Fair Value Measurements and Disclosures

12 Months Ended

Dec. 31, 2014

Fair Value Measurements and Disclosures [Abstract]

Fair Value Measurements and Disclosures

8.  Fair Value Measurements and Disclosures

Financial instruments are carried at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Assets and liabilities carried at fair value are classified and disclosed in the following three levels: Level 1 — unadjusted quoted market prices in active markets for identical assets and liabilities; Level 2 — inputs other than unadjusted quoted market prices that are observable for the asset or liability, either directly or indirectly (including unadjusted quoted market prices for similar investments, interest rates and credit risk); and Level 3 — unobservable inputs for the asset or liability (including the Partnerships’ own assumptions used in determining the fair value of investments).

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Partnerships’ assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and consideration of factors specific to the investment.

The Partnerships’ assets and liabilities measured at fair value on a recurring basis are summarized in the following tables by the type of inputs applicable to the fair value measurements.

Spectrum Currency

December 31, 2014	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	$		$		$		$
Assets
Investment in Cambridge Master Fund		–		12,289,754		n/a		12,289,754
Total Investments		–		12,289,754		n/a		12,289,754

December 31, 2013	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	$		$		$		$
Assets
Investment in Cambridge Master Fund		–		11,299,138		n/a		11,299,138
Investment in KR Master Fund		–		7,290,317		n/a		7,290,317
Total Investments		–		18,589,455		n/a		18,589,455

* This amount comprises of “Investment in Cambridge Master Fund and KR Master Fund” on the Statements of Financial Condition.

During the twelve months ended December 31, 2014 and 2013, there were no Level 3 assets and liabilities, and there were no transfers of assets or liabilities between Level 1 and Level 2 for Spectrum Currency.

Spectrum Select

December 31, 2014	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	$		$		$		$
Assets
Futures		7,228,527		–		n/a		7,228,527
Forwards		1,699,736		646,289		n/a		2,346,025
Total Assets		8,928,263		646,289		n/a		9,574,552
Liabilities
Futures		1,519,724		–		n/a		1,519,724
Forwards		1,441,911		150,435		n/a		1,592,346
Total Liabilities		2,961,635		150,435		n/a		3,112,070
Unrealized currency loss								(669,947	)
*Net fair value		5,966,628		495,854		n/a		5,792,535

December 31, 2013	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	$		$		$		$
Assets
Futures		9,894,085		–		n/a		9,894,085
Forwards		–		528,063		n/a		528,063
Total Assets		9,894,085		528,063		n/a		10,422,148
Liabilities
Futures		3,011,012		–		n/a		3,011,012
Forwards		–		69,127		n/a		69,127
Total Liabilities		3,011,012		69,127		n/a		3,080,139
Unrealized currency loss								(689,577	)
*Net fair value		6,883,073		458,936		n/a		6,652,432

* This amount comprises of the “Total net unrealized gain on open contracts” on the Statements of Financial Condition.

During the twelve months ended December 31, 2014 and 2013, there were no Level 3 assets and liabilities, and there were no transfers of assets or liabilities between Level 1 and Level 2 for Spectrum Select.

Spectrum Strategic

December 31, 2014	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	$		$		$		$
Assets
Investment in BHM I, LLC		–		28,236,607		n/a		28,236,607
Investment in PGR Master Fund		–		5,291,425		n/a		5,291,425
Investment in MB Master Fund		–		3,502,992		n/a		3,502,992
Total Investments		–		37,031,024		n/a		37,031,024

December 31, 2013	Unadjusted Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	$		$		$		$
Assets
Investment in BHM I, LLC		–		46,985,018		n/a		46,985,018
Investment in PGR Master Fund		–		3,327,454		n/a		3,327,454
Investment in MB Master Fund		–		4,183,031		n/a		4,183,031
Total Investments		–		54,495,503		n/a		54,495,503

During the twelve months ended December 31, 2014 and 2013, there were no Level 3 assets and liabilities, and there were no transfers of assets or liabilities between Level 1 and Level 2 for Spectrum Strategic.

Spectrum Technical

December 31, 2014	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	$		$		$		$
Assets
Investment in Blackwater Master Fund		–		16,901,955		n/a		16,901,955
Futures		4,533,559		–		n/a		4,533,559
Forwards		274,957		1,736,938		n/a		2,011,895
Total Assets		4,808,516		18,638,893		n/a		23,447,409
Liabilities
Futures		797,767		–		n/a		797,767
Forwards		372,992		1,304,228		n/a		1,677,220
Total Liabilities		1,170,759		1,304,228		n/a		2,474,987
Unrealized currency loss								(3,465,597	)
*Net fair value		3,637,757		17,334,665		n/a		17,506,825

December 31, 2013	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	$		$		$		$
Assets
Investment in Blackwater Master Fund		–		33,548,272		n/a		33,548,272
Futures		5,404,721		–		n/a		5,404,721
Forwards		–		728,738		n/a		728,738
Total Assets		5,404,721		34,277,010		n/a		39,681,731
Liabilities
Futures		1,139,524		–		n/a		1,139,524
Forwards		–		320,514		n/a		320,514
Total Liabilities		1,139,524		320,514		n/a		1,460,038
Unrealized currency loss								(3,447,831	)
*Net fair value		4,265,197		33,956,496		n/a		34,773,862

* This amount comprises of the “Total net unrealized gain on open contracts” and “Investment in Blackwater Master Fund” on the Statements of Financial Condition.

During the twelve months ended December 31, 2014 and 2013, there were no Level 3 assets and liabilities, and there were no transfers of assets or liabilities between Level 1 and Level 2 for Spectrum Technical.