Derivatives and Hedging

9 Months Ended

Sep. 30, 2011

Derivatives and Hedging [Abstract]

Derivatives and Hedging

5.  Derivatives and Hedging

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 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.  With regard to foreign currency forward trades, each notional quantity amount has been converted to an equivalent contract based upon an industry convention.

The following tables summarize the valuation of the Partnership's investments as of September 30, 2011 and December 31, 2010, respectively.

The Effect of Trading Activities on the Statements of Financial Condition as of September 30, 2011:

Futures and Forward Contracts	Long Unrealized Gain	Long Unrealized Loss	Short Unrealized Gain	Short Unrealized Loss	Net   Unrealized Gain	Average number of contracts outstanding for the nine months   (absolute quantity)
	$	$	$	$	$
Foreign currency	74,018	(161,023)	1,552,379	(127,708)	1,337,666	5,577
Total	74,018	(161,023)	1,552,379	(127,708)	1,337,666
Unrealized currency gain					44,886
Total net unrealized gain on open contracts					1,382,552

		Average number of
		contracts outstanding
		for the nine months
		(absolute quantity)
Option Contracts at Fair Value	$
Options purchased	760	1
Options written	–	1

The Effect of Trading Activities on the Statements of Financial Condition as of December 31, 2010:

Futures and Forward Contracts	Long                    Unrealized                              Gain	Long                       Unrealized                            Loss	Short Unrealized Gain	Short Unrealized Loss	Net   Unrealized  Gain	Average number of contracts outstanding for the year  (absolute quantity)
	$	$	$	$	$
Foreign currency	1,132,624	(43,007)	169,153	(248,617)	1,010,153	6,867
Total	1,132,624	(43,007)	169,153	(248,617)	1,010,153
Unrealized currency gain					108,283
Total net unrealized  gain on open contracts					1,118,436

		Average number of
		contracts outstanding
		for the year
		(absolute quantity)
Option Contracts at Fair Value	$
Options purchased	4,459	3
Options written	–	2

The following tables summarize the net trading results of the Partnership for the three and nine months ended September 30, 2011 and 2010, respectively.

The Effect of Trading Activities on the Statements of Income and Expenses for the Three and Nine Months Ended September 30, 2011 included in Total Trading Results:

	For the Three Months	For the Nine Months
	Ended September 30, 2011	Ended September 30, 2011
Type of Instrument	$	$
Foreign currency	1,524,199	(512,236)
Unrealized currency loss	(18,235)	(36,822)
Total	1,505,964	(549,058)

Line Items on the Statements of Income and Expenses for the Three and Nine Months Ended September 30, 2011:

	For the Three Months	For the Nine Months
	Ended September 30, 2011	Ended September 30, 2011
Trading Results	$	$
Realized	110,272	(805,585)
Net change in unrealized	1,395,692	256,527
Total Trading Results	1,505,964	(549,058)

The Effect of Trading Activities on the Statements of Income and Expenses for the Three and Nine Months Ended September 30, 2010 included in Total Trading Results:

	For the Three Months	For the Nine Months
	Ended September 30, 2010	Ended September 30, 2010
Type of Instrument	$	$
Foreign  currency	432,594	(276,880)
Unrealized currency gain	50,910	5,344
Total	483,504	(271,536)

Line Items on the Statements of Income and Expenses for the Three and Nine Months Ended September 30, 2010:

	For the Three Months	For the Nine Months
	Ended September 30, 2010	Ended September 30, 2010
Trading Results	$	$
Realized	(403,574)	(1,168,029)
Net change in unrealized	887,078	896,493
Total Trading Results	483,504	(271,536)