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Trading Activities
 6 Months Ended
Jun. 30, 2019
Brokers and Dealers [Abstract]  
Trading Activities
5.
Trading Activities:
The Partnership’s objective is to profit from speculative trading in Futures Interests. Therefore, each Trading Advisor for the Partnership will take speculative positions in Futures Interests where it feels the best profit opportunities exist for its 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, 2019 and 2018 were 3,078 and 2,967, respectively. The monthly average number of futures contracts traded during the six months ended June 30, 2019 and 2018 were 2,902, and 3,209. The monthly average number of metal forward contracts traded during the three months ended June 30, 2019 and 2018 were 354 and 415, respectively. The monthly average number of metal forward contracts traded during the six months ended June 30, 2019 and 2018 were 370 and 420, respectively. The monthly average notional value of currency forward contracts traded during the three months ended June 30, 2019 and 2018 were $87,358,805 and $89,299,031, respectively. The monthly average notional value of currency forward contracts traded during the six months ended June 30, 2019 and 2018 were $80,738,847 and $111,022,823, 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 arrangements or similar agreements as of June 30, 2019 and December 31, 2018, 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, 2019
 
Recognized
 
 
Condition
 
 
Condition
 
 
Instruments
 
 
Pledged*
 
 
Net Amount
 
Assets
                        
Futures
 
$
2,035,075  
$
(452,629
) 
 
$
1,582,446  
$
-        $-        $1,582,446 
Forwards
  273,264   (273,264
) 
  -         -         -         -       
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total assets
 
$
2,308,339  
$
(725,893
) 
 
$
1,582,446  
$
-        $-        $1,582,446 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Liabilities
                        
Futures
 
$
(452,629
) 
 
$
452,629  
$
-        
$
-        $-        $-       
Forwards
  (495,063
) 
  273,264   (221,799
) 
  -         221,799   -       
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total liabilities
 
$
(947,692
) 
 
$
725,893  
$
(221,799
) 
 
$
-        $221,799  $-       
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Net fair value
                     $1,582,446* 
                      
 
 
 
 
 
 
 
 
 
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, 2018
 
Recognized
 
 
Condition
 
 
Condition
 
 
Instruments
 
 
Pledged*
 
 
Net Amount
 
Assets
                        
Futures
 
$
1,456,716  
$
(1,122,513
) 
 
$
334,203  
$
-      
  
$
-      
  
$
334,203 
Forwards
  623,038   (623,038
) 
  -         
-      
   
-      
   
-      
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total assets
 
$
2,079,754  
$
(1,745,551
) 
 
$
334,203  
$
-      
  
$
-      
  
$
334,203 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Liabilities
                        
Futures
 
$
(1,122,513
) 
 
$
1,122,513  
$
-      
  
$
-      
  
$
-      
  
$
-      
 
Forwards
  (632,108
) 
  623,038   (9,070
) 
  
-      
   9,070   
-      
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total liabilities
 
$
(1,754,621
) 
 
$
1,745,551  
$
(9,070
) 
 
$
-      
  
$
9,070  
$
-      
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Net fair value
                     
$
334,203
* 
                      
 
 
 
 
*
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, 2019 and December 31, 2018, respectively.
 
 
 
June 30, 2019
 
Assets
    
Futures Contracts
    
Commodity
 $370,058 
Equity
  150,635 
Currencies
  17,097 
Interest rates
  1,497,285 
  
 
 
 
Total unrealized appreciation on open futures contracts
  2,035,075 
  
 
 
 
Liabilities
    
Futures Contracts
    
Commodity
  (256,373) 
Equity
  (93,727) 
Currencies
  (96,026) 
Interest rates
  (6,503) 
  
 
 
 
Total unrealized depreciation on open futures contracts
  (452,629) 
  
 
 
 
Net unrealized appreciation on open futures contracts
 $1,582,446* 
  
 
 
 
Assets
    
Forward Contracts
    
Commodity
 $224,472 
Currencies
  48,792 
  
 
 
 
Total unrealized appreciation on open forward contracts
  273,264 
  
 
 
 
Liabilities
    
Forward Contracts
    
Commodity
  (188,008) 
Currencies
  (307,055) 
  
 
 
 
Total unrealized depreciation on open forward contracts
  (495,063) 
  
 
 
 
Net unrealized depreciation on open forward contracts
 $(221,799) ** 
  
 
 
 
 
*
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, 2018
 
Assets
    
Futures Contracts
    
Commodity
 $508,863 
Equity
  248,473 
Currencies
  241,791 
Interest rates
  457,589 
  
 
 
 
Total unrealized appreciation on open futures contracts
  1,456,716 
  
 
 
 
Liabilities
    
Futures Contracts
    
Commodity
  (389,356) 
Equity
  (229,595) 
Currencies
  (78,105) 
Interest rates
  (425,457) 
  
 
 
 
Total unrealized depreciation on open futures contracts
  (1,122,513) 
  
 
 
 
Net unrealized appreciation on open futures contracts
 $334,203* 
  
 
 
 
Assets
    
Forward Contracts
    
Commodity
 $374,564 
Currencies
  248,474 
  
 
 
 
Total unrealized appreciation on open forward contracts
  623,038 
  
 
 
 
Liabilities
    
Forward Contracts
    
Commodity
  (230,751) 
Currencies
  (401,357) 
  
 
 
 
Total unrealized depreciation on open forward contracts
  (632,108) 
  
 
 
 
Net unrealized depreciation on open forward contracts
 $(9,070) ** 
  
 
 
 
 
*
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 and six months ended June 30, 2019 and 2018.
 
 
 
Three Months Ended
 
 
Six Months Ended
 
 
 
June 30,
 
 
June 30,
 
Sector
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Commodity
 $(565,232)  $(225,973)  $(1,838,327)  $(838,355) 
Equity
  120,114   (121,211)   702,465   (118,610) 
Currencies
  (465,769)   (682,457)   (886,590)   (681,655) 
Interest rates
  2,811,794   129,863   4,734,162   (188,806) 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total
 $1,900,907***  $(899,778) ***  $2,711,710***  $(1,827,426) *** 
  
 
 
  
 
 
  
 
 
  
 
 
 
 
***
This amount is included in “Total trading results” in the Statements of Income and Expenses.