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 June 30, 2018 and 2017 were 2,967 and 4,688, respectively. The monthly average number of futures contracts traded during the six months ended June 30, 2018 and 2017 were 3,209 and 4,689, respectively. The monthly average number of metal forward contracts traded during the three months ended June 30, 2018 and 2017 were 415 and 506, respectively. The monthly average number of metal forward contracts traded during the six months ended June 30, 2018 and 2017 were 420 and 557, respectively. The monthly average notional value of currency forward contracts traded during the three months ended June 30, 2018 and 2017 were $89,299,031 and $162,758,395, respectively. The monthly average notional value of currency forward contracts traded during the six months ended June 30, 2018 and 2017 were $111,022,823 and $143,084,513, 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, 2018 and December 31, 2017, 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, 2018	Recognized		Condition		Condition		Instruments		Pledged*		Net Amount
Assets
Futures	$	1,531,065	$	(731,733)	$	799,332	$	-	$	-	$	799,332
Forwards		726,521		(726,521)		-		-		-		-


Total assets	$	2,257,586	$	(1,458,254)	$	799,332	$	-	$	-	$	799,332


Liabilities
Futures	$	(731,733)	$	731,733	$	-	$	-	$	-	$	-
Forwards		(1,033,278)		726,521		(306,757)		-		-		(306,757)


Total liabilities	$	(1,765,011)	$	1,458,254	$	(306,757)	$	-	$	-	$	(306,757)


Net fair value											$	492,575	*


			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/
December 31, 2017	Recognized		Condition		Condition		Instruments		Pledged*		Net Amount
Assets
Futures	$	2,377,628	$	(639,577)	$	1,738,051	$	-	$	-	$	1,738,051
Forwards		1,275,513		(789,082)		486,431		-		-		486,431


Total assets	$	3,653,141	$	(1,428,659)	$	2,224,482	$	-	$	-	$	2,224,482


Liabilities
Futures	$	(639,577)	$	639,577	$	-	$	-	$	-	$	-
Forwards		(789,082)		789,082		-		-		-		-


Total liabilities	$	(1,428,659)	$	1,428,659	$	-	$	-	$	-	$	-


Net fair value											$	2,224,482	*

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. In certain instances, MS&Co. may not post collateral 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 funds 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, 2018 and December 31, 2017, respectively.


	June 30, 2018
Assets
Futures Contracts
Commodity	$	788,766
Equity		106,764
Currencies		283,873
Interest rates		351,662

Total unrealized appreciation on open futures contracts		1,531,065


Liabilities
Futures Contracts
Commodity		(105,784)
Equity		(450,822)
Currencies		(39,245)
Interest rates		(135,882)

Total unrealized depreciation on open futures contracts		(731,733)

Net unrealized appreciation on open futures contracts	$	799,332	*


Assets
Forward Contracts
Commodity	$	452,379
Currencies		274,142

Total unrealized appreciation on open forward contracts		726,521


Liabilities
Forward Contracts
Commodity		(892,877)
Currencies		(140,401)

Total unrealized depreciation on open forward contracts		(1,033,278)

Net unrealized depreciation on open forward contracts	$	(306,757)	**

*	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, 2017
Assets
Futures Contracts
Commodity	$	1,273,423
Equity		489,126
Currencies		196,144
Interest rates		418,935

Total unrealized appreciation on open futures contracts		2,377,628


Liabilities
Futures Contracts
Commodity		(187,625)
Equity		(107,968)
Currencies		(3,001)
Interest rates		(340,983)

Total unrealized depreciation on open futures contracts		(639,577)

Net unrealized appreciation on open futures contracts	$	1,738,051	*


Assets
Forward Contracts
Commodity	$	897,185
Currencies		378,328

Total unrealized appreciation on open forward contracts		1,275,513


Liabilities
Forward Contracts
Commodity		(385,217)
Currencies		(403,865)

Total unrealized depreciation on open forward contracts		(789,082)

Net unrealized appreciation on open forward contracts	$	486,431	**

*	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, 2018 and 2017.


	Three Months Ended June 30,						Six Months Ended June 30,
Sector	2018			2017			2018			2017

Commodity	$	(225,973)		$	(548,754)		$	(838,355)		$	(2,866,174)
Equity		(121,211)			1,892,065			(118,610)			5,835,287
Currencies		(682,457)			(1,721,807)			(681,655)			(3,128,552)
Interest rates		129,863			(1,144,304)			(188,806)			(2,033,183)


Total	$	(899,778)	***	$	(1,522,800)	***	$	(1,827,426)	***	$	(2,192,622)	***

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