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Derivatives and Hedging
 3 Months Ended
Mar. 31, 2014
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 regards 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 March 31, 2014 and December 31, 2013, respectively.

Offsetting of Derivative Assets and Liabilities as of March 31, 2014:
 
 
 
Gross Amounts
Recognized
  
Gross Amounts
Offset in the Statement of Financial
Condition
  
Net Amounts
Presented in the Statement of
Financial
Condition
 
 
 
$
  
$
  
$
 
Assets
            
Futures
  
791,188
   
(414,991
)
  
376,197
 
Forwards
  
2,039,742
   
(2,015,353
)
  
24,389
 
 
            
Total Assets
  
2,830,930
   
(2,430,344
)
  
400,586
 
 
            
Liabilities
            
Futures
  
(414,991
)
  
414,991
   
–
 
Forwards
  
(2,015,353
)
  
2,015,353
   
–
 
 
            
Total Liabilities
  
(2,430,344
)
  
2,430,344
   
–
 
 
            
Unrealized currency loss
          
(2,385,873
)
 
            
Total net unrealized loss on open contracts
          
(1,985,287
)

Offsetting of Derivative Assets and Liabilities as of December 31, 2013:

 
 
Gross Amounts
Recognized
  
Gross Amounts
Offset in the Statement of Financial
Condition
  
Net Amounts
Presented in the Statement of
Financial
Condition
 
 
 
$
  
$
  
$
 
Assets
            
Futures
  
1,306,032
   
(374,233
)
  
931,799
 
Forwards
  
528,118
   
(296,785
)
  
231,333
 
 
            
Total Assets
  
1,834,150
   
(671,018
)
  
1,163,132
 
 
            
Liabilities
            
Futures
  
(374,233
)
  
374,233
   
–
 
Forwards
  
(296,785
)
  
296,785
   
–
 
 
            
Total Liabilities
  
(671,018
)
  
671,018
   
–
 
 
            
Unrealized currency loss
          
(2,388,713
)
 
            
 
            
Net unrealized loss on open contracts
          
(1,225,581
)
 
The effect of Trading Activities on the Statements of Financial Condition as of March 31, 2014:

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 three months (absolute quantity)
 
 
 
$
  
$
  
$
  
$
  
  
$
 
Commodity
  
463,067
   
(174,288
)
  
84,607
   
(223,217
)
  
150,169
   
1,169
 
Equity
  
215,746
   
(78,691
)
  
24,443
   
(15,517
)
  
145,981
   
407
 
Foreign currency
  
1,493,296
   
(457,848
)
  
384,688
   
(1,262,317
)
  
157,819
   
603
 
Interest rate
  
127,961
   
(173,321
)
  
37,122
   
(45,145
)
  
(53,383
)
  
1,215
 
Total
  
2,300,070
   
(884,148
)
  
530,860
   
(1,546,196
)
  
400,586
     
 
                        
Unrealized currency loss
                  
(2,385,873
)
    
Total net unrealized loss on open contracts
                  
(1,985,287
)
    

The effect of Trading Activities on the Statements of Financial Condition as of December 31, 2013:

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
  
8,370
   
(210,864
)
  
205,290
   
(23,930
)
  
(21,134
)
  
662
 
Equity
  
968,426
   
–
   
5,650
   
(9,857
)
  
964,219
   
549
 
Foreign currency
  
73,963
   
(26,337
)
  
454,118
   
(270,448
)
  
231,296
   
5,227
 
Interest rate
  
41
   
(128,798
)
  
118,292
   
(784
)
  
(11,249
)
  
1,357
 
Total
  
1,050,800
   
(365,999
)
  
783,350
   
(305,019
)
  
1,163,132
     
 
                        
Unrealized currency loss
                  
(2,388,713
)
    
Net unrealized loss on open contracts
                  
(1,225,581
)
    
 
The following tables summarize the net trading results of the Partnership for the quarters ended March 31, 2014 and 2013, respectively.

The effect of Trading Activities on the Statements of Income and Expenses for the Quarter Ended March 31, 2014 included in Total Trading Results:


Type of Instrument
 
$
 
 
    
Commodity
  
(1,301,375
)
Equity
  
(1,628,839
)
Foreign currency
  
(513,000
)
Interest rate
  
155,047
 
Unrealized currency gain
  
2,840
 
Total
  
(3,285,327
)


Line items on the Statements of Income and Expenses for the Quarter Ended March 31, 2014:
Trading Results
 
$
 
 
    
Net realized
  
(2,525,621
)
Net change in unrealized
  
(759,706
)
Total Trading Results
  
(3,285,327
)

The effect of Trading Activities on the Statements of Income and Expenses for the Quarter Ended March 31, 2013 included in Total Trading Results:

Type of Instrument
 
$
 
 
    
Commodity
  
658,208
 
Equity
  
1,735,606
 
Foreign currency
  
1,723,625
 
Interest rate
  
(963,194
)
Unrealized currency loss
  
(22,141
)
Total
  
3,132,104
 

Line items on the Statements of Income and Expenses for the Quarter Ended March 31, 2013:
 
Trading Results
 
$
 
 
    
Net realized
  
3,377,941
 
Net change in unrealized
  
(245,837
)
Total Trading Results
  
3,132,104