3.	Investments

a.	Spectrum Currency’s Investments in Affiliated Underlying Funds

On November 1, 2012, the assets allocated to The Cambridge Strategy (Asset Management) Limited (“Cambridge”) for trading were invested in Cambridge Master Fund L.P. (“Cambridge Master Fund”), a limited partnership organized under the partnership laws of the State of Delaware. Cambridge Master Fund was formed to permit accounts managed now and in the future by Cambridge using Cambridge Asian Markets Alpha Programme and, from October 1, 2013, Cambridge Emerging Markets Alpha Programme, to invest together in one trading vehicle. The General Partner is also the general partner of Cambridge Master Fund. Individual and pooled accounts currently managed by Cambridge, including Spectrum Currency, are permitted to be limited partners of Cambridge Master Fund. The General Partner and Cambridge believe that trading through this structure should provide efficiency and economy in the trading process.

Effective December 9, 2014, Cambridge, in consultation with the General Partner, agreed to increase the amount of leverage applied to the assets of Cambridge Master Fund allocated to Cambridge by the General Partner to 2.0 times the assets of the Cambridge Master Fund allocated to Cambridge by the General Partner and traded pursuant to Cambridge’s Asian Markets Alpha Programme and Emerging Markets Alpha Programme.

On January 1, 2012, the assets allocated to Krom River Investment Management (Cayman) Limited and Krom River Trading AG (together, and each separately, “Krom River”) for trading were invested in KR Master Fund L.P. (“KR Master Fund”), a limited partnership organized under the partnership laws of the State of Delaware. KR Master Fund was formed in order to permit commodity pools managed now or in the future by Krom River using the Commodity Program at 150% Leverage, a fundamental and technical trading system, to invest together in one trading vehicle.

Effective December 31, 2014, Spectrum Currency fully redeemed its investment from KR Master Fund. In addition, Krom River no longer acts as commodity trading advisor to Spectrum Currency. Effective on or about January 1, 2015, Spectrum Currency reallocated the assets allocated to Krom River to the existing commodity trading advisor of Spectrum Currency.

Spectrum Currency carries, and carried, its investment in Cambridge Master Fund and KR Master Fund, respectively, at fair value based on Spectrum Currency’s (1) respective net contributions to Cambridge Master Fund and KR Master Fund and (2) its respective allocated share of the undistributed profits and losses, including realized gains or losses and net change in unrealized gains or losses, of Cambridge Master Fund and KR Master Fund. Spectrum Currency invests in, and invested in, Cambridge Master Fund and KR Master Fund, respectively, through a “master-feeder” structure. Spectrum Currency’s pro-rata share of the results of Cambridge Master Fund’s/KR Master Fund’s trading activities are shown in Spectrum Currency’s Statements of Income and Expenses.

The financial statements of Cambridge Master Fund, including its condensed schedules of investments, are included elsewhere in this report and should be read in conjunction with Spectrum Currency’s financial statements.

Summarized information for Spectrum Currency, reflecting the total assets, liabilities and capital of Cambridge Master Fund as of December 31, 2015 and 2014 and KR Master Fund as of December 31, 2014 (prior to its termination), is shown in the following tables.


	December 31, 2015
	Total Assets		Total Liabilities		Total Capital
Cambridge Master Fund	$	73,013,433	$	13,303,511	$	59,709,922

	December 31, 2014
	Total Assets		Total Liabilities		Total Capital
KR Master Fund	$	12,415,386	$	12,415,386	$	-
Cambridge Master Fund		39,046,641		48,456		38,998,185

Summarized information for Spectrum Currency’s investment in, and operations of KR Master Fund and Cambridge Master Fund as of and for the years ended December 31, 2015 and 2014, is as follows:

December 31, 2015

% of
Spectrum
Currency
Net Assets

Fair
Value

Partnership’s
Pro-rata
Net Income
(Loss)

Investment
Objective

Redemption
Permitted

Cambridge Master Fund

102.0

13,537,489

3,223,223

Commodity
Portfolio

Monthly

December 31, 2014

% of
Spectrum
Currency
Net Assets

Fair
Value

Partnership’s
Pro-rata
Net Income
(Loss)

Investment
Objective

Redemption
Permitted

Cambridge Master Fund

89.3

12,289,754

2,777,719

Commodity
Portfolio

Monthly

KR Master Fund

156,507

Commodity
Portfolio

Monthly

Generally, a limited partner in Cambridge Master Fund and KR Master Fund (prior to its termination on December 31, 2014) withdraws all or part of its capital contribution and undistributed profits, if any, from Cambridge Master Fund and KR Master Fund as of the end of any month (the “Redemption Date”) after a request has been made to the General Partner at least three days in advance of the Redemption Date. Such withdrawals are classified as a liability when the limited partner elects to redeem and informs Cambridge Master Fund and KR Master Fund. However, a limited partner may request a withdrawal as of the end of any day if such request is received by the General Partner at least three days in advance of the proposed withdrawal day.

Cambridge Master Fund does not, and KR Master Fund did not, pay any management or incentive fees related to Spectrum Currency’s investments. These fees are accrued and paid by Spectrum Currency. The General Partner reimburses Cambridge Master Fund and reimbursed KR Master Fund for all brokerage related fees borne by Cambridge Master Fund and KR Master Fund (prior to its termination on December 31, 2014) on behalf of Spectrum Currency’s investments.

As of December 31, 2015 and 2014, Spectrum Currency owned approximately 22.67% and 31.51% of Cambridge Master Fund, respectively. It is Spectrum Currency’s intention to continue to invest in Cambridge Master Fund. The performance of Spectrum Currency is directly affected by the performance of Cambridge Master Fund and (prior to its termination on December 31, 2014) KR Master Fund.

The tables below represent summarized income statement information for Cambridge Master Fund for the years ended December 31, 2015, 2014 and 2013 and KR Master Fund for the years ended December 31, 2014 and 2013, to meet the requirements of Regulation S-X Rule 3-09:


December 31, 2015	Investment Income (Loss)		Net Investment Income (Loss)		Total Trading Results		Net Income (Loss)

Cambridge Master Fund	$	12,853	$	(86,844)	$	9,062,618	$	8,975,774

December 31, 2014	Investment Income (Loss)		Net Investment Income (Loss)		Total Trading Results		Net Income (loss)

Cambridge Master Fund	$	6,641	$	(154,743)	$	9,610,031	$	9,455,288
KR Master Fund		3,785		(159,030)		893,723		734,693

December 31, 2013	Investment Income (Loss)		Net Investment Income (Loss)		Total Trading Results		Net Income (loss)

Cambridge Master Fund	$	9,306	$	(66,302)	$	3,166,855	$	3,100,553
KR Master Fund		25,093		(281,565)		(5,175,049)		(5,456,614)

b.	Spectrum Strategic’s Investments in Affiliated Underlying Funds

Effective December 1, 2011, the assets allocated by Spectrum Strategic to Aventis Asset Management, LLC (“Aventis”) and PGR Capital L.P. (“PGR”) for trading were invested in MB Master Fund L.P. (“MB Master Fund”), a limited partnership organized under the partnership laws of the State of Delaware, and PGR Master Fund L.P. (“PGR Master Fund”), a limited partnership organized under the partnership laws of the State of Delaware, respectively. Spectrum Strategic’s investment in MB Master Fund represents approximately 36.3% and 9.8%, and investment in PGR Master Fund represents approximately 50.7% and 14.8%, respectively, of the net asset value of Spectrum Strategic as of December 31, 2015 and 2014, respectively. The General Partner is also the general partner of each of MB Master Fund and PGR Master Fund. Individual and pooled accounts currently managed by each of Aventis and PGR, including Spectrum Strategic, are permitted to be limited partners of MB Master Fund and PGR Master Fund, respectively. The General Partner, Aventis and PGR believe that trading through these structures should promote efficiency and economy in the trading process.

Effective January 1, 2008, the assets allocated by Spectrum Strategic to Blenheim Capital Management, LLC (“Blenheim”) for trading were invested in Morgan Stanley Smith Barney BHM I, LLC (“BHM I, LLC”), a limited liability company organized under the limited liability company laws of the State of Delaware. Spectrum Strategic’s investment in BHM I, LLC represents approximately 15.9% and 79.1% of the net asset value of Spectrum Strategic at December 31, 2015 and 2014, respectively. The General Partner is also the managing member of BHM I, LLC. Individual and pooled accounts currently managed by Blenheim, including Spectrum Strategic, are permitted to be non-managing members of BHM I, LLC. Ceres and Blenheim believe that trading through this structure should promote efficiency and economy in the trading process. MB Master Fund, PGR Master Fund and BHM I, LLC are collectively referred to as the “Funds”.

Spectrum Strategic carries its investment in the Funds at fair value based on Spectrum Strategic’s (1) respective net contribution to each Fund and (2) its respective allocated share of the undistributed profits and losses, including realized gains or losses and net change in unrealized gains or losses, of each Fund. ASC 820, “Fair Value Measurement,” as amended, permits, as a practical expedient, Spectrum Strategic to measure the fair value of its investments in the Funds on the basis of the net asset value per share (or its equivalent) if the net asset value per share of such investments is calculated in a manner consistent with the measurement principles of Topic 946, “Financial Services – Investment Companies” as of Spectrum Strategic’s reporting date.

The financial statements of Spectrum Strategic have been prepared using the “Fund of Funds” approach, and accordingly, Spectrum Strategic’s pro-rata share of all revenue and expenses of the Funds is reflected as net change in unrealized gains (losses) on investment in Funds in Spectrum Strategic’s Statements of Income and Expenses. Contributions to and withdrawals from the Funds are recorded on the effective date. With respect to its investments in PGR Master Fund and MB Master Fund, Spectrum Strategic records a realized gain or loss on such investments as the difference between the redemption proceeds and the related cost of such investment. In determining the cost of such investments, Spectrum Strategic generally uses the average cost method. With respect to Spectrum Strategic’s investment in BHM I, LLC, Spectrum Strategic recorded redemptions received from BHM I, LLC as a reduction of cost basis and thereafter the redemptions received in excess of cost are recorded as a realized gain.

Summarized information for Spectrum Strategic’s investment in, and operations of BHM I, LLC, PGR Master Fund and MB Master Fund, as of and for the years ended December 31, 2015 and 2014, is as follows:

December 31, 2015


Investment	% of Spectrum Strategic Net Assets		Fair Value		Partnership’s Pro-rata Net Income (Loss)		Management Fees		Incentive Fees		Investment Objective	Redemptions Permitted

BHM I, LLC		15.9	$	3,894,858	$	(3,328,835)	$	284,061	$	-	Commodity Portfolio	Monthly

PGR Master Fund		50.7		12,442,510		104,616		n/a		n/a	Commodity Portfolio	Monthly

MB Master Fund		36.3		8,922,695		(536,287)		n/a		n/a	Commodity Portfolio	Monthly

December 31, 2014

% of

Partnership’s

Spectrum

Pro-rata

Strategic

Fair

Net Income

Management

Incentive

Investment

Redemptions

Investment

Net Assets

Value

(Loss)

Fees

Objective

Permitted

BHM I, LLC

79.1

28,236,607

1,881,303

619,883

Commodity
Portfolio

Monthly

PGR Master Fund

14.8

5,291,425

1,226,334

n/a

Commodity
Portfolio

Monthly

MB Master Fund

9.8

3,502,992

68,634

n/a

Commodity
Portfolio

Monthly

Generally, a limited partner or non-managing member, as applicable, in the Funds withdraws all or part of its capital contribution and undistributed profits, if any, from the Funds as of the Redemption Date after a request has been made to the General Partner/managing member at least three days in advance of the Redemption Date. Such withdrawals are classified as a liability when the limited partner or non-managing member elects to redeem and informs the Funds. However, a limited partner or non-managing member may request a withdrawal as of the end of any day if such request is received by the General Partner/managing member at least three days in advance of the proposed withdrawal day.

Spectrum Strategic does not directly pay PGR Master Fund and MB Master Fund and, prior to March 1, 2014, did not directly pay BHM I, LLC, for its pro-rata portion of management or incentive fees. Such fees are directly paid by Spectrum Strategic to such trading advisors.

Effective March 1, 2014, Spectrum Strategic directly pays BHM I, LLC for its pro-rata portion of incentive and management fees.

The tables below represent summarized Income Statement information for BHM I, LLC, PGR Master Fund and MB Master Fund for the years ended December 31, 2015, 2014 and 2013, respectively, to meet the requirements of Regulation S-X Rule 3-09:


			Net
	Investment		Investment		Total		Net
	Income		Income		Trading		Income
December 31, 2015	(Loss)		(Loss)		Results		(Loss)

BHM I, LLC	$	-	$	(3,875,220)	$	(31,114,859)	$	(34,990,079)
PGR Master Fund		4,505		(63,701)		362,309		298,608
MB Master Fund		5,090		(3,544,946)		(5,123,213)		(8,668,159)

			Net
	Investment		Investment		Total		Net
	Income		Income		Trading		Income
December 31, 2014	(Loss)		(Loss)		Results		(Loss)

BHM I, LLC	$	-	$	(6,707,413)	$	11,593,435	$	4,886,022
PGR Master Fund		1,816		(92,435)		2,790,730		2,698,295
MB Master Fund		41,225		(4,655,303)		7,309,353		2,654,050


			Net
	Investment		Investment		Total		Net
	Income		Income		Trading		Income
December 31, 2013	(Loss)		(Loss)		Results		(Loss)

BHM I, LLC	$	2,258	$	(6,908,153)	$	10,136,795	$	3,228,642
PGR Master Fund		12,279		(134,731)		8,544,764		8,410,033
MB Master Fund		92,224		(5,087,972)		14,221,096		9,133,124

c. Spectrum Technical’s Investments in Affiliated Underlying Funds

On January 1, 2015, the assets allocated by Spectrum Technical to SECOR Capital Advisors, L.P. (“SECOR”) were invested in SECOR Master Fund L.P. (“SECOR Master Fund”), a limited partnership organized under the partnership laws of the State of Delaware. SECOR Master Fund permits accounts managed now or in the future by SECOR using a variation of the program traded by SECOR Alpha Master Program L.P., a proprietary, systematic trading program, to invest together in one trading vehicle. The General Partner is also the general partner of SECOR Master Fund. Individual and pooled accounts currently managed by SECOR, including Spectrum Technical, are permitted to be limited partners of SECOR Master Fund. The General Partner and SECOR believe that trading through this structure should promote efficiency and economy in the trading process.

On December 1, 2011, the assets allocated by Spectrum Technical to Blackwater Capital Management LLC (“Blackwater”) were invested in Blackwater Master Fund L.P. (“Blackwater Master Fund”), a limited partnership organized under the partnership laws of the State of Delaware. Blackwater Master Fund permitted accounts managed by Blackwater to invest together in one trading vehicle. Effective September 30, 2015, Blackwater Master Fund terminated operations and Spectrum Technical redeemed its pre-liquidation interest in Blackwater Master Fund in October 2015.

Spectrum Technical carries, and carried, its investment in SECOR Master Fund and Blackwater Master Fund, respectively, at fair value based on Spectrum Technical’s (1) respective net contributions to SECOR Master Fund and Blackwater Master Fund and (2) its respective allocated share of the undistributed profits and losses, including realized gains or losses and net change in unrealized gains or losses, of SECOR Master Fund and Blackwater Master Fund. Spectrum Technical invests in, and invested in, SECOR Master Fund and Blackwater Master Fund, respectively, through a “master-feeder” structure. Spectrum Technical’s pro-rata share of the results of SECOR Master Fund’s/Blackwater Master Fund’s trading activities are shown in Spectrum Technical’s Statements of Income and Expenses.

Summarized information for Spectrum Technical, reflecting the total assets, liabilities and capital of SECOR Master Fund as of December 31, 2015 and Blackwater Master Fund as of December 31, 2014, is shown in the following tables:


	December 31, 2015
	Total Assets		Total Liabilities		Total Capital
SECOR Master Fund	$	50,962,450	$	464,928	$	50,497,522

	December 31, 2014
	Total Assets		Total Liabilities		Total Capital
Blackwater Master Fund	$	24,973,305	$	43,208	$	24,930,097

Summarized information for Spectrum Technical’s investment in, and operations of Blackwater Master Fund and SECOR Master Fund as of and for the years ended December 31, 2015 and 2014 is shown in the following tables:

% of

Partnership’s

Spectrum

Pro-rata

Technical

Fair

Net Income

Investment

Redemption

December 31, 2015

Net Assets

Value

(Loss)

Objective

Permitted

Blackwater Master Fund ⁽¹⁾

(26,849)

Commodity
Portfolio

Monthly

SECOR Master Fund

30.45

27,517,405

855,249

Commodity
Portfolio

Monthly

% of

Partnership’s

Spectrum

Pro-rata

Technical

Fair

Net Income

Investment

Redemption

December 31, 2014

Net Assets

Value

(Loss)

Objective

Permitted

Blackwater Master Fund

15.5

16,901,955

(138,777)

Commodity
Portfolio

Monthly

⁽¹⁾ From January 1, 2015 through September 30, 2015, the date Spectrum Technical fully redeemed its interest in Blackwater Master Fund.

Generally, a limited partner in SECOR Master Fund and Blackwater Master Fund (prior to its termination on September 30, 2015) withdraws all or part of its capital contribution and undistributed profits, if any, from SECOR Master Fund and Blackwater Master Fund as of the Redemption Date after a request has been made to the General Partner at least three days in advance of the Redemption Date. Such withdrawals are classified as a liability when the limited partner elects to redeem and informs SECOR Master Fund and Blackwater Master Fund. However, a limited partner may request a withdrawal as of the end of any day if such request is received by the General Partner at least three days in advance of the proposed withdrawal day.

SECOR Master Fund does not, and Blackwater Master did not, pay any management or incentive fees related to Spectrum Technical’s investment in the funds. These fees are accrued and paid by Spectrum Technical. The General Partner reimburses SECOR Master Fund, and reimbursed Blackwater Master Fund (prior to its termination on September 30, 2015), for all brokerage related fees borne by SECOR Master Fund and Blackwater Master Fund on behalf of Spectrum Technical’s investment.

As of December 31, 2015, Spectrum Technical owned approximately 54.4% of SECOR Master Fund. As of December 31, 2014, Spectrum Technical owned approximately 67.8% of Blackwater Master Fund. It is Spectrum Technical’s intention to continue to invest in SECOR Master Fund. The performance of Spectrum Technical is directly affected by, and was directly affected by, the performance of SECOR Master Fund and Blackwater Master Fund, respectively.

The tables below represent summarized income statement information for Blackwater Master Fund for the period from January 1, 2015 through September 30, 2015 (termination of operations of Blackwater Master Fund), and for the years ended December 31, 2014 and 2013 and for SECOR Master Fund for the year ended December 31, 2015, respectively, to meet the requirements of Regulation S-X Rule 3-09:


			Net		Total		Net
	Investment		Investment		Trading		Income
December 31, 2015	Income (Loss)		Income (Loss)		Results		(Loss)

Blackwater Master Fund	$	1,120	$	(39,750)	$	87,198	$	47,448
SECOR Master Fund		12,458		(396,486)		2,605,734		2,209,248

			Net		Total		Net
	Investment		Investment		Trading		Income
December 31, 2014	Income (Loss)		Income (Loss)		Results		(Loss)

Blackwater Master Fund	$	7,048	$	(72,105)	$	(545,462)	$	(617,567)

			Net		Total		Net
	Investment		Investment		Trading		Income
December 31, 2013	Income (Loss)		Income (Loss)		Results		(Loss)

Blackwater Master Fund	$	28,776	$	(89,483)	$	886,883	$	797,400