10-Q

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, 2016 or

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

For the transition period from                     to                     

Commission File Number: 000-19511

MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

(Exact name of registrant as specified in its charter)

Delaware	13-3619290
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
Ceres Managed Futures LLC
522 Fifth Avenue
New York, NY	10036
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code  (855) 672-4468

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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

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.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of July 31, 2016, 2,963,277.415 Limited Partnership Units were outstanding.

MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

FORM 10-Q

INDEX

		Page Number
PART I – Financial Information:
Item 1.	Financial Statements:
	Statements of Financial Condition as of June 30, 2016 and December 31, 2015 (unaudited)		2
	Condensed Schedule of Investments as of June 30, 2016 (unaudited) and December 31, 2015		3-4
	Statements of Income and Expenses for the three and six months ended June 30, 2016 and 2015 (unaudited)		5
	Statements of Changes in Partners’ Capital for the six months ended June 30, 2016 and 2015 (unaudited)		6
	Notes to Financial Statements (unaudited)		7-19
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		20-24
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		25-27
Item 4.	Controls and Procedures		28
PART II – Other Information:
Item 1.	Legal Proceedings		29-36
Item 1A.	Risk Factors		37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		37
Item 3.	Defaults Upon Senior Securities		37
Item 4.	Mine Safety Disclosures		37
Item 5.	Other Information		37
Item 6.	Exhibits		38

PART I. FINANCIAL INFORMATION

Item 1.     Financial Statements

Morgan Stanley Smith Barney Spectrum Select L.P.

Statements of Financial Condition

(Unaudited)

	June 30,		December 31,
	2016		2015
Assets:
Equity in trading account:
Investment in U.S. Treasury bills, at fair value (amortized cost $15,992,566 and $55,497,357 at June 30, 2016 and December 31, 2015, respectively)	$	15,997,324	$	55,493,206
Unrestricted cash		56,692,879		23,029,544
Restricted cash		8,138,279		14,906,464
Net unrealized appreciation on open futures contracts		2,619,125		1,399,436
Net unrealized appreciation on open forward contracts		-		43,831
Total equity in trading account		83,447,607		94,872,481
Cash at bank		608		-
Interest receivable		8,653		3,540
Total assets	$	83,456,868	$	94,876,021
Liabilities and Partners’ Capital:
Liabilities:
Net unrealized depreciation on open forward contracts	$	337,981	$	-
Redemptions payable to Limited Partners		1,386,364		1,554,009
Redemptions payable to General Partner		50,000		-
Accrued expenses:
Ongoing placement agent fees		131,724		163,603
General Partner fees		131,724		163,603
Management fees		101,906		141,356
Total liabilities		2,139,699		2,022,571
Partners’ Capital:
Limited Partners (3,012,664.055 and 3,285,860.484 Units at June 30, 2016 and December 31, 2015, respectively)		80,453,731		91,783,172
General Partner (32,332.233 and 38,316.597 Units at June 30, 2016 and December 31, 2015, respectively)		863,438		1,070,278
Total partners’ capital (net asset value)		81,317,169		92,853,450
Total liabilities and partners’ capital	$	83,456,868	$	94,876,021
Net asset value per Unit	$	26.71	$	27.93

See accompanying notes to financial statements.

2

Morgan Stanley Smith Barney Spectrum Select L.P.

Condensed Schedule of Investments

June 30, 2016

(Unaudited)

			Notional ($)/
			Number of				% of Partners’
			Contracts		Fair Value		Capital
Futures Contracts Purchased
Commodity				684	$	539,482		0.66	%
Equity				229		39,993		0.05
Foreign currency				77		94,973		0.12
Interest rate				2,675		2,248,873		2.77
Total futures contracts purchased						2,923,321		3.60
Futures Contracts Sold
Commodity				226		(45,193)		(0.06)
Equity				126		11,446		0.01
Foreign currency				94		(59,972)		(0.07)
Interest rate				185		(210,477)		(0.26)
Total futures contracts sold						(304,196)		(0.38)
Net unrealized appreciation on open futures contracts					$	2,619,125		3.22	%
Unrealized Appreciation on Open Forward Contracts
Commodity				325	$	640,314		0.79	%
Foreign currency			$	52,191,264		1,456,656		1.79
Total unrealized appreciation on open forward contracts						2,096,970		2.58
Unrealized Depreciation on Open Forward Contracts
Commodity				428		(1,469,694)		(1.81)
Foreign currency			$	21,117,263		(965,257)		(1.19)
Total unrealized depreciation on open forward contracts						(2,434,951)		(3.00)
Net unrealized depreciation on open forward contracts					$	(337,981)		(0.42)	%
U.S. Government Securities							% of Partners’
Face Amount	Maturity Date	Description			Fair Value		Capital
$4,000,000	7/7/2016	U.S. Treasury bills, 0.205% (Amortized cost of $3,998,838)			$	3,999,955		4.92	%
$12,000,000	8/11/2016	U.S. Treasury bills, 0.265% (Amortized cost of $11,993,728)				11,997,369		14.75
Total U.S. Government Securities					$	15,997,324		19.67	%

See accompanying notes to financial statements.

3

Morgan Stanley Smith Barney Spectrum Select L.P.

Condensed Schedule of Investments

December 31, 2015

			Notional ($)/
			Number of				% of Partners’
			Contracts		Fair Value		Capital
Futures Contracts Purchased
Commodity				904	$	(208,668)		(0.22)	%
Equity				322		(106,384)		(0.11)
Foreign currency				324		39,948		0.04
Interest rate				2,232		(182,103)		(0.20)
Total futures contracts purchased						(457,207)		(0.49)
Futures Contracts Sold
Commodity				1,571		1,290,224		1.39
Equity				247		(118,017)		(0.13)
Foreign currency				872		696,386		0.75
Interest rate				1,866		(11,950)		(0.01)
Total futures contracts sold						1,856,643		2.00
Net unrealized appreciation on open futures contracts					$	1,399,436		1.51	%
Unrealized Appreciation on Open Forward Contracts
Commodity				268	$	740,942		0.80	%
Foreign currency			$	38,883,013		427,977		0.46
Total unrealized appreciation on open forward contracts						1,168,919		1.26
Unrealized Depreciation on Open Forward Contracts
Commodity				511		(954,788)		(1.03)
Foreign currency			$	20,675,394		(170,300)		(0.18)
Total unrealized depreciation on open forward contracts						(1,125,088)		(1.21)
Net unrealized appreciation on open forward contracts					$	43,831		0.05	%
U.S. Government Securities							% of Partners’
Face Amount	Maturity Date	Description			Fair Value		Capital
$32,750,000	3/3/2016	U.S. Treasury bills, 0.015% (Amortized cost of $32,748,076)			$	32,744,699		35.26	%
$22,750,000	1/21/2016	U.S. Treasury bills, 0.0125% (Amortized cost of $22,749,281)				22,748,507		24.50
Total U.S. Government Securities					$	55,493,206		59.76	%

See accompanying notes to financial statements.

4

Morgan Stanley Smith Barney Spectrum Select L.P.

Statements of Income and Expenses

(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Investment Income:
Interest income	$	34,636	$	1,767	$	73,759	$	3,924
Expenses:
General Partner fees		413,695		582,338		883,497		1,188,209
Ongoing placement agent fees		413,695		582,338		883,497		1,188,209
Management fees		318,846		508,757		677,901		1,038,162
Total expenses		1,146,236		1,673,433		2,444,895		3,414,580
Net investment income (loss)		(1,111,600)		(1,671,666)		(2,371,136)		(3,410,656)
Trading Results:
Net gains (losses) on trading of commodity interests:
Net realized gains (losses) on closed contracts		(3,377,509)		(4,248,789)		(2,393,222)		7,622,229
Net change in unrealized gains (losses) on open contracts		2,802,697		(5,178,368)		836,678		(8,950,423)
Total trading results		(574,812)		(9,427,157)		(1,556,544)		(1,328,194)
Net income (loss)	$	(1,686,412)	$	(11,098,823)	$	(3,927,680)	$	(4,738,850)
Net income (loss) allocation:
Limited Partners	$	(1,668,983)	$	(10,976,614)	$	(3,890,840)	$	(4,687,340)
General Partner	$	(17,429)	$	(122,209)	$	(36,840)	$	(51,510)
Net income (loss) per Unit:*
Limited Partners	$	(0.50)	$	(2.98)	$	(1.22)	$	(1.35)
General Partner	$	(0.50)	$	(2.98)	$	(1.22)	$	(1.35)
		Units		Units		Units		Units
Weighted average number of Units outstanding		3,139,590.239		3,740,970.066		3,213,280.897		3,802,077.838

* Represents the change in net asset value per Unit during the period.

See accompanying notes to financial statements.

5

Morgan Stanley Smith Barney Spectrum Select L.P.

Statements of Changes in Partners’ Capital

For the Six Months Ended June 30, 2016 and 2015

(Unaudited)

	Units of
	Partnership		Limited		General
	Interest		Partners		Partner		Total
Partners’ Capital, December 31, 2015		3,324,177.081	$	91,783,172	$	1,070,278	$	92,853,450
Net Income (Loss)		-		(3,890,840)		(36,840)		(3,927,680)
Redemptions		(279,180.793)		(7,438,601)		(170,000)		(7,608,601)
Partners’ Capital, June 30, 2016		3,044,996.288	$	80,453,731	$	863,438	$	81,317,169
Partners’ Capital, December 31, 2014		3,905,473.827	$	116,569,858	$	1,312,933	$	117,882,791
Net Income (Loss)		-		(4,687,340)		(51,510)		(4,738,850)
Redemptions		(258,292.149)		(7,900,996)		(76,663)		(7,977,659)
Partners’ Capital, June 30, 2015		3,647,181.678	$	103,981,522	$	1,184,760	$	105,166,282

See accompanying notes to financial statements.

6

Morgan Stanley Smith Barney Spectrum Select L.P.

Notes to Financial Statements

(Unaudited)

1. Organization:

Morgan Stanley Smith Barney Spectrum Select L.P. (the “Partnership”) is a Delaware limited partnership organized in 1991 to engage primarily in the speculative trading of futures contracts, options on futures and forward contracts, and forward contracts on physical commodities and other commodity interests, including, but not limited to, foreign currencies, financial instruments, metals, energy, and agricultural products (collectively, “Futures Interests”) (refer to Note 4, “Financial Instruments”). The General Partner (defined below) may also determine to invest up to all of the Partnership’s assets in United States (“U.S.”) Treasury bills and/or money market mutual funds, including money market mutual funds managed by Morgan Stanley or its affiliates. The Partnership is one of the Morgan Stanley Spectrum series of funds, comprised of the Partnership, Morgan Stanley Smith Barney Spectrum Currency and Commodity L.P., Morgan Stanley Smith Barney Spectrum Technical L.P. and Morgan Stanley Smith Barney Spectrum Strategic L.P.

Ceres Managed Futures LLC, a Delaware limited liability company, acts as the general partner (“Ceres” or the “General Partner”) and commodity pool operator for the Partnership. Ceres is a wholly-owned subsidiary of Morgan Stanley Smith Barney Holdings LLC (“MSSBH”). MSSBH is wholly-owned indirectly by Morgan Stanley. Morgan Stanley Smith Barney LLC is doing business as Morgan Stanley Wealth Management (“Morgan Stanley Wealth Management”). Morgan Stanley Wealth Management is a principal subsidiary of MSSBH.

During the reporting periods ended June 30, 2016 and 2015, the Partnership’s commodity broker was Morgan Stanley & Co. LLC (“MS&Co.”), a registered futures commission merchant. MS&Co. also acts as the counterparty on all trading of foreign currency forward contracts. MS&Co. is a wholly-owned subsidiary of Morgan Stanley. The Partnership also deposits a portion of its cash in a non-trading account at JPMorgan Chase Bank, N.A. The trading advisors to the Partnership are EMC Capital Management, Inc. (“EMC”), Graham Capital Management, L.P. (“Graham”) and Rabar Market Research, Inc. (“Rabar”) (individually, a “Trading Advisor”, or collectively, the “Trading Advisors”).

Effective June 30, 2016, the General Partner terminated the management agreement, dated as of October 9, 2007, as amended, among the Partnership, the General Partner and Altis Partners (Jersey) Limited (“Altis”), pursuant to which Altis traded a portion of the Partnership’s assets. Consequently, Altis ceased all Futures Interest trading on behalf of the Partnership. References herein to the Trading Advisor or the Trading Advisors may also include, as relevant, Altis.

In July 2015, the General Partner delegated certain administrative functions to SS&C Technologies, Inc., a Delaware corporation, currently doing business as SS&C GlobeOp (the “Administrator”). Pursuant to a master services agreement, the Administrator furnishes certain administrative, accounting, regulatory, reporting, tax and other services as agreed from time to time. In addition, the Administrator maintains certain books and records of the Partnership. The General Partner pays or reimburses the Partnership, from the General Partner fee (formerly, the administrative fee) it receives from the Partnership, the ordinary administrative expenses of the Partnership. This includes the expenses related to the engagement of the Administrator. Therefore, the engagement of the Administrator did not impact the Partnership’s break-even point.

7

Morgan Stanley Smith Barney Spectrum Select L.P.

Notes to Financial Statements

(Unaudited)

2. Basis of Presentation and Summary of Significant Accounting Policies:

The accompanying financial statements and accompanying notes are unaudited but, in the opinion of the General Partner, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Partnership’s financial condition at June 30, 2016, the results of its operations for the three and six months ended June 30, 2016 and 2015, and changes in partners’ capital for the six months ended June 30, 2016 and 2015. These financial statements present the results of interim periods and do not include all of the disclosures normally provided in annual financial statements. These financial statements should be read together with the financial statements and notes included in the Partnership’s December 31, 2015 Annual Report on Form 10-K (the “Form10-K”) filed with the Securities and Exchange Commission (the “SEC”) for the year ended December 31, 2015. The December 31, 2015 information has been derived from the audited financial statements as of and for the year ended December 31, 2015.

Due to the nature of commodity trading, the results of operations for the interim periods presented should not be considered indicative of the results that may be expected for the entire year.

Use of Estimates: The preparation of financial statements and accompanying notes in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the General Partner to make estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses, and related disclosures of contingent assets and liabilities in the financial statements and accompanying notes. As a result, actual results could differ from these estimates.

Statement of Cash Flows: The Partnership is not required to provide a Statement of Cash Flows.

Partnership’s Investments: All commodity interests of the Partnership, including derivative financial instruments and derivative commodity instruments, are held for trading purposes. The commodity interests are recorded on trade date and open contracts are recorded at fair value (as described in Note 6, “Fair Value Measurements”) at the measurement date. Investments in commodity interests denominated in foreign currencies are translated into U.S. dollars at the exchange rates prevailing at the measurement date. Gains or losses are realized when contracts are liquidated and are determined using the first-in, first-out method. Unrealized gains or losses on open contracts are included as a component of equity in trading account in the Partnership’s Statements of Financial Condition. Net realized gains or losses and net change in unrealized gains or losses are included in the Partnership’s Statements of Income and Expenses.

Restricted and Unrestricted Cash: As reflected on the Partnership’s Statements of Financial Condition, restricted cash equals the cash portion of assets on deposit to meet margin requirements plus the cash required to offset unrealized losses on foreign currency forward and option contracts and offset unrealized losses only on the offsetting London Metal Exchange positions. All of these amounts are maintained separately. Cash available for Futures Interest trading that is not classified as restricted cash is therefore classified as unrestricted cash. Restricted and unrestricted cash includes cash denominated in foreign currencies of $(140,003) (proceeds of $157,934) and $(924,554) (proceeds of $943,684) as of June 30, 2016 and December 31, 2015, respectively.

Investment Company Status: Effective January 1, 2014, the Partnership adopted Accounting Standards Update (“ASU”) 2013-08, “Financial Services — Investment Companies (Topic 946): Amendments to the Scope, Measurement and Disclosure Requirements” and based on the General Partner’s assessment, the Partnership has been deemed to be an investment company since inception. Accordingly, the Partnership follows the investment company accounting and reporting guidance of Topic 946 and reflects its investments at fair value with unrealized gains and losses resulting from changes in fair value reflected in the Statements of Income and Expenses.

8

Morgan Stanley Smith Barney Spectrum Select L.P.

Notes to Financial Statements

(Unaudited)

Income Taxes: Income taxes have not been listed as each partner is individually liable for the taxes, if any, on its share of the Partnership’s income and expenses. The General Partner concluded that no provision for income tax is required in the Partnership’s financial statements. The Partnership files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The 2012 through 2015 tax years remain subject to examination by U.S. federal and most state tax authorities. The General Partner does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Net Income (Loss) per Unit: Net income (loss) per unit of limited partnership interest (“Unit(s)”) is calculated in accordance with ASU 946, “Financial Services – Investment Companies.” See Note 3, “Financial Highlights.”

Fair Value of Financial Instruments: The carrying value of the Partnership’s assets and liabilities presented in the Statements of Financial Condition that qualify as financial instruments under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 825, “Financial Instruments,” approximates fair value due to the short term nature of such balances.

Recent Accounting Pronouncement: In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” The amendments in this update address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments for all entities that hold financial assets or owe financial liabilities. One of the amendments in this update eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet or a description of changes in the methods and significant assumptions. Additionally, the update eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities. Investment companies are specifically exempted from ASU 2016-01’s equity investment accounting provisions and will continue to follow the industry specific guidance for investment accounting under Topic 946. For public business entities, this update is effective for fiscal years beginning after December 15, 2017, and interim periods therein. For other entities, it is effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. The General Partner is currently evaluating the impact this guidance will have on the Partnership’s financial statements and related disclosures.

Reclassification: Certain prior period amounts have been reclassified to conform to current period presentation. Amounts previously presented as net unrealized gain (loss) on open contracts in the Statements of Financial Condition are now reported as net unrealized appreciation on open futures contracts, net unrealized depreciation on open futures contracts, net unrealized appreciation on open forward contracts and net unrealized depreciation on open forward contracts, as applicable. In addition, amounts previously presented as futures and forward contracts purchased and futures and forward contracts sold on the Condensed Schedules of Investments are now reported as futures contracts purchased, futures contracts sold, unrealized appreciation on open forward contracts and unrealized depreciation on open forward contracts, as applicable.

There have been no material changes with respect to the Partnership’s critical accounting policies as reported in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2015.

9

Morgan Stanley Smith Barney Spectrum Select L.P.

Notes to Financial Statements

(Unaudited)

3. Financial Highlights:

Financial highlights for the limited partner class for the three and six months ended June 30, 2016 and 2015 were as follows:

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Per Unit Performance (for a unit outstanding throughout the period): *
Net realized and unrealized gains (losses)	$	(0.14)	$	(2.53)	$	(0.48)	$	(0.45)
Net investment loss		(0.36)		(0.45)		(0.74)		(0.90)
Net increase (decrease) for the period		(0.50)		(2.98)		(1.22)		(1.35)
Net asset value per Unit, beginning of period		27.21		31.81		27.93		30.18
Net asset value per Unit, end of period	$	26.71	$	28.83	$	26.71	$	28.83
	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Ratios to Average Limited Partners’ Capital: **
Net investment loss ***		(5.4)%		(5.9)%		(5.5)%		(5.9)%
Operating expenses before incentive fees		5.6%		5.9%		5.6%		5.9%
Incentive fees		-%		-%		-%		-%
Operating expenses after incentive fees		5.6%		5.9%		5.6%		5.9%
Total return:
Total return before incentive fees		(1.8)%		(9.4)%		(4.4)%		(4.5)%
Incentive fees		-%		-%		-%		-%
Total return after incentive fees		(1.8)%		(9.4)%		(4.4)%		(4.5)%

* Net investment loss per Unit is calculated by dividing the expenses net of interest income by the average number of Units outstanding during the period. The net realized and unrealized gains (losses) per Unit is a balancing amount necessary to reconcile the change in net asset value per Unit with the other per unit information.

** Annualized (except for incentive fees, if applicable).

*** Interest income less total expenses.

The above ratios and total return may vary for individual investors based on the timing of capital transactions during the period. Additionally, these ratios are calculated for the limited partner class using the limited partners’ share of income, expenses and average partners’ capital.

10

Morgan Stanley Smith Barney Spectrum Select L.P.

Notes to Financial Statements

(Unaudited)

4. Financial Instruments:

The Partnership trades Futures Interests. Futures and forwards represent contracts for delayed delivery of an instrument at a specified date and price. Futures Interests are open commitments until the settlement date, at which time they are realized. They are valued at fair value, generally on a daily basis, and the unrealized gains and losses on open contracts (the difference between contract trade price and market price) are reported in the Statements of Financial Condition as a net unrealized gain or loss on open futures or forward contracts. The resulting net change in unrealized gains and losses is reflected in the “Net change in unrealized gains (losses) on open contracts” in the Statements of Income and Expenses. The Partnership’s contracts are accounted for on a trade-date basis. Risk arises from changes in the value of these contracts and the potential inability of counterparties to perform under the terms of the contracts. There are numerous factors which may significantly influence the fair value of these contracts, including interest rate volatility.

The fair value of an exchange-traded contract is based on the settlement price quoted by the exchange on the day with respect to which fair value is being determined. If an exchange-traded contract could not have been liquidated on such day due to the operation of daily limits or other rules of the exchange, the settlement price will be equal to the settlement price on the first subsequent day on which the contract could be liquidated.

The Partnership’s contracts are accounted for on a trade-date basis. Gains or losses are realized when contracts are liquidated and are determined using the first-in, first-out method.

In general, the risks associated with off-exchange-traded contracts are greater than those associated with exchange-traded contracts because of the greater risk of default by the counterparty to an off-exchange-traded contract. The Partnership has credit risk associated with counterparty nonperformance. As of the date of the financial statements, the credit risk associated with the instruments in which the Partnership trades is limited to the unrealized gain amounts reflected in the Partnership’s Statements of Financial Condition.

11

Morgan Stanley Smith Barney Spectrum Select L.P.

Notes to Financial Statements

(Unaudited)

The Partnership also has credit risk because MS&Co. acts as the commodity futures broker, or the counterparty, with respect to most of the Partnership’s assets. Exchange-traded futures and exchange-traded forward contracts are fair valued on a daily basis, with variations in value settled on a daily basis. MS&Co., which is acting as a commodity futures broker for the Partnership’s exchange-traded futures and exchange-traded forward contracts is required, pursuant to regulations of the Commodity Futures Trading Commission (“CFTC”), to segregate from its own assets, and for the sole benefit of its commodity customers, total cash held by it with respect to exchange-traded futures and exchange traded forward contracts, including an amount equal to the net unrealized gains (losses) on all open exchange-traded futures and exchange traded forward contracts, which, in the aggregate, totaled $66,620,903 and $39,121,598 at June 30, 2016 and December 31, 2015, respectively. With respect to the Partnership’s off-exchange-traded forward currency contracts and forward currency option contracts, there are no daily settlements of variation in value, nor is there any requirement that an amount equal to the net unrealized gains (losses) on such contracts be segregated. However, the Partnership is required to meet margin requirements equal to the net unrealized loss on open forward currency contracts in the Partnership’s accounts with the counterparty, which is accomplished by daily maintenance of the cash balance in custody accounts held at MS&Co., for the benefit of MS&Co. With respect to those off-exchange-traded forward currency contracts, the Partnership is at risk to the ability of MS&Co., the sole counterparty on all such contracts, to perform. The Partnership has a netting agreement with the counterparty. The primary terms are based on industry standard master netting agreements. This agreement, which seeks to reduce both the Partnership’s and the counterparty’s exposure on off-exchange-traded forward currency contracts, should materially decrease the Partnership’s credit risk in the event of MS&Co.’s bankruptcy or insolvency.

The Partnership does not isolate the portion of the results of operations arising from the effect of changes in foreign exchange rates on investments from fluctuations due to changes in market prices of investments held. Such fluctuations are included in net income (loss) in the Statements of Income and Expenses.

The General Partner monitors and attempts to control the Partnership’s risk exposure on a daily basis through financial, credit and risk management monitoring systems, and accordingly, believes that it has effective procedures for evaluating and limiting the credit and market risks to which the Partnership may be subject. These monitoring systems generally allow the General Partner to statistically analyze actual trading results with risk adjusted performance indicators and correlation statistics. In addition, online monitoring systems provide account analysis of futures and forward contracts by sector, margin requirements, gain and loss transactions and collateral positions.

The futures and forwards traded by the Partnership, along with the U.S. Treasury bills held by the Partnership, involve varying degrees of related market risk. Market risk is often dependent upon changes in the level or volatility of interest rates, exchange rates, and prices of financial instruments and commodities, factors that result in frequent changes in the fair value of the Partnership’s open positions, and consequently in its earnings, whether realized or unrealized, and cash flow.

Gains and losses on open positions of exchange-traded futures and exchange-traded forward contracts are settled daily through variation margin. Gains and losses on off-exchange-traded forward currency contracts are settled upon termination of the contract.

12

Morgan Stanley Smith Barney Spectrum Select L.P.

Notes to Financial Statements

(Unaudited)

5. Trading Activities:

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.

All of the commodity interests owned by the Partnership are held for trading purposes. The monthly average number of futures contracts traded during the three months ended June 30, 2016 and 2015 were 5,781 and 7,761, respectively. The monthly average number of futures contracts traded during the six months ended June 30, 2016 and 2015 were 7,038 and 8,095, respectively. The monthly average number of metals forward contracts traded during the three months ended June 30, 2016 and 2015 were 1,168 and 1,305, respectively. The monthly average number of metals forward contracts traded during the six months ended June 30, 2016 and 2015 were 1,209 and 1,175, respectively. The monthly average notional values of currency forward contracts traded during the three months ended June 30, 2016 and 2015 were $118,755,428 and $137,214,414, respectively. The monthly average notional values of currency forward contracts traded during the six months ended June 30, 2016 and 2015 were $115,451,266 and $135,302,544, respectively.

The following tables summarize the gross and net amounts recognized relating to the assets and liabilities of the Partnership’s derivatives and their offsetting subject to master netting agreements or similar agreements as of June 30, 2016 and December 31, 2015, respectively.

			Gross Amounts		Amounts		Gross Amounts not Offset in the
			Offset in the		Presented in the		Statements of Financial Condition
			Statements of		Statements of				Cash Collateral
	Gross Amounts		Financial		Financial		Financial		Received/
June 30, 2016	Recognized		Condition		Condition		Instruments		Pledged*		Net Amount
Assets
Futures	$	3,839,879	$	(1,220,754)	$	2,619,125	$	-	$	-	$	2,619,125
Forwards		2,096,970		(2,096,970)		-		-		-		-
Total assets	$	5,936,849	$	(3,317,724)	$	2,619,125	$	-	$	-	$	2,619,125
Liabilities
Futures	$	(1,220,754)	$	1,220,754	$	-	$	-	$	-	$	-
Forwards		(2,434,951)		2,096,970		(337,981)		-		-		(337,981)
Total liabilities	$	(3,655,705)	$	3,317,724	$	(337,981)	$	-	$	-	$	(337,981)
Net fair value											$	2,281,144	*

13

Morgan Stanley Smith Barney Spectrum Select L.P.

Notes to Financial Statements

(Unaudited)

December 31, 2015	Gross Amounts Recognized		Gross Amounts Offset in the Statements of Financial Condition		Amounts Presented in the Statements of Financial Condition		Gross Amounts not Offset in the Statements of Financial Condition				Net Amount
							Financial Instruments		Cash Collateral Received/ Pledged*
Assets
Futures	$	3,831,162	$	(2,431,726)	$	1,399,436	$	-	$	-	$	1,399,436
Forwards		1,168,919		(1,125,088)		43,831		-		-		43,831
Total assets	$	5,000,081	$	(3,556,814)	$	1,443,267	$	-	$	-	$	1,443,267
Liabilities
Futures	$	(2,431,726)	$	2,431,726	$	-	$	-	$	-	$	-
Forwards		(1,125,088)		1,125,088		-		-		-		-
Total liabilities	$	(3,556,814)	$	3,556,814	$	-	$	-	$	-	$	-
Net fair value											$	1,443,267	*

* 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 and/or U.S. Treasury bills 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.

14

Morgan Stanley Smith Barney Spectrum Select L.P.

Notes to Financial Statements

(Unaudited)

The following tables indicate the gross fair values of derivative instruments of futures and forward contracts as separate assets and liabilities as of June 30, 2016 and December 31, 2015, respectively.

	June 30, 2016
Assets
Futures Contracts
Commodity	$	1,082,519
Equity		358,731
Foreign currency		113,861
Interest rate		2,284,768
Total unrealized appreciation on open futures contracts		3,839,879
Liabilities
Futures Contracts
Commodity		(588,230)
Equity		(307,292)
Foreign currency		(78,860)
Interest rate		(246,372)
Total unrealized depreciation on open futures contracts		(1,220,754)
Net unrealized appreciation on open futures contracts	$	2,619,125	*
Assets
Forward Contracts
Commodity	$	640,314
Foreign currency		1,456,656
Total unrealized appreciation on open forward contracts		2,096,970
Liabilities
Forward Contracts
Commodity		(1,469,694)
Foreign currency		(965,257)
Total unrealized depreciation on open forward contracts		(2,434,951)
Net unrealized depreciation on open forward contracts	$	(337,981)	**

* This amount is in “Net unrealized appreciation on open futures contracts” in the Statements of Financial Condition.

** This amount is in “Net unrealized depreciation on open forward contracts” in the Statements of Financial Condition.

15

Morgan Stanley Smith Barney Spectrum Select L.P.

Notes to Financial Statements

(Unaudited)

	December 31, 2015
Assets
Futures Contracts
Commodity	$	2,019,400
Equity		196,959
Foreign currency		1,206,216
Interest rate		408,587
Total unrealized appreciation on open futures contracts		3,831,162
Liabilities
Futures Contracts
Commodity		(937,844)
Equity		(421,360)
Foreign currency		(469,882)
Interest rate		(602,640)
Total unrealized depreciation on open futures contracts		(2,431,726)
Net unrealized appreciation on open futures contracts	$	1,399,436	*
Assets
Forward Contracts
Commodity	$	740,942
Foreign currency		427,977
Total unrealized appreciation on open forward contracts		1,168,919
Liabilities
Forward Contracts
Commodity		(954,788)
Foreign currency		(170,300)
Total unrealized depreciation on open forward contracts		(1,125,088)
Net unrealized appreciation on open forward contracts	$	43,831	**

* This amount is in “Net unrealized appreciation on open futures contracts” in the Statements of Financial Condition.

** This amount is in “Net unrealized appreciation on open forward contracts” in the Statements of Financial Condition.

16

Morgan Stanley Smith Barney Spectrum Select L.P.

Notes to Financial Statements

(Unaudited)

The following table indicates the Partnership’s trading gains and losses, by market sector, on derivative instruments for the three and six months ended June 30, 2016 and 2015.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
Sector	2016			2015			2016			2015
Commodity	$	(979,233)		$	(5,466,092)		$	(916,030)		$	(6,276,242)
Equity		(2,207,645)			189,855			(3,428,566)			2,017,844
Foreign currency		256,808			(575,324)			(184,358)			2,689,244
Interest rate		2,355,258			(3,575,596)			2,972,410			240,960
Total	$	(574,812)	***	$	(9,427,157)	***	$	(1,556,544)	***	$	(1,328,194)	***

*** This amount is in “Total trading results” in the Statements of Income and Expenses.

17

Morgan Stanley Smith Barney Spectrum Select L.P.

Notes to Financial Statements

(Unaudited)

6. Fair Value Measurements:

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to fair values derived from unobservable inputs (Level 3). The level in the fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The fair value of exchange-traded futures, forward and option contracts is determined by the various exchanges, and reflects the settlement price for each contract as of the close of business on the last business day of the reporting period. The fair value of foreign currency forward contracts is extrapolated on a forward basis from the spot prices quoted as of approximately 3:00 P.M. (E.T.) on the last business day of the reporting period from various exchanges. The fair value of non-exchange-traded foreign currency option contracts is calculated by applying an industry standard model application for options valuation of foreign currency options, using as input the spot prices, interest rates and option implied volatilities quoted as of approximately 3:00 P.M. (E.T.) on the last business day of the reporting period. U.S. Treasury bills are valued at the last available bid price received from independent pricing services as of the close of the last business day of the reporting period.

The Partnership considers prices for exchange-traded commodity futures, forward, swap and option contracts to be based on unadjusted quoted prices in active markets for identical assets and liabilities (Level 1). The values of U.S. Treasury bills, non-exchange-traded forward, swap and certain option contracts for which market quotations are not readily available are priced by broker quotes or pricing services that derive fair values for those assets and liabilities from observable inputs (Level 2). As of June 30, 2016 and December 31, 2015, and for the periods ended June 30, 2016 and 2015, the Partnership did not hold any derivative instruments that were priced at fair value using unobservable inputs through the application of the General Partner’s assumptions and internal valuation pricing models (Level 3). Transfers between levels are recognized at the end of the reporting period. During the reporting periods, there were no transfers of assets or liabilities between Level 1 and Level 2.

18

Morgan Stanley Smith Barney Spectrum Select L.P.

Notes to Financial Statements

(Unaudited)

June 30, 2016	Total		Level 1		Level 2		Level 3
Assets
U.S. Treasury bills	$	15,997,324	$	-	$	15,997,324	$	-
Futures		3,839,879		3,839,879		-		-
Forwards		2,096,970		640,314		1,456,656		-
Total Assets	$	21,934,173	$	4,480,193	$	17,453,980	$	-
Liabilities
Futures	$	1,220,754	$	1,220,754	$	-	$	-
Forwards		2,434,951		1,469,694		965,257		-
Total Liabilities	$	3,655,705	$	2,690,448	$	965,257	$	-
December 31, 2015	Total		Level 1		Level 2		Level 3
Assets
U.S. Treasury bills	$	55,493,206	$	-	$	55,493,206	$	-
Futures		3,831,162		3,831,162		-		-
Forwards		1,168,919		740,942		427,977		-
Total Assets	$	60,493,287	$	4,572,104	$	55,921,183	$	-
Liabilities
Futures	$	2,431,726	$	2,431,726	$	-	$	-
Forwards		1,125,088		954,788		170,300		-
Total Liabilities	$	3,556,814	$	3,386,514	$	170,300	$	-

7. Subsequent Events:

The General Partner evaluates events that occur after the balance sheet date but before financial statements are issued. The General Partner has assessed the subsequent events through the date of issuance and has determined that there were no subsequent events requiring adjustment to or disclosure in the financial statements.

19

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

As of June 30, 2016, the percentage of assets allocated to each market sector was approximately as follows: Interest Rate 27.3%; Currency 19.1%; Equity 20.0%; and Commodity 33.6%.

Liquidity: The Partnership deposits its assets available for Futures Interest trading with MS&Co. as its clearing commodity broker in separate futures, forward and options trading accounts established for each Trading Advisor. Such assets are used as margin to engage in trading and may be used as margin solely for the Partnership’s trading. The assets are held either in non-interest bearing bank accounts or in securities and instruments permitted by the CFTC for investment of customer segregated or secured funds. Since the Partnership’s sole purpose is to trade in futures, forwards and options, it is expected that the Partnership will continue to own such liquid assets for margin purposes.

The Partnership’s investment in futures, forwards and options may, from time to time, be illiquid. Most U.S. futures exchanges limit fluctuations in prices during a single day by regulations referred to as “daily price fluctuation limits” or “daily limits.” Trades may not be executed at prices beyond the daily limit. If the price for a particular futures or option contract has increased or decreased by an amount equal to the daily limit, positions in that futures or option contract can neither be taken nor liquidated unless traders are willing to effect trades at or within the limit. Futures prices have occasionally moved the daily limit for several consecutive days with little or no trading. These market conditions could prevent the Partnership from promptly liquidating its futures or option contracts and result in restrictions on redemptions.

There is no limitation on daily price movements in trading forward contracts on foreign currencies. The markets for some world currencies have low trading volume and are illiquid, which may prevent the Partnership from trading in potentially profitable markets or prevent the Partnership from promptly liquidating unfavorable positions in such markets, subjecting it to substantial losses. Either of these market conditions could result in restrictions on redemptions. For the periods covered by this report, illiquidity has not materially affected the Partnership’s assets.

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

As of June 30, 2016, approximately 85.1% of the Partnership’s total investment exposure is futures contracts which are exchange-traded while approximately 14.9% is forward contracts which are off-exchange traded.

Capital Resources: The Partnership does not have, nor does it expect to have, any capital assets. The Partnership’s only assets are its cash at bank, interest receivable and equity in trading account, consisting of restricted and unrestricted cash, net unrealized appreciation on open futures contracts, net unrealized appreciation on open forward contracts and investment in U.S. Treasury bills, if applicable. Redemptions of Units in the future will affect the amount of funds available for investments in futures, forwards and options in subsequent periods. It is not possible to estimate the amount, and therefore the impact, of future outflows of Units.

There are no known material trends, favorable or unfavorable, that would affect, nor any expected material changes to the Partnership’s capital resource arrangements at the present time.

Off-Balance Sheet Arrangements and Contractual Obligations: The Partnership does not have any off-balance sheet arrangements, nor does it have contractual obligations or commercial commitments to make future payments that would affect its liquidity or capital resources.

20

Results of Operations

General: The Partnership’s results depend on the Trading Advisors and the ability of each Trading Advisor’s trading program to take advantage of price movements in the futures, forward and option markets.

Graham currently trades its allocated portion of the Partnership’s assets pursuant to Graham’s Global Diversified Program, as described below, at 150% Leverage. The Global Diversified Program features the first trend system that Graham developed, which began trading client accounts in 1995. It utilizes multiple computerized trading models and offers broad diversification in both financial and non-financial markets, trading in approximately 65 global markets. The Global Diversified Program’s trend system is primarily long-term in nature and is intended to generate significant returns over time with an acceptable degree of risk and volatility. The computer models analyze on a daily basis the recent price action, the relative strength and the risk characteristics of each market and compare statistically the quantitative results of this data to years of historical data on each market.

EMC currently trades its Classic Program for the Partnership. EMC’s investment strategies are technical rather than fundamental in nature. In other words, they are developed from analysis of patterns of actual monthly, weekly, and daily price movements and are not based on analysis of fundamental supply and demand factors, general economic factors, or anticipated world events. EMC relies on historical analysis of these price patterns to interpret current market behavior and to evaluate technical indicators for trade initiations and liquidations. EMC’s investment strategies used in its program are trend-following. This means that initiation and liquidation of positions in a particular market are generally in the direction of the price trend in that market, although at times counter-trend elements also may be employed. EMC employs an investment strategy which utilizes a blend of systems (or, stated another way, a number of systems simultaneously). The strategies are diversified in that its program follows a number of futures interests and often invests in more than ten different interests at one time.

Rabar trades its investment strategy on behalf of the Partnership. The objective of Rabar’s investment strategy is to generate capital appreciation over the long run by investing exclusively in futures interests, including exchange-traded futures contracts, options on futures contracts, foreign currency forward contracts and, to a very limited extent, cash commodities. Rabar may also engage in exchange for physical transactions, more commonly referred to as “EFPs.” Rabar’s strategy employs a diversified, systematic, technical, and trend following approach, utilizing a blend of several separate and distinct quantitative models.

Prior to its termination on June 30, 2016, Altis traded its Global Futures Portfolio Program on behalf of the Partnership. It is a systematic, automated trading program that builds on the market experience of Altis’ principals and employs a unique proprietary Advanced Asset Allocator. The Advanced Asset Allocator was specifically developed to manage portfolios of derivative instruments in a robust and scalable manner. The portfolio management technology combines original, traditional and contrasting investment techniques into one complete and comprehensive trading system. Investment changes are implemented after considering their effect on the whole portfolio and not just on the individual markets concerned.

21

The following chart sets forth the percentage and the amount of the Partnership’s net assets allocated to each Trading Advisor as of June 30, 2016 and March 31, 2016, respectively, and the change during the three months ended June 30, 2016.

	Allocations as of		Allocations as of		Allocations as of		Allocations as of		Change
	June 30,		March 31,		June 30,		March 31,		during the
Trading Advisor	2016 (%)		2016 (%)		2016 ($)		2016 ($)		period (%)
Altis		-		25.95		-		22,494,810		(100.00)
Graham		46.94		34.73		38,168,513		30,094,899		26.83
Rabar		28.06		21.34		22,815,062		18,496,652		23.35
EMC		25.00		17.98		20,333,594		15,582,997		30.49

The following presents a summary of the Partnership’s operations for the three and six months ended June 30, 2016 and 2015, and a general discussion of its trading activities during each period. It is important to note, however, that the Trading Advisors trade in various markets at different times and that prior activity in a particular market does not mean that such market will be actively traded by the Trading Advisors or will be profitable in the future. Consequently, the results of operations of the Partnership are difficult to discuss other than in the context of the Trading Advisors’ trading activities on behalf of the Partnership during the period in question. Past performance is no guarantee of future results.

The Partnership’s results of operations set forth in the financial statements are prepared in accordance with GAAP, which require the use of certain accounting policies that affect the amounts reported in these financial statements, including the following: the contracts the Partnership trades are accounted for on a trade-date basis and marked to market on a daily basis. The difference between their original contract value and market value is recorded in the Statements of Income and Expenses as “Net change in unrealized gains (losses) on open contracts,” and recorded as “Net realized gains (losses) on closed contracts” when open positions are closed out. The sum of these amounts constitutes the Partnership’s trading results. The market value of a futures contract is the settlement price on the exchange on which that futures contract is traded on a particular day. The value of a foreign currency forward contract is based on the spot rate as of approximately 3:00 P.M. (E.T.), the close of the business day. Interest income, as well as management fees, incentive fees, General Partner fees and ongoing placement agent fees of the Partnership are recorded on an accrual basis, as applicable.

The General Partner believes that, based on the nature of the operations of the Partnership, no assumptions relating to the application of critical accounting policies other than those presently used could reasonably affect reported amounts.

For the Three and Six Months Ended June 30, 2016

The Partnership recorded total trading results including interest income totaling $(540,176) and expenses totaling $1,146,236, resulting in a net loss of $1,686,412 for the three months ended June 30, 2016. The Partnership’s net asset value per Unit decreased from $27.21 at March 31, 2016 to $26.71 at June 30, 2016.

During the second quarter, the Partnership posted a loss in net asset value as trading gains in the global interest rate, agricultural, and currency sectors were more than offset by trading losses in the global stock index, metals, and energy sectors. The most significant losses were recorded in the global stock index sector throughout the second quarter from positions in Asian equity index futures as prices moved without consistent direction amid speculation regarding the potential increased stimulus measures from Japan and China. Within the metals sector, losses were incurred during May from long futures positions in industrial metals as prices declined amid concerns of an overextended commodity market in China and signs of a weakening economy in the U.S. Within the energy sector, losses were incurred during April from short positions in crude oil and its related products as prices surged as data from the Energy Information Agency showed U.S. crude oil production continued to decline. Additional losses were recorded during April from short positions in natural gas futures as prices moved higher as producers idled drilling equipment at historic rates. The Partnership’s trading losses for the quarter were partially offset by trading gains within the global interest rate sector during June from long positions in European and U.S. fixed income futures as prices advanced as uncertainty surrounding the economic and political fallout following the U.K.’s vote in late June to leave the European Union increased demand for the relative “safety” of government debt. Within the agricultural sector, gains were experienced throughout the quarter from long positions in soybean and soybean meal futures as prices rose as flooding and adverse weather in South America threatened to curtail grain exports. Additional gains were experienced from long positions in sugar futures, primarily during June, as prices climbed higher amid speculation that India’s newly imposed duty on sugar exports could further tighten the world sugar market. Within the currency sector, gains were experienced during June from long positions in the Japanese yen versus the U.S. dollar as the relative value of the yen, which has long been considered a “safe haven” investment in times of market apprehension, rallied after the U.K. decided to leave the European Union.

22

The Partnership recorded total trading results including interest income totaling $(1,482,785) and expenses totaling $2,444,895, resulting in a net loss of $3,927,680 for the six months ended June 30, 2016. The Partnership’s net asset value per Unit decreased from $27.93 at December 31, 2015 to $26.71 at June 30, 2016.

During the first six months of the year, the Partnership posted a loss in net asset value as trading gains in the global interest rate and currency sectors were more than offset by trading losses in the metals, global stock index, agricultural, and energy sectors. The most significant losses were recorded in the metals sector during February from short positions in gold futures as prices advanced amid increased investor demand for precious metals. Meanwhile, losses were recorded during May from long positions in gold futures as prices declined as a strengthening U.S. dollar diminished investor demand for precious metals. Additional losses in the metals sector were incurred throughout the first six months of the year from positions in copper, aluminum, zinc, and tin futures. Within the global stock index sector, losses were incurred during the first quarter from long positions in U.S. equity index futures as prices declined sharply during January and February amid mounting investor concerns about declining oil prices and a China-led slowdown in global growth. Additional losses were incurred throughout the second quarter from positions in Asian equity index futures as prices moved without consistent direction amid speculation regarding the potential for increased stimulus measures from Japan and China. Within the agricultural sector, losses were incurred during January from long positions in cocoa futures as prices tumbled as funds cut bets on higher prices and signs emerged that the crop in Ghana, the second-biggest cocoa producer, was recovering from a five-year low. Additional losses were incurred during March from short positions in coffee futures as prices were boosted by a combination of fund buying, a weaker U.S. dollar, and concerns about dry weather in Colombia and Vietnam. Smaller agricultural losses were incurred throughout the first six months of the year from positions in corn, hogs, and wheat futures. Within the energy sector, losses were incurred during March and April from short positions in crude oil and its related products as prices surged as data showed crude oil production continued to decline. Additional losses were recorded during April from short positions in natural gas futures as prices moved higher as producers idled drilling equipment at historic rates. The Partnership’s trading losses for the first six months of the year were partially offset by trading gains within the global interest rate sector during January and February from long positions in European and Pacific Rim fixed income futures as prices advanced after weakness in Chinese economic data revived concern about the stability of the global economy. Additional gains were experienced during June from long positions in European and U.S. fixed income futures as prices advanced as uncertainty surrounding the economic and political fallout following the U.K.’s vote in late June to leave the European Union increased demand for the relative “safety” of government debt. Within the currency sector, gains were experienced primarily during January from short positions in the British pound versus the U.S. dollar as the relative value of the British pound declined as U.K. manufacturing and services data signaled that the U.K.’s domestic economy was faltering and may result in the Bank of England keeping its benchmark interest rate unchanged for longer. Additional gains were experienced in the currency sector during June from long positions in the Japanese yen versus the U.S. dollar as the relative value of the yen, which has long been considered a “safe haven” investment in times of market apprehension, rallied after the U.K. decided to leave the European Union.

For the Three and Six Months Ended June 30, 2015

The Partnership recorded total trading results including interest income totaling $(9,425,390) and expenses totaling $1,673,433, resulting in a net loss of $11,098,823 for the three months ended June 30, 2015. The Partnership’s net asset value per Unit decreased from $31.81 at March 31, 2015 to $28.83 at June 30, 2015.

During the second quarter, the Partnership posted a loss in net asset value from trading losses in the global interest rate, metals, energy, agricultural, and currency sectors. Trading results in the global stock index sector were relatively flat for the quarter and had no material impact on the Partnership’s performance. The most significant losses were incurred within the global interest rate markets during June from long positions in European and U.S. fixed income futures as prices retreated amid growing investor concern over Greece’s debt crisis. Additional losses were experienced during April from long positions in European fixed income futures as prices declined on speculation that gains triggered by European Central Bank bond purchases were overdone. Within the metals sector, losses were incurred primarily during May from long positions in copper, zinc and lead futures as industrial metals prices declined on concern that demand will slow in China and the U.S. Within the energy sector, losses were experienced throughout the second quarter from positions in natural gas futures as prices moved without consistent direction. Additional losses were incurred from gasoil and heating oil futures positions. Within the agricultural sector, losses were incurred primarily during June from short positions in wheat and soybean futures as prices rallied after heavy rainfall in the U.S. Midwest raised the potential for crop damage. Within the currency sector, losses were incurred primarily during April from short positions in the euro versus the U.S. dollar as the value of the euro advanced following stronger-than-expected European economic data.

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The Partnership recorded total trading results including interest income totaling $(1,324,270) and expenses totaling $3,414,580, resulting in a net loss of $4,738,850 for the six months ended June 30, 2015. The Partnership’s net asset value per Unit decreased from $30.18 at December 31, 2014 to $28.83 at June 30, 2015.

During the first six months of the year, the Partnership posted a loss in net asset value as trading profits in global fixed income, currencies, and global equity indices were more than offset by losses in the energy, agricultural, and metals sectors. The most significant losses were incurred in the energy sector primarily during February from short positions in crude oil and its related products, particularly gas oil and heating oil, as prices rallied on signs of higher demand and lower supply, including more bullish forecasts from both the Organization of the Petroleum Exporting Countries (“OPEC”) and the U.S. government. Smaller losses in this sector were recorded during the second quarter. Within the agricultural sector, losses were incurred primarily during June from short positions in wheat and soybean futures as prices rallied after heavy rainfall in the U.S. Midwest raised the potential for crop damage. Within the metals sector, losses were incurred primarily during May from long positions in zinc and lead futures as industrial metals prices declined on concern that demand will slow in China and the U.S. Additional losses were incurred from positions in gold and silver futures. The Partnership’s losses for the first six months of the year were partially offset by gains recorded in the global interest rate sector during January from long positions in U.S. fixed income futures as prices rose as tumbling oil prices crimped the outlook for inflation and fueled speculation the U.S. Federal Reserve may delay an interest-rate increase. Additional gains were experienced in the global interest rate sector during March from long positions in European fixed income futures as prices rose amid concern that Greece’s solvency will erode, boosting demand for the relative safety of government debt. Within the currency sector, gains were experienced primarily in January from short positions in the euro versus the Swiss franc as the value of the Swiss franc soared against currencies globally after the Swiss National Bank abandoned its exchange-rate cap, which had previously maintained a minimum exchange-rate for the Swiss franc against the euro. Additional currency gains were recorded from positions in the Canadian dollar. Within the global stock index sector, gains were recorded primarily during February from long positions in Asian and European equity index futures as prices advanced after euro-area finance ministers reached a provisional deal to keep financial aid flowing to Greece. Additional gains in this sector were recorded in Asian equity indices during April.

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Item 3.     Quantitative and Qualitative Disclosures About Market Risk

Introduction:

The Partnership is a commodity pool engaged primarily in the speculative trading of futures, forwards, and options. The market-sensitive instruments held by the Partnership are acquired for speculative trading purposes only and, as a result, all or substantially all of the Partnership’s assets are at risk of trading loss. Unlike an operating company, the risk of market-sensitive instruments is inherent to the primary business activity of the Partnership.

The futures, forwards and options on such contracts traded, and the U.S. Treasury bills held, by the Partnership involve varying degrees of related market risk. Market risk is often dependent upon changes in the level or volatility of interest rates, exchange rates, and prices of financial instruments and commodities, factors that result in frequent changes in the fair value of the Partnership’s open positions, and consequently in its earnings, whether realized or unrealized, and cash flow. Gains and losses on open positions of exchange-traded futures and exchange-traded forward contracts are settled daily through variation margin. Gains and losses on off-exchange-traded forward currency contracts and forward currency option contracts are settled upon termination of the contract. Gains and losses on off-exchange-traded forward currency option contracts are settled on an agreed-upon settlement date.

The Partnership’s total market risk may increase or decrease as it is influenced by a wide variety of factors, including, but not limited to, the diversification among the Partnership’s open positions, the volatility present within the markets, and the liquidity of the markets.

The face value of the market sector instruments held by the Partnership is typically many times the applicable margin requirements. Margin requirements generally range between 2% and 15% of contract face value. Additionally, the use of leverage causes the face value of the market sector instruments held by the Partnership typically to be many times the total capitalization of the Partnership.

The Partnership’s past performance is no guarantee of its future results. Any attempt to numerically quantify the Partnership’s market risk is limited by the uncertainty of its speculative trading. The Partnership’s speculative trading and use of leverage may cause future losses and volatility (i.e., “risk of ruin”) that far exceed the Partnership’s experience to date as discussed under the “Partnership’s Value at Risk in Different Market Sectors” section and significantly exceed the Value at Risk tables disclosed.

Limited partners will not be liable for losses exceeding the current net asset value of their investment.

Quantifying the Partnership’s Trading Value at Risk

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

The Partnership accounts for open positions on the basis of fair value accounting principles. Any loss in the market value of the Partnership’s open positions is directly reflected in the Partnership’s earnings and cash flow.

The Partnership’s risk exposure in the market sectors traded by the Trading Advisors is estimated below in terms of Value at Risk. Please note that the Value at Risk model is used to numerically quantify market risk for historic reporting purposes only and is not utilized by either Ceres or the Trading Advisors in their daily risk management activities.

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

Exchange maintenance margin requirements have been used by the Partnership as the measure of its Value at Risk. Maintenance margin requirements are set by exchanges to equal or exceed the maximum losses reasonably expected to be incurred in the fair value of any given contract in 95% — 99% of any one-day interval. Maintenance margin has been used rather than the more generally available initial margin, because initial margin includes a credit risk component, which is not relevant to Value at Risk.

The Partnership’s Value at Risk in Different Market Sectors

The following tables indicate the trading Value at Risk associated with the Partnership’s open positions by market category as of June 30, 2016 and December 31, 2015, and the highest, lowest and average values during the three months ended June 30, 2016 and for the twelve months ended December 31, 2015. All open position trading risk exposures of the Partnership have been included in calculating the figures set forth below. There has been no material change in the trading Value at Risk information previously disclosed in the Form 10-K.

As of June 30, 2016, the Partnership’s total capitalization was $81,317,169.

June 30, 2016
			% of Total			High		Low		Average
Market Sector	Value at Risk		Capitalization			Value at Risk		Value at Risk		Value at Risk*
Commodity	$	3,035,471		3.73	%	$	5,801,882	$	3,035,471	$	4,732,916
Equity		1,813,384		2.23			3,424,594		1,813,384		2,899,572
Foreign currency		1,723,096		2.12			3,935,449		1,361,440		3,254,852
Interest rate		2,467,386		3.03			3,768,789		2,092,888		2,909,741
Total	$	9,039,337		11.11	%

*Average daily Values at Risk.

As of December 31, 2015, the Partnership’s total capitalization was $92,853,450.

December 31, 2015
			% of Total			High		Low		Average
Market Sector	Value at Risk		Capitalization			Value at Risk		Value at Risk		Value at Risk*
Commodity	$	6,500,979		7.00	%	$	7,464,573	$	4,358,328	$	5,733,928
Equity		2,578,878		2.78			5,564,252		1,482,105		3,428,402
Foreign currency		4,785,530		5.15			5,739,845		1,443,178		4,265,117
Interest rate		2,542,981		2.74			4,313,806		1,260,550		2,936,185
Total	$	16,408,368		17.67	%

* Average daily Values at Risk.

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Limitations on Value at Risk as an Assessment of Market Risk

Value at Risk models permit estimation of a portfolio’s aggregate market risk exposure, incorporating a range of varied market risks, reflect risk reduction due to portfolio diversification or hedging activities, and can cover a wide range of portfolio assets. However, Value at Risk measures should be viewed in light of the methodology’s limitations, which include, but may not be limited to, the following:

• past changes in market risk factors will not always result in accurate predictions of the distributions and correlations of future market movements;

• changes in portfolio value caused by market movements may differ from those of the Value at Risk model;

• Value at Risk results reflect past market fluctuations applied to current trading positions while future risk depends on future positions;

• Value at Risk using a one-day time horizon does not fully capture the market risk of positions that cannot be liquidated or hedged within one day; and

• the historical market risk factor data used for Value at Risk estimation may provide only limited insight into losses that could be incurred under certain unusual market movements.

Non-Trading Risk:

The Partnership has non-trading market risk on its foreign cash balances not needed for margin. These balances and any market risk they may represent are immaterial.

A decline in short-term interest rates would result in a decline in the Partnership’s cash management income. This cash flow risk is not considered to be material.

Materiality, as used throughout this section, is based on an assessment of reasonably possible market movements and any associated potential losses, taking into account the leverage, optionality, and multiplier features of the Partnership’s market-sensitive instruments, in relation to the Partnership’s net assets.

Qualitative Disclosures Regarding Primary Trading Risk Exposures:

The following qualitative disclosures regarding the Partnership’s market risk exposures — except for (A) those disclosures that are statements of historical fact and (B) the descriptions of how the Partnership manages its primary market risk exposures—constitute forward looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. The Partnership’s primary market risk exposures, as well as the strategies used and to be used by Ceres and the Trading Advisors for managing such exposures, are subject to numerous uncertainties, contingencies and risks, any one of which could cause the actual results of the Partnership’s risk controls to differ materially from the objectives of such strategies. Government interventions, defaults and expropriations, illiquid markets, the emergence of dominant fundamental factors, political upheavals, changes in historical price relationships, an influx of new market participants, increased regulation, and many other factors could result in material losses, as well as in material changes to the risk exposures and the risk management strategies of the Partnership. Investors must be prepared to lose all or substantially all of their investment in the Partnership.

Qualitative Disclosures Regarding Means of Managing Risk Exposure:

The Partnership and the Trading Advisors, separately, attempt to manage the risk of the Partnership’s open positions in essentially the same manner in all market categories traded. Ceres attempts to manage market exposure by diversifying the Partnership’s assets among different market sectors and trading approaches through the selection of the commodity trading advisors and by daily monitoring of their performance. In addition, the Trading Advisors establish diversification guidelines, often set in terms of the maximum margin to be committed to positions in any one market sector or market-sensitive instrument.

Ceres monitors and controls the risk of the Partnership’s non-trading instrument, cash. Cash is the only Partnership investment directed by Ceres, rather than the Trading Advisors.

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Item 4.     Controls and Procedures

Evaluation of Disclosure Controls and Procedures:

Under the supervision and with the participation of the General Partner, Ceres’ President (Ceres’ principal executive officer) and Chief Financial Officer (Ceres’ principal financial officer) have evaluated the effectiveness of the design and operation of the Partnership’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of June 30, 2016. The Partnership’s disclosure controls and procedures are designed to provide reasonable assurance that information the Partnership is required to disclose in the reports that the Partnership files or submits under the Exchange Act is recorded, processed, summarized and reported within the time period specified in the applicable rules and forms. Based on this evaluation, the President and Chief Financial Officer of Ceres have concluded that the disclosure controls and procedures of the Partnership were effective at June 30, 2016.

Changes in Internal Control over Financial Reporting:

There have been no changes during the period covered by this quarterly report in the Partnership’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that have materially affected or are reasonably likely to materially affect the Partnership’s internal control over financial reporting.

Limitations on the Effectiveness of Controls:

Any control system, no matter how well designed and operated, can provide reasonable (not absolute) assurance that its objectives will be met. Furthermore, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

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PART II. OTHER INFORMATION

Item 1.     Legal Proceedings

This section describes the major pending legal proceedings, other than ordinary routine litigation incidental to the business, to which MS&Co. or its subsidiaries is a party or to which any of their property is subject. There are no material legal proceedings pending against the Partnership or the General Partner.

On June 1, 2011, Morgan Stanley & Co. Incorporated converted from a Delaware corporation to a Delaware limited liability company. As a result of that conversion, Morgan Stanley & Co. Incorporated is now named Morgan Stanley & Co. LLC (“MS&Co.”).

MS&Co. is a wholly-owned, indirect subsidiary of Morgan Stanley, a Delaware holding company. Morgan Stanley files periodic reports with the SEC as required by the Exchange Act, which include current descriptions of material litigation and material proceedings and investigations, if any, by governmental and/or regulatory agencies or self-regulatory organizations concerning Morgan Stanley and its subsidiaries, including MS&Co. As a consolidated subsidiary of Morgan Stanley, MS&Co. does not file its own periodic reports with the SEC that contain descriptions of material litigation, proceedings and investigations. As a result, we refer you to the “Legal Proceedings” section of Morgan Stanley’s SEC 10-K filings for 2015, 2014, 2013, 2012, and 2011. In addition, MS&Co. annually prepares an Audited Consolidated Statements of Financial Condition (the “Audited Financial Statement”) that is publicly available on Morgan Stanley’s website at www.morganstanley.com. We refer you to the “Commitments, Guarantees and Contingencies—Contingencies—Legal” section in MS&Co.’s 2015 Audited Financial Statement.

In addition to the matters described in those filings, in the normal course of business, each of Morgan Stanley and MS&Co. has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions, and other litigation, arising in connection with its activities as a global diversified financial services institution. Certain of the legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. Each of Morgan Stanley and MS&Co. is also involved, from time to time, in investigations and proceedings by governmental and/or regulatory agencies or self-regulatory organizations, certain of which may result in adverse judgments, fines or penalties. The number of these investigations and proceedings has increased in recent years with regard to many financial services institutions, including Morgan Stanley and MS&Co.

MS&Co. is a Delaware limited liability company with its main business office located at 1585 Broadway, New York, New York 10036. Among other registrations and memberships, MS&Co. is registered as a futures commission merchant and is a member of the National Futures Association.

Regulatory and Governmental Matters.

MS&Co. has received subpoenas and requests for information from certain federal and state regulatory and governmental entities, including among others various members of the RMBS Working Group of the Financial Fraud Enforcement Task Force, such as the United States Department of Justice, Civil Division and several state Attorney General’s Offices, concerning the origination, financing, purchase, securitization and servicing of subprime and non-subprime residential mortgages and related matters such as residential mortgage backed securities (“RMBS”), collateralized debt obligations (“CDOs”), structured investment vehicles (“SIVs”) and credit default swaps backed by or referencing mortgage pass-through certificates. These matters, some of which are in advanced stages, include, but are not limited to, investigations related to MS&Co.’s due diligence on the loans that it purchased for securitization, MS&Co.’s communications with ratings agencies, MS&Co.’s disclosures to investors, and MS&Co.’s handling of servicing and foreclosure related issues.

On February 25, 2015, MS&Co. reached an agreement in principle with the United States Department of Justice, Civil Division and the United States Attorney’s Office for the Northern District of California, Civil Division (collectively, the “Civil Division”) to pay $2.6 billion to resolve certain claims that the Civil Division indicated it intended to bring against MS&Co. That settlement was finalized on February 10, 2016.

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On April 1, 2016, the California Attorney General’s Office filed an action against MS&Co. and certain affiliates in California state court styled California v. Morgan Stanley, et al., on behalf of California investors, including the California Public Employees’ Retirement System and the California Teachers’ Retirement System. The complaint alleges that MS&Co. made misrepresentations and omissions regarding RMBS and notes issued by the Cheyne SIV, and asserts violations of the California False Claims Act and other state laws and seeks treble damages, civil penalties, disgorgement, and injunctive relief. On July 20, 2016, MS&Co. filed a demurrer.

In October 2014, the Illinois Attorney General’s Office (“ILAG”) sent a letter to MS&Co. alleging that MS&Co. knowingly made misrepresentations related to RMBS purchased by certain pension funds affiliated with the State of Illinois and demanding that MS&Co. pay ILAG approximately $88 million. MS&Co. and ILAG reached an agreement to resolve the matter on February 10, 2016.

On January 13, 2015, the New York Attorney General’s Office (“NYAG”), which is also a member of the RMBS Working Group, indicated that it intends to file a lawsuit related to approximately 30 subprime securitizations sponsored by MS&Co. NYAG indicated that the lawsuit would allege that MS&Co. misrepresented or omitted material information related to the due diligence, underwriting and valuation of the loans in the securitizations and the properties securing them and indicated that its lawsuit would be brought under the Martin Act. MS&Co. and NYAG reached an agreement to resolve the matter on February 10, 2016.

On June 5, 2012, MS&Co. consented to and became the subject of an Order Instituting Proceedings Pursuant to Sections 6(c) and 6(d) of the Commodity Exchange Act, as amended, Making Findings and Imposing Remedial Sanctions by The Commodity Futures Trading Commission (“CFTC”) to resolve allegations related to the failure of a salesperson to comply with exchange rules that prohibit off-exchange futures transactions unless there is an Exchange for Related Position (“EFRP”). Specifically, the CFTC found that from April 2008 through October 2009, MS&Co. violated Section 4c(a) of the Commodity Exchange Act, as amended (the “CEA”) and CFTC Regulation 1.38 by executing, processing and reporting numerous off-exchange futures trades to the Chicago Mercantile Exchange (“CME”) and Chicago Board of Trade (“CBOT”) as EFRPs in violation of CME and CBOT rules because those trades lacked the corresponding and related cash, OTC swap, OTC option, or other OTC derivative position. In addition, the CFTC found that MS&Co. violated CFTC Regulation 166.3 by failing to supervise the handling of the trades at issue and failing to have adequate policies and procedures designed to detect and deter the violations of the CEA and CFTC Regulations. Without admitting or denying the underlying allegations and without adjudication of any issue of law or fact, MS&Co. accepted and consented to entry of findings and the imposition of a cease and desist order, a fine of $5,000,000, and undertakings related to public statements, cooperation and payment of the fine. MS&Co. entered into corresponding and related settlements with the CME and CBOT in which the CME found that MS&Co. violated CME Rules 432.Q and 538 and fined MS&Co. $750,000 and CBOT found that MS&Co. violated CBOT Rules 432.Q and 538 and fined MS&Co. $1,000,000.

On July 23, 2014, the SEC approved a settlement by MS&Co. and certain affiliates to resolve an investigation related to certain subprime RMBS transactions sponsored and underwritten by those entities in 2007. Pursuant to the settlement, MS&Co. and certain affiliates were charged with violating Sections 17(a)(2) and 17(a)(3) of the Securities Act, agreed to pay disgorgement and penalties in an amount of $275 million and neither admitted nor denied the SEC’s findings.

On April 21, 2015, the Chicago Board Options Exchange, Incorporated (“CBOE”) and the CBOE Futures Exchange, LLC (“CFE”) filed statements of charges against MS&Co. in connection with trading by one of MS&Co.’s former traders of EEM options contracts that allegedly disrupted the final settlement price of the November 2012 VXEM futures. CBOE alleged that MS&Co. violated CBOE Rules 4.1, 4.2 and 4.7, Sections 9(a) and 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. CFE alleged that MS&Co. violated CFE Rules 608, 609 and 620. The matters were resolved on June 28, 2016 without any findings of fraud.

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On June 18, 2015, MS&Co. entered into a settlement with the SEC and paid a fine of $500,000 as part of the MCDC Initiative to resolve allegations that MS&Co. failed to form a reasonable basis through adequate due diligence for believing the truthfulness of the assertions by issuers and/or obligors regarding their compliance with previous continuing disclosure undertakings pursuant to Rule 15c2-12 in connection with offerings in which MS&Co. acted as senior or sole underwriter.

On August 6, 2015, MS&Co. consented to and became the subject of an order by the CFTC to resolve allegations that MS&Co. violated CFTC Regulation 22.9(a) by failing to hold sufficient US Dollars in cleared swap segregated accounts in the United States to meet all US Dollar obligations to cleared swaps customers. Specifically, the CFTC found that while MS&Co. at all times held sufficient funds in segregation to cover its obligations to its customers, on certain days during 2013 and 2014, it held currencies, such as euros, instead of US dollars, to meet its US dollar obligations. In addition, the CFTC found that MS&Co. violated CFTC Regulation 166.3 by failing to have in place adequate procedures to ensure that it complied with CFTC Regulation 22.9(a). Without admitting or denying the findings or conclusions and without adjudication of any issue of law or fact, MS&Co. accepted and consented to the entry of findings, the imposition of a cease and desist order, a civil monetary penalty of $300,000, and undertakings related to public statements, cooperation, and payment of the monetary penalty.

Civil Litigation

On December 23, 2009, the Federal Home Loan Bank of Seattle filed a complaint against MS&Co. and another defendant in the Superior Court of the State of Washington, styled Federal Home Loan Bank of Seattle v. Morgan Stanley & Co. Inc., et al. The amended complaint, filed on September 28, 2010, alleges that defendants made untrue statements and material omissions in the sale to plaintiff of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sold to plaintiff by MS&Co. was approximately $233 million. The complaint raises claims under the Washington State Securities Act and seeks, among other things, to rescind the plaintiff’s purchase of such certificates By orders dated June 23, 2011 and July 18, 2011, the court denied defendants’ omnibus motion to dismiss plaintiff’s amended complaint and on August 15, 2011, the court denied MS&Co.’s individual motion to dismiss the amended complaint. On March 7, 2013, the court granted defendants’ motion to strike plaintiff’s demand for a jury trial. The defendants’ joint motions for partial summary judgment were denied on November 9, 2015. At June 25, 2016, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $44 million, and the certificates had not yet incurred actual losses. Based on currently available information, MS&Co. believes it could incur a loss in this action up to the difference between the $44 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against MS&Co., plus pre- and post-judgment interest, fees and costs. MS&Co. may be entitled to be indemnified for some of these losses and to an offset for interest received by the plaintiff prior to a judgment.

On March 15, 2010, the Federal Home Loan Bank of San Francisco filed a complaint against MS&Co. and other defendants in the Superior Court of the State of California styled Federal Home Loan Bank of San Francisco v. Deutsche Bank Securities Inc. et al. An amended complaint, filed on June 10, 2010, alleges that defendants made untrue statements and material omissions in connection with the sale to plaintiff of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The amount of certificates allegedly sold to plaintiff by MS&Co. was approximately $276 million. The complaint raises claims under both the federal securities laws and California law and seeks, among other things, to rescind the plaintiff’s purchase of such certificates. On August 11, 2011, plaintiff’s federal securities law claims were dismissed with prejudice. On February 9, 2012, defendants’ demurrers with respect to all other claims were overruled. On December 20, 2013, plaintiff’s negligent misrepresentation claims were dismissed with prejudice. At June 25, 2016, the current unpaid balance of the mortgage pass-through certificates at issue in these cases was approximately $55 million, and the certificates had incurred actual losses of approximately $2 million. Based on currently available information, MS&Co. believes it could incur a loss for this action up to the difference between the $55 million unpaid balance of these certificates (plus any losses incurred) and their fair

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market value at the time of a judgment against MS&Co., or upon sale, plus pre- and post-judgment interest, fees and costs. MS&Co. may be entitled to be indemnified for some of these losses and to an offset for interest received by the plaintiff prior to a judgment.

On July 15, 2010, China Development Industrial Bank (“CDIB”) filed a complaint against MS&Co., styled China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al., which is pending in the Supreme Court of the State of New York, New York County (“Supreme Court of NY”). The complaint relates to a $275 million credit default swap referencing the super senior portion of the STACK 2006-1 CDO. The complaint asserts claims for common law fraud, fraudulent inducement and fraudulent concealment and alleges that MS&Co. misrepresented the risks of the STACK 2006-1 CDO to CDIB, and that MS&Co. knew that the assets backing the CDO were of poor quality when it entered into the credit default swap with CDIB. The complaint seeks compensatory damages related to the approximately $228 million that CDIB alleges it has already lost under the credit default swap, rescission of CDIB’s obligation to pay an additional $12 million, punitive damages, equitable relief, fees and costs. On February 28, 2011, the court denied MS&Co.’s motion to dismiss the complaint. Based on currently available information, MS&Co. believes it could incur a loss of up to approximately $240 million plus pre- and post-judgment interest, fees and costs.

On October 15, 2010, the Federal Home Loan Bank of Chicago filed a complaint against MS&Co. and other defendants in the Circuit Court of the State of Illinois, styled Federal Home Loan Bank of Chicago v. Bank of America Funding Corporation et al. A corrected amended complaint was filed on April 8, 2011. The corrected amended complaint alleges that defendants made untrue statements and material omissions in the sale to plaintiff of a number of mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans and asserts claims under Illinois law. The total amount of certificates allegedly sold to plaintiff by MS&Co. at issue in the action was approximately $203 million. The complaint seeks, among other things, to rescind the plaintiff’s purchase of such certificates. The defendants filed a motion to dismiss the corrected amended complaint on May 27, 2011, which was denied on September 19, 2012. On December 13, 2013, the court entered an order dismissing all claims related to one of the securitizations at issue. After that dismissal, the remaining amount of certificates allegedly issued by MS&Co. or sold to plaintiff by MS&Co. was approximately $78 million. At June 25, 2016, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $49 million, and the certificates had not yet incurred actual losses. Based on currently available information, MS&Co. believes it could incur a loss in this action up to the difference between the $49 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against MS&Co., plus pre- and post-judgment interest, fees and costs. MS&Co. may be entitled to be indemnified for some of these losses and to an offset for interest received by the plaintiff prior to a judgment.

On April 20, 2011, the Federal Home Loan Bank of Boston filed a complaint against MS&Co. and other defendants in the Superior Court of the Commonwealth of Massachusetts styled Federal Home Loan Bank of Boston v. Ally Financial, Inc. F/K/A GMAC LLC et al. An amended complaint was filed on June 29, 2012 and alleges that defendants made untrue statements and material omissions in the sale to plaintiff of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly issued by MS&Co. or sold to plaintiff by MS&Co. was approximately $385 million. The amended complaint raises claims under the Massachusetts Uniform Securities Act, the Massachusetts Consumer Protection Act and common law and seeks, among other things, to rescind the plaintiff’s purchase of such certificates. On May 26, 2011, defendants removed the case to the United States District Court for the District of Massachusetts. The defendants’ motions to dismiss the amended complaint were granted in part and denied in part on September 30, 2013. On November 25, 2013, July 16, 2014, and May 19, 2015, respectively, the plaintiff voluntarily dismissed its claims against MS&Co. with respect to three of the securitizations at issue. After these voluntary dismissals, the remaining amount of certificates allegedly issued by MS&Co. or sold to plaintiff by MS&Co. was approximately $332 million. At June 25, 2016, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $53 million, and the certificates had not yet incurred actual losses. Based on currently available information, MS&Co. believes it could incur a loss in this action up to the difference between the $53 million unpaid balance of these

32

certificates (plus any losses incurred) and their fair market value at the time of a judgment against MS&Co., or upon sale, plus pre- and post-judgment interest, fees and costs. MS&Co. may be entitled to be indemnified for some of these losses and to an offset for interest received by the plaintiff prior to a judgment.

On May 3, 2013, plaintiffs in Deutsche Zentral-Genossenschaftsbank AG et al. v. Morgan Stanley et al. filed a complaint against MS&Co., certain affiliates, and other defendants in the Supreme Court of NY. The complaint alleges that defendants made material misrepresentations and omissions in the sale to plaintiffs of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sponsored, underwritten and/or sold by MS&Co. to plaintiff currently at issue in this action was approximately $644 million. The complaint alleges causes of action against MS&Co. for common law fraud, fraudulent concealment, aiding and abetting fraud, negligent misrepresentation, and rescission and seeks, among other things, compensatory and punitive damages. On June 10, 2014, the court granted in part and denied in part MS&Co.’s motion to dismiss the complaint. MS&Co. perfected its appeal from that decision on June 12, 2015. At June 25, 2016, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $258 million, and the certificates had incurred actual losses of approximately $84 million. Based on currently available information, MS&Co. believes it could incur a loss in this action up to the difference between the $258 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against MS&Co., or upon sale, plus pre- and post-judgment interest, fees and costs. MS&Co. may be entitled to be indemnified for some of these losses.

On May 17, 2013, plaintiff in IKB International S.A. in Liquidation, et al. v. Morgan Stanley, et al. filed a complaint against MS&Co. and certain affiliates in the Supreme Court of NY. The complaint alleges that defendants made material misrepresentations and omissions in the sale to plaintiff of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sponsored, underwritten and/or sold by MS&Co. to plaintiff was approximately $132 million. The complaint alleges causes of action against MS&Co. for common law fraud, fraudulent concealment, aiding and abetting fraud, and negligent misrepresentation, and seeks, among other things, compensatory and punitive damages. On October 29, 2014, the court granted in part and denied in part MS&Co.’s motion to dismiss. All claims regarding four certificates were dismissed. After these dismissals, the remaining amount of certificates allegedly issued by MS&Co. or sold to plaintiff by MS&Co. was approximately $116 million. On August 26, 2015, MS&Co. perfected its appeal from the court’s October 29, 2014 decision. At June 25, 2016, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $26 million, and the certificates had incurred actual losses of $58 million. Based on currently available information, MS&Co. believes it could incur a loss in this action up to the difference between the $26 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against MS&Co., or upon sale, plus pre- and post-judgment interest, fees and costs. MS&Co. may be entitled to be indemnified for some of these losses and to an offset for interest received by the plaintiff prior to a judgment.

Settled Civil Litigation

On August 25, 2008, MS&Co. and two ratings agencies were named as defendants in a purported class action related to securities issued by a structured investment vehicle called Cheyne Finance PLC and Cheyne Finance LLC (together, the “Cheyne SIV”). The case was styled Abu Dhabi Commercial Bank, et al. v. Morgan Stanley & Co. Inc., et al. The complaint alleged, among other things, that the ratings assigned to the securities issued by the Cheyne SIV were false and misleading, including because the ratings did not accurately reflect the risks associated with the subprime RMBS held by the Cheyne SIV. The plaintiffs asserted allegations of aiding and abetting fraud and negligent misrepresentation relating to approximately $852 million of securities issued by the Cheyne SIV. On April 24, 2013, the parties reached an agreement to settle the case, and on April 26, 2013, the court dismissed the action with prejudice.

33

On March 15, 2010, the Federal Home Loan Bank of San Francisco filed a complaint against MS&Co. and other defendants in the Superior Court of the State of California styled Federal Home Loan Bank of San Francisco v. Credit Suisse Securities (USA) LLC, et al. An amended complaint filed on June 10, 2010 alleged that defendants made untrue statements and material omissions in connection with the sale to plaintiff of a number of mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The amount of certificates allegedly sold to plaintiff by MS&Co. was approximately $704 million. The complaint raised claims under both the federal securities laws and California law and sought, among other things, to rescind the plaintiff’s purchase of such certificates. On January 26, 2015, as a result of a settlement with certain other defendants, the plaintiff requested and the court subsequently entered a dismissal with prejudice of certain of the plaintiff’s claims, including all remaining claims against MS&Co.

On July 9, 2010 and February 11, 2011, Cambridge Place Investment Management Inc. filed two separate complaints against MS&Co. and/or its affiliates and other defendants in the Superior Court of the Commonwealth of Massachusetts, both styled Cambridge Place Investment Management Inc. v. Morgan Stanley & Co., Inc., et al. The complaints asserted claims on behalf of certain clients of plaintiff’s affiliates and allege that defendants made untrue statements and material omissions in the sale of a number of mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly issued by MS&Co. and/or its affiliates or sold to plaintiff’s affiliates’ clients by MS&Co. and/or its affiliates in the two matters was approximately $263 million. On February 11, 2014, the parties entered into an agreement to settle the litigation. On February 20, 2014, the court dismissed the action.

On October 25, 2010, MS&Co., certain affiliates and Pinnacle Performance Limited, a special purpose vehicle (“SPV”), were named as defendants in a purported class action in the United States District Court for the Southern District of New York (“SDNY”), styled Ge Dandong, et al. v. Pinnacle Performance Ltd., et al. On January 31, 2014, the plaintiffs in the action, which related to securities issued by the SPV in Singapore, filed a second amended complaint, which asserted common law claims of fraud, aiding and abetting fraud, fraudulent inducement, aiding and abetting fraudulent inducement, and breach of the implied covenant of good faith and fair dealing. On July 17, 2014, the parties reached an agreement to settle the litigation, which received final court approval on July 2, 2015.

On July 5, 2011, Allstate Insurance Company and certain of its affiliated entities filed a complaint against MS&Co. in the Supreme Court of NY, styled Allstate Insurance Company, et al. v. Morgan Stanley, et al. An amended complaint was filed on September 9, 2011, and alleges that the defendants made untrue statements and material omissions in the sale to the plaintiffs of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly issued and/or sold to the plaintiffs by MS&Co. was approximately $104 million. The complaint raised common law claims of fraud, fraudulent inducement, aiding and abetting fraud, and negligent misrepresentation and seeks, among other things, compensatory and/or recessionary damages associated with the plaintiffs’ purchases of such certificates. On March 15, 2013, the court denied in substantial part the defendants’ motion to dismiss the amended complaint, which order MS&Co. appealed on April 11, 2013. On May 3, 2013, MS&Co. filed its answer to the amended complaint. On January 16, 2015, the parties reached an agreement to settle the litigation.

On July 18, 2011, the Western and Southern Life Insurance Company and certain affiliated companies filed a complaint against MS&Co. and other defendants in the Court of Common Pleas in Ohio, styled Western and Southern Life Insurance Company, et al. v. Morgan Stanley Mortgage Capital Inc., et al. An amended complaint was filed on April 2, 2012 and alleges that defendants made untrue statements and material omissions in the sale to plaintiffs of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The amount of the certificates allegedly sold to plaintiffs by MS&Co. was approximately $153 million. On June 8, 2015, the parties reached an agreement to settle the litigation.

34

On September 2, 2011, the Federal Housing Finance Agency (“FHFA”), as conservator for Fannie Mae and Freddie Mac, filed 17 complaints against numerous financial services companies, including MS&Co. and certain affiliates. A complaint against MS&Co. and certain affiliates and other defendants was filed in the Supreme Court of NY, styled Federal Housing Finance Agency, as Conservator v. Morgan Stanley et al. The complaint alleges that defendants made untrue statements and material omissions in connection with the sale to Fannie Mae and Freddie Mac of residential mortgage pass-through certificates with an original unpaid balance of approximately $11 billion. The complaint raised claims under federal and state securities laws and common law and seeks, among other things, rescission and compensatory and punitive damages. On February 7, 2014, the parties entered into an agreement to settle the litigation. On February 20, 2014, the court dismissed the action.

On April 25, 2012, Metropolitan Life Insurance Company and certain affiliates filed a complaint against MS&Co. and certain affiliates in the Supreme Court of NY, styled Metropolitan Life Insurance Company, et al. v. Morgan Stanley, et al. An amended complaint was filed on June 29, 2012, and alleges that the defendants made untrue statements and material omissions in the sale to the plaintiffs of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sponsored, underwritten, and/or sold by MS&Co. was approximately $758 million. The amended complaint raised common law claims of fraud, fraudulent inducement, and aiding and abetting fraud and seeks, among other things, rescission, compensatory, and/or rescissionary damages, as well as punitive damages, associated with the plaintiffs’ purchases of such certificates. On April 11, 2014, the parties entered into a settlement agreement.

On April 25, 2012, The Prudential Insurance Company of America and certain affiliates filed a complaint against MS&Co. and certain affiliates in the Superior Court of the State of New Jersey, styled The Prudential Insurance Company of America, et al. v. Morgan Stanley, et al. On October 16, 2012, plaintiffs filed an amended complaint. The amended complaint alleged that defendants made untrue statements and material omissions in connection with the sale to plaintiffs of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sponsored, underwritten and/or sold by MS&Co. was approximately $1.073 billion. The amended complaint raises claims under the New Jersey Uniform Securities Law, as well as common law claims of negligent misrepresentation, fraud, fraudulent inducement, equitable fraud, aiding and abetting fraud, and violations of the New Jersey RICO statute, and includes a claim for treble damages. On January 8, 2016, the parties reached an agreement to settle the litigation.

In re Morgan Stanley Mortgage Pass-Through Certificates Litigation, which had been pending in the SDNY, was a putative class action involving allegations that, among other things, the registration statements and offering documents related to the offerings of certain mortgage pass-through certificates in 2006 and 2007 contained false and misleading information concerning the pools of residential loans that backed these securitizations. On December 18, 2014, the parties’ agreement to settle the litigation received final court approval, and on December 19, 2014, the court entered an order dismissing the action.

On November 4, 2011, the Federal Deposit Insurance Corporation (“FDIC”), as receiver for Franklin Bank S.S.B, filed two complaints against MS&Co. in the District Court of the State of Texas. Each was styled Federal Deposit Insurance Corporation as Receiver for Franklin Bank, S.S.B v. Morgan Stanley & Company LLC F/K/A Morgan Stanley & Co. Inc. and alleged that MS&Co. made untrue statements and material omissions in connection with the sale to plaintiff of mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The amount of certificates allegedly underwritten and sold to plaintiff by MS&Co. in these cases was approximately $67 million and $35 million, respectively. On July 2, 2015, the parties reached an agreement to settle the litigation.

35

On February 14, 2013, Bank Hapoalim B.M. filed a complaint against MS&Co. and certain affiliates in the Supreme Court of NY, styled Bank Hapoalim B.M. v. Morgan Stanley et al. The complaint alleges that defendants made material misrepresentations and omissions in the sale to plaintiff of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sponsored, underwritten and/or sold by MS&Co. to plaintiff was approximately $141 million. On July 28, 2015, the parties reached an agreement to settle the litigation, and on August 12, 2015, the plaintiff filed a stipulation of discontinuance with prejudice.

On September 23, 2013, the plaintiff in National Credit Union Administration Board v. Morgan Stanley & Co. Inc., et al. filed a complaint against MS&Co. and certain affiliates in the SDNY. The complaint alleged that defendants made untrue statements of material fact or omitted to state material facts in the sale to the plaintiff of certain mortgage pass-through certificates issued by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sponsored, underwritten and/or sold by MS&Co. to plaintiffs in the matter was approximately $417 million. The complaint alleged violations of federal and various state securities laws and sought, among other things, rescissionary and compensatory damages. On November 23, 2015, the parties reached an agreement to settle the matter.

On September 16, 2014, the Virginia Attorney General’s Office filed a civil lawsuit, styled Commonwealth of Virginia ex rel. Integra REC LLC v. Barclays Capital Inc., et al., against MS&Co. and several other defendants in the Circuit Court of the City of Richmond related to RMBS. The lawsuit alleged that MS&Co. and the other defendants knowingly made misrepresentations and omissions related to the loans backing RMBS purchased by the Virginia Retirement System. The complaint asserts claims under the Virginia Fraud Against Taxpayers Act, as well as common law claims of actual and constructive fraud, and seeks, among other things, treble damages and civil penalties. On January 6, 2016, the parties reached an agreement to settle the litigation. An order dismissing the action with prejudice was entered on January 28, 2016.

Additional lawsuits containing claims similar to those described above may be filed in the future. In the course of its business, MS&Co., as a major futures commission merchant, is party to various civil actions, claims and routine regulatory investigations and proceedings that the General Partner believes do not have a material effect on the business of MS&Co. MS&Co. may establish reserves from time to time in connections with such actions.

36

Item 1A.    Risk Factors

There have been no material changes to the risk factors set forth under Part I, Item 1A. “Risk Factors” in the Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and under Part II, Item 1A. “Risk Factors” in the Partnership’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016.

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

The Partnership no longer offers Units.

The following chart sets forth the purchases of Units by the Partnership.

				(d) Maximum Number (or
			(c) Total Number of	Approximate Dollar
			Units Purchased as Part	Value) of Units that May
	(a) Total Number of	(b) Average Price	of Publicly Announced	Yet Be Purchased Under
Period	Units Purchased *	Paid per Unit **	Plans or Programs	the Plans or Programs
April 1, 2016 - April 30, 2016	49,236.363	$                     26.32	N/A	N/A
May 1, 2016 - May 31, 2016	36,608.332	$                     25.50	N/A	N/A
June 1, 2016 - June 30, 2016	51,904.317	$                     26.71	N/A	N/A
	137,749.012	$                     26.25

* Generally, limited partners are permitted to redeem their Units as of the end of each month on three business days’ notice to the General Partner. Under certain circumstances, the General Partner can compel redemption, although to date, the General Partner has not exercised this right. Purchases of Units by the Partnership reflected in the chart above were made in the ordinary course of the Partnership’s business in connection with effecting redemptions for limited partners.

** Redemptions of Units are effected as of the last day of each month at the net asset value per Unit as of that day. No fee will be charged for redemptions.

Item 3.   Defaults Upon Senior Securities — None.

Item 4.   Mine Safety Disclosures — Not applicable.

Item 5.   Other Information — None.

37

Item 6. Exhibits

31.01	Certification of President and Director of Ceres Managed Futures LLC, the General Partner of the Partnership, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.02	Certification of Chief Financial Officer and Director of Ceres Managed Futures LLC, the General Partner of the Partnership, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.01	Certification of President and Director of Ceres Managed Futures LLC, the General Partner of the Partnership, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.02	Certification of Chief Financial Officer and Director of Ceres Managed Futures LLC, the General Partner of the Partnership, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Document
101.PRE*	XBRL Taxonomy Extension Presentation Document
101.DEF*	XBRL Taxonomy Extension Definition Document

Notes to Exhibits List

* Submitted electronically herewith.

38

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.

MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

By:	Ceres Managed Futures LLC (General Partner)
By:	/s/ Patrick T. Egan Patrick T. Egan President and Director
Date: August 11, 2016
By:	/s/ Steven Ross
	Steven Ross
	Chief Financial Officer and Director
	(Principal Accounting Officer)
Date: August 11, 2016

39

EX-31.01

Exhibit 31.01

CERTIFICATIONS

I, Patrick T. Egan, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Morgan Stanley Smith Barney Spectrum Select L.P.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 11, 2016

/s/ Patrick T. Egan

Patrick T. Egan

Ceres Managed Futures LLC

President and Director

EX-31.02

Exhibit 31.02

CERTIFICATIONS

I, Steven Ross, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Morgan Stanley Smith Barney Spectrum Select L.P.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 11, 2016

/s/ Steven Ross

Steven Ross

Ceres Managed Futures LLC

Chief Financial Officer and Director

EX-32.01

Exhibit 32.01

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Morgan Stanley Smith Barney Spectrum Select L.P. (the “Partnership”) on Form 10-Q for the period ended June 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Patrick T. Egan, President and Director of Ceres Managed Futures LLC, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

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

/s/ Patrick T. Egan

Patrick T. Egan

Ceres Managed Futures LLC

President and Director

Date: August 11, 2016

EX-32.02

Exhibit 32.02

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Morgan Stanley Smith Barney Spectrum Select L.P. (the “Partnership”) on Form 10-Q for the period ended June 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Steven Ross, Chief Financial Officer and Director of Ceres Managed Futures LLC, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

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

/s/ Steven Ross

Steven Ross

Ceres Managed Futures LLC

Chief Financial Officer and Director

Date: August 11, 2016

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 31, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Trading Symbol	DWSF
Entity Registrant Name	MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT LP
Entity Central Index Key	0000873799
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		2,963,277.415

XML

Statements of Financial Condition - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Equity in trading account:
Unrestricted cash	$ 56,692,879	$ 23,029,544
Restricted cash	8,138,279	14,906,464
Total equity in trading account	83,447,607	94,872,481
Cash at bank	608
Interest receivable	8,653	3,540
Total assets	83,456,868	94,876,021
Liabilities:
Redemptions payable to Limited Partners	1,386,364	1,554,009
Redemptions payable to General Partner	50,000
Accrued expenses:
Ongoing placement agent fees	131,724	163,603
General Partner fees	131,724	163,603
Management fees	101,906	141,356
Total liabilities	2,139,699	2,022,571
Partners' Capital:
Limited Partners (3,012,664.055 and 3,285,860.484 Units at June 30, 2016 and December 31, 2015, respectively)	80,453,731	91,783,172
General Partner (32,332.233 and 38,316.597 Units at June 30, 2016 and December 31, 2015, respectively)	863,438	1,070,278
Total partners' capital (net asset value)	81,317,169	92,853,450
Total liabilities and partners' capital	$ 83,456,868	$ 94,876,021
Net asset value per Unit	$ 26.71	$ 27.93
U.S. Treasury Bills [Member]
Equity in trading account:
Investment in U.S. Treasury bills, at fair value (amortized cost $15,992,566 and $55,497,357 at June 30, 2016 and December 31, 2015, respectively)	$ 15,997,324	$ 55,493,206
Futures Contracts [Member]
Equity in trading account:
Net unrealized appreciation (depreciation) on open contracts	2,619,125	1,399,436
Forward Contracts [Member]
Equity in trading account:
Net unrealized appreciation (depreciation) on open contracts	$ (337,981)	$ 43,831

XML

Statements of Financial Condition (Parenthetical) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Limited Partners, Units	3,012,664.055	3,285,860.484
General Partner, Units	32,332.233	38,316.597
U.S. Treasury Bills [Member]
Investments in U.S. Treasury bills, amortized cost	$ 15,992,566	$ 55,497,357

XML

Condensed Schedule of Investments	Jun. 30, 2016 USD ($) Contract	Dec. 31, 2015 USD ($) Contract
Futures Contracts [Member]
Schedule of Investments [Line Items]
Net unrealized appreciation (depreciation) on open contracts	$ 2,619,125	$ 1,399,436
% of Partners' Capital	3.22%	1.51%
Futures Contracts [Member] | Long [Member]
Schedule of Investments [Line Items]
Net unrealized appreciation (depreciation) on open contracts	$ 2,923,321	$ (457,207)
% of Partners' Capital	3.60%	(0.49%)
Futures Contracts [Member] | Long [Member] | Commodity [Member]
Schedule of Investments [Line Items]
Number of Contracts | Contract	684	904
Net unrealized appreciation (depreciation) on open contracts	$ 539,482	$ (208,668)
% of Partners' Capital	0.66%	(0.22%)
Futures Contracts [Member] | Long [Member] | Equity [Member]
Schedule of Investments [Line Items]
Number of Contracts | Contract	229	322
Net unrealized appreciation (depreciation) on open contracts	$ 39,993	$ (106,384)
% of Partners' Capital	0.05%	(0.11%)
Futures Contracts [Member] | Long [Member] | Foreign Currency [Member]
Schedule of Investments [Line Items]
Number of Contracts | Contract	77	324
Net unrealized appreciation (depreciation) on open contracts	$ 94,973	$ 39,948
% of Partners' Capital	0.12%	0.04%
Futures Contracts [Member] | Long [Member] | Interest Rate [Member]
Schedule of Investments [Line Items]
Number of Contracts | Contract	2,675	2,232
Net unrealized appreciation (depreciation) on open contracts	$ 2,248,873	$ (182,103)
% of Partners' Capital	2.77%	(0.20%)
Futures Contracts [Member] | Short [Member]
Schedule of Investments [Line Items]
Net unrealized appreciation (depreciation) on open contracts	$ (304,196)	$ 1,856,643
% of Partners' Capital	(0.38%)	2.00%
Futures Contracts [Member] | Short [Member] | Commodity [Member]
Schedule of Investments [Line Items]
Number of Contracts | Contract	226	1,571
Net unrealized appreciation (depreciation) on open contracts	$ (45,193)	$ 1,290,224
% of Partners' Capital	(0.06%)	1.39%
Futures Contracts [Member] | Short [Member] | Equity [Member]
Schedule of Investments [Line Items]
Number of Contracts | Contract	126	247
Net unrealized appreciation (depreciation) on open contracts	$ 11,446	$ (118,017)
% of Partners' Capital	0.01%	(0.13%)
Futures Contracts [Member] | Short [Member] | Foreign Currency [Member]
Schedule of Investments [Line Items]
Number of Contracts | Contract	94	872
Net unrealized appreciation (depreciation) on open contracts	$ (59,972)	$ 696,386
% of Partners' Capital	(0.07%)	0.75%
Futures Contracts [Member] | Short [Member] | Interest Rate [Member]
Schedule of Investments [Line Items]
Number of Contracts | Contract	185	1,866
Net unrealized appreciation (depreciation) on open contracts	$ (210,477)	$ (11,950)
% of Partners' Capital	(0.26%)	(0.01%)
U.S. Government Securities [Member]
Schedule of Investments [Line Items]
Total Investment in Funds	$ 15,997,324	$ 55,493,206
% of Partners' Capital	19.67%	59.76%
U.S. Government Securities [Member] | U.S. Treasury bills, 0.205% [Member]
Schedule of Investments [Line Items]
Total Investment in Funds	$ 3,999,955
% of Partners' Capital	4.92%
U.S. Government Securities [Member] | U.S. Treasury bills, 0.265% [Member]
Schedule of Investments [Line Items]
Total Investment in Funds	$ 11,997,369
% of Partners' Capital	14.75%
U.S. Government Securities [Member] | U.S. Treasury bills, 0.015% [Member]
Schedule of Investments [Line Items]
Total Investment in Funds		$ 32,744,699
% of Partners' Capital		35.26%
U.S. Government Securities [Member] | U.S. Treasury bills, 0.0125% [Member]
Schedule of Investments [Line Items]
Total Investment in Funds		$ 22,748,507
% of Partners' Capital		24.50%
Forward Contracts [Member]
Schedule of Investments [Line Items]
Percentage of Partners' Capital	2.58%	1.26%
Unrealized Appreciation on Open Forward Contracts	$ 2,096,970	$ 1,168,919
Unrealized Depreciation on Open Forward Contracts	(2,434,951)	(1,125,088)
Net unrealized appreciation (depreciation) on open contracts	$ (337,981)	$ 43,831
Percentage of Partners' Capital	(3.00%)	(1.21%)
% of Partners' Capital	(0.42%)	0.05%
Forward Contracts [Member] | Commodity [Member]
Schedule of Investments [Line Items]
Percentage of Partners' Capital	0.79%	0.80%
Unrealized Appreciation on Open Forward Contracts	$ 640,314	$ 740,942
Unrealized Depreciation on Open Forward Contracts	$ (1,469,694)	$ (954,788)
Percentage of Partners' Capital	(1.81%)	(1.03%)
Forward Contracts [Member] | Commodity [Member] | Net Unrealized Appreciation on Open Forward Contracts [Member]
Schedule of Investments [Line Items]
Number of Contracts | Contract	325	268
Forward Contracts [Member] | Commodity [Member] | Net Unrealized Depreciation on Open Forward Contracts [Member]
Schedule of Investments [Line Items]
Number of Contracts | Contract	428	511
Forward Contracts [Member] | Foreign Currency [Member]
Schedule of Investments [Line Items]
Percentage of Partners' Capital	1.79%	0.46%
Notional Amount	$ 52,191,264	$ 38,883,013
Unrealized Appreciation on Open Forward Contracts	1,456,656	427,977
Notional Amount	21,117,263	20,675,394
Unrealized Depreciation on Open Forward Contracts	$ (965,257)	$ (170,300)
Percentage of Partners' Capital	(1.19%)	(0.18%)

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Condensed Schedule of Investments (Parenthetical) - U.S. Government Securities [Member] - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
U.S. Treasury bills, 0.205% [Member]
Schedule of Investments [Line Items]
Investment in U.S. Treasury bills, Amortized cost	$ 3,998,838
Investment, interest rate	0.205%
Face amount	$ 4,000,000
Maturity date	Jul. 07, 2016
U.S. Treasury bills, 0.265% [Member]
Schedule of Investments [Line Items]
Investment in U.S. Treasury bills, Amortized cost	$ 11,993,728
Investment, interest rate	0.265%
Face amount	$ 12,000,000
Maturity date	Aug. 11, 2016
U.S. Treasury bills, 0.015% [Member]
Schedule of Investments [Line Items]
Investment in U.S. Treasury bills, Amortized cost		$ 32,748,076
Investment, interest rate		0.015%
Face amount		$ 32,750,000
Maturity date		Mar. 03, 2016
U.S. Treasury bills, 0.0125% [Member]
Schedule of Investments [Line Items]
Investment in U.S. Treasury bills, Amortized cost		$ 22,749,281
Investment, interest rate		0.0125%
Face amount		$ 22,750,000
Maturity date		Jan. 21, 2016

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Statements of Income and Expenses - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Investment Income:
Interest income		$ 34,636	$ 1,767	$ 73,759	$ 3,924
Expenses:
General Partner fees		413,695	582,338	883,497	1,188,209
Ongoing placement agent fees		413,695	582,338	883,497	1,188,209
Management fees		318,846	508,757	677,901	1,038,162
Total expenses		1,146,236	1,673,433	2,444,895	3,414,580
Net investment income (loss)		(1,111,600)	(1,671,666)	(2,371,136)	(3,410,656)
Net gains (losses) on trading of commodity interests:
Net realized gains (losses) on closed contracts		(3,377,509)	(4,248,789)	(2,393,222)	7,622,229
Net change in unrealized gains (losses) on open contracts		2,802,697	(5,178,368)	836,678	(8,950,423)
Total trading results		(574,812)	(9,427,157)	(1,556,544)	(1,328,194)
Net income (loss)		(1,686,412)	(11,098,823)	(3,927,680)	(4,738,850)
Net income (loss) allocation:
Limited Partners		(1,668,983)	(10,976,614)	(3,890,840)	(4,687,340)
General Partner		$ (17,429)	$ (122,209)	$ (36,840)	$ (51,510)
Net income (loss) per Unit:
Limited Partners	[1]	$ (0.50)	$ (2.98)	$ (1.22)	$ (1.35)
General Partner	[1]	$ (0.50)	$ (2.98)	$ (1.22)	$ (1.35)
Weighted average number of Units outstanding		3,139,590.239	3,740,970.066	3,213,280.897	3,802,077.838

[1] Represents the change in net asset value per Unit during the period.

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Statements of Changes in Partners' Capital - USD ($)	Total	Limited Partners [Member]	General Partner [Member]
Partners' Capital, balance at Dec. 31, 2014	$ 117,882,791	$ 116,569,858	$ 1,312,933
Units of Partnership Interest, balance at Dec. 31, 2014	3,905,473.827
Net Income (Loss)	$ (4,738,850)	(4,687,340)	(51,510)
Redemptions	$ (7,977,659)	(7,900,996)	(76,663)
Redemptions (in units)	(258,292.149)
Partners' Capital, balance at Jun. 30, 2015	$ 105,166,282	103,981,522	1,184,760
Units of Partnership Interest, balance at Jun. 30, 2015	3,647,181.678
Partners' Capital, balance at Dec. 31, 2015	$ 92,853,450	91,783,172	1,070,278
Units of Partnership Interest, balance at Dec. 31, 2015	3,324,177.081
Net Income (Loss)	$ (3,927,680)	(3,890,840)	(36,840)
Redemptions	$ (7,608,601)	(7,438,601)	(170,000)
Redemptions (in units)	(279,180.793)
Partners' Capital, balance at Jun. 30, 2016	$ 81,317,169	$ 80,453,731	$ 863,438
Units of Partnership Interest, balance at Jun. 30, 2016	3,044,996.288

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Organization

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Organization

1. Organization:

Morgan Stanley Smith Barney Spectrum Select L.P. (the “Partnership”) is a Delaware limited partnership organized in 1991 to engage primarily in the speculative trading of futures contracts, options on futures and forward contracts, and forward contracts on physical commodities and other commodity interests, including, but not limited to, foreign currencies, financial instruments, metals, energy, and agricultural products (collectively, “Futures Interests”) (refer to Note 4, “Financial Instruments”). The General Partner (defined below) may also determine to invest up to all of the Partnership’s assets in United States (“U.S.”) Treasury bills and/or money market mutual funds, including money market mutual funds managed by Morgan Stanley or its affiliates. The Partnership is one of the Morgan Stanley Spectrum series of funds, comprised of the Partnership, Morgan Stanley Smith Barney Spectrum Currency and Commodity L.P., Morgan Stanley Smith Barney Spectrum Technical L.P. and Morgan Stanley Smith Barney Spectrum Strategic L.P.

Ceres Managed Futures LLC, a Delaware limited liability company, acts as the general partner (“Ceres” or the “General Partner”) and commodity pool operator for the Partnership. Ceres is a wholly-owned subsidiary of Morgan Stanley Smith Barney Holdings LLC (“MSSBH”). MSSBH is wholly-owned indirectly by Morgan Stanley. Morgan Stanley Smith Barney LLC is doing business as Morgan Stanley Wealth Management (“Morgan Stanley Wealth Management”). Morgan Stanley Wealth Management is a principal subsidiary of MSSBH.

During the reporting periods ended June 30, 2016 and 2015, the Partnership’s commodity broker was Morgan Stanley & Co. LLC (“MS&Co.”), a registered futures commission merchant. MS&Co. also acts as the counterparty on all trading of foreign currency forward contracts. MS&Co. is a wholly-owned subsidiary of Morgan Stanley. The Partnership also deposits a portion of its cash in a non-trading account at JPMorgan Chase Bank, N.A. The trading advisors to the Partnership are EMC Capital Management, Inc. (“EMC”), Graham Capital Management, L.P. (“Graham”) and Rabar Market Research, Inc. (“Rabar”) (individually, a “Trading Advisor”, or collectively, the “Trading Advisors”).

Effective June 30, 2016, the General Partner terminated the management agreement, dated as of October 9, 2007, as amended, among the Partnership, the General Partner and Altis Partners (Jersey) Limited (“Altis”), pursuant to which Altis traded a portion of the Partnership’s assets. Consequently, Altis ceased all Futures Interest trading on behalf of the Partnership. References herein to the Trading Advisor or the Trading Advisors may also include, as relevant, Altis.

In July 2015, the General Partner delegated certain administrative functions to SS&C Technologies, Inc., a Delaware corporation, currently doing business as SS&C GlobeOp (the “Administrator”). Pursuant to a master services agreement, the Administrator furnishes certain administrative, accounting, regulatory, reporting, tax and other services as agreed from time to time. In addition, the Administrator maintains certain books and records of the Partnership. The General Partner pays or reimburses the Partnership, from the General Partner fee (formerly, the administrative fee) it receives from the Partnership, the ordinary administrative expenses of the Partnership. This includes the expenses related to the engagement of the Administrator. Therefore, the engagement of the Administrator did not impact the Partnership’s break-even point.

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Basis of Presentation and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

2. Basis of Presentation and Summary of Significant Accounting Policies:

The accompanying financial statements and accompanying notes are unaudited but, in the opinion of the General Partner, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Partnership’s financial condition at June 30, 2016, the results of its operations for the three and six months ended June 30, 2016 and 2015, and changes in partners’ capital for the six months ended June 30, 2016 and 2015. These financial statements present the results of interim periods and do not include all of the disclosures normally provided in annual financial statements. These financial statements should be read together with the financial statements and notes included in the Partnership’s December 31, 2015 Annual Report on Form 10-K (the “Form10-K”) filed with the Securities and Exchange Commission (the “SEC”) for the year ended December 31, 2015. The December 31, 2015 information has been derived from the audited financial statements as of and for the year ended December 31, 2015.

Due to the nature of commodity trading, the results of operations for the interim periods presented should not be considered indicative of the results that may be expected for the entire year.

Use of Estimates: The preparation of financial statements and accompanying notes in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the General Partner to make estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses, and related disclosures of contingent assets and liabilities in the financial statements and accompanying notes. As a result, actual results could differ from these estimates.

Statement of Cash Flows: The Partnership is not required to provide a Statement of Cash Flows.

Partnership’s Investments: All commodity interests of the Partnership, including derivative financial instruments and derivative commodity instruments, are held for trading purposes. The commodity interests are recorded on trade date and open contracts are recorded at fair value (as described in Note 6, “Fair Value Measurements”) at the measurement date. Investments in commodity interests denominated in foreign currencies are translated into U.S. dollars at the exchange rates prevailing at the measurement date. Gains or losses are realized when contracts are liquidated and are determined using the first-in, first-out method. Unrealized gains or losses on open contracts are included as a component of equity in trading account in the Partnership’s Statements of Financial Condition. Net realized gains or losses and net change in unrealized gains or losses are included in the Partnership’s Statements of Income and Expenses.

Restricted and Unrestricted Cash: As reflected on the Partnership’s Statements of Financial Condition, restricted cash equals the cash portion of assets on deposit to meet margin requirements plus the cash required to offset unrealized losses on foreign currency forward and option contracts and offset unrealized losses only on the offsetting London Metal Exchange positions. All of these amounts are maintained separately. Cash available for Futures Interest trading that is not classified as restricted cash is therefore classified as unrestricted cash. Restricted and unrestricted cash includes cash denominated in foreign currencies of $(140,003) (proceeds of $157,934) and $(924,554) (proceeds of $943,684) as of June 30, 2016 and December 31, 2015, respectively.

Investment Company Status: Effective January 1, 2014, the Partnership adopted Accounting Standards Update (“ASU”) 2013-08, “Financial Services — Investment Companies (Topic 946): Amendments to the Scope, Measurement and Disclosure Requirements” and based on the General Partner’s assessment, the Partnership has been deemed to be an investment company since inception. Accordingly, the Partnership follows the investment company accounting and reporting guidance of Topic 946 and reflects its investments at fair value with unrealized gains and losses resulting from changes in fair value reflected in the Statements of Income and Expenses.

Income Taxes: Income taxes have not been listed as each partner is individually liable for the taxes, if any, on its share of the Partnership’s income and expenses. The General Partner concluded that no provision for income tax is required in the Partnership’s financial statements. The Partnership files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The 2012 through 2015 tax years remain subject to examination by U.S. federal and most state tax authorities. The General Partner does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Net Income (Loss) per Unit: Net income (loss) per unit of limited partnership interest (“Unit(s)”) is calculated in accordance with ASU 946, “Financial Services – Investment Companies.” See Note 3, “Financial Highlights.”

Fair Value of Financial Instruments: The carrying value of the Partnership’s assets and liabilities presented in the Statements of Financial Condition that qualify as financial instruments under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 825, “Financial Instruments,” approximates fair value due to the short term nature of such balances.

Recent Accounting Pronouncement: In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” The amendments in this update address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments for all entities that hold financial assets or owe financial liabilities. One of the amendments in this update eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet or a description of changes in the methods and significant assumptions. Additionally, the update eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities. Investment companies are specifically exempted from ASU 2016-01’s equity investment accounting provisions and will continue to follow the industry specific guidance for investment accounting under Topic 946. For public business entities, this update is effective for fiscal years beginning after December 15, 2017, and interim periods therein. For other entities, it is effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. The General Partner is currently evaluating the impact this guidance will have on the Partnership’s financial statements and related disclosures.

Reclassification: Certain prior period amounts have been reclassified to conform to current period presentation. Amounts previously presented as net unrealized gain (loss) on open contracts in the Statements of Financial Condition are now reported as net unrealized appreciation on open futures contracts, net unrealized depreciation on open futures contracts, net unrealized appreciation on open forward contracts and net unrealized depreciation on open forward contracts, as applicable. In addition, amounts previously presented as futures and forward contracts purchased and futures and forward contracts sold on the Condensed Schedules of Investments are now reported as futures contracts purchased, futures contracts sold, unrealized appreciation on open forward contracts and unrealized depreciation on open forward contracts, as applicable.

There have been no material changes with respect to the Partnership’s critical accounting policies as reported in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2015.

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Financial Highlights

6 Months Ended

Jun. 30, 2016

Text Block [Abstract]

Financial Highlights

3. Financial Highlights:

Financial highlights for the limited partner class for the three and six months ended June 30, 2016 and 2015 were as follows:

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Per Unit Performance (for a unit outstanding throughout the period): *
Net realized and unrealized gains (losses)	$	(0.14)	$	(2.53)	$	(0.48)	$	(0.45)
Net investment loss		(0.36)		(0.45)		(0.74)		(0.90)
Net increase (decrease) for the period		(0.50)		(2.98)		(1.22)		(1.35)
Net asset value per Unit, beginning of period		27.21		31.81		27.93		30.18
Net asset value per Unit, end of period	$	26.71	$	28.83	$	26.71	$	28.83
	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Ratios to Average Limited Partners’ Capital: **
Net investment loss ***		(5.4)%		(5.9)%		(5.5)%		(5.9)%
Operating expenses before incentive fees		5.6%		5.9%		5.6%		5.9%
Incentive fees		-%		-%		-%		-%
Operating expenses after incentive fees		5.6%		5.9%		5.6%		5.9%
Total return:
Total return before incentive fees		(1.8)%		(9.4)%		(4.4)%		(4.5)%
Incentive fees		-%		-%		-%		-%
Total return after incentive fees		(1.8)%		(9.4)%		(4.4)%		(4.5)%

* Net investment loss per Unit is calculated by dividing the expenses net of interest income by the average number of Units outstanding during the period. The net realized and unrealized gains (losses) per Unit is a balancing amount necessary to reconcile the change in net asset value per Unit with the other per unit information.

** Annualized (except for incentive fees, if applicable).

*** Interest income less total expenses.

The above ratios and total return may vary for individual investors based on the timing of capital transactions during the period. Additionally, these ratios are calculated for the limited partner class using the limited partners’ share of income, expenses and average partners’ capital.

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Financial Instruments

6 Months Ended

Jun. 30, 2016

Investments, All Other Investments [Abstract]

Financial Instruments

4. Financial Instruments:

The Partnership trades Futures Interests. Futures and forwards represent contracts for delayed delivery of an instrument at a specified date and price. Futures Interests are open commitments until the settlement date, at which time they are realized. They are valued at fair value, generally on a daily basis, and the unrealized gains and losses on open contracts (the difference between contract trade price and market price) are reported in the Statements of Financial Condition as a net unrealized gain or loss on open futures or forward contracts. The resulting net change in unrealized gains and losses is reflected in the “Net change in unrealized gains (losses) on open contracts” in the Statements of Income and Expenses. The Partnership’s contracts are accounted for on a trade-date basis. Risk arises from changes in the value of these contracts and the potential inability of counterparties to perform under the terms of the contracts. There are numerous factors which may significantly influence the fair value of these contracts, including interest rate volatility.

The fair value of an exchange-traded contract is based on the settlement price quoted by the exchange on the day with respect to which fair value is being determined. If an exchange-traded contract could not have been liquidated on such day due to the operation of daily limits or other rules of the exchange, the settlement price will be equal to the settlement price on the first subsequent day on which the contract could be liquidated.

The Partnership’s contracts are accounted for on a trade-date basis. Gains or losses are realized when contracts are liquidated and are determined using the first-in, first-out method.

In general, the risks associated with off-exchange-traded contracts are greater than those associated with exchange-traded contracts because of the greater risk of default by the counterparty to an off-exchange-traded contract. The Partnership has credit risk associated with counterparty nonperformance. As of the date of the financial statements, the credit risk associated with the instruments in which the Partnership trades is limited to the unrealized gain amounts reflected in the Partnership’s Statements of Financial Condition.

The Partnership also has credit risk because MS&Co. acts as the commodity futures broker, or the counterparty, with respect to most of the Partnership’s assets. Exchange-traded futures and exchange-traded forward contracts are fair valued on a daily basis, with variations in value settled on a daily basis. MS&Co., which is acting as a commodity futures broker for the Partnership’s exchange-traded futures and exchange-traded forward contracts is required, pursuant to regulations of the Commodity Futures Trading Commission (“CFTC”), to segregate from its own assets, and for the sole benefit of its commodity customers, total cash held by it with respect to exchange-traded futures and exchange traded forward contracts, including an amount equal to the net unrealized gains (losses) on all open exchange-traded futures and exchange traded forward contracts, which, in the aggregate, totaled $66,620,903 and $39,121,598 at June 30, 2016 and December 31, 2015, respectively. With respect to the Partnership’s off-exchange-traded forward currency contracts and forward currency option contracts, there are no daily settlements of variation in value, nor is there any requirement that an amount equal to the net unrealized gains (losses) on such contracts be segregated. However, the Partnership is required to meet margin requirements equal to the net unrealized loss on open forward currency contracts in the Partnership’s accounts with the counterparty, which is accomplished by daily maintenance of the cash balance in custody accounts held at MS&Co., for the benefit of MS&Co. With respect to those off-exchange-traded forward currency contracts, the Partnership is at risk to the ability of MS&Co., the sole counterparty on all such contracts, to perform. The Partnership has a netting agreement with the counterparty. The primary terms are based on industry standard master netting agreements. This agreement, which seeks to reduce both the Partnership’s and the counterparty’s exposure on off-exchange-traded forward currency contracts, should materially decrease the Partnership’s credit risk in the event of MS&Co.’s bankruptcy or insolvency.

The Partnership does not isolate the portion of the results of operations arising from the effect of changes in foreign exchange rates on investments from fluctuations due to changes in market prices of investments held. Such fluctuations are included in net income (loss) in the Statements of Income and Expenses.

The General Partner monitors and attempts to control the Partnership’s risk exposure on a daily basis through financial, credit and risk management monitoring systems, and accordingly, believes that it has effective procedures for evaluating and limiting the credit and market risks to which the Partnership may be subject. These monitoring systems generally allow the General Partner to statistically analyze actual trading results with risk adjusted performance indicators and correlation statistics. In addition, online monitoring systems provide account analysis of futures and forward contracts by sector, margin requirements, gain and loss transactions and collateral positions.

The futures and forwards traded by the Partnership, along with the U.S. Treasury bills held by the Partnership, involve varying degrees of related market risk. Market risk is often dependent upon changes in the level or volatility of interest rates, exchange rates, and prices of financial instruments and commodities, factors that result in frequent changes in the fair value of the Partnership’s open positions, and consequently in its earnings, whether realized or unrealized, and cash flow.

Gains and losses on open positions of exchange-traded futures and exchange-traded forward contracts are settled daily through variation margin. Gains and losses on off-exchange-traded forward currency contracts are settled upon termination of the contract.

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Trading Activities

6 Months Ended

Jun. 30, 2016

Brokers and Dealers [Abstract]

Trading Activities

5. Trading Activities:

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.

All of the commodity interests owned by the Partnership are held for trading purposes. The monthly average number of futures contracts traded during the three months ended June 30, 2016 and 2015 were 5,781 and 7,761, respectively. The monthly average number of futures contracts traded during the six months ended June 30, 2016 and 2015 were 7,038 and 8,095, respectively. The monthly average number of metals forward contracts traded during the three months ended June 30, 2016 and 2015 were 1,168 and 1,305, respectively. The monthly average number of metals forward contracts traded during the six months ended June 30, 2016 and 2015 were 1,209 and 1,175, respectively. The monthly average notional values of currency forward contracts traded during the three months ended June 30, 2016 and 2015 were $118,755,428 and $137,214,414, respectively. The monthly average notional values of currency forward contracts traded during the six months ended June 30, 2016 and 2015 were $115,451,266 and $135,302,544, respectively.

The following tables summarize the gross and net amounts recognized relating to the assets and liabilities of the Partnership’s derivatives and their offsetting subject to master netting agreements or similar agreements as of June 30, 2016 and December 31, 2015, respectively.

			Gross Amounts		Amounts		Gross Amounts not Offset in the
			Offset in the		Presented in the		Statements of Financial Condition
			Statements of		Statements of				Cash Collateral
	Gross Amounts		Financial		Financial		Financial		Received/
June 30, 2016	Recognized		Condition		Condition		Instruments		Pledged*		Net Amount
Assets
Futures	$	3,839,879	$	(1,220,754)	$	2,619,125	$	-	$	-	$	2,619,125
Forwards		2,096,970		(2,096,970)		-		-		-		-
Total assets	$	5,936,849	$	(3,317,724)	$	2,619,125	$	-	$	-	$	2,619,125
Liabilities
Futures	$	(1,220,754)	$	1,220,754	$	-	$	-	$	-	$	-
Forwards		(2,434,951)		2,096,970		(337,981)		-		-		(337,981)
Total liabilities	$	(3,655,705)	$	3,317,724	$	(337,981)	$	-	$	-	$	(337,981)
Net fair value											$	2,281,144	*

December 31, 2015	Gross Amounts Recognized		Gross Amounts Offset in the Statements of Financial Condition		Amounts Presented in the Statements of Financial Condition		Gross Amounts not Offset in the Statements of Financial Condition				Net Amount
							Financial Instruments		Cash Collateral Received/ Pledged*
Assets
Futures	$	3,831,162	$	(2,431,726)	$	1,399,436	$	-	$	-	$	1,399,436
Forwards		1,168,919		(1,125,088)		43,831		-		-		43,831
Total assets	$	5,000,081	$	(3,556,814)	$	1,443,267	$	-	$	-	$	1,443,267
Liabilities
Futures	$	(2,431,726)	$	2,431,726	$	-	$	-	$	-	$	-
Forwards		(1,125,088)		1,125,088		-		-		-		-
Total liabilities	$	(3,556,814)	$	3,556,814	$	-	$	-	$	-	$	-
Net fair value											$	1,443,267	*

* 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 and/or U.S. Treasury bills 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 following tables indicate the gross fair values of derivative instruments of futures and forward contracts as separate assets and liabilities as of June 30, 2016 and December 31, 2015, respectively.

	June 30, 2016
Assets
Futures Contracts
Commodity	$	1,082,519
Equity		358,731
Foreign currency		113,861
Interest rate		2,284,768
Total unrealized appreciation on open futures contracts		3,839,879
Liabilities
Futures Contracts
Commodity		(588,230)
Equity		(307,292)
Foreign currency		(78,860)
Interest rate		(246,372)
Total unrealized depreciation on open futures contracts		(1,220,754)
Net unrealized appreciation on open futures contracts	$	2,619,125	*
Assets
Forward Contracts
Commodity	$	640,314
Foreign currency		1,456,656
Total unrealized appreciation on open forward contracts		2,096,970
Liabilities
Forward Contracts
Commodity		(1,469,694)
Foreign currency		(965,257)
Total unrealized depreciation on open forward contracts		(2,434,951)
Net unrealized depreciation on open forward contracts	$	(337,981)	**

* This amount is in “Net unrealized appreciation on open futures contracts” in the Statements of Financial Condition.

** This amount is in “Net unrealized depreciation on open forward contracts” in the Statements of Financial Condition.

	December 31, 2015
Assets
Futures Contracts
Commodity	$	2,019,400
Equity		196,959
Foreign currency		1,206,216
Interest rate		408,587
Total unrealized appreciation on open futures contracts		3,831,162
Liabilities
Futures Contracts
Commodity		(937,844)
Equity		(421,360)
Foreign currency		(469,882)
Interest rate		(602,640)
Total unrealized depreciation on open futures contracts		(2,431,726)
Net unrealized appreciation on open futures contracts	$	1,399,436	*
Assets
Forward Contracts
Commodity	$	740,942
Foreign currency		427,977
Total unrealized appreciation on open forward contracts		1,168,919
Liabilities
Forward Contracts
Commodity		(954,788)
Foreign currency		(170,300)
Total unrealized depreciation on open forward contracts		(1,125,088)
Net unrealized appreciation on open forward contracts	$	43,831	**

* This amount is in “Net unrealized appreciation on open futures contracts” in the Statements of Financial Condition.

** This amount is in “Net unrealized appreciation on open forward contracts” in the Statements of Financial Condition.

The following table indicates the Partnership’s trading gains and losses, by market sector, on derivative instruments for the three and six months ended June 30, 2016 and 2015.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
Sector	2016			2015			2016			2015
Commodity	$	(979,233)		$	(5,466,092)		$	(916,030)		$	(6,276,242)
Equity		(2,207,645)			189,855			(3,428,566)			2,017,844
Foreign currency		256,808			(575,324)			(184,358)			2,689,244
Interest rate		2,355,258			(3,575,596)			2,972,410			240,960
Total	$	(574,812)	***	$	(9,427,157)	***	$	(1,556,544)	***	$	(1,328,194)	***

*** This amount is in “Total trading results” in the Statements of Income and Expenses.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

6. Fair Value Measurements:

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to fair values derived from unobservable inputs (Level 3). The level in the fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The fair value of exchange-traded futures, forward and option contracts is determined by the various exchanges, and reflects the settlement price for each contract as of the close of business on the last business day of the reporting period. The fair value of foreign currency forward contracts is extrapolated on a forward basis from the spot prices quoted as of approximately 3:00 P.M. (E.T.) on the last business day of the reporting period from various exchanges. The fair value of non-exchange-traded foreign currency option contracts is calculated by applying an industry standard model application for options valuation of foreign currency options, using as input the spot prices, interest rates and option implied volatilities quoted as of approximately 3:00 P.M. (E.T.) on the last business day of the reporting period. U.S. Treasury bills are valued at the last available bid price received from independent pricing services as of the close of the last business day of the reporting period.

The Partnership considers prices for exchange-traded commodity futures, forward, swap and option contracts to be based on unadjusted quoted prices in active markets for identical assets and liabilities (Level 1). The values of U.S. Treasury bills, non-exchange-traded forward, swap and certain option contracts for which market quotations are not readily available are priced by broker quotes or pricing services that derive fair values for those assets and liabilities from observable inputs (Level 2). As of June 30, 2016 and December 31, 2015, and for the periods ended June 30, 2016 and 2015, the Partnership did not hold any derivative instruments that were priced at fair value using unobservable inputs through the application of the General Partner’s assumptions and internal valuation pricing models (Level 3). Transfers between levels are recognized at the end of the reporting period. During the reporting periods, there were no transfers of assets or liabilities between Level 1 and Level 2.

June 30, 2016	Total		Level 1		Level 2		Level 3
Assets
U.S. Treasury bills	$	15,997,324	$	-	$	15,997,324	$	-
Futures		3,839,879		3,839,879		-		-
Forwards		2,096,970		640,314		1,456,656		-
Total Assets	$	21,934,173	$	4,480,193	$	17,453,980	$	-
Liabilities
Futures	$	1,220,754	$	1,220,754	$	-	$	-
Forwards		2,434,951		1,469,694		965,257		-
Total Liabilities	$	3,655,705	$	2,690,448	$	965,257	$	-
December 31, 2015	Total		Level 1		Level 2		Level 3
Assets
U.S. Treasury bills	$	55,493,206	$	-	$	55,493,206	$	-
Futures		3,831,162		3,831,162		-		-
Forwards		1,168,919		740,942		427,977		-
Total Assets	$	60,493,287	$	4,572,104	$	55,921,183	$	-
Liabilities
Futures	$	2,431,726	$	2,431,726	$	-	$	-
Forwards		1,125,088		954,788		170,300		-
Total Liabilities	$	3,556,814	$	3,386,514	$	170,300	$	-

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Subsequent Events

6 Months Ended

Jun. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

7. Subsequent Events:

The General Partner evaluates events that occur after the balance sheet date but before financial statements are issued. The General Partner has assessed the subsequent events through the date of issuance and has determined that there were no subsequent events requiring adjustment to or disclosure in the financial statements.

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Use of Estimates

Use of Estimates: The preparation of financial statements and accompanying notes in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the General Partner to make estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses, and related disclosures of contingent assets and liabilities in the financial statements and accompanying notes. As a result, actual results could differ from these estimates.

Statement of Cash Flows

Statement of Cash Flows: The Partnership is not required to provide a Statement of Cash Flows.

Partnership's Investments

Partnership’s Investments: All commodity interests of the Partnership, including derivative financial instruments and derivative commodity instruments, are held for trading purposes. The commodity interests are recorded on trade date and open contracts are recorded at fair value (as described in Note 6, “Fair Value Measurements”) at the measurement date. Investments in commodity interests denominated in foreign currencies are translated into U.S. dollars at the exchange rates prevailing at the measurement date. Gains or losses are realized when contracts are liquidated and are determined using the first-in, first-out method. Unrealized gains or losses on open contracts are included as a component of equity in trading account in the Partnership’s Statements of Financial Condition. Net realized gains or losses and net change in unrealized gains or losses are included in the Partnership’s Statements of Income and Expenses.

Restricted and Unrestricted Cash

Restricted and Unrestricted Cash: As reflected on the Partnership’s Statements of Financial Condition, restricted cash equals the cash portion of assets on deposit to meet margin requirements plus the cash required to offset unrealized losses on foreign currency forward and option contracts and offset unrealized losses only on the offsetting London Metal Exchange positions. All of these amounts are maintained separately. Cash available for Futures Interest trading that is not classified as restricted cash is therefore classified as unrestricted cash. Restricted and unrestricted cash includes cash denominated in foreign currencies of $(140,003) (proceeds of $157,934) and $(924,554) (proceeds of $943,684) as of June 30, 2016 and December 31, 2015, respectively.

Investment Company Status

Investment Company Status: Effective January 1, 2014, the Partnership adopted Accounting Standards Update (“ASU”) 2013-08, “Financial Services — Investment Companies (Topic 946): Amendments to the Scope, Measurement and Disclosure Requirements” and based on the General Partner’s assessment, the Partnership has been deemed to be an investment company since inception. Accordingly, the Partnership follows the investment company accounting and reporting guidance of Topic 946 and reflects its investments at fair value with unrealized gains and losses resulting from changes in fair value reflected in the Statements of Income and Expenses.

Income Taxes

Income Taxes: Income taxes have not been listed as each partner is individually liable for the taxes, if any, on its share of the Partnership’s income and expenses. The General Partner concluded that no provision for income tax is required in the Partnership’s financial statements. The Partnership files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The 2012 through 2015 tax years remain subject to examination by U.S. federal and most state tax authorities. The General Partner does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Net Income (Loss) per Unit

Net Income (Loss) per Unit: Net income (loss) per unit of limited partnership interest (“Unit(s)”) is calculated in accordance with ASU 946, “Financial Services – Investment Companies.” See Note 3, “Financial Highlights.”

Fair Value of Financial Instruments

Fair Value of Financial Instruments: The carrying value of the Partnership’s assets and liabilities presented in the Statements of Financial Condition that qualify as financial instruments under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 825, “Financial Instruments,” approximates fair value due to the short term nature of such balances.

Recent Accounting Pronouncement

Recent Accounting Pronouncement: In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” The amendments in this update address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments for all entities that hold financial assets or owe financial liabilities. One of the amendments in this update eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet or a description of changes in the methods and significant assumptions. Additionally, the update eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities. Investment companies are specifically exempted from ASU 2016-01’s equity investment accounting provisions and will continue to follow the industry specific guidance for investment accounting under Topic 946. For public business entities, this update is effective for fiscal years beginning after December 15, 2017, and interim periods therein. For other entities, it is effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. The General Partner is currently evaluating the impact this guidance will have on the Partnership’s financial statements and related disclosures.

Reclassification

Reclassification: Certain prior period amounts have been reclassified to conform to current period presentation. Amounts previously presented as net unrealized gain (loss) on open contracts in the Statements of Financial Condition are now reported as net unrealized appreciation on open futures contracts, net unrealized depreciation on open futures contracts, net unrealized appreciation on open forward contracts and net unrealized depreciation on open forward contracts, as applicable. In addition, amounts previously presented as futures and forward contracts purchased and futures and forward contracts sold on the Condensed Schedules of Investments are now reported as futures contracts purchased, futures contracts sold, unrealized appreciation on open forward contracts and unrealized depreciation on open forward contracts, as applicable.

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Financial Highlights (Tables)

6 Months Ended

Jun. 30, 2016

Text Block [Abstract]

Schedule of Changes in Net Asset Value

Financial highlights for the limited partner class for the three and six months ended June 30, 2016 and 2015 were as follows:

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Per Unit Performance (for a unit outstanding throughout the period): *
Net realized and unrealized gains (losses)	$	(0.14)	$	(2.53)	$	(0.48)	$	(0.45)
Net investment loss		(0.36)		(0.45)		(0.74)		(0.90)
Net increase (decrease) for the period		(0.50)		(2.98)		(1.22)		(1.35)
Net asset value per Unit, beginning of period		27.21		31.81		27.93		30.18
Net asset value per Unit, end of period	$	26.71	$	28.83	$	26.71	$	28.83

Ratios to Average Limited Partners' Capital

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Per Unit Performance (for a unit outstanding throughout the period): *
Net realized and unrealized gains (losses)	$	(0.14)	$	(2.53)	$	(0.48)	$	(0.45)
Net investment loss		(0.36)		(0.45)		(0.74)		(0.90)
Net increase (decrease) for the period		(0.50)		(2.98)		(1.22)		(1.35)
Net asset value per Unit, beginning of period		27.21		31.81		27.93		30.18
Net asset value per Unit, end of period	$	26.71	$	28.83	$	26.71	$	28.83
	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Ratios to Average Limited Partners’ Capital: **
Net investment loss ***		(5.4)%		(5.9)%		(5.5)%		(5.9)%
Operating expenses before incentive fees		5.6%		5.9%		5.6%		5.9%
Incentive fees		-%		-%		-%		-%
Operating expenses after incentive fees		5.6%		5.9%		5.6%		5.9%
Total return:
Total return before incentive fees		(1.8)%		(9.4)%		(4.4)%		(4.5)%
Incentive fees		-%		-%		-%		-%
Total return after incentive fees		(1.8)%		(9.4)%		(4.4)%		(4.5)%

* Net investment loss per Unit is calculated by dividing the expenses net of interest income by the average number of Units outstanding during the period. The net realized and unrealized gains (losses) per Unit is a balancing amount necessary to reconcile the change in net asset value per Unit with the other per unit information.

** Annualized (except for incentive fees, if applicable).

*** Interest income less total expenses.

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Trading Activities (Tables)

6 Months Ended

Jun. 30, 2016

Brokers and Dealers [Abstract]

Summary of Gross and Net Amounts Recognized Relating to Assets and Liabilities of Partnership's Derivatives

The following tables summarize the gross and net amounts recognized relating to the assets and liabilities of the Partnership’s derivatives and their offsetting subject to master netting agreements or similar agreements as of June 30, 2016 and December 31, 2015, respectively.

			Gross Amounts		Amounts		Gross Amounts not Offset in the
			Offset in the		Presented in the		Statements of Financial Condition
			Statements of		Statements of				Cash Collateral
	Gross Amounts		Financial		Financial		Financial		Received/
June 30, 2016	Recognized		Condition		Condition		Instruments		Pledged*		Net Amount
Assets
Futures	$	3,839,879	$	(1,220,754)	$	2,619,125	$	-	$	-	$	2,619,125
Forwards		2,096,970		(2,096,970)		-		-		-		-
Total assets	$	5,936,849	$	(3,317,724)	$	2,619,125	$	-	$	-	$	2,619,125
Liabilities
Futures	$	(1,220,754)	$	1,220,754	$	-	$	-	$	-	$	-
Forwards		(2,434,951)		2,096,970		(337,981)		-		-		(337,981)
Total liabilities	$	(3,655,705)	$	3,317,724	$	(337,981)	$	-	$	-	$	(337,981)
Net fair value											$	2,281,144	*

December 31, 2015	Gross Amounts Recognized		Gross Amounts Offset in the Statements of Financial Condition		Amounts Presented in the Statements of Financial Condition		Gross Amounts not Offset in the Statements of Financial Condition				Net Amount
							Financial Instruments		Cash Collateral Received/ Pledged*
Assets
Futures	$	3,831,162	$	(2,431,726)	$	1,399,436	$	-	$	-	$	1,399,436
Forwards		1,168,919		(1,125,088)		43,831		-		-		43,831
Total assets	$	5,000,081	$	(3,556,814)	$	1,443,267	$	-	$	-	$	1,443,267
Liabilities
Futures	$	(2,431,726)	$	2,431,726	$	-	$	-	$	-	$	-
Forwards		(1,125,088)		1,125,088		-		-		-		-
Total liabilities	$	(3,556,814)	$	3,556,814	$	-	$	-	$	-	$	-
Net fair value											$	1,443,267	*

* 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 and/or U.S. Treasury bills 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.

Gross Fair Values of Derivative Instruments of Futures and Forward Contracts Traded

The following tables indicate the gross fair values of derivative instruments of futures and forward contracts as separate assets and liabilities as of June 30, 2016 and December 31, 2015, respectively.

	June 30, 2016
Assets
Futures Contracts
Commodity	$	1,082,519
Equity		358,731
Foreign currency		113,861
Interest rate		2,284,768
Total unrealized appreciation on open futures contracts		3,839,879
Liabilities
Futures Contracts
Commodity		(588,230)
Equity		(307,292)
Foreign currency		(78,860)
Interest rate		(246,372)
Total unrealized depreciation on open futures contracts		(1,220,754)
Net unrealized appreciation on open futures contracts	$	2,619,125	*
Assets
Forward Contracts
Commodity	$	640,314
Foreign currency		1,456,656
Total unrealized appreciation on open forward contracts		2,096,970
Liabilities
Forward Contracts
Commodity		(1,469,694)
Foreign currency		(965,257)
Total unrealized depreciation on open forward contracts		(2,434,951)
Net unrealized depreciation on open forward contracts	$	(337,981)	**

* This amount is in “Net unrealized appreciation on open futures contracts” in the Statements of Financial Condition.

** This amount is in “Net unrealized depreciation on open forward contracts” in the Statements of Financial Condition.

	December 31, 2015
Assets
Futures Contracts
Commodity	$	2,019,400
Equity		196,959
Foreign currency		1,206,216
Interest rate		408,587
Total unrealized appreciation on open futures contracts		3,831,162
Liabilities
Futures Contracts
Commodity		(937,844)
Equity		(421,360)
Foreign currency		(469,882)
Interest rate		(602,640)
Total unrealized depreciation on open futures contracts		(2,431,726)
Net unrealized appreciation on open futures contracts	$	1,399,436	*
Assets
Forward Contracts
Commodity	$	740,942
Foreign currency		427,977
Total unrealized appreciation on open forward contracts		1,168,919
Liabilities
Forward Contracts
Commodity		(954,788)
Foreign currency		(170,300)
Total unrealized depreciation on open forward contracts		(1,125,088)
Net unrealized appreciation on open forward contracts	$	43,831	**

* This amount is in “Net unrealized appreciation on open futures contracts” in the Statements of Financial Condition.

** This amount is in “Net unrealized appreciation on open forward contracts” in the Statements of Financial Condition.

Trading Gains and Losses by Market Sector on Derivative Instruments Traded

The following table indicates the Partnership’s trading gains and losses, by market sector, on derivative instruments for the three and six months ended June 30, 2016 and 2015.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
Sector	2016			2015			2016			2015
Commodity	$	(979,233)		$	(5,466,092)		$	(916,030)		$	(6,276,242)
Equity		(2,207,645)			189,855			(3,428,566)			2,017,844
Foreign currency		256,808			(575,324)			(184,358)			2,689,244
Interest rate		2,355,258			(3,575,596)			2,972,410			240,960
Total	$	(574,812)	***	$	(9,427,157)	***	$	(1,556,544)	***	$	(1,328,194)	***

*** This amount is in “Total trading results” in the Statements of Income and Expenses.

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Derivative Instruments Priced at Fair Value Using Unobservable Inputs

During the reporting periods, there were no transfers of assets or liabilities between Level 1 and Level 2.

June 30, 2016	Total		Level 1		Level 2		Level 3
Assets
U.S. Treasury bills	$	15,997,324	$	-	$	15,997,324	$	-
Futures		3,839,879		3,839,879		-		-
Forwards		2,096,970		640,314		1,456,656		-
Total Assets	$	21,934,173	$	4,480,193	$	17,453,980	$	-
Liabilities
Futures	$	1,220,754	$	1,220,754	$	-	$	-
Forwards		2,434,951		1,469,694		965,257		-
Total Liabilities	$	3,655,705	$	2,690,448	$	965,257	$	-
December 31, 2015	Total		Level 1		Level 2		Level 3
Assets
U.S. Treasury bills	$	55,493,206	$	-	$	55,493,206	$	-
Futures		3,831,162		3,831,162		-		-
Forwards		1,168,919		740,942		427,977		-
Total Assets	$	60,493,287	$	4,572,104	$	55,921,183	$	-
Liabilities
Futures	$	2,431,726	$	2,431,726	$	-	$	-
Forwards		1,125,088		954,788		170,300		-
Total Liabilities	$	3,556,814	$	3,386,514	$	170,300	$	-

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Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Cash denominated in foreign currencies	$ 140,003	$ 924,554
Cash denominated in foreign currencies, proceeds	$ 157,934	$ 943,684
Income tax examination, description	No income tax returns are currently under examination. The 2012 through 2015 tax years remain subject to examination by U.S. federal and most state tax authorities.

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Financial Highlights - Schedule of Changes in Net Asset Value (Detail) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Per Unit Performance (for a unit outstanding throughout the period):
Net realized and unrealized gains (losses)	$ (0.14)	$ (2.53)	$ (0.48)	$ (0.45)
Net investment loss	(0.36)	(0.45)	(0.74)	(0.90)
Net increase (decrease) for the period	(0.50)	(2.98)	(1.22)	(1.35)
Net asset value per Unit, beginning of period	27.21	31.81	27.93	30.18
Net asset value per Unit, end of period	$ 26.71	$ 28.83	$ 26.71	$ 28.83

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Financial Highlights - Ratios to Average Limited Partners' Capital (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Ratios to Average Limited Partners' Capital:
Net investment loss	(5.40%)	(5.90%)	(5.50%)	(5.90%)
Operating expenses before incentive fees	5.60%	5.90%	5.60%	5.90%
Incentive fees	0.00%	0.00%	0.00%	0.00%
Operating expenses after incentive fees	5.60%	5.90%	5.60%	5.90%
Total return before incentive fees	(1.80%)	(9.40%)	(4.40%)	(4.50%)
Incentive fees	(0.00%)	(0.00%)	(0.00%)	(0.00%)
Total return after incentive fees	(1.80%)	(9.40%)	(4.40%)	(4.50%)

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Financial Instruments - Additional Information (Detail) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Investments, All Other Investments [Abstract]
Cash held by acting commodity futures brokers administrating open contracts	$ 66,620,903	$ 39,121,598

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Trading Activities - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2016 USD ($) Contracts	Jun. 30, 2015 USD ($) Contracts	Jun. 30, 2016 USD ($) Contracts	Jun. 30, 2015 USD ($) Contracts
Foreign Exchange Forward [Member]
Derivative [Line Items]
Average notional value of derivative | $	$ 118,755,428	$ 137,214,414	$ 115,451,266	$ 135,302,544
Futures Contracts [Member]
Derivative [Line Items]
Average number of derivative contracts held	5,781	7,761	7,038	8,095
Options Purchased [Member]
Derivative [Line Items]
Average number of derivative contracts traded	1,168	1,305	1,209	1,175

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Trading Activities - Summary of Gross and Net Amounts Recognized Relating to Assets and Liabilities of Partnership's Derivatives (Detail) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Derivative [Line Items]
Gross Amounts Recognized, Assets	$ 5,936,849	$ 5,000,081
Gross Amounts Offset in the Statements of Financial Condition, Assets	(3,317,724)	(3,556,814)
Amounts Presented in the Statements of Financial Condition, Assets	2,619,125	1,443,267
Financial Instruments, Assets	0	0
Cash Collateral Received/Pledged, Assets	0	0
Net Amount, Assets	2,619,125	1,443,267
Gross Amounts Recognized, Liabilities	(3,655,705)	(3,556,814)
Gross Amounts Offset in the Statements of Financial Condition, Liabilities	3,317,724	3,556,814
Amounts Presented in the Statements of Financial Condition, Liabilities	(337,981)
Financial Instruments, Liabilities	0	0
Cash Collateral Received/Pledged, Liabilities	0	0
Net Amount, Liabilities	(337,981)
Net fair value	2,281,144	1,443,267
Futures Contracts [Member]
Derivative [Line Items]
Gross Amounts Recognized, Assets	3,839,879	3,831,162
Gross Amounts Offset in the Statements of Financial Condition, Assets	(1,220,754)	(2,431,726)
Amounts Presented in the Statements of Financial Condition, Assets	2,619,125	1,399,436
Financial Instruments, Assets	0	0
Cash Collateral Received/Pledged, Assets	0	0
Net Amount, Assets	2,619,125	1,399,436
Gross Amounts Recognized, Liabilities	(1,220,754)	(2,431,726)
Gross Amounts Offset in the Statements of Financial Condition, Liabilities	1,220,754	2,431,726
Financial Instruments, Liabilities	0	0
Cash Collateral Received/Pledged, Liabilities	0	0
Forward Contracts [Member]
Derivative [Line Items]
Gross Amounts Recognized, Assets	2,096,970	1,168,919
Gross Amounts Offset in the Statements of Financial Condition, Assets	(2,096,970)	(1,125,088)
Amounts Presented in the Statements of Financial Condition, Assets		43,831
Financial Instruments, Assets	0	0
Cash Collateral Received/Pledged, Assets	0	0
Net Amount, Assets		43,831
Gross Amounts Recognized, Liabilities	(2,434,951)	(1,125,088)
Gross Amounts Offset in the Statements of Financial Condition, Liabilities	2,096,970	1,125,088
Amounts Presented in the Statements of Financial Condition, Liabilities	(337,981)
Financial Instruments, Liabilities	0	0
Cash Collateral Received/Pledged, Liabilities	0	$ 0
Net Amount, Liabilities	$ (337,981)

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Trading Activities - Gross Fair Values of Derivative Instruments of Futures and Forward Contracts Traded (Detail) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Futures Contracts [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Total unrealized appreciation on open contracts	$ 3,839,879	$ 3,831,162
Total unrealized appreciation on open contracts	(1,220,754)	(2,431,726)
Net unrealized appreciation (depreciation) on open contracts	2,619,125	1,399,436
Futures Contracts [Member] | Commodity [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Total unrealized appreciation on open contracts	1,082,519	2,019,400
Total unrealized appreciation on open contracts	(588,230)	(937,844)
Futures Contracts [Member] | Equity [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Total unrealized appreciation on open contracts	358,731	196,959
Total unrealized appreciation on open contracts	(307,292)	(421,360)
Futures Contracts [Member] | Foreign Currency [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Total unrealized appreciation on open contracts	113,861	1,206,216
Total unrealized appreciation on open contracts	(78,860)	(469,882)
Futures Contracts [Member] | Interest Rate [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Total unrealized appreciation on open contracts	2,284,768	408,587
Total unrealized appreciation on open contracts	(246,372)	(602,640)
Forward Contracts [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Total unrealized appreciation on open contracts	2,096,970	1,168,919
Total unrealized appreciation on open contracts	(2,434,951)	(1,125,088)
Net unrealized appreciation (depreciation) on open contracts	(337,981)	43,831
Forward Contracts [Member] | Commodity [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Total unrealized appreciation on open contracts	640,314	740,942
Total unrealized appreciation on open contracts	(1,469,694)	(954,788)
Forward Contracts [Member] | Foreign Currency [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Total unrealized appreciation on open contracts	1,456,656	427,977
Total unrealized appreciation on open contracts	$ (965,257)	$ (170,300)

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Trading Activities - Trading Gains and Losses by Market Sector on Derivative Instruments Traded (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Trading Activity, Gains and Losses, Net [Line Items]
Total trading results	$ (574,812)	$ (9,427,157)	$ (1,556,544)	$ (1,328,194)
Derivative [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Total trading results	(574,812)	(9,427,157)	(1,556,544)	(1,328,194)
Derivative [Member] | Commodity [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Total trading results	(979,233)	(5,466,092)	(916,030)	(6,276,242)
Derivative [Member] | Equity [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Total trading results	(2,207,645)	189,855	(3,428,566)	2,017,844
Derivative [Member] | Foreign Currency [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Total trading results	256,808	(575,324)	(184,358)	2,689,244
Derivative [Member] | Interest Rate [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Total trading results	$ 2,355,258	$ (3,575,596)	$ 2,972,410	$ 240,960

XML

Fair Value Measurements - Additional Information (Detail) - USD ($)	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Investment in Funds	$ 0		$ 0
Transfers of assets between Level 1 and Level 2	0	$ 0
Transfers of liabilities between Level 1 and Level 2	$ 0	$ 0

XML

Fair Value Measurements - Derivative Instruments Priced at Fair Value Using Unobservable Inputs (Detail) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Assets
Total assets	$ 21,934,173	$ 60,493,287
Liabilities
Total liabilities	3,655,705	3,556,814
Forward Contracts [Member]
Assets
Total assets	2,096,970	1,168,919
Liabilities
Total liabilities	2,434,951	1,125,088
U.S. Treasury Bills [Member]
Assets
Total assets	15,997,324	55,493,206
Futures Contracts [Member]
Assets
Total assets	3,839,879	3,831,162
Liabilities
Total liabilities	1,220,754	2,431,726
Level 1 [Member]
Assets
Total assets	4,480,193	4,572,104
Liabilities
Total liabilities	2,690,448	3,386,514
Level 1 [Member] | Forward Contracts [Member]
Assets
Total assets	640,314	740,942
Liabilities
Total liabilities	1,469,694	954,788
Level 1 [Member] | Futures Contracts [Member]
Assets
Total assets	3,839,879	3,831,162
Liabilities
Total liabilities	1,220,754	2,431,726
Level 2 [Member]
Assets
Total assets	17,453,980	55,921,183
Liabilities
Total liabilities	965,257	170,300
Level 2 [Member] | Forward Contracts [Member]
Assets
Total assets	1,456,656	427,977
Liabilities
Total liabilities	965,257	170,300
Level 2 [Member] | U.S. Treasury Bills [Member]
Assets
Total assets	$ 15,997,324	$ 55,493,206