4.	Trading Activities:

The Partnership was formed for the purpose of trading contracts in a variety of commodity interests, including derivative financial instruments and derivative commodity instruments. The results of the Partnership’s trading activities are shown in the Statements of Income and Expenses. The Partnership also invests certain of its assets through a “master/feeder” structure. The Partnership’s pro-rata share of the results of the Funds’ trading activities is shown in the Statements of Income and Expenses.

The Customer Agreement and the Funds’ futures brokerage account agreements with MS&Co. give the Partnership and the Funds, respectively, the legal right to net unrealized gains and losses on open futures contracts and open forward contracts in their respective Statements of Financial Condition. The Partnership and the Funds net, for financial reporting purposes, the unrealized gains and losses on open futures contracts and open forward contracts in their respective Statements of Financial Condition as the criteria under ASC 210-20, “Balance Sheet,” have been met.

All of the Futures Interests owned directly by the Partnership are held for trading purposes. All of the Futures Interests owned by the Funds are held for trading purposes. The monthly average number of futures contracts traded directly by the Partnership during the year ended December 31, 2018 was 44. The monthly average number of option contracts traded directly by the Partnership during the year ended December 31, 2018 was 2. The assets of the Partnership were not traded directly during the year ended December 31, 2017.

Trading and transaction fees are based on the number of trades executed by the Trading Advisors and the Partnership’s respective percentage ownership of each Fund.

All clearing fees paid to MS&Co. are borne directly by the Partnership for its direct trading. In addition, clearing fees are borne by the Funds and allocated to the Funds’ limited partners/members, including the Partnership.

The following table summarizes the gross and net amounts recognized relating to assets and liabilities of the Partnership’s derivatives and their offsetting subject to master netting arrangements or similar agreements as of December 31, 2018.


			Gross Amounts Offset in the		Amounts Presented in the		Gross Amounts Not Offset in the Statements of Financial Condition
December 31, 2018	Gross Amounts Recognized		Statements of Financial Condition		Statements of Financial Condition		Financial Instruments		Cash Collateral Received/ Pledged*		Net Amount
Assets
MS&Co.
Futures	$	15,181	$	(15,181)	$	–	$	–	$	–	$	–

Total assets	$	15,181	$	(15,181)	$	–	$	–	$	–	$	–


Liabilities
MS&Co.
Futures	$	(25,826)	$	15,181	$	(10,645)	$	–	$	–	$	(10,645)

Total liabilities	$	(25,826)	$	15,181	$	(10,645)	$	–	$	–	$	(10,645)

Net fair value											$	(10,645)	*

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 table indicates the gross fair values of derivative instruments of futures contracts held directly by the Partnership as separate assets and liabilities as of December 31, 2018. There were no direct investments held by the Partnership at December 31, 2017.


	December 31, 2018
Assets
Futures Contracts
Currencies	$	15,181

Total unrealized appreciation on open futures contracts		15,181


Liabilities
Futures Contracts
Currencies		(25,826	)

Total unrealized depreciation on open futures contracts		(25,826	)

Net unrealized depreciation on open futures contracts	$	(10,645	) *

*	This amount is in “Net unrealized depreciation on open futures contracts” in the Statements of Financial Condition.

The following table indicates the trading gains and losses, by market sector, on derivative instruments traded directly by the Partnership for the year ended December 31, 2018. During the years ended December 31, 2017 and 2016, no derivative instruments were traded directly by the Partnership.


Sector	2018
Currencies	$	332,447
Energy		1,882
Indices		68,307
Interest Rates U.S.		17,489
Interest Rates Non-U.S.		(14,624)
Metals		(6,033)


Total	$	399,468	**

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