UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) of the

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2014

OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period fromto

Commission File Number 0-53965

GRAHAM ALTERNATIVE INVESTMENT FUND I LLC

BLENDED STRATEGIES PORTFOLIO

(Exact name of registrant as specified in its charter)

Delaware	20-4897069
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

c/o GRAHAM CAPITAL MANAGEMENT, L.P.

40 Highland Avenue

Rowayton, CT  06853

(Address of principal executive offices) (Zip Code)

Paul Sedlack

Graham Capital Management, L.P.

40 Highland Avenue

Rowayton, CT  06853

(203) 899-3400

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (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 the 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 the definitions of “large accelerated filer”, “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 o Smaller reporting company x

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

Yes o  No x

As of August 1, 2014, 771,931.271 Units of the Blended Strategies Portfolio were outstanding.

GRAHAM ALTERNATIVE INVESTMENT FUND I LLC

BLENDED STRATEGIES PORTFOLIO

FORM 10-Q

INDEX

		Page
		Number
PART I - Financial Information:
Item 1.	Financial Statements:
	Graham Alternative Investment Fund I LLC Blended Strategies Portfolio
	Statements of Financial Condition at June 30, 2014 (unaudited) and December 31, 2013 (audited)	1
	Unaudited Statements of Operations for the three and six months ended June 30, 2014 and 2013	2
	Unaudited Statements of Changes in Members’ Capital for the six months ended June 30, 2014 and 2013	3
	Unaudited Statements of Cash Flows for the six months ended June 30, 2014 and 2013	4
	Notes to Unaudited Financial Statements	5
	Graham Alternative Investment Trading LLC
	Statements of Financial Condition at June 30, 2014 (unaudited) and December 31, 2013 (audited)	13
	Condensed Schedules of Investments at June 30, 2014 (unaudited) and December 31, 2013 (audited)	14
	Unaudited Statements of Operations and Incentive Allocation for the three and six months ended June 30, 2014 and 2013	15
	Unaudited Statements of Changes in Members’ Capital for the six months ended June 30, 2014 and 2013	16
	Unaudited Statements of Cash Flows for the six months ended June 30, 2014 and 2013	17
	Notes to Unaudited Financial Statements	18
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	60
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	68

Item 4.	Controls and Procedures	69
PART II - Other Information		70
Exhibits
EX - 31.1	Certification
EX - 31.2	Certification
EX - 32.1	Certification

PART I

Item 1. Financial Statements

Graham Alternative Investment Fund I LLC

Blended Strategies Portfolio

Statements of Financial Condition

	June 30, 2014 (Unaudited)		December 31, 2013 (Audited)
Assets
Investment in Graham Alternative Investment Trading LLC, at fair value	$	84,066,441	$	99,045,133
Redemption receivable from Graham Alternative Investment Trading LLC		3,305,924		3,619,464
Total assets	$	87,372,365	$	102,664,597
Liabilities and members’ capital
Liabilities:
Accrued redemptions	$	3,305,924	$	3,619,464
Total liabilities		3,305,924		3,619,464
Members’ capital:
Class 0 Units (543,584.948 and 605,548.066 units issued and outstanding at $115.00 and $127.72, respectively)		62,513,894		77,340,803
Class 2 Units (245,659.774 and 220,552.039 units issued and outstanding at $87.73 and $98.41, respectively)		21,552,547		21,704,330
Total members’ capital		84,066,441		99,045,133
Total liabilities and members’ capital	$	87,372,365	$	102,664,597

See accompanying notes.

1

Graham Alternative Investment Fund I LLC

Blended Strategies Portfolio

Unaudited Statements of Operations

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Net gain (loss) allocated from investment in Graham Alternative Investment Trading LLC
Net realized gain (loss) on investments	$	(16,440	)	$	4,173,329		$	(6,048,650	)	$	16,908,124
Net increase (decrease) in unrealized appreciation on investments		1,470,361			(3,254,288	)		(2,451,076	)		(3,754,775	)
Brokerage commissions and fees		(118,873	)		(209,923	)		(256,948	)		(510,214	)
Net gain (loss) allocated from investment in Graham Alternative Investment Trading LLC		1,335,048			709,118			(8,756,674	)		12,643,135
Net investment loss allocated from investment in Graham Alternative Investment Trading LLC
Investment income
Interest income		48,352			64,672			97,175			142,745
Expenses
Advisory fees		387,266			635,363			784,275			1,335,625
Sponsor fees		273,458			400,724			542,172			824,381
Professional fees and other		39,165			36,826			76,202			285,901
Administrator’s fees		30,013			47,386			59,732			99,486
Total expenses		729,902			1,120,299			1,462,381			2,545,393
Net investment loss allocated from investment in Graham Alternative Investment Trading LLC		(681,550	)		(1,055,627	)		(1,365,206	)		(2,402,648	)
Net income (loss)	$	653,498		$	(346,509	)	$	(10,121,880	)	$	10,240,487

See accompanying notes.

2

Graham Alternative Investment Fund I LLC

Blended Strategies Portfolio

Unaudited Statements of Changes in Members’ Capital

For the six months ended June 30, 2014 and 2013

	Class 0 Units						Class 2 Units
	Units			Capital			Units			Capital			Total Members’ Capital
Members’ capital, December 31, 2012		1,241,639.087		$	142,637,622			279,471.807		$	25,234,372		$	167,871,994
Subscriptions		40,089.080			4,890,000			3,741.593			351,886			5,241,886
Redemptions		(541,309.472	)		(66,919,633	)		(39,689.875	)		(3,785,813	)		(70,705,446	)
Net income		–			9,081,044			–			1,159,443			10,240,487
Members’ capital, June 30, 2013		740,418.695		$	89,689,033			243,523.525		$	22,959,888		$	112,648,921

	Class 0 Units						Class 2 Units
	Units			Capital			Units			Capital			Total Members’ Capital
Members’ capital, December 31, 2013		605,548.066		$	77,340,803			220,552.039		$	21,704,330		$	99,045,133
Subscriptions		23,805.913			2,795,079			58,712.079			5,164,210			7,959,289
Redemptions		(85,769.031	)		(9,841,385	)		(33,604.344	)		(2,974,716	)		(12,816,101	)
Net loss		–			(7,780,603	)		–			(2,341,277	)		(10,121,880	)
Members’ capital, June 30, 2014		543,584.948		$	62,513,894			245,659.774		$	21,552,547		$	84,066,441

See accompanying notes.

3

Graham Alternative Investment Fund I LLC

Blended Strategies Portfolio

Unaudited Statements of Cash Flows

	Six Months Ended June 30,
	2014			2013
Cash flows provided by operating activities
Net (loss) income	$	(10,121,880	)	$	10,240,487
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Net loss (income) allocated from investment in Graham Alternative Investment Trading LLC		10,121,880			(10,240,487	)
Proceeds from sale of investments in Graham Alternative Investment Trading LLC		13,129,641			84,023,696
Investments in Graham Alternative Investment Trading LLC		(7,959,289	)		(5,241,886	)
Net cash provided by operating activities		5,170,352			78,781,810
Cash flows used in financing activities
Subscriptions		7,959,289			5,241,886
Redemptions		(13,129,641	)		(84,023,696	)
Net cash used in financing activities		(5,170,352	)		(78,781,810	)
Net change in cash and cash equivalents		–			–
Cash and cash equivalents, beginning of period		–			–
Cash and cash equivalents, end of period	$	–		$	–

See accompanying notes.

4

Graham Alternative Investment Fund I LLC

Blended Strategies Portfolio

Notes to Unaudited Financial Statements

June 30, 2014

1. Organization and Business

The Blended Strategies Portfolio (the “Fund”) is a series of Graham Alternative Investment Fund I LLC (“GAIF I”), a Delaware Series Limited Liability Company established through an amendment to the certificate of formation, effective March 28, 2013. GAIF I has two other series in addition to the Fund, Systematic Strategies Portfolio and Discretionary Strategies Portfolio. GAIF I closed the Discretionary Strategies Portfolio on June 30, 2014. Prior to March 28, 2013, GAIF I was organized as a Delaware Limited Liability Company which was formed on May 16, 2006 and commenced operations on August 1, 2006. Comparative information contained within these financial statements for periods prior to March 28, 2013 represent the data pertaining solely to the Blended Strategies Portfolio. GAIF I is registered as a commodity pool with the U.S. Commodity Futures Trading Commission.

As a Series Limited Liability Company each series is legally segregated, and the assets associated with each series are held separately and accounted for in separate and distinct records from the assets of any other series of GAIF I. The debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to a particular series are enforceable against the assets of such series only, and not against the assets of GAIF I generally or any other series thereof. Further, none of the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to GAIF I are enforceable against the assets of any other series.

The Fund offers investors Class 0 and Class 2 units. The Fund invests all of its assets dedicated to trading in Graham Alternative Investment Trading LLC (“GAIT”), a Delaware Limited Liability Company which was formed on May 18, 2006 and commenced operations on August 1, 2006. GAIT invests in various master trading vehicles (“Master Funds”), all of which are managed by Graham Capital Management, L.P. (the “Advisor” or “Manager”). The Manager is the manager and the sole investment advisor of GAIT and the Fund. The Manager is registered as a Commodity Pool Operator and Commodity Trading Advisor with the U.S. Commodity Futures Trading Commission and is a member of the National Futures Association. The Manager is also registered as a Registered Investment Advisor with the Securities and Exchange Commission. The Fund’s Units are registered under the Securities Exchange Act of 1934.

The investment objective of the Fund is to achieve long-term capital appreciation through professionally managed trading in both U.S. and foreign markets primarily in futures contracts, forwards contracts, spot currency contracts, and associated derivative instruments, such as options and swaps, through its investment in GAIT, which in turn invests in various Master Funds. The Master Funds seek to profit from opportunities in the global financial markets, including interest rate futures, foreign exchange, global stock indices and energy, metals and agricultural futures, as professionally managed multi-strategy investment vehicles. Each of the investment programs consists of multiple trading strategies of the Manager, which the Manager has combined in an effort to diversify the Fund’s investment exposure and to make the Fund’s performance returns less volatile and more consistently profitable.

SEI Global Services, Inc. (“SEI”) is the Fund’s independent administrator and transfer agent. SEI is responsible for certain matters pertaining to the administration of the Fund.

The Fund will terminate on December 31, 2050 or at an earlier date if certain conditions occur as outlined in the Limited Liability Company Agreement (“LLC Agreement”).

The performance of the Fund is directly affected by the performance of GAIT; therefore these financial statements should be read in conjunction with the attached financial statements of GAIT.

5

Graham Alternative Investment Fund I LLC

Blended Strategies Portfolio

Notes to Unaudited Financial Statements (continued)

1. Organization and Business (continued)

Duties of the Manager

Subject to the terms and conditions of the LLC Agreement, the Manager has complete and exclusive responsibility for managing and administering the affairs of the Fund and for directing the investment and reinvestment of the assets of the Fund and GAIT.

2. Summary of Significant Accounting Policies

These financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and all amounts are stated in U.S. dollars. The Fund is an investment company and applies specialized accounting guidance as outlined in Financial Accounting Standards Board Accounting Standards Update 2013-08, Financial Services – Investment Companies (Topic 946), Amendments to the Scope, Measurement, and Disclosure Requirements. The Manager has evaluated this guidance and has determined the Fund meets the criteria to be classified as an investment company. The preparation of these financial statements requires the Manager to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Investment in Graham Alternative Investment Trading LLC

The Fund records its investment in GAIT at fair value based upon the Fund’s proportionate share of GAIT’s reported net asset value in accordance with U.S. GAAP. In determining its net asset value, GAIT records its investments in Master Funds at fair value based upon GAIT’s proportionate share of the Master Funds’ reported net asset value. The Fund records its proportionate share of GAIT’s investment income and loss, expenses, fees, and realized and unrealized gains and losses on a monthly basis and includes them in the statements of operations. Purchases and sales of units in GAIT are recorded on a trade date basis. The accounting policies of GAIT are described in its attached financial statements.

GAIT charges its investors, including the Fund, an advisory fee, administrator’s fee, sponsor fee and incentive allocation, all of which are described in detail in Note 4. The Fund does not charge any additional fees; however each investor in the Fund indirectly bears a portion of the advisory fee, sponsor fee, administrator’s fee, and incentive allocation charged by GAIT.

At June 30, 2014 and December 31, 2013, the Fund owned 57.56% and 54.85%, respectively of GAIT.

Fair Value

The fair value of the assets and liabilities of the Fund and GAIT, which qualify as financial instruments under U.S. GAAP, approximates the carrying amounts presented in the statements of financial condition. Changes in these carrying amounts are included in the statements of operations.

The Fund follows U.S. GAAP for fair value measurements, which defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurements. The Fund reports the fair value of its investment related assets and liabilities in accordance with the hierarchy established under U.S. GAAP. U.S. GAAP uses a three-level hierarchy for fair value measurement based on the activeness of the market and the transparency and independence of inputs used in the valuation of an asset or liability as of the measurement date.

6

Graham Alternative Investment Fund I LLC

Blended Strategies Portfolio

Notes to Unaudited Financial Statements (continued)

2. Summary of Significant Accounting Policies (continued)

Fair Value (continued)

The fair value hierarchy categorizes asset and liability positions into one of three levels, as summarized below, based on the inputs and assumptions used in deriving fair value.

· Level 1 inputs are unadjusted closing or settlement prices for such assets or liabilities as published by the primary exchange upon which they are traded.

· Level 2 inputs include quoted prices for similar assets and liabilities obtained from independent brokers and/or market makers in each security. With respect to the Fund’s investment in GAIT, Level 2 inputs include the net asset value of the underlying fund in which it holds an investment.

· Level 3 inputs are those which are considered unobservable and are significant in arriving at fair value.

In accordance with this hierarchy, the Fund’s investment in GAIT has been classified as a Level 2 valuation. There were no Level 3 assets or liabilities held at any point during the six months ended June 30, 2014 or the year ended December 31, 2013 by the Fund, GAIT, or the Master Funds, and there were no transfers between levels during those periods. Transfers between levels, if any, are recognized on the actual date of the event or change in circumstances that cause the transfer.

Indemnifications

In the normal course of business, the Master Funds, GAIT, Graham Cash Assets LLC (“Cash Assets”), and the Fund enter into contracts that contain a variety of indemnifications. Such contracts may include those by Cash Assets and the Master Funds with their brokers and trading counterparties. The Fund’s maximum exposure under these arrangements is unknown; however, the Fund has not had prior claims or losses with respect to such indemnifications and considers the risk of loss to be remote.

3. Capital Accounts

The Fund offers two classes (each a “Class”) of Units (collectively the “Units”), being Class 0 Units and Class 2 Units. The Fund may issue additional Classes in the future subject to different fees, expenses or other terms, or to invest in other investment programs or combinations of investment programs managed by the Manager.

A separate Capital Account is maintained for each Member with respect to each member’s Class of Units. The initial balance of each Member’s Capital Account is equal to the initial contributionto the Fund by such Member with respect to the Class to which such Capital Account relates. Each Member’s Capital Account is increased by any additional subscription, and decreased by any redemption by such Member of Units of such Class to which the Capital Account relates. All income and expenses of the Fund are allocated among the Members’ Capital Accounts in proportion to the balance that each Capital Account bears to the balance of all Capital as of the beginning of such fiscal period.

Subscriptions

Units may be purchased at a price equal to the Net Asset Value per Unit of the relevant Class as of the immediately preceding Valuation Day as defined in the LLC Agreement. The minimum initial subscription from each investor in each Class is $50,000. Members may subscribe for additional Units in a minimum amount of not less than $5,000.

7

Graham Alternative Investment Fund I LLC

Blended Strategies Portfolio

Notes to Unaudited Financial Statements (continued)

3. Capital Accounts (continued)

Subscriptions (continued)

Units are available for subscription as of the first business day of each month upon written notice of at least three business days prior to the last business day of the preceding month.

Redemption of Units

Units are not subject to any minimum holding period. Members may redeem Units at the Net Asset Value thereof as of each Valuation Day, as defined in the LLC Agreement, upon not less than three business days’ prior written notice to the administrator. A partial redemption request for an amount less than $10,000 will not be accepted, nor will a redemption request be accepted to the extent that it would result in an investor owning less than $25,000. The redemption proceeds will normally be remitted within 15 days after the Valuation Day, without interest for the period from the Valuation Day to the payment date.

Redemption Fees

Class 2 Units are subject to a redemption fee equal to 2% of their Net Asset Value if redeemed within six months from their subscription date and a redemption fee equal to 1% of their Net Asset Value if redeemed more than six and less than twelve months from their subscription date. Class 0 Units are not subject to a redemption fee. Redemption fees are payable to the Manager upon redemption of Units from the proceeds of such redemption. There were no redemption fees paid to the Manager for the six months ended June 30, 2014 and 2013.

4. Fees and Related Party Transactions

Advisory Fees

For the six months ended June 30, 2014 and 2013, each Class of GAIT other than Class M paid the Manager an advisory fee (the “Advisory Fee”) at an aggregate annual rate equal to 1.75% of the Net Asset Value of such Class. The Advisory Fee is payable monthly in arrears calculated as of the last business day of each month and any other date the Manager may permit, in its sole and absolute discretion, as ofwhich any subscription or redemption is effected with respect to Units of such Class during the month.

Sponsor Fees

For the six months ended June 30, 2014 and 2013, each Class of GAIT other than Class M paid the Manager a sponsor fee (the “Sponsor Fee”) at an annual rate of the Net Asset Value specified in the table below. The Sponsor Fee is payable monthly in arrears calculated as of the last business day of each month in the same manner as the Advisory Fee. For the three months ended March 31, 2013, the annual rate listed below for Class 2 comprised a Sponsor Fee of 0.75% and selling agent fee (the “Selling Agent Fee”) of 2%, which was used to compensate selling agents for initial and on-going services to the Fund. Subsequent to March 31, 2013, the Sponsor Fee and the Selling Agent Fee were combined to form the Sponsor Fee listed in the table below.

Class	Annual Rate
Class 0	0.75%
Class 2	2.75%

8

Graham Alternative Investment Fund I LLC

Blended Strategies Portfolio

Notes to Unaudited Financial Statements (continued)

4. Fees and Related Party Transactions (continued)

Incentive Allocation

At the end of each calendar quarter, the Manager of GAIT will receive a special allocation of net profits (the “Incentive Allocation”) in an amount equal to 20% of the New High Net Trading Profits of each Class of GAIT, as defined in the LLC Agreement. The Incentive Allocation is also accrued and allocable on the date of redemption with respect to any Units that are redeemed prior to the end of a calendar quarter. Additionally, any loss carryforward attributable to any class of GAIT shall be proportionately reduced, effective as of the date of any redemption of any Units of such class, by multiplying the loss carryforward by the ratio that the amount of assets redeemed from such class bears to the net assets of such class immediately prior to such redemption. The loss carryforward of a class must be recouped before any subsequent Incentive Allocation can be made to the Manager.

Administrator’s Fee

For the six months ended June 30, 2014 and 2013, GAIT paid SEI a monthly administrator’s fee based on GAIT’s net asset value, calculated as of the last business day of each month. In addition, GAIT reimbursed SEI for reasonable out-of-pocket expenses incurred on behalf of GAIT.

Any portion of any of the above fees, including the Incentive Allocation, may be paid by the Manager to third parties as compensation for selling activities in connection with the Fund.

5. Income Taxes

No provision for income taxes has been made in the accompanying financial statements, as members are individually responsible for reporting income or loss based upon their respective share of the Fund’s revenues and expenses for income tax purposes.

U.S. GAAP provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. U.S. GAAP requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet a more-likely-than-not threshold would be recorded as a tax expense in the current year. The Manager has evaluated the Fund’s tax positions and has concluded that there are no significant tax positions requiring recognition, measurement or disclosure in the financial statements. The Manager is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax expense will change materially in the next twelve months. Tax years which are considered open by the relevant jurisdiction are subject to potential examination.

9

Graham Alternative Investment Fund I LLC

Blended Strategies Portfolio

Notes to Unaudited Financial Statements (continued)

6. Financial Highlights

The following is the per unit operating performance calculation for the three month periods ended June 30, 2014 and 2013:

	Class 0			Class 2
Per unit operating performance
Net asset value per unit, March 31, 2013	$	122.47		$	95.80
Net loss:
Net investment loss		(0.86	)		(1.13	)
Net loss on investments		(0.48	)		(0.39	)
Net loss		(1.34	)		(1.52	)
Net asset value per unit, June 30, 2013	$	121.13		$	94.28
Net asset value per unit, March 31, 2014	$	114.03		$	87.43
Net income:
Net investment loss		(0.76	)		(1.06	)
Net gain on investments		1.73			1.36
Net income		0.97			0.30
Net asset value per unit, June 30, 2014	$	115.00		$	87.73

The following represents ratios to average members’ capital and total return for the three month periods ended June 30, 2014 and 2013:

	Class 0						Class 2
	2014			2013			2014			2013
Total return before Incentive Allocation		0.85	%		(1.09	)%		0.35	%		(1.59	)%
Incentive Allocation		0.00			0.00			0.00			0.00
Total return after Incentive Allocation		0.85	%		(1.09	)%		0.35	%		(1.59	)%
Net investment loss before Incentive Allocation		(0.66	)%		(0.70	)%		(1.21	)%		(1.18	)%
Incentive Allocation		0.00			0.00			0.00			0.00
Net investment loss after Incentive Allocation		(0.66	)%		(0.70	)%		(1.21	)%		(1.18	)%
Total expenses before Incentive Allocation		0.72	%		0.74	%		1.26	%		1.22	%
Incentive Allocation		0.00			0.00			0.00			0.00
Total expenses after Incentive Allocation		0.72	%		0.74	%		1.26	%		1.22	%

10

Graham Alternative Investment Fund I LLC

Blended Strategies Portfolio

Notes to Unaudited Financial Statements (continued)

6. Financial Highlights (continued)

The following is the per unit operating performance calculation for the six month periods ended June 30, 2014 and 2013:

	Class 0			Class 2
Per unit operating performance
Net asset value per unit, December 31, 2012	$	114.88		$	90.29
Net income:
Net investment loss		(1.74	)		(2.28	)
Net gain on investments		7.99			6.27
Net income		6.25			3.99
Net asset value per unit, June 30, 2013	$	121.13		$	94.28
Net asset value per unit, December 31, 2013	$	127.72		$	98.41
Net loss:
Net investment loss		(1.52	)		(2.10	)
Net loss on investments		(11.20	)		(8.58	)
Net loss		(12.72	)		(10.68	)
Net asset value per unit, June 30, 2014	$	115.00		$	87.73

The following represents ratios to average members’ capital and total return for the six month periods ended June 30, 2014 and 2013:

	Class 0						Class 2
	2014			2013			2014			2013
Total return before Incentive Allocation		(9.96	)%		5.44	%		(10.85	)%		4.42	%
Incentive Allocation		0.00			0.00			0.00			0.00
Total return after Incentive Allocation		(9.96	)%		5.44	%		(10.85	)%		4.42	%
Net investment loss before Incentive Allocation		(1.29	)%		(1.46	)%		(2.31	)%		(2.42	)%
Incentive Allocation		0.00			0.00			0.00			0.00
Net investment loss after Incentive Allocation		(1.29	)%		(1.46	)%		(2.31	)%		(2.42	)%
Total expenses before Incentive Allocation		1.40	%		1.56	%		2.41	%		2.52	%
Incentive Allocation		0.00			0.00			0.00			0.00
Total expenses after Incentive Allocation		1.40	%		1.56	%		2.41	%		2.52	%

11

Graham Alternative Investment Fund I LLC

Blended Strategies Portfolio

Notes to Unaudited Financial Statements (continued)

6. Financial Highlights (continued)

Total return is calculated for Class 0 and Class 2 Units taken as a whole. Total return is calculated as the change in total members’ capital adjusted for subscriptions or redemptions during the period. An individual member’s return may vary from these returns based on the timing of capital transactions and the applicability of Advisory Fees, Sponsor Fees, Administrator’s Fees, and the Incentive Allocation. The net investment loss and total expense ratios (including Incentive Allocation) are calculated for Class 0 and Class 2 Units taken as a whole and include net amounts allocated from GAIT. The computation of such ratios is based on the amount of net investment loss, expenses and Incentive Allocation. Net investment loss and total expense ratios are computed based upon the weighted average of members’ capital for Class 0 and Class 2 Units of the Fund for the three and six month periods ended June 30, 2014 and 2013.

7. Subsequent Events

The Fund had subscriptions of approximately $0.2 million and redemptions of approximately $2.1 million through August 14, 2014, the date through which subsequent events were evaluated by management.  These amounts have not been included in the financial statements.

12

Graham Alternative Investment Trading LLC

Statements of Financial Condition

	June 30, 2014 (Unaudited)		December 31, 2013 (Audited)
Assets
Investments in Master Funds, at fair value	$	22,903,052	$	33,759,212
Investment in Graham Cash Assets LLC, at fair value		132,364,459		153,099,740
Receivable from Master Funds		56		2,695
Total assets	$	155,267,567	$	186,861,647
Liabilities and members’ capital
Liabilities:
Accrued redemptions	$	8,718,041	$	5,589,666
Accrued advisory fees		221,952		276,022
Accrued sponsor fees		159,746		187,789
Accrued professional fees		99,457		203,102
Accrued administrator’s fee		17,636		20,714
Payable to Master Funds		2,310		7,249
Total liabilities		9,219,142		6,284,542
Members’ capital:
Class 0 Units (928,893.895 and 1,093,036.786 units issued and outstanding at $115.00 and $127.72  per unit, respectively)		106,825,568		139,603,019
Class 2 Units (437,506.448 and 407,013.551 units issued and outstanding at $87.73 and $98.41  per unit, respectively)		38,383,907		40,053,854
Class M Units (4,671.470 and 4,671.470 units issued and outstanding at $179.59 and $196.99 per unit, respectively)		838,950		920,232
Total members’ capital		146,048,425		180,577,105
Total liabilities and members’ capital	$	155,267,567	$	186,861,647

See accompanying notes.

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Graham Alternative Investment Trading LLC

Condensed Schedules of Investments

	June 30, 2014 (Unaudited)				December 31, 2013 (Audited)
Description	Fair Value		Percentage of Members’ Capital		Fair Value		Percentage of Members’ Capital
Investments in Master Funds, at fair value
Graham Commodity Strategies LLC	$	3,820,521		2.62%	$	11,687,704		6.47%
Graham Global Monetary Policy LLC		1,767,570		1.21%		5,538,724		3.07%
Graham K4D Trading Ltd.		15,821,984		10.83%		16,532,784		9.16%
Graham Macro Directional LLC		1,492,977		1.02%		–		–
Total investments in Master Funds	$	22,903,052		15.68%	$	33,759,212		18.70%

See accompanying notes.

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Graham Alternative Investment Trading LLC

Unaudited Statements of Operations and Incentive Allocation

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Net (loss) gain allocated from investments in Master Funds
Net realized (loss) gain on investments	$	(50,226	)	$	5,978,274		$	(11,029,658	)	$	26,251,922
Net increase (decrease) in unrealized appreciation on investments		2,646,562			(5,250,626	)		(4,550,887	)		(6,111,576	)
Brokerage commissions and fees		(211,828	)		(354,064	)		(463,683	)		(831,625	)
Net (loss) gain allocated from investments in Master Funds		2,384,508			373,584			(16,044,228	)		19,308,721
Net investment loss allocated from investments in Master Funds		(13,729	)		(10,544	)		(34,448	)		(16,501	)
Investment income
Interest income		86,298			109,104			175,370			233,266
Total investment income		86,298			109,104			175,370			233,266
Expenses
Advisory fees		687,422			1,065,854			1,408,195			2,175,746
Sponsor fees		488,104			682,864			983,136			1,372,987
Administrator’s fees		53,552			79,753			107,782			162,594
Professional fees and other		56,100			51,900			102,901			441,174
Total expenses		1,285,178			1,880,371			2,602,014			4,152,501
Net investment loss of the Fund		(1,198,880	)		(1,771,267	)		(2,426,644	)		(3,919,235	)
Net (loss) income		1,171,899			(1,408,227	)		(18,505,320	)		15,372,985
Incentive allocation		–			–			–			–
Net (loss) income available for pro-rata allocation to all members	$	1,171,899		$	(1,408,227	)	$	(18,505,320	)	$	15,372,985

See accompanying notes.

15

Graham Alternative Investment Trading LLC

Unaudited Statements of Changes in Members’ Capital

For the six months ended June 30, 2014 and 2013

	Class 0						Class 2						Class M					Total
	Units			Capital			Units			Capital			Units		Capital			Capital
Members’ capital, December 31, 2012		1,922,696.211		$	220,876,439			483,129.319		$	43,623,249			4,671.470	$	806,295		$	265,305,983
Subscriptions		53,655.992			6,520,000			11,414.547			1,082,435			–		–			7,602,435
Redemptions		(654,544.800	)		(80,628,297	)		(55,643.476	)		(5,296,530	)		–		–			(85,924,827	)
Incentive allocation		–			–			–			–			–		–			–
Net income		–			13,346,186			–			1,971,267			–		55,532			15,372,985
Members’ capital, June 30, 2013		1,321,807.403		$	160,114,328			438,900.390		$	41,380,421			4,671.470	$	861,827		$	202,356,576
	Class 0						Class 2						Class M					Total
	Units			Capital			Units			Capital			Units		Capital			Capital
Members’ capital, December 31, 2013		1,093,036.786		$	139,603,019			407,013.551		$	40,053,854			4,671.470	$	920,232		$	180,577,105
Subscriptions		27,567.625			3,233,079			82,701.099			7,392,005			–		–			10,625,084
Redemptions		(191,710.516	)		(22,020,925	)		(52,208.202	)		(4,627,519	)		–		–			(26,648,444	)
Incentive allocation		–			–			–			–			–		–			–
Net loss		–			(13,989,605	)		–			(4,434,433	)		–		(81,282	)		(18,505,320	)
Members’ capital, June 30, 2014		928,893.895		$	106,825,568			437,506.448		$	38,383,907			4,671.470	$	838,950		$	146,048,425

See accompanying notes.

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Graham Alternative Investment Trading LLC

Unaudited Statements of Cash Flows

	Six Months Ended June 30,
	2014			2013
Cash flows provided by operating activities
Net (loss) income	$	(18,505,320	)	$	15,372,985
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Net loss (income) allocated from investments in Master Funds		16,078,676			(19,292,220	)
Net income allocated from investment in Graham Cash Assets LLC		(175,370	)		(233,266	)
Proceeds from sale of investments in Master Funds		119,195,545			180,787,067
Proceeds from sale of investments in Graham Cash Assets LLC		101,552,403			203,188,288
Investments in Master Funds		(124,420,361	)		(142,317,540	)
Investments in Graham Cash Assets LLC		(80,641,752	)		(140,811,787	)
Changes in assets and liabilities:
Accrued commission reimbursements		–			165,510
Accrued brokerage fees		–			(568,525	)
Accrued advisory fees		(54,070	)		(191,647	)
Accrued sponsor fees		(28,043	)		(47,447	)
Accrued professional fees		(103,645	)		302,676
Accrued administrator’s fee		(3,078	)		21,987
Net cash provided by operating activities		12,894,985			96,376,081
Cash flows used in financing activities
Subscriptions		10,625,084			7,602,435
Redemptions		(23,520,069	)		(103,978,516	)
Net cash used in financing activities		(12,894,985	)		(96,376,081	)
Net change in cash and cash equivalents		–			–
Cash and cash equivalents, beginning of period		–			–
Cash and cash equivalents, end of period	$	–		$	–

See accompanying notes.

17

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements

June 30, 2014

1. Organization and Business

Graham Alternative Investment Trading LLC (“GAIT”) was formed on May 18, 2006, commenced operations on August 1, 2006 and is organized as a Delaware Limited Liability Company. Graham Capital Management, L.P. (the “Managing Member” or “Manager”) is the Managing Member and the sole investment advisor. The Managing Member is registered as a Commodity Pool Operator and Commodity Trading Advisor with the U.S. Commodity Futures Trading Commission and is a member of the National Futures Association. The Managing Member is also registered as a Registered Investment Advisor with the Securities and Exchange Commission. GAIT is registered as a commodity pool with the U.S. Commodity Futures Trading Commission.

The investment objective of GAIT is to achieve long-term capital appreciation through professionally managed trading through its investment in various master trading vehicles (“Master Funds”). As more fully described in Notes 2 and 3, these Master Funds invest in a broad range of derivative instruments such as currency forward and futures contracts; bond, interest rate, and index futures contracts; commodity forward and futures contracts, and options and swaps thereon traded on U.S. and foreign exchanges, as well as over-the-counter.

Graham Alternative Investment Fund I LLC Blended Strategies Portfolio, Graham Alternative Investment Fund II LLC Blended Strategies Portfolio, and Graham Alternative Investment III Ltd. are the primary investors of GAIT.

SEI Global Services, Inc. (“SEI”) is GAIT’s independent administrator and transfer agent. SEI is responsible for certain matters pertaining to the administration of GAIT.

GAIT will terminate on December 31, 2050 or at an earlier date if certain conditions occur as outlined in the Limited Liability Company Agreement (“LLC Agreement”).

Duties of the Managing Member

Subject to the terms and conditions of the LLC Agreement, the Managing Member has complete and exclusive responsibility for managing and administering the affairs of GAIT and for directing the investment and reinvestment of the assets of GAIT.

2. Summary of Significant Accounting Policies

These financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and all amounts are stated in U.S. dollars. GAIT is an investment company and applies specialized accounting guidance as outlined in Financial Accounting Standards Board Accounting Standards Update 2013-08, Financial Services – Investment Companies (Topic 946), Amendments to the Scope, Measurement, and Disclosure Requirements. The Manager has evaluated this guidance and has determined GAIT meets the criteria to be classified as an investment company. The preparation of these financial statements requires the Manager to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

18

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

2. Summary of Significant Accounting Policies (continued)

Investments in Master Funds

GAIT invests in various Master Funds which are managed by the Managing Member. These investments are valued in the accompanying statements of financial condition at fair value in accordance with U.S. GAAP based upon GAIT’s proportionate share of the Master Funds’ reported net asset values. Gains and losses are allocated monthly by each Master Fund to GAIT based upon GAIT’s proportionate share of the net asset value of each Master Fund and are included in the statements of operations and incentive allocation.

Fair Value

The fair value of GAIT’s assets and liabilities, which qualify as financial instruments under U.S. GAAP, approximates the carrying amounts presented in the statements of financial condition. Changes in these carrying amounts are included in the statements of operations and incentive allocation.

GAIT follows U.S. GAAP for fair value measurements, which defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurements. GAIT reports the fair value of its investment related assets and liabilities in accordance with the hierarchy established under U.S. GAAP. U.S. GAAP uses a three-level hierarchy for fair value measurement based on the activeness of the market and the transparency and independence of inputs used in the valuation of an asset or liability as of the measurement date.

The fair value hierarchy categorizes asset and liability positions into one of three levels, as summarized below, based on the inputs and assumptions used in deriving fair value.

· Level 1 inputs are unadjusted closing or settlement prices for such assets or liabilities as published by the primary exchange upon which they are traded.

· Level 2 inputs include quoted prices for similar assets and liabilities obtained from independent brokers and/or market makers in each security. With respect to GAIT’s investments in the other funds managed by the Manager, Level 2 inputs include the net asset value of the underlying fund in which it holds an investment.

· Level 3 inputs are those which are considered unobservable and are significant in arriving at fair value.

In accordance with this hierarchy, GAIT’s investments in Master Funds and Graham Cash Assets LLC (“Cash Assets”) have been classified as Level 2. These investments are discussed in Notes 3 and 4. There were no Level 3 assets or liabilities held at any point during the six months ended June 30, 2014 or the year ended December 31, 2013 by GAIT, the Master Funds, or Cash Assets, and there were no transfers between levels during those periods. Transfers between levels, if any, are recognized on the actual date of the event or change in circumstances that cause the transfer.

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Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

2. Summary of Significant Accounting Policies (continued)

Derivative Instruments

In the normal course of business, the Master Funds utilize derivative financial instruments in connection with their trading activities. Derivative instruments derive their value from underlying assets, indices, reference rates or a combination of these factors. Investments in derivative financial instruments are subject to additional risks that can result in a loss of all or part of an investment. The Master Funds’ derivative financial instruments are classified by the following primary underlying risks: interest rate, foreign currency exchange rate, commodity price, and equity price risks. These risks can be in excess of the amounts recognized in the statements of financial condition. In addition, the Master Funds are also subject to additional counterparty risk should their counterparties fail to meet the terms of their contracts. Management of counterparty risk involves a number of considerations, such as the financial profile of the counterparty, specific terms and duration of the contractual agreement, and the value of collateral held, if any. The Master Funds have established initial credit approval, credit limits, and collateral requirements and may reduce their exposure to any counterparties they deem necessary. Trading in non-U.S. dollar denominated derivative instruments may subject the value of, and gains and losses associated with, such contracts to additional risks related to adverse changes in the applicable exchange rates.

Unrealized gains and losses from derivative financial instruments are recorded based on changes in their fair value. Realized gains and losses are recorded when the positions are closed. All unrealized and realized gains and losses related to derivative financial instruments are included in net gain (loss) on investments in the Master Funds’ statements of operations.

Futures Contracts

The Master Funds use futures contracts in an attempt to take advantage of changes in the value of equities, commodities, interest rates, bonds and foreign currencies. Futures contracts are valued based upon the closing price as of the valuation date established by the primary exchange upon which they are traded.

A futures contract represents a commitment for the future purchase or sale of an asset or cash settlement based on the value of an asset on a specified date. The purchase and sale of futures contracts are executed on an exchange which requires margin deposits with a Futures Commission Merchant (“FCM”). Subsequent payments are made or received by the Master Funds each day, depending on the daily fluctuations in the value of the contract. These changes in valuation are recorded for financial statement purposes as unrealized gains or losses by the Master Funds. Relative to over-the-counter derivative financial instruments, futures contracts provide reduced counterparty risk to the Master Funds since futures are exchange-traded and the exchanges’ clearing house guarantees the futures against default. However some non-U.S. exchanges are “principals’ markets” in which no common clearing facility exists and the Master Funds may look only to the clearing broker for performance of the contract. The U.S. Commodity Exchange Act requires an FCM to segregate all funds received from such FCM’s customers in respect of regulated futures transactions. If the FCM were not to do so to the full extent required by law, the assets of the Master Funds might not be fully protected in the event of the bankruptcy or insolvency of the FCM. In that case, the Master Funds would be limited to recovering only a pro rata share of all available funds segregated on behalf of the FCM’s combined customer accounts, even though certain property specifically traceable to the Master Funds was held by the FCM. In addition, in the event of bankruptcy or insolvency of an exchange or an affiliated clearing house, the Master Funds might experience a loss of funds deposited through its FCM as margin with such exchange or affiliated clearing house, the loss of unrealized profits on its open positions, and the loss of funds owed to it as realized profits on closed positions.

20

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

2. Summary of Significant Accounting Policies (continued)

Derivative Instruments (continued)

Forward Contracts

The Master Funds enter into foreign currency forward contracts in an attempt to take advantage of changes in exchange rates. Forward currency transactions are contracts or agreements for delivery of specific currencies or the cash equivalent value at a specified future date and an agreed upon price. Forward contracts are not guaranteed by an exchange or clearing house and therefore the risks include the inability of counterparties to meet their obligations under the terms of the contracts as well as the risks associated with movements in fair value.

Exchange traded forward contracts are valued based upon the settlement prices as of the valuation date, established by the primary exchange upon which they are traded. All other forward contracts are valued based upon a forward curve constructed using independently quoted forward points. Changes in fair value of each forward contract are recognized as unrealized gains or losses.

Swap Contracts

The Master Funds may enter into various swap contracts in an attempt to take advantage of changes in interest rates and asset values. Exchange traded interest rate swap contracts are executed on an exchange which requires margin deposits with a Central Clearing Counterparty (“CCP”). Subsequent payments are made or received by the Master Funds each day, depending on the daily fluctuations in the value of the contract. These changes in valuation are recorded for financial statement purposes as unrealized gains or losses by the Master Funds. Relative to over-the-counter interest rate swap contracts, exchange traded interest rate swap contracts provide reduced counterparty risk since they are exchange-traded and the exchange’s clearinghouse guarantees against default. The Commodity Exchange Act requires a CCP to segregate all funds received from such CCP’s customers in respect of exchange traded interest rate swaps. If the CCP were not to do so to the full extent required by law, the assets of the Master Funds might not be fully protected in the event of the bankruptcy or insolvency of the CCP. In that case, the Master Funds would be limited to recovering only a pro rata share of all available funds segregated on behalf of the CCP’s combined customer accounts, even though certain property specifically traceable to the Master Funds is held by the CCP. In addition, in the event of bankruptcy or insolvency of an exchange or an affiliated clearing house, the Master Funds could experience a loss of funds deposited through its CCP as margin with such exchange or affiliated clearing house, the loss of unrealized profits on its open positions, and the loss of funds owed to it as realized profits on closed positions. All funds deposited with both U.S. and non-U.S. CCPs are included in due from brokers on the consolidated statements of financial condition. Over the counter swap contracts are not guaranteed by an exchange or an affiliated clearing house or regulated by any U.S. or foreign government authorities. Failure of a counterparty to meet its obligation under the terms of the swap contract could result in the loss of any unrealized gains on open positions. It may not be possible to dispose of or close out a swap position without the consent of the counterparty, and the Master Funds may not be able to enter into an offsetting contract in order to cover its risk. Over the counter swaps are subject to the International Swap and Derivative Association (“ISDA”) Master Agreements which generally require among other things, that the Master Funds maintain a predetermined level of net assets, and provide limits with respect to any decline in the Master Funds’ net asset value over 1-month, 3-month and 12-month periods. If the Master Funds were to violate such provisions, the counterparty to the swaps could demand liquidation of outstanding swap positions.

An interest rate swap contract is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified rates for a specified notional amount of the underlying assets. The payment flows are usually netted against each other, with the difference being paid by one party to another.

21

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

2. Summary of Significant Accounting Policies (continued)

Derivative Instruments (continued)

Swaps (continued)

A total return swap contract is an agreement that obligates two parties to exchange cash flows calculated by reference to changes in specified prices for a specified notional amount of the underlying assets. The payment flows are usually netted against each other, with the difference being paid by one party to another.

Exchange traded swaps are valued based upon the closing prices established by the primary exchange upon which they are traded. Total return swaps are valued based upon the exchange published settle price of the underlying reference instrument. Changes in fair value of each swap are recognized as unrealized gains or losses. The Master Funds record realized gains or losses when a swap contract is terminated.

Options

The Master Funds may buy and sell covered and uncovered exchange traded and over-the-counter options on futures, foreign currencies, commodities, interest rates and equities to take advantage of the price movements of the financial instrument underlying the option or to hedge positions in the underlying assets. Option contracts give one party the right, but not the obligation, to buy or sell within a limited time or on a specified date, a financial instrument, commodity or currency at a contracted price. Options may also be settled in cash, based on differentials between specified indices or prices.

The Master Funds are exposed to counterparty risk to the extent that a seller of an over-the-counter option does not meet its obligations under the terms of the option contract. The maximum risk of loss to the Master Funds is the unrealized gains of the contracts and the premiums paid to purchase its open option contracts. Relative to over-the-counter options, exchange traded options provide reduced counterparty risk to the Master Funds since the exchanges’ clearinghouse guarantees the option against default.

Exchange traded options are valued based upon the settlement prices published as of the valuation date by the principal exchange upon which they are traded. In the absence of an exchange published settlement price, the option will be valued using the last reported sales price reported on the exchange for the valuation date. Over-the-counter options and exchange traded options with no reported sales price on the valuation date will generally be valued at the average of last reported bid and offer quotes from independent brokers or from the exchange, respectively.

New York Mercantile Exchange Corporate Membership

Graham Commodity Strategies LLC is a member of the New York Mercantile Exchange (“NYMEX”). As a result of its membership, Graham Commodity Strategies LLC owns two NYMEX seats and 30,000 shares of the CME Group. Graham Commodity Strategy LLC’s policy is to value the NYMEX memberships and the shares of the CME Group at fair value. As of June 30, 2014 and December 31, 2013, the two NYMEX memberships were valued at $430,000 and $440,500, respectively, and the 30,000 shares of CME Group were valued at $2,128,500 and $2,353,800, respectively, both of which are contained within Exchange membership, at fair value on Graham Commodity Strategies LLC’s statements of financial condition.

22

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

2. Summary of Significant Accounting Policies (continued)

Chicago Board of Trade Membership

Graham K4D Trading Ltd. is a member of the Chicago Board of Trade (“CBOT”) under Rule 106.S and owns two B-1/Full seats and one B-2/Associate seat. Graham K4D Trading Ltd.’s policy is to value the CBOT memberships at fair value. As of June 30, 2014 and December 31, 2013, the B-1/Full memberships were valued at $548,000 and $547,000, respectively, and the B-2/Associate memberships were valued at $83,500 and $87,250, respectively, both of which are included in Exchange membership, at fair value on the statements of financial condition. Additionally, Graham K4D Trading Ltd. owns a Chicago Mercantile Exchange seat valued at $262,500 and $220,000 at June 30, 2014 and December 31, 2013, respectively, which is also included in Exchange membership, at fair value on the statements of financial condition of Graham K4D Trading Ltd.

Indemnifications

In the normal course of business, the Master Funds, Cash Assets, and GAIT enter into contracts that contain a variety of indemnifications. Such contracts may include those by Cash Assets and the Master Funds with their brokers and trading counterparties. GAIT’s maximum exposure under these arrangements is unknown; however, GAIT has not had prior claims or losses with respect to such indemnifications and considers the risk of loss to be remote.

23

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds

As of June 30, 2014 and December 31, 2013, GAIT invested in various Master Funds, all of which were managed by the Manager. GAIT’s investments in these Master Funds, as well as the investment objectives of each Master Fund, are summarized below. Master Funds in which GAIT invested 5% or more of its members’ capital are individually identified, while smaller investments are aggregated under the caption “Other Global Macro Funds.” The number of Master Funds included for the period in each aggregated category is disclosed parenthetically next to each name. All of the Master Funds and GAIT are related parties. The Master Funds do not charge management or incentive fees and all offer monthly subscriptions and redemptions.

June 30, 2014
Investment – Objective	Percent of Members’ Capital			Fair Value		Net Income (loss) (three months then ended)			Net Loss (six months then ended)
Systematic Macro Funds
Graham K4D Trading Ltd.		10.83	%	$	15,821,984	$	6,938,902		$	(2,217,635	)
Global Macro Funds
Other Global Macro Funds (3)		4.85	%		7,081,068		(4,568,123	)		(13,861,041	)
		15.68	%	$	22,903,052	$	2,370,779		$	(16,078,676	)
December 31, 2013
Investment – Objective	Percent of Members’ Capital			Fair Value		Net Income (three months ended June 30, 2013)			Net Income (six months ended June 30, 2013)
Systematic Macro Funds
Graham K4D Trading Ltd.		9.16	%	$	16,532,784	$	(7,695,281	)	$	5,638,549
Global Macro Funds
Graham Commodity Strategies LLC		6.47	%		11,687,704		6,494,898			8,987,973
Other Global Macro Funds (1)		3.07	%		5,538,724		1,563,423			4,665,698
		18.70	%	$	33,759,212	$	363,040		$	19,292,220

24

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following table summarizes the financial position of each Master Fund as of June 30, 2014:

	Graham Commodity Strategies LLC (Delaware)			Graham Global Monetary Policy LLC (Delaware)			Graham K4D Trading Ltd. (BVI)			Graham Macro Directional LLC (Delaware)
Assets:
Due from brokers	$	45,259,243		$	64,019,828		$	112,686,906		$	32,809,211
Derivative financial instruments, at fair value		22,846,698			700,126			34,232,795			14,918,731
Exchange membership, at fair value		2,558,500			-			894,000			-
Dividends receivable		9,869			-			-			-
Other assets		-			119			-			-
Total assets		70,674,310			64,720,073			147,813,701			47,727,942
Liabilities:
Derivative financial instruments, at fair value		1,773,557			1,235,247			-			363,000
Due to brokers		403,349			-			-			-
Total liabilities		2,176,906			1,235,247			-			363,000
Net assets	$	68,497,404		$	63,484,826		$	147,813,701		$	47,364,942
Percentage of Master Fund held by GAIT		5.58	%		2.78	%		10.70	%		3.15	%

25

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following schedules display the condensed schedules of investments for the Master Funds as of June 30, 2014.

Description	Number of Contracts		Fair Value			Percentage of Members’ Capital of Master Fund
Graham Commodity Strategies LLC
Derivative financial instruments
Long contracts
Futures
Commodity			$	1,202,902			1.76	%
Currency				(92,701	)		(0.14	)%
Foreign bond				132,560			0.19	%
Foreign index				(20,010	)		(0.03	)%
Interest rate				3,199,697			4.67	%
U.S. bond				(98,586	)		(0.14	)%
U.S. index				(287,500	)		(0.42	)%
Total futures				4,036,362			5.89	%
Swaps
Commodity				(252,192	)		(0.37	)%
Interest rate				767,070			1.12	%
Total swaps				514,878			0.75	%
Forwards
Foreign currency				(703,973	)		(1.03	)%
Total forwards				(703,973	)		(1.03	)%
Options (cost $66,397,275)
Commodity futures				11,603,214			16.93	%
Euro / British pound 07/02/14, $0.78 Call		1		172,903			0.25	%
Euro / British pound 07/31/14 - 09/11/14, $0.78 - $0.81 Put		5		5,390,065			7.87	%
U.S. dollar / Chinese yuan 12/02/14 - 04/15/15, $6.05 - $6.20 Put		15		6,360,576			9.29	%
Other currency				9,157,428			13.37	%
Euro Mid Curve 1-Year Future December 2014, $99.25 Call		21,000		3,675,000			5.37	%
Other Euro Mid Curve 1-Year Future December 2014, $99.63 Call		21,000		131,250			0.19	%
Other interest rate futures				2,839,741			4.15	%
U.S. index futures				313,750			0.46	%
Total options				39,643,927			57.88	%

26

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following schedules display the condensed schedules of investments for the Master Funds as June 30, 2014.

Description	Fair Value			Percentage of Members’ Capital of Master Fund
Graham Commodity Strategies LLC (continued)
Derivative financial instruments (continued)
Short contracts
Futures
Commodity	$	217,705			0.32	%
Foreign bond		(8,086	)		(0.01	)%
Foreign index		(123	)		0.00	%
Interest rate		(1,165,670	)		(1.70	)%
U.S. bond		(1,249,273	)		(1.83	)%
U.S. index		22,325			0.03	%
Total futures		(2,183,122	)		(3.19	)%
Swaps
Commodity		112,638			0.16	%
Interest rate		(2,847,093	)		(4.15	)%
Total swaps		(2,734,455	)		(3.99	)%
Forwards
Foreign currency		2,646,191			3.86	%
Total forwards		2,646,191			3.86	%
Options (proceeds $29,006,891)
Commodity Futures		(10,402,298	)		(15.18	)%
Currency		(7,677,095	)		(11.21	)%
Interest rate futures		(2,067,274	)		(3.02	)%
Total options		(20,146,667	)		(29.41	)%
Total derivative financial instruments	$	21,073,141			30.76	%

27

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following schedules display the condensed schedules of investments for the Master Funds as of June 30, 2014.

Description	Number of Contracts		Fair Value			Percentage of Members’ Capital of Master Fund
Graham Global Monetary Policy LLC
Derivative financial instruments
Long contracts
Futures
Commodity			$	73,523			0.12	%
Foreign bond				890,312			1.40	%
Foreign index				(9,347	)		(0.01	)%
90-day Eurodollar March 2015 - March 2018		12,000		4,816,575			7.58	%
Other interest rate				368,496			0.58	%
U.S. bond				105,937			0.17	%
U.S. index				136,165			0.21	%
Total futures				6,381,661			10.05	%
Forwards
Foreign currency				1,440,277			2.27	%
Total forwards				1,440,277			2.27	%
Options (cost $7,763,553)
Foreign currency				1,279,939			2.02	%
Interest rate futures				234,375			0.37	%
Total options				1,514,314			2.39	%
Short contracts
Futures
Commodity				433,863			0.68	%
Foreign bond				(108,026	)		(0.17	)%
Foreign index				451,551			0.71	%
90-day Eurodollar December 2015		16,500		(3,738,625	)		(5.89	)%
Other 90-day Eurodollar June 2015 - December 2016		18,000		(2,772,050	)		(4.37	)%
Other interest rate				22,377			0.04	%
U.S. bond				(205,000	)		(0.32	)%
Total futures				(5,915,910	)		(9.32	)%

28

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following schedules display the condensed schedules of investments for the Master Funds as of June 30, 2014.

Description	Fair Value			Percentage of Members’ Capital of Master Fund
Graham Global Monetary Policy LLC
Derivative financial instruments
Short contracts
Forwards
Foreign currency	$	(2,497,873	)		(3.93	)%
Total forwards		(2,497,873	)		(3.93	)%
Options (proceeds $4,637,240)
Foreign currency		(1,457,590	)		(2.30	)%
Total options		(1,457,590	)		(2.30	)%
Total derivative financial instruments	$	(535,121	)		(0.84	)%

29

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following schedules display the condensed schedules of investments for the Master Funds as of June 30, 2014.

Description	Fair Value			Percentage of Net Assets of Master Fund
Graham K4D Trading Ltd.
Derivative financial instruments
Long contracts
Futures
Commodity	$	4,807,122			3.25	%
Currency		1,709,431			1.16	%
Foreign bond		12,371,095			8.37	%
Foreign index		(672,040	)		(0.45	)%
Interest rate		756,005			0.51	%
U.S. bond		2,185,603			1.48	%
U.S. index		3,743,520			2.53	%
Total futures		24,900,736			16.85	%
Forwards
Foreign currency		12,464,596			8.43	%
Total forwards		12,464,596			8.43	%
Short contracts
Futures
Commodity		(1,582,503	)		(1.07	)%
Currency		507,784			0.34	%
Foreign bond		(399,833	)		(0.27	)%
Foreign index		67,759			0.05	%
Interest rate		981,635			0.66	%
U.S. bond		(1,065,051	)		(0.72	)%
U.S. index		(14,742	)		(0.01	)%
Total futures		(1,504,951	)		(1.02	)%
Forwards
Foreign currency		(1,627,586	)		(1.10	)%
Total forwards		(1,627,586	)		(1.10	)%
Total derivative financial instruments	$	34,232,795			23.16	%

30

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following schedules display the condensed schedules of investments for the Master Funds as of June 30, 2014.

Description	Number of Contracts		Fair Value			Percentage of Members’ Capital of Master Fund
Graham Macro Directional LLC
Derivative financial instruments
Long contracts
Futures
Australian 3-Year Bond September 2014		10,000	$	3,114,323			6.58	%
Other foreign bond				260,193			0.55	%
U.S. 10-Year Note September 2014		13,500		8,971,078			18.93	%
U.S. Long Bond September 2014		2,500		2,830,125			5.98	%
Total futures				15,175,719			32.04	%
Forwards
Foreign currency				426,928			0.90	%
Total forwards				426,928			0.90	%
Options (cost $237,250)
Commodity futures				4,875			0.01	%
U.S. bond futures				62,500			0.13	%
Total options				67,375			0.14	%
Short contracts
Futures
Interest rate				(275,000	)		(0.58	)%
Foreign bond				(49,363	)		(0.10	)%
Total futures				(324,363	)		(0.68	)%
Forwards
Foreign currency				(789,928	)		(1.67	)%
Total forwards				(789,928	)		(1.67	)%
Total derivative financial instruments			$	14,555,731			30.73	%

31

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following table shows the fair value classification of each investment type by Master Fund as of June 30, 2014:

	Graham Commodity Strategies LLC			Graham Global Monetary Policy LLC			Graham K4D Trading Ltd.			Graham Macro Directional LLC
Assets
Level 1:
U.S. bond futures	$	313		$	105,937		$	2,385,135		$	11,801,203
U.S. bond futures options		-			-			-			62,500
Foreign bond futures		159,142			890,312			12,371,095			3,374,516
Foreign index futures		95,033			591,147			2,012,391			-
Foreign index futures options		-			-			-			-
U.S. index futures		22,325			136,165			4,303,092			-
U.S. index futures options		313,750			-			-			-
Commodity futures		6,112,217			623,546			16,484,143			-
Commodity futures options		11,988,213			-			-			4,875
Commodity swaps		337,330			-			-			-
Interest rate futures		3,279,199			5,538,969			1,767,816			-
Interest rate futures options		6,645,991			234,375			-			-
Currency futures		-			-			3,398,600			-
Total Level 1		28,953,513			8,120,451			42,722,272			15,243,094
Level 2:
Foreign currency forwards		5,408,132			2,383,003			12,940,117			426,928
Foreign currency options		21,080,972			1,279,939			-			-
Interest rate swaps		767,070			-			-			-
Total Level 2		27,256,174			3,662,942			12,940,117			426,928
Total investment related assets	$	56,209,687		$	11,783,393		$	55,662,389		$	15,670,022
Liabilities
Level 1:
U.S. bond futures	$	(1,348,172	)	$	(205,000	)	$	(1,264,583	)	$	-
Foreign bond futures		(34,668	)		(108,026	)		(399,833	)		(49,363	)
Foreign index futures		(115,166	)		(148,943	)		(2,616,672	)		-
U.S. index futures		(287,500	)		-			(574,314	)		-
U.S. index futures options		-			-			-			-
Commodity futures		(4,691,610	)		(116,160	)		(13,259,524	)		-
Commodity futures options		(10,787,297	)		-			-			-
Commodity swaps		(476,884	)		-			-			-
Interest rate futures		(1,245,172	)		(6,842,196	)		(30,176	)		(275,000	)
Interest rate futures options		(2,067,274	)		-			-			-
Currency futures		(92,701	)		-			(1,181,385	)		-
Total Level 1		(21,146,444	)		(7,420,325	)		(19,326,487	)		(324,363	)
Level 2:
Foreign currency forwards		(3,465,914	)		(3,440,599	)		(2,103,107	)		(789,928	)
Foreign currency options		(7,677,095	)		(1,457,590	)		-			-
Interest rate swaps		(2,847,093	)		-			-			-
Total Level 2		(13,990,102	)		(4,898,189	)		(2,103,107	)		(789,928	)
Total investment related liabilities	$	(35,136,546	)	$	(12,318,514	)	$	(21,429,594	)	$	(1,114,291	)

32

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following table displays the gross volume of derivative activities based on their notional amounts and number of contracts and fair value of derivative contracts held by the Master Funds at June 30, 2014 categorized by primary underlying risk and is representative of the derivative instruments held by the Master Funds throughout the period. Derivatives denominated in foreign currencies have been converted to U.S. dollars. Derivative asset and liability balances are presented on a gross basis, prior to the application of counterparty netting. The Master Funds trade derivative instruments on a leveraged basis. Due to the low margin deposits normally required for trading these derivative financial instruments, the gross notional exposure as displayed in the tables below may exceed the net asset value of the Master Funds by a significant amount. As a result, a relatively small price movement in an underlying derivative financial instrument may result in immediate and substantial effect on the net income and net asset value of the Master Funds and GAIT.

	Graham Commodity Strategies LLC
	Long exposure				Short exposure
	Notional amounts		Number of contracts		Notional amounts			Number of contracts			Derivative Assets		Derivative Liabilities
Commodity price
Futures	$	197,598,985		3,011	$	(157,139,915	)		(2,423	)	$	6,112,217	$	(4,691,610	)
Options(a)		164,355,845		10,675		(122,669,795	)		(8,760	)		11,988,213		(10,787,297	)
Swaps		22,995,568		2,144		(12,014,443	)		(2,226	)		337,330		(476,884	)
		384,950,398		15,830		(291,824,153	)		(13,409	)		18,437,760		(15,955,791	)
Equity price
Futures		85,171,633		2,110		(110,215,192	)		(1,126	)		117,358		(402,666	)
Options(a)		-		-		(19,705,606	)		(3,000	)		313,750		-
		85,171,633		2,110		(129,920,798	)		(4,126	)		431,108		(402,666	)
Foreign currency exchange rate
Forwards		435,801,390		N/A		(353,488,361	)		N/A			5,408,132		(3,465,914	)
Futures		9,497,509		119		-			-			-		(92,701	)
Options(a)		1,073,767,000		57		(1,632,972,000	)		(54	)		21,080,972		(7,677,095	)
		1,519,065,899		176		(1,986,460,361	)		(54	)		26,489,104		(11,235,710	)
Interest rate
Futures		4,727,274,877		19,580		(3,177,250,491	)		(14,588	)		3,438,654		(2,628,012	)
Options(a)		1,556,616,282		67,625		(1,142,631,049	)		(73,000	)		6,645,991		(2,067,274	)
Swaps		478,698,158		2		(449,316,307	)		(3	)		767,070		(2,847,093	)
		6,762,589,317		87,207		(4,769,197,847	)		(87,591	)		10,851,715		(7,542,379	)
Total	$	8,751,777,247		105,323	$	(7,177,403,159	)		(105,180	)	$	56,209,687	$	(35,136,546	)
Aggregate fair value of derivative instruments subject to credit-risk related contingent features (as described in Note 2).													$	(2,080,023	)

(a) Notional amounts for options are based on the delta-adjusted positions.

33

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following table displays the gross volume of derivative activities based on their notional amounts and number of contracts and fair value of derivative contracts held by the Master Funds at June 30, 2014 categorized by primary underlying risk and is representative of the derivative instruments held by the Master Funds throughout the period. Derivatives denominated in foreign currencies have been converted to U.S. dollars. Derivative asset and liability balances are presented on a gross basis, prior to the application of counterparty netting. The Master Funds trade derivative instruments on a leveraged basis. Due to the low margin deposits normally required for trading these derivative financial instruments, the gross notional exposure as displayed in the tables below may exceed the net asset value of the Master Funds by a significant amount. As a result, a relatively small price movement in an underlying derivative financial instrument may result in immediate and substantial effect on the net income and net asset value of the Master Funds and GAIT.

	Graham Global Monetary Policy LLC
	Long exposure				Short exposure
	Notional amounts		Number of contracts		Notional amounts			Number of contracts			Derivative Assets		Derivative Liabilities
Commodity price
Futures	$	45,089,135		426	$	(7,522,125	)		(130	)	$	623,546	$	(116,160	)
		45,089,135		426		(7,522,125	)		(130	)		623,546		(116,160	)
Equity price
Futures		27,734,778		231		(75,234,155	)		(1,005	)		727,312		(148,943	)
		27,734,778		231		(75,234,155	)		(1,005	)		727,312		(148,943	)
Foreign currency exchange rate
Forwards		446,619,900		N/A		(173,841,319	)		N/A			2,383,003		(3,440,599	)
Options(a)		289,673,150		21		(87,908,900	)		(15	)		1,279,939		(1,457,590	)
		736,293,050		21		(261,750,219	)		(15	)		3,662,942		(4,898,189	)
Interest rate
Futures		5,386,662,834		23,160		(12,219,862,509	)		(44,710	)		6,535,218		(7,155,222	)
Options(a)		-		-		(258,433,874	)		(7,500	)		234,375		-
		5,386,662,834		23,160		(12,478,296,383	)		(52,210	)		6,769,593		(7,155,222	)
Total	$	6,195,779,797		23,838	$	(12,822,802,882	)		(53,360	)	$	11,783,393	$	(12,318,514	)

(a) Notional amounts for options are based on the delta-adjusted positions.

34

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following table displays the gross volume of derivative activities based on their notional amounts and number of contracts and fair value of derivative contracts held by the Master Funds at June 30, 2014 categorized by primary underlying risk and is representative of the derivative instruments held by the Master Funds throughout the period. Derivatives denominated in foreign currencies have been converted to U.S. dollars. Derivative asset and liability balances are presented on a gross basis, prior to the application of counterparty netting. The Master Funds trade derivative instruments on a leveraged basis. Due to the low margin deposits normally required for trading these derivative financial instruments, the gross notional exposure as displayed in the tables below may exceed the net asset value of the Master Funds by a significant amount. As a result, a relatively small price movement in an underlying derivative financial instrument may result in immediate and substantial effect on the net income and net asset value of the Master Funds and GAIT.

	Graham K4D Trading Ltd.
	Long exposure				Short exposure
	Notional amounts		Number of contracts		Notional amounts			Number of contracts			Derivative Assets		Derivative Liabilities
Commodity price
Futures	$	731,628,735		9,238	$	(337,811,479	)		(7,273	)	$	16,484,143	$	(13,259,524	)
		731,628,735		9,238		(337,811,479	)		(7,273	)		16,484,143		(13,259,524	)
Equity price
Futures		1,220,319,016		12,136		(40,351,775	)		(534	)		6,315,483		(3,190,986	)
		1,220,319,016		12,136		(40,351,775	)		(534	)		6,315,483		(3,190,986	)
Foreign currency exchange rate
Forwards		1,307,237,498		N/A		(277,478,007	)		N/A			12,940,117		(2,103,107	)
Futures		122,517,933		1,104		(211,242,434	)		(2,316	)		3,398,600		(1,181,385	)
		1,429,755,431		1,104		(488,720,441	)		(2,316	)		16,338,717		(3,284,492	)
Interest rate
Futures		6,138,643,264		29,439		(1,479,072,400	)		(8,072	)		16,524,046		(1,694,592	)
		6,138,643,264		29,439		(1,479,072,400	)		(8,072	)		16,524,046		(1,694,592	)
Total	$	9,520,346,446		51,917	$	(2,345,956,095	)		(18,195	)	$	55,662,389	$	(21,429,594	)

35

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following table displays the gross volume of derivative activities based on their notional amounts and number of contracts and fair value of derivative contracts held by the Master Funds at June 30, 2014 categorized by primary underlying risk and is representative of the derivative instruments held by the Master Funds throughout the period. Derivatives denominated in foreign currencies have been converted to U.S. dollars. Derivative asset and liability balances are presented on a gross basis, prior to the application of counterparty netting. The Master Funds trade derivative instruments on a leveraged basis. Due to the low margin deposits normally required for trading these derivative financial instruments, the gross notional exposure as displayed in the tables below may exceed the net asset value of the Master Funds by a significant amount. As a result, a relatively small price movement in an underlying derivative financial instrument may result in immediate and substantial effect on the net income and net asset value of the Master Funds and GAIT.

	Graham Macro Directional LLC
	Long exposure				Short exposure
	Notional amounts		Number of contracts		Notional amounts			Number of contracts			Derivative Assets		Derivative Liabilities
Commodity price
Options(a)	$	63,546		60	$	-			-		$	4,875	$	-
		63,546		60		-			-			4,875		-
Foreign currency exchange rate
Forwards		26,241,928		N/A		(26,241,928	)		N/A			426,928		(789,928	)
		26,241,928		N/A		(26,241,928	)		N/A			426,928		(789,928	)
Interest rate
Futures		3,155,385,421		26,450		(567,221,812	)		(2,050	)		15,175,719		(324,363	)
Options(a)		-		-		(20,321,654	)		(2,000	)		62,500		-
		3,155,385,421		26,450		(587,543,466	)		(4,050	)		15,238,219		(324,363	)
Total	$	3,181,690,895		26,510	$	(613,785,394	)		(4,050	)	$	15,670,022	$	(1,114,291	)

(a) Notional amounts for options are based on the delta-adjusted positions.

36

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

When multiple derivative contracts are held with the same counterparty, the Master Funds will net the contracts in an asset position with the contracts in a liability position when covered by a master netting agreement or similar arrangements, for presentation in the statements of financial condition. The table below displays the amounts at June 30, 2014 by which the fair values of both derivative assets and derivative liabilities were reduced within the Master Funds’ statements of financial condition as a result of this netting. Gross amounts below correspond to the total derivative asset and derivative liability balances categorized by primary underlying risk and product type in the preceding tables. Collateral pledged (received) for derivative assets and liabilities represent the cash amounts which are included in due from brokers on the statements of financial condition.  Actual collateral pledged or received by the Master Funds may exceed these amounts.

Description	Gross Amount			Gross Amount Offset in the Statements of Financial Condition			Net Amount Presented in the Statements of Financial Condition			Collateral (Received) / Pledged		Net Amount
Graham Commodity Strategies LLC1
Derivative assets	$	56,209,687		$	(33,362,989	)	$	22,846,698		$	-	$	22,846,698
Derivative liabilities		(35,136,546	)		33,362,989			(1,773,557	)		1,773,557		-
Graham Global Monetary Policy LLC2
Derivative assets		11,783,393			(11,083,267	)		700,126			-		700,126
Derivative liabilities		(12,318,514	)		11,083,267			(1,235,247	)		1,235,247		-
Graham K4D Trading Ltd.3
Derivative assets		55,662,389			(21,429,594	)		34,232,795			-		34,232,795
Derivative liabilities		(21,429,594	)		21,429,594			-			-		-
Graham Macro Directional LLC 4
Derivative assets		15,670,022			(751,291	)		14,918,731			-		14,918,731
Derivative liabilities		(1,114,291	)		751,291			(363,000	)		363,000		-

¹ Net derivative asset and liability amounts presented in the statement of financial condition are held with three counterparties. The Master Fund has pledged offsetting collateral to one of these counterparties that is eligible to offset the derivative liability amount as of June 30, 2014. At June 30, 2014 additional collateral pledged (received) in the amounts of $43,485,686 and $(403,349) were posted in support of derivative positions and are included in due from (to) brokers on the statement of financial condition.

² Net derivative asset and liability amounts presented in the statement of financial condition are held with two counterparties. The Master Fund has pledged offsetting collateral to one of these counterparties that is eligible to offset the derivative liability amount as of June 30, 2014. At June 30, 2014 additional collateral pledged in the amount of $62,784,581 was posted in support of derivative positions and is included in due from brokers on the statement of financial condition.

³ Net derivative asset amounts presented in the statement of financial condition are held with two counterparties. The Master Fund did not receive collateral from these counterparties that may have been used to offset these derivative amounts as of June 30, 2014. At June 30, 2014 additional collateral pledged in the amount of $112,686,906 was posted in support of derivative positions and is included in due from brokers on the statement of financial condition.

⁴ Net derivative asset and liability amounts presented in the statement of financial condition are held with two counterparties. The Master Fund has pledged offsetting collateral to one of these counterparties that is eligible to offset the derivative liability amount as of June 30, 2014. At June 30, 2014 additional collateral pledged in the amount of $32,446,211 was posted in support of derivative positions and is included in due from brokers on the statement of financial condition.

37

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following table summarizes the results of operations of each Master Fund for the three and six month periods ended June 30, 2014:

	Three Months Ended June 30, 2014
	Graham Commodity Strategies LLC			Graham Global Monetary Policy LLC			Graham K4D Trading Ltd.			Graham Macro Directional LLC
Net investment loss	$	(8,263	)	$	(4,838	)	$	(9,122	)	$	(6,594	)
Net realized gain (loss) on investments		(17,770,582	)		(24,442,350	)		30,579,837			(51,380,248	)
Net increase (decrease) in unrealized appreciation on investments		(21,318,667	)		(8,041,306	)		33,961,241			13,556,276
Brokerage commissions and fees		(2,410,821	)		(1,348,581	)		(276,260	)		(575,164	)
Net gain (loss) on investments		(41,500,070	)		(33,832,237	)		64,264,818			(38,399,136	)
Net income (loss)	$	(41,508,333	)	$	(33,837,075	)	$	64,255,696		$	(38,405,730	)

	Six Months Ended June 30, 2014
	Graham Commodity Strategies LLC			Graham Global Monetary Policy LLC			Graham K4D Trading Ltd.			Graham Macro Directional LLC
Net investment loss	$	(25,167	)	$	(20,189	)	$	(38,834	)	$	(9,300	)
Net realized loss on investments		(78,448,483	)		(54,349,024	)		(18,627,897	)		(85,335,043	)
Net decrease in unrealized appreciation on investments		(46,141,879	)		(26,596,419	)		(7,591,697	)		(9,632,937	)
Brokerage commissions and fees		(5,107,727	)		(3,032,881	)		(612,513	)		(877,889	)
Net loss on investments		(129,698,089	)		(83,978,324	)		(26,832,107	)		(95,845,869	)
Net loss	$	(129,723,256	)	$	(83,998,513	)	$	(26,870,941	)	$	(95,855,169	)

38

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following table shows the gross gains and losses on all financial instruments held by the Master Funds reported in net realized gain (loss) and net increase (decrease) in unrealized appreciation on investments in their statements of operations segregated by primary underlying risk and contract type for the three month period ended June 30, 2014:

	Graham Commodity Strategies LLC			Graham Global Monetary Policy LLC			Graham K4D Trading Ltd.			Graham Macro Directional LLC
Commodity price
Futures	$	(669,971	)	$	(2,077,230	)	$	(12,054,748	)	$	(748,235	)
Options		6,784,110			-			-			(70,500	)
Swaps		1,189,119			-			-			-
		7,303,258			(2,077,230	)		(12,054,748	)		(818,735	)
Equity price
Equities		(69,800	)		-			64,000			-
Futures		(1,494,509	)		(9,539,809	)		27,809,919			(1,790,835	)
Options		(9,955,785	)		-			-			-
		(11,520,094	)		(9,539,809	)		27,873,919			(1,790,835	)
Foreign currency exchange rate
Forwards		(8,864,052	)		1,995,771			4,838,703			(34,460,893	)
Futures		347,869			-			1,025,685			-
Options		(24,970,474	)		(1,425,623	)		-			(977,482	)
		(33,486,657	)		570,148			5,864,388			(35,438,375	)
Interest rate
Futures		6,235,283			(18,698,482	)		42,857,519			(71,340	)
Options		(8,923,023	)		(2,738,283	)		-			295,313
Swaps		1,301,984			-			-			-
		(1,385,756	)		(21,436,765	)		42,857,519			223,973
Total	$	(39,089,249	)	$	(32,483,656	)	$	64,541,078		$	(37,823,972	)

39

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following table shows the gross gains and losses on all financial instruments held by the Master Funds reported in net realized loss and net decrease in unrealized appreciation on investments in their statements of operations segregated by primary underlying risk and contract type for the six month period ended June 30, 2014:

	Graham Commodity Strategies LLC			Graham Global Monetary Policy LLC			Graham K4D Trading Ltd.			Graham Macro Directional LLC
Commodity price
Futures	$	(11,643,119	)	$	(2,947,823	)	$	(72,184,162	)	$	2,030,823
Options		5,557,738			-			-			66,406
Swaps		(739,008	)		-			-			-
		(6,824,389	)		(2,947,823	)		(72,184,162	)		2,097,229
Equity price
Equities		(235,800	)		-			39,750			-
Futures		1,553,574			(25,484,480	)		(16,142,601	)		(7,096,413	)
Options		(18,378,430	)		-			-			-
		(17,060,656	)		(25,484,480	)		(16,102,851	)		(7,096,413	)
Foreign currency exchange rate
Forwards		3,567,825			(36,469,062	)		16,967,155			(79,806,383	)
Futures		347,869			-			(1,600,003	)		-
Options		(89,782,907	)		5,502,129			-			(1,889,306	)
		(85,867,213	)		(30,966,933	)		15,367,152			(81,695,689	)
Interest rate
Futures		(3,795,048	)		(18,176,065	)		46,700,267			(8,568,420	)
Options		(8,744,800	)		(3,370,142	)		-			295,313
Swaps		(2,298,256	)		-			-			-
		(14,838,104	)		(21,546,207	)		46,700,267			(8,273,107	)
Total	$	(124,590,362	)	$	(80,945,443	)	$	(26,219,594	)	$	(94,967,980	)

40

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following table summarizes the financial position of each Master Fund as of December 31, 2013:

	Graham Commodity Strategies LLC (Delaware)			Graham Global Monetary Policy LLC (Delaware)			Graham K4D Trading Ltd. (BVI)
Assets:
Due from brokers	$	129,230,754		$	102,705,866		$	127,824,315
Derivative financial instruments, at fair value		80,129,304			13,304,071			41,566,974
Exchange membership, at fair value		2,794,300			-			854,250
Dividends receivable		64,050			-			-
Other assets		-			118			-
Total assets		212,218,408			116,010,055			170,245,539
Liabilities:
Derivative financial instruments, at fair value		-			9,593,764			-
Total liabilities		-			9,593,764			-
Net assets	$	212,218,408		$	106,416,291		$	170,245,539
Percentage of Master Fund held by GAIT		5.51	%		5.20	%		9.71	%

41

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following schedules display the condensed schedules of investments for the Master Funds as of December 31, 2013.

Description	Notional Amount / Number of Contracts		Fair Value			Percentage of Members’ Capital of Master Fund
Graham Commodity Strategies LLC
Derivative financial instruments
Long contracts
Futures
Commodity			$	(53,020	)		(0.02	)%
Foreign bond				(336,590	)		(0.16	)%
Foreign index				331,430			0.16	%
Interest rate				(223,204	)		(0.11	)%
U.S. bond				(230,703	)		(0.11	)%
Total futures				(512,087	)		(0.24	)%
Swaps
Interest rate				(1,938,332	)		(0.91	)%
Total swaps				(1,938,332	)		(0.91	)%
Forwards
Japanese yen / U.S. dollar 01/15/14	JPY 285,467,229,820			(14,084,520	)		(6.64	)%
Other Japanese yen / U.S. dollar 01/06/14 – 01/07/14				(4,784,084	)		(2.25	)%
Other foreign currency				12,395,703			5.84	%
Total forwards				(6,472,901	)		(3.05	)%
Options (cost $79,741,153)
U.S. dollar / Chinese yuan 03/07/14, $6.23 Put		4		11,882,525			5.60	%
U.S. dollar / Chinese yuan 03/07/14, $6.30 Put		3		12,413,547			5.85	%
U.S. dollar / Chinese yuan 03/07/14 - 06/04/14, $6.10 - $6.18 Put		6		10,914,033			5.14	%
Other U.S. dollar / Chinese yuan 03/07/14 - 12/31/14, $6.10 - $6.17 Put				9,123,219			4.30	%
U.S. dollar / Japanese yen 01/10/14, $101 Call		2		12,299,882			5.80	%
U.S. dollar / Japanese yen 04/08/14, $101 Call		1		11,919,922			5.62	%
U.S. dollar / Japanese yen 04/08/14, $104 Call		1		13,654,530			6.43	%
Other U.S. dollar / Japanese yen 01/17/14 - 11/10/14, $102.50 - $123.00 Call				22,120,836			10.42	%
Other U.S. dollar / Japanese yen 01/02/14 - 01/06/14, $103.00 Put				29,469			0.01	%
Other currency				12,463,768			5.87	%
Foreign bond futures				206,193			0.10	%
Foreign index futures				3,813,777			1.80	%
U.S. bond futures				781,250			0.37	%
U.S. index futures				3,250,000			1.53	%
Total options				124,872,951			58.84	%

42

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following schedules display the condensed schedules of investments for the Master Funds as of December 31, 2013.

Description	Notional Amount / Number of Contracts		Fair Value			Percentage of Members’ Capital of Master Fund
Graham Commodity Strategies LLC (continued)
Derivative financial instruments (continued)
Short contracts
Futures
Commodity			$	552,040			0.26	%
Foreign bond				87,993			0.04	%
Interest rate				6,976			0.00	%
U.S. bond				(171,875	)		(0.08	)%
Total futures				475,134			0.22	%
Swaps
Interest rate				360,353			0.17	%
Total swaps				360,353			0.17	%
Forwards
U.S. dollar / Japanese yen 01/15/14	JPY(499,475,915,640)			33,411,262			15.74	%
Other U.S. dollar / Japanese yen 01/06/14 – 01/07/14				5,444,684			2.57	%
Other foreign currency				(5,523,223	)		(2.60	)%
Total forwards				33,332,723			15.71	%
Options (proceeds $50,564,049)
U.S. dollar / Chinese yuan 03/07/14, $6.23 Put		(4)		(11,882,525	)		(5.60	)%
U.S. dollar / Chinese yuan 03/07/14, $6.30 Put		(4)		(12,413,547	)		(5.85	)%
Other U.S. dollar / Chinese yuan 03/07/14 - 12/02/14, $5.98 - $6.17 Put				(3,500,628	)		(1.65	)%
U.S. dollar / Japanese yen 04/08/14, $101 Call		(1)		(11,919,922	)		(5.62	)%
Other U.S. dollar / Japanese yen 01/10/14 - 04/08/14, $102.50 - $114.00 Call				(20,135,817	)		(9.48	)%
Other currency				(9,823,598	)		(4.63	)%
U.S. bond				(312,500	)		(0.15	)%
Total options				(69,988,537	)		(32.98	)%
Total derivative financial instruments			$	80,129,304			37.76	%

43

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following schedules display the condensed schedules of investments for the Master Funds as of December 31, 2013.

Description	Number of Contracts	Fair Value			Percentage of Members’ Capital of Master Fund
Graham Global Monetary Policy LLC
Derivative financial instruments
Long contracts
Futures
Commodity		$	128,850			0.12	%
Foreign bond			802,342			0.75	%
Foreign index			2,765,027			2.60	%
Interest rate			(3,880,963	)		(3.64	)%
U.S. index			3,250,338			3.05	%
Total futures			3,065,594			2.88	%
Forwards
Foreign currency			3,290,191			3.09	%
Total forwards			3,290,191			3.09	%
Options (cost $6,242,152)
Foreign currency			2,049,584			1.93	%
Total options			2,049,584			1.93	%
Short contracts
Futures
Commodity			267,000			0.25	%
Foreign bond			1,047,621			0.98	%
Foreign index			(1,017,217	)		(0.96	)%
Interest rate			6,236,193			5.87	%
U.S. bond			3,700,384			3.48	%
Total futures			10,233,981			9.62	%
Forwards
Foreign currency			(1,978,963	)		(1.86	)%
Total forwards			(1,978,963	)		(1.86	)%
Options (proceeds $21,920,475)
Euro / Swiss franc 01/15/14 - 06/16/14, 1.20 - 1.24 Put	15		(9,180,740	)		(8.63	)%
Euro / Swiss franc 01/23/14 - 03/27/14, 1.23 - 1.24 Call	9		(3,769,340	)		(3.54	)%
Total options			(12,950,080	)		(12.17	)%
Total derivative financial instruments		$	3,710,307			3.49	%

44

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following schedules display the condensed schedules of investments for the Master Funds as of December 31, 2013.

Description	Fair Value			Percentage of Net Assets of Master Fund
Graham K4D Trading Ltd.
Derivative financial instruments
Long contracts
Futures
Commodity	$	2,119,535			1.24	%
Currency		338,275			0.20	%
Foreign bond		(3,988,711	)		(2.34	)%
Foreign index		17,706,322			10.40	%
Interest rate		(4,219,151	)		(2.48	)%
U.S. bond		(1,869,974	)		(1.10	)%
U.S. index		11,633,613			6.83	%
Total futures		21,719,909			12.75	%
Forwards
Foreign currency		3,567,368			2.10	%
Total forwards		3,567,368			2.10	%
Short contracts
Futures
Commodity		7,263,881			4.26	%
Currency		272,861			0.16	%
Foreign bond		1,615,436			0.95	%
Foreign index		(2,864,926	)		(1.68	)%
Interest rate		316,308			0.19	%
U.S. bond		3,636,948			2.14	%
U.S. index		(149,710	)		(0.09	)%
Total futures		10,090,798			5.93	%
Forwards
Foreign currency		6,188,899			3.64	%
Total forwards		6,188,899			3.64	%
Total derivative financial instruments	$	41,566,974			24.42	%

45

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following table shows the fair value classification of each investment type by Master Fund as of December 31, 2013:

	Graham Commodity Strategies LLC			Graham Global Monetary Policy LLC			Graham K4D Trading Ltd.
Assets
Level 1:
U.S. bond futures	$	-		$	3,700,384		$	3,636,948
U.S. bond futures options		781,250			-			-
Foreign bond futures		87,993			1,849,963			3,780,754
Foreign bond futures options		206,193			-			-
Foreign index futures		331,430			2,765,027			17,711,747
Foreign index futures options		3,813,777			-			-
U.S. index futures		-			3,250,338			11,633,613
U.S. index futures options		3,250,000			-			-
Commodity futures		555,340			542,100			20,981,773
Interest rate futures		6,976			6,409,614			319,692
Currency futures		-			-			706,749
Total Level 1		9,032,959			18,517,426			58,771,276
Level 2:
Foreign currency forwards		63,466,694			19,384,491			14,317,387
Foreign currency options		116,821,732			2,049,584			-
Interest rate swaps		654,860			-			-
Total Level 2		180,943,286			21,434,075			14,317,387
Total investment related assets	$	189,976,245		$	39,951,501		$	73,088,663
Liabilities
Level 1:
U.S. bond futures	$	(402,578	)	$	-		$	(1,869,974	)
U.S. bond futures options		(312,500	)		-			-
Foreign bond futures		(336,590	)		-			(6,154,029	)
Foreign index futures		-			(1,017,217	)		(2,870,351	)
U.S. index futures		-			-			(149,710	)
Commodity futures		(56,320	)		(146,250	)		(11,598,357	)
Interest rate futures		(223,204	)		(4,054,384	)		(4,222,535	)
Currency futures		-			-			(95,613	)
Total Level 1		(1,331,192	)		(5,217,851	)		(26,960,569	)
Level 2:
Foreign currency forwards		(36,606,872	)		(18,073,263	)		(4,561,120	)
Foreign currency options		(69,676,038	)		(12,950,080	)		-
Interest rate swaps		(2,232,839	)		-			-
Total Level 2		(108,515,749	)		(31,023,343	)		(4,561,120	)
Total investment related liabilities	$	(109,846,941	)	$	(36,241,194	)	$	(31,521,689	)

46

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following table displays the gross volume of derivative activities based on their notional amounts and number of contracts and fair value of derivative contracts held by the Master Funds at December 31, 2013 categorized by primary underlying risk and is representative of the derivative instruments held by the Master Funds throughout the year. Derivatives denominated in foreign currencies have been converted to U.S. dollars. Derivative asset and liability balances are presented on a gross basis, prior to the application of counterparty netting. The Master Funds trade derivative instruments on a leveraged basis. Due to the low margin deposits normally required for trading these derivative financial instruments, the gross notional exposure as displayed in the tables below may exceed the net asset value of the Master Funds by a significant amount. As a result, a relatively small price movement in an underlying derivative financial instrument may result in immediate and substantial effect on the net income and net asset value of the Master Funds and GAIT.

	Graham Commodity Strategies LLC
	Long exposure				Short exposure
	Notional amounts		Number of contracts		Notional amounts			Number of contracts			Derivative Assets		Derivative Liabilities
Commodity price
Futures	$	1,023,155		27	$	(86,736,500	)		(875	)	$	555,340	$	(56,320	)
		1,023,155		27		(86,736,500	)		(875	)		555,340		(56,320	)
Equity price
Futures		27,916,083		243		-			-			331,430		-
Options(a)		242,380,248		7,250		-			-			7,063,777		-
		270,296,331		7,493		-			-			7,395,207		-
Foreign currency exchange rate
Forwards		10,443,360,550		N/A		(10,140,658,387	)		N/A			63,466,694		(36,606,872	)
Options(a)		3,352,679,978		55		(3,877,669,196	)		(60	)		116,821,732		(69,676,038	)
		13,796,040,528		55		(14,018,327,583	)		(60	)		180,288,426		(106,282,910	)
Interest rate
Futures		4,218,339,506		8,393		(417,593,882	)		(2,917	)		94,969		(962,372	)
Options(a)		73,143,121		5,500		(93,712,500	)		(4,000	)		987,443		(312,500	)
Swaps		1,461,834,808		7		(1,461,834,808	)		(7	)		654,860		(2,232,839	)
		5,753,317,435		13,900		(1,973,141,190	)		(6,924	)		1,737,272		(3,507,711	)
Total	$	19,820,677,449		21,475	$	(16,078,205,273	)		(7,859	)	$	189,976,245	$	(109,846,941	)
Aggregate fair value of derivative instruments subject to credit-risk related contingent features (as described in Note 2).													$	(1,577,979	)

(a) Notional amounts for options are based on the delta-adjusted positions.

47

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following table displays the gross volume of derivative activities based on their notional amounts and number of contracts and fair value of derivative contracts held by the Master Funds at December 31, 2013 categorized by primary underlying risk and is representative of the derivative instruments held by the Master Funds throughout the year. Derivatives denominated in foreign currencies have been converted to U.S. dollars. Derivative asset and liability balances are presented on a gross basis, prior to the application of counterparty netting. The Master Funds trade derivative instruments on a leveraged basis. Due to the low margin deposits normally required for trading these derivative financial instruments, the gross notional exposure as displayed in the tables below may exceed the net asset value of the Master Funds by a significant amount. As a result, a relatively small price movement in an underlying derivative financial instrument may result in immediate and substantial effect on the net income and net asset value of the Master Funds and GAIT.

	Graham Global Monetary Policy LLC
	Long exposure				Short exposure
	Notional amounts		Number of contracts		Notional amounts			Number of contracts			Derivative Assets		Derivative Liabilities
Commodity price
Futures	$	23,376,150		300	$	(8,683,200	)		(80	)	$	542,100	$	(146,250	)
		23,376,150		300		(8,683,200	)		(80	)		542,100		(146,250	)
Equity price
Futures		210,629,836		2,475		(38,274,091	)		(2,210	)		6,015,365		(1,017,217	)
		210,629,836		2,475		(38,274,091	)		(2,210	)		6,015,365		(1,017,217	)
Foreign currency exchange rate
Forwards		92,022,916,376		N/A		(38,009,941,739	)		N/A			19,384,491		(18,073,263	)
Options(a)		2,049,580		43		(12,950,080	)		(43	)		2,049,584		(12,950,080	)
		92,024,965,956		43		(38,022,891,819	)		(43	)		21,434,075		(31,023,343	)
Interest rate
Futures		3,982,239,026		14,619		(3,336,191,401	)		(16,810	)		11,959,961		(4,054,384	)
		3,982,239,026		14,619		(3,336,191,401	)		(16,810	)		11,959,961		(4,054,384	)
Total	$	96,241,210,968		17,437	$	(41,406,040,511	)		(19,143	)	$	39,951,501	$	(36,241,194	)

(a) Notional amounts for options are based on the delta-adjusted positions.

48

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following table displays the gross volume of derivative activities based on their notional amounts and number of contracts and fair value of derivative contracts held by the Master Funds at December 31, 2013 categorized by primary underlying risk and is representative of the derivative positions held by the Master Funds throughout the year. Derivatives denominated in foreign currencies have been converted to U.S. dollars. Derivative asset and liability balances are presented on a gross basis, prior to the application of counterparty netting. The Master Funds trade derivative instruments on a leveraged basis. Due to the low margin deposits normally required for trading these derivative financial instruments, the gross notional exposure as displayed in the tables below may exceed the net asset value of the Master Funds by a significant amount. As a result, a relatively small price movement in an underlying derivative financial instrument may result in immediate and substantial effect on the net income and net asset value of the Master Funds and GAIT.

	Graham K4D Trading Ltd.
	Long exposure				Short exposure
	Notional amounts		Number of contracts		Notional amounts			Number of contracts			Derivative Assets		Derivative Liabilities
Commodity price
Futures	$	600,736,167		7,868	$	(818,149,290	)		(14,183	)	$	20,981,773	$	(11,598,357	)
		600,736,167		7,868		(818,149,290	)		(14,183	)		20,981,773		(11,598,357	)
Equity price
Futures		1,084,321,015		10,363		(72,186,031	)		(1,773	)		29,345,360		(3,020,061	)
		1,084,321,015		10,363		(72,186,031	)		(1,773	)		29,345,360		(3,020,061	)
Foreign currency exchange rate
Futures		41,642,925		339		(184,204,020	)		(2,217	)		706,749		(95,613	)
Forwards		1,307,412,590		N/A		(933,293,797	)		N/A			14,317,387		(4,561,120	)
		1,349,055,515		339		(1,117,497,817	)		(2,217	)		15,024,136		(4,656,733	)
Interest rate
Futures		4,856,729,015		19,225		(2,479,086,853	)		(16,180	)		7,737,394		(12,246,538	)
		4,856,729,015		19,225		(2,479,086,853	)		(16,180	)		7,737,394		(12,246,538	)
Total	$	7,890,841,712		37,795	$	(4,486,919,991	)		(34,353	)	$	73,088,663	$	(31,521,689	)

49

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

When multiple derivative contracts are held with the same counterparty, the Master Funds will net the contracts in an asset position with the contracts in a liability position when covered by a master netting agreement or similar arrangements, for presentation in the statements of financial condition. The table below displays the amounts at December 31, 2013 by which the fair values of both derivative assets and derivative liabilities were reduced within the Master Funds’ statements of financial condition as a result of this netting. Gross amounts below correspond to the total derivative asset and derivative liability balances categorized by primary underlying risk and product type in the preceding tables. Collateral pledged (received) for derivative assets and liabilities represent the cash amounts which are included in due from brokers on the statements of financial condition.  Actual collateral pledged or received by the Master Fund may exceed these amounts.

Description	Gross Amount			Gross Amount Offset in the Statements of Financial Condition			Net Amount Presented in the Statements of Financial Condition			Collateral (Received) / Pledged		Net Amount
Graham Commodity Strategies LLC1
Derivative assets	$	189,976,245		$	(109,846,941	)	$	80,129,304		$	-	$	80,129,304
Derivative liabilities		(109,846,941	)		109,846,941			-			-		-
Graham Global Monetary Policy LLC2
Derivative assets		39,951,501			(26,647,430	)		13,304,071			-		13,304,071
Derivative liabilities		(36,241,194	)		26,647,430			(9,593,764	)		9,593,764		-
Graham K4D Trading Ltd. 3
Derivative assets		73,088,663			(31,521,689	)		41,566,974			-		41,566,974
Derivative liabilities		(31,521,689	)		31,521,689			-			-		-

¹ Net derivative asset amounts presented in the statement of financial condition are held with three counterparties. The Master Fund has not received collateral from these counterparties that is eligible to offset these derivative amounts as of December 31, 2013. There were no net derivative liability amounts held with any counterparties as of December 31, 2013. At December 31, 2013 additional collateral pledged in the amount of $129,230,754 was posted in support of derivative positions and is included in due from brokers on the statement of financial condition.

² Net derivative asset and liability amounts presented in the statement of financial condition are held with two counterparties. The Master Fund has pledged offsetting collateral to one of these counterparties. At December 31, 2013 additional collateral pledged in the amount of $93,112,102 was posted in support of derivative positions and is included in due from brokers on the statement of financial condition.

³ Net derivative asset amounts presented in the statement of financial condition are held with three counterparties. The Master Fund has not received collateral from these counterparties that is eligible to offset these derivative amounts as of December 31, 2013. There were no net derivative liability amounts held with any counterparties as of December 31, 2013. At December 31, 2013 additional collateral pledged in the amount of $127,824,315 was posted in support of derivative positions and is included in due from brokers on the statement of financial condition.

50

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following table summarizes the results of operations of each Master Fund for the year ended December 31, 2013:

	Graham Commodity Strategies LLC			Graham Global Monetary Policy LLC			Graham K4D Trading Ltd.
Net investment income (loss)	$	99,431		$	(42,646	)	$	(6,182	)
Net realized gain on investments		79,075,377			51,595,494			140,524,370
Net increase in unrealized appreciation on investments		47,155,885			7,964,706			16,934,274
Brokerage commissions and fees		(12,430,107	)		(4,413,185	)		(1,766,806	)
Net gain on investments		113,801,155			55,147,015			155,691,838
Net income	$	113,900,586		$	55,104,369		$	155,685,656

51

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

3. Investments in Master Funds (continued)

The following table shows the gross gains and losses on all financial instruments held by the Master Funds reported in net realized gain and net increase in unrealized appreciation on investments in their statements of operations segregated by primary underlying risk and contract type for the year ended December 31, 2013:

	Graham Commodity Strategies LLC			Graham Global Monetary Policy LLC			Graham K4D Trading Ltd.
Commodity price
Futures	$	(53,579,007	)	$	(5,104,883	)	$	22,390,945
Options		(1,216,750	)		-			-
Swaps		2,633,906			-			(577,404	)
		(52,161,851	)		(5,104,883	)		21,813,541
Equity price
Futures		(6,426,914	)		11,906,544			233,196,965
Equities		794,000			-			60,994
Options		5,308,495			89,030			-
		(324,419	)		11,995,574			233,257,959
Foreign currency exchange rate
Futures		(3,199,215	)		-			(3,993,100	)
Forwards		136,702,422			2,814,065			(16,548,454	)
Options		32,993,122			12,861,563			-
		166,496,329			15,675,628			(20,541,554	)
Interest rate
Bonds		16,147			-			42,352
Futures		15,085,869			39,523,590			(77,113,654	)
Options		523,654			(2,529,709	)		-
Swaps		(3,404,467	)		-			-
		12,221,203			36,993,881			(77,071,302	)
Total	$	126,231,262		$	59,560,200		$	157,458,644

52

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

4. Graham Cash Assets LLC

GAIT invests a portion of its excess liquidity in Cash Assets, an entity for which the Manager is also the sole investment advisor. Cash Assets commenced operations on June 22, 2005, and was formed as a Delaware Limited Liability Company for the purpose of consolidating investment activity of multiple funds managed by the Manager. Its objective is to preserve capital while enhancing return on cash balances and providing daily liquidity. It invests in debt obligations guaranteed by the U.S. federal government which range in maturity from one to nineteen months. Cash Assets also maintains cash and cash equivalents on deposit with major U.S. institutions. Cash Assets values all fixed income securities at amortized cost which approximates fair value. GAIT’s investment in Cash Assets is valued in the accompanying statements of financial condition at fair value in accordance with U.S. GAAP based upon GAIT’s proportionate share of Cash Assets’ reported net asset value. GAIT records its proportionate share of Cash Assets’ investment income and expenses on a monthly basis. For the three and six months ended June 30, 2014, the total amount recognized by GAIT with respect to its investment in Cash Assets were $86,298 and $175,370, respectively. For the three and six months ended June 30, 2013, the total amount recognized by GAIT with respect to its investment in Cash Assets was $109,104 and $233,266, respectively. These amounts are included in interest income in the statements of operations and incentive allocation. At June 30, 2014 and December 31, 2013, GAIT owned approximately 4.94% and 4.36%, respectively, of Cash Assets. The following table summarizes the financial position of Cash Assets as of June 30, 2014 and December 31, 2013:

	June 30, 2014		December 31, 2013
Assets:
Cash and cash equivalents	$	736,529,942	$	1,011,694,165
Investments in fixed income securities (cost $1,937,085,549 and $2,493,161,454, respectively)		1,937,085,549		2,493,161,454
Accrued interest receivable		5,278,778		6,806,338
Total assets		2,678,894,269		3,511,661,957
Liabilities:
Other liabilities		-		15,004
Total liabilities		-		15,004
Net assets	$	2,678,894,269	$	3,511,646,953

The following table summarizes the results of operations of Cash Assets for the three and six month periods ended June 30, 2014 and 2013:

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
Investment income
Interest income	$	1,731,457	$	2,113,258	$	3,654,826	$	4,240,391
Total investment income		1,731,457		2,113,258		3,654,826		4,240,391
Expenses:
Bank fee expense		15,931		25,311		27,216		58,964
Total expenses		15,931		25,311		27,216		58,964
Net investment income		1,715,526		2,087,947		3,627,610		4,181,427
Net income	$	1,715,526	$	2,087,947	$	3,627,610	$	4,181,427

53

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

4. Graham Cash Assets LLC (continued)

The following represents the condensed schedule of investments of Cash Assets as of June 30, 2014:

Description	Principal Amount		Fair Value		Percentage of Members’ Capital
Investments in Fixed Income Securities (cost $1,937,085,549)
United States
Government Bonds (cost $1,937,085,549)
U.S. Treasury 2.38% due 10/31/14	$	150,000,000	$	151,250,551		5.65	%
Other U.S. Treasury 0.25% – 4.00% due 07/31/14 – 01/31/16				1,785,834,998		66.66	%
Total Government Bonds				1,937,085,549		72.31	%
Total Investments in Fixed Income Securities			$	1,937,085,549		72.31	%

The following represents the condensed schedule of investments of Cash Assets as of December 31, 2013:

Description	Principal Amount		Fair Value		Percentage of Members’ Capital
Investments in Fixed Income Securities (cost $2,493,161,454)
United States
Government Bonds (cost $2,493,161,454)
U.S. Treasury 0.13% – 4.00% due 01/15/14 – 9/15/15	$	2,475,000,000	$	2,493,161,454		71.00	%
Total Government Bonds				2,493,161,454		71.00	%
Total Investments in Fixed Income Securities			$	2,493,161,454		71.00	%

Cash Assets reports the fair value of its investment related assets and liabilities in accordance with the hierarchy established under U.S. GAAP. The following table shows the fair value classification of each investment type held by Cash Assets as of June 30, 2014 and December 31, 2013:

	June 30, 2014		December 31, 2013
Assets
Level 2:
Fixed income securities
Government Bonds	$	1,937,085,549	$	2,493,161,454
Total fixed income securities		1,937,085,549		2,493,161,454
Total Level 2		1,937,085,549		2,493,161,454
Total assets	$	1,937,085,549	$	2,493,161,454

54

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

5. Capital Accounts

GAIT offers Class 0 Units and Class 2 Units (collectively, the “Units”). GAIT may issue additional classes in the future subject to different fees, expenses or other terms, or to invest in other investment programs or combinations of investment programs managed by the Manager. GAIT also has Management Units (“Class M units”) which are solely for the investment of the Manager.

A separate Capital Account is maintained for each member with respect to each Class of Units held by such member. The initial balance of each member’s Capital Account is equal to the initial contribution to GAIT with respect to the Class to which such Capital Account relates. Each member’s Capital Account is increased by any additional subscription, and decreased by any redemption by such member of Units of such Class to which the Capital Account relates. All income and expenses of GAIT are allocated among the Capital Accounts of the members in proportion to the balance that each Capital Account bears to the balance of all Capital Accounts as of the beginning of such fiscal period.

Subscriptions

Units may be purchased at a price equal to the Net Asset Value per Unit of the relevant Class as of the immediately preceding Valuation Day, as defined in the LLC Agreement. There is no minimum subscription amount.

Units are available for subscription as of the first business day of each month upon written notice of at least three business days prior to the last business day of the preceding month.

Redemptions

Units are not subject to any minimum holding period. Members may redeem Units at the Net Asset Value thereof as of the last business day of each month upon not less than three business days’ prior written notice to the administrator.

6. Fees and Related Party Transactions

Advisory Fees

For the six months ended June 30, 2014 and 2013 each Class of GAIT other than Class M pays the Manager an advisory fee (the “Advisory Fee”) at an aggregate annual rate equal to 1.75% of the Net Asset Value of such Class. The Advisory Fee is payable monthly in arrears calculated as of the last business day of each month and any other date the Manager may permit, in its sole and absolute discretion, as of which any subscription or redemption is effected with respect to Units of such Class during the month.

55

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

6. Fees and Related Party Transactions (continued)

Sponsor Fees

For the six months ended June 30, 2014 and 2013, each Class of GAIT other than Class M paid the Manager a sponsor fee (the “Sponsor Fee”) at an annual rate of the Net Asset Value specified in the table below. The Sponsor Fee is payable monthly in arrears calculated as of the last business day of each month in the same manner as the Advisory Fee. For the three months ended March 31, 2013, the annual rate listed below for Class 2 comprised a Sponsor Fee of 0.75% and selling agent fee (the “Selling Agent Fee”) of 2%, which was used to compensate selling agents for initial and on-going services to the Fund. Subsequent to March 31, 2013, the Sponsor Fee and the Selling Agent Fee were combined to form the Sponsor Fee listed in the table below.

Class	Annual Rate
Class 0	0.75%
Class 2	2.75%

Incentive Allocation

At the end of each calendar quarter, the Manager will receive a special allocation of net profits (the “Incentive Allocation”) in an amount equal to 20% of the New High Net Trading Profits of each Class as defined in the LLC Agreement. The Incentive Allocation is also accrued and allocable on the date of redemption with respect to any Units that are redeemed prior to the end of a calendar quarter. Additionally, any loss carryforward attributable to any class of GAIT shall be proportionately reduced effective as of the date of any redemption of any Units of such class by multiplying the loss carryforward by the ratio that the amount of assets redeemed from such class bears to the net assets of such class immediately prior to such redemption. The loss carryforward of a class must be recouped before any subsequent Incentive Allocation can be made to the Manager.

Administrator’s Fee

For the six months ended June 30, 2014 and 2013, GAIT paid SEI a monthly administrator’s fee based on GAIT’s net asset value, calculated as of the last business day of each month. In addition, GAIT reimbursed SEI for reasonable out-of-pocket expenses incurred on behalf of GAIT.

Any portion of any of the above fees, including the Incentive Allocation, may be paid by the Manager to third parties as compensation for selling activities in connection with GAIT.

7. Income Taxes

No provision for income taxes has been made in the accompanying financial statements, as members are individually responsible for reporting income or loss based upon their respective share of GAIT’s revenues and expenses for income tax purposes.

56

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

7. Income Taxes (continued)

U.S. GAAP provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. U.S. GAAP requires the evaluation of tax positions taken or expected to be taken in the course of preparing GAIT’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet a more-likely-than-not threshold would be recorded as a tax expense in the current year. The Manager has evaluated GAIT’s tax positions and has concluded that there are no significant tax positions requiring recognition, measurement or disclosure in the financial statements. The Manager is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax expense will change materially in the next twelve months. Tax years which are considered open by the relevant jurisdiction are subject to potential examination.

8. Financial Highlights

The following is the per unit operating performance calculation for the three month periods ended June 30, 2014 and 2013:

	Class 0			Class 2
Per unit operating performance
Net asset value per unit, March 31, 2013	$	122.47		$	95.80
Net loss:
Net investment loss		(0.86	)		(1.13	)
Net loss on investments		(0.48	)		(0.39	)
Net loss		(1.34	)		(1.52	)
Net asset value per unit, June 30, 2013	$	121.13		$	94.28
Net asset value per unit, March 31, 2014	$	114.03		$	87.43
Net income:
Net investment loss		(0.76	)		(1.05	)
Net gain on investments		1.73			1.35
Net income		0.97			0.30
Net asset value per unit, June 30, 2014	$	115.00		$	87.73

57

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

8. Financial Highlights (continued)

The following represents ratios to average members’ capital, excluding the Managing Member, and total return for the three month periods ended June 30, 2014 and 2013:

	Class 0						Class 2
	2014			2013			2014			2013
Total return before Incentive Allocation		0.85	%		(1.09	)%		0.35	%		(1.59	)%
Incentive Allocation		0.00			0.00			0.00			0.00
Total return after Incentive Allocation		0.85	%		(1.09	)%		0.35	%		(1.59	)%
Net investment loss before Incentive Allocation		(0.67	)%		(0.70	)%		(1.20	)%		(1.18	)%
Incentive Allocation		0.00			0.00			0.00			0.00
Net investment loss after Incentive Allocation		(0.67	)%		(0.70	)%		(1.20	)%		(1.18	)%
Total expenses before Incentive Allocation		0.72	%		0.74	%		1.25	%		1.22	%
Incentive Allocation		0.00			0.00			0.00			0.00
Total expenses after Incentive Allocation		0.72	%		0.74	%		1.25	%		1.22	%

The following is the per unit operating performance calculation for the six month periods ended June 30, 2014 and 2013:

	Class 0			Class 2
Per unit operating performance
Net asset value per unit, December 31, 2012	$	114.88		$	90.29
Net income:
Net investment loss		(1.74	)		(2.28	)
Net gain on investments		7.99			6.27
Net income		6.25			3.99
Net asset value per unit, June 30, 2013	$	121.13		$	94.28
Net asset value per unit, December 31, 2013	$	127.72		$	98.41
Net loss:
Net investment loss		(1.53	)		(2.08	)
Net loss on investments		(11.19	)		(8.60	)
Net loss		(12.72	)		(10.68	)
Net asset value per unit, June 30, 2014	$	115.00		$	87.73

58

Graham Alternative Investment Trading LLC

Notes to Unaudited Financial Statements (continued)

8. Financial Highlights (continued)

The following represents ratios to average members’ capital, excluding the Managing Member, and total return for the six month periods ended June 30, 2014 and 2013:

	Class 0						Class 2
	2014			2013			2014			2013
Total return before Incentive Allocation		(9.96	)%		5.44	%		(10.85	)%		4.42	%
Incentive Allocation		0.00			0.00			0.00			0.00
Total return after Incentive Allocation		(9.96	)%		5.44	%		(10.85	)%		4.42	%
Net investment loss before Incentive Allocation		(1.29	)%		(1.46	)%		(2.31	)%		(2.42	)%
Incentive Allocation		0.00			0.00			0.00			0.00
Net investment loss after Incentive Allocation		(1.29	)%		(1.46	)%		(2.31	)%		(2.42	)%
Total expenses before Incentive Allocation		1.40	%		1.56	%		2.41	%		2.52	%
Incentive Allocation		0.00			0.00			0.00			0.00
Total expenses after Incentive Allocation		1.40	%		1.56	%		2.41	%		2.52	%

Total return is calculated for Class 0 and Class 2 units taken as a whole. Total return is calculated as the change in total members’ capital, excluding that of the Managing Member, adjusted for subscriptions or redemptions during the period. An individual member’s return may vary from these returns based on the timing of capital transactions and the applicability of Advisory Fees, Sponsor Fees, Administrator’s Fees, and the Incentive Allocation. The net investment loss and total expense ratios (including Incentive Allocation) are calculated for the Class 0 and Class 2 units taken as a whole and include amounts from GAIT and net investment loss and expenses allocated from Master Funds and investment income from Cash Assets. The computation of such ratios is based on the amount of net investment loss, total expenses and Incentive Allocation. Net investment loss and total expense ratios are computed based upon the weighted average of members’ capital of GAIT, excluding that of the Managing Member, for the three and six month periods ended June 30, 2014 and 2013.

9. Subsequent Events

GAIT had subscriptions of approximately $2.1 million and redemptions of approximately $3.8 million through August 14, 2014, the date through which subsequent events were evaluated by management. These amounts have not been included in the financial statements.

59

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

Forward-Looking Statements

Certain statements within this Quarterly Report on Form 10-Q may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). These statements are being made pursuant to the PSLRA, with the intention of obtaining the benefits of the “safe harbor” provisions of the PSLRA, and, other than as required by law, we assume no obligation to update or supplement such statements. Forward-looking statements are those that do not relate solely to historical facts. They include, but are not limited to, any statement that may predict, forecast, indicate or imply future results, performance, achievements or events. You can identify these statements by the use of words such as “may,” “will,” “could,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “predict,” “continue,” “further,” “seek,” “plan,” or “project” and variations of these words or comparable words or phrases of similar meaning. These forward-looking statements reflect our current beliefs and expectations with respect to future events and are based on assumptions and are subject to risks and uncertainties and other factors outside our control that may cause actual results to differ materially from those projected. We undertake no obligation to update publicly or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

(a) Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following is a discussion of our current financial position and results of operations. This discussion should be read together with our annual financial statements and the notes thereto for the fiscal year ended December 31, 2013 included in our Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on March 28, 2014. This discussion should also be read in conjunction with “Item 1: Financial Statements.” The information contained therein is essential to, and should be read in conjunction with, the following analysis. For the purposes of this filing beginning with Item 2, the term “Fund” shall include each of the Blended Strategies Portfolio of GAIF I, GAIT and the Master Funds in which they invest, unless the context implies otherwise. The Fund does not engage in the sale of goods or services. The Fund’s capital consists of capital contributions of the members, as increased or decreased by gains and losses from its investments in the Master Funds, interest, expenses and redemptions. Its only assets are its investments in the Master Funds. The Master Funds do not engage in the sale of goods or services. Their assets are comprised of the equity in their accounts with clearing brokers and OTC counterparties, in each case consisting of cash, open trade equity on derivatives and the net option premium paid or received. In the case of Graham Cash Assets LLC (“Cash Assets”), the assets consist of investments in debt obligations guaranteed by the U.S. federal government, as well as cash and cash equivalents.

For the three months ended June 30, 2014 the Blended Strategies Portfolio’s net asset value decreased by $2,390,979 or -2.8%.  The net decrease in the Blended Strategies Portfolio was attributable to total subscriptions of $5,268,000 or 6.1% and net income of $653,498 of 0.7% offset by redemptions totaling $8,312,477 or -9.6%, for the period.

For the six months ended June 30, 2014 the Blended Strategies Portfolio’s net asset value decreased by $14,978,692 or -15.1%.  The net decrease in the Blended Strategies Portfolio was attributable to total subscriptions of $7,959,289 or 8.0% offset by redemptions totaling $12,816,101 or -12.9% and a net loss of $10,121,880 or -10.2%, for the period.

 For the three months ended June 30, 2013 the Fund’s net asset value decreased by $37,119,643 or -24.8%. The net decrease in the Fund was attributable to total subscriptions of $2,945,000 or 2.0% offset by redemptions totaling $39,718,134 or -26.6% and a net loss of $346,509 or -0.2%, for the period.

For the six months ended June 30, 2013 the Fund’s net asset value decreased $55,223,073 or -32.9%. The net decrease in the Fund was attributable to total subscriptions of $5,241,886 or 3.1% and net income of $10,240,487 or 6.1% offset by redemptions totaling $70,705,446 or –42.1%, for the period.

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(i)          Results of Operations

The Fund’s success depends primarily upon the Manager’s ability to recognize and capitalize on market trends in the different and varied sectors of the global financial markets in which it trades.

2014 Summary

Three Months Ended June 30, 2014

For the three months ended June 30, 2014, the Blended Strategies Portfolio experienced net trading gains of $1,453,921. The trading results are attributable to the following sectors:

Agriculture / Softs	$	(105,551	)
Base metals		(424,218	)
Energy		278,190
Equities		1,217,786
Foreign exchange		(1,495,909	)
Long term / Intermediate rates		2,016,285
Precious metals		(345,118	)
Short term rates		312,456
	$	1,453,921

The Blended Strategies Portfolio recorded a net gain for the second quarter of 2014. The portfolio recorded gains primarily from positions in fixed income futures, particularly in Europe and, to a lesser extent, Australia and Canada. Positions in global equity index futures also led to gains, most notably in the U.S. and Europe. Smaller gains resulted from positions in energy, including crude oil and gasoline. The portfolio experienced losses in foreign exchange, primarily from trading the Japanese yen, euro and Canadian dollar versus the U.S. dollar. Smaller losses resulted from positions in metals and agricultural commodities.

Advisory, Sponsor, and Administrator’s Fees are calculated as a percentage of the Fund’s net asset value as of the end of each month and are affected by trading performance, interest income, subscriptions into and redemptions out of the Fund. Accordingly, the fluctuations in these amounts are directly correlated to the changes in net asset value which are discussed in detail herein.

For the three months ended June 30, 2014, Advisory Fees decreased by $248,097 or -39.0%, Sponsor Fees decreased by $127,266 or -31.8%, and Administrator’s Fees decreased by $17,373 or -36.7% in the Fund over the corresponding period of the preceding year. These decreases are all attributable to lower net assets of the portfolio resulting from subscriptions offset by redemptions and a net loss for the period. During the same period, interest income decreased by $16,320 or -25.2%. Interest was earned on free cash at an average annualized yield of 0.25% for the three months ended June 30, 2014 compared to 0.23% for the same period in 2013.

The Incentive Allocation is based on the New High Net Trading Profits of the portfolio. For the three months ended June 30, 2014 and 2013 the portfolio has not yet recovered previous losses. As a result, there was no Incentive Allocation for those periods.

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Six Months Ended June 30, 2014

For the six months ended June 30, 2014, the Blended Strategies Portfolio experienced net trading losses of $8,499,726. The trading results are attributable to the following sectors:

Agriculture / Softs	$	(1,655,632	)
Base metals		(463,132	)
Energy		(1,079,074	)
Equities		(1,818,482	)
Foreign exchange		(3,860,021	)
Long term / Intermediate rates		1,422,841
Precious metals		(1,147,465	)
Short term rates		101,239
	$	(8,499,726	)

The Blended Strategies Portfolio posted a net loss for the first two quarters of 2014. Losses in foreign exchange resulted primarily from trading the Japanese yen versus the U.S. dollar as well as trading various European currency crosses. Losses also resulted from trading commodities, including coffee, silver, gold, copper, crude oil and heating oil. Smaller losses resulted from positions in global equity index futures, particularly in Asia. The portfolio profited from positions in European fixed income futures, which offset a portion of the losses during the period.

Advisory, Sponsor, and Administrator’s Fees are calculated as a percentage of the Fund’s net asset value as of the end of each month and are affected by trading performance, interest income, subscriptions into and redemptions out of the Fund. Accordingly, the fluctuations in these amounts are directly correlated to the changes in net asset value which are discussed in detail herein.

For the six months ended June 30, 2014, Advisory Fees decreased by $551,350 or -41.3%, Sponsor Fees decreased by $282,209 or -34.2%, and Administrator’s Fees decreased by $39,754 or -40.0% in the Fund over the corresponding period of the preceding year. These decreases are all attributable to lower net assets of the portfolio resulting from subscriptions offset by redemptions and a net loss for the period. During the same period, interest income decreased by $45,570 or -31.9%. Interest was earned on free cash at an average annualized yield of 0.25% for the six months ended June 30, 2014 compared to 0.23% for the same period in 2013.

The Incentive Allocation is based on the New High Net Trading Profits of the portfolio. For the six months ended June 30, 2014 and 2013 the portfolio has not yet recovered previous losses. As a result, there was no Incentive Allocation for those periods.

The following table illustrates the sector distribution of the Fund’s investments in Master Funds as of June 30, 2014 based on the fair value of the underlying assets and liabilities in each master fund including both long and short positions. Positive percentages represent net assets whereas negative percentages represent a net liability.

Agriculture / Softs	(6.6	)%
Base metals	(4.8	)%
Energy	13.6	%
Equities	(2.0	)%
Foreign exchange	56.1	%
Long term / Intermediate rates	20.9	%
Precious metals	(1.1	)%
Short term rates	23.9	%
	100.0	%

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2013 Summary

Three Months Ended June 30, 2013

For the three months ended June 30, 2013, the Fund experienced net trading gains of $919,041. The trading results are attributable to the following sectors:

Agriculture / Softs	$	7,491,984
Base metals		3,973,566
Energy		(8,965,303	)
Equities		9,547,749
Foreign exchange		(9,348,416	)
Long term / intermediate rates		(22,654,953	)
Precious metals		17,890,440
Short term rates		2,983,974
	$	919,041

The Blended Strategies Portfolio recorded a net trading gain for the second quarter of 2013.  The portfolio recorded net profits from trading in commodities as profits from trading in the metals and agriculture commodities sectors more than offset losses in the energy sector. The portfolio also recorded profits in the equities sector, particularly from trading U.S. and Asian equity index futures. Losses for the quarter resulted primarily from the long term / intermediate rates sector, particularly positions in global fixed income futures.  The portfolio also recorded losses from positions in the foreign exchange sector, particularly as the U.S. dollar weakened versus European currencies.

Brokerage, Advisory, Sponsor, and Administrator’s Fees are calculated as a percentage of the Fund’s net asset value as of the end of each month and are affected by trading performance, interest income, subscriptions into and redemptions out of the Fund.  Accordingly, the fluctuations in these amounts are directly correlated to the changes in net asset value which are discussed in detail herein.

For the three months ended June 30, 2013, Advisory Fees decreased by $589,821 or -48.1%, Brokerage Fees decreased by $1,401,173 or -100.0% and Sponsor Fees decreased by $211,868 or -34.6% in the Blended Strategies Portfolio over the corresponding period of the preceding year. These decreases are all attributable to lower net assets of the portfolio resulting from subscriptions offset by redemptions and a net loss for the period. Additionally, the Brokerage Fees were eliminated in 2013 and the Advisory Fees were reduced by 0.25% for each class of units from 2% in 2012 to 1.75% in 2013. During the same period, interest income decreased by $58,224 or -47.4%. Interest was earned on free cash at an average annualized yield of 0.23% for the three months ended June 30, 2013 compared to 0.26% for the same period in 2012.

The Incentive Allocation is based on the New High Net Trading Profits of the portfolio. For the three months ended June 30, 2013 and 2012 the portfolio has not yet recovered previous losses. As a result, there was no Incentive Allocation for those periods.

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Six Months Ended June 30, 2013

For the six months ended June 30, 2013, the Fund experienced net trading gains of $13,153,349 attributable to the following sectors:

Agriculture / Softs	$	1,154,421
Base metals		707,587
Energy		(5,626,179	)
Equities		12,346,427
Foreign exchange		4,089,131
Long term / intermediate rates		(5,916,988	)
Precious metals		5,388,036
Short term rates		1,010,914
	$	13,153,349

The Blended Strategies Portfolio posted a net gain for the first half of 2013. The majority of the gains were driven by trading in the equities sector, particularly U.S., Asian and U.K equity index futures. The Portfolio also recorded gains from trading precious metals, with smaller gains in base metals and agricultural commodities. Profits were also recorded in the foreign exchange sector, most notably from trading the Japanese yen versus the U.S. dollar. Losses were experienced from trading in the short term  rates sector, mostly due to trading global bond futures. The Portfolio also experienced losses from trading energy, which offset a portion of the overall gains for the first half of 2013.

Brokerage, Advisory and Sponsor Fees are calculated as a percentage of the Fund’s net asset value as of the end of each month and are affected by trading performance, interest income, subscriptions into and redemptions out of the Fund. Accordingly, the fluctuations in these amounts are directly correlated to the changes in net asset value which are discussed in detail herein.

For the six months ended June 30, 2013, Brokerage Fees decreased by $2,917,047 or -100.0%, Advisory Fees decreased by $1,209,420 or -47.5% and Sponsor Fees decreased by $448,142 or -35.2% in the Fund over the corresponding period of the preceding year. These decreases are all attributable to lower net assets of the portfolio resulting from subscriptions and net income offset by redemptions for the period. Additionally, the Brokerage Fees were eliminated in 2013 and the Advisory Fees were reduced by 0.25% for each class of units from 2% in 2012 to 1.75% in 2013. During the same period, interest income decreased by $117,325 or -45.1%. Interest was earned on free cash at an average annualized yield of 0.23% for the six months ended June 30, 2013 compared to 0.27% for the same period in 2012.

The Incentive Allocation is based on the New High Net Trading Profits of the portfolio. For the six months ended June 30, 2013 and 2012 the portfolio has not yet recovered previous losses. As a result, there was no Incentive Allocation for those periods.

The following table illustrates the sector distribution of the Fund’s investments in Master Funds as of June 30, 2013 based on the fair value of the underlying assets and liabilities in each master fund including both long and short positions. Positive percentages represent net assets whereas negative percentages represent a net liability.

Agriculture / Softs	5.7	%
Base metals	6.0	%
Energy	(0.7	%)
Equities	(11.7	%)
Foreign exchange	(37.4	%)
Long term / intermediate rates	63.0	%
Precious metals	10.7	%
Short term rates	64.4	%
	100.0	%

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Variables Affecting Performance

The Fund’s performance is affected by net profitability resulting from the trading operations of the Master Funds, the fees charged by the Fund, and interest income earned on cash and cash equivalents. The Master Funds acquire and liquidate long and short positions in futures contracts, forwards contracts, spot currency contracts and associated derivative instruments such as options and swaps. These instruments are carried at fair value, which is heavily influenced by a wide variety of factors including but not limited to, the level and volatility of exchange rates, interest rates, equity prices, and commodity prices as well as global macro political events. These factors generate market movements affecting the fair value of these instruments and in turn the net gains and losses allocated from the Master Funds.

Advisory and Sponsor Fees are calculated based on a percentage of the Fund’s net asset value. Changes in the net assets of the Fund resulting from subscriptions, redemptions, interest and trading profits allocated from the Master Funds can therefore have a material impact on the fee expense of the Fund.

A portion of the assets of the Fund is held in cash and cash equivalents. Changes in the net assets of the Fund as well as changes in the interest rates earned on these investments can have a material impact on interest income earned.

(ii) Liquidity

There are no known demands, commitments, events or uncertainties that will result in or are reasonably likely to result in the Fund’s liquidity increasing or decreasing in any material way.

A portion of the Fund’s assets is generally held as cash or cash equivalents, which are used to margin the Fund’s investments.  It is expected that the average margin the Fund will be required to post to support the Fund’s trading may range between 10% and 30% of the Fund’s total assets, which will be segregated or secured by the futures brokers in accordance with the Commodity Exchange Act and with U.S. Commodity Futures Trading Commission regulations or be maintained on deposit with over-the-counter counterparties. In exceptional market conditions, this amount could increase. The Master Funds are subject to margin calls on a constant daily and intra-day basis, whether in connection with initiating new investment positions or as a result of changes in the value of current investment positions. These margin requirements are met through the posting of additional margin with the applicable futures or OTC clearing broker. The Manager generally expresses its margin requirements for the portfolios in terms of the aggregate of the margin requirements plus the net option premium costs for the underlying strategies as a percentage of net assets. The following table shows these amounts as of the date indicated:

June 30, 2014	14.74	%
December 31, 2013	17.61	%
June 30, 2013	13.62	%

Other than any potential market-imposed limitations on liquidity, the Fund’s assets are highly liquid and are expected to remain so. Market-imposed limitations, when they occur, can be due to limited open interest in certain futures markets or to daily price fluctuation limits, which are inherent in the Fund’s futures trading. Through June 30, 2014, the Fund experienced no meaningful periods of illiquidity in any of the markets traded by the Manager on behalf of the Fund.

(iii) Capital Resources

The Fund raises additional capital through the sale of Units and capital is increased through trading profits (if any) and interest income. The Fund may borrow money from brokers or their affiliates and other lenders. Units may be offered for sale as of the beginning, and may be redeemed as of the end, of each month. The amount of capital raised for the Fund should not have a significant impact on its operations, as the Fund has no significant capital expenditure or working capital requirements other than for monies to pay trading losses, brokerage commissions and expenses.

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The Fund participates in the speculative trading of commodity futures contracts, substantially all of which are subject to margin requirements. The minimum amount of margin required for each contract is set from time to time in response to various market factors by the respective exchanges. Further, the Fund’s brokers may require margin in excess of minimum exchange requirements. The Fund bears the risk of financial failure of the brokers through which it clears trades and maintains margin in respect of any such trades and of its counterparties for its foreign exchange and swap trades with whom it also maintains margin.

(iv) Critical Accounting Policies

Presentation – Graham Alternative Investment Fund I LLC is a series Limited Liability Company under Delaware law. The financial statements and corresponding footnotes are presented solely for the Blended Strategies Portfolio, except where otherwise noted.

Use of Estimates – The Fund’s financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and all amounts are stated in U.S. dollars except where noted. The preparation of the financial statements requires the Manager to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The Fund’s significant accounting policies are described in detail in Note 2 of the financial statements.

Fair Value Measurement – The Fund follows U.S. GAAP for fair value measurements, which defines fair value, establishes a framework for measuring fair value and requires certain disclosures about fair value measurements. U.S. GAAP uses a three-level hierarchy for fair value measurement based on the transparency and independence of inputs used in the valuation of an asset or liability as of the measurement date. The Fund reports the fair value of its investment-related assets and liabilities in accordance with the hierarchy established under U.S. GAAP.

The Fund records its investments in GAIT at fair value in accordance with U.S. GAAP. In determining its net asset value, GAIT records its investments in Master Funds at fair value in accordance with U.S. GAAP. The Fund records its proportionate share of GAIT’s investment income and loss, expenses, fees, and realized and unrealized gains and losses on a monthly basis. Purchases and sales of units in GAIT are recorded on a trade date basis. The accounting policies of GAIT are described in its attached financial statements.

The Master Funds record all their financial instruments at fair value, which is derived in accordance with U.S. GAAP. Unrealized gains and losses from these instruments are recorded based on changes in their fair value. Realized gains and losses are recorded when the positions are closed. All unrealized and realized gains and losses related to derivative financial instruments are included in net gain (loss) on investments in the Master Funds’ statements of operations.

Investment Company – The Fund is an investment company and applies specialized accounting guidance as outlined in Financial Accounting Standards Board Accounting Standards Update 2013-08, Financial Services – Investment Companies (Topic 946), Amendments to the Scope, Measurement, and Disclosure Requirements. The Manager has evaluated this guidance and has determined the Fund meets the criteria to be classified as an investment company.

Cash Assets – GAIT invests a portion of its excess liquidity in Cash Assets, an entity for which the Manager is also the sole investment advisor. The financial information of Cash Assets is included in the notes to the Financial Statements of GAIT.

Income Taxes – No provision for income taxes has been made in the Fund’s financial statements, as each member is responsible for reporting income or loss based upon the member’s respective share of the Fund’s revenues and expenses for income tax purposes.

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U.S. GAAP provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. U.S. GAAP requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet a more-likely-than-not threshold would be recorded as a tax expense in the current year.  The Manager has evaluated the Fund’s tax positions and has concluded that there are no significant tax positions requiring recognition, measurement or disclosure in the financial statements. The Manager is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax expense will change materially in the next twelve months.

(v)           Off-Balance Sheet Arrangements

The Fund does not engage in off-balance sheet arrangements with other entities.

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

No disclosure is required hereunder as the Fund is a “smaller reporting company”, as defined in Item 10(f)(1) of Regulation S-K.

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Item 4. Controls and Procedures

Evaluation of Disclosure Control and Procedures

The Advisor’s Chief Operating Officer and Chief Financial Officer have evaluated the effectiveness of the design and operation of the Fund’s disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as of June 30, 2014. Based on that evaluation, the Advisor’s Chief Operating Officer and Chief Financial Officer concluded that the Fund’s disclosure controls and procedures were effective as of June 30, 2014, to ensure that information required to be disclosed by the Fund in reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that such information is accumulated and made known to the Manager and the Fund’s management, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes to the Fund’s internal controls over financial reporting during the second quarter of 2014 that have materially affected, or are reasonably likely to materially affect, the Fund’s internal controls over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

None

Item 1A. Risk Factors

Not Required

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

For the three months ended June 30, 2014, the Fund issued 58,441.914 Units in exchange for $5,268,000 with respect to the Blended Strategies Portfolio, in each case in a transaction that was not registered under the Securities Act of 1933, as amended (the “Act”). The Units were issued in reliance upon applicable exemptions from registration under Section 4(a)(2) of the Act and Rule 506 of Regulation D promulgated thereunder. All purchasers of the Units were accredited investors, as that term is defined under Rule 501 of Regulation D.

The following chart sets forth the purchases of Units of the Fund.

	Blended Strategies Portfolio
	Total
	Number of
Period (as of)	Units Issued
April 1, 2014	28,008.826
May 1, 2014	21,858.056
June 1, 2014	8,575.032

Item 3. Defaults Upon Senior Securities – None

Item 4. Mine Safety Disclosures – None

Item 5. Other Information – None

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Item 6. Exhibits

** 3.1	Certificate of Formation of Graham Alternative Investment Fund I LLC
* 3.2	Amendment to Certificate of Formation of Graham Alternative Investment Fund I LLC
* 4.1	Amended and Restated Limited Liability Company Agreement of Graham Alternative Investment Fund I LLC
** 10.1	Form of Subscription Agreement
** 10.2	Form of Placement Agreement
*** 10.10	Safekeeping Account Agreement between Graham Cash Assets LLC and Bank of America, N.A.
**** 31.1	Rule 13a-14(a)/15d-14(a) Certification (Certification of Chief Operating Officer)
**** 31.2	Rule 13a-14(a)/15d-14(a) Certification (Certification of Chief Financial Officer)
**** 32.1	Section 1350 Certification (Certification of Chief Operating Officer and Chief Financial Officer)

* Incorporated by reference to the Fund’s Form 8-K previously filed on April 11, 2013

** Incorporated by reference to the Fund’s Form 10 previously filed on April 30, 2010

*** Incorporated by reference to the Fund’s Form 10/A previously filed on September 3, 2010

**** Filed herewith

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated:  August 14, 2014	GRAHAM ALTERNATIVE INVESTMENT FUND I LLC
	BLENDED STRATEGIES PORTFOLIO
	By:	GRAHAM CAPITAL MANAGEMENT, L.P.
		its Manager
		By:	/s/ Paul Sedlack
			Paul Sedlack, Chief Operating Officer
		By:	/s/ Brian Douglas
			Brian Douglas, Chief Financial Officer

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