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 Futures Interests owned by the Partnership are held for trading purposes. The monthly average number of futures contracts traded during the three months ended March 31, 2017 and 2016 were 4,689 and 8,294, respectively. The monthly average number of metal forward contracts traded during the three months ended March 31, 2017 and 2016 were 607 and 1,250, respectively. The monthly average notional values of currency forward contracts traded during the three months ended March 31, 2017 and 2016 were $123,410,631 and $112,147,104, 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 March 31, 2017 and December 31, 2016, respectively.


March 31, 2017	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
March 31, 2017	Gross Amounts Recognized				Amounts Presented in the Statements of Financial Condition		Financial Instruments		Cash Collateral Received/ Pledged*		Net Amount
Assets
Futures	$	1,691,061	$	(1,599,242)	$	91,819	$	-	$	-	$	91,819
Forwards		610,832		(610,832)		-		-		-		-

Total assets	$	2,301,893	$	(2,210,074)	$	91,819	$	-	$	-	$	91,819


Liabilities
Futures	$	(1,599,242)	$	1,599,242	$	-	$	-	$	-	$	-
Forwards		(1,074,210)		610,832		(463,378)		-		-		(463,378)

Total liabilities	$	(2,673,452)	$	2,210,074	$	(463,378)	$	-	$	-	$	(463,378)

Net fair value											$	(371,559)	*


December 31, 2016	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
December 31, 2016	Gross Amounts Recognized				Amounts Presented in the Statements of Financial Condition		Financial Instruments		Cash Collateral Received/ Pledged*		Net Amount
Assets
Futures	$	2,203,401	$	(827,990)	$	1,375,411	$	-	$	-	$	1,375,411
Forwards		1,069,028		(1,069,028)		-		-		-		-

Total assets	$	3,272,429	$	(1,897,018)	$	1,375,411	$	-	$	-	$	1,375,411


Liabilities
Futures	$	(827,990)	$	827,990	$	-	$	-	$	-	$	-
Forwards		(1,116,899)		1,069,028		(47,871)		-		-		(47,871)

Total liabilities	$	(1,944,889)	$	1,897,018	$	(47,871)	$	-	$	-	$	(47,871)

Net fair value											$	1,327,540	*

In the event of default by the Partnership, MS&Co., the Partnership’s commodity futures broker and the sole counterparty to the Partnership’s non-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 March 31, 2017 and December 31, 2016, respectively.


	March 31, 2017
Assets
Futures Contracts
Commodity	$	637,370
Equity		692,164
Currencies		102,590
Interest rates		258,937

Total unrealized appreciation on open futures contracts		1,691,061

Liabilities
Futures Contracts
Commodity		(583,892)
Equity		(369,628)
Currencies		(55,187)
Interest rates		(590,535)

Total unrealized depreciation on open futures contracts		(1,599,242)

Net unrealized appreciation on open futures contracts	$	91,819	*

Assets
Forward Contracts
Commodity	$	266,365
Currencies		344,467

Total unrealized appreciation on open forward contracts		610,832

Liabilities
Forward Contracts
Commodity		(354,147)
Currencies		(720,063)

Total unrealized depreciation on open forward contracts		(1,074,210)

Net unrealized depreciation on open forward contracts	$	(463,378)	**

*	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, 2016
Assets
Futures Contracts
Commodity	$	864,337
Equity		696,575
Currencies		202,478
Interest rates		440,011

Total unrealized appreciation on open futures contracts		2,203,401


Liabilities
Futures Contracts
Commodity		(385,917)
Equity		(263,755)
Currencies		(55,806)
Interest rates		(122,512)

Total unrealized depreciation on open futures contracts		(827,990)

Net unrealized appreciation on open futures contracts	$	1,375,411	*

Assets
Forward Contracts
Commodity	$	370,551
Currencies		698,477

Total unrealized appreciation on open forward contracts		1,069,028


Liabilities
Forward Contracts
Commodity		(534,709)
Currencies		(582,190)

Total unrealized depreciation on open forward contracts		(1,116,899)

Net unrealized depreciation on open forward contracts	$	(47,871)	**

*	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.

The following table indicates the Partnership’s trading gains and losses, by market sector, on derivative instruments for the three months ended March 31, 2017 and 2016.


	Three Months Ended
	March 31,
Sector	2017			2016

Commodity	$	(2,317,420)		$	63,203
Equity		3,943,222			(1,220,921)
Currencies		(1,406,745)			(441,166)
Interest rates		(888,879)			617,152


Total	$	(669,822)	***	$	(981,732)	***

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