,612	)		(4,756	)
Total	$	25,478		$	61,980

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MANAGING OWNER AND AFFILIATES

3 Months Ended

Mar. 31, 2018

Managing Owner And Affiliates

MANAGING OWNER AND AFFILIATES

Note 4. MANAGING OWNER AND AFFILIATES

The Managing Owner is paid a monthly management fee of 1/12^th of 0.5% (0.5% per annum) of Series J’s Net Asset Value at the beginning of each month Class I and Class II (See Note 3). Class III also pays a management fee to the Managing Owner. The Class III management fee and operating expense cap (see Note 3) are both calculated on the Net Asset Value of Class III at rates of 6.0% and 1.5% per annum, respectively. In addition, Class III’s portion of the Service Fees, which are paid by Class III Units, are deducted from the management fee to be paid by Class III Units to the Managing Owner.

Series J invests a portion of the excess cash balances not required for margin through certain investment funds which invest in (i) U.S. government securities (which include any security issued or guaranteed as to principal or interest by the United States), (ii) any certificate of deposit for any of the foregoing, including U.S. treasury bonds, U.S. treasury bills and issues of agencies of the United States government, (iii) corporate bonds or notes, or (iv) other instruments permitted by applicable rules and regulations (collectively, “Certain Investment Funds”). Such excess cash balances were held at US Bancorp Fund Services, LLC as transfer agent for DoubleLine Funds, at March 31, 2018 and December 31, 2017.

The objective is to obtain a rate of return for Series J that balances risk and return relative to the historically low yields on short term cash deposits with banks and/or brokerage firms. There is no guarantee that the Managing Owner will be successful in investing the excess cash successfully to obtain a greater yield than available on short term cash deposits with banks and/or brokerage firms. The Managing Owner is paid monthly 1/12^th of 50% of the first 1% of the positive returns earned on Series J’s investments in Certain Investment Funds. The calculation is based on Series J’s average annualized Net Asset Value, and any losses related to returns on Certain Investment Funds must first be recovered through subsequent positive returns prior to the Managing Owner receiving a payment. After the calculation of the amount payable to the Managing Owner, Series J will be credited with all additional positive returns (or 100% of any losses) on Series J’s investments in Certain Investment Funds. If at the end of any calendar year, a loss has been incurred on the returns for Certain Investment Funds, then the loss carry forward will reset to zero for the next calendar year with regards to the calculation of the Managing Owner’s portion of Certain Investment Fund’s income. As of March 31, 2018, the loss carry forward amounted to $0. For the First Quarter 2018 and the First Quarter 2017, the Managing Owner’s portion of interest earned on Certain Investment Funds amounted to $59 and $10,076, respectively.

Series J paid a monthly administrative services fee to Clarity for risk management and related services with respect to monitoring the Trading Advisors, indirectly through its investment in Affiliated Investment Funds based on their respective beginning of month Allocated Assets. Investment in affiliated funds and the Clarity agreement have been terminated during the year ended December 31, 2017. For the First Quarter 2018 and the First Quarter 2017, the administrative services fee earned indirectly totaled $0 and $7,856, respectively. Investments in Affiliated Investment Funds ceased September 30, 2017 as the Registrant transitioned to investing in Galaxy Funds.

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SERVICE FEES AND SALES COMMISSIONS

3 Months Ended

Mar. 31, 2018

Service Fees And Sales Commissions

SERVICE FEES AND SALES COMMISSIONS

Note 5. SERVICE FEES AND SALES COMMISSIONS

Series J pays a service fee with respect to Class I Units, monthly in arrears, equal to 1/12^th of 2% (2% per annum) of the Net Asset Value per Unit of the outstanding Class I Units as of the beginning of the month. Series J also pays an initial commission equal to 2% of the initial Net Asset Value per Unit of each Class I Unit sold by the Correspondent Selling Agents (“CSA”), payable on the date such Class I Units are purchased. Commencing with the 13^th month after the purchase of a Class I Unit, the CSAs received an ongoing monthly commission equal to 1/12^th of 2% (2% per annum) of the Net Asset Value per Class I Unit as of the beginning of each month of the Class I Units sold by them.

The Service Fee – Class I Units (as described below) disclosed on the condensed statements of operations represents (i) the monthly 1/12th of 2% of the Net Asset Value per Class I Unit as of the beginning of each month of the Class I Units, (ii) the initial upfront sales commission of 2%, and (iii) a deduction for Series J’s recapture of the 1/12th of 2% service fee on all Units owned for less than 12 months that have received the 2% upfront sales commission and a recapture of the service fee on Units held with no CSA. A portion of the service fee disclosed in the statements of operations represents the monthly on-going trailing compensation paid to service providers ranging from 1/12th of 3.5% (3.5% per annum) to 1/12th of 4.0% (4.0% per annum) of the beginning of month Net Asset Value of the applicable Class III unitholders interests. The services fees are paid by Class III Units and are deducted from the management fee paid to the Managing Owner. For First Quarter 2018, the total fees paid by Class III Units was $46,889 out which $22,850 was paid as management fees to the Managing Owner.

For the First Quarter 2018 and the First Quarter 2017, the Service Fee – Class I and Class III Units is composed of the following:

	Three months ended March 31,
	2018			2017
Monthly 1/12th of 2% service fee calculated on all Class I and Class III Units	$	34,838		$	35,780
Series J’s recapture on 1/12th of 2% service fee on select Units and recapture of the service fee on Units held with no CSA		(1,118	)		(1,654	)
Total	$	33,720		$	34,126

Kenmar Securities LLC (“Selling Agent”) an affiliate of the Managing Owner is the selling agent for Series J. Series J pays the Selling Agent a monthly sales commission equal to 1/12th of 1% (1% annually) of the net asset value of the outstanding units as of the beginning of each month. For the First Quarter 2018 and the First Quarter 2017, Series J directly paid the Selling Agent sales commission of $7,022 and $19,257, respectively.

Series J pays a monthly fee to Wells Fargo for providing continuing due diligence, training, operations, system support, and marketing. For Class I and II Units purchased by clients of Wells Fargo on or prior to October 1, 2010, the fee is 1/12^th of 0.10% (0.10% per annum) of the beginning of the month Net Asset Value. For Class I and II Units purchased subsequent to October 1, 2010 the fee is 1/12^th of 0.30% (0.30% per annum) of the beginning of the month Net Asset Value. These fees are deducted from the management fee paid to the Managing Owner.

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ADMINISTRATOR

3 Months Ended

Mar. 31, 2018

Administrator

ADMINISTRATOR

Note 6. ADMINISTRATOR

Gemini Hedge Fund Services, LLC (“Gemini” or the “Administrator”), a Nebraska limited liability company, serves as the Administrator of Series J. The Administrator performs or supervises the performance of services necessary for the operation and administration of Series J (other than making investment decisions), including administrative and accounting services. The Administrator also calculates Series J’s Net Asset Value. In addition, the Administrator maintains certain books and records of Series J, including certain books and records required by CFTC Rule 4.23(a).

Series J indirectly paid its pro-rata share of administrator fees through its investment in Affiliated Investment Funds. Investment in affiliated funds have been terminated during the year ended December 31, 2017. For the First Quarter 2018 and the First Quarter 2017, Series J indirectly paid administrator fees totaling $0 and $18,292, respectively.

Series J also pays administrator fees directly to the Administrators. For the First Quarter 2018 and the First Quarter 2017, Series J directly paid the Administrator fees of $1,500 and $1,500, respectively.

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INVESTMENT IN AFFILIATED INVESTMENT FUNDS

3 Months Ended

Mar. 31, 2018

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

INVESTMENT IN AFFILIATED INVESTMENT FUNDS

Note 7. INVESTMENT IN PRIVATE FUNDS

Through September 30, 2017, Series J invested a portion of its assets in Affiliated Investment Funds. Series J fully redeemed from the Affiliated Investment Funds as of September 30, 2017. Series J’s investment in Private Funds represents 80.94% and 76.70% of the Net Asset Value of Series J at March 31, 2018 and December 31, 2017, respectively.

Investment in affiliated funds have been terminated during the year ended December 31, 2017. Series J records its proportionate share of income or loss in the condensed statements of operations.

The following tables summarize the change in net asset value (fair value) of Series J’s investment in Private Funds for the Year-To-Date 2018 and the Year-To-Date 2017:

	Net asset value									Net asset value
	December 31, 2017		Purchases		Loss			Redemptions		March 31, 2018
Investment in Private Funds	$	4,736,849	$	0	$	(272,110	)	$	0	$	4,464,739
	Net asset value									Net asset value
	December 31, 2016		Purchases		Gain			Redemptions		December 31, 2017
Investment in Private Funds	$	0	$	4,612,569	$	124,280		$	0	$	4,736,849

The Private Funds are redeemable weekly and require a redemption notice of 2 days. Series J may make additional contributions to or redemptions from the Private Funds on a standard allocation date. The Private Funds engage in trading commodity futures including agricultural, currency, energy, interest rates and stock indices among other types, foreign currency forward contracts and options on futures contracts. Series J records its proportionate share of income or loss in the statements of operations

The following table sets out the total capital contribution and Investment Level split between net asset value:

	Total capital contribution March 31, 2018		Total Investment Level March 31, 2018
ADG Systematic Macro Feeder Fund (530) LLC		1,606,059		1,606,059
Fort Contrarian Feeder Fund (510) LLC		1,152,802		2,305,604
QIM Feeder Fund (526) LLC		1,705,878		3,411,756
Total	$	4,464,739	$	7,323,419

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TRUSTEE

3 Months Ended

Mar. 31, 2018

Trustee

TRUSTEE

Note 8. TRUSTEE

The trustee of the Trust is Wilmington Trust Company, a Delaware banking corporation. The trustee has delegated to the Managing Owner the power and authority to manage the business and affairs of the Trust and has only nominal duties and liabilities with respect to the Trust.

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COSTS, FEES AND EXPENSES

3 Months Ended

Mar. 31, 2018

Costs Fees And Expenses

COSTS, FEES AND EXPENSES

Note 9. COSTS, FEES AND EXPENSES

A. Operating Expenses

Operating expenses of Series J are paid for by Series J.

B. Commissions

Series J, indirectly through the commodity trading activity of the Registrant Trading Investments, is obligated to pay all floor brokerage expenses, give-up charges and NFA clearing and exchange fees. These activities are reflected within the respective net asset value of each of the Registrant Trading Investments.

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DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS

Note 10. DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS

No derivative instruments were directly held by Series J as of March 31, 2018 and December 31, 2017. Derivative trading activity is conducted within the Registrants Trading Investments. Series J’s investment in Registrants Trading Investments is subject to the market and credit risks of the futures contracts, options on futures contracts, forward currency contracts and other financial instruments held or sold short by them. Series J bears the risk of loss only to the extent of the capital commitment of its investment and, in certain specific circumstances, distributions and redemptions received.

Series J is exposed to various types of risks associated with the derivative instruments and related markets in which it indirectly invests through its investment in Registrants Trading Investments. These risks include, but are not limited to, risk of loss from fluctuations in the value of derivative instruments held (market risk) and the inability of counterparties to perform under the terms of Series J’s investment activities (credit risk), including investment in Registrants Trading Investments.

The Managing Owner has established due diligence procedures to actively monitor market risk and minimize credit risk, although there can be no assurance that it will, in fact, succeed in doing so. The Unitholders bear the risk of loss only to the extent of the market value of their respective investment in Series J and, in certain specific circumstances, distributions and redemptions received.

Market Risk

Market risk is influenced by a wide variety of factors, including government programs and policies, political and economic events, the level and volatility of interest rates, foreign currency exchange rates, the diversification effect among the derivative instruments, the liquidity and inherent volatility of the markets in which Series J indirectly invests through its ownership in Registrants Trading Investments.

Credit Risk

The Managing Owner attempts to minimize both credit and market risks by Series J and its Registrant Trading Investments. The Managing Owner monitors the credit risk of the Registrant Trading Investments as part of the due diligence process but does not have direct control over the selection of counterparties and credit risk of the Registrant Trading Investments.

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FINANCIAL HIGHLIGHTS

3 Months Ended

Mar. 31, 2018

Financial Highlights

FINANCIAL HIGHLIGHTS

Note 11. FINANCIAL HIGHLIGHTS

The following information presents per Unit operating performance data and other supplemental data for the First Quarter 2018 and the First Quarter 2017. This information has been derived from information presented in the condensed financial statements:

	Class I						Class II						Class III
	Three months ended March 31,						Three months ended March 31,						Three months ended March 31,
	2018			2017			2018			2017			2018			2017
Per Unit Performance
(for a Unit outstanding throughout the entire period)
Net Asset Value per Unit at beginning of period	$	67.18		$	74.05		$	81.96		$	88.67		$	92.10		$	100.00
Gain (Loss) from operations:
Net realized and change in unrealized gain (loss)(1)		(2.94	)		1.33			(3.61	)		1.54			(4.06	)		3.46
Dividend income (1)		0.01			0.06			0.01			0.08			0.02			0.05
Expenses(1),(4)		(1.21	)		(143	)		(1.10	)		(1.25	)		(1.57	)		(1.37	)
Total gain (loss) from operations		(4.14	)		(0.04	)		(4.70	)		0.37			(5.61	)		2.14
Net Asset Value per Unit at end of period	$	63.04		$	74.01		$	77.26		$	89.04		$	86.49		$	102.14
Total Return(3),(4)		(6.16	)%		(0.05	)%		(5.73	)%		0.42	%		(6.09	)%		2.14	%
Supplemental data
Ratios to average Net Asset Value:
Net investment loss(2),(4)		(7.42	)%		(7.38	)%		(5.50	)%		(5.29	)%		(7.02	)%		(7.74	)%
Dividend income(4)		0.07	%		0.35	%		0.00	%		0.34	%		0.07	%		0.27	%
Other expenses (4)		7.49	%		7.73	%		5.57	%		5.63	%		7.09	%		8.01	%
Total expenses		7.49	%		7.73	%		5.57	%		5.63	%		7.09	%		8.01	%

Total return is calculated based on the change in value of a Unit during the period. An individual Unitholder’s total return and ratios may vary from the above total returns and ratios based on the timing of subscriptions and redemptions.

⁽¹⁾ Dividend income and expenses per Unit are calculated by dividing dividend income and other expenses applicable to each Class by the weighted average number of Units of each Class outstanding during the period. Net realized and change in unrealized loss is a balancing amount necessary to reconcile the change in Net Asset Value per Unit of each Class with the other per Unit information.

⁽²⁾ Represents dividend income less total expenses. This excludes Series J’s proportionate share of income and expenses from investment in Registrants Trading Investments Funds.

⁽³⁾ Not Annualized.

⁽⁴⁾ Net of Class III’s portion of general and administrative expenses borne by the Managing Owner and affiliates.

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SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2018

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

Note 12. SUBSEQUENT EVENTS

From April 1, 2018 through May 15, 2018, there were estimated redemptions of $156,114.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Basis of Accounting

A. Basis of Accounting

The condensed statements of financial condition, including the condensed schedules of investments, as of March 31, 2017, the condensed statements of operations for the three months ended March 31, 2018 (“First Quarter 2018”) and for the three months ended March 31, 2017 (“First Quarter 2017”) and the condensed statements of changes in Unitholders’ capital for the First Quarter 2018 and the First Quarter 2017 are unaudited.

In the opinion of the Managing Owner, the condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial position of Series J as of March 31, 2018 and the results of its operations for the First Quarter 2018 and First Quarter 2017. The operating results for these interim periods may not be indicative of the results expected for a full year.

The condensed financial statements of Series J are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Such principles require the Managing Owner 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 condensed financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in Series J’s annual report on Form 10-K filed with the SEC for the year ended December 31, 2017.

The weighted average number of Units outstanding was computed for purposes of disclosing net gain (loss) per weighted average Unitholder. The weighted average number of Units is equal to the number of Units outstanding at period end, adjusted proportionately for Units subscribed and redeemed based on their respective time outstanding during the period.

Investment in securities consists of publicly-traded mutual funds, which are valued using the quoted share price on the last day of the period. Realized gains and losses from investment in securities are determined using the identified cost method. Any change in net unrealized gain or loss from the preceding period is reported in the condensed statements of operations. Dividends are recorded on the ex-dividend date.

Series J has elected not to provide a statement of cash flows since substantially all of Series J’s investments are carried at fair value and classified as Level 1 measurements in the fair value hierarchy table or fair value was determined using the practical expedient method. Series J has little or no debt and a condensed statement of changes in Unitholders’ capital (Net Asset Value) is provided.

Consistent with standard business practice in the normal course of business, Series J has provided general indemnifications to the Managing Owner, the Trading Advisors and others when they act, in good faith, in the best interests of Series J. Series J is unable to develop an estimate of the maximum potential amount of future payments that could potentially result from any hypothetical future claim, but expects the risk of having to make any payments under these general business indemnifications to be remote.

Series J accounts for financial assets and liabilities using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels: quoted market prices in active markets for identical assets and liabilities (Level 1), inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly (Level 2), and unobservable inputs for the asset or liability (Level 3).

Series J considers its investments in publicly-traded mutual funds to be based on quoted prices in active markets for identical assets (Level 1).

There are no Level 3 investments as of March 31, 2018 or December 31, 2017, nor any portion of the interim periods.

The following tables summarize the assets measured at fair value using the fair value hierarchy. Series J’s investments in affiliated investment funds and private funds are valued based on the net asset value reported by such funds. By adopting ASU 2015-07, the investments in affiliated investment funds and private funds are excluded from the fair value hierarchy below.

March 31, 2018	Level 1		Level 2		Level 3		Total
Assets:
Investment in securities, at fair value	$	163,529	$	0	$	0	$	163,529
December 31, 2017	Level 1		Level 2		Level 3		Total
Assets:
Investment in securities, at fair value	$	163,470	$	0	$	0	$	163,470

Cash and Cash Equivalents

B. Cash and Cash Equivalents

Cash and cash equivalents include cash and investments in overnight deposits. Interest income, if any, includes interest on cash and overnight deposits. In the event of a financial institution’s insolvency, recovery of cash on deposit may be limited to account insurance or other protections afforded such deposits. Series J has established procedures to actively monitor market risk and minimize credit risk, although there can be no assurance that it will, in fact, succeed in doing so. The Unitholders bear the risk of loss only to the extent of the market value of their respective investments and, in certain specific circumstances, distributions or redemptions received.

Income Taxes

C. Income Taxes

Series J is treated as a partnership for U.S. federal income tax purposes. As such, Series J is not required to provide for, or pay, any U.S. federal or state income taxes. Income tax attributes that arise from its operations are passed directly to the Unitholders including the Managing Owner. Series J may be subject to other state and local taxes in jurisdictions in which it operates.

Series J appropriately recognizes and discloses uncertain tax provisions in their financial statements. Recognition is permitted for each position if, based on its technical merits, it is “more likely than not” that the position will be upheld under audit by tax authorities. The Managing Owner has reviewed Series J’s tax positions for all open years and concluded that no provision for income taxes or expense is required in these condensed financial statements. Series J has elected an accounting policy to classify interest and penalties related to income taxes as interest or other expense. The 2014 through 2017 tax years generally remain subject to examination by U.S. Federal and most tax authorities.

There have been no differences between the tax basis and book basis of assets, liabilities or Unitholders’ capital since inception of Series J.

Profit and Loss Allocations and Distributions

D. Profit and Loss Allocations and Distributions

Income and expenses (excluding the service fee and upfront sales commissions further discussed in Note 5) are allocated pro rata to the Class I Units, Class II Units and Class III Units monthly based on the Units outstanding during the month. Class I Units are charged with the service fee and upfront sales commission applicable to such Units. Distributions (other than redemptions of Units) may be made at the sole discretion of the Managing Owner on a pro rata basis in accordance with the respective capital balances of the Unitholders. The Managing Owner has not and does not presently intend to make any distributions.

Interest

E. Interest

Interest is recorded on an accrual basis.

Offering Costs

F. Offering Costs

In accordance with the Trust’s Agreement and Prospectus, the Managing Owner is responsible for the payment of all offering expenses of Series J incurred after the Initial Offering Period (“ongoing offering costs”), provided that the amount of such ongoing offering costs paid by the Managing Owner are subject to reimbursement by the Trust, without interest, in up to 36 monthly payments during each of the first 36 months following the month in which such expenses were paid by the Managing Owner. Through March 31, 2018, the Managing Owner has paid $2,936,640 in ongoing offering costs, of which $2,879,478 has been allocated to Series J. Ongoing offering costs incurred through November 30, 2006 in the amount of $599,062 will not be reimbursed to the Managing Owner. For the period December 1, 2006 through March 31, 2018, the Managing Owner incurred and Series J was allocated ongoing offering costs in the amount of $2,300,021 and $2,280,415, respectively. Of the $2,280,415, allocated to Series J, $635,144 will not be reimbursable to the Managing Owner. Series J will only be liable for payment of ongoing offering costs on a monthly basis. If Series J terminates prior to completion of payment of such amounts to the Managing Owner, the Managing Owner will not be entitled to any additional payments, and Series J will have no further obligation to the Managing Owner. During the First Quarter 2017 and 2018, Series J’s did not incur any offering cost.

Investment in Private Funds

G. Investment in Private Funds

The investment in Galaxy Plus Funds is reported at fair value in Series J’s statements of financial condition. As a practical expedient, fair value ordinarily is the fund’s net asset value as determined for the Galaxy Plus Funds in accordance with the fund’s valuation policies and reported at the time of Series J’s valuation by the management of the funds. Generally, the fair value of Series J’s investment in Galaxy Plus Funds represents the amount that Series J could reasonably expect to receive from the Galaxy Plus Funds if Series J’s investment was redeemed at the time of the valuation, based on information reasonably available at the time the valuation is made and that Series J believes to be reliable

New Accounting Pronouncement

H. New Accounting Pronouncement

In May, 2015, the FASB issued Accounting Standards Update No. 2015-07 (“ASU 2015-07”), “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or its Equivalent).” ASU 2015-07 removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using net asset value per share as a practical expedient. The Managing Owner of the Trust adopted ASU 2015-07 as of January 1, 2016. The adoption of ASU 2015-07 did not have a material impact on the Trust’s Financial Statements.

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ORGANIZATION (Tables)

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of details of affiliated investment funds

Each Trading Advisor listed below is referred to herein as an “Private Fund” and collectively referred to herein as the “Private Funds”:

Private Fund	Trading Advisor	Trading Program	Start Date	Termination Date
ADG Systematic Macro Feeder Fund (530) LLC (“ADG”)	ADG Capital Management, L.L.C.	Systematic macro strategy program	10/1/2017
Fort Contrarian Feeder Fund (510) LLC (“FORT”)	Fort L.P.	Systematic, trend-anticipating trading program	10/1/2017
QIM Feeder Fund (526) LLC (“QIM”)	Quantitative Investment Management, L.L.C.	Short to medium-term trading strategy program	10/1/2017

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2018

Summary Of Significant Accounting Policies Tables

Schedule of assets measured at fair value

The following tables summarize the assets measured at fair value using the fair value hierarchy.

March 31, 2018	Level 1		Level 2		Level 3		Total
Assets:
Investment in securities, at fair value	$	163,529	$	0	$	0	$	163,529
December 31, 2017	Level 1		Level 2		Level 3		Total
Assets:
Investment in securities, at fair value	$	163,470	$	0	$	0	$	163,470

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RELATED PARTIES (Tables)

3 Months Ended

Mar. 31, 2018

Related Party Transactions [Abstract]

Summary of expenses incurred by Series J for services performed by Kenmar Preferred and its affiliates

	Three months ended March 31,
	2018			2017
Management fees to Managing Owner	$	27,550		$	31,073
Managing Owner interest earned on Certain Investment Funds		59			10,076
Operating expenses		21,481			25,587
		49,090			66,736
General and administrative expense borne by the Managing Owner and its affiliates		(23,612	)		(4,756	)
Total	$	25,478		$	61,980

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SERVICE FEES AND SALES COMMISSIONS (Tables)

3 Months Ended

Mar. 31, 2018

Service Fees And Sales Commissions

Schedule of composition of service fee - Class I Units

For the First Quarter 2018 and the First Quarter 2017, the Service Fee – Class I and Class III Units is composed of the following:

	Three months ended March 31,
	2018			2017
Monthly 1/12th of 2% service fee calculated on all Class I and Class III Units	$	34,838		$	35,780
Series J’s recapture on 1/12th of 2% service fee on select Units and recapture of the service fee on Units held with no CSA		(1,118	)		(1,654	)
Total	$	33,720		$	34,126

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INVESTMENT IN AFFILIATED INVESTMENT FUNDS (Tables)

3 Months Ended

Mar. 31, 2018

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

Schedule of change in net asset value of investments in Affiliated Investment Funds

The following tables summarize the change in net asset value (fair value) of Series J’s investment in Private Funds for the Year-To-Date 2018 and the Year-To-Date 2017:

	Net asset value									Net asset value
	December 31, 2017		Purchases		Loss			Redemptions		March 31, 2018
Investment in Private Funds	$	4,736,849	$	0	$	(272,110	)	$	0	$	4,464,739
	Net asset value									Net asset value
	December 31, 2016		Purchases		Gain			Redemptions		December 31, 2017
Investment in Private Funds	$	0	$	4,612,569	$	124,280		$	0	$	4,736,849

Schedule of capital commitment to Affiliated Investment Funds

The following table sets out the total capital contribution and Investment Level split between net asset value:

	Total capital contribution March 31, 2018		Total Investment Level March 31, 2018
ADG Systematic Macro Feeder Fund (530) LLC		1,606,059		1,606,059
Fort Contrarian Feeder Fund (510) LLC		1,152,802		2,305,604
QIM Feeder Fund (526) LLC		1,705,878		3,411,756
Total	$	4,464,739	$	7,323,419

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FINANCIAL HIGHLIGHTS (Tables)

3 Months Ended

Mar. 31, 2018

Financial Highlights Tables

Schedule of Unit operating performance data and other supplemental financial data

The following information presents per Unit operating performance data and other supplemental data for the First Quarter 2018 and the First Quarter 2017. This information has been derived from information presented in the condensed financial statements:

	Class I						Class II						Class III
	Three months ended March 31,						Three months ended March 31,						Three months ended March 31,
	2018			2017			2018			2017			2018			2017
Per Unit Performance
(for a Unit outstanding throughout the entire period)
Net Asset Value per Unit at beginning of period	$	67.18		$	74.05		$	81.96		$	88.67		$	92.10		$	100.00
Gain (Loss) from operations:
Net realized and change in unrealized gain (loss)(1)		(2.94	)		1.33			(3.61	)		1.54			(4.06	)		3.46
Dividend income (1)		0.01			0.06			0.01			0.08			0.02			0.05
Expenses(1),(4)		(1.21	)		(143	)		(1.10	)		(1.25	)		(1.57	)		(1.37	)
Total gain (loss) from operations		(4.14	)		(0.04	)		(4.70	)		0.37			(5.61	)		2.14
Net Asset Value per Unit at end of period	$	63.04		$	74.01		$	77.26		$	89.04		$	86.49		$	102.14
Total Return(3),(4)		(6.16	)%		(0.05	)%		(5.73	)%		0.42	%		(6.09	)%		2.14	%
Supplemental data
Ratios to average Net Asset Value:
Net investment loss(2),(4)		(7.42	)%		(7.38	)%		(5.50	)%		(5.29	)%		(7.02	)%		(7.74	)%
Dividend income(4)		0.07	%		0.35	%		0.00	%		0.34	%		0.07	%		0.27	%
Other expenses (4)		7.49	%		7.73	%		5.57	%		5.63	%		7.09	%		8.01	%
Total expenses		7.49	%		7.73	%		5.57	%		5.63	%		7.09	%		8.01	%

Total return is calculated based on the change in value of a Unit during the period. An individual Unitholder’s total return and ratios may vary from the above total returns and ratios based on the timing of subscriptions and redemptions.

⁽¹⁾ Dividend income and expenses per Unit are calculated by dividing dividend income and other expenses applicable to each Class by the weighted average number of Units of each Class outstanding during the period. Net realized and change in unrealized loss is a balancing amount necessary to reconcile the change in Net Asset Value per Unit of each Class with the other per Unit information.

⁽²⁾ Represents dividend income less total expenses. This excludes Series J’s proportionate share of income and expenses from investment in Registrants Trading Investments Funds.

⁽³⁾ Not Annualized.

⁽⁴⁾ Net of Class III’s portion of general and administrative expenses borne by the Managing Owner and affiliates.

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ORGANIZATION (Details Narrative) - USD ($)	Dec. 01, 2005	Mar. 31, 2018	Nov. 30, 2008
Subscription maximum		$ 379,390,827
Gross proceeds of initial offering	$ 31,024,443
Termination threshold - NAV adjustment		50.00%
Termination threshold - aggregate NAV		$ 10,000,000
Subscribers prior to November 30, 2008 [Member]
Minimum aggregate initial subscription			$ 5,000
Minimum aggregate initial subscription - Benefit Plans			2,000
Minimum purchase obligation for any single series			$ 500
New Subscribers [Member]
Minimum aggregate initial subscription		25,000
Minimum aggregate initial subscription - Benefit Plans		10,000
Minimum purchase obligation for any single series		5,000
Capital Unit Class I [Member]
Subscription maximum		281,250,000
Capital Unit Class II [Member]
Subscription maximum		93,750,000
Capital Unit Class III [Member]
Subscription maximum		$ 4,390,827

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ORGANIZATION (Details)

3 Months Ended

Mar. 31, 2018

ADG Systematic Macro Feeder Fund (530) LLC [Member]

Affiliated Investment Fund Name:

ADG Systematic Macro Feeder Fund (530) LLC (“ADG”)

Trading Advisor

ADG Capital Management, L.L.C.

Trading Program

Systematic macro strategy program

Start Date

Oct. 01, 2017

Fort Contrarian Feeder Fund (510) LLC [Member]

Affiliated Investment Fund Name:

Fort Contrarian Feeder Fund (510) LLC (“FORT”)

Trading Advisor

Fort L.P.

Trading Program

Systematic, trend-anticipating trading program

Start Date

Oct. 01, 2017

QIM Feeder Fund (526) LLC [Member]

Affiliated Investment Fund Name:

QIM Feeder Fund (526) LLC (“QIM”)

Trading Advisor

Quantitative Investment Management, L.L.C.

Trading Program

Short to medium-term trading strategy program

Start Date

Oct. 01, 2017

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Summary of assets and liabilities measured at fair value
Investment in securities, at fair value	$ 163,529	$ 163,470
Fair Value Inputs, Level 1 [Member]
Summary of assets and liabilities measured at fair value
Investment in securities, at fair value	163,529	163,470
Fair Value Inputs, Level 2 [Member]
Summary of assets and liabilities measured at fair value
Investment in securities, at fair value	0	0
Fair Value Inputs, Level 3 [Member]
Summary of assets and liabilities measured at fair value
Investment in securities, at fair value	$ 0	$ 0

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		136 Months Ended
	Mar. 31, 2018	Nov. 30, 2006	Mar. 31, 2018	Dec. 31, 2017
Number of monthly payments subject to reimbursement by Trust, without interest	36 months
Total ongoing offering costs incurred to date				$ 2,936,640
Ongoing offering costs incurred not be reimbursed to the Managing Owner		$ 599,062
Ongoing offering costs incurred
Capital Unit Class II [Member]
Total ongoing offering costs incurred to date				$ 2,879,478
Ongoing offering costs incurred			$ 2,280,415
Managing Owner [Member]
Ongoing offering costs incurred			$ 2,300,021

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RELATED PARTIES (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Related Party Expenses
Management fees to Managing Owner	$ 27,550	$ 31,073
Managing Owner interest earned on Certain Investment Funds	59	10,076
Total expenses	127,730	204,144
General and administrative expenses borne by the Managing Owner and affiliates	(23,612)	(4,756)
Kenmar Preferred and Affiliates [Member]
Related Party Expenses
Management fees to Managing Owner	27,550	31,073
Managing Owner interest earned on Certain Investment Funds	59	10,076
Operating expenses	21,481	25,587
Total expenses	49,090	66,736
General and administrative expenses borne by the Managing Owner and affiliates	(23,612)	(4,756)
Related party expenses	$ 25,478	$ 61,980

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RELATED PARTIES (Details Narrative) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Related Party Transactions [Abstract]
Expenses payable to Kenmar preferred and its affiliates	$ 9,792	$ 12,865

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MANAGING OWNER AND AFFILIATES (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Managing Owner And Affiliates
Managing owner interest earned on certain investment funds	$ 59	$ 10,076
Administrative services fee earned	$ 0	$ 7,856
Management fees on net assets (percent)	0.50%
Percentage of losses credited to company in calculating management fees	100.00%

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SERVICE FEES AND SALES COMMISSIONS (Details Narrative) - USD ($)		3 Months Ended
	Sep. 30, 2010	Mar. 31, 2018	Mar. 31, 2017
Annual Service fee paid to Wells Fargo	0.10%
Selling Agent sales commission		$ 7,022	$ 19,257
Capital Unit Class I Member
Annual service fees		2.00%
Upfront commission paid to correspondent selling agents		2.00%
Annual Service fee paid to Wells Fargo		0.30%

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SERVICE FEES AND SALES COMMISSIONS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Composition of service fee - Class I Units
Monthly 1/12 of 2% service fee calculated on all Class I Units	$ 34,838	$ 35,780
Series J's recapture on 1/12 of 2% service fee on select units and recapture of the service fee on units held with no CSA	(1,118)	(1,654)
Total	$ 33,720	$ 55,855

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ADMINISTRATOR (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2016
Administrative service fees	$ 33,720	$ 55,855
Direct Paid Fees [Member]
Administrative service fees	6,286	8,756	$ 25,000
Investments in Affiliated Investment Funds [Member]
Administrative service fees	$ 57,743	$ 68,797	$ 90,811

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INVESTMENT IN AFFILIATED INVESTMENT FUNDS (Details Narrative)	Mar. 31, 2018	Dec. 31, 2017
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]
Portion of net asset value invested in affiliated Private Funds	80.94%	76.70%

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INVESTMENT IN AFFILIATED INVESTMENT FUNDS (Details) - Investment in Private Funds [Member] - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Change in fair value of net asset value investments in Affiliated Investment Funds
Investments in Affiliated Investment Funds, Net asset value, beginning balance	$ 4,736,849	$ 0
Purchases	0	4,612,569
Gain / (Loss)	(272,110)	124,280
Redemptions	0	0
Investments in Affiliated Investment Funds, Net asset value, ending balance	$ 4,464,739	$ 4,736,849

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INVESTMENT IN AFFILIATED INVESTMENT FUNDS (Details 1)	Mar. 31, 2018 USD ($)
Total capital contribution	$ 4,464,739
Total investment level	7,323,419
ADG Systematic Macro Feeder Fund (530) LLC [Member]
Total capital contribution	1,606,059
Total investment level	1,606,059
Fort Contrarian Feeder Fund (510) LLC [Member]
Total capital contribution	1,152,802
Total investment level	2,305,604
QIM Feeder Fund (526) LLC [Member]
Total capital contribution	1,705,878
Total investment level	$ 3,411,756

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FINANCIAL HIGHLIGHTS (Details) - $ / Units		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
Capital Unit Class I Member
Per Unit Performance (for a unit outstanding throughout the entire period)
Net Asset Value per Unit at beginning of period		67.18	74.05
Gain (Loss) from operations:
Net realized and change in unrealized gain	[1]	(2.94)	1.33
Dividend income	[1]	0.01	0.06
Expenses	[1],[2]	(1.21)	(1.43)
Total gain from operations		(4.14)	(0.04)
Net Asset Value per Unit at end of period		63.04	74.01
Total Return	[2],[3]	(6.16%)	(0.05%)
Supplemental data - Ratios to Average Net Asset Values:
Net investment loss	[2],[4]	(7.42%)	(7.38%)
Interest income	[2]	0.07%	0.35%
Dividend income	[2]	7.49%	7.73%
Other expenses		7.49%	7.73%
Capital Unit Class II [Member]
Per Unit Performance (for a unit outstanding throughout the entire period)
Net Asset Value per Unit at beginning of period		81.96	88.67
Gain (Loss) from operations:
Net realized and change in unrealized gain	[1]	(3.61)	1.54
Dividend income	[1]	0.01	0.08
Expenses	[1],[2]	(1.10)	(1.25)
Total gain from operations		(4.70)	0.37
Net Asset Value per Unit at end of period		77.26	89.04
Total Return	[2],[3]	(5.73%)	0.42%
Supplemental data - Ratios to Average Net Asset Values:
Net investment loss	[2],[4]	(5.50%)	(5.29%)
Interest income	[2]	0.00%	0.34%
Dividend income	[2]	5.57%	5.63%
Other expenses		5.57%	5.63%
Capital Unit Class III [Member]
Per Unit Performance (for a unit outstanding throughout the entire period)
Net Asset Value per Unit at beginning of period		92.10	100.00
Gain (Loss) from operations:
Net realized and change in unrealized gain	[1]	(4.06)	3.46
Dividend income	[1]	0.02	0.05
Expenses	[1],[2]	(1.57)	(1.37)
Total gain from operations		(5.61)	2.14
Net Asset Value per Unit at end of period		86.49	102.14
Total Return	[2],[3]	(6.09%)	2.14%
Supplemental data - Ratios to Average Net Asset Values:
Net investment loss	[2],[4]	(7.02%)	(7.74%)
Interest income	[2]	0.07%	0.27%
Dividend income	[2]	7.09%	8.01%
Other expenses		7.09%	8.01%

[1] Dividend income and expenses per Unit are calculated by dividing dividend income and other expenses applicable to each Class by the weighted average number of Units of each Class outstanding during the period. Net realized and change in unrealized loss is a balancing amount necessary to reconcile the change in Net Asset Value per Unit of each Class with the other per Unit information.

[2] Net of Class III's portion of general and administrative expenses borne by the Managing Owner and affiliates.

[3] Not Annualized.

[4] Represents dividend income less total expenses. This excludes Series J's proportionate share of income and expenses from investment in Registrants Trading Investments Funds.

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SUBSEQUENT EVENTS (Details Narrative)	1 Months Ended
	May 15, 2018 USD ($)
Subsequent Event [Member]
Redemptions	$ 156,114