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Trading Activities
 12 Months Ended
Dec. 31, 2018
Brokers and Dealers [Abstract]  
Trading Activities
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 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 Statements of Income and Expenses.

The Partnership Customer Agreement and the Funds’ future brokerage agreements (the “Master Customer Agreements” and, together with the Partnership Customer Agreement, the “Customer Agreements”) with MSCo. 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 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 1,762 and 1,874, respectively. The monthly average number of option contracts traded directly by the Partnership during the years ended December 31, 2018 and 2017 were 181 and 75, 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 $3,510,381 and $63,983,108, 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 directly by the Partnership for its direct trading. In addition, clearing fees are borne by the Funds and are allocated to the Funds’ limited partners, 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 agreements or similar arrangements as of December 31, 2018 and 2017, respectively.

 

December 31, 2018

    Gross
Amounts
Recognized		      Gross Amounts
Offset in the
Statements of
Financial
Condition		      Amounts
Presented in the
Statements of
Financial
Condition		      Gross Amounts Not Offset in the
Statements of Financial Condition		         
   Financial
Instruments		      Cash Collateral
Received/
Pledged*		      Net
Amount		  

Assets

                  

Futures

      $ 851,529          $ (757,896)         $ 93,633          $         -            $ -            $ 93,633    
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total assets

      $ 851,529          $ (757,896)         $ 93,633          $ -            $ -            $ 93,633    
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Liabilities

                  

Futures

      $ (757,896)         $ 757,896          $ -            $ -            $ -            $ -      
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total liabilities

      $ (757,896)         $ 757,896          $ -            $ -            $ -            $ -      
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Fair Value

                     $ 93,633   * 
              

 

 

  

December 31, 2017

    Gross
Amounts
Recognized		      Gross Amounts
Offset in the
Statements of
Financial
Condition		      Amounts
Presented in the
Statements of
Financial
Condition		      Gross Amounts Not Offset in the
Statements of Financial Condition		         
   Financial
Instruments		      Cash Collateral
Received/
Pledged*		      Net
Amount		  

Assets

                  

Futures

      $ 710,148          $ (522,665)         $ 187,483          $         -            $ -            $ 187,483    
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total assets

      $ 710,148          $ (522,665)         $ 187,483          $ -            $ -            $ 187,483    
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Liabilities

                  

Futures

      $ (522,665)         $ 522,665          $ -            $ -            $ -            $ -      
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total liabilities

      $ (522,665)         $ 522,665          $ -            $ -            $ -            $ -      
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Fair Value

                     $ 187,483   * 
                 

 

 

  

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

 

Assets    December 31, 2018  

Futures Contracts

   

Currencies

      $ 117,929    

Energy

      84,783    

Grains

      59,786    

Indices

      188,979    

Interest Rates U.S.

      110,603    

Interest Rates Non-U.S.

      239,824    

Livestock

      6,430    

Metals

      23,688    

Softs

      19,507    
  

 

 

  

Total unrealized appreciation on open futures contracts

      851,529    
  

 

 

  

Liabilities

   

Futures Contracts

   

Currencies

      (148,721)   

Energy

      (103,128)   

Grains

      (116,823)   

Indices

      (101,999)   

Interest Rates U.S.

      (100,422)   

Interest Rates Non-U.S.

      (127,847)   

Livestock

      (2,880)   

Metals

      (5,835)   

Softs

      (50,241)   
  

 

 

  

Total unrealized depreciation on open futures contracts

      (757,896)   
  

 

 

  

Net unrealized appreciation on open futures contracts

      $ 93,633  * 
  

 

 

  

 

*

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

 

Assets    December 31, 2017  

Futures Contracts

   

Currencies

      $ 94,211    

Energy

      214,439    

Grains

      69,673    

Indices

      62,560    

Interest Rates U.S.

      14,844    

Interest Rates Non-U.S.

      16,572    

Livestock

      144,163    

Metals

      50,653    

Softs

      43,033    
  

 

 

  

Total unrealized appreciation on open futures contracts

      710,148    
  

 

 

  

Liabilities

   

Futures Contracts

   

Currencies

      (60,036)   

Energy

      (39,440)   

Grains

      (17,591)   

Indices

      (147,661)   

Interest Rates U.S.

      (5,813)   

Interest Rates Non-U.S.

      (22,410)   

Livestock

      (138,305)   

Metals

      (40,050)   

Softs

      (51,359)   
  

 

 

  

Total unrealized depreciation on open futures contracts

      (522,665)   
  

 

 

  

Net unrealized appreciation on open futures contracts

      $ 187,483  * 
  

 

 

  

Assets

   

Options Purchased

   

Energy

      $ 43,000    

Softs

      8,625    
  

 

 

  

Total options purchased

      $     51,625  ** 
  

 

 

  

Liabilities

   

Options Written

   

Energy

    $ (23,000)   
  

 

 

  

Total options written

      $ (23,000)  *** 
  

 

 

  

 

*

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

 

**

This amount is in “Options purchased, at fair value” in the Statements of Financial Condition.

 

***

This amount is in “Options written, at fair value” 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

      $ (522,483)        $ 205,969         $ 219,420    

Energy

      (118,612)        (471,773)        1,020,372    

Grains

      (194,106)        (803,721)        (81,019)   

Indices

      517,449         497,548         (152,017)   

Interest Rates U.S.

      220,851         (254,500)        (1,253,337)   

Interest Rates Non-U.S.

      322,348         29,826         1,238,890    

Livestock

      (105,180)        (29,930)        (54,052)   

Metals

      170,796         (1,540)        (454,501)   

Softs

      14,669         (342,697)        (261,639)   
  

 

 

    

 

 

    

 

 

  

Total

      $ 305,732  ****      $ (1,170,818)  ****      $ 222,117  **** 
  

 

 

    

 

 

    

 

 

  

 

****

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