Derivatives and Hedging

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging

6. Derivatives and Hedging

The Partnership’s objective is to profit from speculative trading in Futures Interests. Therefore, the Trading Advisors for the Partnership will take speculative positions in Futures Interests where they feel the best profit opportunities exist for their trading strategies. As such, the average number of contracts outstanding in absolute quantities (the total of the open long and open short positions) has been presented as a part of the volume disclosure, as position direction is not an indicative factor in such volume disclosures. With regard to foreign currency forward trades, each notional quantity amount has been converted to an equivalent contract based upon an industry convention.

The following tables summarize the gross and net amounts recognized relating to the assets and liabilities of the Partnership’s derivative instruments and transactions eligible for offset subject to master netting agreements or similar agreements as of June 30, 2015, and December 31, 2014, respectively.

Offsetting of Derivative Assets and Liabilities as of June 30, 2015:

										Gross amounts not offset in the Statements of Financial Condition
	Gross Amounts Recognized			Gross Amounts Offset in the Statements of Financial Condition			Net Amounts Presented in the Statements of Financial Condition			Financial Instruments		Cash Collateral Received/Pledged **		Net Amount
	$			$			$			$		$		$
Assets
Futures		3,530,627			(3,530,627	)		—			—		—		—
Forwards		2,181,285			(2,181,285	)		—			—		—		—
Total Assets		5,711,912			(5,711,912	)		—			—		—		—
Liabilities
Futures		(5,123,351	)		3,530,627			(1,592,724	)*		—		—		(1,592,724	)
Forwards		(2,970,049	)		2,181,285			(788,764	)*		—		—		(788,764	)
Total Liabilities		(8,093,400	)		5,711,912			(2,381,488	)		—		—		(2,381,488	)
Unrealized currency loss								(776,400	)*						(776,400	)
Total net unrealized loss on open contracts								(3,157,888	)						(3,157,888	)**

Offsetting of Derivative Assets and Liabilities as of December 31, 2014:

										Gross amounts not offset in the Statements of Financial Condition
	Gross Amounts Recognized			Gross Amounts Offset in the Statements of Financial Condition			Net Amounts Presented in the Statements of Financial Condition			Financial Instruments		Cash Collateral Received/Pledged **		Net Amount
	$			$			$			$		$		$
Assets
Futures		7,228,527			(1,519,724	)		5,708,803	*		—		—		5,708,803
Forwards		2,346,025			(1,592,346	)		753,679	*		—		—		753,679
Total Assets		9,574,552			(3,112,070	)		6,462,482			—		—		6,462,482
Liabilities
Futures		(1,519,724	)		1,519,724			—			—		—		—
Forwards		(1,592,346	)		1,592,346			—			—		—		—
Total Liabilities		(3,112,070	)		3,112,070			—			—		—		—
Unrealized currency loss								(669,947	)*						(669,947	)
Total net unrealized gain on open contracts								5,792,535							5,792,535	**

* Included as a component of “Net unrealized gain (loss) on open contracts” on the Statements of Financial Condition.

** In the event of default by the Partnership, MS&Co., the Partnership’s commodity futures broker and the sole counterparty to the Partnership’s off exchange-traded contracts, as applicable, has the right to offset the Partnership’s obligation with the Partnership’s cash held by MS&Co., thereby minimizing MS&Co.’s risk of loss. There is no collateral posted by MS&Co. and as such, in the event of default by MS&Co., the Partnership is exposed to the amount shown on the Statements of Financial Condition. In the case of exchange-traded contracts, the Partnership’s exposure to counterparty risk may be reduced since the exchange’s clearinghouse interposes its credit between buyer and seller and the clearinghouse’s guarantee fund may be available in the event of a default.

The effect of Trading Activities on the Statements of Financial Condition as of June 30, 2015:

Futures and Forward Contracts	Long Unrealized Gain		Long Unrealized Loss			Short Unrealized Gain		Short Unrealized Loss			Net Unrealized Gain/(Loss)			Average number of contracts outstanding for the six months (absolute quantity)
	$		$			$		$			$
Commodity		1,287,407		(3,082,880	)		2,165,937		(3,184,827	)		(2,814,363	)		3,759
Equity		72,554		(726,363	)		301,475		(9,158	)		(361,492	)		931
Foreign currency		759,680		(379,438	)		595,715		(405,935	)		570,022			1,055
Interest rate		388,724		(115,803	)		140,420		(188,996	)		224,345			3,985
Total		2,508,365		(4,304,484	)		3,203,547		(3,788,916	)		(2,381,488	)
Unrealized currency loss												(776,400	)
Net unrealized loss on open contracts												(3,157,888	)

The effect of Trading Activities on the Statements of Financial Condition as of December 31, 2014:

Futures and Forward Contracts	Long Unrealized Gain		Long Unrealized Loss			Short Unrealized Gain		Short Unrealized Loss			Net Unrealized Gain/(Loss)			Average number of contracts outstanding for the year (absolute quantity)
	$		$			$		$			$
Commodity		282,336		(2,191,868	)		4,475,726		(216,133	)		2,350,061			4,302
Equity		515,619		(278,910	)		7,778		(105,700	)		138,787			1,107
Foreign currency		161,381		(109,346	)		1,083,928		(92,427	)		1,043,536			1,707
Interest rate		3,045,534		(116,781	)		2,250		(905	)		2,930,098			4,621
Total		4,004,870		(2,696,905	)		5,569,682		(415,165	)		6,462,482
Unrealized currency loss												(669,947	)
Total net unrealized gain on open contracts												5,792,535

The following tables summarize the net trading results of the Partnership for the three and six months ended June 30, 2015 and 2014, respectively.

The effect of Trading Activities on the Statements of Income and Expenses for the Three and Six Months Ended June 30, 2015 included in Total Trading Results:

	For the Three Months Ended June 30, 2015			For the Six Months Ended June 30, 2015
Type of Instrument	$			$
Commodity		(5,466,092	)		(6,276,242	)
Equity		189,855			2,017,844
Foreign currency		(589,326	)		2,795,696
Interest rate		(3,575,596	)		240,960
Unrealized currency gain/(loss)		14,002			(106,452	)
Total		(9,427,157	)		(1,328,194	)

Line Items on the Statements of Income and Expenses for the Three and Six Months Ended June 30, 2015:

	For the Three Months Ended June 30, 2015			For the Six Months Ended June 30, 2015
Trading Results	$			$
Net realized		(4,248,789	)		7,622,229
Net change in unrealized		(5,178,368	)		(8,950,423	)
Total Trading Results		(9,427,157	)		(1,328,194	)

The Effect of Trading Activities on the Statements of Income and Expenses for the Three and Six Months Ended June 30, 2014 included in Total Trading Results:

	For the Three Months Ended June 30, 2014			For the Six Months Ended June 30, 2014
Type of Instrument	$			$
Commodity		698,027			165,054
Equity		2,333,672			(1,912,823	)
Foreign currency		(997,847	)		(3,011,764	)
Interest rate		3,379,639			1,422,335
Unrealized currency gain/(loss)		(10,593	)		30,325
Total		5,402,898			(3,306,873	)

Line Items on the Statements of Income and Expenses for the Three and Six Months Ended June 30, 2014:

	For the Three Months Ended June 30, 2014		For the Six Months Ended June 30, 2014
Trading Results	$		$
Net realized		2,830,671		(2,410,188	)
Net change in unrealized		2,572,227		(896,685	)
Total Trading Results		5,402,898		(3,306,873	)