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Derivatives and Hedging
 9 Months Ended
Sep. 30, 2013
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 Advisor for the Partnership 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. With regard to foreign currency forward trades, each notional quantity amount has been converted to an equivalent contract based upon an industry convention.
 
On January 1, 2013, the Partnership adopted Accounting Standards Update (“ASU”) 2011-11, “Disclosure about Offsetting Assets and Liabilities” and ASU 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities”. ASU 2011-11 created a new disclosure requirement about the nature of an entity’s rights to setoff and the related arrangements associated with its financial instruments and derivative instruments, while ASU 2013-01 clarified the types of instruments and transactions that are subject to the offsetting disclosure requirements established by ASU 2011-11. Entities are required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The objective of these disclosures is to facilitate comparison between those entities that prepare their financial statements on the basis of accounting principles generally accepted in the United States of America (“U.S. GAAP”) and those entities that prepare their financial statements on the basis of International Financial Reporting Standards. The new guidance did not have a significant impact on the Partnership’s financial statements.
 
The following tables summarize the valuation of the Partnership’s investments as of September 30, 2013 and December 31, 2012, respectively.

Offsetting of Derivative Assets and Liabilities as of September 30, 2013:
 
 
 
Gross Amounts
Recognized
  
Gross Amounts
Offset in the
Statement of
Financial
Condition
  
Net Amounts
Presented in the
Statement of
Financial
Condition
 
 
 $  
$
  
$
 
Assets
 
  
  
 
Futures
  
208,289
   
(429,969
)
  
(221,680
)
Forwards
  
641,426
   
(414,742
)
  
226,684
 
 
            
Total Assets
  
849,715
   
(844,711
)
  
5,004
 
 
            
Liabilities
            
Futures
  
165,553
   
(432,034
)
  
(266,481
)
Forwards
  
–
   
(243,299
)
  
(243,299
)
 
            
Total Liabilities
  
165,553
   
(675,333
)
  
(509,780
)
 
            
Unrealized currency loss
          
(2,377,397
)
 
            
Total net unrealized loss on open contracts
          
(2,882,173
)
 
Offsetting of Derivative Assets and Liabilities as of December 31, 2012:

 
 
Gross Amounts
Recognized
  
Gross Amounts
Offset in the
Statement of
Financial
Condition
  
Net Amounts
Presented in the
Statement of
Financial
Condition
 
 
 $  $  
$
 
Assets
 
  
  
 
Futures
  
652,044
   
(286,987
)
  
365,057
 
Forwards
  
142,466
   
(206,649
)
  
(64,183
)
 
            
Total Assets
  
794,510
   
(493,636
)
  
300,874
 
 
            
Liabilities
            
Futures
  
147,160
   
(133,216
)
  
13,944
 
Forwards
  
1,037,514
   
(68,153
)
  
969,361
 
 
            
Total Liabilities
  
1,184,674
   
(201,369
)
  
983,305
 
 
            
Unrealized currency loss
          
(2,389,680
)
 
            
Net unrealized loss on open contracts
          
(1,105,501
)
 
The Effect of Trading Activities on the Statements of Financial Condition as of September 30, 2013:

Futures and Forward Contracts
 
Long
Unrealized
Gain
  
Long
Unrealized
Loss
  
Short
Unrealized
Gain
  
Short
Unrealized
Loss
  
Net
Unrealized
Loss
  
Average
number of
contracts
outstanding
for the nine
months
(absolute
quantity)
 
 
 $  $  $  $  $  
 
Commodity
  
54,942
   
(148,050
)
  
165,553
   
(289,562
)
  
(217,117
)
  
641
 
Equity
  
46,490
   
(281,922
)
  
–
   
(26,600
)
  
(262,032
)
  
560
 
Foreign currency
  
641,426
   
(414,739
)
  
–
   
(243,299
)
  
(16,612
)
  
5,343
 
Interest rate
  
106,857
   
–
   
–
   
(115,872
)
  
(9,015
)
  
1,468
 
Total
  
849,715
   
(844,711
)
  
165,553
   
(675,333
)
  
(504,776
)
    
 
                        
Unrealized currency loss
                  
(2,377,397
)
    
Total net unrealized loss on open contracts
                  
(2,882,173
)
    
 
The Effect of Trading Activities on the Statements of Financial Condition as of December 31, 2012:

Futures and Forward Contracts
 
Long
Unrealized
Gain
  
Long
Unrealized
Loss
  
Short
Unrealized
Gain
  
Short
Unrealized
Loss
  
Net
Unrealized
Gain/(Loss)
  
Average
number of
contracts
outstanding
for the year
(absolute
quantity)
 
 
 $  $  $  $  $  
 
 
 
  
  
  
  
  
 
Commodity
  
101,521
   
(62,923
)
  
147,045
   
(47,790
)
  
137,853
   
531
 
Equity
  
378,456
   
(157,913
)
  
–
   
(12,055
)
  
208,488
   
464
 
Foreign currency
  
142,465
   
(206,669
)
  
1,037,514
   
(68,152
)
  
905,158
   
4,815
 
Interest rate
  
172,068
   
(66,131
)
  
115
   
(73,372
)
  
32,680
   
2,003
 
Total
  
794,510
   
(493,636
)
  
1,184,674
   
(201,369
)
  
1,284,179
     
 
                        
Unrealized currency loss
                  
(2,389,680
)
    
Net unrealized loss on open contracts
                  
(1,105,501
)
    

The following tables summarize the net trading results of the Partnership for the three and nine months ended September 30, 2013 and 2012, respectively.

The Effect of Trading Activities on the Statements of Income and Expenses for the Three and Nine Months Ended September 30, 2013 included in Total Trading Results:

 
 
For the Three Months
  
For the Nine Months
 
 
 
Ended September 30, 2013
  
Ended September 30, 2013
 
Type of Instrument
 $  $ 
 
 
  
 
Commodity
  
(1,398,611
)
  
1,893,887
 
Equity
  
1,154,822
   
3,313,699
 
Foreign currency
  
(717,567
)
  
953,135
 
Interest rate
  
166,107
   
(1,128,490
)
Unrealized currency gain
  
10,188
   
12,282
 
Total
  
(785,061
)
  
5,044,513
 
 
Line Items on the Statements of Income and Expenses for the Three and Nine Months Ended September 30, 2013:
 
 
 
For the Three Months
  
For the Nine Months
 
 
 
Ended September 30, 2013
  
Ended September 30, 2013
 
Trading Results
 $  
$
 
 
 
  
 
Net realized
  
121,421
   
6,821,185
 
Net change in unrealized
  
(906,482
)
  
(1,776,672
)
Total Trading Results
  
(785,061
)
  
5,044,513
 
 
The Effect of Trading Activities on the Statements of Income and Expenses for the Three and Nine Months Ended September 30, 2012 included in Total Trading Results:
 
 
 
For the Three Months
  
For the Nine Months
 
 
 
Ended September 30, 2012
  
Ended September 30, 2012
 
Type of Instrument
 $  $ 
 
 
  
 
Commodity
  
607,900
   
1,906,601
 
Equity
  
1,240,490
   
1,523,502
 
Foreign currency
  
234,894
   
(415,542
)
Interest rate
  
467,052
   
3,222,228
 
Unrealized currency gain (loss)
  
11,264
   
(683
)
Total
  
2,561,600
   
6,236,106
 

Line Items on the Statements of Income and Expenses for the Three and Nine Months Ended September 30, 2012:
 
 
 
For the Three Months
  
For the Nine Months
 
 
Ended September 30, 2012
Ended September 30, 2012
Trading Results
 $  $ 
 
 
  
 
Net realized
  
97,418
   
7,879,650
 
Net change in unrealized
  
2,464,182
   
(1,643,544
)
Total Trading Results
  
2,561,600
   
6,236,106