5. Trading Activities:

The Partnership’s objective is to profit from speculative trading in Futures Interests. Therefore, the Trading Advisor will take speculative positions in Futures Interests where it feels the best profit opportunities exist for its trading strategy. 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 years ended December 31, 2018 and 2017 were 7,300 and 8,438, respectively. The monthly average number of metals forward contracts traded during the years ended December 31, 2018 and 2017 were 826 and 834, respectively. The monthly average notional values of currency forward contracts traded during the years ended December 31, 2018 and 2017 were $415,107,828 and $531,535,509, respectively.

The following tables summarize the gross and net amounts recognized relating to the assets and liabilities of the Partnership’s derivative instruments and transactions eligible for offset subject to master netting agreements or similar agreements as of December 31, 2018 and 2017, respectively.


	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, 2018	Gross Amounts Recognized				Amounts Presented in the Statements of Financial Condition		Financial Instruments		Cash Collateral Received/Pledged*		Net Amount
Assets
Futures	$	3,370,017	$	(3,370,017)	$	-	$	-	$	-	$	-
Forwards		1,880,468		(1,880,468)		-		-		-		-

Total assets	$	5,250,485	$	(5,250,485)	$	-	$	-	$	-	$	-

Liabilities
Futures	$	(4,422,974)	$	3,370,017	$	(1,052,957)	$	-	$	-	$	(1,052,957)
Forwards		(2,164,284)		1,880,468		(283,816)		-		-		(283,816)

Total liabilities	$	(6,587,258)	$	5,250,485	$	(1,336,773)	$	-	$	-	$	(1,336,773)

Net fair value											$	(1,336,773)	*


	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, 2017	Gross Amounts Recognized				Amounts Presented in the Statements of Financial Condition		Financial Instruments		Cash Collateral Received/Pledged*		Net Amount
Assets
Futures	$	6,470,501	$	(1,945,563)	$	4,524,938	$	-	$	-	$	4,524,938
Forwards		3,276,785		(1,985,045)		1,291,740		-		-		1,291,740

Total assets	$	9,747,286	$	(3,930,608)	$	5,816,678	$	-	$	-	$	5,816,678

Liabilities
Futures	$	(1,945,563)	$	1,945,563	$	-	$	-	$	-	$	-
Forwards		(1,985,045)		1,985,045		-		-		-		-

Total liabilities	$	(3,930,608)	$	3,930,608	$	-	$	-	$	-	$	-

Net fair value											$	5,816,678	*

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 in 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 December 31, 2018 and 2017, respectively.


	December 31, 2018
Assets
Futures Contracts
Commodity	$	1,479,301
Equity		603,645
Currencies		12,269
Interest Rates		1,274,802

Total unrealized appreciation on open futures contracts		3,370,017


Liabilities
Futures Contracts
Commodity		(1,605,268)
Equity		(1,004,340)
Currencies		(61,986)
Interest Rates		(1,751,380)

Total unrealized depreciation on open futures contracts		(4,422,974)

Net unrealized depreciation on open futures contracts	$	(1,052,957)	*


Assets
Forward Contracts
Commodity	$	751,884
Currencies		1,128,584

Total unrealized appreciation on open forward contracts		1,880,468


Liabilities
Forward Contracts
Commodity		(341,019)
Currencies		(1,823,265)

Total unrealized depreciation on open forward contracts		(2,164,284)

Net unrealized depreciation on open forward contracts	$	(283,816)	**

*	This amount is in “Net unrealized depreciation 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	$	3,582,239
Equity		1,462,121
Currencies		76,914
Interest Rates		1,349,227

Total unrealized appreciation on open futures contracts		6,470,501


Liabilities
Futures Contracts
Commodity		(538,303)
Equity		(436,625)
Currencies		(11,984)
Interest Rates		(958,651)

Total unrealized depreciation on open futures contracts		(1,945,563)

Net unrealized appreciation on open futures contracts	$	4,524,938	*


Assets
Forward Contracts
Commodity	$	1,760,347
Currencies		1,516,438

Total unrealized appreciation on open forward contracts		3,276,785


Liabilities
Forward Contracts
Commodity		(303,656)
Currencies		(1,681,389)

Total unrealized depreciation on open forward contracts		(1,985,045)

Net unrealized appreciation on open forward contracts	$	1,291,740	**

*	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 trading gains and losses, by market sector, on derivative instruments for the years ended December 31, 2018, 2017 and 2016, respectively.


Sector	2018			2017			2016
Commodity	$	(4,944,164)		$	(671,410)		$	(22,477,498)
Equity		(6,517,413)			27,931,380			(3,793,015)
Currencies		(4,275,072)			(10,774,286)			(1,241,179)
Interest Rates		(2,075,939)			(5,786,047)			8,122,229

Total	$	(17,812,588)	***	$	10,699,637	***	$	(19,389,463)	***

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