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 are shown in the Partnership’s Statements of Income and Expenses.

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

All of the commodity interests owned directly by the Partnership are held for trading purposes. All of the commodity interests owned by the Funds are held for trading purposes. The monthly average number of futures contracts traded directly by the Partnership during the years ended December 31, 2018 and 2017 were 7,474 and 20,043, respectively. The monthly average number of metals forward contracts traded directly by the Partnership during the years ended December 31, 2018 and 2017 were 758 and 2,202, respectively. The monthly average notional value of currency forward contracts traded directly by the Partnership during the years ended December 31, 2018 and 2017 were $316,081,746 and $1,253,145,597, respectively.

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

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

The following tables summarize the gross and net amounts recognized relating to assets and liabilities of the Partnership’s derivatives and their offsetting subject to master netting or similar arrangements as of December 31, 2018 and 2017, respectively.


				Gross Amounts			Amounts		Gross Amounts Not Offset in the
				Offset in the			Presented in the		Statements of Financial Condition
	Gross			Statements of			Statements of				Cash Collateral
	Amounts			Financial			Financial		Financial		Received/
December 31, 2018	Recognized			Condition			Condition		Instruments		Pledged*		Net Amount
Assets
Forwards	$	137,302		$	(108,245	)	$	29,057	$	—	$	—	$	29,057

Total assets	$	137,302		$	(108,245	)	$	29,057	$	—	$	—	$	29,057

Liabilities
Forwards	$	(108,245	)	$	108,245		$	—	$	—	$	—	$	—

Total liabilities	$	(108,245	)	$	108,245		$	—	$	—	$	—	$	—

Net fair value													$	29,057	*


				Gross Amounts			Amounts		Gross Amounts Not Offset in the
				Offset in the			Presented in the		Statements of Financial Condition
	Gross			Statements of			Statements of				Cash Collateral
	Amounts			Financial			Financial		Financial		Received/
December 31, 2017	Recognized			Condition			Condition		Instruments		Pledged*		Net Amount
Assets
Futures	$	9,793,492		$	(4,789,432	)	$	5,004,060	$	—	$	—	$	5,004,060
Forwards		11,774,122			(10,900,848	)		873,274		—		—		873,274

Total assets	$	21,567,614		$	(15,690,280	)	$	5,877,334	$	—	$	—	$	5,877,334

Liabilities
Futures	$	(4,789,432	)	$	4,789,432		$	—	$	—	$	—	$	—
Forwards		(10,900,848	)		10,900,848			—		—		—		—

Total liabilities	$	(15,690,280	)	$	15,690,280		$	—	$	—	$	—	$	—

Net fair value													$	5,877,334	*

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 held directly by the Partnership as separate assets and liabilities as of December 31, 2018 and 2017, respectively.


	December 31, 2018
Assets
Forward Contracts
Metals	$	137,302

Total unrealized appreciation on open forward contracts		137,302

Liabilities
Forward Contracts
Metals		(108,245	)

Total unrealized depreciation on open forward contracts		(108,245	)

Net unrealized appreciation on open forward contracts	$	29,057	*

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


	December 31, 2017
Assets
Futures Contracts
Energy	$	4,510,786
Grains		629,298
Indices		2,719,041
Interest Rates U.S.		71,430
Interest Rates Non-U.S.		641,412
Metals		666,037
Softs		555,488

Total unrealized appreciation on open futures contracts		9,793,492

Liabilities
Futures Contracts
Energy		(787,785	)
Grains		(29,437	)
Indices		(1,479,383	)
Interest Rates U.S.		(757,358	)
Interest Rates Non-U.S.		(1,322,106	)
Livestock		(27,290	)
Metals		(263,285	)
Softs		(122,788	)

Total unrealized depreciation on open futures contracts		(4,789,432	)

Net unrealized appreciation on open futures contracts	$	5,004,060	*

Assets
Forward Contracts
Currencies	$	8,187,150
Metals		3,586,972

Total unrealized appreciation on open forward contracts		11,774,122

Liabilities
Forward Contracts
Currencies		(7,330,639	)
Metals		(3,570,209	)

Total unrealized depreciation on open forward contracts		(10,900,848	)

Net unrealized appreciation on open forward contracts	$	873,274	**

*	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 traded directly by the Partnership for the years ended December 31, 2018, 2017 and 2016, respectively.


Sector	2018			2017			2016
Currencies	$	(3,364,175	)	$	(7,867,522	)	$	3,080,007
Energy		2,715,862			(106,263	)		(12,279,027	)
Grains		(3,115,089	)		(4,270,109	)		(210,422	)
Indices		(6,559,366	)		29,363,266			(6,694,075	)
Interest Rates U.S.		(2,158,832	)		(4,548,710	)		(4,607,629	)
Interest Rates Non-U.S.		(631,329	)		(7,142,822	)		4,717,308
Livestock		(155,263	)		(902,168	)		(1,279,792	)
Metals		(1,219,114	)		(404,789	)		(4,359,666	)
Softs		708,983			(233,585	)		(1,168,318	)

Total	$	(13,778,323	)***	$	3,887,298	***	$	(22,801,614	)***

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