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
December 31, 2015	Gross Amounts Recognized						Financial Instruments		Cash Collateral Received/ Pledged*		Net Amount
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.