10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended: September 30, 2012

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to            

Commission File Number: 000-51651

WORLD MONITOR TRUST III – SERIES J

(Exact name of registrant as specified in its charter)

Delaware	20-2446281
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
900 King Street, Suite 100, Rye Brook, New York	10573
(Address of principal executive offices)	(Zip Code)

(914) 307-7000

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “accelerated filer”, “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x	Smaller Reporting Company	¨

Indicate by check mark whether Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

WORLD MONITOR TRUST III – SERIES J

INDEX TO QUARTERLY REPORT ON FORM 10-Q

SEPTEMBER 30, 2012

		Page
PART I – FINANCIAL INFORMATION			3
Item 1.	Condensed Financial Statements		3
	World Monitor Trust III – Series J		4
	Condensed Statements of Financial Condition as of September 30, 2012 (Unaudited) and December 31, 2011		5
	Condensed Schedules of Investments as of September 30, 2012 (Unaudited) and December 31, 2011		6
	Condensed Statements of Operations (Unaudited) for the Three Months and Nine Months Ended September 30, 2012 and 2011		7
	Condensed Statements of Changes in Unitholders’ Capital (Unaudited) for the Nine Months Ended September 30, 2012 and 2011		8
	Notes to Condensed Financial Statements (Unaudited)		9-29
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		43
Item 4.	Controls and Procedures		46
PART II – OTHER INFORMATION			47
Item 1.	Legal Proceedings		47
Item 1.A.	Risk Factors		47
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		47
Item 3.	Defaults Upon Senior Securities		48
Item 5.	Other Information		48
Item 6.	Exhibits		48

2

PART I – FINANCIAL INFORMATION

Item 1. Condensed Financial Statements

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK;

FINANCIAL STATEMENTS TO FOLLOW]

3

WORLD MONITOR TRUST III – SERIES J

CONDENSED FINANCIAL STATEMENTS

September 30, 2012 (Unaudited)

4

WORLD MONITOR TRUST III – SERIES J

CONDENSED STATEMENTS OF FINANCIAL CONDITION

September 30, 2012 (Unaudited) and December 31, 2011

	September 30, 2012		December 31, 2011
ASSETS
Cash and cash equivalents (see Note 2)	$	19,752,044	$	69,314,843
Dividend receivable		0		50,972
Due from Affiliated Investment Funds		0		7,020,672
Investment in Affiliated Investment Funds, at fair value (cost $21,143,635 and $8,401,176 at September 30, 2012 and December 31, 2011, respectively)		21,004,565		8,207,427
Investment in securities, at fair value (cost $75,524,644 and $62,015,348 at September 30, 2012 and December 31, 2011, respectively)		76,087,999		62,015,348
Total assets	$	116,844,608	$	146,609,262
LIABILITIES
Accrued expenses payable	$	179,670	$	148,364
Interest payable to Managing Owner		50,409		0
Trading advisors’ incentive fees payable		0		180,647
Trading advisors’ management fees payable		0		35,884
Offering costs payable		30,130		25,016
Service fees payable (see Note 5)		174,321		201,379
Redemptions payable		2,886,254		795,582
Subscriptions received in advance		0		679,000
Total liabilities		3,320,784		2,065,872
UNITHOLDERS’ CAPITAL (Net Asset Value)
Class I Units:
Unitholders’ Units – 905,005.800 and 1,074,594.786 Units outstanding at September 30, 2012 and December 31, 2011, respectively		100,642,041		126,022,812
Managing Owner’s Units - none and none Units outstanding at September 30, 2012 and December 31, 2011, respectively		0		0
Class II Units:
Unitholders’ Units – 104,695.368 and 145,147.530 Units outstanding at September 30, 2012 and December 31, 2011, respectively		12,881,783		18,520,578
Managing Owner’s Units - none and none Units outstanding at September 30, 2012 and December 31, 2011, respectively		0		0
Total unitholders’ capital (Net Asset Value)		113,523,824		144,543,390
Total liabilities and unitholders’ capital	$	116,844,608	$	146,609,262
NET ASSET VALUE PER UNIT
Class I	$	111.58	$	117.27
Class II	$	123.04	$	127.60

See accompanying notes.

5

WORLD MONITOR TRUST III – SERIES J

CONDENSED SCHEDULES OF INVESTMENTS

September 30, 2012 (Unaudited) and December 31, 2011

	September 30, 2012					December 31, 2011
	Net Unrealized Gain/ (Loss) as a % of  Members’ Capital			Net Unrealized Gain/(Loss)		Net Unrealized Gain/ (Loss) as a % of  Members’ Capital			Net Unrealized Gain/(Loss)
Forward Contracts
Forward currency contracts purchased:
Net unrealized gain on forward currency contracts purchased		0.00	%	$	0		0.45	%		648,171
Forward currency contracts sold:
Net unrealized (loss) on forward currency contracts sold		0.00	%	$	0		(0.45	)%		(648,171	)
Net unrealized gain/(loss) on forward currency contracts		0.00	%	$	0		0.00	%		0
	Fair Value as a % of Unitholders’ Capital			Fair Value		Fair Value as a % of Unitholders’ Capital			Fair Value
Investment in Securities:
Publicly-traded mutual funds
JP Morgan Short Duration Bond (shares 2,300,966.650 and 2,831,751.050 at September 30, 2012 and December 31, 2011, respectively)		22.34	%	$	25,356,653		21.45	%	$	31,007,674
Fidelity Instl Shrt-Interm Govt (shares 2,494,139.120 and none at September 30, 2012 and December 31, 2011, respectively)		22.34	%	$	25,365,395		0.00	%	$	0
T. Rowe Price Short-Term Fund (shares 5,219,331.540 and 6,446,501.870 at September 30, 2012 and December 31, 2011, respectively)		22.34	%	$	25,365,951		21.45	%	$	31,007,674
Total investment in Securities (cost $75,524,644 and $62,015,348 at September 30, 2012 and December 31, 2011, respectively)		67.02	%	$	76,087,999		42.90	%	$	62,015,348
Investment in Affiliated Investment Funds:
Total investment in Affiliated Investment Funds (cost $21,143,635 and $8,401,176 at September 30, 2012 and December 31, 2011, respectively)		18.50	%	$	21,004,565		5.68	%	$	8,207,427

See accompanying notes.

6

WORLD MONITOR TRUST III – SERIES J

CONDENSED STATEMENTS OF OPERATIONS

For the Three Months and Nine Months Ended September 30, 2012 and 2011

(Unaudited)

	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012			2011
REVENUE
Realized	$	42,466		$	(1,072,328	)	$	91,195		$	4,604,303
Change in unrealized		265,684			1,367,489			563,355			(3,351,807	)
Dividend income		252,092			230,009			852,599			1,418,433
Interest income		1,204			4,387			8,889			9,470
Net gain from trading investments		561,446			529,557			1,516,038			2,680,399
Net realized (loss) on investments in Affiliated Investment Funds		(3,858,155	)		0			(3,788,602	)		0
Net change in unrealized appreciation / depreciation on investments in Affiliated Investment Funds		5,906,431			2,106,877			54,679			(1,285,300	)
Net gain (loss) from investments in Affiliated Investment Funds		2,048,276			2,106,877			(3,733,923	)		(1,285,300	)
Total gain (loss) on investments		2,609,722			2,636,434			(2,217,885	)		1,395,099
EXPENSES
Interest expenses		0			97			1,440			97
Brokerage commissions		0			102,281			0			354,166
Management fees to Managing Owner		146,833			189,882			477,864			574,657
ClariTy Managed Account fees (see Note 4)		0			94,604			0			287,328
Managing Owner interest earned on investment funds (see Note 4)		280,094			62,760			578,933			382,673
Trading Advisors’ management fees		0			334,190			0			1,152,631
Trading Advisors’ incentive fees		0			68,928			0			915,027
Services fees - Class I Units (see Note 5)		487,425			646,408			1,532,354			2,004,634
Sales commission		297,258			379,763			977,681			1,149,313
Offering costs		66,356			82,886			207,224			252,843
Operating expenses		156,318			205,217			472,660			590,421
Total expenses (1)		1,434,284			2,167,016			4,248,156			7,663,790
Net income (loss)	$	1,175,438		$	469,418		$	(6,466,041	)	$	(6,268,691	)
NET INCOME (LOSS) PER WEIGHTED AVERAGE UNITHOLDER AND MANAGING OWNER UNIT
Net income (loss) per weighted average unitholder and Managing Owner Unit
Class I	$	1.05		$	0.31		$	(5.93	)	$	(5.46	)
Class II	$	1.85		$	0.95		$	(4.76	)	$	(3.61	)
Weighted average number of units outstanding - Class I		931,277.000			1,076,821.000			993,027.000			1,058,124.000
Weighted average number of units outstanding - Class II		106,475.000			144,146.000			121,932.000			136,702.000

⁽¹⁾ Brokerage commissions, ClariTy Managed Account fees, Trading Advisors’ management and incentive fees, and administrator fees which were paid directly and are a part of operating expenses during 2011, are now paid indirectly and are included in net gain (loss) from investments in Affiliated Investment Funds, starting January 1, 2012.

See accompanying notes.

7

WORLD MONITOR TRUST III – SERIES J

CONDENSED STATEMENTS OF CHANGES IN UNITHOLDERS’ CAPITAL

For the Nine Months Ended September 30, 2012 and 2011

(Unaudited)

	Class I										Class II
	Unitholders						Managing Owner Interests				Unitholders						Managing Owner Interests						Total
	Units			Amount			Units		Amount		Units			Amount			Units			Amount			Units			Amount
Nine months ended September 30, 2012
Unitholders’ capital at December 31, 2011		1,074,594.786		$	126,022,812			0.000	$	0		145,147.530		$	18,520,578			0.000		$	0			1,219,742.316		$	144,543,390
Additions		15,976.621			1,864,200			0.000		0		2,524.264			314,000			0.000			0			18,500.885			2,178,200
Redemptions		(184,111.033	)		(20,860,298	)		0.000		0		(47,022.332	)		(5,871,427	)		0.000			0			(231,133.365	)		(26,731,725	)
Transfers		(4,454.574	)		(499,226	)		0.000		0		4,045.906			499,226			0.000			0			(408.668	)		0
Net loss					(5,885,447	)				0					(580,594	)					0						(6,466,041	)
Unitholders’ capital at September 30, 2012		902,005.800		$	100,642,041			0.000	$	0		104,695.368		$	12,881,783			0.000		$	0			1,006,701.168		$	113,523,824
Nine months ended September 30, 2011
Unitholders’ capital at December 31, 2010		1,033,469.123		$	132,255,516			0.000	$	0		125,308.427		$	17,110,868			2,362.860		$	322,649			1,161,140.410		$	149,689,033
Additions		142,710.559			17,860,228			0.000		0		33,133.431			4,456,556			0.000			0			175,843.990			22,316,784
Redemptions		(92,026.528	)		(11,433,882	)		0.000		0		(12,490.697	)		(1,698,469	)		(1,993.033	)		(269,455	)		(106,510.258	)		(13,401,806	)
Net loss					(5,775,370	)				0					(489,234	)					(4,087	)					(6,268,691	)
Unitholders’ capital at September 30, 2011		1,084,153.154		$	132,906,492			0.000	$	0		145,951.161		$	19,379,721			369.827		$	49,107			1,230,474.142		$	152,335,320

See accompanying notes.

8

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

Note 1. ORGANIZATION

A. General Description of the Trust

World Monitor Trust III (the “Trust”) is a business trust organized under the laws of Delaware on September 28, 2004. The Trust consisted of four separate and distinct series (“Series”): Series G, H, I and J. Series G, H, I and J commenced trading operations on December 1, 2005. As of December 31, 2007, Series G, H and I were no longer offered and had been dissolved. Series J will continue to exist unless terminated pursuant to the provisions of Article XIII of the Trust’s Fifth Amended and Restated Declaration of Trust and Trust Agreement (the “Trust Agreement”). The assets of each Series have been segregated from those of the other Series, separately valued and independently managed, and separate financial statements have been prepared for each Series. Each Series was formed to engage in the speculative trading of a diversified portfolio of futures, forward and options contracts and may, from time to time, engage in cash and spot transactions. The fiscal year end of Series J is December 31.

Effective July 1, 2012, Kenmar Preferred Investments Corp. changed its name and form of entity to Kenmar Preferred Investments, L.P. (“Kenmar Preferred” or the “Managing Owner”). Kenmar Preferred or Managing Owner refers to either Kenmar Preferred Investments Corp. or Kenmar Preferred Investments, L.P., depending on the applicable period discussed. As the Managing Owner of the Trust and of each Series, Kenmar Preferred conducts and manages the business of the Trust and each Series.

Series J allocated its net assets amongst the following Trading Advisor’s managed accounts (each a “Managed Account” and collectively, the “Managed Accounts”), with such allocations being re-balanced quarterly.

Managed Account	Trading Program	Start Date	Termination Date
Eagle Trading Systems Inc. (“Eagle”)	Momentum Program	01/01/08	04/30/11
Ortus Capital Management Limited (“Ortus”)	Major Currency Program	01/01/08	12/31/11
Graham Capital Management, L.P. (“Graham”)	K4D-15V Program	01/01/08	12/31/10
GLC Ltd. (“GLC”)	Behavioral Trend and Directional Programs	07/01/09	03/31/10
Krom River Investment Management (Cayman) Limited (“Krom”)	Commodity Diversified Program	07/01/09	09/30/11
Crabel Capital Management, LLC (“Crabel”)	Two Plus Program	07/01/09	08/31/11
Tudor Investment Corporation (“Tudor”)	Tudor Quantitative Commodities Strategy	04/01/10	10/31/11
Paskewitz Asset Management, LLC (“Paskewitz”)	Contrarian Stock Index Program	04/01/10	12/31/11

9

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 1. ORGANIZATION (CONTINUED)

A. General Description of the Trust (Continued)

Eagle, together with Ortus, Graham, GLC, Krom, Crabel, Tudor and Paskewitz, are each referred to herein as a “Trading Advisor” and collectively referred to herein as the “Trading Advisors”.

Effective January 1, 2011, Series J began transitioning its investments in direct Managed Accounts to accessing the Trading Advisors indirectly through segregated series of CTA Choice Fund LLC (“CTA Choice”), a Delaware limited liability company organized in series.

Affiliated Investment Fund	Trading Advisor	Trading Program	Start Date	Termination Date
CTA Choice GRM (“GRM”)*	Graham	K4D-15V Program	01/1/11	12/31/11
CTA Choice EAGL (“EAGL”)*	Eagle	Eagle Momentum Program	05/1/11
CTA Choice CRABL-PV (“CRABL-PV”)*	Crabel	Two Plus Program	09/1/11
CTA Choice KRM (“KRM”)*	Krom	Commodity Diversified Program	10/1/11
CTA Choice TDRM (“TDRM”)*	Tudor	Tudor Quantitative Commodities Strategy	11/1/11	12/31/11
CTA Choice EGLG (“EGLG”)**	Eagle	Eagle Global Program	01/1/12
CTA Choice ORT (“ORT”)*	Ortus	Major Currency Program	01/1/12
CTA Choice SAXN (“SAXN”)	Saxon Investment Corporation	Saxon Aggressive Diversified Program	01/1/12
CTA Choice BLKW (“BLKW”)	Blackwater Capital Management, LLC	Blackwater Global Program	01/1/12
CTA Choice BEAM (“BEAM”)	BEAM Bayesian Efficient Asset Management, LLC	BEAM Multi-Strategy Program	01/1/12

* Any loss carry forward from Series J’s Managed Account was transferred over to Series J’s member interest in the corresponding Affiliated Investment Fund.

** Effective January 1, 2012, the allocation to EAGL was split with a 50% allocation to EAGL and a 50% allocation EGLG.

GRM, together with EAGL, CRABL-PV, KRM, TDRM, EGLG, ORT, SAXN, BLKW and BEAM are each referred to herein as an “Affiliated Investment Fund” and collectively referred to herein as the “Affiliated Investment Funds.”

The Managing Owner may terminate any current Managed Account agreement with a Trading Advisor or select new Trading Advisors including investments in Affiliated Investment Funds, from time-to-time, in its sole discretion, in order to achieve the goals of Series J.

10

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 1. ORGANIZATION (CONTINUED)

A. General Description of the Trust (Continued)

Effective July 1, 2012, ClariTy Managed Account & Analytics Platform LLC changed its name and form of entity to ClariTy Managed Account & Analytics Platform, L.P. (“ClariTy”). ClariTy refers to either ClariTy Managed Account & Analytics Platform LLC or ClariTy Managed Account & Analytics Platform, L.P., depending on the applicable period discussed. ClariTy, an affiliate of Kenmar Preferred, serves as the managing member for CTA Choice. CTA Choice consists of multiple segregated series, each established pursuant to a separate Certificate of Designation prepared by CTA Choice’s managing member. Each series maintains separate and distinct records. The assets associated with each series, and the liabilities and obligations incurred with respect to a particular series are enforceable only against the assets of that series.

Effective July 1, 2012, Kenmar Global Investment Management LLC changed its name and form of entity to Kenmar Global Investment Management, L.P. (“Asset Allocator”). Asset Allocator refers to either Kenmar Global Investment Management LLC or Kenmar Global Investment Management, L.P., depending on the applicable period discussed. The Asset Allocator, an affiliate of the Managing Owner, is the Asset Allocator of CTA Choice. Pursuant to the Asset Allocation Agreements between the Managing Owner, the Asset Allocator, and each interestholder, the Asset Allocator determines the trading level of each interestholder’s assets and reallocates among the separate series of CTA Choice as agreed upon with the Trading Advisors. While the Asset Allocator receives no fees for such services from Series J, the Asset Allocator is paid management and incentive fees directly from the interestholders pursuant to each interestholder’s Asset Allocation Agreement.

B. Regulation

As a registrant with the Securities and Exchange Commission (“SEC”), the Trust and each Series are subject to the regulatory requirements under the Securities Act of 1933 and the Securities Exchange Act of 1934.

As a commodity pool, the Trust and each Series are subject to the regulations of the Commodity Futures Trading Commission (“CFTC”), an independent agency of the U.S. government which regulates most aspects of the commodity futures industry; rules of the National Futures Association, an industry self-regulatory organization; and the requirements of the various commodity exchanges where the Trust through the Managed Accounts executes transactions.

C. The Offering

Up to $281,250,000 Series J, Class I and $93,750,000 Series J, Class II Units (the “Units”) are being offered (totaling $375,000,000) (“Subscription Maximum”). Units are being offered to investors who meet certain established suitability standards. Prior to November 30, 2008, investments required a minimum aggregate initial subscription of $5,000 and $2,000 for certain Benefit Plan Investors (including IRAs), although the minimum purchase for any single series was $500.

11

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 1. ORGANIZATION (CONTINUED)

C. The Offering (Continued)

Effective November 30, 2008, the Board of Directors of the Managing Owner of Series J determined that the Units would no longer be publicly offered and would only be available on a private placement basis to “accredited investors” pursuant to Regulation D under the Securities Act of 1933.

For new subscribers, the minimum initial investment is $25,000 ($10,000 for benefit plan investors (including IRAs)). The minimum additional subscription amount for current investors is $5,000.

Series J completed its initial offering on December 1, 2005 with gross proceeds of $31,024,443. Until the Subscription Maximum for Series J is reached, Series J’s Units will continue to be offered on a monthly basis at the then current net asset value per Unit.

D. Exchanges, Redemptions and Termination

Redemptions from Series J are permitted on a monthly basis with no redemption charges applicable to either Class I or Class II units.

In the event that the net asset value of a Series, after adjustments for distributions, contributions and redemptions, declines by 50% or more since the commencement of trading activities or the first day of a fiscal year, the Series will automatically terminate.

Should the Managing Owner make a determination that Series J’s aggregate net assets in relation to its operating expenses make it unreasonable or imprudent to continue the business of Series J, or, in the exercise of its reasonable discretion, if the aggregate net asset value of Series J as of the close of business on any business day declines below $10 million, the Managing Owner may dissolve Series J.

In addition, in the event that the Net Asset Value of the allocated assets, after adjustments for distributions, contributions and redemptions, for an Affiliated Investment Fund declines by 40% or more since the commencement of trading activities or the first day of a fiscal year, that Affiliated Investment Fund will automatically terminate.

E. Foreign Currency Transactions

Series J’s functional currency is the U.S. dollar; however, it transacts business in currencies other than the U.S. dollar. Assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the rates in effect at the date of the statements of financial condition. Income and expense items denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the rates in effect during the period. Gains and losses resulting from the translation to U.S. dollars are reported in operations currently under the caption realized in the statements of operations.

12

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 1. ORGANIZATION (CONTINUED)

F. Investments in Affiliated Investment Funds

The investments in the Affiliated Investment Funds are reported in Series J’s condensed statements of financial condition. Fair value ordinarily is the value determined for the Affiliated Investment Funds in accordance with the fund’s valuation policies and reported at the time of Series J’s valuation by the management of the funds. Generally, the fair value of Series J’s investments in the Affiliated Investment Funds represents the Net Asset Value which is the amount that Series J could reasonably expect to receive from the funds if Series J’s investments were redeemed at the time of the valuation, based on information reasonably available at the time the valuation is made and that Series J believes to be reliable.

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Basis of Accounting

The condensed statements of financial condition, including the condensed schedules of investments, as of September 30, 2012, the condensed statements of operations for the three months ended September 30, 2012 (“Third Quarter 2012”) and for the nine months ended September 30, 2012 (“Year-To-Date 2012”) and for the three months ended September 30, 2011 (“Third Quarter 2011”) and for the nine months ended September 30, 2011 (“Year-To-Date 2011”), and the condensed statements of changes in unitholders capital for the Year-To-Date 2012 and Year-To-Date 2011, are unaudited.

In the opinion of the Managing Owner, the financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial position of Series J as of September 30, 2012 and the results of its operations for the interim period Third Quarter 2012, Third Quarter 2011, Year-To-Date 2012 and Year-To-Date 2011. The operating results for these interim periods may not be indicative of the results expected for a full year.

The financial statements of Series J are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Such principles require the Managing Owner to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in Series J’s annual report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2011.

13

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A. Basis of Accounting (Continued)

Commodity futures, options and foreign exchange forward contracts are reflected in the accompanying financial statements on a trade date basis. Net unrealized gain or loss on open contracts (the difference between contract trade price and market price) are offset when reflected in the financial statements since the contracts are executed with the same counterparty under a master netting agreement. The market value of futures (exchange-traded) contracts is based upon the closing quotation on the various futures exchanges on which the contract is traded. The values which will be used by Series J for open forward and option positions will be provided by its administrator, who obtains market quotes from independent data vendors and third parties. Any change in net unrealized gain or loss during the current period is reported in the statements of operations. Realized gains and losses on transactions are recognized in the period in which the contracts are closed. Brokerage commissions include other trading fees and are charged to expense when incurred.

The weighted average number of Units outstanding was computed for purposes of disclosing net income (loss) per weighted average Unit. The weighted average number of Units is equal to the number of Units outstanding at year end, adjusted proportionately for Units subscribed and redeemed based on their respective time outstanding during the period.

Investments in securities consist of publicly-traded mutual funds. Publicly-traded mutual funds are valued using the net asset value on the last day of the period. Realized gains and losses from investment securities are determined using the identified cost method. Any change in net unrealized gain or loss from the preceding period is reported in the condensed statements of operations. Dividends are recorded on the ex-dividend date.

Series J has elected not to provide a statement of cash flows since substantially all of Series J’s investments are highly liquid and carried at fair value, Series J has little or no debt and a condensed statements of changes in unitholders’ capital (net asset value) is provided.

Consistent with standard business practices in the normal course of business, Series J has provided general indemnifications to the Managing Owner and others when they act, in good faith, in the best interests of Series J. Series J is unable to develop an estimate of the maximum potential amount of future payments that could potentially result from any hypothetical future claim, but expects the risk of having to make any payments under these general business indemnifications to be remote.

Series J accounts for financial assets and liabilities using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels: quoted market prices in active markets for identical assets and liabilities (Level 1), inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly (Level 2), and unobservable inputs for the asset or liability (Level 3).

14

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A. Basis of Accounting (Continued)

Series J considers its investments in publicly-traded mutual funds, prices for exchange traded commodity futures and options contracts to be based on quoted prices in active markets for identical assets (Level 1). The values of forwards, swaps and certain options contracts for which market quotations are not readily available are priced by independent third party data vendors or pricing services who derive fair values for those assets from observable inputs (Level 2). In determining the level, Series J considers the length of time until the investment is redeemable, including notice and lock-up periods or any other restriction on the disposition of the investment. Series J also considers the nature of the portfolios of the underlying Affiliated Investment Funds and their ability to liquidate their underlying investments. Series J has the ability to redeem its investments at the reported net asset valuation as of the measurement date (see Note 7) and classified its investments in Affiliated Investment Funds as Level 2 using the fair value hierarchy. The Level 2 investments in Affiliated Investment Funds are valued at the net asset value as reported by the underlying investment funds’ capital balance using the expedient method. The carrying value of the underlying investments in Affiliated Investment Funds is at fair value. There are no Level 3 investments on September 30, 2012 or December 31, 2011, nor any portion of the interim periods.

The following table summarizes the assets measured at fair value using the fair value hierarchy:

September 30, 2012	Level 1		Level 2		Level 3		Total
Assets:
Investment in Affiliated Investment Funds, at fair value	$	0	$	21,004,565	$	0	$	21,004,565
Investment in securities, at fair value	$	76,087,999	$	0	$	0	$	76,087,999
December 31, 2011	Level 1		Level 2		Level 3		Total
Assets:
Investment in Affiliated Investment Funds, at fair value	$	0	$	8,207,427	$	0	$	8,207,427
Investment in securities, at fair value	$	62,015,348	$	0	$	0	$	62,015,348

B. Cash and Cash Equivalents

Cash and cash equivalents represents amounts deposited with clearing brokers and a bank, a portion of which is restricted for purposes of meeting margin requirements, which typically ranged from 0% to 35% of the notional amounts of the derivatives traded. A substantial portion of the cash deposited with a bank is deposited in an off-shore sweep account facility daily. Series J receives interest on all cash balances held by the clearing brokers and bank at prevailing rates.

Series J has cash and investments in securities on deposit with financial institutions and in broker trading accounts which may exceed the insured balance limits. In the event of a financial institution’s insolvency, recovery of cash and investments in securities on deposit may be limited to account insurance or other protection afforded such deposits.

15

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

C. Income Taxes

Series J is treated as a partnership for U.S. federal income tax purposes. As such, Series J is not required to provide for, or pay, any U.S. federal or state income taxes. Income tax attributes that arise from its operations are passed directly to the individual Unitholders including the Managing Owner. Series J may be subject to other state and local taxes in jurisdictions in which it operates.

Series J recognizes tax benefits or expenses of uncertain tax positions in the year such determination is made when the positions are “more likely than not” to be sustained assuming examination by tax authorities. The Managing Owner has reviewed Series J’s tax positions for all open years and concluded that no provision for unrecognized tax benefits or expense is required in these financial statements. Series J has elected an accounting policy to classify interest and penalties related to unrecognized tax benefits as interest or other expense. The 2009 through 2011 tax years generally remain subject to examination by U.S. federal and most state tax authorities.

D. Profit and Loss Allocations and Distributions

Income and expenses (excluding the service fee and upfront sales commissions further discussed in Note 5) are allocated pro rata to the Class I Units and Class II Units monthly based on the Units outstanding during the month. Class I Units are charged with the service fee and upfront sales commission applicable to such Units. Distributions (other than redemptions of Units) may be made at the sole discretion of the Managing Owner on a pro rata basis in accordance with the respective capital balances of the Unitholders. The Managing Owner has not and does not presently intend to make any distributions.

E. Offering Costs

In accordance with the Trust’s Agreement and Prospectus, the Managing Owner is responsible for the payment of all offering expenses of Series J incurred after the Initial Offering Period (“ongoing offering costs”), provided that the amount of such ongoing offering costs paid by the Managing Owner are subject to reimbursement by the Trust, without interest, in up to 36 monthly payments during each of the first 36 months following the month in which such expenses were paid by the Managing Owner. Through September 30, 2012, the Managing Owner has paid $2,587,895 in ongoing offering costs, of which $2,530,733 has been allocated to Series J.

Ongoing offering costs incurred through November 30, 2006 in the amount of $599,062 will not be reimbursed to the Managing Owner. For the period December 1, 2006 through September 30, 2012, the Managing Owner incurred and Series J was allocated ongoing offering costs in the amount of $1,951,276 and $1,931,670, respectively. Of the $1,931,670 allocated to Series J, $635,144 will not be reimbursable to the Managing Owner.

Series J will only be liable for payment of ongoing offering costs on a monthly basis. If Series J terminates prior to completion of payment of such amounts to the Managing Owner, the Managing Owner will not be entitled to any additional payments, and Series J will have no further obligation to the Managing Owner.

16

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

E. Offering Costs (Continued)

During the Third Quarter 2012, Third Quarter 2011, Year-To-Date 2012 and Year-To-Date 2011, Series J’s allocable portion of ongoing offering costs did not exceed 0.50% per annum of the net asset value of Series J.

F. Interest Income and Dividend Income

Interest is recorded on an accrual basis. Dividends are recorded on the ex-dividend date.

Note 3. RELATED PARTIES

Series J reimburses the Managing Owner for services it performs for Series J, which include, but are not limited to; management, legal, accounting, registrar, transfer and assignment functions, investor communications, printing, risk management and related services with respect to monitoring the Trading Advisors and the Trust and other administrative services.

The expenses incurred by Series J for services performed by the Managing Owner and its affiliates for Series J were:

	Three months ended September 30,				Nine months ended June 30,
	2012		2011		2012		2011
Management fees to Managing Owner	$	146,834	$	189,882	$	477,864	$	574,657
ClariTy Managed Account fees to affiliate		0		94,604		0		287,328
Managing Owner interest on investment funds payable		280,093		62,760		578,933		382,673
Operating expenses		43,085		68,447		173,194		148,686
	$	470,012	$	415,693	$	1,229,991	$	1,393,344

(1) ClariTy Managed Account fees, which were paid directly to the Managing Owner during 2011, are now paid indirectly through its investments in Affiliated Investment Funds, starting January 1, 2012.

Expenses payable to the Managing Owner and its affiliates (which are included in accrued expenses payable on the condensed statements of financial condition) as of September 30, 2012 and December 31, 2011 were $56,564 and $68,447, respectively.

Note 4. MANAGING OWNER AND AFFILIATES

Effective October 31, 2011, the Managing Owner and/or its affiliates redeemed 100% of their interest in Series J. Prior to October 31, 2011, the Managing Owner and/or its affiliates had purchased and maintained an interest in Series J in an amount less than 1% of the net asset value of Series J. The Managing Owner is no longer required under the terms of the Trust Agreement to maintain a 1% interest.

17

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 4. MANAGING OWNER AND AFFILIATES (CONTINUED)

The Managing Owner is paid a monthly management fee of 1/12 of 0.5% (0.5% annually) of Series J’s net asset value at the beginning of each month (See Note 5).

From October 1, 2010 to December 31, 2011, Series J paid a monthly managed account fee in the amount of 1/12 of 0.25% of Series J’s beginning net asset value to ClariTy for risk management and related services with respect to monitoring the Trading Advisors. Effective January 1, 2012, Series J pays this fee indirectly through its investments in the Affiliated Investment Funds. For the Third Quarter 2012, Third Quarter 2011, Year-To-Date 2012 and Year-To-Date 2011, the managed account fees earned, either directly or indirectly as discussed in Note 1, totaled $74,542, $94,604, $240,639 and $287,328, respectively.

The Managing Owner has determined that it is in the best interest of Series J to invest a portion of its non-margin assets, either directly or indirectly through certain investment funds, in (i) U.S. government securities (which include any security issued or guaranteed as to principal or interest by the United States), (ii) any certificate of deposit for any of the foregoing, including U.S. treasury bonds, U.S. treasury bills and issues of agencies of the United States government, (iii) corporate bonds or notes, or (iv) other instruments permitted by applicable rule and regulations. Effective January 1, 2011, the Managing Owner is paid monthly 1/12 of 50% of the first 1% of the positive returns earned on Series J’s investment of non-margin assets. The calculation is based on the average annualized net asset value, and any losses related to returns on the non-margin assets must first be recovered through subsequent positive returns prior to the Managing Owner receiving a payment.

After the calculation of the amount payable to the Managing Owner, Series J will be credited with all additional positive returns (or 100% of any losses) on Series J’s investment of non-margin assets. If at the end of any calendar year a loss has been incurred on the returns for the non-margin assets, then the loss carry forward will reset to zero for the next calendar year with regards to the calculation of the Managing Owner’s portion of the non-margin asset’s income. For the Third Quarter 2012, Third Quarter 2011, Year-To-Date 2012 and Year-To Date 2011, the Managing Owner’s portion of interest earned on the non-margin assets amounted to $280,094, $62,760, $578,933 and $382,673, respectively.

Note 5. SERVICE FEES AND SALES COMMISSIONS

Series J pays a service fee with respect to Class I Units, monthly in arrears, equal to 1/12 of 2% (2% per annum) of the Net Asset Value per Unit of the outstanding Class I Units as of the beginning of the month. Series J also pays an initial commission equal to 2% of the initial Net Asset Value per Unit of each Class I Unit sold by the Correspondent Selling Agents (“CSA”), payable on the date such Class I Units are purchased.

Commencing with the 13^th month after the purchase of a Class I Unit, the CSAs received an ongoing monthly commission equal to 1/12^th of 2% (2% per annum) of the net asset value per Class I Unit as of the beginning of each month of the Class I Units sold by them.

18

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 5. SERVICE FEES AND SALES COMMISSIONS (CONTINUED)

The Service Fee – Class I Units (as described below) disclosed on the condensed statements of operations represents (i) the monthly 1/12 of 2% of the net asset value per Class I Unit as of the beginning of each month of the Class I Units, (ii) the initial upfront sales commission of 2% (iii) a deduction for Series J’s recapture of the 1/12 of 2% service fee on all Units owned for less than 12 months that have received the 2% upfront sales commission and a recapture of the service fee on Units held with no CSA.

For the Third Quarter 2012, Third Quarter 2011, Year-To-Date 2012 and Year-To Date 2011, the Service Fee – Class I Units is composed of the following:

	Third Quarter 2012			Year-to-Date 2012
Monthly 1/12 of 2% service fee calculated on all Class I Units	$	527,702		$	1,721,577
Initial up-front 2% sales commissions		0			23,704
Series J’s recapture on 1/12 of 2% service fee on select units and recapture of the service fee on units held with no CSA		(40,278	)		(212,927	)
Total	$	487,424		$	1,532,354
	Third Quarter 2011			Year-to-Date 2011
Monthly 1/12 of 2% service fee calculated on all Class I Units	$	663,457		$	2,016,634
Initial up-front 2% sales commissions		112,088			369,604
Series J’s recapture on 1/12 of 2% service fee on select units and recapture of the service fee on units held with no CSA		(129,137	)		(381,604	)
Total	$	646,408		$	2,004,634

Series J will also pay the Selling Agent a monthly sales commission equal to 1/12th of 1% (1% annually) of the net asset value of the outstanding units as of the beginning of each month.

Effective October 1, 2010, Series J agreed to pay a monthly fee to Wells Fargo for providing continuing due diligence, training, operations, system support, and marketing. For Class I and II Units purchased by clients of Wells Fargo on or prior to October 1, 2010, the fee is 1/12^th of 0.10% (0.10% per annum) of the beginning of the month net asset value. For Class I and II Units purchased subsequent to October 1, 2010 the fee is 1/12^th of 0.30% (0.30% per annum) of the beginning of the month net asset value. These fees will be deducted from the management fee paid to the Managing Owner.

19

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 6. ADMINISTRATOR

Spectrum Global Fund Administration, L.L.C. (“Spectrum” or the “Administrator”), a Delaware limited liability, was the administrator of Series J and provided certain administration and accounting services pursuant to the terms of a Services Agreement with Series J dated as of May 23, 2007. On December 10, 2010, AlphaMetrix360, LLC purchased the assets of Spectrum.

Effective June 1, 2011, Series J replaced AlphaMetrix 360, LLC with GlobeOp Financial Services LLC (“GlobeOp” or the “Administrator”), a Delaware limited liability company. AlphaMetrix 360, LLC’s Service Agreement with Series J was terminated effective close of business on May 31, 2011.

The Administrator performs or supervises the performance of services necessary for the operation and administration of Series J (other than making investment decisions), including administrative and accounting services. The Administrator also calculates Series J’s Net Asset Value. In addition, the Administrator maintains certain books and records of Series J, including certain books and records required by CFTC Rule 4.23(a). “Administrator” refers to Spectrum, AlphaMetrix 360, LLC, or GlobeOp depending on the applicable period discussed.

For the Third Quarter 2012, Third Quarter 2011, Year-To-Date 2012 and Year-To Date 2011, Series J paid administration fees, either directly or indirectly within its investments in Affiliated Investment Funds as discussed in Note 1, of $38,721, $91,808, $127,531 and $260,926, respectively.

Note 7. INVESTMENT IN AFFILIATED INVESTMENT FUNDS

Series J’s investments in the Affiliated Investment Funds represents approximately 18.50% of the net asset value of Series J at September 30, 2012. The investments in the Affiliated Investment Funds are reported in Series J’s condensed statements of financial condition at their net asset value (fair value). Series J records its proportionate share of income or loss in the condensed statements of operations. The investments are subject to the terms of the organizational and offering documents of the Affiliated Investment Funds.

The following table summarizes the change in net asset value (fair value) of Series J’s investments in Affiliated Investment Funds for the Year-To-Date 2012 and Year-To-Date 2011.

	Net asset value December 31, 2011		Purchases		(Loss)			Redemptions			Net asset value September 30, 2012
Investment in Affiliated Investment Funds	$	8,207,427	$	80,671,134	$	(3,733,923	)	$	(64,140,073	)	$	21,004,565

20

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 7. INVESTMENT IN AFFILIATED INVESTMENT FUNDS (CONTINUED)

	Net asset value December 31, 2010		Purchases		(Loss)			Redemptions			Net asset value September 30, 2011
Investment in Affiliated Investment Funds	$	0	$	30,415,675	$	(1,285,300	)	$	(16,458,406	)	$	12,671,969

The Affiliated Investment Funds are redeemable semi-monthly to monthly and require a redemption notice of 1-5 days. Series J may make additional contributions or redemptions from the Affiliated Investment Funds on a standard allocation date. The Affiliated Investment Funds engage in trading of commodity futures, forwards and option contracts. Series J records its proportionate share of income or loss in the condensed statements of operations. Series J’s investment in the Affiliated Investment Funds are notionally funded, and the following table sets out the total capital commitment split between net asset value (amount funded) and the remaining capital commitment. The remaining capital commitment is the amount that can be requested from Series J if requested by the Affiliated Investment Funds to meet margin calls in accordance with the governing documents. However, Series J’s capital commitment to the Affiliated Investment Funds is disclosed below.

	Total Capital Commitment September 30, 2012		Net Asset Value September 30, 2012		Remaining Capital Commitment September 30, 2012
CTA Choice BEAM	$	16,862,488	$	4,665,081	$	12,197,407
CTA Choice BLKW		15,901,890		2,176,800		13,725,090
CTA Choice CRABL-PV		15,078,233		3,390,272		11,687,961
CTA Choice EAGL		7,981,377		2,113,291		5,868,086
CTA Choice EGLG		9,228,330		1,363,165		7,865,165
CTA Choice KRM		17,330,004		1,952,837		15,377,167
CTA Choice ORT		17,212,585		4,357,382		12,855,203
CTA Choice SAXN		17,258,979		985,737		16,273,242
Total	$	116,853,886	$	21,004,565	$	95,849,321

21

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 7. INVESTMENT IN AFFILIATED INVESTMENT FUNDS (CONTINUED)

Series J’s investments in the Affiliated Investment Funds are subject to the market and credit risks of securities held or sold short indirectly within the respective Affiliated Investment Fund (See Note 10). ClariTy has established procedures to monitor market risk and minimize credit risk, although there can be no assurance that it will, in fact, succeed in doing so. The interestholders within CTA Choice bear the risk of loss only to the extent of the market value of their respective investments and, in certain specific circumstances, distributions and redemptions received.

Note 8. TRUSTEE

The trustee of the Trust is Wilmington Trust Company, a Delaware banking corporation. The trustee has delegated to the Managing Owner the power and authority to manage the business and affairs of the Trust and has only nominal duties and liabilities with respect to the Trust.

Note 9. COSTS, FEES AND EXPENSES

A. Operating Expenses

Operating expenses of Series J are paid for by Series J.

B. Management and Incentive Fees

Through December 31, 2011, Series J paid each Trading Advisor a monthly management fee and a quarterly incentive fee (calculated monthly) pursuant to the applicable Managed Account advisory agreement.

	Prior to October 1, 2010
Trading Advisor*	Management Fee% (1)		Incentive Fee% (2)
Ortus		2.00		20.00
Eagle		2.00		25.00
Graham		2.50		25.00
GLC		2.00		25.00
Krom		2.00		25.00
Paskewitz		2.00		20.00
Crabel		1.00		25.00
Tudor		2.00		25.00

⁽¹⁾  The Management Fee is paid monthly at a rate equal to 1/12 of the indicated rate above of the net asset value of Series J accordance with the applicable advisory agreement.

⁽²⁾  The Incentive Fee is paid quarterly on the percentage indicated of new net high trading profits of Series J in accordance with the applicable advisory agreement.

22

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 9. COSTS, FEES AND EXPENSES (CONTINUED)

B. Management and Incentive Fees (Continued)

Indirectly through its investments in the Affiliated Investment Funds, Series J now pays the following Trading Advisors management fees and incentive fees for achieving “New High Net Trading Profits,” in Series J’s capital accounts within the Affiliated Investment Funds as defined in their respective advisory agreements.

Affiliated Investment Fund	Management Fee%		Incentive Fee%
BEAM		1.00		20.00
BLKW		1.00		25.00
CRABL-PV		1.00		25.00
EAGL		1.50		25.00
EGLG		2.00		25.00
GRM *		2.00		20.00
KRM		1.50		25.00
ORT		1.00		25.00
SAXN		0.00		25.00
TDRM*		2.00		20.00

* Series J fully redeemed from GRM and TDRM as of December 31, 2011.

For the Third Quarter 2012, Third Quarter 2011, Year-To-Date 2012 and Year-To Date 2011, Series J paid management fees, either directly or indirectly within its investments in Affiliated Investment Funds as discussed in Note 1, of $311,755, $549,567, $1,020,929 and $1,636,137, respectively.

For the Third Quarter 2012, Third Quarter 2011, Year-To-Date 2012 and Year-To Date 2011, Series J paid incentive fees, either directly or indirectly within its investments in Affiliated Investment Funds as discussed in Note 1, of $360,993, $68,928, $597,064 and $916,827, respectively.

Note 10. DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS

The fair value of Series J’s derivatives by instrument type, as well as the location of those instruments on the statements of financial condition as of September 30, 2012 and December 31, 2011, are included in the condensed schedules of investments, all of which are deemed derivatives not designated as hedging instruments. No derivative instruments were directly held by Series J as of September 30, 2012. Derivative trading activity is now conducted within the Affiliated Investment Funds.

The following presents the fair value of derivative contracts at September 30, 2012 and December 31, 2011. The fair value of derivative contracts is presented as an asset if in a gain position and a liability if in a loss position. Fair value is presented on a gross basis in the table below even though the derivative contracts qualify for net presentation in the condensed statements of financial condition.

23

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 10. DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS (CONTINUED)

	September 30, 2012						December 31, 2011
Description	Assets		Liabilities		Net		Assets		Liabilities			Net
Forward Currency Contracts	$	0	$	0	$	0	$	648,171	$	(648,171	)	$	0
Total gross fair value of derivatives	$	0	$	0	$	0	$	648,171	$	(648,171	)	$	0

The trading revenue of Series J’s derivatives by instrument type, as well as the location of those gains and losses on the condensed statements of operations, for the Third Quarter 2012, Third Quarter 2011, Year-To-Date 2012 and Year-To-Date 2011 is as follows:

	Trading Revenue for the					Trading Revenue for the
	Third Quarter 2012		Third Quarter 2011			Year-To-Date 2012		Year-To-Date 2011
Type of instrument
Commodities contracts	$	0	$	(783,407	)	$	0	$	(643,715	)
Currencies contracts		0		9,642			0		454,736
Energy contracts		0		(459,686	)		0		(175,217	)
Interest rate contracts		0		1,740,029			0		1,362,798
Metals contracts		0		1,290,445			0		1,096,870
Stock indices contracts		0		(1,183,486	)		0		(1,798,314	)
Purchases options on futures contracts		0		(428,520	)		0		(237,784	)
Written options on futures contracts		0		259.780			0		22,924
Forward currency contracts		0		31.632			0		609,250
Total	$	0	$	476,429		$	0	$	691,548
Line item in the condensed statements of operations
Realized	$	0	$	22,564		$	0	$	5,699,195
Change in unrealized		0		453,865			0		(5,007,647	)
Total	$	0	$	476,429		$	0	$	691,548

24

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 10. DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS (CONTINUED)

For the Third Quarter 2011 and Year-To-Date 2011, the total number of closed futures contracts was 20,710 and 80,403, respectively, the total number of closed options on futures contracts was 1,283 and 4,924, respectively, and the average monthly notional value of forward currency contracts closed was $1,525,711,138 and $1,563,820,503, respectively.

The average monthly notional value of contracts closed represents the average monthly U.S. dollar notional value of futures and options on futures contracts closed and settled in cash during the Third Quarter 2011 and Year-To-Date 2011. No derivative instruments were held directly by Series J during the Third Quarter 2012 and Year-To-Date 2012.

Series J’s investments in Affiliated Investment Funds are subject to the market and credit risks of the futures contracts, options on futures contracts, forward currency contracts and other financial instruments held or sold short by them. Series J bears the risk of loss only to the extent of the market value of its investment and, in certain specific circumstances, distributions and redemptions received.

Series J is exposed to various types of risks associated with the derivative instruments and related markets in which it directly invests through its Affiliated Investment Funds. These risks include, but are not limited to, risk of loss from fluctuations in the value of derivative instruments held (market risk) and the inability of counterparties to perform under the terms of Series J’s investment activities (credit risk).

The Managing Owner has established procedures to actively monitor market risk and minimize credit risk, although there can be no assurance that it will, in fact, succeed in doing so. The unitholders bear the risk of loss only to the extent of the market value of their respective investments and, in certain specific circumstances, distributions and redemptions received.

Market Risk

Trading in futures and forward contracts (including foreign exchange) involves entering into contractual commitments to purchase or sell a particular commodity at a specified date and price. The gross or face amount of the contracts, which is typically many times that of Series J’s net assets being traded, significantly exceeds Series J’s future cash requirements since Series J intends to close out its open positions prior to settlement. As a result, Series J is generally subject only to the risk of loss arising from the change in the value of the contracts. The market risk associated with Series J’s commitments to purchase commodities is limited to the gross or face amount of the contracts held. However, when Series J enters into a contractual commitment to sell commodities, it must make delivery of the underlying commodity at the contract price and then repurchase the contracts at prevailing market prices or settle in cash. Since the repurchase price to which a commodity can rise is unlimited, entering into commitments to sell commodities exposes Series J to unlimited risk. In addition, as both a buyer and seller of options, Series J pays or receives a premium at the outset and then bears the risk of unfavorable changes in the price of the contract underlying the option. Written options expose Series J to potentially unlimited liability, and purchased options expose Series J to a risk of loss limited to the premiums paid.

25

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 10. DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS (CONTINUED)

Market Risk (Continued)

Market risk is influenced by a wide variety of factors, including government programs and policies, political and economic events, the level and volatility of interest rates, foreign currency exchange rates, the diversification effect among the derivative instruments Series J holds and the liquidity and inherent volatility of the markets in which Series J trades.

Credit Risk

When entering into futures or forward contracts, Series J is exposed to credit risk that the counterparty to the contract will not meet its obligations. The counterparty for futures contracts traded on U.S. and most foreign futures exchanges is the clearinghouse associated with the particular exchange. In general, clearinghouses are backed by their corporate members who are required to share any financial burden resulting from the non-performance by one of their members and, as such, should significantly reduce this credit risk. In cases where the clearinghouse is not backed by the clearing members (i.e., some foreign exchanges), it is normally backed by a consortium of banks or other financial institutions.

The Managing Owner attempts to minimize both credit and market risks by requiring Series J and its Trading Advisors to abide by various trading limitations and policies. The Managing Owner monitors compliance with these trading limitations and policies, which include, but are not limited to, executing and clearing all trades with creditworthy counterparties; limiting the amount of margin or premium required for any one commodity or all commodities combined; and generally limiting transactions to contracts which are traded in sufficient volume to permit the taking and liquidating of positions.

Series J’s futures commission merchants, in accepting orders for the purchase or sale of domestic futures contracts, are required by CFTC regulations to separately account for and segregate as belonging to Series J all assets of Series J relating to domestic futures trading and are not allowed to commingle such assets with its other assets.

At September 30, 2012 and December 31, 2011, such segregated assets totaled $0 and $0, respectively. Part 30.7 of the CFTC regulations also requires Series J’s futures commission merchants to secure assets of Series J related to foreign futures trading, which totaled $0 and $0 at September 30, 2012 and December 31, 2011, respectively. There are no segregation requirements for assets related to forward trading.

As of September 30, 2012, Series J had no open futures or forward currency contracts as Series J has transitioned from investments in direct Managed Accounts to accessing the Trading Advisors through CTA Choice’s managed account platform.

26

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 11. FINANCIAL HIGHLIGHTS

The following information presents per Unit operating performance data and other supplemental financial data for the Third Quarter 2012, Third Quarter 2011, Year-To-Date 2012 and Year-To-Date 2011. This information has been derived from information presented in the financial statements.

	Class I						Class II
	Third Quarter			Year- To-Date			Third Quarter			Year- To-Date
	2012						2012
Per Unit Performance
(for a unit outstanding throughout the entire period)
Net asset value per Unit at beginning of period	$	110.60		$	117.27		$	121.41		$	127.60
Gain (loss) from operations:
Net realized and change in unrealized gain (loss) (1)		2.17			(2.51	)		2.36			(2.77	)
Interest income (1)		0.00			0.01			0.00			0.01
Dividend income (1)		0.24			0.76			0.27			0.84
Expenses (2)		(1.43	)		(3.95	)		(1.00	)		(2.64	)
Total gain (loss) from operations		0.98			(5.69	)		1.63			(4.56	)
Net assets value per Unit at end of period	$	111.58		$	111.58		$	123.04		$	123.04
Total Return		0.89	%		(4.85	)%		1.34	%		(3.57	)%
Supplemental data
Ratios to average net asset values:
Total loss from operations (3)		(4.22	)%		(3.72	)%		(2.39	)%		(1.93	)%
Interest income (2)		0.00	%		0.01	%		0.00	%		0.01	%
Dividend income (2)		0.86	%		0.88	%		0.86	%		0.89	%
Total expenses (2), (3)		5.08	%		4.61	%		3.25	%		2.83	%

Total returns are calculated based on the change in value of a Unit during the period. An individual Unitholder’s total return and ratio may vary from the above total returns and ratios based on the timing of subscriptions and redemptions.

⁽¹⁾  Dividend and Interest income per Unit, expenses per Unit are calculated by dividend and interest income and expenses applicable to each class by the weighted average number of Units of each class outstanding during the period. Total trading and investing loss is a balancing amount necessary to reconcile the change in net asset value per Unit of each class with the other per Unit information.

⁽²⁾  Annualized.

⁽³⁾  Trading Advisor management, incentive and various other operating expenses charged indirectly within Series J’s investments in Affiliated Investment Funds are included in Total Return.

27

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 11. FINANCIAL HIGHLIGHTS (CONTINUED)

	Class I						Class II
	Third			Year-To-			Third			Year-To-
	Quarter			Date			Quarter			Date
	2011(5)						2011
Per Unit Performance
(for a Unit outstanding throughout the entire period)
Net asset value per Unit at beginning of period	$	122.28		$	127.97		$	131.81		$	136.55
Gain (loss) from operations:
Net realized and change in unrealized gain (1)		1.95			0.02			2.10			0.04
Interest income (1)		0.00			0.01			0.00			0.01
Dividend income (1)		0.19			1.18			0.20			1.26
Expenses (1)		(1.83	)		(6.59	)		(1.33	)		(5.08	)
Total gain (loss) from operations		0.31			(5.38	)		0.97			(3.77	)
Net asset value per Unit at end of period	$	122.59		$	122.59		$	132.78		$	132.78
Total Return (4)
Total return before incentive fees		0.30	%		(3.61	)%		0.78	%		(2.16	)%
Incentive fee		(0.05	)%		(0.59	)%		(0.04	)%		(0.60	)%
Total return after incentive fees		0.25	%		(4.20	)%		0.74	%		(2.76	)%
Supplemental Data
Ratios to average net asset value:
Net investment loss before incentive fees (2), (3)		(5.18	)%		(4.93	)%		(3.24	)%		(2.96	)%
Incentive fee (4)		(0.05	)%		(0.61	)%		(0.04	)%		(0.61	)%
Net investment loss after incentive fees		(5.23	)%		(5.54	)%		(3.28	)%		(3.57	)%
Interest income (3)		0.01	%		0.01	%		0.01	%		0.01	%
Dividend income (3)		0.61	%		1.25	%		0.60	%		1.25	%
Incentive fees (4)		0.05	%		0.61	%		0.04	%		0.61	%
Other expenses (3)		5.80	%		6.19	%		3.85	%		4.22	%
Total expenses		5.85	%		6.80	%		3.89	%		4.83	%

Total returns are calculated based on the change in value of a Unit during the period. An individual Unitholders’ total returns and ratios may vary from the above total returns and ratios based on the timing of additions and redemptions.

⁽¹⁾  Dividend and Interest income per Unit, expenses per Unit are calculated by dividend and interest income and expenses applicable to each class by the weighted average number of Units of each class outstanding during the period. Total trading and investing loss is a balancing amount necessary to reconcile the change in net asset value per Unit of each class with the other per Unit information.

⁽²⁾  Represents dividend and interest income less total expenses (exclusive of incentive fees). This excludes the Trust’s proportionate share of income and expenses from investments in affiliated funds.

⁽³⁾  Annualized.

⁽⁴⁾  Not annualized (This represents incentive fees charged by the Trading Advisors for the 2011 periods presented).

⁽⁵⁾  Effective January 1, 2011, includes loss from Affiliated Investment Funds.

28

WORLD MONITOR TRUST III – SERIES J

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 12. SUBSEQUENT EVENTS

The following table sets out the total capital commitment split between net asset value (amount funded) and the remaining capital commitments as of October 31, 2012:

	Total Capital Commitment October 30, 2012		Net Asset Value October 30, 2012		Remaining Capital Commitment October 30, 2012
Affiliated Investment Funds	$	111,809,404	$	19,286,324	$	92,523,080

From October 1, 2012 through November 13, 2012, there were estimated redemptions of $4,369,143 effective for October 31, 2012.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This report on Form 10-Q (the “Report”) for the quarter ending September 30, 2012 (“Third Quarter 2012”) includes forward-looking statements that reflect the current expectations of Kenmar Preferred Investments, L.P., the managing owner of World Monitor Trust III – Series J (“Registrant”), about the future results, performance, prospects and opportunities of Registrant. The managing owner has tried to identify these forward-looking statements by using words such as “may,” “will,” “expect,” “anticipate,” “believe,” “intend,” “should,” “estimate” or the negative of those terms or similar expressions. These forward-looking statements are based on information currently available to the managing owner and are subject to a number of risks, uncertainties and other factors, both known, such as those described in this Report, and unknown, that could cause Registrant’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.

You should not place undue reliance on any forward-looking statements. Except as expressly required by the Federal securities laws, the managing owner undertakes no obligation to publicly update or revise any forward-looking statements or the risks, uncertainties or other factors described in this Report, as a result of new information, future events or changed circumstances or for any other reason after the date of this Report.

Introduction

General

World Monitor Trust III (the “Trust”) was formed as a Delaware Statutory Trust on September 28, 2004, with separate series (each, a “Series”) of units of beneficial interest (“Units” or “Interests”). Its term will expire on December 31, 2054 (unless terminated earlier in certain circumstances). The trustee of the Trust is Wilmington Trust Company. The Trust’s fiscal year for book and tax purposes ends on December 31.

The Trust’s Units were initially offered in four (4) separate and distinct Series: Series G, Series H, Series I, and Series J (“Registrant”). The Trust may issue additional Series of Units in the future. Each Series will continue to exist until terminated pursuant to the provisions of Article XIII of the Fifth Amended and Restated Declaration of Trust and Trust Agreement (the “Trust Agreement”). Each Series offers Units in two classes (each, a “Class”) – Class I and Class II. Class I Units pay a service fee. Class II Units may only be offered to investors who are represented by approved correspondent selling agents who are directly compensated by the investor for services rendered in connection with an investment in the Trust (such arrangements commonly referred to as “wrap-accounts”).

Series G, H, I and J commenced trading operations on December 1, 2005.

Units are offered as of the beginning of each month, and Units will continue to be offered in each Series until the maximum amount of each Series’ Units which are registered are sold. The Managing Owner may suspend or terminate the offering of Units of any Series at any time or extend the offering by registering additional Units. The managing owner terminated the offering of Units of Series H and Series I effective March 31, 2007 and dissolved Series H and Series I effective close of business on April 30, 2007. The Managing Owner terminated the offering of Units of Series G on December 31, 2007 and dissolved Series G effective close of business on December 31, 2007.

Managing Owner and its Affiliates

Effective July 1, 2012, Kenmar Preferred Investments Corp. changed its name and form of entity to Kenmar Preferred Investments, L.P. (“Kenmar Preferred” or the “Managing Owner”). Kenmar Preferred or Managing Owner refers to either Kenmar Preferred Investments Corp. or Kenmar Preferred Investments, L.P., depending on the applicable period discussed. Kenmar Preferred has been the Managing Owner of Registrant since October 1, 2004. The Managing Owner may, but is not required under the terms of the Trust Agreement to maintain an interest in Registrant. Registrant reimburses the Managing Owner for services it performs for Registrant, which include, but are not limited to: management, legal, accounting, registrar, transfer and assignment functions, investor communications, printing, risk management and related services with respect to monitoring the Trading Advisors and the Trust and other administrative services.

Effective July 1, 2012, ClariTy Managed Account & Analytics Platform LLC changed its name and form of entity to ClariTy Managed Account & Analytics Platform, L.P. (“ClariTy”). ClariTy refers to either ClariTy Managed Account & Analytics Platform LLC or ClariTy Managed Account & Analytics Platform, L.P., depending on the applicable period discussed. ClariTy, an affiliate of Kenmar Preferred, serves as the managing member for CTA Choice. CTA Choice consists of multiple segregated series, each established pursuant to a separate Certificate of Designation prepared by CTA Choice’s managing member. Each series maintains separate and distinct records. The assets associated with each series, and the liabilities and obligations incurred with respect to a particular series are enforceable only against the assets of that series. ClariTy charges the Registrant, within each of the Affiliated Investment Funds; a monthly managed account fee of 25 basis points of Registrants beginning of month allocated assets for providing certain administrative services.

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Effective July 1, 2012, Kenmar Global Investment Management LLC changed its name and form of entity to Kenmar Global Investment Management, L.P. (“Asset Allocator”). Asset Allocator refers to either Kenmar Global Investment Management LLC or Kenmar Global Investment Management, L.P., depending on the applicable period discussed. Asset Allocator, an affiliate of the Managing Owner, is the Asset Allocator of CTA Choice. Pursuant to the Asset Allocation Agreements between the Managing Owner, the Asset Allocator, and each interestholder, the Asset Allocator determines the trading level of each interestholder’s assets and reallocates among the separate series of CTA Choice as agreed upon with the trading advisors. While the Asset Allocator receives no fees for such services from the Registrant, the Asset Allocator is paid management and incentive fees directly from the interestholders pursuant to each interestholder’s Asset Allocation Agreement.

The Offering

Interests are being offered to investors who meet certain established suitability standards. Prior to November 30, 2008, investments required a minimum aggregate initial subscription of $5,000 and $2,000 for certain Benefit Plan Investors (including IRAs), although the minimum purchase for any single series was $500. Effective December 1, 2008, the minimum initial investment for new subscribers is $25,000 ($10,000 for benefit plan investors (including IRAs)) and the minimum additional subscription amount for current investors, who are “accredited investors,” is $5,000.

Effective November 30, 2008, the Board of Directors of the Managing Owner of the Registrant determined that, Registrant’s Units of beneficial interest are no longer to be publicly offered and are only to be available on a private placement basis to “accredited investors” pursuant to Regulation D under the Securities Act of 1933. This change in the manner in which the Registrant’s Units are offered has no material impact to current investors as there is no change in the fees and expenses and redemption terms of the Units or any change in the management and investment strategy and reporting provided to investors of the Registrant. The only change is in the method by which the Registrant’s Units will be available, and the increased suitability standard of persons subscribing for Units. New subscriptions must be made by persons that are “accredited investors”. Current investors that are not “accredited investors” are not required to redeem their current Units, but are not able to purchase additional Units.

Initially, the Units for each Series were offered for a period ending November 30, 2005 (“Initial Offering Period”) at $100 per Interest. The subscription minimum of $30,000,000 for Registrant was reached during the Initial Offering Period permitting all of Series G, H, I and J to commence trading operations. Registrant completed its initial offering on December 1, 2005 with gross proceeds of $31,024,443, which was fully allocated to the trading vehicles. Series H and I Units were fully redeemed as of April 30, 2007 and Series G’s Units as of December 31, 2007. Until the Subscription Maximum for Registrant is reached, Registrant’s Units will continue to be offered on a monthly basis at the then current Net Asset Value per Unit.

The Trading Advisors and the Trading Vehicles

Registrant allocated its net assets amongst the following Trading Advisor’s managed account (each a “Managed Account” and collectively, the “Managed Accounts”), with such allocations being re-balanced quarterly:

Managed Account	Trading Program	Start Date		Termination Date
Eagle Trading Systems Inc. (“Eagle”)	Momentum Program		01/01/08		04/30/11
Ortus Capital Management Limited (“Ortus”)	Major Currency Program		01/01/08		12/31/11
Graham Capital Management, L.P. (“Graham”)	K4D-15V Program		01/01/08		12/31/10
GLC Ltd. (“GLC”)	Behavioral Trend and Directional Programs		07/01/09		3/31/10
Krom River Investment Management (Cayman) Limited (“Krom”)	Commodity Diversified Program		07/01/09		09/30/11
Crabel Capital Management, LLC (“Crabel”)	Two Plus Program		07/01/09		08/31/11
Tudor Investment Corporation (“Tudor”)	Tudor Quantitative Commodities Strategy		04/01/10		10/31/11
Paskewitz Asset Management, LLC (“Paskewitz”)	Contrarian Stock Index Program		04/01/10		12/31/11

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Eagle, together with Ortus, Graham, GLC, Krom, Crabel, Tudor and Paskewitz, are each referred to herein as a “Trading Advisor” and collectively referred to herein as the “Trading Advisors.”

Effective January 1, 2011, Registrant began transitioning its investments in direct Managed Accounts to accessing the Trading Advisors indirectly through the following segregated series of CTA Choice Fund LLC (“CTA Choice”), a Delaware limited liability company organized in series:

Affiliated Investment Fund	Trading Advisor	Trading Program	Start Date	Termination Date
CTA Choice GRM (“GRM”)*	Graham	K4D-15V Program	01/1/11	12/31/11
CTA Choice EAGL (“EAGL”)*	Eagle	Eagle Momentum Program	05/1/11
CTA Choice CRABL-PV (“CRABL-PV”)*	Crabel	Two Plus Program	09/1/11
CTA Choice KRM (“KRM”)*	Krom	Commodity Diversified Program	10/1/11
CTA Choice TDRM (“TDRM”)*	Tudor	Tudor Quantitative Commodities Strategy	11/1/11	12/31/11
CTA Choice EGLG (“EGLG”)**	Eagle	Eagle Global Program	01/1/12
CTA Choice ORT (“ORT”)*	Ortus	Major Currency Program	01/1/12
CTA Choice SAXN (“SAXN”)	Saxon Investment Corporation	Saxon Aggressive Diversified Program	01/1/12
CTA Choice BLKW (“BLKW”)	Blackwater Capital Management, LLC	Blackwater Global Program	01/1/12
CTA Choice BEAM (“BEAM”)	BEAM Bayesian Efficient Asset Management, LLC	BEAM Multi-Strategy Program	01/1/12

* Any loss carry forward from Registrant’s Managed Account was transferred over to Registrant’s member interest in the corresponding Affiliated Investment Fund.

** Effective January 1, 2012, the allocation to EAGL was split with a 50% allocation to EAGL and a 50% allocation EGLG.

GRM, together with EAGL, CRABL-PV, KRM, TDRM, EGLG, ORT, SAXN, BLKW and BEAM are each referred to herein as an “Affiliated Investment Fund” and collectively referred to herein as the “Affiliated Investment Funds.”

The Managing Owner may terminate any current Managed Account agreement with a Trading Advisor or select new Trading Advisors including Affiliated Investment Funds, from time-to-time, in its sole discretion, in order to achieve the goals of the Registrant.

Crabel’s Two Plus Program employs multiple, price-driven, systematic strategies that participate in market trends. The average holding period is 5 days with a range of 2 to 55 days. Risk is controlled by dynamic sizing of new trades relative to market volatility, the use of stops and time exits along with a balance of volatility derived from 4 sectors and 3 geographic regions.

Eagle’s Momentum Program is a computerized, technical trading system developed to capture short and intermediate term trading opportunities in markets that exhibit strong price momentum. The adoption of the trading philosophy to a computerized trading system was done by applying rule-based techniques to confirm the trading concept over an extensive body of historical market data and by constantly monitoring and re-evaluating the rules in actual trading. The program currently covers 30 commodities, currencies, stock indices and global fixed income markets.

Graham’s K4D-15V Program utilizes multiple computerized trading models designed to capture profit opportunities during sustained price trends in approximately 65 global markets. This program features broad diversification in both financial and non-financial markets. The trading strategies are primarily long-term in nature and are intended to generate significant returns over time with an acceptable degree of risk and volatility.

32

Krom’s Diversified Commodity Program is a discretionary global macro strategy that attempts to identify commodity price moves that are predicated on a shift in the supply/demand fundamentals; the strategy eschews granular statistical modeling in favor of more qualitative interpretations of the current market conditions. When a potential opportunity is identified, chart-based analyses are used to enhance entry and exits. Trade ideas may be structured as directional, spread or volatility and position duration can last from weeks to months.

Ortus’s Currency Program is a computerized, global macro strategy that seeks to capitalize on fundamentally driven price moves in the G7 currencies that are a result of a shift in the exchange rate cycle. It is the advisor’s belief that these shifts are driven by the dynamic interactions between asset prices (e.g. stocks and bonds) and underlying economic fundamentals (e.g. monetary policy, interest rates). As such, position duration is long-term and changes to the portfolio are gradual.

Paskewitz’s Contrarian Stock Index Program systematically trades the S&P 500 futures in an effort to profit from investor overreaction to both positive and negative news. The manager utilizes three pattern-based models that attempt to identify points where prices are overextended. Each model is given the same amount of risk and the signals are combined to create an overall long or short signal. Over nearly five years of trading, the program has been uncorrelated to both the S&P 500 and trend followers. The program tends to perform well in congested, highly volatile markets.

Tudor’s Quantitative Commodities strategy employs a combination of proprietary computerized mathematical strategies to invest in commodities on a worldwide basis. The proprietary models, when applied to market data, produce computer-generated trading signals on a largely worldwide basis. These models base their investment decisions on a variety of algorithms that analyze, among other factors, historical prices and economic data in order to identify patterns or trends to predict future price direction or identify relative value opportunities.

BEAM Bayesian Efficient Asset Management’s BEAM Multi-Strategy Program is a systematic, global macro strategy that focuses primarily in G10 financial markets and energies. The quantitative approach, which is based on Bayesian statistics and factor analysis, seeks to derive an expected return forecast for each instrument using systematically based, fundamental analyses that are largely derived from price and various other market factors. Thereafter, an optimizer is used to build a portfolio with the best reward: risk characteristics.

Blackwater Capital Management’s Blackwater Global Program is a fully computerized strategy that seeks to profit from longer-term trends across a broad basket of futures markets. Signal generation is based on the output of two, independent systems that look to price patterns and volatility to identify a potential opportunity.

Eagle’s Global Program employs a systematic methodology to capitalize on medium to long term trends in a wide range of global futures markets: currencies, fixed income, energies, commodities and stock indices. Well defined trading rules, which are based on extensive discretionary trading experience, incorporate screening and learning mechanisms which adjust to changes in market environment while giving strong attention to volatility. An attempt is made to participate in markets which exhibit favorable “signal to noise” characteristics. Money management and risk control disciplines serve to limit downside risk.

Saxon Investment Corporation’s Saxon Aggressive Diversified Program uses a systematic strategy that seeks to participate in the market’s extended trends using a combination of longer- and shorter-term systems. It is not a fully automatic strategy in that the advisor allows for discretion when warranted. Price data is the major input to the systems. The book is broadly diversified throughout the global futures markets with the exception of the global stock indices.

33

Registrant paid each Trading Advisor a monthly management fee and an incentive fee accrued monthly and paid quarterly pursuant to the applicable managed account advisory agreement.

	Effective October 1, 2010
Trading Advisor (4)	Management Fee% (1)		Incentive Fee% (2)
Ortus (3)		1.00		25.00
Eagle		2.00		25.00
Graham		2.50		25.00
GLC		2.00		25.00
Krom		1.50		25.00
Paskewitz		1.00		25.00
Crabel		1.00		25.00
Tudor		2.00		25.00

⁽¹⁾  The Management Fee is paid monthly at a rate equal to 1/12 of the indicated rate above of the net asset value of Registrant accordance with the applicable advisory agreement.

⁽²⁾  The Incentive Fee is paid quarterly on the percentage indicated of new net high trading profits of Registrant in accordance with the applicable advisory agreement.

⁽³⁾  The change in fees for Ortus was not effective until January 1, 2011.

⁽⁴⁾  As of January 1, 2012, Registrant transitioned from investments in direct managed accounts to accessing the trading advisors through CTA Choice’s managed account platform.

Indirectly through its investments in the Affiliated Investment Funds, Registrant now pays the following Trading Advisors management fees and incentive fees for achieving “New High Net Trading Profits,” in Registrant’s capital accounts within the Affiliated Investment Funds as defined in their respective advisory agreements.

Affiliated Investment Fund	Management Fee%		Incentive Fee%
BEAM		1.00		20.00
BLKW		1.00		25.00
CRABL-PV		1.00		25.00
EAGL		1.50		25.00
EGLG		2.00		25.00
GRM*		2.00		20.00
KRM		1.50		25.00
ORT		1.00		25.00
SAXN		0.00		25.00
TDRM*		2.00		20.00

* As of December 31, 2011, Registrant fully redeemed from GRM and TDRM.

Competition

The Managing Owner and its affiliates have formed, and may continue to form, various entities to engage in the speculative trading of futures, forward and options contracts which have certain of the same investment policies as Registrant.

Registrant is an open-end fund, which solicits the sale of additional Limited Interests on a monthly basis until the maximum amount of Limited Interests being offered by Registrant have been sold. As such, Registrant may compete with other entities, whether or not formed by the Managing Owner, to attract new participants. In addition, to the extent that a Trading Advisor recommends similar or identical trades to Registrant and other accounts that it manages, Registrant may compete with those accounts for the execution of the same or similar trades, as well as with other market participants.

The Administrator

Spectrum Global Fund Administration, L.L.C. (“Spectrum” or the “Administrator”), a Delaware limited liability company, was the administrator of Registrant and provided certain administration and accounting services pursuant to the terms of a Services Agreement with Registrant dated as of May 23, 2007. On December 10, 2010, AlphaMetrix360, LLC purchased the assets of Spectrum.

34

Effective June 1, 2011, the Registrant replaced AlphaMetrix 360, LLC with GlobeOp Financial Services LLC (“GlobeOp” or the “Administrator”), a Delaware limited liability company. AlphaMetrix 360, LLC’s Service Agreement with the Registrant was terminated effective close of business on May 31, 2011.

The Administrator performs or supervises the performance of services necessary for the operation and administration of Registrant (other than making investment decisions), including administrative and accounting services. The Administrator also calculates Registrant’s Net Asset Value. In addition, the Administrator maintains certain books and records of Registrant, including certain books and records required by CFTC Rule 4.23(a). “Administrator” refers to Spectrum, AlphaMetrix 360, LLC, or GlobeOp depending on the applicable period discussed.

Employees

Registrant has no employees. Management and administrative services for Registrant are performed by the Managing Owner or third parties pursuant to the Trust Agreement, as further discussed in Notes 3, 4, 5, 6 and 8 of Registrant’s 2011 Annual Report, which is filed as an exhibit to Registrant’s Form 10-K for the year ended December 31, 2011.

Critical Accounting Policies

General

Preparation of the financial statements and related disclosures in compliance with accounting principles generally accepted in the United States of America (“US GAAP”) requires the application of appropriate accounting rules and guidance. Applying these policies requires the Managing Owner to make judgments, estimates and assumptions in connection with the preparation of Registrant’s financial statements. Actual results may differ from the estimates used.

The Managing Owner has evaluated Registrant’s financial statements and related disclosures and has determined that the policies discussed below are critical accounting policies because they involve estimates, judgments and assumptions that are particularly complex, subjective or uncertain. For further discussion of Registrant’s significant accounting policies, see Note 2 of Registrant’s 2011 Annual Report, which is filed as an exhibit to Registrant’s Form 10-K for the year ended December 31, 2011.

The valuation of Registrant’s investments that are not traded on a United States (“U.S.”) or internationally recognized futures exchange is a critical accounting policy. The market values of futures (exchange traded) contracts is verified by Registrant’s administrator, which obtains valuation data from independent third party data providers and compares those prices with Registrant’s clearing broker. The market value of currency swap and forward (non-exchange traded) contracts is extrapolated on a forward basis from the spot prices quoted as of 4 p.m. on the last business day of the reporting period. All values assigned by the administrator and confirmed by the Managing Owner are final and conclusive as to all of Registrant’s Unitholders. As such, if actual results vary from estimates used, they are not anticipated to have a material impact on the financial statements and related disclosures.

Registrant records all investments at fair value in its financial statements, with changes in fair value reported as a component of revenue in the statements of operations. Generally, fair values are based on quoted market prices; however, in certain circumstances, significant judgments and estimates are involved in determining fair value in the absence of an active market closing price. Registrant considers its investments in publicly-traded mutual funds, prices for exchange traded commodity futures and options contracts to be based on quoted prices in active markets for identical assets (Level 1). The values of forwards, swaps, and certain option contracts for which market quotations are not readily available are priced by independent third party data vendors or pricing services who derive fair values for those assets from observable inputs (Level 2). Level 3 inputs reflect Registrant’s assumptions that it believes market participants would use in pricing the asset or liability. Registrant develops Level 3 inputs based on the best information available in the circumstances, which may include indirect correlation to a market value, combinations of market values or Registrant’s proprietary data. Level 3 inputs generally include information derived through extrapolation or interpolation of observable market data. Registrant does not currently have any investments valued using Level 3 inputs.

The investments in Affiliated Investment Funds are reported in Registrants statements of financial condition and are considered Level 2 investments. In determining the level, the Registrant considers the length of time until the investment is redeemable, including notice and lock-up periods or any other restriction on the disposition of the investment. The Registrant also considers the nature of the portfolios of the underlying Affiliated Investment Funds and their ability to liquidate their underlying investments. The Registrant has the ability to redeem its investments at the reported net asset valuation as of the measurement date (see Note 7 of the condensed financial statements) and classified its investments in Affiliated Investment Funds as Level 2 using the fair value hierarchy. Fair value ordinarily is the value determined for the Affiliated Investment Funds in accordance with the fund’s valuation policies and reported at the time of Registrants valuation by the management

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of the fund. Generally, the fair value of Registrant’s investments in funds represents the amount that Registrant could reasonably expect to receive from the funds if Registrant’s investment was redeemed at the time of the valuation, based on information reasonably available at the time the valuation is made and that Registrant believes to be reliable.

Of the Registrant’s investments at September 30, 2012, $76,087,999 or 78.37% are classified as Level 1 and $21,004,565 or 21.63% as Level 2. Of the Registrant’s investments at December 31, 2011, $62,015,348 or 88.31% are classified as Level 1 and $8,207,427 or 11.69% as Level 2. There are no Level 3 investments at September 30, 2012 or December 31, 2011, nor any portion of the interim periods.

The Managing Owner has determined that it is in the best interest of the Registrant to invest a portion of its non-margin assets, either directly or indirectly through certain investment funds, in (i) U.S. government securities (which include any security issued or guaranteed as to principal or interest by the United States), (ii) any certificate of deposit for any of the foregoing, including U.S. treasury bonds, U.S. treasury bills and issues of agencies of the United States government, (iii) corporate bonds or notes, or (iv) other instruments permitted by applicable rule and regulations. Effective January 1, 2011, the Managing Owner is paid monthly 1/12 of 50% of the first 1% of the positive returns earned on the Registrant’s investment of non-margin assets. The calculation is based on the averaged annualized net asset value, and any losses related to returns on the non-margin assets must first be recovered through subsequent positive returns prior to the Managing Owner receiving a payment. After the calculation of the amount payable to the Managing Owner, the Registrant will be credited with all additional positive returns (or 100% of any losses) on the Registrant’s investment of non-margin assets. If at the end of any calendar year a loss has been incurred on the returns for the non-margin assets, then the loss carry forward will reset to zero for the next calendar year with regards to the calculation of the Managing Owner’s portion of the non-margin asset’s income.

Liquidity and Capital Resources

Registrant commenced operations on December 1, 2005 with gross proceeds of $31,024,443 allocated to commodities trading. Additional contributions raised through the continuous offering of limited interests (“Limited Interests”) and general interests (“General Interests” or “Managing Owner Interests” and, together with the Limited Interests, “Interests”) of beneficial ownership in Registrant for the period from December 1, 2005 (commencement of operations) to September 30, 2012 resulted in additional gross proceeds to Registrant of $193,923,378.

Limited Interests in Registrant may be subscribed or redeemed on a monthly basis.

Subscriptions and Redemptions

Third Quarter 2012

Subscriptions of Limited Interests and General Interests for the Third Quarter 2012 were $0 and $0, respectively. Redemptions of Limited Interests and General Interests for the Third Quarter 2012 were $7,180,271 and $0, respectively.

Third Quarter 2011

Subscriptions of Limited Interests and General Interests for the Third Quarter 2011 were $7,210,588 and $0, respectively. Redemptions of Limited Interests and General Interests for the Third Quarter 2011 were $2,617,382 and $0, respectively.

Liquidity

A portion of Registrant’s net assets were allocated to commodities trading, publicly-traded mutual funds, and the rest was held in cash, which was used as margin for trading in commodities through its investments in Affiliated Investment Funds. In as much as the sole business of Registrant is to trade in commodities, Registrant continues to own such liquid assets to be used as margin. The clearing brokers and bank credit Registrant with interest income on 100% of its average daily equity maintained in its accounts with the clearing brokers and bank during each month at competitive interest rates.

Commodities contracts presented directly or indirectly may be subject to periods of illiquidity because of market conditions, regulatory considerations and other reasons. For example, commodity exchanges limit fluctuations in certain commodity futures contract prices during a single day by regulations referred to as “daily limits.” During a single day, no trades may be executed at prices beyond the daily limit. Once the price of a futures contract for a particular commodity has increased or decreased by an amount equal to the daily limit, positions in the commodity can neither be taken nor liquidated unless traders are willing to effect trades at or within the limit. Commodity futures prices have occasionally moved the daily limit for several consecutive days with little or no trading. Such market conditions could prevent Registrant from promptly liquidating its commodity futures positions.

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Since Registrant’s business is to trade futures, forward and option contracts, through its investments in Affiliated Investment Funds, its capital is at risk due to changes in the value of these contracts (market risk) or the inability of counterparties to perform under the terms of the contracts (credit risk). Registrant’s exposure to market risk is influenced by a number of factors including the volatility of interest rates and foreign currency exchange rates, the liquidity of the markets in which the contracts are traded and the relationships among the contracts held. The inherent uncertainty of Registrant’s speculative trading as well as the development of drastic market occurrences could result in losses considerably beyond Registrant’s experience to date and could ultimately lead to a loss of all or substantially all of investors’ capital. The Managing Owner attempts to minimize these risks by requiring Registrant and the Trading Advisors to abide by various trading limitations and policies, which include limiting margin amounts, trading only in liquid markets and permitting the use of stop loss provisions. See Note 10 of the Registrant’s unaudited condensed financial statements, attached hereto for further discussion on the credit and market risks associated with Registrant’s futures, forward and option contracts.

Registrant does not have, nor does it expect to have, any capital assets.

Market Overview

Following is a market overview for Third Quarter 2012 and Third Quarter 2011:

Third Quarter 2012

The third quarter was marked by a dramatic turnaround in global financial markets sparked by bold actions of the ECB and turbocharged by the Fed’s announcement of open-ended quantitative easing (QE). Amid rising stress in the sovereign debt markets, the ECB President Mario Draghi came out and made a forceful statement committing the ECB to unlimited support for the sovereign bond markets in the eurozone. Meanwhile, the global economy continued to weaken in the third quarter. Global PMIs dropped to their lowest levels since 2009. In the United States, the economy outside of manufacturing actually showed some glimpses of life—notably in housing and auto sales. However, the expansion broadly remained lackluster and shaky, vulnerable to adverse developments. Europe remained stalled in its slump, with no sign of bottoming in the periphery countries. Emerging markets showed more broad-based signs of deceleration in economic growth. However, the softening global economic growth picture was overshadowed by the reduction of tail risk brought about by central bank actions, making risk assets soar.

Treasuries experienced a roller-coaster ride during the third quarter, but ended not far from where they began. Early in the quarter, amid a deepening crisis in the eurozone, Treasury yields plunged to new record lows. The yield on the 10-year fell below 1.40% in July, and the yield on the 30-year plummeted below 2.50%. However, Draghi’s announcement sparked a turnaround. Yields on the long end of the curve surged, with the 30-year rising past 3%. However, the spike proved short-lived, especially as the Fed extended its promise to keep rates low until 2015 and announced an open-ended QE. The yield curve steepened as rates fell at the shorter end of the curve. The 10-year yield edged down 2 basis points to end the quarter at 1.65%. The 30-year yield edged up by 6 basis points to reach 2.82%. The yield on the 5-year note dropped 10 basis points to 62 basis points, a new record low, and the yield on the 2-year note also declined by 10 basis points to 23 basis points. The ECB cut rates to 75 basis points. The Bank of England and the Bank of Japan maintained status quo.

The greenback declined as flight to safety receded, and QE added to the weakness. The Dollar Index declined 2.07%. The euro climbed 1.48%; however, this masks the sharp moves during the quarter. The British pound also gained against the dollar, rising 2.84%. Despite the risk-on environment, the yen actually rose 2.37% against the greenback. The commodity currencies gained as the QE boosted commodity prices. The Australian and the Canadian dollars appreciated 1.48% and 3.46%, respectively.

US equities experienced a solid rally in the third quarter. The gains were broad-based, although transportation was a notable exception. The Dow, the S&P 500, and NASDAQ gained approximately 9.69%, 6.35% and 6.17%, respectively, for the quarter. European stocks experienced even stronger rallies. The STOXX 600, a broad measure of European equities, surged 8.56%, in dollar terms. The CAC, the DAX and the FTSE 100 closed the quarter with gains of approximately 4.95%, 12.47%, and 3.07%, respectively. Asian markets were no different, although the Nikkei was an exception, declining 1.52%. The Hang Seng gained 7.20%, and the Korean Kospi increased 7.67%. The Australian All Ordinaries Index rose 6.55%.

Commodities experienced broad-based gains in the third quarter as the easing of monetary policy overcame global industrial weakness. Much of the commodity complex rallied, but lean hogs, sugar, and cotton were notable exceptions. Brent crude surged 15.46% during the quarter as the Iranian sanctions loomed over the market. Gasoline, heating oil, and natural gas outperformed crude oil, gaining 27.37%, 18.44%, and 17.56%, respectively.

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With central banks’ accommodative policy, gold gained 10.85% and silver soared 25.88%. Base metal prices rose across the board. Copper, nickel, aluminum, and zinc recorded gains of 8.46%, 10.23%, 10.63%, and 11.97%, respectively.

Grains were among the better performers within the agricultural complex, as the drought continues to weigh on prospective supplies. Wheat, soybeans, and corn gained 19.62%, 4.49%, and 9.21%, respectively. Tropicals bucked the broader trend and experienced losses, with sugar leading the way with an 8.50% loss.

Third Quarter 2011

The third quarter of 2011 brought the most significant risk aversion in financial markets since late 2008. The circumspection that reared its head in the second quarter mushroomed in the third quarter as the next leg of the European crisis unfolded and was compounded by growing indications of a sharp deceleration in global economic activity. The latest episode of the Eurozone crisis brought forth new complications as the sovereign debt problem spread to more countries placing increased stress on the fragile banking system and making it difficult for policymakers to come up with quick fixes. US GDP growth in the second quarter came in at a disappointing 1.33%, annual rate, and the first quarter growth was revised down to a 0.36%, annual rate. Data released so far for the third quarter indicates a modest pickup in GDP growth. Meanwhile, job growth slowed sharply in the third quarter and the unemployment rate stubbornly remained above the 9% mark. The housing market remained in the doldrums. Global economic data was even weaker with Europe leading the way and emerging markets also showing signs of significant slowdown.

Treasuries experienced their biggest rally since the fourth quarter of 2008 as confidence in the economic recovery faltered and concerns about Eurozone fueled safe haven demand. The 10-year yield easily breached the 2008 low, broke the 2% mark, and fell to its lowest level in six decades. The yield plunged by 126 basis points to end the quarter at 1.9%. The 30-year yield also fell sharply, by 148 basis points, to end the quarter at 2.9%. The 5-year experienced a substantial rally, although the yield curve flattened noticeably. The yield on the 5-year note fell 80 basis points to 0.96%. The two year yield declined to 25 basis points, the lowest on record. The Fed made two moves during the quarter—one announcing its intentions to keep interest rates low until 2013 and the other announcing the so-called Operation Twist. The European Central Bank maintained status quo on rates even as it intensified its firefighting by stepping up its purchase of Italian and Spanish government bonds. The Bank of England continued to be divided over elevated inflation but the fragile and stalling economy prevented any action. The Bank of Japan kept key rates unchanged throughout the quarter as well.

The greenback experienced a rally resulting from the euro’s travails and the global flight to safety. The Dollar Index surged 5.7% and rose to its highest level since early 2011. The euro fell 7.4%, its biggest quarterly decline since the second quarter of 2010. The Swiss franc reversed its meteoric climb as the Swiss Central Bank intervened to cap the franc’s rise against the euro. The British pound was more subdued but still declined 2.76% against the greenback. Not surprisingly, the Japanese yen appreciated 4.46% amid global risk aversion. Declining commodity prices, fears about Chinese slowdown, and the global risk aversion dented the Australian and Canadian dollars, which dropped 9.2% and 7.8%, respectively.

US equities suffered their biggest quarterly loss since the fourth quarter of 2008. The declines were broad-based. Financial and transportation led the way down. The Dow, the S&P 500^®, and the Nasdaq^® declined approximately 12.1%, 13.9% and 12.9%, respectively for the quarter. European stocks fared much worse. The STOXX 600^®, a broad measure of European equities, plunged 23.3%, in dollar terms. The CAC, the DAX^® and the FTSE 100^® closed the quarter with losses of approximately 25.4%, 25.1%, and 13.7%, respectively. Asian markets were hard hit as well. The Nikkei declined 11.4%, the Hang Seng dropped 21.5%, and the Kospi^® fell 15.8%. The Australian All Ordinaries Index declined 12.7%.

Commodities slipped for the second consecutive quarter as global industrial activity appeared to be decelerating and the risks of US and European recession loomed larger and fears of a hard landing in China gained some credence. While much of the commodity complex declined during the quarter, gold, lean hogs, live cattle, and wheat were the notable exceptions. Crude fell 17.2% during the quarter and heating oil declined 4.7%. Gasoline dropped 4.6%. Natural gas declined 14.1%.

Gold breached the $1,900 mark during the quarter but fell sharply in September, paring the gains to 9.2% for the quarter. Silver declined 10.9%. Base metals were hit hard. Copper, zinc, aluminum, and nickel recorded declines of 26.8%, 21.4%, 13.8%, and 23.5%, respectively.

Grains were among the better performers within the commodity complex and their losses were largely restricted to September when the financial markets exhibited symptoms of liquidity squeeze. Wheat actually gained 1.1%, while corn and soybean declined 5.3% and 10.2%, respectively. Cotton continued to correct sharply, falling 26.5%. Lean hogs and live cattle bucked the trend within commodities and in the broader financial markets by registering solid gains of 12.6% and 7.3%, respectively.

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Sector Performance

Due to the nature of Registrant’s direct and indirect trading activities, a period-to-period comparison of its trading results is not meaningful. However, set forth below are the following:

(a) the major sectors to which Registrant’s assets were allocated as of Third Quarter 2012 and Third Quarter 2011, measured as a percentage of the “gross speculator margin” (i.e., the minimum amount of cash or marginable securities a speculator must post when buying or selling futures assets); and

(b) discussion of Registrant’s direct and indirect trading results for the major sectors in which Registrant traded for the Third Quarter 2012 and Third Quarter 2011.

Third Quarter 2012

As of September 30, 2012, the allocation of Registrant’s assets indirectly, through its investments in Affiliated Investment Funds, to major sectors was as follows:

Sector	Allocation
Currencies		37.25	%
Energies		14.24	%
Grains		9.96	%
Indices		17.80	%
Interest Rates		10.95	%
Meats		1.15	%
Metals		7.90	%
Tropicals		0.75	%
TOTAL		100.00	%

Trading results for the major sectors in which Registrant indirectly traded for Third Quarter 2012 were as follows:

Currencies: (+) The Registrant experienced the majority of its gains in the Canadian dollar, the euro, and the Swiss franc. The majority of the losses were experienced in the Australian dollar and the British pound.

Interest Rates: (+) The Registrant experienced a majority of gains in the bund, the London gilt, and the eurodollar. The majority of the losses were incurred in the Australian 10-year bond, the Australian 3-year bond, and the U.S. Treasury bond.

Indices: (+) The Registrant experienced gains in the DAX, the S&P 500 Mini Index, and the NASDAQ E-mini. The majority of the losses were incurred in the FTSE MIB Index, the Nikkei Index – Osaka, and the Heng Seng.

Energies: (-) The Registrant experienced the majority of its gains in heating oil, gas oil, and brent crude. Losses were incurred in gasoline RBOB futures, natural gas, and crude oil.

Metals: (+) The Registrant experienced the majority of its gains in gold and platinum. Losses were incurred in copper, palladium, and silver.

Grains: (+) The Registrant experienced the majority of its gains in soybean meal, soybeans, and corn. The majority of losses were experienced in wheat.

Softs: (-) The Registrant experienced losses in coffee and sugar.

Meats: (-) The Registrant experienced losses in live cattle.

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Third Quarter 2011

As of September 30, 2011, the allocation of Registrant’s assets to major sectors was as follows:

Sector	Allocation
Currencies		31.19	%
Energies		13.18	%
Grains		10.69	%
Indices		24.84	%
Interest Rates		8.31	%
Meats		0.48	%
Metals		9.45	%
Tropicals		1.86	%
TOTAL		100.00	%

Trading results for the major sectors in which Registrant traded for Third Quarter 2011 were as follows:

Currencies: (+) Registrant experienced the majority of its gains in the Euro, Japanese yen, Swiss franc and Mexican peso. The majority of losses were experienced in the Australian and Canadian dollars.

Energies: (-) Registrant experienced the majority of its losses in brent crude, gasoline and heating oil. The majority of gains were incurred from crude oil and natural gas.

Grains: (-) Registrant experienced gains in wheat and soybean meal. The majority of losses were experienced in soybeans and corn.

Indices: (-) Registrant experienced large gains in the Hang Seng. The majority of losses were incurred in the S&P 500^® Mini Index, the Dow Jones Industrial Average and the DAX.

Interest Rates: (+) Registrant experienced gains in the London Gilt, German Bund Treasury Bonds and Treasury Notes.

Meats: (-) Registrant experienced losses in live cattle and live hogs.

Metals: (+) Registrant experienced gains in gold and copper. Small losses were incurred in silver and tin.

Tropicals: (-) Registrant experienced losses in sugar, coffee and cocoa.

Third Quarter 2012

The Net Asset Value per Interest of Class I as of September 30, 2012 was $111.58, an increase of $0.98 from the June 30, 2012 Net Asset Value of $110.60.

The Net Asset Value per Interest of Class II as of September 30, 2012 was $123.04, an increase of $1.63 from the June 30, 2012 Net Asset Value of $121.41.

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The following table discloses each trading advisors’ contribution to the Net Asset Values of Class I and Class II as of September 30, 2012, as well as the allocation of Registrants assets to each Trading Advisor at September 30, 2012.

WMT III Series J - Class I				WMT III Series J - Class II				Allocation of Assets as of September 30, 2012
Beginning UNAV	$	117.27		Beginning UNAV	$	127.60
BEAM		(1.08	)	BEAM		(1.18	)		14.82	%
BLKW		(2.18	)	BLKW		(2.37	)		14.26	%
CRABL-PV		(0.43	)	CRABL-PV		(0.46	)		14.15	%
EAGL		0.10		EAGL		0.11			7.04	%
EGLG		1.99		EGLG		2.16			7.13	%
KRM		(0.21	)	KRM		(0.23	)		14.17	%
ORT		(0.64	)	ORT		(0.69	)		14.19	%
SAXN		0.04		SAXN		0.04			14.24	%
Net Expenses		(3.28	)	Net Expenses		(1.94	)
ENDING UNAV	$	111.58		ENDING UNAV	$	123.04			100.00	%

* The above table is based on the effect for an investor who held the unit for the entire Year-to-Date 2012, and is based on the average contribution per trader and net expenses for the relevant class of shares.

Registrant’s average net asset level during the Third Quarter 2012 was approximately $117,427,000, a decrease of approximately $33,612,000 as compared to the Third Quarter 2011, primarily due to the effect of redemptions and negative trading performance.

Registrant’s performance for Class I and Class II for the Third Quarter 2012 was 0.89% and 1.34%, respectively. Performance includes the percentage change in Registrant’s Net Asset Value excluding the effect of any subscriptions and redemptions and includes the percentage impact of trading gains/(losses) less any commissions and related fees and expenses. Past performance is not necessarily indicative of future results.

Registrant’s total gains on investments before commissions and related fees for Third Quarter 2012 were approximately $308,000.

Registrant’s total gains from its investments in Affiliated Investment Funds were approximately $2,048,000.

Dividend income for the Third Quarter 2012 was approximately $252,000, an increase of approximately $22,000, as compared to the Third Quarter 2011.

Brokerage Commissions and other transaction fees, which are now paid indirectly through the Affiliated Investment Funds and are reflected within the respective net asset values of each of the Affiliated Investment Funds, for the Third Quarter 2012 were approximately $117,000 a increase of approximately $15,000 as compared to the Third Quarter 2011.

Trading Advisor’s management fees, which are now paid indirectly through the Affiliated Investment Funds and are reflected within the respective Net Asset Values of each of the Affiliated Investment Funds, for the Third Quarter 2012 were $312,000, an decrease of approximately $22,000 as compared to the Third Quarter 2011, primarily due to the decrease in the average net asset level discussed above.

Management fees to the Managing Owner for the Third Quarter 2012 were approximately $147,000, a decrease of approximately $43,000 as compared to the Third Quarter 2011, primarily due to the decrease in the average net asset level discussed above.

Incentive fees are based on the “New High Net Trading Profits” generated by the Trading Advisors, as defined in the Trading Advisory Agreements between Registrant and the Trading Advisors. Incentive fees, which are now paid indirectly through the Affiliated Investment Funds and are reflected within the respective Net Asset Values of each of the Affiliated Investment Funds, for the Third Quarter 2012 were approximately $361,000.

ClariTy Managed Account fees for the Third Quarter 2012, which are now paid indirectly through the Affiliated Investment Funds and are reflected within the respective Net Asset Values of each of the Affiliated Investment Funds, were $75,000, a decrease of approximately $20,000 as compared to the Third Quarter 2011, primarily due to the decrease in the average net asset level discussed above.

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Service Fees for the Third Quarter 2012 were approximately $487,000, a decrease of approximately $159,000 as compared to the Third Quarter 2011, primarily due to the decrease in the average net asset level discussed above.

Sales Commissions for the Third Quarter 2012 were approximately $297,000, a decrease of approximately $83,000 as compared to the Third Quarter 2011, primarily due to the decrease in the average net asset level discussed above.

Managing Owner interest earned on investment funds for the Third Quarter 2012 was approximately $280,000, an increase of approximately $217,000 as compared to the Third Quarter 2011.

Operating expenses were approximately $156,000 for the Third Quarter 2012. These expenses include accounting, audit, registrar, and transfer agent, tax and legal fees as well as printing and postage costs related to reports sent to limited owners.

Offering costs were approximately $66,000 for the Third Quarter 2012.

Third Quarter 2011

The Net Asset Value per Interest of Class I as of September 30, 2011 was $122.59, a increase of $0.31 from the June 30, 2011 Net Asset Value of $122.28.

The Net Asset Value per Interest of Class II as of September 30, 2011 was $132.78, a increase of $0.97 from the June 30, 2011 Net Asset Value of $131.81.

Registrant’s average net asset levels during the Third Quarter 2011 were approximately $151,039,000, an increase of $10,569,000 as compared to the Third Quarter 2010, primarily due to the effect of additional subscriptions and positive trading performance during 2010.

Registrant’s performance for Class I and Class II for the Third Quarter 2011 was 0.25% and 0.74%, respectively. Performance includes the percentage change in Registrant’s Net Asset Value excluding the effect of any subscriptions and redemptions and includes the percentage impact of trading gains/(losses) less any commissions and related fees and expenses. Past performance is not necessarily indicative of future results.

Registrant’s trading gains before commissions and related fees for the Third Quarter 2011 were approximately $295,000. Registrant gains from its investments in Affiliated Investment Funds were approximately $2,107,000.

Dividend income for the Third Quarter 2011 was approximately $230,000, an increase of approximately $230,000, as compared to the Third Quarter 2010, as the Registrant began earning dividend income on the investment of non-margin assets in investment funds starting October 2010. For a further discussion of these investments, see Note 4 of Registrant’s 2010 Annual Report, which is filed as an exhibit to Registrant’s Form 10-K for the fiscal year ended December 31, 2010.

Brokerage Commissions and other transaction fees for the Third Quarter 2011 were approximately $102,000, a decrease of approximately $72,000 as compared to the Third Quarter 2010, primarily due to decreased trading volumes and the change in structure regarding GRM, EAGL and CRABL-PV as discussed above.

Management fees to the Trading Advisors for the Third Quarter 2011 were approximately $334,000, a decrease of approximately $354,000 as compared to the Third Quarter 2010, primarily due to the change in management fee rates charged by the Trading Advisors and the change in structure regarding GRM, EAGL and CRABL-PV as discussed above.

Management fees to the Managing Owner during the Third Quarter 2011 were approximately $190,000, an increase of approximately $14,000 as compared to the Third Quarter 2010, primarily due to increase in average net asset levels discussed above.

ClariTy Managed Account fees for the Third Quarter 2011 were approximately $95,000, an increase of approximately $95,000 as compared to the Third Quarter 2010, as the Registrant began paying a fee to ClariTy in October 2010. For a further discussion of this fee, See Note 4 of Registrant’s 2010 Annual Report, which is filed as an exhibit to Registrant’s Form 10-K for the fiscal year ended December 31, 2010.

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Service Fees for the Third Quarter 2011 were approximately $646,000, an increase of approximately $143,000 as compared to the Third Quarter 2010, primarily due to the increase in average net asset levels discussed above. Sales Commissions for the Third Quarter 2011 were approximately $380,000, an increase of approximately $27,000 as compared to the Third Quarter 2010, primarily due to increase in average net asset levels discussed above.

Incentive fees are based on the “New High Net Trading Profits” generated by the Trading Advisors, as defined in the Trading Advisory Agreements between Registrant and the Trading Advisors. Incentive fees for the Third Quarter 2011 were approximately $69,000.

Managing Owner interest earned on investment funds for the Third Quarter 2011 were approximately $63,000, an increase of approximately $63,000 as compared to the Third Quarter 2010, as the Managing Owner began earning interest on the return of the investment of non-margin assets in October 2010. For a further discussion of this fee, See Note 4 of Registrant’s 2010 Annual Report, which is filed as an exhibit to Registrant’s Form 10-K for the fiscal year ended December 31, 2010.

Operating expenses were approximately $205,000 for the Third Quarter 2011. These expenses include accounting, audit, registrar, and transfer agent, tax and legal fees as well as printing and postage costs related to reports sent to limited owners.

Offering costs were approximately $83,000 for the Third Quarter 2011.

Inflation

Inflation has had no material impact on the operations or on the financial condition of Registrant from inception through September 30, 2012.

Off-Balance Sheet Arrangements and Contractual Obligations

Registrant does not have any off-balance-sheet arrangements (as defined in Regulation S-K 303(a)(4)(ii)) that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Registrant’s contractual obligations are with the Managing Owner, the Trading Advisors through the CTA Choice Segregated Series and its commodity broker. Management fees payable by Registrant to the Trading Advisors through the CTA Choice Segregated Series and the Managing Owner are calculated as a fixed percentage of Registrant’s Net Asset Value or allocated assets as defined. Incentive fees payable by the Registrant to the Trading Advisors through the CTA Choice Segregated Series are at a fixed rate, calculated as a percentage of Registrant’s “New High Net Trading Profits” (as defined in the Advisory Agreements). As such, the Managing Owner cannot anticipate the amounts to be paid for future periods as Net Asset Values and “New High Net Trading Profits” are not known until a future date. Commissions payable to Registrant’s commodity broker are based on a cost per executed trade and, as such, the Managing Owner cannot anticipate the amount that will be required under the brokerage agreement, as the level of executed trades are not known until a future date. These agreements are effective for one-year terms, renewable automatically for additional one-year terms unless terminated. Additionally, these agreements may be terminated by either party thereto for various reasons. Additionally, Registrant does not enter into other long-term debt obligations, capital lease obligations, operating lease obligations or other long-term liabilities that would otherwise be reflected on Registrant’s Statements of Financial Condition, a table of contractual obligations has not been presented. For a further discussion of Registrant’s contractual obligations, see Notes 1, 3, 4, 5 and 7 to Registrant’s financial statements for the year ended December 31, 2011, which is filed as an exhibit to Registrant’s annual report on Form 10-K for the fiscal year ended December 31, 2011.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Introduction

Past Results Not Necessarily Indicative of Future Performance

Registrant is a speculative commodity pool. The market sensitive instruments held by it are acquired for speculative trading purposes, and substantially all of Registrant’s assets are subject to the risk of trading loss. Unlike an operating company, the risk of market sensitive instruments is integral, not incidental, to Registrant’s main line of business.

Market movements result in frequent changes in the fair market value of Registrant’s open positions and, consequently, in its earnings and cash flow. Registrant’s market risk is influenced by a wide variety of factors, including the level and volatility of interest rates, exchange rates, equity price levels, the market value of financial instruments and contracts, the diversification effects among Registrant’s open positions and the liquidity of the markets in which it trades.

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Registrant rapidly acquires and liquidates both long and short positions in a wide range of different markets. Consequently, it is not possible to predict how a particular futures market scenario will affect performance, and Registrant’s past performance is not necessarily indicative of its future results.

“Value at Risk” is a measure of the maximum amount which Registrant could reasonably be expected to lose in a given market sector. However, the inherent uncertainty of Registrant’s speculative trading and the recurrence in the markets traded by Registrant of market movements far exceeding expectations could result in actual trading or non-trading losses far beyond the indicated Value at Risk or Registrant’s experience to date (i.e., “risk of ruin”). In light of the foregoing, as well as the risks and uncertainties intrinsic to all future projections, the quantification included in this section should not be considered to constitute any assurance or representation that Registrant’s losses in any market sector will be limited to Value at Risk or by Registrant’s attempts to manage its market risk.

Standard of Materiality

Materiality as used in this section, “Quantitative and Qualitative Disclosures About Market Risk,” is based on an assessment of reasonably possible market movements and the potential losses caused by such movements, taking into account the leverage, optionality and multiplier features of Registrant’s market sensitive instruments.

Quantifying Registrant’s Trading Value at Risk

Quantitative Forward-Looking Statements

The following quantitative disclosures regarding Registrant’s market risk exposures contain “forward-looking statements” within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934. as amended (the “Exchange Act”)).

Registrant’s risk exposure in the various market sectors traded by the Trading Advisors is quantified below in terms of Value at Risk. Due to Registrant’s mark-to-market accounting, any loss in the fair value of Registrant’s open positions is directly reflected in Registrant’s earnings (realized or unrealized) and cash flow (at least in the case of exchange-traded contracts in which profits and losses on open positions are settled daily through variation margin).

Exchange maintenance margin requirements have been used by Registrant as the measure of its Value at Risk. Maintenance margin requirements are set by exchanges to equal or exceed the maximum losses reasonably expected to be incurred in the fair value of any given contract in 95%-99% of any one-day interval. The maintenance margin levels are established by dealers and exchanges using historical price studies as well as an assessment of current market volatility (including the implied volatility of the options on a given futures contract) and economic fundamentals to provide a probabilistic estimate of the maximum expected near-term one-day price fluctuation. Maintenance margin has been used rather than the more generally available initial margin, because initial margin includes a credit risk component, which is not relevant to Value at Risk.

In the case of market sensitive instruments that are not exchange-traded (almost exclusively currencies in the case of Registrant), the margin requirements for the approximate estimated equivalent futures positions have been used as Value at Risk. In those rare cases in which a futures-equivalent margin is not available, estimated dealers’ margins have been used.

In quantifying Registrant’s Value at Risk, 100% positive correlation in the different positions held in each market risk category has been assumed. Consequently, the margin requirements applicable to the open contracts have simply been aggregated to determine each trading category’s aggregate Value at Risk. The diversification effects resulting from the fact that Registrant’s positions are rarely, if ever, 100% positively correlated have not been reflected.

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Registrant’s Trading Value at Risk in Different Market Sectors

The following table presents the trading value at risk associated with Registrant’s open positions by market sector through its investments in Affiliated Investment Funds at September 30, 2012 and December 31, 2011. All open position trading risk exposures of Registrant have been included in calculating the figure set forth below. At September 30, 2012 and December 31, 2011, Registrant had total capitalizations of approximately $114 million and $144 million, respectively.

	September 30, 2012					December 31, 2011
Market Sector	Value at Risk		% of Total Capitalization			Value at Risk		% of Total Capitalization
Interest rates	$	2,014,984		1.77	%	$	2,298,633		1.59	%
Currencies		6,849,867		6.03	%		4,519,030		3.12	%
Commodities		6,254,515		5.51	%		3,885,282		2.69	%
Stock indices		3,276,032		2.89	%		1,219,897		0.84	%
Total	$	18,395,398		16.20	%	$	11,922,842		8.24	%

The following table presents the average trading value at risk of Registrant’s open positions by market sector for Third Quarter 2012 and 2011 based upon Registrant’s total average capitalization of approximately $118 million and $151 million, respectively.

	Third Quarter 2012					Third Quarter 2011
Market Sector	Value at Risk		% of Total Capitalization			Value at Risk		% of Total Capitalization
Interest rates	$	2,302,199		1.96	%	$	1,233,466		0.82	%
Currencies		5,982,701		5.09	%		5,682,393		3.78	%
Commodities		5,714,538		4.86	%		5,714,403		3.80	%
Stock indices		2,850,564		2.42	%		3,367,530		2.24	%
Total	$	16,850,003		14.33	%	$	15,997,792		10.64	%

Material Limitations on Value at Risk as an Assessment of Market Risk

The notional value of the market sector instruments held by Registrant (directly/indirectly) is typically many times the applicable maintenance margin requirement (maintenance margin requirements generally range between approximately 1% and 10% of the face value) as well as many times the total capitalization of Registrant. The magnitude of Registrant’s open positions creates a “risk of ruin” not typically found in most other investment vehicles. Because of the size of its positions, certain market conditions, although unusual, but historically recurring from time to time, could cause Registrant to incur severe losses over a short period of time. The foregoing Value at Risk table, as well as the past performance of Registrant give no indication of this “risk of ruin.”

Non-Trading Risk

Registrant has non-trading market risk on its foreign cash balances not needed for margin. However, these balances (as well as any market risk they represent) are immaterial.

Qualitative Disclosures Regarding Primary Trading Risk Exposures

The following qualitative disclosures regarding Registrant’s market risk exposures—except for (i) those disclosures that are statements of historical fact and (ii) the descriptions of how Registrant manages its primary market risk exposures—constitute forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Registrant’s primary market risk exposures as well as the strategies used and to be used by the Managing Owner and the Trading Advisors for managing such exposures are subject to numerous uncertainties, contingencies and risks are one of which could cause the actual results of Registrant’s risk controls to differ materially from the objectives of such strategies. Government interventions, defaults and expropriations, illiquid markets the emergence of dominant fundamental factors, political upheavals, changes in historical price relationships, an influx of new market participants, increased regulation and many other factors could result in material losses as well as in material changes to the risk exposures and the risk management strategies of Registrant. There can be no assurance that Registrant’s current market exposure and/or risk management strategies will not change materially or that any such strategies will be effective in either the short- or long-term. Investors must be prepared to lose all or substantially all of their investment in Registrant.

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Based on the trading value at risk at September 30, 2012, the Registrant experienced an increase across all sectors in its value at risk, relative to capitalization levels, as compared with the trading value at risk at December 31, 2011. Increases in the average trading value at risk, relative to average capitalization levels, were also experienced across all sectors during the Third Quarter as compared with the Third Quarter 2011.

Qualitative Disclosures Regarding Means of Managing Risk Exposure

The means by which the Managing Owner and the Trading Advisors through the CTA Choice Segregated Series, severally, attempt to manage the risk of Registrant’s open positions is essentially the same in all market categories traded.

The Trading Advisors attempt to minimize market risk exposure by applying their own risk management trading policies that include the diversification of trading assets into various market sectors. Additionally, the Trading Advisors have an oversight committee broadly responsible for evaluating and overseeing the Trading Advisors’ trading policies. The oversight committee meets periodically to discuss and analyze issues such as liquidity, position size, capacity, performance cycles, and new product and market strategies.

The Managing Owner attempts to minimize market risk exposure by requiring the Trading Advisors to abide by various trading limitations and policies. The Managing Owner monitors compliance with these trading limitations and policies which include, but are not limited to, limiting the amount of margin or premium required for any one commodity or all commodities combined and generally limiting transactions to contracts which are traded in sufficient volume to permit the taking and liquidating of positions. Additionally, the Managing Owner shall automatically terminate the Trading Advisors through the CTA Choice Segregated Series if the Net Asset Value of Registrant declines by 40% during any year or since the commencement of trading activities. Furthermore, the Trust Agreement provides that Registrant will liquidate its positions, and eventually dissolve, if Registrant experiences a decline in the net asset value of 50% in any year or since the commencement of trading activities. In each case, the decline in Net Asset Value is after giving effect for contributions, distributions and redemptions. The Managing Owner may impose additional restrictions (through modifications of such trading limitations and policies) upon the trading activities of the Trading Advisors as it, in good faith, deems to be in the best interest of Registrant.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Registrant’s “disclosure controls and procedures” (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) are designed to ensure that information required to be disclosed by Registrant in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission (the “SEC”), and that such information is accumulated and communicated to Registrant’s management, including the Managing Owner’s Co-Chief Executive Officers and Director of Fund Administration (who, in these capacities, function as the Principal Executive Officers and Principal Financial Accounting Officer, respectively, of Registrant), as appropriate to allow for timely decisions regarding required disclosure.

In designing and evaluating Registrant’s disclosure controls and procedures, the Managing Owner recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs. Because of the inherent limitations in all control systems, no evaluation of the controls can prove absolute assurance that all control issues and instances of fraud, if any, within Registrant have been detected.

The Managing Owner’s management, under the supervision and with the participation of certain officers of the Managing Owner (including the Managing Owner’s Co-Chief Executive Officers and Director of Fund Administration), has evaluated the effectiveness of Registrant’s disclosure controls and procedures as of September 30, 2012. Based on the evaluation, the Managing Owner’s Co-Chief Executive Officers and Director of Fund Administration have concluded that, Registrant’s disclosure controls and procedures were effective.

Changes in Internal Control Over Financial Reporting

There have been no changes in Registrant’s internal control over financial reporting (as defined in Rules 13a – 15(f) and 15d – 15(f) under the Exchange Act) during the Third Quarter 2012 that have materially affected, or are reasonably likely to materially affect, Registrant’s internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings

There are no material legal proceedings pending, on appeal, or concluded to which Registrant is a party or to which any of its assets are subject.

Item 1.A. Risk Factors

There have been no changes from risk factors as previously disclosed in Registrant’s Form 10-K for the fiscal year ended December 31, 2011.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table presents sales of unregistered interests (i.e., Managing Owner interests) exempt from registration under Section 4(2) of the Securities Act of 1933 during the period from September 28, 2004 (inception) through September 30, 2012.

	Amount of
Date of Sale	Units Sold		Cash Received
March 10, 2005		10	$	1,000
December 1, 2005		3,080	$	308,000
January 1, 2006		765	$	74,535
February 1, 2006		416	$	40,000
March 1, 2006		256	$	24,489
April 1, 2006		223	$	21,560
May 1, 2006		265	$	27,537
June 1, 2006		454	$	47,400
July 1, 2006		575	$	59,000
August 1, 2006		530	$	52,350
September 1, 2006		403	$	39,200
October 1, 2006		374	$	36,000
November 1, 2006		189	$	18,000
December 1, 2006		11	$	1,000
January 1, 2007		62	$	6,000
February 1, 2007		217	$	21,000
March 1, 2007		109	$	10,000
August 1, 2007		30	$	3,000
September 1, 2007		10	$	1,000
October 1, 2007		49	$	5,000
November 1, 2007		28	$	3,000
December 1, 2007		19	$	2,000
January 1, 2008		265	$	29,000
March 1, 2008		113	$	15,000
April 1, 2008		258	$	40,000
May 1, 2008		419	$	50,000
June 1, 2008		329	$	40,000
July 1, 2008		497	$	61,000
August 1, 2008		294	$	35,000
September 1, 2008		347	$	40,000
October 1, 2008		196	$	22,000

Prior to December 1, 2008 Registrant was a publicly offered commodity pool and the Managing Owner was required to hold an interest in Registrant; therefore, sales of the Managing Owner’s interest qualified as unregistered sales of securities. From December 1, 2008 through September 30, 2012, all sales of interest qualify as unregistered sales due to Registrant offered as a private placement. The aggregate sale of Units in this time period was approximately 671,636.59 Units amounting to approximately $82,929,800.

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Item 3. Defaults Upon Senior Securities

None

Item 5. Other Information

None

Item 6. Exhibits:

3.1	Fifth Amended and Restated Declaration of Trust Agreement of World Monitor Trust III dated March 31, 2010 (incorporated by reference to Exhibit 13.1 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2009)
4.2	Subscription Requirements (annexed to the Prospectus as Exhibit B and incorporated by reference to Exhibit 4.2 to the Trust’s Post-Effective Amendment No. 3 on S-1 Registration Statement, File No. 333-119612, filed with the Commission on April 25, 2006)
4.3	Subscription instructions, Form of Subscription Agreement and Power of Attorney (annexed to the Prospectus as Exhibit C and incorporated by reference to Exhibit 4.3 to the Trust’s Post-Effective Amendment No. 3 on S-1 Registration Statement, File No. 333-119612, filed with the Commission on April 25, 2006)
4.4	Form of Privacy Notices of the Managing Owner dated December 2010 (incorporated by reference to Exhibit 4.4 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2010)
10.1	Form of Subscription Escrow Agreement (incorporated by reference to Exhibit 10.1 to the Trust’s Pre-Effective Amendment No. 2 on S-1 Registration Statement, File No. 333-119612, filed with the Commission on March 14, 2005)
10.2	Form of Advisory Agreement among WMT III Series G/J Trading Vehicle LLC, the Managing Owner and Graham Capital Management, L.P. (incorporated by reference to Exhibit 10.2 to the Trust’s Pre-Effective Amendment No. 2 on S-1 Registration Statement, File No. 333-119612, filed with the Commission on March 14, 2005)
10.3	Form of Advisory Agreement among World Monitor Trust III – Series J, the Managing Owner and Eagle Trading Systems Inc. (incorporated by reference to Exhibit 10.3 to the Trust’s Post-Effective Amendment No. 6 to Form S-1 Registration Statement, File No. 333-119612, filed with the Commission on April 10, 2007)
10.4	Form of Advisory Agreement among World Monitor Trust III – Series J, the Managing Owner and Ortus Capital Management (Cayman) Limited (incorporated by reference to Exhibit 10.4 to the Trust’s Post-Effective Amendment No. 8 to Form S-1 Registration Statement, File No. 333-119612, filed with the Commission on April 25, 2007)
10.5	Form of Customer Agreement between the WMT III Series G/J Trading Vehicle LLC and UBS Securities LLC (incorporated by reference to Exhibit 10.5 to the Trust’s Pre-Effective Amendment No. 2 on S-1 Registration Statement, File No. 333-119612, filed with the Commission on March 14, 2005)
10.6	Form of Customer Agreement between the World Monitor Trust III – Series J and UBS Securities LLC (incorporated by reference to Exhibit 10.6 to the Trust’s Post-Effective Amendment No. 6 to Form S-1 Registration Statement, File No. 333-119612, filed with the Commission on April 10, 2007)
10.7	Form of FX Prime Brokerage Agreement between UBS AG and WMT III Series G/J Trading Vehicle LLC (incorporated by reference to Exhibit 10.7 to the Trust’s Post-Effective Amendment No. 6 to Form S-1 Registration Statement, File No. 333-119612, filed with the Commission on April 10, 2007)
10.8	Form of ISDA Master Agreement between UBS AG and WMT III Series G/J Trading Vehicle LLC, Schedule to ISDA Master Agreement and Credit Support Annex to Schedule (incorporated by reference to Exhibit 10.8 to the Trust’s Post-Effective Amendment No. 6 to Form S-1 Registration Statement, File No. 333-119612, filed with the Commission on April 10, 2007)

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10.9	Form of FX Prime Brokerage Agreement between UBS AG and World Monitor Trust III – Series J (incorporated by reference to Exhibit 10.9 to the Trust’s Post-Effective Amendment No. 8 to Form S-1 Registration Statement, File No. 333-119612, filed with the Commission on April 25, 2007)
10.10	Form of ISDA Master Agreement between UBS AG and World Monitor Trust III – Series J, Schedule to ISDA Master Agreement and Credit Support Annex to Schedule (incorporated by reference to Exhibit 10.10 to the Trust’s Post-Effective Amendment No. 8 to Form S-1 Registration Statement, File No. 333-119612, filed with the Commission on April 25, 2007)
10.11	WMT III Series G/J Trading Vehicle LLC Organization Agreement (incorporated by reference to Exhibit 1.1 to the Trust’s Post-Effective Amendment No. 6 to Form S-1 Registration Statement, File No. 333-119612, filed with the Commission on April 10, 2007)
10.12	Form of Advisory Agreement among World Monitor Trust III – Series J, the Managing Owner and Graham Capital Management, L.P. (incorporated by reference to Exhibit 10.12 to Registrant’s Annual Report on Form 10- K for the year ended December 31, 2007)
10.13	Form of Services Agreement among World Monitor Trust III – Series J, the Managing Owner and Spectrum Global Fund Administration, L.L.C. (incorporated by reference to Exhibit 10.13 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007)
10.14	Advisory Agreement dated March 24, 2010 by and among, World Monitor Trust III – Series J, Kenmar Preferred Investments Corp. and Tudor Investment Corporation (incorporated by reference to Exhibit 10.9 to Registrant’s Form 8-K, File No. 000-51651, filed with the Commission on March 26, 2010)
10.15	Advisory Agreement dated March 24, 2010 by and among, World Monitor Trust III – Series J, Kenmar Preferred Investments Corp. and Paskewitz Asset Management, LLC (incorporated by reference to Exhibit 10.10 to Registrant’s Form 8-K, File No. 000-51651, filed with the Commission on March 26, 2010)
10.16	Amendment No. 1 dated September 29, 2010, with an effective date of October 1, 2010, to the Advisory Agreement dated November 28, 2008, by and among, World Monitor Trust III – Series J, Kenmar Preferred Investments Corp. and Eagle Trading Systems Inc. (incorporated by reference to Exhibit 10.16 to Registrant’s Form 8-K, File No. 000-51651, filed with the Commission on October 1, 2010)
10.17	Amendment No. 1 dated September 29, 2010, with an effective date of October 1, 2010, to the Advisory Agreement dated November 28, 2008, by and among, World Monitor Trust III – Series J, Kenmar Preferred Investments Corp. and Graham Capital Management, L.P. (incorporated by reference to Exhibit 10.17 to Registrant’s Form 8-K, File No. 000-51651, filed with the Commission on October 1, 2010)
10.18	Amendment No. 1 dated September 29, 2010, with an effective date of October 1, 2010, to the Advisory Agreement dated July 1, 2009, by and among, World Monitor Trust III – Series J, Kenmar Preferred Investments Corp. and Krom River Investment Management (Cayman) Limited and Krom River Trading AG (incorporated by reference to Exhibit 10.18 to Registrant’s Form 8-K, File No. 000-51651, filed with the Commission on October 1, 2010)
10.19	Amendment No. 1 dated September 29, 2010, with an effective date of October 1, 2010, to the Advisory Agreement dated March 24, 2010 by and among, World Monitor Trust III – Series J, Kenmar Preferred Investments Corp. and Paskewitz Asset Management, LLC (incorporated by reference to Exhibit 10.19 to Registrant’s Form 8-K, File No. 000-5161, filed with the Commission on October 1, 2010)
10.20	Amendment No. 1 dated September 29, 2010, with an effective date of January 1, 2011, to the Advisory Agreement dated May 28, 2009, by and among, World Monitor Trust III – Series J, Kenmar Preferred Investments Corp. and Ortus Capital Management Limited (incorporated by reference to Exhibit 10.20 to Registrant’s Form 8-K, File No. 000-5161, filed with the Commission on October 1, 2010)
10.21	Administrative Services Agreement entered into as of January 27, 2011, by and among GlobeOp Financials Services LLC and World Monitor Trust III – Series J (incorporated by reference to Exhibit 10.21 to Registrant’s Form 10-Q, filed with the Commission on August 15, 2011)
10.22	Middle/Back Office Services Agreement entered into as of January 27, 2011, by and between GlobeOp Financial Services LLC, World Monitor Trust III – Series J and Kenmar Preferred Investments Corp. (incorporated by reference to Exhibit 10.22 to Registrant’s Form 10-Q, filed with the Commission on August 15, 2011)

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14.1	Kenmar Preferred Investments Corp. Code of Ethics (adopted pursuant to Section 406 of Sarbanes Oxley Act of 2002) as of November 29, 2011 (incorporated by reference to Exhibit 14.1 to Registrant’s Annual Report to Form 10-K for the year ended December 31, 2011)
31.1	Certification pursuant to Exchange Act Rules 13a-14 and 15d-14 (filed herewith)
31.2	Certification pursuant to Exchange Act Rules 13a-14 and 15d-14 (filed herewith)
32.1	Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
32.2	Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
99.1	Notice to Unitholders regarding certain changes to the ownership and structure of the Registrant’s underlying managers (incorporated by reference to Exhibit 99.1 to Registrant’s Form 8-K, File No. 000-51651, filed with the Commission on August 17, 2012)
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

In accordance with Rule 406T of Regulation S-T, the XBRL related information in Exhibit 101 to the Quarterly Report on Form 10-Q shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be part of any registration statement or other document filed under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

[Remainder of page left blank intentionally.]

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

WORLD MONITOR TRUST III – SERIES J
By:	Kenmar Preferred Investments, L.P.,
	its Managing Owner
	By:	/s/ Kenneth A. Shewer	Date: November 14, 2012
	Name:	Kenneth A. Shewer
	Title:	Co-Chief Executive Officer
		(Principal Executive Officer)
	By:	/s/ David K. Spohr	Date: November 14, 2012
	Name:	David K. Spohr
	Title:	Senior Vice President and Director of Fund Administration
		(Principal Financial/Accounting Officer)

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EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Kenneth A. Shewer, certify that:

1. I have reviewed this Report on Form 10-Q of World Monitor Trust III – Series J (“Registrant”);

2. Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report;

3. Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of Registrant as of, and for, the periods presented in this Report;

4. Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as such term is defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting) as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for Registrant and we have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of Registrant’s disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and

d) Disclosed in this Report any change in Registrant’s internal control over financial reporting that occurred during Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, Registrant’s internal control over financial reporting; and

5. Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to Registrant’s auditors and the audit committee of Registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect Registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in Registrant’s internal control over financial reporting.

Date: November 14, 2012	By:	/s/ Kenneth A. Shewer
		Kenneth A. Shewer
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, David K. Spohr, certify that:

1. I have reviewed this Report on Form 10-Q of World Monitor Trust III – Series J (“Registrant”);

2. Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report;

3. Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of Registrant as of, and for, the periods presented in this Report;

4. Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as such term is defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting) as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for Registrant and we have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of Registrant’s disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and

d) Disclosed in this Report any change in Registrant’s internal control over financial reporting that occurred during Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, Registrant’s internal control over financial reporting; and

5. Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to Registrant’s auditors and the audit committee of Registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect Registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in Registrant’s internal control over financial reporting.

Date: November 14, 2012	By:	/s/ David K. Spohr
		David K. Spohr
		(Principal Financial/Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Kenneth A. Shewer, hereby certifies pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Quarterly Report on Form 10-Q of World Monitor Trust III – Series J for the period ended September 30, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Quarterly Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of Registrant.

/s/ Kenneth A. Shewer
Name:	Kenneth A. Shewer
Title:	Co-Chief Executive Officer
	(Principal Executive Officer)
	Kenmar Preferred Investments, L.P.,
	Managing Owner of
	World Monitor Trust III – Series J
Date:	November 14, 2012

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, David K. Spohr, hereby certifies pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Quarterly Report on Form 10-Q of World Monitor Trust III – Series J for the period ended September 30, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Quarterly Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of Registrant.

/s/ David K. Spohr
Name:	David K. Spohr
Title:	Senior Vice President and Director of Fund Administration
	(Principal Financial/Accounting Officer)
	Kenmar Preferred Investments, L.P.,
	Managing Owner of
	World Monitor Trust III – Series J
Date:	November 14, 2012

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Investment in Affiliated Investment Funds (Details 1) (USD $)	Oct. 31, 2012	Sep. 30, 2012
Summary of affiliated investment fund management and incentive fee
Total Capital Commitment	$ 111,809,404	$ 116,853,886
Net Asset Value	19,286,324	21,004,565
Remaining Capital Commitment	92,523,080	95,849,321
CTA Choice BEAM [Member]
Summary of affiliated investment fund management and incentive fee
Total Capital Commitment		16,862,488
Net Asset Value		4,665,081
Remaining Capital Commitment		12,197,407
CTA Choice BLKW [Member]
Summary of affiliated investment fund management and incentive fee
Total Capital Commitment		15,901,890
Net Asset Value		2,176,800
Remaining Capital Commitment		13,725,090
CTA Choice CRABL-PV [Member]
Summary of affiliated investment fund management and incentive fee
Total Capital Commitment		15,078,233
Net Asset Value		3,390,272
Remaining Capital Commitment		11,687,961
CTA Choice EAGL [Member]
Summary of affiliated investment fund management and incentive fee
Total Capital Commitment		7,981,377
Net Asset Value		2,113,291
Remaining Capital Commitment		5,868,086
CTA Choice EGLG [Member]
Summary of affiliated investment fund management and incentive fee
Total Capital Commitment		9,228,330
Net Asset Value		1,363,165
Remaining Capital Commitment		7,865,165
CTA Choice KRM [Member]
Summary of affiliated investment fund management and incentive fee
Total Capital Commitment		17,330,004
Net Asset Value		1,952,837
Remaining Capital Commitment		15,377,167
CTA Choice ORT [Member]
Summary of affiliated investment fund management and incentive fee
Total Capital Commitment		17,212,585
Net Asset Value		4,357,382
Remaining Capital Commitment		12,855,203
CTA Choice SAXN [Member]
Summary of affiliated investment fund management and incentive fee
Total Capital Commitment		17,258,979
Net Asset Value		985,737
Remaining Capital Commitment		$ 16,273,242

XML

Financial Highlights (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Class I Units [Member]
Per Unit Performance
Net asset value per Unit at beginning of period	110.60	122.28	117.27	127.97
Gain (loss) from operations:
Net realized and change in unrealized gain (loss)	2.17	1.95	(2.51)	0.02
Interest income	0.00	0.00	0.01	0.01
Dividend income	0.24	0.19	0.76	1.18
Expenses	(1.43)	(1.83)	(3.95)	(6.59)
Total gain (loss) from operations	0.98	0.31	(5.69)	(5.38)
Net assets value per Unit at end of period	111.58	122.59	111.58	122.59
Total Return	0.89%		(4.85%)
Total Return
Total return before incentive fees		0.30%		(3.61%)
Incentive fee		(0.05%)		(0.59%)
Total return after incentive fees		0.25%		(4.20%)
Ratios to average net asset values:
Total loss from operations	(4.22%)		(3.72%)
Net investment loss before incentive fees		(5.18%)		(4.93%)
Incentive fee		(0.05%)		(0.61%)
Net investment loss after incentive fees		(5.23%)		(5.54%)
Interest income	0.00%	0.01%	0.01%	0.01%
Dividend income	0.86%	0.61%	0.88%	1.25%
Incentive fees		0.05%		0.61%
Other Expenses		5.80%		6.19%
Total Expenses	5.08%	5.85%	4.61%	6.80%
Class II Units [Member]
Per Unit Performance
Net asset value per Unit at beginning of period	121.41	131.81	127.60	136.55
Gain (loss) from operations:
Net realized and change in unrealized gain (loss)	2.36	2.10	(2.77)	0.04
Interest income	0.00	0.00	0.01	0.01
Dividend income	0.27	0.20	0.84	1.26
Expenses	(1.00)	(1.33)	(2.64)	(5.08)
Total gain (loss) from operations	1.63	0.97	(4.56)	(3.77)
Net assets value per Unit at end of period	123.04	132.78	123.04	132.78
Total Return	1.34%		(3.57%)
Total Return
Total return before incentive fees		0.78%		(2.16%)
Incentive fee		(0.04%)		(0.60%)
Total return after incentive fees		0.74%		(2.76%)
Ratios to average net asset values:
Total loss from operations	(2.39%)		(1.93%)
Net investment loss before incentive fees		(3.24%)		(2.96%)
Incentive fee		(0.04%)		(0.61%)
Net investment loss after incentive fees		(3.28%)		(3.57%)
Interest income	0.00%	0.01%	0.01%	0.01%
Dividend income	0.86%	0.60%	0.89%	1.25%
Incentive fees		0.04%		0.61%
Other Expenses		3.85%		4.22%
Total Expenses	3.25%	3.89%	2.83%	4.83%

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Derivative Instruments and Associated Risks (Details 2) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Realized and unrealized gain on derivatives
Realized	$ 42,466	$ (1,072,328)	$ 91,195	$ 4,604,303
Change in unrealized	265,684	1,367,489	563,355	(3,351,807)
Total gain (loss) on investments	2,609,722	2,636,434	(2,217,885)	1,395,099
Derivative [Member]
Realized and unrealized gain on derivatives
Realized	0	22,564	0	5,699,195
Change in unrealized	$ 0	$ 453,865	$ 0	$ (5,007,647)

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Related Parties (Details Textual) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Related Party Transactions (Textual) [Abstract]
Expenses payable to the Managing Owner and its affiliates	$ 56,564	$ 68,447

XML

Costs, Fees and Expenses (Tables)

9 Months Ended

Sep. 30, 2012

Costs, Fees and Expenses [Abstract]

Summary of management fee and incentive fee to trading advisor

	Prior to October 1, 2010
Trading Advisor*	Management Fee% (1)		Incentive Fee% (2)
Ortus		2.00		20.00
Eagle		2.00		25.00
Graham		2.50		25.00
GLC		2.00		25.00
Krom		2.00		25.00
Paskewitz		2.00		20.00
Crabel		1.00		25.00
Tudor		2.00		25.00

⁽¹⁾  The Management Fee is paid monthly at a rate equal to 1/12 of the indicated rate above of the net asset value of Series J accordance with the applicable advisory agreement.

⁽²⁾  The Incentive Fee is paid quarterly on the percentage indicated of new net high trading profits of Series J in accordance with the applicable advisory agreement.

Summary of affiliated investment fund management and incentive fee

Affiliated Investment Fund	Management Fee%		Incentive Fee%
BEAM		1.00		20.00
BLKW		1.00		25.00
CRABL-PV		1.00		25.00
EAGL		1.50		25.00
EGLG		2.00		25.00
GRM *		2.00		20.00
KRM		1.50		25.00
ORT		1.00		25.00
SAXN		0.00		25.00
TDRM*		2.00		20.00

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Subsequent Events (Details Textual) (USD $)	9 Months Ended
	Sep. 30, 2012	Oct. 31, 2012
Subsequent Events (Textual) [Abstract]
Estimated redemptions period	From October 1, 2012 through November 13, 2012
Estimated redemptions		$ 4,369,143

XML

Costs, Fees and Expenses (Details 1)	1 Months Ended	3 Months Ended
	Dec. 31, 2011	Dec. 31, 2011
BEAM [Member]
Summary of affiliated investment fund management and incentive fee
Management Fee % Paid to Trading Advisor	1.00%
Incentive Fee % Paid to Trading Advisor		20.00%
BLKW [Member]
Summary of affiliated investment fund management and incentive fee
Management Fee % Paid to Trading Advisor	1.00%
Incentive Fee % Paid to Trading Advisor		25.00%
CRABL-PV [Member]
Summary of affiliated investment fund management and incentive fee
Management Fee % Paid to Trading Advisor	1.00%
Incentive Fee % Paid to Trading Advisor		25.00%
EAGL [Member]
Summary of affiliated investment fund management and incentive fee
Management Fee % Paid to Trading Advisor	1.50%
Incentive Fee % Paid to Trading Advisor		25.00%
EGLG [Member]
Summary of affiliated investment fund management and incentive fee
Management Fee % Paid to Trading Advisor	2.00%
Incentive Fee % Paid to Trading Advisor		25.00%
GRM [Member]
Summary of affiliated investment fund management and incentive fee
Management Fee % Paid to Trading Advisor	2.00%
Incentive Fee % Paid to Trading Advisor		20.00%
KRM [Member]
Summary of affiliated investment fund management and incentive fee
Management Fee % Paid to Trading Advisor	1.50%
Incentive Fee % Paid to Trading Advisor		25.00%
ORT [Member]
Summary of affiliated investment fund management and incentive fee
Management Fee % Paid to Trading Advisor	1.00%
Incentive Fee % Paid to Trading Advisor		25.00%
SAXN [Member]
Summary of affiliated investment fund management and incentive fee
Management Fee % Paid to Trading Advisor	0.00%
Incentive Fee % Paid to Trading Advisor		25.00%
TDRM [Member]
Summary of affiliated investment fund management and incentive fee
Management Fee % Paid to Trading Advisor	2.00%
Incentive Fee % Paid to Trading Advisor		20.00%

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Administrator (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Administrator (Textual) [Abstract]
Administration fees of Series J paid	$ 38,721	$ 91,807	$ 127,531	$ 260,926

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Derivative Instruments and Associated Risks (Details Textual) (USD $)	Sep. 30, 2012 Contract	Dec. 31, 2011 Contract	Sep. 30, 2011 Contract
Derivative Instruments and Associated Risks (Textual) [Abstract]
Derivative contracts held	0
Derivative Instruments and Associated Risks (Additional Textual) [Abstract]
Segregated assets	0	0
Secure assets to foreign futures trading	0	0
Number of open future or forward currency contracts	0
Closed futures contracts [Member]
Derivative Instruments and Associated Risks (Textual) [Abstract]
Derivative contracts held		80,403	20,710
Closed options on futures contracts [Member]
Derivative Instruments and Associated Risks (Textual) [Abstract]
Derivative contracts held	0	4,924	1,283
Forward Currency Contracts [Member]
Derivative Instruments and Associated Risks (Textual) [Abstract]
Average monthly notional value		1,563,820,503	1,525,711,138

XML

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2012

Summary of Significant Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Basis of Accounting

The condensed statements of financial condition, including the condensed schedules of investments, as of September 30, 2012, the condensed statements of operations for the three months ended September 30, 2012 (“Third Quarter 2012”) and for the nine months ended September 30, 2012 (“Year-To-Date 2012”) and for the three months ended September 30, 2011 (“Third Quarter 2011”) and for the nine months ended September 30, 2011 (“Year-To-Date 2011”), and the condensed statements of changes in unitholders capital for the Year-To-Date 2012 and Year-To-Date 2011, are unaudited.

In the opinion of the Managing Owner, the financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial position of Series J as of September 30, 2012 and the results of its operations for the interim period Third Quarter 2012, Third Quarter 2011, Year-To-Date 2012 and Year-To-Date 2011. The operating results for these interim periods may not be indicative of the results expected for a full year.

The financial statements of Series J are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Such principles require the Managing Owner to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in Series J’s annual report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2011.

Commodity futures, options and foreign exchange forward contracts are reflected in the accompanying financial statements on a trade date basis. Net unrealized gain or loss on open contracts (the difference between contract trade price and market price) are offset when reflected in the financial statements since the contracts are executed with the same counterparty under a master netting agreement. The market value of futures (exchange-traded) contracts is based upon the closing quotation on the various futures exchanges on which the contract is traded. The values which will be used by Series J for open forward and option positions will be provided by its administrator, who obtains market quotes from independent data vendors and third parties. Any change in net unrealized gain or loss during the current period is reported in the statements of operations. Realized gains and losses on transactions are recognized in the period in which the contracts are closed. Brokerage commissions include other trading fees and are charged to expense when incurred.

The weighted average number of Units outstanding was computed for purposes of disclosing net income (loss) per weighted average Unit. The weighted average number of Units is equal to the number of Units outstanding at year end, adjusted proportionately for Units subscribed and redeemed based on their respective time outstanding during the period.

Investments in securities consist of publicly-traded mutual funds. Publicly-traded mutual funds are valued using the net asset value on the last day of the period. Realized gains and losses from investment securities are determined using the identified cost method. Any change in net unrealized gain or loss from the preceding period is reported in the condensed statements of operations. Dividends are recorded on the ex-dividend date.

Series J has elected not to provide a statement of cash flows since substantially all of Series J’s investments are highly liquid and carried at fair value, Series J has little or no debt and a condensed statements of changes in unitholders’ capital (net asset value) is provided.

Consistent with standard business practices in the normal course of business, Series J has provided general indemnifications to the Managing Owner and others when they act, in good faith, in the best interests of Series J. Series J is unable to develop an estimate of the maximum potential amount of future payments that could potentially result from any hypothetical future claim, but expects the risk of having to make any payments under these general business indemnifications to be remote.

Series J accounts for financial assets and liabilities using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels: quoted market prices in active markets for identical assets and liabilities (Level 1), inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly (Level 2), and unobservable inputs for the asset or liability (Level 3).

Series J considers its investments in publicly-traded mutual funds, prices for exchange traded commodity futures and options contracts to be based on quoted prices in active markets for identical assets (Level 1). The values of forwards, swaps and certain options contracts for which market quotations are not readily available are priced by independent third party data vendors or pricing services who derive fair values for those assets from observable inputs (Level 2). In determining the level, Series J considers the length of time until the investment is redeemable, including notice and lock-up periods or any other restriction on the disposition of the investment. Series J also considers the nature of the portfolios of the underlying Affiliated Investment Funds and their ability to liquidate their underlying investments. Series J has the ability to redeem its investments at the reported net asset valuation as of the measurement date (see Note 7) and classified its investments in Affiliated Investment Funds as Level 2 using the fair value hierarchy. The Level 2 investments in Affiliated Investment Funds are valued at the net asset value as reported by the underlying investment funds’ capital balance using the expedient method. The carrying value of the underlying investments in Affiliated Investment Funds is at fair value. There are no Level 3 investments on September 30, 2012 or December 31, 2011, nor any portion of the interim periods.

The following table summarizes the assets measured at fair value using the fair value hierarchy:

September 30, 2012	Level 1		Level 2		Level 3		Total
Assets:
Investment in Affiliated Investment Funds, at fair value	$	0	$	21,004,565	$	0	$	21,004,565
Investment in securities, at fair value	$	76,087,999	$	0	$	0	$	76,087,999
December 31, 2011	Level 1		Level 2		Level 3		Total
Assets:
Investment in Affiliated Investment Funds, at fair value	$	0	$	8,207,427	$	0	$	8,207,427
Investment in securities, at fair value	$	62,015,348	$	0	$	0	$	62,015,348

B. Cash and Cash Equivalents

Cash and cash equivalents represents amounts deposited with clearing brokers and a bank, a portion of which is restricted for purposes of meeting margin requirements, which typically ranged from 0% to 35% of the notional amounts of the derivatives traded. A substantial portion of the cash deposited with a bank is deposited in an off-shore sweep account facility daily. Series J receives interest on all cash balances held by the clearing brokers and bank at prevailing rates.

Series J has cash and investments in securities on deposit with financial institutions and in broker trading accounts which may exceed the insured balance limits. In the event of a financial institution’s insolvency, recovery of cash and investments in securities on deposit may be limited to account insurance or other protection afforded such deposits.

C. Income Taxes

Series J is treated as a partnership for U.S. federal income tax purposes. As such, Series J is not required to provide for, or pay, any U.S. federal or state income taxes. Income tax attributes that arise from its operations are passed directly to the individual Unitholders including the Managing Owner. Series J may be subject to other state and local taxes in jurisdictions in which it operates.

Series J recognizes tax benefits or expenses of uncertain tax positions in the year such determination is made when the positions are “more likely than not” to be sustained assuming examination by tax authorities. The Managing Owner has reviewed Series J’s tax positions for all open years and concluded that no provision for unrecognized tax benefits or expense is required in these financial statements. Series J has elected an accounting policy to classify interest and penalties related to unrecognized tax benefits as interest or other expense. The 2009 through 2011 tax years generally remain subject to examination by U.S. federal and most state tax authorities.

D. Profit and Loss Allocations and Distributions

Income and expenses (excluding the service fee and upfront sales commissions further discussed in Note 5) are allocated pro rata to the Class I Units and Class II Units monthly based on the Units outstanding during the month. Class I Units are charged with the service fee and upfront sales commission applicable to such Units. Distributions (other than redemptions of Units) may be made at the sole discretion of the Managing Owner on a pro rata basis in accordance with the respective capital balances of the Unitholders. The Managing Owner has not and does not presently intend to make any distributions.

E. Offering Costs

In accordance with the Trust’s Agreement and Prospectus, the Managing Owner is responsible for the payment of all offering expenses of Series J incurred after the Initial Offering Period (“ongoing offering costs”), provided that the amount of such ongoing offering costs paid by the Managing Owner are subject to reimbursement by the Trust, without interest, in up to 36 monthly payments during each of the first 36 months following the month in which such expenses were paid by the Managing Owner. Through September 30, 2012, the Managing Owner has paid $2,587,895 in ongoing offering costs, of which $2,530,733 has been allocated to Series J.

Ongoing offering costs incurred through November 30, 2006 in the amount of $599,062 will not be reimbursed to the Managing Owner. For the period December 1, 2006 through September 30, 2012, the Managing Owner incurred and Series J was allocated ongoing offering costs in the amount of $1,951,276 and $1,931,670, respectively. Of the $1,931,670 allocated to Series J, $635,144 will not be reimbursable to the Managing Owner.

Series J will only be liable for payment of ongoing offering costs on a monthly basis. If Series J terminates prior to completion of payment of such amounts to the Managing Owner, the Managing Owner will not be entitled to any additional payments, and Series J will have no further obligation to the Managing Owner.

During the Third Quarter 2012, Third Quarter 2011, Year-To-Date 2012 and Year-To-Date 2011, Series J’s allocable portion of ongoing offering costs did not exceed 0.50% per annum of the net asset value of Series J.

F. Interest Income and Dividend Income

Interest is recorded on an accrual basis. Dividends are recorded on the ex-dividend date.

XML

Costs, Fees and Expenses (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Costs, Fees and Expenses (Textual) [Abstract]
Management Fees, Amount Paid	$ 311,755	$ 549,567	$ 1,020,929	$ 1,636,137
Incentive fees paid	$ 360,993	$ 68,928	$ 597,064	$ 916,827

XML

Organization (Details Textual) (USD $)	9 Months Ended
	Sep. 30, 2012	Sep. 28, 2004 Series
Organization (Textual) [Abstract]
Maximum offered units	$ 375,000,000
Organization (Additional Textual) [Abstract]
Number of series		4
Minimum aggregate initial subscription	5,000
Certain benefit plan investors subscription	2,000
Minimum purchase for any single series	500
Minimum initial investment for new subscribers	25,000
Minimum initial investment for benefit plan investors	10,000
Minimum additional subscription amount for current investors	5,000
Gross proceeds of initial offering	31,024,443
Decline in net asset value of a Series, after adjustments for distributions, contributions and redemptions	50.00%
Minimum percentage of decline in affiliated investment fund	40.00%
Minimum aggregate net asset value of Series J	10,000,000
Class I Units [Member]
Organization (Textual) [Abstract]
Maximum offered units	281,250,000
Redemption charge as percentage of net asset value per Unit	0.00%
Class II Units [Member]
Organization (Textual) [Abstract]
Maximum offered units	$ 93,750,000
Redemption charge as percentage of net asset value per Unit	0.00%
EAGL [Member]
Organization (Textual) [Abstract]
Percentage of allocation after split	50.00%
EGLG [Member]
Organization (Textual) [Abstract]
Percentage of allocation after split	50.00%

XML

Subsequent Events (Tables)

9 Months Ended

Sep. 30, 2012

Subsequent Events [Abstract]

Schedule of capital commitments

	Total Capital Commitment October 30, 2012		Net Asset Value October 30, 2012		Remaining Capital Commitment October 30, 2012
Affiliated Investment Funds	$	111,809,404	$	19,286,324	$	92,523,080

XML

Derivative Instruments and Associated Risks (Details) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Fair value of derivative contracts on a gross basis
Total gross fair value of derivatives, assets	$ 0	$ 648,171
Total gross fair value of derivatives, liabilities	0	(648,171)
Fair value of derivatives, net	0	0
Forward Currency Contracts [Member]
Fair value of derivative contracts on a gross basis
Total gross fair value of derivatives, assets	0	648,171
Total gross fair value of derivatives, liabilities	0	(648,171)
Fair value of derivatives, net	$ 0	$ 0

XML

Summary of Significant Accounting Policies (Details) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Summary of assets measured at fair value
Investment in Affiliated Investment Funds, at fair value	$ 21,004,565	$ 8,207,427
Investment in securities, at fair value	76,087,999	62,015,348
Level 1 [Member]
Summary of assets measured at fair value
Investment in Affiliated Investment Funds, at fair value	0	0
Investment in securities, at fair value	76,087,999	62,015,348
Level 2 [Member]
Summary of assets measured at fair value
Investment in Affiliated Investment Funds, at fair value	21,004,565	8,207,427
Investment in securities, at fair value	0	0
Level 3 [Member]
Summary of assets measured at fair value
Investment in Affiliated Investment Funds, at fair value	0	0
Investment in securities, at fair value	$ 0	$ 0

XML

Summary of Significant Accounting Policies (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Summary of Significant Accounting Policies (Textual) [Abstract]
Minimum percentage of notional amounts of derivatives traded restricted for use			0.00%
Maximum percentage of notional amounts of derivatives traded restricted for use			35.00%
Number of monthly payments subject to reimbursement by Trust, without interest			36 months
Ongoing offering costs	$ 2,587,895		$ 2,587,895
Ongoing offering costs allocated to Series J	2,530,733		2,530,733
Ongoing offering costs incurred not be reimbursed to the Managing Owner	599,062		599,062
Managing Owner incurred ongoing offering costs			1,951,276
Series J allocated ongoing offering costs			1,931,670
Offering costs not be reimbursable to the Managing Owner			$ 635,144
Maximum allocable portion of ongoing offering costs	0.50%	0.50%	0.50%	0.50%

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Organization

9 Months Ended

Sep. 30, 2012

Organization [Abstract]

ORGANIZATION

Note 1. ORGANIZATION

A. General Description of the Trust

World Monitor Trust III (the “Trust”) is a business trust organized under the laws of Delaware on September 28, 2004. The Trust consisted of four separate and distinct series (“Series”): Series G, H, I and J. Series G, H, I and J commenced trading operations on December 1, 2005. As of December 31, 2007, Series G, H and I were no longer offered and had been dissolved. Series J will continue to exist unless terminated pursuant to the provisions of Article XIII of the Trust’s Fifth Amended and Restated Declaration of Trust and Trust Agreement (the “Trust Agreement”). The assets of each Series have been segregated from those of the other Series, separately valued and independently managed, and separate financial statements have been prepared for each Series. Each Series was formed to engage in the speculative trading of a diversified portfolio of futures, forward and options contracts and may, from time to time, engage in cash and spot transactions. The fiscal year end of Series J is December 31.

Effective July 1, 2012, Kenmar Preferred Investments Corp. changed its name and form of entity to Kenmar Preferred Investments, L.P. (“Kenmar Preferred” or the “Managing Owner”). Kenmar Preferred or Managing Owner refers to either Kenmar Preferred Investments Corp. or Kenmar Preferred Investments, L.P., depending on the applicable period discussed. As the Managing Owner of the Trust and of each Series, Kenmar Preferred conducts and manages the business of the Trust and each Series.

Series J allocated its net assets amongst the following Trading Advisor’s managed accounts (each a “Managed Account” and collectively, the “Managed Accounts”), with such allocations being re-balanced quarterly.

Managed Account	Trading Program	Start Date	Termination Date
Eagle Trading Systems Inc. (“Eagle”)	Momentum Program	01/01/08	04/30/11
Ortus Capital Management Limited (“Ortus”)	Major Currency Program	01/01/08	12/31/11
Graham Capital Management, L.P. (“Graham”)	K4D-15V Program	01/01/08	12/31/10
GLC Ltd. (“GLC”)	Behavioral Trend and Directional Programs	07/01/09	03/31/10
Krom River Investment Management (Cayman) Limited (“Krom”)	Commodity Diversified Program	07/01/09	09/30/11
Crabel Capital Management, LLC (“Crabel”)	Two Plus Program	07/01/09	08/31/11
Tudor Investment Corporation (“Tudor”)	Tudor Quantitative Commodities Strategy	04/01/10	10/31/11
Paskewitz Asset Management, LLC (“Paskewitz”)	Contrarian Stock Index Program	04/01/10	12/31/11

A. General Description of the Trust (Continued)

Eagle, together with Ortus, Graham, GLC, Krom, Crabel, Tudor and Paskewitz, are each referred to herein as a “Trading Advisor” and collectively referred to herein as the “Trading Advisors”.

Effective January 1, 2011, Series J began transitioning its investments in direct Managed Accounts to accessing the Trading Advisors indirectly through segregated series of CTA Choice Fund LLC (“CTA Choice”), a Delaware limited liability company organized in series.

Affiliated Investment Fund	Trading Advisor	Trading Program	Start Date	Termination Date
CTA Choice GRM (“GRM”)*	Graham	K4D-15V Program	01/1/11	12/31/11
CTA Choice EAGL (“EAGL”)*	Eagle	Eagle Momentum Program	05/1/11
CTA Choice CRABL-PV (“CRABL-PV”)*	Crabel	Two Plus Program	09/1/11
CTA Choice KRM (“KRM”)*	Krom	Commodity Diversified Program	10/1/11
CTA Choice TDRM (“TDRM”)*	Tudor	Tudor Quantitative Commodities Strategy	11/1/11	12/31/11
CTA Choice EGLG (“EGLG”)**	Eagle	Eagle Global Program	01/1/12
CTA Choice ORT (“ORT”)*	Ortus	Major Currency Program	01/1/12
CTA Choice SAXN (“SAXN”)	Saxon Investment Corporation	Saxon Aggressive Diversified Program	01/1/12
CTA Choice BLKW (“BLKW”)	Blackwater Capital Management, LLC	Blackwater Global Program	01/1/12
CTA Choice BEAM (“BEAM”)	BEAM Bayesian Efficient Asset Management, LLC	BEAM Multi-Strategy Program	01/1/12

* Any loss carry forward from Series J’s Managed Account was transferred over to Series J’s member interest in the corresponding Affiliated Investment Fund.

** Effective January 1, 2012, the allocation to EAGL was split with a 50% allocation to EAGL and a 50% allocation EGLG.

GRM, together with EAGL, CRABL-PV, KRM, TDRM, EGLG, ORT, SAXN, BLKW and BEAM are each referred to herein as an “Affiliated Investment Fund” and collectively referred to herein as the “Affiliated Investment Funds.”

The Managing Owner may terminate any current Managed Account agreement with a Trading Advisor or select new Trading Advisors including investments in Affiliated Investment Funds, from time-to-time, in its sole discretion, in order to achieve the goals of Series J.

Effective July 1, 2012, ClariTy Managed Account & Analytics Platform LLC changed its name and form of entity to ClariTy Managed Account & Analytics Platform, L.P. (“ClariTy”). ClariTy refers to either ClariTy Managed Account & Analytics Platform LLC or ClariTy Managed Account & Analytics Platform, L.P., depending on the applicable period discussed. ClariTy, an affiliate of Kenmar Preferred, serves as the managing member for CTA Choice. CTA Choice consists of multiple segregated series, each established pursuant to a separate Certificate of Designation prepared by CTA Choice’s managing member. Each series maintains separate and distinct records. The assets associated with each series, and the liabilities and obligations incurred with respect to a particular series are enforceable only against the assets of that series.

Effective July 1, 2012, Kenmar Global Investment Management LLC changed its name and form of entity to Kenmar Global Investment Management, L.P. (“Asset Allocator”). Asset Allocator refers to either Kenmar Global Investment Management LLC or Kenmar Global Investment Management, L.P., depending on the applicable period discussed. The Asset Allocator, an affiliate of the Managing Owner, is the Asset Allocator of CTA Choice. Pursuant to the Asset Allocation Agreements between the Managing Owner, the Asset Allocator, and each interestholder, the Asset Allocator determines the trading level of each interestholder’s assets and reallocates among the separate series of CTA Choice as agreed upon with the Trading Advisors. While the Asset Allocator receives no fees for such services from Series J, the Asset Allocator is paid management and incentive fees directly from the interestholders pursuant to each interestholder’s Asset Allocation Agreement.

B. Regulation

As a registrant with the Securities and Exchange Commission (“SEC”), the Trust and each Series are subject to the regulatory requirements under the Securities Act of 1933 and the Securities Exchange Act of 1934.

As a commodity pool, the Trust and each Series are subject to the regulations of the Commodity Futures Trading Commission (“CFTC”), an independent agency of the U.S. government which regulates most aspects of the commodity futures industry; rules of the National Futures Association, an industry self-regulatory organization; and the requirements of the various commodity exchanges where the Trust through the Managed Accounts executes transactions.

C. The Offering

Up to $281,250,000 Series J, Class I and $93,750,000 Series J, Class II Units (the “Units”) are being offered (totaling $375,000,000) (“Subscription Maximum”). Units are being offered to investors who meet certain established suitability standards. Prior to November 30, 2008, investments required a minimum aggregate initial subscription of $5,000 and $2,000 for certain Benefit Plan Investors (including IRAs), although the minimum purchase for any single series was $500.

Effective November 30, 2008, the Board of Directors of the Managing Owner of Series J determined that the Units would no longer be publicly offered and would only be available on a private placement basis to “accredited investors” pursuant to Regulation D under the Securities Act of 1933.

For new subscribers, the minimum initial investment is $25,000 ($10,000 for benefit plan investors (including IRAs)). The minimum additional subscription amount for current investors is $5,000.

Series J completed its initial offering on December 1, 2005 with gross proceeds of $31,024,443. Until the Subscription Maximum for Series J is reached, Series J’s Units will continue to be offered on a monthly basis at the then current net asset value per Unit.

D. Exchanges, Redemptions and Termination

Redemptions from Series J are permitted on a monthly basis with no redemption charges applicable to either Class I or Class II units.

In the event that the net asset value of a Series, after adjustments for distributions, contributions and redemptions, declines by 50% or more since the commencement of trading activities or the first day of a fiscal year, the Series will automatically terminate.

Should the Managing Owner make a determination that Series J’s aggregate net assets in relation to its operating expenses make it unreasonable or imprudent to continue the business of Series J, or, in the exercise of its reasonable discretion, if the aggregate net asset value of Series J as of the close of business on any business day declines below $10 million, the Managing Owner may dissolve Series J.

In addition, in the event that the Net Asset Value of the allocated assets, after adjustments for distributions, contributions and redemptions, for an Affiliated Investment Fund declines by 40% or more since the commencement of trading activities or the first day of a fiscal year, that Affiliated Investment Fund will automatically terminate.

E. Foreign Currency Transactions

Series J’s functional currency is the U.S. dollar; however, it transacts business in currencies other than the U.S. dollar. Assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the rates in effect at the date of the statements of financial condition. Income and expense items denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the rates in effect during the period. Gains and losses resulting from the translation to U.S. dollars are reported in operations currently under the caption realized in the statements of operations.

F. Investments in Affiliated Investment Funds

The investments in the Affiliated Investment Funds are reported in Series J’s condensed statements of financial condition. Fair value ordinarily is the value determined for the Affiliated Investment Funds in accordance with the fund’s valuation policies and reported at the time of Series J’s valuation by the management of the funds. Generally, the fair value of Series J’s investments in the Affiliated Investment Funds represents the Net Asset Value which is the amount that Series J could reasonably expect to receive from the funds if Series J’s investments were redeemed at the time of the valuation, based on information reasonably available at the time the valuation is made and that Series J believes to be reliable.

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Related Parties (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Summary of expenses incurred by Series J for services performed by Managing Owner and its affiliates
Management fees to Managing Owner	$ 146,834	$ 189,882	$ 477,864	$ 574,657
ClariTy Managed Account fees to affiliate	0	94,604	0	287,328
Managing Owner interest on investment funds payable	280,093	62,760	578,933	382,673
Operating expenses	43,085	68,447	173,194	148,686
Total	$ 470,012	$ 415,693	$ 1,229,991	$ 1,393,344

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Investment in Affiliated Investment Funds (Details Textual)	9 Months Ended
	Sep. 30, 2012
Investment in Affiliated Investment Funds (Textual) [Abstract]
Percentage of net asset value represents investments in affiliated investment funds	18.50%
Minimum period of redemption notice of affiliated investment funds	1 day
Maximum period of redemption notice of affiliated investment funds	5 days

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Condensed Statements of Financial Condition (USD $)	Sep. 30, 2012	Dec. 31, 2011
ASSETS
Cash and cash equivalents (see Note 2)	$ 19,752,044	$ 69,314,843
Dividend receivable	0	50,972
Due from Affiliated Investment Funds	0	7,020,672
Investment in Affiliated Investment Funds, at fair value (cost $21,143,635 and $8,401,176 at September 30, 2012 and December 31, 2011, respectively)	21,004,565	8,207,427
Investment in securities, at fair value (cost $75,524,644 and $62,015,348 at September 30, 2012 and December 31, 2011, respectively)	76,087,999	62,015,348
Total assets	116,844,608	146,609,262
LIABILITIES
Accrued expenses payable	179,670	148,364
Interest payable to Managing Owner	50,409	0
Trading Advisors' incentive fees payable	0	180,647
Trading Advisors' management fees payable	0	35,884
Offering costs payable	30,130	25,016
Service fees payable (see Note 5)	174,321	201,379
Redemptions payable	2,886,254	795,582
Subscriptions received in advance	0	679,000
Total liabilities	3,320,784	2,065,872
UNITHOLDERS' CAPITAL (Net Asset Value)
Total unitholders' capital (Net Asset Value)	113,523,824	144,543,390
Total liabilities and unitholders' capital	116,844,608	146,609,262
Class I Units
UNITHOLDERS' CAPITAL (Net Asset Value)
Unitholders' Units	100,642,041	126,022,812
Managing Owner's Units - none and none Units outstanding at September,30, 2012 and December,31, 2011, respectively	0	0
NET ASSET VALUE PER UNIT
Net asset value per unit	111.58	117.27
Class II Units
UNITHOLDERS' CAPITAL (Net Asset Value)
Unitholders' Units	12,881,783	18,520,578
Managing Owner's Units - none and none Units outstanding at September,30, 2012 and December,31, 2011, respectively	$ 0	$ 0
NET ASSET VALUE PER UNIT
Net asset value per unit	123.04	127.60

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Derivative Instruments and Associated Risks (Details 1) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Trading revenue of derivatives by instrument type
Total trading revenue of derivatives by instrument type	$ 0	$ 476,429	$ 0	$ 691,548
Commodities contracts [Member]
Trading revenue of derivatives by instrument type
Total trading revenue of derivatives by instrument type	0	(783,407)	0	(643,715)
Currencies contracts [Member]
Trading revenue of derivatives by instrument type
Total trading revenue of derivatives by instrument type	0	9,642	0	454,736
Energy contracts [Member]
Trading revenue of derivatives by instrument type
Total trading revenue of derivatives by instrument type	0	(459,686)	0	(175,217)
Interest rate contracts [Member]
Trading revenue of derivatives by instrument type
Total trading revenue of derivatives by instrument type	0	1,740,029	0	1,362,798
Metals contracts [Member]
Trading revenue of derivatives by instrument type
Total trading revenue of derivatives by instrument type	0	1,290,445	0	1,096,870
Stock indices contracts [Member]
Trading revenue of derivatives by instrument type
Total trading revenue of derivatives by instrument type	0	(1,183,486)	0	(1,798,314)
Purchases options on futures contracts [Member]
Trading revenue of derivatives by instrument type
Total trading revenue of derivatives by instrument type	0	(428,520)	0	(237,784)
Written options on futures contracts [Member]
Trading revenue of derivatives by instrument type
Total trading revenue of derivatives by instrument type	0	259,780	0	22,924
Forward currency contracts [Member]
Trading revenue of derivatives by instrument type
Total trading revenue of derivatives by instrument type	$ 0	$ 31,632	$ 0	$ 609,250

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Condensed Statements of Operations (Unaudited) (USD $)	3 Months Ended				9 Months Ended
	Sep. 30, 2012		Sep. 30, 2011		Sep. 30, 2012		Sep. 30, 2011
REVENUE
Realized	$ 42,466		$ (1,072,328)		$ 91,195		$ 4,604,303
Change in unrealized	265,684		1,367,489		563,355		(3,351,807)
Dividend income	252,092		230,009		852,599		1,418,433
Interest income	1,204		4,387		8,889		9,470
Net gain from trading investments	561,446		529,557		1,516,038		2,680,399
Net realized (loss) on investments in Affiliated Investment Funds	(3,858,155)		0		(3,788,602)		0
Net change in unrealized appreciation / depreciation on investments in Affiliated Investment Funds	5,906,431		2,106,877		54,679		(1,285,300)
Net gain (loss) from investments in Affiliated Investment Funds	2,048,276		2,106,877		(3,733,923)		(1,285,300)
Total gain (loss) on investments	2,609,722		2,636,434		(2,217,885)		1,395,099
EXPENSES
Interest expenses	0		97		1,440		97
Brokerage commissions	0		102,281		0		354,166
Management fees to Managing Owner	146,833		189,882		477,864		574,657
ClariTy Managed Account fees (see Note 4)	0		94,604		0		287,328
Managing Owner interest earned on investment funds (see Note 4)	280,094		62,760		578,933		382,673
Trading advisors' management fees	0		334,190		0		1,152,631
Trading advisors' incentive fees	0		68,928		0		915,027
Services fees - Class I Units (see Note 5)	487,425		646,408		1,532,354		2,004,634
Sales commission	297,258		379,763		977,681		1,149,313
Offering costs	66,356		82,886		207,224		252,843
Operating expenses	156,318		205,217		472,660		590,421
Total expenses	1,434,284	[1]	2,167,016	[1]	4,248,156	[1]	7,663,790	[1]
Net income (loss)	$ 1,175,438		$ 469,418		$ (6,466,041)		$ (6,268,691)
Class I Units
NET INCOME (LOSS) PER WEIGHTED AVERAGE UNITHOLDER AND MANAGING OWNER UNIT
Net income (loss) per weighted average unitholder and Managing Owner Unit	1.05		0.31		(5.93)		(5.46)
Weighted average number of units outstanding	931,277.000		1,076,821.000		993,027.000		1,058,124.000
Class II Units
NET INCOME (LOSS) PER WEIGHTED AVERAGE UNITHOLDER AND MANAGING OWNER UNIT
Net income (loss) per weighted average unitholder and Managing Owner Unit	1.85		0.95		(4.76)		(3.61)
Weighted average number of units outstanding	106,475.000		144,146.000		121,932.000		136,702.000

[1] Brokerage commissions, ClariTy Managed Account fees, Trading Advisors' management and incentive fees, and administrator fees which were paid directly and are a part of operating expenses during 2011, are now paid indirectly and are included in net gain (loss) from investments in Affiliated Investment Funds, starting January 1, 2012.

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Service Fees and Sales Commissions (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Service Fee - Class I Units
Monthly 1/12 of 2% service fee calculated on all Class I Units	$ 527,702	$ 663,457	$ 1,721,577	$ 2,016,634
Initial up-front 2% sales commissions	0	112,088	23,704	369,604
Series J's recapture on 1/12 of 2% service fee on select units and recapture of the service fee on units held with no CSA	(40,278)	(129,137)	(212,927)	(381,604)
Total	$ 487,425	$ 646,408	$ 1,532,354	$ 2,004,634

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Related Parties (Tables)

9 Months Ended

Sep. 30, 2012

Related Parties [Abstract]

Summary of expenses incurred by Series J for services performed by Managing Owner and its affiliates

	Three months ended September 30,				Nine months ended June 30,
	2012		2011		2012		2011
Management fees to Managing Owner	$	146,834	$	189,882	$	477,864	$	574,657
ClariTy Managed Account fees to affiliate		0		94,604		0		287,328
Managing Owner interest on investment funds payable		280,093		62,760		578,933		382,673
Operating expenses		43,085		68,447		173,194		148,686
	$	470,012	$	415,693	$	1,229,991	$	1,393,344

(1) ClariTy Managed Account fees, which were paid directly to the Managing Owner during 2011, are now paid indirectly through its investments in Affiliated Investment Funds, starting January 1, 2012.

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Service Fees and Sales Commissions (Details Textual)	9 Months Ended
	Sep. 30, 2012	Oct. 31, 2010
Service Fees and Sale Commissions (Textual) [Abstract]
Service fee	2.00%
Initial commission	2.00%
Deduction for Series J recapture	2.00%
Deduction period of maximum units owned for Series J recapture	12 months
Selling agent's monthly sales commission	1.00%
Percentage of fees on units purchased by clients of Wells Fargo	0.30%	0.10%

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Investment in Affiliated Investment Funds (Tables)

9 Months Ended

Sep. 30, 2012

Investment in Affiliated Investment Funds [Abstract]

Summary of change in fair value of net asset value investments in Affiliated Investment Funds

	Net asset value December 31, 2011		Purchases		(Loss)			Redemptions			Net asset value September 30, 2012
Investment in Affiliated Investment Funds	$	8,207,427	$	80,671,134	$	(3,733,923	)	$	(64,140,073	)	$	21,004,565

	Net asset value December 31, 2010		Purchases		(Loss)			Redemptions			Net asset value September 30, 2011
Investment in Affiliated Investment Funds	$	0	$	30,415,675	$	(1,285,300	)	$	(16,458,406	)	$	12,671,969

Summary of the capital commitment split between net asset value (amount funded) and remaining capital commitment

	Total Capital Commitment September 30, 2012		Net Asset Value September 30, 2012		Remaining Capital Commitment September 30, 2012
CTA Choice BEAM	$	16,862,488	$	4,665,081	$	12,197,407
CTA Choice BLKW		15,901,890		2,176,800		13,725,090
CTA Choice CRABL-PV		15,078,233		3,390,272		11,687,961
CTA Choice EAGL		7,981,377		2,113,291		5,868,086
CTA Choice EGLG		9,228,330		1,363,165		7,865,165
CTA Choice KRM		17,330,004		1,952,837		15,377,167
CTA Choice ORT		17,212,585		4,357,382		12,855,203
CTA Choice SAXN		17,258,979		985,737		16,273,242
Total	$	116,853,886	$	21,004,565	$	95,849,321

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Condensed Statements of Changes in Unitholders' Capital (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Unitholders' capital, beginning balance, units			1,219,742.316	1,161,140.410
Unitholders' capital, beginning balance			$ 144,543,390	$ 149,689,033
Additions			2,178,200	22,316,784
Additions, Units			18,500.885	175,843.990
Redemptions			(26,731,725)	(13,401,806)
Redemptions, Units			(231,133.365)	(106,510.258)
Transfers, Amount			0
Transfers, units			(408.668)
Net loss	1,175,438	469,418	(6,466,041)	(6,268,691)
Unitholders' capital, ending balance	113,523,824	152,335,320	113,523,824	152,335,320
Unitholders' capital, ending balance, units	1,006,701.168	1,230,474.142	1,006,701.168	1,230,474.142
Unitholders | Class I Units
Unitholders' capital, beginning balance, units			1,074,594.786	1,033,469.123
Unitholders' capital, beginning balance			126,022,812	132,255,516
Additions			1,864,200	17,860,228
Additions, Units			15,976.621	142,710.559
Redemptions			(20,860,298)	(11,433,882)
Redemptions, Units			(184,111.033)	(92,026.528)
Transfers, Amount			(499,226)
Transfers, units			(4,454.574)
Net loss			(5,885,447)	(5,775,370)
Unitholders' capital, ending balance	100,642,041	132,906,492	100,642,041	132,906,492
Unitholders' capital, ending balance, units	902,005.800	1,084,153.154	902,005.800	1,084,153.154
Unitholders | Class II Units
Unitholders' capital, beginning balance, units			145,147.530	125,308.427
Unitholders' capital, beginning balance			18,520,578	17,110,868
Additions			314,000	4,456,556
Additions, Units			2,524.264	33,133.431
Redemptions			(5,871,427)	(1,698,469)
Redemptions, Units			(47,022.334)	(12,490.697)
Transfers, Amount			499,226
Transfers, units			4,045.906
Net loss			(580,594)	(489,234)
Unitholders' capital, ending balance	12,881,783	19,379,721	12,881,783	19,379,721
Unitholders' capital, ending balance, units	104,695.368	145,951.161	104,695.368	145,951.161
Managing Owner Interests | Class I Units
Unitholders' capital, beginning balance, units			0.000	0.000
Unitholders' capital, beginning balance			0	0
Additions			0	0
Additions, Units			0.000	0.000
Redemptions			0	0
Redemptions, Units			0.000	0.000
Transfers, Amount			0
Transfers, units			0.000
Net loss			0	0
Unitholders' capital, ending balance	0	0	0	0
Unitholders' capital, ending balance, units	0.000	0.000	0.000	0.000
Managing Owner Interests | Class II Units
Unitholders' capital, beginning balance, units			0.000	2,362.860
Unitholders' capital, beginning balance			0	322,649
Additions			0	0
Additions, Units			0.000	0.000
Redemptions			0	(269,455)
Redemptions, Units			0.000	(1,993.033)
Transfers, Amount			0
Transfers, units			0.000
Net loss			0	(4,087)
Unitholders' capital, ending balance	$ 0	$ 49,107	$ 0	$ 49,107
Unitholders' capital, ending balance, units	0.000	369.827	0.000	369.827

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Condensed Statements of Financial Condition (Parenthetical) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Investment in affiliated investment funds, cost	$ 21,143,635	$ 8,401,176
Investments in securities, cost	$ 75,524,644	$ 62,015,348
Unitholders' capital, outstanding	1,006,701.168	1,219,742.316
Unitholders' | Class I Units
Unitholders' capital, outstanding	902,005.800	1,074,594.786
Unitholders' | Class II Units
Unitholders' capital, outstanding	104,695.368	145,147.530
Managing Owner's Interests | Class I Units
Unitholders' capital, outstanding
Managing Owner's Interests | Class II Units
Unitholders' capital, outstanding

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Derivative Instruments and Associated Risks

9 Months Ended

Sep. 30, 2012

Derivative Instruments and Associated Risks [Abstract]

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS

Note 10. DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS

The fair value of Series J’s derivatives by instrument type, as well as the location of those instruments on the statements of financial condition as of September 30, 2012 and December 31, 2011, are included in the condensed schedules of investments, all of which are deemed derivatives not designated as hedging instruments. No derivative instruments were directly held by Series J as of September 30, 2012. Derivative trading activity is now conducted within the Affiliated Investment Funds.

The following presents the fair value of derivative contracts at September 30, 2012 and December 31, 2011. The fair value of derivative contracts is presented as an asset if in a gain position and a liability if in a loss position. Fair value is presented on a gross basis in the table below even though the derivative contracts qualify for net presentation in the condensed statements of financial condition.

	September 30, 2012						December 31, 2011
Description	Assets		Liabilities		Net		Assets		Liabilities			Net
Forward Currency Contracts	$	0	$	0	$	0	$	648,171	$	(648,171	)	$	0
Total gross fair value of derivatives	$	0	$	0	$	0	$	648,171	$	(648,171	)	$	0

The trading revenue of Series J’s derivatives by instrument type, as well as the location of those gains and losses on the condensed statements of operations, for the Third Quarter 2012, Third Quarter 2011, Year-To-Date 2012 and Year-To-Date 2011 is as follows:

	Trading Revenue for the					Trading Revenue for the
	Third Quarter 2012		Third Quarter 2011			Year-To-Date 2012		Year-To-Date 2011
Type of instrument
Commodities contracts	$	0	$	(783,407	)	$	0	$	(643,715	)
Currencies contracts		0		9,642			0		454,736
Energy contracts		0		(459,686	)		0		(175,217	)
Interest rate contracts		0		1,740,029			0		1,362,798
Metals contracts		0		1,290,445			0		1,096,870
Stock indices contracts		0		(1,183,486	)		0		(1,798,314	)
Purchases options on futures contracts		0		(428,520	)		0		(237,784	)
Written options on futures contracts		0		259.780			0		22,924
Forward currency contracts		0		31.632			0		609,250
Total	$	0	$	476,429		$	0	$	691,548
Line item in the condensed statements of operations
Realized	$	0	$	22,564		$	0	$	5,699,195
Change in unrealized		0		453,865			0		(5,007,647	)
Total	$	0	$	476,429		$	0	$	691,548

For the Third Quarter 2011 and Year-To-Date 2011, the total number of closed futures contracts was 20,710 and 80,403, respectively, the total number of closed options on futures contracts was 1,283 and 4,924, respectively, and the average monthly notional value of forward currency contracts closed was $1,525,711,138 and $1,563,820,503, respectively.

The average monthly notional value of contracts closed represents the average monthly U.S. dollar notional value of futures and options on futures contracts closed and settled in cash during the Third Quarter 2011 and Year-To-Date 2011. No derivative instruments were held directly by Series J during the Third Quarter 2012 and Year-To-Date 2012.

Series J’s investments in Affiliated Investment Funds are subject to the market and credit risks of the futures contracts, options on futures contracts, forward currency contracts and other financial instruments held or sold short by them. Series J bears the risk of loss only to the extent of the market value of its investment and, in certain specific circumstances, distributions and redemptions received.

Series J is exposed to various types of risks associated with the derivative instruments and related markets in which it directly invests through its Affiliated Investment Funds. These risks include, but are not limited to, risk of loss from fluctuations in the value of derivative instruments held (market risk) and the inability of counterparties to perform under the terms of Series J’s investment activities (credit risk).

The Managing Owner has established procedures to actively monitor market risk and minimize credit risk, although there can be no assurance that it will, in fact, succeed in doing so. The unitholders bear the risk of loss only to the extent of the market value of their respective investments and, in certain specific circumstances, distributions and redemptions received.

Market Risk

Trading in futures and forward contracts (including foreign exchange) involves entering into contractual commitments to purchase or sell a particular commodity at a specified date and price. The gross or face amount of the contracts, which is typically many times that of Series J’s net assets being traded, significantly exceeds Series J’s future cash requirements since Series J intends to close out its open positions prior to settlement. As a result, Series J is generally subject only to the risk of loss arising from the change in the value of the contracts. The market risk associated with Series J’s commitments to purchase commodities is limited to the gross or face amount of the contracts held. However, when Series J enters into a contractual commitment to sell commodities, it must make delivery of the underlying commodity at the contract price and then repurchase the contracts at prevailing market prices or settle in cash. Since the repurchase price to which a commodity can rise is unlimited, entering into commitments to sell commodities exposes Series J to unlimited risk. In addition, as both a buyer and seller of options, Series J pays or receives a premium at the outset and then bears the risk of unfavorable changes in the price of the contract underlying the option. Written options expose Series J to potentially unlimited liability, and purchased options expose Series J to a risk of loss limited to the premiums paid.

Market risk is influenced by a wide variety of factors, including government programs and policies, political and economic events, the level and volatility of interest rates, foreign currency exchange rates, the diversification effect among the derivative instruments Series J holds and the liquidity and inherent volatility of the markets in which Series J trades.

Credit Risk

When entering into futures or forward contracts, Series J is exposed to credit risk that the counterparty to the contract will not meet its obligations. The counterparty for futures contracts traded on U.S. and most foreign futures exchanges is the clearinghouse associated with the particular exchange. In general, clearinghouses are backed by their corporate members who are required to share any financial burden resulting from the non-performance by one of their members and, as such, should significantly reduce this credit risk. In cases where the clearinghouse is not backed by the clearing members (i.e., some foreign exchanges), it is normally backed by a consortium of banks or other financial institutions.

The Managing Owner attempts to minimize both credit and market risks by requiring Series J and its Trading Advisors to abide by various trading limitations and policies. The Managing Owner monitors compliance with these trading limitations and policies, which include, but are not limited to, executing and clearing all trades with creditworthy counterparties; limiting the amount of margin or premium required for any one commodity or all commodities combined; and generally limiting transactions to contracts which are traded in sufficient volume to permit the taking and liquidating of positions.

Series J’s futures commission merchants, in accepting orders for the purchase or sale of domestic futures contracts, are required by CFTC regulations to separately account for and segregate as belonging to Series J all assets of Series J relating to domestic futures trading and are not allowed to commingle such assets with its other assets.

At September 30, 2012 and December 31, 2011, such segregated assets totaled $0 and $0, respectively. Part 30.7 of the CFTC regulations also requires Series J’s futures commission merchants to secure assets of Series J related to foreign futures trading, which totaled $0 and $0 at September 30, 2012 and December 31, 2011, respectively. There are no segregation requirements for assets related to forward trading.

As of September 30, 2012, Series J had no open futures or forward currency contracts as Series J has transitioned from investments in direct Managed Accounts to accessing the Trading Advisors through CTA Choice’s managed account platform.

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Document and Entity Information	9 Months Ended
	Sep. 30, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	World Monitor Trust III - Series J
Entity Central Index Key	0001345991
Document Type	10-Q
Document Period End Date	Sep. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	0

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Financial Highlights

9 Months Ended

Sep. 30, 2012

Financial Highlights [Abstract]

FINANCIAL HIGHLIGHTS

Note 11. FINANCIAL HIGHLIGHTS

The following information presents per Unit operating performance data and other supplemental financial data for the Third Quarter 2012, Third Quarter 2011, Year-To-Date 2012 and Year-To-Date 2011. This information has been derived from information presented in the financial statements.

	Class I						Class II
	Third Quarter			Year- To-Date			Third Quarter			Year- To-Date
	2012						2012
Per Unit Performance
(for a unit outstanding throughout the entire period)
Net asset value per Unit at beginning of period	$	110.60		$	117.27		$	121.41		$	127.60
Gain (loss) from operations:
Net realized and change in unrealized gain (loss) (1)		2.17			(2.51	)		2.36			(2.77	)
Interest income (1)		0.00			0.01			0.00			0.01
Dividend income (1)		0.24			0.76			0.27			0.84
Expenses (2)		(1.43	)		(3.95	)		(1.00	)		(2.64	)
Total gain (loss) from operations		0.98			(5.69	)		1.63			(4.56	)
Net assets value per Unit at end of period	$	111.58		$	111.58		$	123.04		$	123.04
Total Return		0.89	%		(4.85	)%		1.34	%		(3.57	)%
Supplemental data
Ratios to average net asset values:
Total loss from operations (3)		(4.22	)%		(3.72	)%		(2.39	)%		(1.93	)%
Interest income (2)		0.00	%		0.01	%		0.00	%		0.01	%
Dividend income (2)		0.86	%		0.88	%		0.86	%		0.89	%
Total expenses (2), (3)		5.08	%		4.61	%		3.25	%		2.83	%

Total returns are calculated based on the change in value of a Unit during the period. An individual Unitholder’s total return and ratio may vary from the above total returns and ratios based on the timing of subscriptions and redemptions.

⁽¹⁾  Dividend and Interest income per Unit, expenses per Unit are calculated by dividend and interest income and expenses applicable to each class by the weighted average number of Units of each class outstanding during the period. Total trading and investing loss is a balancing amount necessary to reconcile the change in net asset value per Unit of each class with the other per Unit information.

⁽²⁾  Annualized.

⁽³⁾  Trading Advisor management, incentive and various other operating expenses charged indirectly within Series J’s investments in Affiliated Investment Funds are included in Total Return.

	Class I						Class II
	Third			Year-To-			Third			Year-To-
	Quarter			Date			Quarter			Date
	2011(5)						2011
Per Unit Performance
(for a Unit outstanding throughout the entire period)
Net asset value per Unit at beginning of period	$	122.28		$	127.97		$	131.81		$	136.55
Gain (loss) from operations:
Net realized and change in unrealized gain (1)		1.95			0.02			2.10			0.04
Interest income (1)		0.00			0.01			0.00			0.01
Dividend income (1)		0.19			1.18			0.20			1.26
Expenses (1)		(1.83	)		(6.59	)		(1.33	)		(5.08	)
Total gain (loss) from operations		0.31			(5.38	)		0.97			(3.77	)
Net asset value per Unit at end of period	$	122.59		$	122.59		$	132.78		$	132.78
Total Return (4)
Total return before incentive fees		0.30	%		(3.61	)%		0.78	%		(2.16	)%
Incentive fee		(0.05	)%		(0.59	)%		(0.04	)%		(0.60	)%
Total return after incentive fees		0.25	%		(4.20	)%		0.74	%		(2.76	)%
Supplemental Data
Ratios to average net asset value:
Net investment loss before incentive fees (2), (3)		(5.18	)%		(4.93	)%		(3.24	)%		(2.96	)%
Incentive fee (4)		(0.05	)%		(0.61	)%		(0.04	)%		(0.61	)%
Net investment loss after incentive fees		(5.23	)%		(5.54	)%		(3.28	)%		(3.57	)%
Interest income (3)		0.01	%		0.01	%		0.01	%		0.01	%
Dividend income (3)		0.61	%		1.25	%		0.60	%		1.25	%
Incentive fees (4)		0.05	%		0.61	%		0.04	%		0.61	%
Other expenses (3)		5.80	%		6.19	%		3.85	%		4.22	%
Total expenses		5.85	%		6.80	%		3.89	%		4.83	%

Total returns are calculated based on the change in value of a Unit during the period. An individual Unitholders’ total returns and ratios may vary from the above total returns and ratios based on the timing of additions and redemptions.

⁽¹⁾  Dividend and Interest income per Unit, expenses per Unit are calculated by dividend and interest income and expenses applicable to each class by the weighted average number of Units of each class outstanding during the period. Total trading and investing loss is a balancing amount necessary to reconcile the change in net asset value per Unit of each class with the other per Unit information.

⁽²⁾  Represents dividend and interest income less total expenses (exclusive of incentive fees). This excludes the Trust’s proportionate share of income and expenses from investments in affiliated funds.

⁽³⁾  Annualized.

⁽⁴⁾  Not annualized (This represents incentive fees charged by the Trading Advisors for the 2011 periods presented).

⁽⁵⁾  Effective January 1, 2011, includes loss from Affiliated Investment Funds.

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Condensed Schedules of Investments (USD $)	Sep. 30, 2012	Dec. 31, 2011
Forward currency contracts purchased
Net Unrealized Gain (Loss) as a % of Unitholders' Capital	0.00%	0.45%
Net unrealized Gain (Loss)	$ 0	$ 648,171
Forward currency contracts sold
Net Unrealized Gain (Loss) as a % of Unitholders' Capital	0.00%	(0.45%)
Net unrealized Gain (Loss)	0	(648,171)
Forward currency contracts sold: open forward currency contracts
Net Unrealized Gain (Loss) as a % of Unitholders' Capital	0.00%	0.00%
Net unrealized Gain (Loss)	0	0
Mutual Funds - JP Morgan Short Duration Bond
Fair Value as a % of Unitholders' Capital	22.34%	21.45%
Fair Value	25,356,653	31,007,674
Mutual Funds - Fidelity Instl Shrt-Interm Govt
Fair Value as a % of Unitholders' Capital	22.34%	0.00%
Fair Value	25,365,395	0
Mutual Funds - T. Rowe Price Short-Term Fund
Fair Value as a % of Unitholders' Capital	22.34%	21.45%
Fair Value	25,365,951	31,007,674
Total investments in Securities
Fair Value as a % of Unitholders' Capital	67.02%	42.90%
Fair Value	76,087,999	62,015,348
Investment in Affiliated Investment Funds
Fair Value as a % of Unitholders' Capital	18.50%	5.68%
Fair Value	$ 21,004,565	$ 8,207,427

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Service Fees and Sales Commissions

9 Months Ended

Sep. 30, 2012

Service Fees and Sales Commissions [Abstract]

SERVICE FEES AND SALES COMMISSIONS

Note 5. SERVICE FEES AND SALES COMMISSIONS

Series J pays a service fee with respect to Class I Units, monthly in arrears, equal to 1/12 of 2% (2% per annum) of the Net Asset Value per Unit of the outstanding Class I Units as of the beginning of the month. Series J also pays an initial commission equal to 2% of the initial Net Asset Value per Unit of each Class I Unit sold by the Correspondent Selling Agents (“CSA”), payable on the date such Class I Units are purchased.

Commencing with the 13^th month after the purchase of a Class I Unit, the CSAs received an ongoing monthly commission equal to 1/12^th of 2% (2% per annum) of the net asset value per Class I Unit as of the beginning of each month of the Class I Units sold by them.

The Service Fee – Class I Units (as described below) disclosed on the condensed statements of operations represents (i) the monthly 1/12 of 2% of the net asset value per Class I Unit as of the beginning of each month of the Class I Units, (ii) the initial upfront sales commission of 2% (iii) a deduction for Series J’s recapture of the 1/12 of 2% service fee on all Units owned for less than 12 months that have received the 2% upfront sales commission and a recapture of the service fee on Units held with no CSA.

For the Third Quarter 2012, Third Quarter 2011, Year-To-Date 2012 and Year-To Date 2011, the Service Fee – Class I Units is composed of the following:

	Third Quarter 2012			Year-to-Date 2012
Monthly 1/12 of 2% service fee calculated on all Class I Units	$	527,702		$	1,721,577
Initial up-front 2% sales commissions		0			23,704
Series J’s recapture on 1/12 of 2% service fee on select units and recapture of the service fee on units held with no CSA		(40,278	)		(212,927	)
Total	$	487,424		$	1,532,354
	Third Quarter 2011			Year-to-Date 2011
Monthly 1/12 of 2% service fee calculated on all Class I Units	$	663,457		$	2,016,634
Initial up-front 2% sales commissions		112,088			369,604
Series J’s recapture on 1/12 of 2% service fee on select units and recapture of the service fee on units held with no CSA		(129,137	)		(381,604	)
Total	$	646,408		$	2,004,634

Series J will also pay the Selling Agent a monthly sales commission equal to 1/12th of 1% (1% annually) of the net asset value of the outstanding units as of the beginning of each month.

Effective October 1, 2010, Series J agreed to pay a monthly fee to Wells Fargo for providing continuing due diligence, training, operations, system support, and marketing. For Class I and II Units purchased by clients of Wells Fargo on or prior to October 1, 2010, the fee is 1/12^th of 0.10% (0.10% per annum) of the beginning of the month net asset value. For Class I and II Units purchased subsequent to October 1, 2010 the fee is 1/12^th of 0.30% (0.30% per annum) of the beginning of the month net asset value. These fees will be deducted from the management fee paid to the Managing Owner.

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Managing Owner and Affiliates

9 Months Ended

Sep. 30, 2012

Managing Owner and Affiliates [Abstract]

MANAGING OWNER AND AFFILIATES

Note 4. MANAGING OWNER AND AFFILIATES

Effective October 31, 2011, the Managing Owner and/or its affiliates redeemed 100% of their interest in Series J. Prior to October 31, 2011, the Managing Owner and/or its affiliates had purchased and maintained an interest in Series J in an amount less than 1% of the net asset value of Series J. The Managing Owner is no longer required under the terms of the Trust Agreement to maintain a 1% interest.

The Managing Owner is paid a monthly management fee of 1/12 of 0.5% (0.5% annually) of Series J’s net asset value at the beginning of each month (See Note 5).

From October 1, 2010 to December 31, 2011, Series J paid a monthly managed account fee in the amount of 1/12 of 0.25% of Series J’s beginning net asset value to ClariTy for risk management and related services with respect to monitoring the Trading Advisors. Effective January 1, 2012, Series J pays this fee indirectly through its investments in the Affiliated Investment Funds. For the Third Quarter 2012, Third Quarter 2011, Year-To-Date 2012 and Year-To-Date 2011, the managed account fees earned, either directly or indirectly as discussed in Note 1, totaled $74,542, $94,604, $240,639 and $287,328, respectively.

The Managing Owner has determined that it is in the best interest of Series J to invest a portion of its non-margin assets, either directly or indirectly through certain investment funds, in (i) U.S. government securities (which include any security issued or guaranteed as to principal or interest by the United States), (ii) any certificate of deposit for any of the foregoing, including U.S. treasury bonds, U.S. treasury bills and issues of agencies of the United States government, (iii) corporate bonds or notes, or (iv) other instruments permitted by applicable rule and regulations. Effective January 1, 2011, the Managing Owner is paid monthly 1/12 of 50% of the first 1% of the positive returns earned on Series J’s investment of non-margin assets. The calculation is based on the average annualized net asset value, and any losses related to returns on the non-margin assets must first be recovered through subsequent positive returns prior to the Managing Owner receiving a payment.

After the calculation of the amount payable to the Managing Owner, Series J will be credited with all additional positive returns (or 100% of any losses) on Series J’s investment of non-margin assets. If at the end of any calendar year a loss has been incurred on the returns for the non-margin assets, then the loss carry forward will reset to zero for the next calendar year with regards to the calculation of the Managing Owner’s portion of the non-margin asset’s income. For the Third Quarter 2012, Third Quarter 2011, Year-To-Date 2012 and Year-To Date 2011, the Managing Owner’s portion of interest earned on the non-margin assets amounted to $280,094, $62,760, $578,933 and $382,673, respectively.

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Service Fees and Sales Commissions (Tables)

9 Months Ended

Sep. 30, 2012

Service Fees and Sales Commissions [Abstract]

Schedule of composition of service fee - Class I Units

	Third Quarter 2012			Year-to-Date 2012
Monthly 1/12 of 2% service fee calculated on all Class I Units	$	527,702		$	1,721,577
Initial up-front 2% sales commissions		0			23,704
Series J’s recapture on 1/12 of 2% service fee on select units and recapture of the service fee on units held with no CSA		(40,278	)		(212,927	)
Total	$	487,424		$	1,532,354
	Third Quarter 2011			Year-to-Date 2011
Monthly 1/12 of 2% service fee calculated on all Class I Units	$	663,457		$	2,016,634
Initial up-front 2% sales commissions		112,088			369,604
Series J’s recapture on 1/12 of 2% service fee on select units and recapture of the service fee on units held with no CSA		(129,137	)		(381,604	)
Total	$	646,408		$	2,004,634

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Subsequent Events

9 Months Ended

Sep. 30, 2012

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

Note 12. SUBSEQUENT EVENTS

The following table sets out the total capital commitment split between net asset value (amount funded) and the remaining capital commitments as of October 31, 2012:

	Total Capital Commitment October 30, 2012		Net Asset Value October 30, 2012		Remaining Capital Commitment October 30, 2012
Affiliated Investment Funds	$	111,809,404	$	19,286,324	$	92,523,080

From October 1, 2012 through November 13, 2012, there were estimated redemptions of $4,369,143 effective for October 31, 2012.

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Trustee

9 Months Ended

Sep. 30, 2012

Trustee [Abstract]

TRUSTEE

Note 8. TRUSTEE

The trustee of the Trust is Wilmington Trust Company, a Delaware banking corporation. The trustee has delegated to the Managing Owner the power and authority to manage the business and affairs of the Trust and has only nominal duties and liabilities with respect to the Trust.

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Administrator

9 Months Ended

Sep. 30, 2012

Administrator [Abstract]

ADMINISTRATOR

Note 6. ADMINISTRATOR

Spectrum Global Fund Administration, L.L.C. (“Spectrum” or the “Administrator”), a Delaware limited liability, was the administrator of Series J and provided certain administration and accounting services pursuant to the terms of a Services Agreement with Series J dated as of May 23, 2007. On December 10, 2010, AlphaMetrix360, LLC purchased the assets of Spectrum.

Effective June 1, 2011, Series J replaced AlphaMetrix 360, LLC with GlobeOp Financial Services LLC (“GlobeOp” or the “Administrator”), a Delaware limited liability company. AlphaMetrix 360, LLC’s Service Agreement with Series J was terminated effective close of business on May 31, 2011.

The Administrator performs or supervises the performance of services necessary for the operation and administration of Series J (other than making investment decisions), including administrative and accounting services. The Administrator also calculates Series J’s Net Asset Value. In addition, the Administrator maintains certain books and records of Series J, including certain books and records required by CFTC Rule 4.23(a). “Administrator” refers to Spectrum, AlphaMetrix 360, LLC, or GlobeOp depending on the applicable period discussed.

For the Third Quarter 2012, Third Quarter 2011, Year-To-Date 2012 and Year-To Date 2011, Series J paid administration fees, either directly or indirectly within its investments in Affiliated Investment Funds as discussed in Note 1, of $38,721, $91,808, $127,531 and $260,926, respectively.

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Investment in Affiliated Investment Funds

9 Months Ended

Sep. 30, 2012

Investment in Affiliated Investment Funds [Abstract]

INVESTMENT IN AFFILIATED INVESTMENT FUNDS

Note 7. INVESTMENT IN AFFILIATED INVESTMENT FUNDS

Series J’s investments in the Affiliated Investment Funds represents approximately 18.50% of the net asset value of Series J at September 30, 2012. The investments in the Affiliated Investment Funds are reported in Series J’s condensed statements of financial condition at their net asset value (fair value). Series J records its proportionate share of income or loss in the condensed statements of operations. The investments are subject to the terms of the organizational and offering documents of the Affiliated Investment Funds.

The following table summarizes the change in net asset value (fair value) of Series J’s investments in Affiliated Investment Funds for the Year-To-Date 2012 and Year-To-Date 2011.

	Net asset value December 31, 2011		Purchases		(Loss)			Redemptions			Net asset value September 30, 2012
Investment in Affiliated Investment Funds	$	8,207,427	$	80,671,134	$	(3,733,923	)	$	(64,140,073	)	$	21,004,565

	Net asset value December 31, 2010		Purchases		(Loss)			Redemptions			Net asset value September 30, 2011
Investment in Affiliated Investment Funds	$	0	$	30,415,675	$	(1,285,300	)	$	(16,458,406	)	$	12,671,969

The Affiliated Investment Funds are redeemable semi-monthly to monthly and require a redemption notice of 1-5 days. Series J may make additional contributions or redemptions from the Affiliated Investment Funds on a standard allocation date. The Affiliated Investment Funds engage in trading of commodity futures, forwards and option contracts. Series J records its proportionate share of income or loss in the condensed statements of operations. Series J’s investment in the Affiliated Investment Funds are notionally funded, and the following table sets out the total capital commitment split between net asset value (amount funded) and the remaining capital commitment. The remaining capital commitment is the amount that can be requested from Series J if requested by the Affiliated Investment Funds to meet margin calls in accordance with the governing documents. However, Series J’s capital commitment to the Affiliated Investment Funds is disclosed below.

	Total Capital Commitment September 30, 2012		Net Asset Value September 30, 2012		Remaining Capital Commitment September 30, 2012
CTA Choice BEAM	$	16,862,488	$	4,665,081	$	12,197,407
CTA Choice BLKW		15,901,890		2,176,800		13,725,090
CTA Choice CRABL-PV		15,078,233		3,390,272		11,687,961
CTA Choice EAGL		7,981,377		2,113,291		5,868,086
CTA Choice EGLG		9,228,330		1,363,165		7,865,165
CTA Choice KRM		17,330,004		1,952,837		15,377,167
CTA Choice ORT		17,212,585		4,357,382		12,855,203
CTA Choice SAXN		17,258,979		985,737		16,273,242
Total	$	116,853,886	$	21,004,565	$	95,849,321

Series J’s investments in the Affiliated Investment Funds are subject to the market and credit risks of securities held or sold short indirectly within the respective Affiliated Investment Fund (See Note 10). ClariTy has established procedures to monitor market risk and minimize credit risk, although there can be no assurance that it will, in fact, succeed in doing so. The interestholders within CTA Choice bear the risk of loss only to the extent of the market value of their respective investments and, in certain specific circumstances, distributions and redemptions received.

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Costs, Fees and Expenses

9 Months Ended

Sep. 30, 2012

Costs, Fees and Expenses [Abstract]

COSTS, FEES AND EXPENSES

Note 9. COSTS, FEES AND EXPENSES

A. Operating Expenses

Operating expenses of Series J are paid for by Series J.

B. Management and Incentive Fees

Through December 31, 2011, Series J paid each Trading Advisor a monthly management fee and a quarterly incentive fee (calculated monthly) pursuant to the applicable Managed Account advisory agreement.

	Prior to October 1, 2010
Trading Advisor*	Management Fee% (1)		Incentive Fee% (2)
Ortus		2.00		20.00
Eagle		2.00		25.00
Graham		2.50		25.00
GLC		2.00		25.00
Krom		2.00		25.00
Paskewitz		2.00		20.00
Crabel		1.00		25.00
Tudor		2.00		25.00

⁽¹⁾  The Management Fee is paid monthly at a rate equal to 1/12 of the indicated rate above of the net asset value of Series J accordance with the applicable advisory agreement.

⁽²⁾  The Incentive Fee is paid quarterly on the percentage indicated of new net high trading profits of Series J in accordance with the applicable advisory agreement.

Indirectly through its investments in the Affiliated Investment Funds, Series J now pays the following Trading Advisors management fees and incentive fees for achieving “New High Net Trading Profits,” in Series J’s capital accounts within the Affiliated Investment Funds as defined in their respective advisory agreements.

Affiliated Investment Fund	Management Fee%		Incentive Fee%
BEAM		1.00		20.00
BLKW		1.00		25.00
CRABL-PV		1.00		25.00
EAGL		1.50		25.00
EGLG		2.00		25.00
GRM *		2.00		20.00
KRM		1.50		25.00
ORT		1.00		25.00
SAXN		0.00		25.00
TDRM*		2.00		20.00

* Series J fully redeemed from GRM and TDRM as of December 31, 2011.

For the Third Quarter 2012, Third Quarter 2011, Year-To-Date 2012 and Year-To Date 2011, Series J paid management fees, either directly or indirectly within its investments in Affiliated Investment Funds as discussed in Note 1, of $311,755, $549,567, $1,020,929 and $1,636,137, respectively.

For the Third Quarter 2012, Third Quarter 2011, Year-To-Date 2012 and Year-To Date 2011, Series J paid incentive fees, either directly or indirectly within its investments in Affiliated Investment Funds as discussed in Note 1, of $360,993, $68,928, $597,064 and $916,827, respectively.

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Managing Owner and Affiliates (Details Textual) (USD $)	1 Months Ended		3 Months Ended		9 Months Ended		15 Months Ended
	Oct. 31, 2011	Jan. 31, 2011	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Managing Owner and Affiliates (Textual) [Abstract]
Percentage interest in Series J redeemed by Managing Owner and/or its affiliates	100.00%
Percentage interest to be maintained			1.00%		1.00%
Percentage interest to be maintained Under the term of trust agreement			1.00%		1.00%
Monthly management fee of Series J's net asset value at the beginning of each month	1/12 of 0.5%	1/12 of 50% of the first 1% of the positive returns
Monthly fee of Series J's beginning net asset value to ClariTy for risk management and related services							1/12 of 0.25% of Series J’s beginning net asset value
Managed account fees earned			$ 74,542	$ 94,604	$ 240,639	$ 287,328
Annual management fee paid of Series J's beginning net asset value to Clarity for risk management and related services			0.25%		0.25%
Annual management fee paid of Series J's net asset value at the beginning of each month	0.50%		50.00%		50.00%
Amount credited to Series J					Additional positive returns (or 100% of any losses) on the Registrant's investment of non-margin assets
Percentage of losses in investment of non-margin assets			100.00%		100.00%
Income earned on the non-margin assets			$ 280,094	$ 62,760	$ 578,933	$ 382,673

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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2012

Summary of Significant Accounting Policies [Abstract]

Summary of assets measured at fair value

September 30, 2012	Level 1		Level 2		Level 3		Total
Assets:
Investment in Affiliated Investment Funds, at fair value	$	0	$	21,004,565	$	0	$	21,004,565
Investment in securities, at fair value	$	76,087,999	$	0	$	0	$	76,087,999
December 31, 2011	Level 1		Level 2		Level 3		Total
Assets:
Investment in Affiliated Investment Funds, at fair value	$	0	$	8,207,427	$	0	$	8,207,427
Investment in securities, at fair value	$	62,015,348	$	0	$	0	$	62,015,348

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Derivative Instruments and Associated Risks (Tables)

9 Months Ended

Sep. 30, 2012

Derivative Instruments and Associated Risks [Abstract]

Fair value of derivative contracts on a gross basis

	September 30, 2012						December 31, 2011
Description	Assets		Liabilities		Net		Assets		Liabilities			Net
Forward Currency Contracts	$	0	$	0	$	0	$	648,171	$	(648,171	)	$	0
Total gross fair value of derivatives	$	0	$	0	$	0	$	648,171	$	(648,171	)	$	0

Trading revenue of derivatives by instrument type

	Trading Revenue for the					Trading Revenue for the
	Third Quarter 2012		Third Quarter 2011			Year-To-Date 2012		Year-To-Date 2011
Type of instrument
Commodities contracts	$	0	$	(783,407	)	$	0	$	(643,715	)
Currencies contracts		0		9,642			0		454,736
Energy contracts		0		(459,686	)		0		(175,217	)
Interest rate contracts		0		1,740,029			0		1,362,798
Metals contracts		0		1,290,445			0		1,096,870
Stock indices contracts		0		(1,183,486	)		0		(1,798,314	)
Purchases options on futures contracts		0		(428,520	)		0		(237,784	)
Written options on futures contracts		0		259.780			0		22,924
Forward currency contracts		0		31.632			0		609,250
Total	$	0	$	476,429		$	0	$	691,548

Realized and unrealized gain on derivatives

Line item in the condensed statements of operations
Realized	$	0	$	22,564	$	0	$	5,699,195
Change in unrealized		0		453,865		0		(5,007,647	)
Total	$	0	$	476,429	$	0	$	691,548

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Subsequent Events (Details) (USD $)	Oct. 31, 2012	Sep. 30, 2012
Schedule of capital commitments
Total Capital Commitment	$ 111,809,404	$ 116,853,886
Net Asset Value	19,286,324	21,004,565
Remaining Capital Commitment	$ 92,523,080	$ 95,849,321

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Costs, Fees and Expenses (Details)	1 Months Ended	3 Months Ended
	Dec. 31, 2011	Dec. 31, 2011
CTA Choice ORT [Member]
Summary of management fee and incentive fee to trading advisor
Management Fee % Paid to Trading Advisor	2.00%
Incentive Fee % Paid to Trading Advisor		20.00%
CTA Choice EAGL [Member]
Summary of management fee and incentive fee to trading advisor
Management Fee % Paid to Trading Advisor	2.00%
Incentive Fee % Paid to Trading Advisor		25.00%
Graham [Member]
Summary of management fee and incentive fee to trading advisor
Management Fee % Paid to Trading Advisor	2.50%
Incentive Fee % Paid to Trading Advisor		25.00%
GLC [Member]
Summary of management fee and incentive fee to trading advisor
Management Fee % Paid to Trading Advisor	2.00%
Incentive Fee % Paid to Trading Advisor		25.00%
KRM [Member]
Summary of management fee and incentive fee to trading advisor
Management Fee % Paid to Trading Advisor	1.50%
Incentive Fee % Paid to Trading Advisor		25.00%
PASKEWITZ [Member]
Summary of management fee and incentive fee to trading advisor
Management Fee % Paid to Trading Advisor	1.00%
Incentive Fee % Paid to Trading Advisor		25.00%
CTA Choice CRABL-PV [Member]
Summary of management fee and incentive fee to trading advisor
Management Fee % Paid to Trading Advisor	1.00%
Incentive Fee % Paid to Trading Advisor		25.00%
TUDOR [Member]
Summary of management fee and incentive fee to trading advisor
Management Fee % Paid to Trading Advisor	2.00%
Incentive Fee % Paid to Trading Advisor		25.00%

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Condensed Schedules of Investments (Parenthetical) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Mutual Funds - JP Morgan Short Duration Bond
Shares	2,300,966.651	2,831,751.050
Mutual Funds - Fidelity Instl Shrt-Interm Govt
Shares	2,494,139.120	0.000
Mutual Funds - T. Rowe Price Short-Term Fund
Shares	5,219,331.542	6,446,501.870
Total investments in Securities
Investments, at cost	75,524,644	62,015,348
Investment in Affiliated Investment Funds
Investments, at cost	21,143,635	8,401,176

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Related Parties

9 Months Ended

Sep. 30, 2012

Related Parties [Abstract]

RELATED PARTIES

Note 3. RELATED PARTIES

Series J reimburses the Managing Owner for services it performs for Series J, which include, but are not limited to; management, legal, accounting, registrar, transfer and assignment functions, investor communications, printing, risk management and related services with respect to monitoring the Trading Advisors and the Trust and other administrative services.

The expenses incurred by Series J for services performed by the Managing Owner and its affiliates for Series J were:

	Three months ended September 30,				Nine months ended June 30,
	2012		2011		2012		2011
Management fees to Managing Owner	$	146,834	$	189,882	$	477,864	$	574,657
ClariTy Managed Account fees to affiliate		0		94,604		0		287,328
Managing Owner interest on investment funds payable		280,093		62,760		578,933		382,673
Operating expenses		43,085		68,447		173,194		148,686
	$	470,012	$	415,693	$	1,229,991	$	1,393,344

(1) ClariTy Managed Account fees, which were paid directly to the Managing Owner during 2011, are now paid indirectly through its investments in Affiliated Investment Funds, starting January 1, 2012.

Expenses payable to the Managing Owner and its affiliates (which are included in accrued expenses payable on the condensed statements of financial condition) as of September 30, 2012 and December 31, 2011 were $56,564 and $68,447, respectively.

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Financial Highlights (Tables)

9 Months Ended

Sep. 30, 2012

Financial Highlights [Abstract]

Changes in the net asset value per unit

	Class I						Class II
	Third Quarter			Year- To-Date			Third Quarter			Year- To-Date
	2012						2012
Per Unit Performance
(for a unit outstanding throughout the entire period)
Net asset value per Unit at beginning of period	$	110.60		$	117.27		$	121.41		$	127.60
Gain (loss) from operations:
Net realized and change in unrealized gain (loss) (1)		2.17			(2.51	)		2.36			(2.77	)
Interest income (1)		0.00			0.01			0.00			0.01
Dividend income (1)		0.24			0.76			0.27			0.84
Expenses (2)		(1.43	)		(3.95	)		(1.00	)		(2.64	)
Total gain (loss) from operations		0.98			(5.69	)		1.63			(4.56	)
Net assets value per Unit at end of period	$	111.58		$	111.58		$	123.04		$	123.04
Total Return		0.89	%		(4.85	)%		1.34	%		(3.57	)%
Supplemental data
Ratios to average net asset values:
Total loss from operations (3)		(4.22	)%		(3.72	)%		(2.39	)%		(1.93	)%
Interest income (2)		0.00	%		0.01	%		0.00	%		0.01	%
Dividend income (2)		0.86	%		0.88	%		0.86	%		0.89	%
Total expenses (2), (3)		5.08	%		4.61	%		3.25	%		2.83	%

Total returns are calculated based on the change in value of a Unit during the period. An individual Unitholder’s total return and ratio may vary from the above total returns and ratios based on the timing of subscriptions and redemptions.

⁽¹⁾  Dividend and Interest income per Unit, expenses per Unit are calculated by dividend and interest income and expenses applicable to each class by the weighted average number of Units of each class outstanding during the period. Total trading and investing loss is a balancing amount necessary to reconcile the change in net asset value per Unit of each class with the other per Unit information.

⁽²⁾  Annualized.

⁽³⁾  Trading Advisor management, incentive and various other operating expenses charged indirectly within Series J’s investments in Affiliated Investment Funds are included in Total Return.

	Class I						Class II
	Third			Year-To-			Third			Year-To-
	Quarter			Date			Quarter			Date
	2011(5)						2011
Per Unit Performance
(for a Unit outstanding throughout the entire period)
Net asset value per Unit at beginning of period	$	122.28		$	127.97		$	131.81		$	136.55
Gain (loss) from operations:
Net realized and change in unrealized gain (1)		1.95			0.02			2.10			0.04
Interest income (1)		0.00			0.01			0.00			0.01
Dividend income (1)		0.19			1.18			0.20			1.26
Expenses (1)		(1.83	)		(6.59	)		(1.33	)		(5.08	)
Total gain (loss) from operations		0.31			(5.38	)		0.97			(3.77	)
Net asset value per Unit at end of period	$	122.59		$	122.59		$	132.78		$	132.78
Total Return (4)
Total return before incentive fees		0.30	%		(3.61	)%		0.78	%		(2.16	)%
Incentive fee		(0.05	)%		(0.59	)%		(0.04	)%		(0.60	)%
Total return after incentive fees		0.25	%		(4.20	)%		0.74	%		(2.76	)%
Supplemental Data
Ratios to average net asset value:
Net investment loss before incentive fees (2), (3)		(5.18	)%		(4.93	)%		(3.24	)%		(2.96	)%
Incentive fee (4)		(0.05	)%		(0.61	)%		(0.04	)%		(0.61	)%
Net investment loss after incentive fees		(5.23	)%		(5.54	)%		(3.28	)%		(3.57	)%
Interest income (3)		0.01	%		0.01	%		0.01	%		0.01	%
Dividend income (3)		0.61	%		1.25	%		0.60	%		1.25	%
Incentive fees (4)		0.05	%		0.61	%		0.04	%		0.61	%
Other expenses (3)		5.80	%		6.19	%		3.85	%		4.22	%
Total expenses		5.85	%		6.80	%		3.89	%		4.83	%

Total returns are calculated based on the change in value of a Unit during the period. An individual Unitholders’ total returns and ratios may vary from the above total returns and ratios based on the timing of additions and redemptions.

⁽¹⁾  Dividend and Interest income per Unit, expenses per Unit are calculated by dividend and interest income and expenses applicable to each class by the weighted average number of Units of each class outstanding during the period. Total trading and investing loss is a balancing amount necessary to reconcile the change in net asset value per Unit of each class with the other per Unit information.

⁽²⁾  Represents dividend and interest income less total expenses (exclusive of incentive fees). This excludes the Trust’s proportionate share of income and expenses from investments in affiliated funds.

⁽³⁾  Annualized.

⁽⁴⁾  Not annualized (This represents incentive fees charged by the Trading Advisors for the 2011 periods presented).

⁽⁵⁾  Effective January 1, 2011, includes loss from Affiliated Investment Funds.

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Investment in Affiliated Investment Funds (Details) (USD $)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Summary of change in fair value of net asset value investments in Affiliated Investment Funds
Investment in Affiliated Investment Funds, Net asset value	$ 8,207,427	$ 0
Purchases	80,671,134	30,415,675
Loss	(3,733,923)	(1,285,300)
Redemptions	(64,140,073)	(16,458,406)
Investment in Affiliated Investment Funds, Net asset value	$ 21,004,565	$ 12,671,969

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2012

Summary of Significant Accounting Policies [Abstract]

Basis of Accounting

Basis of Accounting

The condensed statements of financial condition, including the condensed schedules of investments, as of September 30, 2012, the condensed statements of operations for the three months ended September 30, 2012 (“Third Quarter 2012”) and for the nine months ended September 30, 2012 (“Year-To-Date 2012”) and for the three months ended September 30, 2011 (“Third Quarter 2011”) and for the nine months ended September 30, 2011 (“Year-To-Date 2011”), and the condensed statements of changes in unitholders capital for the Year-To-Date 2012 and Year-To-Date 2011, are unaudited.

In the opinion of the Managing Owner, the financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial position of Series J as of September 30, 2012 and the results of its operations for the interim period Third Quarter 2012, Third Quarter 2011, Year-To-Date 2012 and Year-To-Date 2011. The operating results for these interim periods may not be indicative of the results expected for a full year.

The financial statements of Series J are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Such principles require the Managing Owner to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in Series J’s annual report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2011.

Commodity futures, options and foreign exchange forward contracts are reflected in the accompanying financial statements on a trade date basis. Net unrealized gain or loss on open contracts (the difference between contract trade price and market price) are offset when reflected in the financial statements since the contracts are executed with the same counterparty under a master netting agreement. The market value of futures (exchange-traded) contracts is based upon the closing quotation on the various futures exchanges on which the contract is traded. The values which will be used by Series J for open forward and option positions will be provided by its administrator, who obtains market quotes from independent data vendors and third parties. Any change in net unrealized gain or loss during the current period is reported in the statements of operations. Realized gains and losses on transactions are recognized in the period in which the contracts are closed. Brokerage commissions include other trading fees and are charged to expense when incurred.

The weighted average number of Units outstanding was computed for purposes of disclosing net income (loss) per weighted average Unit. The weighted average number of Units is equal to the number of Units outstanding at year end, adjusted proportionately for Units subscribed and redeemed based on their respective time outstanding during the period.

Investments in securities consist of publicly-traded mutual funds. Publicly-traded mutual funds are valued using the net asset value on the last day of the period. Realized gains and losses from investment securities are determined using the identified cost method. Any change in net unrealized gain or loss from the preceding period is reported in the condensed statements of operations. Dividends are recorded on the ex-dividend date.

Series J has elected not to provide a statement of cash flows since substantially all of Series J’s investments are highly liquid and carried at fair value, Series J has little or no debt and a condensed statements of changes in unitholders’ capital (net asset value) is provided.

Consistent with standard business practices in the normal course of business, Series J has provided general indemnifications to the Managing Owner and others when they act, in good faith, in the best interests of Series J. Series J is unable to develop an estimate of the maximum potential amount of future payments that could potentially result from any hypothetical future claim, but expects the risk of having to make any payments under these general business indemnifications to be remote.

Series J accounts for financial assets and liabilities using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels: quoted market prices in active markets for identical assets and liabilities (Level 1), inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly (Level 2), and unobservable inputs for the asset or liability (Level 3).

Series J considers its investments in publicly-traded mutual funds, prices for exchange traded commodity futures and options contracts to be based on quoted prices in active markets for identical assets (Level 1). The values of forwards, swaps and certain options contracts for which market quotations are not readily available are priced by independent third party data vendors or pricing services who derive fair values for those assets from observable inputs (Level 2). In determining the level, Series J considers the length of time until the investment is redeemable, including notice and lock-up periods or any other restriction on the disposition of the investment. Series J also considers the nature of the portfolios of the underlying Affiliated Investment Funds and their ability to liquidate their underlying investments. Series J has the ability to redeem its investments at the reported net asset valuation as of the measurement date (see Note 7) and classified its investments in Affiliated Investment Funds as Level 2 using the fair value hierarchy. The Level 2 investments in Affiliated Investment Funds are valued at the net asset value as reported by the underlying investment funds’ capital balance using the expedient method. The carrying value of the underlying investments in Affiliated Investment Funds is at fair value. There are no Level 3 investments on September 30, 2012 or December 31, 2011, nor any portion of the interim periods.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents represents amounts deposited with clearing brokers and a bank, a portion of which is restricted for purposes of meeting margin requirements, which typically ranged from 0% to 35% of the notional amounts of the derivatives traded. A substantial portion of the cash deposited with a bank is deposited in an off-shore sweep account facility daily. Series J receives interest on all cash balances held by the clearing brokers and bank at prevailing rates.

Series J has cash and investments in securities on deposit with financial institutions and in broker trading accounts which may exceed the insured balance limits. In the event of a financial institution’s insolvency, recovery of cash and investments in securities on deposit may be limited to account insurance or other protection afforded such deposits.

Income Taxes

Income Taxes

Series J is treated as a partnership for U.S. federal income tax purposes. As such, Series J is not required to provide for, or pay, any U.S. federal or state income taxes. Income tax attributes that arise from its operations are passed directly to the individual Unitholders including the Managing Owner. Series J may be subject to other state and local taxes in jurisdictions in which it operates.

Series J recognizes tax benefits or expenses of uncertain tax positions in the year such determination is made when the positions are “more likely than not” to be sustained assuming examination by tax authorities. The Managing Owner has reviewed Series J’s tax positions for all open years and concluded that no provision for unrecognized tax benefits or expense is required in these financial statements. Series J has elected an accounting policy to classify interest and penalties related to unrecognized tax benefits as interest or other expense. The 2009 through 2011 tax years generally remain subject to examination by U.S. federal and most state tax authorities.

Profit and Loss Allocations and Distributions

Profit and Loss Allocations and Distributions

Income and expenses (excluding the service fee and upfront sales commissions further discussed in Note 5) are allocated pro rata to the Class I Units and Class II Units monthly based on the Units outstanding during the month. Class I Units are charged with the service fee and upfront sales commission applicable to such Units. Distributions (other than redemptions of Units) may be made at the sole discretion of the Managing Owner on a pro rata basis in accordance with the respective capital balances of the Unitholders. The Managing Owner has not and does not presently intend to make any distributions.

Offering Costs

Offering Costs

In accordance with the Trust’s Agreement and Prospectus, the Managing Owner is responsible for the payment of all offering expenses of Series J incurred after the Initial Offering Period (“ongoing offering costs”), provided that the amount of such ongoing offering costs paid by the Managing Owner are subject to reimbursement by the Trust, without interest, in up to 36 monthly payments during each of the first 36 months following the month in which such expenses were paid by the Managing Owner. Through September 30, 2012, the Managing Owner has paid $2,587,895 in ongoing offering costs, of which $2,530,733 has been allocated to Series J.

Ongoing offering costs incurred through November 30, 2006 in the amount of $599,062 will not be reimbursed to the Managing Owner. For the period December 1, 2006 through September 30, 2012, the Managing Owner incurred and Series J was allocated ongoing offering costs in the amount of $1,951,276 and $1,931,670, respectively. Of the $1,931,670 allocated to Series J, $635,144 will not be reimbursable to the Managing Owner.

Series J will only be liable for payment of ongoing offering costs on a monthly basis. If Series J terminates prior to completion of payment of such amounts to the Managing Owner, the Managing Owner will not be entitled to any additional payments, and Series J will have no further obligation to the Managing Owner.

During the Third Quarter 2012, Third Quarter 2011, Year-To-Date 2012 and Year-To-Date 2011, Series J’s allocable portion of ongoing offering costs did not exceed 0.50% per annum of the net asset value of Series J.

Interest Income and Dividend Income

Interest Income and Dividend Income

Interest is recorded on an accrual basis. Dividends are recorded on the ex-dividend date.