10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended March 31, 2013 or

o           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: 000-19511

MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

(Exact name of registrant as specified in its charter)

	Delaware	13-3619290
	(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
Ceres Managed Futures LLC
522 Fifth Avenue, 14th Floor
New York, NY		10036
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (855) 672-4468

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

Indicate by check mark whether the 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 the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x  No o

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 o

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 the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o
Non-accelerated filer x	Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes 0  No T

As of March 31, 2013, 6,633,154.296 Limited Partnership Redeemable Units were outstanding.

MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

INDEX TO QUARTERLY REPORT ON FORM 10-Q

March 31, 2013

	PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Statements of Financial Condition as of March 31, 2013 and December 31, 2012	2
	Condensed Schedule of Investments as of March 31, 2013	3
	Condensed Schedule of Investments as of December 31, 2012	4
	Statements of Income and Expenses for the Quarters Ended March 31, 2013 and 2012	5
	Statements of Changes in Partners’ Capital for the Quarters Ended March 31, 2013 and 2012	6
	Notes to Financial Statements	7-25
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26-35
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35-42
Item 4.	Controls and Procedures	42-43
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	44-52
Item 1A.	Risk Factors	52
Item 4.	Mine Safety Disclosures	53
Item 6.	Exhibits	53

PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

	March 31,	December 31,
	2013	2012
ASSETS	$	$
Trading Equity:
Unrestricted cash	166,881,286	171,164,335
Restricted cash	26,440,851	27,192,268
Total cash	193,322,137	198,356,603
Net unrealized gain on open contracts (MS&Co.)	1,943,202	3,072,667
Net unrealized loss on open contracts (MSIP)	–	(521,313)
Net unrealized gain on open contracts	1,943,202	2,551,354
Total Trading Equity	195,265,339	200,907,957
Interest receivable (MS&Co.)	11,606	6,032
Total Assets	195,276,945	200,913,989
LIABILITIES AND PARTNERS’ CAPITAL
Liabilities:
Redemptions payable	3,739,157	3,642,807
Accrued brokerage fees (MS&Co.)	957,030	994,527
Accrued management fees	290,756	302,574
Total Liabilities	4,986,943	4,939,908
Partners’ Capital:
Limited Partners (6,633,154.296 and 6,979,883.723 Units, respectively)	188,279,807	193,760,270
General Partner (70,819.769 and 79,748.769 Units, respectively)	2,010,195	2,213,811
Total Partners’ Capital	190,290,002	195,974,081
Total Liabilities and Partners’ Capital	195,276,945	200,913,989
NET ASSET VALUE PER UNIT	28.38	27.76

The accompanying notes are an integral part of these financial statements.

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MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

CONDENSED SCHEDULE OF INVESTMENTS

March 31, 2013 (Unaudited)

Futures and Forward Contracts Purchased	Net unrealized gain/(loss) on    open contracts	% of            Partners’ Capital
	$
Commodity	419,645	0.22
Equity	211,017	0.11
Foreign currency	242,438	0.13
Interest rate	2,117,186	1.11
Total Futures and Forward Contracts Purchased	2,990,286	1.57
Futures and Forward Contracts Sold
Commodity	681,870	0.36
Equity	135,784	0.07
Foreign currency	(534,839)	(0.28)
Interest rate	(136,030)	(0.07)
Total Futures and Forward Contracts Sold	146,785	0.08
Unrealized Currency Loss	(1,193,869)	(0.63)
Net fair value	1,943,202	1.02

The accompanying notes are an integral part of these financial statements.

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MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

CONDENSED SCHEDULE OF INVESTMENTS

December 31, 2012

Futures and Forward Contracts Purchased	Net unrealized gain/(loss) on open contracts	% of            Partners’ Capital
	$
Commodity	(257,575)	(0.13)
Equity	1,325,665	0.67
Foreign currency	856,313	0.43
Interest rate	151,921	0.08
Total Futures and Forward Contracts Purchased	2,076,324	1.05
Futures and Forward Contracts Sold
Commodity	(82,988)	(0.04)
Equity	(36,283)	(0.02)
Foreign currency	1,942,804	0.99
Interest rate	(144,638)	(0.07)
Total Futures and Forward Contracts Sold	1,678,895	0.86
Unrealized Currency Loss	(1,203,865)	(0.61)
Net fair value	2,551,354	1.30

The accompanying notes are an integral part of these financial statements.

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MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

STATEMENTS OF INCOME AND EXPENSES

(Unaudited)

	For the Quarters Ended March 31,
	2013	2012
	$	$
INVESTMENT INCOME
Interest income (MS&Co. & Morgan Stanley Wealth Management)	32,526	30,128
EXPENSES
Brokerage fees (MS&Co.)	2,945,216	4,250,290
Management fees	894,934	1,300,471
Total Expenses	3,840,150	5,550,761
NET INVESTMENT LOSS	(3,807,624)	(5,520,633)
TRADING RESULTS
Trading profit (loss):
Net realized	8,879,065	7,053,178
Net change in unrealized	(608,152)	(2,846,626)
Total Trading Results	8,270,913	4,206,552
NET INCOME (LOSS)	4,463,289	(1,314,081)
NET INCOME (LOSS) ALLOCATION
Limited Partners	4,416,893	(1,297,416)
General Partner	46,396	(16,665)
NET INCOME (LOSS) PER UNIT*
Limited Partners	0.62	(0.16)
General Partner	0.62	(0.16)
	Units	Units
WEIGHTED AVERAGE NUMBER
OF UNITS OUTSTANDING	6,942,874.184	9,011,174.635

* Based on change in net asset value per Unit.

The accompanying notes are an integral part of these financial statements.

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MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL

For the Quarters Ended March 31, 2013 and 2012

(Unaudited)

	Units of
	Partnership	Limited	General
	Interest	Partners	Partner	Total
		$	$	$
Partners’ Capital,
December 31, 2012	7,059,632.492	193,760,270	2,213,811	195,974,081
Net Income	–	4,416,893	46,396	4,463,289
Redemptions	(355,658.427)	(9,897,356)	(250,012)	(10,147,368)
Partners’ Capital,
March 31, 2013	6,703,974.065	188,279,807	2,010,195	190,290,002
Partners’ Capital,
December 31, 2011	9,158,617.900	283,036,281	3,108,127	286,144,408
Net Loss	–	(1,297,416)	(16,665)	(1,314,081)
Redemptions	(504,926.429)	(15,911,073)	–	(15,911,073)
Partners’ Capital,
March 31, 2012	8,653,691.471	265,827,792	3,091,462	268,919,254

The accompanying notes are an integral part of these financial statements.

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 MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

NOTES TO FINANCIAL STATEMENTS

March 31, 2013

(Unaudited)

The unaudited financial statements contained herein include, in the opinion of management, all adjustments necessary for a fair presentation of the financial condition and results of operations of Morgan Stanley Smith Barney Spectrum Select L.P. (the “Partnership”).  The financial statements and condensed notes herein should be read in conjunction with the Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012 (the “Form 10-K”).

1.  Organization

Morgan Stanley Smith Barney Spectrum Select L.P. is a Delaware limited partnership organized in 1991 to engage primarily in the speculative trading of futures contracts, options on futures and forward contracts, and forward contracts on physical commodities and other commodity interests, including, but not limited to, foreign currencies, financial instruments, metals, energy, and agricultural products (collectively, “Futures Interests”) (refer to Note 4. Financial Instruments).  The Partnership is one of the Morgan Stanley Spectrum series of funds, comprised of the Partnership, Morgan Stanley Smith Barney Spectrum Currency and Commodity L.P., Morgan Stanley Smith Barney Spectrum Global Balanced L.P., Morgan Stanley Smith Barney Spectrum Strategic L.P., and Morgan Stanley Smith Barney Spectrum Technical L.P. (collectively, the “Spectrum Series”).

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MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Ceres Managed Futures LLC, a Delaware limited liability company, acts as a general partner (“Ceres” or the “General Partner”) and commodity pool operator for the Partnership.  Ceres is a wholly-owned subsidiary of Morgan Stanley Smith Barney Holdings LLC (“MSSBH”).  MSSBH is majority-owned indirectly by Morgan Stanley and minority-owned indirectly by Citigroup Inc.  (“Citigroup”).  Morgan Stanley expects to purchase, subject to regulatory approvals, Citigroup’s remaining interest in MSSBH.  Morgan Stanley Smith Barney LLC is doing business as Morgan Stanley Wealth Management (“Morgan Stanley Wealth Management”).  This entity, where the Partnership continues to maintain a cash account, previously acted as a non-clearing commodity broker for the Partnership.  The clearing commodity brokers are Morgan Stanley & Co. LLC (“MS&Co.”) and Morgan Stanley & Co. International plc (“MSIP”).  MS&Co. also acts as the counterparty on all trading of foreign currency forward contracts.  Morgan Stanley Capital Group Inc. (“MSCG”) acts as the counterparty on all trading of options on foreign currency forward contracts.  MSIP serves as the commodity broker for trades on the London Metal Exchange (“LME”).  Morgan Stanley Wealth Management is a principal subsidiary of MSSBH.  MS&Co., MSIP, and MSCG are wholly-owned subsidiaries of Morgan Stanley.  The trading advisors to the Partnership are Altis Partners (Jersey) Limited (“Altis”), EMC Capital Management, Inc. (“EMC”), Graham Capital Management, L.P. (“Graham”), Northfield Trading L.P. (“Northfield”), Rabar Market Research, Inc. (“Rabar”), and Sunrise Capital Management, Inc. (“Sunrise Capital”) (each individually,  a “Trading Advisor”, or collectively, the “Trading Advisors”).

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MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

2.   Financial Highlights

          Financial Highlights for the quarters ended March 31, 2013 and 2012 were as follows:

                   For the Quarters Ended March 31,

	2013	2012
Per Unit Operating Performance:
Net asset value, January 1:	$     27.76	$     31.24
Interest Income	–  (3)	–  (3)
Expenses	(0.56)	(0.62)
Realized/Unrealized Income (1)	1.18	0.46
Net Income (Loss)	0.62	(0.16)
Net asset value, March 31:	$     28.38	$     31.08
Ratios to average net assets:
Net Investment Loss (2)	(7.9)%	(8.0)%
Expenses before  Incentive Fees (2)	8.0%	8.0%
Expenses after Incentive Fees (2)	8.0%	8.0%
Net Income (Loss) (2)	9.3 %	(1.9) %
Total return before incentive fees	2.2%	(0.5)%
Total return after incentive fees	2.2%	(0.5)%

 (1) Realized/Unrealized Income (Loss) is a balancing amount necessary to reconcile the change in net asset value

 per Unit with the other per Unit information.

   (2) Annualized (except for incentive fees, if applicable).

 (3) Amounts less than $0.005 per Unit.

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MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

3.  Related Party Transactions

The Partnership’s cash is on deposit in commodity brokerage accounts with Morgan Stanley.  Monthly, MS&Co. pays the Partnership interest income on 100% of the average daily equity maintained in cash in the Partnership’s account during each month at a rate equal to 80% of the monthly average of the 4-week U.S. Treasury bill discount rate.  MS&Co. retains any interest earned in excess of the interest paid by MS&Co. to the Partnership.  For purposes of such interest payments, net assets do not include monies due to the Partnership on Futures Interests that have not been received.  The Partnership pays brokerage fees to MS&Co.

4.  Financial Instruments

The Partnership trades Futures Interests.  Futures and forwards represent contracts for delayed delivery of an instrument at a specified date and price.  Futures Interests are open commitments until settlement date, at which time they are realized.  They are valued at fair value, generally on a daily basis, and the unrealized gains and losses on open contracts (the difference between contract trade price and market price) are reported in the Statements of Financial Condition as a net unrealized gain or loss on open contracts.  The resulting net change in unrealized gains and losses is reflected in the “Net change in unrealized trading profit (loss)” on open contracts from one period to the next on the Statements of Income and Expenses.  The fair value of exchange-traded futures, options and forward contracts is determined by the various futures exchanges, and reflects the settlement price for each contract as of the close of business on the last business day of the reporting period.  The fair value of foreign currency forward contracts is extrapolated on a

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MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

forward basis from the spot prices quoted as of approximately 3:00 P.M. (E.T.) of the last business day of the reporting period from various exchanges.  The fair value of non-exchange-traded foreign currency option contracts is calculated by applying an industry standard model application for options valuation of foreign currency options, using as input the spot prices, interest rates, and option implied volatilities quoted as of approximately 3:00 P.M. (E.T.) on the last business day of the reporting period.  Risk arises from changes in the value of these contracts and the potential inability of counterparties to perform under the terms of the contracts.  There are numerous factors which may significantly influence the fair value of these contracts, including interest rate volatility.

The fair value of exchange-traded contracts is based on the settlement price quoted by the exchange on the day with respect to which fair value is being determined.  If an exchange-traded contract could not have been liquidated on such day due to the operation of daily limits or other rules of the exchange, the settlement price will be equal to the settlement price on the first subsequent day on which the contract could be liquidated.  The fair value of off-exchange-traded contracts is based on the fair value quoted by the counterparty.

The Partnership’s contracts are accounted for on a trade-date basis.  The Partnership accounts for its derivative investments as described in Note 5. Derivatives and Hedgingas required by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”).  A derivative is defined as a financial instrument or other contract that has all three of the following characteristics:

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MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

1)   a) One or more “underlyings” and b) one or more “notional amounts” or payment provisions or both;

2)   Requires no initial net investment or a smaller initial net investment than would be required for other types of contracts that would be expected to have a similar response relative to changes in market factors; and

   3)   Terms that require or permit net settlement.

Generally, derivatives include futures, forward, swaps or options contracts, and other financial instruments with similar characteristics such as caps, floors, and collars.

The net unrealized gains (losses) on open contracts, reported as a component of “Trading Equity” on the Statements of Financial Condition, and their longest contract maturities were as follows:

	Net Unrealized Gains/(Losses) on Open Contracts			Longest Maturities
Date	Exchange-Traded	Off-Exchange-Traded	Total	Exchange-Traded	Off-Exchange-Traded
	$	$	$
Mar. 31, 2013	2,438,664	(495,462)	1,943,202	Dec. 2016	Jun. 2013
Dec. 31, 2012	2,503,274	48,080	2,551,354	Mar. 2017	Mar. 2013

In general, the risks associated with off-exchange-traded contracts are greater than those associated with exchange-traded contracts because of the greater risk of default by the counterparty to an off-exchange-traded contract.  The Partnership has credit risk associated with counterparty nonperformance.  As of the date

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MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

of the financial statements, the credit risk associated with the instruments in which the Partnership trades is limited to the unrealized gains (losses) amounts reflected in the Partnership’s Statements of Financial Condition.  The net unrealized gains (losses) on open contracts are further disclosed gross by type of contract and corresponding fair value level in Note 6. Fair Value Measurements and Disclosures.

The Partnership also has credit risk because MS&Co., MSIP, and/or MSCG act as the futures commission merchants or the counterparties with respect to most of the Partnership’s assets. Exchange-traded futures, exchange-traded forward, and exchange-traded futures-styled options contracts are fair valued on a daily basis, with variations in value settled on a daily basis.  MS&Co. and MSIP, each acting as a commodity futures broker for the Partnership’s exchange-traded futures, exchange-traded forward, and exchange-traded futures-styled options contracts, are required, pursuant to regulations of the Commodity Futures Trading Commission (“CFTC”), to segregate from their own assets, and for the sole benefit of their commodity customers, total cash held by them with respect to exchange-traded futures, exchange-traded forward, and exchange-traded futures-styled options contracts, including an amount equal to the net  unrealized gains (losses) on all open exchange-traded futures, exchange-traded forward, and exchange-traded futures-styled options contracts, which in the aggregate, totaled $195,760,801 and $200,859,877 at March 31, 2013 and December 31, 2012, respectively. With respect to the Partnership’s off-exchange-traded forward currency contracts and forward currency options contracts, there are no daily settlements of variation in value, nor is there any requirement that an amount equal to the net unrealized gains (losses) on such contracts be segregated.  However, the Partnership is required to meet margin

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MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

requirements equal to the net unrealized loss on open forward currency contracts in the Partnership accounts with the counterparty, which is accomplished by daily maintenance of the cash balance in a custody account held at MS&Co. for the benefit of MS&Co.  With respect to those off-exchange-traded forward currency contracts, the Partnership is at risk to the ability of MS&Co., the sole counterparty on all such contracts, to perform.  With respect to those off-exchange-traded forward currency options contracts, the Partnership is at risk to the ability of MSCG, the sole counterparty on all such contracts, to perform.  The Partnership has a netting agreement with each counterparty.  The primary terms are based on industry standard master agreements.  These agreements, which seek to reduce both the Partnership’s and the counterparties’ exposure on off-exchange-traded forward currency contracts, including options on such contracts, should materially decrease the Partnership’s credit risk in the event of MS&Co.’s or MSCG’s bankruptcy or insolvency.

The General Partner monitors and attempts to control the Partnership’s risk exposure on a daily basis through financial, credit and risk management monitoring systems, and accordingly, believes that it has effective procedures for evaluating and limiting the credit and market risks to which the Partnership may be subject.  These monitoring systems generally allow the General Partner to statistically analyze actual trading results with risk adjusted performance indicators and correlation statistics.  In addition, online monitoring systems provide account analysis of futures, forwards and options positions by sector, margin requirements, gain and loss transactions and collateral positions.

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MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

The futures, forwards and options traded by the Partnership involve varying degrees of related market risk.  Market risk is often dependent upon changes in the level or volatility of interest rates, exchange rates, and prices of financial instruments and commodities, factors that result in frequent changes in the fair value of the Partnership’s open positions, and consequently in its earnings, whether realized or unrealized, and cash flow.  Gains and losses on open positions of exchange-traded futures, exchange-traded forward, and exchange-traded futures-styled options contracts are settled daily through variation margin.  Gains and losses on off-exchange-traded forward currency contracts are settled upon termination of the contract.  Gains and losses on off-exchange-traded forward currency options contracts are settled on an agreed-upon settlement date.

5.  Derivatives and Hedging

The Partnership’s objective is to profit from speculative trading in Futures Interests.  Therefore, the Trading Advisors for the Partnership will take speculative positions in Futures Interests where they feel the best profit opportunities exist for their trading strategy.  As such, the average number of contracts outstanding in absolute quantities (the total of the open long and open short positions) has been presented as a part of the volume disclosure, as position direction is not an indicative factor in such volume disclosures.  With regard to foreign currency forward trades, each notional quantity amount has been converted to an equivalent contract based upon an industry convention.

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MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

On January 1, 2013, the Partnership adopted Accounting Standards Update (“ASU”) 2011-11, “Disclosure about Offsetting Assets and Liabilities” and ASU 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities”.  ASU 2011-11 created a new disclosure requirement about the nature of an entity’s rights to setoff and the related arrangements associated with its financial instruments and derivative instruments, while ASU 2013-01 clarified the types of instruments and transactions that are subject to the offsetting disclosure requirements established by ASU 2011-11.  Entities are required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The objective of these disclosures is to facilitate comparison between those entities that prepare their financial statements on the basis of accounting principles generally accepted in the United States of America (“U.S. GAAP”) and those entities that prepare their financial statements on the basis of International Financial Reporting Standards (“IFRS”). The new guidance did not have a significant impact on the Partnership’s financial statements.

The following tables summarize the valuation of the Partnership’s investments as of March 31, 2013 and December 31, 2012, respectively.

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MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

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

	Gross Amounts Recognized	Gross Amounts Offset in the  Statement of Financial Condition	Net Amounts Presented in the  Statement of Financial Condition
	$	$	$
Assets
Futures	4,928,553	(1,853,529)	3,075,024
Forwards	123,884	(208,622)	(84,738)
Total Assets	5,052,437	(2,062,151)	2,990,286
Liabilities
Futures	2,446,797	(1,889,288)	557,509
Forwards	47,151	(457,875)	(410,724)
Total Liabilities	2,493,948	(2,347,163)	146,785
Unrealized currency loss			(1,193,869)
Total net unrealized gain on
open contracts			1,943,202

Offsetting of Derivative Assets and Liabilities as of December 31, 2012:

	Gross Amounts Recognized	Gross Amounts Offset in the  Statement of Financial Condition	Net Amounts Presented in the  Statement of Financial Condition
	$	$	$
Assets
Futures	4,891,012	(2,689,281)	2,201,731
Forwards	353,745	(479,152)	(125,407)
Total Assets	5,244,757	(3,168,433)	2,076,324
Liabilities
Futures	2,985,462	(1,480,054)	1,505,408
Forwards	265,987	(92,500)	173,487
Total Liabilities	3,251,449	(1,572,554)	1,678,895
Unrealized currency loss			(1,203,865)
Total net unrealized gain on
open contracts			2,551,354

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MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

The Effect of Trading Activities on the Statements of Financial Condition as of March 31, 2013:

Futures and Forward Contracts	Long   Unrealized Gain	Long   Unrealized Loss	Short Unrealized Gain	Short Unrealized Loss	Net   Unrealized  Gain/(Loss)	Average number of contracts outstanding for the three months (absolute quantity)
	$	$	$	$	$
Commodity	871,355	(451,710)	1,987,357	(1,305,487)	1,101,515	3,828
Equity	1,394,117	(1,183,100)	136,938	(1,154)	346,801	2,108
Foreign currency	591,719	(349,281)	300,960	(835,799)	(292,401)	4,227
Interest rate	2,195,246	(78,060)	68,693	(204,723)	1,981,156	5,845
Total	5,052,437	(2,062,151)	2,493,948	(2,347,163)	3,137,071
Unrealized currency loss					(1,193,869)
Total net unrealized gain on open contracts					1,943,202

The Effect of Trading Activities on the Statements of Financial Condition as of December 31, 2012:

Futures and Forward Contracts	Long    Unrealized Gain	Long     Unrealized Loss	Short Unrealized Gain	Short Unrealized Loss	Net   Unrealized  Gain/(Loss)	Average number of contracts outstanding for the year (absolute quantity)
	$	$	$	$	$
Commodity	763,693	(1,021,268)	1,051,860	(1,134,848)	(340,563)	4,025
Equity	1,842,840	(517,175)	–	(36,283)	1,289,382	1,915
Foreign currency	1,878,922	(1,022,609)	2,196,364	(253,560)	2,799,117	5,689
Interest rate	759,302	(607,381)	3,225	(147,863)	7,283	9,810
Total	5,244,757	(3,168,433)	3,251,449	(1,572,554)	3,755,219
Unrealized currency loss					(1,203,865)
Total net unrealized gain on open contracts					2,551,354

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MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

The following tables summarize the net trading results of the Partnership for the quarters ended March 31, 2013 and 2012, respectively.

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

Type of Instrument	$
Commodity	(3,166,726)
Equity	9,169,842
Foreign currency	2,978,916
Interest rate	(721,114)
Unrealized currency gain	9,995
Total	8,270,913

Line Items on the Statements of Income and Expenses for the Quarter Ended March 31, 2013

Trading Results	$
Net realized	8,879,065
Net change in unrealized	(608,152)
Total Trading Results	8,270,913

The Effect of Trading Activities on the Statements of Income and Expenses for the Quarter Ended March 31, 2012 included in Total Trading Results:

Type of Instrument	$
Commodity	4,284,224
Equity	11,205,332
Foreign currency	(4,820,324)
Interest rate	(6,451,062)
Unrealized currency loss	(11,618)
Total	4,206,552

Line Items on the Statements of Income and Expenses for the Quarter Ended March 31, 2012:

Trading Results	$
Net realized	7,053,178
Net change in unrealized	(2,846,626)
Total Trading Results	4,206,552

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MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

6.  Fair Value Measurements and Disclosures

Effective January 1, 2012, the Partnership adopted ASU 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in the U.S. GAAP and IFRS.”  The amendments within this ASU change the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements to eliminate unnecessary wording differences between U.S. GAAP and IFRS.  However, some of the amendments clarify the FASB’s intent about the application of existing fair value measurement requirements and other amendments change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements.  This new guidance did not have a significant impact on the Partnership’s financial statements.

On October 1, 2012, the FASB issued ASU 2012-04 “Technical Corrections and Improvements”, which makes minor technical corrections and clarifications to ASC 820, “Fair Value Measurements and Disclosures”. When the FASB issued Statement 157 (codified in ASC 820), it conformed the use of the term “fair value” in certain pre-Codification standards but not others. ASU 2012-04 conforms the term’s use throughout the ASC “to fully reflect the fair value measurement and disclosure requirements” of ASC 820. The ASU also amends the requirements that must be met for an investment company to qualify for the exemption from presenting a statement of cash flows. Specifically, it eliminates the requirements that substantially all of an entity’s investments be carried at “market value” and that the investments be highly liquid. Instead, it requires substantially all of the entity’s investments to be carried at “fair value” and

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MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

classified as Level 1 or Level 2 measurements under ASC 820. The amendments are effective for fiscal periods beginning after December 15, 2012. The adoption of this ASU did not have a significant impact on the Partnership’s financial statements.

Financial instruments are carried at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.  Assets and liabilities carried at fair value are classified and disclosed in the following three levels: Level 1 - unadjusted quoted market prices in active markets for identical assets and liabilities; Level 2 - inputs other than unadjusted quoted market prices that are observable for the asset or liability, either directly or indirectly (including unadjusted quoted market prices for similar investments, interest rates and credit risk); and Level 3 - unobservable inputs for the asset or liability (including the Partnership’s own assumptions used in determining the fair value of investments).

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy.  In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.  The Partnership’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment.

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MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

The Partnership’s assets and liabilities measured at fair value on a recurring basis are summarized in the following tables by the type of inputs applicable to the fair value measurements.

March 31, 2013	Unadjusted    Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
	$	$	$	$
Assets
Futures	7,375,350	–	n/a	7,375,350
Forwards	–	171,035	n/a	171,035
Total Assets	7,375,350	171,035	n/a	7,546,385
Liabilities
Futures	3,742,817	–	n/a	3,742,817
Forwards	–	666,497	n/a	666,497
Total Liabilities	3,742,817	666,497	n/a	4,409,314
Unrealized currency loss				(1,193,869)
* Net fair value	3,632,533	(495,462)	n/a	1,943,202

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MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2012	Unadjusted   Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs      (Level 2)	Significant Unobservable Inputs (Level 3)	Total
	$	$	$	$
Assets
Futures	7,876,474	–	n/a	7,876,474
Forwards	–	619,732	n/a	619,732
Total Assets	7,876,474	619,732	n/a	8,496,206
Liabilities
Futures	4,169,335	–	n/a	4,169,335
Forwards	–	571,652	n/a	571,652
Total Liabilities	4,169,335	571,652	n/a	4,740,987
Unrealized currency loss				(1,203,865)
*Net fair value	3,707,139	48,080	n/a	2,551,354

* This amount comprises the “Net unrealized gain on open contracts” on the Statements of Financial Condition.

During the period January 1, 2013 to March 31, 2013, and the twelve months ended December 31, 2012, there were no Level 3 assets and liabilities and there were no transfers of assets or liabilities between Level 1 and Level 2.

7.  Other Pronouncements

In October 2011, the FASB issued a proposed ASU intended to improve and converge financial reporting by setting forth consistent criteria for determining whether an entity is an investment company.  Under longstanding U.S. GAAP, investment companies carry all of their investments at fair value, even if they hold a controlling interest in another company.  The primary changes being proposed by the

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MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FASB relate to which entities would be considered investment companies as well as certain disclosure and presentation requirements.  In addition to the changes to the criteria for determining whether an entity is an investment company, the FASB also proposes that an investment company be required to consolidate another investment company if it holds a controlling financial interest in the entity.  In August 2012, the FASB updated the proposed ASU to state that entities regulated under the Investment Company Act of 1940 should qualify to be investment companies within the proposed investment company guide.  The Partnership will evaluate the impact that this proposed update would have on the financial statements once the pronouncement is issued.

8.  Restricted and Unrestricted Cash

As reflected on the Partnership’s Statements of Financial Condition, restricted cash equals the cash portion of assets on deposit to meet margin requirements plus the cash required to offset unrealized losses on foreign currency forwards and options contracts and offset unrealized losses on offset LME positions.  All of these amounts are maintained separately.  Cash that is not classified as restricted cash is therefore classified as unrestricted cash.

9.  Income Taxes

No provision for income taxes has been made in the accompanying financial statements, as partners are individually responsible for reporting income or loss based upon their respective share of the Partnership’s revenues and expenses for income tax purposes.  The Partnership files U.S. federal and state tax returns.

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MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONCLUDED)

The guidance issued by the FASB on income taxes, clarifies the accounting for uncertainty in income taxes recognized in the Partnership's financial statements, and prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken.  The Partnership has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements as of March 31, 2013 and December 31, 2012.  If applicable, the Partnership recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in other expenses in the Statements of Income and Expenses.  Generally, the 2009 through 2012 tax years remain subject to examination by U.S. federal and most state tax authorities.  No income tax returns are currently under examination.

10.  Subsequent Events

Management of Ceres performed its evaluation of subsequent events through the date of filing, and has determined that there were no subsequent events requiring adjustment of or disclosure in the financial statements.

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

As of March 31, 2013, the percentage of assets allocated to each market sector was approximately as follows: Interest Rate 21.71%; Currency 16.93%; Equity 29.20%; and Commodity 32.16%.

Liquidity.  The Partnership deposits its assets with MS&Co. and MSIP as clearing commodity brokers in separate futures, forward and options trading accounts established for each Trading Advisor.  Such assets are used as margin to engage in trading and may be used as margin solely for the Partnership’s trading.  The assets are held in either non-interest bearing bank accounts or in securities and instruments permitted by the CFTC for investment of customer segregated or secured funds.  Since the Partnership’s sole purpose is to trade in futures, forwards and options, it is expected that the Partnership will continue to own such liquid assets for margin purposes.

The Partnership’s investment in futures, forwards and options may, from time to time, be illiquid.  Most U.S. futures exchanges limit fluctuations in prices during a single day by regulations referred to as “daily price fluctuation limits” or “daily limits.”  Trades may not be executed at prices beyond the daily limit.  If the price for a particular futures or options contract has increased or decreased by an amount equal to the daily limit, positions in that futures or options contract can neither be taken nor liquidated unless traders are willing to effect trades at or within the limit.  Futures prices have occasionally moved the daily limit for several consecutive days with little or no trading.  These market conditions could prevent the Partnership from promptly liquidating its futures or options contracts and result in restrictions on redemptions.

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There is no limitation on daily price moves in trading forward contracts on foreign currencies.  The markets for some world currencies have low trading volume and are illiquid, which may prevent the Partnership from trading in potentially profitable markets or prevent the Partnership from promptly liquidating unfavorable positions in such markets, subjecting it to substantial losses.  Either of these market conditions could result in restrictions on redemptions.  For the periods covered by this report, illiquidity has not materially affected the Partnership’s assets.

There are no known material trends, demands, commitments, events, or uncertainties at the present time that are reasonably likely to result in the Partnership’s liquidity increasing or decreasing in any material way.

As of March 31, 2013, approximately 92.44% of the Partnership’s total investment exposure is futures contracts which are exchange-traded while approximately 7.56% is forward contracts which are off-exchange traded.

Capital Resources.  The Partnership does not have, nor does it expect to have, any capital assets.  Redemptions of units of limited partnership interest (“Unit(s)”) in the future will affect the amount of funds available for investments in futures, forwards and options in subsequent periods. It is not possible to estimate the amount, and therefore the impact, of future outflows of Units.

There are no known material trends, favorable or unfavorable, that would affect, nor any expected material changes to the Partnership’s capital resource arrangements at the present time.

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Off-Balance Sheet Arrangements and Contractual Obligations.  The Partnership does not have any off-balance sheet arrangements, nor does it have contractual obligations or commercial commitments to make future payments that would affect its liquidity or capital resources.

Results of Operations

General.  The Partnership’s results depend on the Trading Advisors and the ability of each Trading Advisor’s trading program to take advantage of price movements in the futures, forward and options markets.

Altis trades its Global Futures Portfolio Program on behalf of the Partnership.  It is a systematic, automated trading program that builds on the market experience of Altis’ principals and employs a unique proprietary Advanced Asset Allocator.  The Advanced Asset Allocator was specifically developed to manage portfolios of derivative instruments in a robust and scalable manner.  The portfolio management technology combines original, traditional and contrasting investment techniques into one complete and comprehensive trading system.  Investment changes are implemented after considering their effect on the whole portfolio and not just on the individual markets concerned.

Graham currently trades its allocated portion of the Partnership’s assets pursuant to Graham’s Global Diversified Program, as described below, at 150% Leverage.  The Global Diversified Program features the first trend system that Graham developed, which began trading client accounts in 1995. It utilizes multiple computerized trading models and offers broad diversification in both financial and non-financial markets, trading in approximately 65 global markets. The Global Diversified Program’s trend system is primarily

- 28 -

long-term in nature and is intended to generate significant returns over time with an acceptable degree of risk and volatility. The computer models analyze on a daily basis the recent price action, the relative strength and the risk characteristics of each market and compare statistically the quantitative results of this data to years of historical data on each market.

EMC currently trades its Classic Program for the Partnership.  EMC’s investment strategies are technical rather than fundamental in nature. In other words, they are developed from analysis of patterns of actual monthly, weekly, and daily price movements and are not based on analysis of fundamental supply and demand factors, general economic factors, or anticipated world events.  EMC relies on historical analysis of these price patterns to interpret current market behavior and to evaluate technical indicators for trade initiations and liquidations.

EMC’s investment strategies used in its program are trend-following. This means that initiation and liquidation of positions in a particular market are generally in the direction of the price trend in that market, although at times counter-trend elements also may be employed.

EMC employs an investment strategy which utilizes a blend of systems (or, stated another way, a number of systems simultaneously). The strategies are diversified in that its program follows a number of futures interests and often invests in more than ten different interests at one time.

- 29 -

Northfield trades the Diversified Program on behalf of the Partnership.  The Diversified Program was conceived, tested, and refined by Northfield’s principals.  The approach is fully computerized and nondiscretionary.  Money management principles are a critical element of the Diversified Program and have been carefully constructed and are rigorously applied to minimize risk exposure and to protect asset appreciation.

Rabar trades its investment strategy on behalf of the Partnership.  The objective of Rabar’s investment strategy is to generate capital appreciation over the long run by investing exclusively in futures interests, including exchange traded futures contracts, options on futures contracts, foreign currency forward contracts and, to a very limited extent, cash commodities. Rabar may also engage in exchange for physical transactions, more commonly referred to as “EFPs”.  Rabar’s strategy employs a diversified, systematic, technical, and trend-following approach, utilizing a blend of several separate and distinct quantitative models.

Sunrise Capital trades the CIMCO Program on behalf of the Partnership.   The CIMCO—Diversified Financial Program was designed by Sunrise Capital to participate exclusively in the highly liquid financial markets. This program trades the major currencies as outrights against the U.S. dollar and selectively against each other. Interest rate futures, both long and short term (including U.S. and non-U.S. bonds, notes, and euro products), stock indices, precious and industrial metals, and energy products are also traded in this program. These commodity interests are traded on futures exchanges but may also be traded in the interbank or cash markets when appropriate.

- 30 -

The following chart sets forth the percentage and the amount of the Partnership’s net assets allocated to each Trading Advisor for the periods ending March 31, 2013, and December 31, 2012, respectively, and the change during the applicable period.

Trading Advisor	Allocations as of  March 31,    2013 (%)	Allocations as of December 31,     2012 (%)	Allocations as of March 31,      2013 ($)	Allocations as of December 31,    2012 ($)	Change during the         period
Altis	24.04%	23.36%	45,750,568	45,777,302	(0.06)%
Graham	16.98%	17.96%	32,314,506	35,189,945	(8.17)%
EMC	14.95%	14.15%	28,447,189	27,734,350	2.57%
Northfield	13.65%	9.61%	25,976,423	18,837,753	37.90%
Sunrise Capital	5.66%	10.46%	10,773,636	20,498,383	(47.44)%
Rabar	24.71%	24.46%	47,027,680	47,936,348	(1.90)%

The following presents a summary of the Partnership’s operations for the quarters ended March 31, 2013 and 2012, and a general discussion of its trading activities during each period. It is important to note, however, that the Trading Advisors trade in various markets at different times and that prior activity in a particular market does not mean that such market will be actively traded by the Trading Advisors or will be profitable in the future.  Consequently, the results of operations of the Partnership are difficult to discuss other than in the context of the Trading Advisors’ trading activities on behalf of the Partnership during the period in question.  Past performance is no guarantee of future results.

The Partnership’s results of operations set forth in the financial statements on pages 2 through 25 of this report are prepared in accordance with U.S. GAAP, which require the use of certain accounting policies that affect the amounts reported in these financial statements, including the following:  the contracts the Partnership trades are accounted for on a trade-date basis and marked to market on a daily basis.  The difference between their original contract value and market value is recorded on the Statements of Income and Expenses as “Net change in unrealized” trading profit (loss) for open contracts, and recorded as “Net

- 31 -

realized” trading profit (loss) when open positions are closed out.  The sum of these amounts constitutes the Partnership’s trading results.  The market value of a futures contract is the settlement price on the exchange on which that futures contract is traded on a particular day. The value of a foreign currency forward contract is based on the spot rate as of approximately 3:00 P.M. (E.T.) the close of the business day. Interest income, as well as management fees, incentive fees, and brokerage fees of the Partnership are recorded on an accrual basis.

Ceres believes that, based on the nature of the operations of the Partnership, no assumptions relating to the application of critical accounting policies other than those presently used could reasonably affect reported amounts.

For the Quarter Ended March 31, 2013

The Partnership recorded total trading results including interest income totaling $8,803,439 and expenses totaling $3,840,150 resulting in net income of $4,463,289 for the quarter ended March 31, 2013.  The Partnership’s net asset value per Unit increased from $27.76 at December 31, 2012, to $28.38 at March 31, 2013.

During the first quarter, the Partnership posted a gain in Net Asset Value as profits in stock indices, currencies, and agriculturals more than offset losses from trading energies, metals, and global interest rates. The most significant gains were recorded within the global stock index markets during January from long positions in U.S., Pacific Rim, and European equity index futures as prices moved higher after German business confidence improved, economic reports in the U.S. and China beat estimates, and a weaker yen boosted

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Japan’s exports. Within the currency sector, gains were recorded during January from short positions in the Japanese yen versus the U.S. dollar. Speculation that Japanese Prime Minister Shinzo Abe would select a central bank leader who would expand monetary easing accelerated the decline in the relative value of the yen to its weakest levels since June 2010. Additional gains in the currency sector, also during January, were due to long positions in the euro versus the U.S. dollar as the relative value of the euro rose to its highest levels in 11 months on reports from the European Central Bank that loan repayments would beat previous forecasts. Gains were also experienced in the agricultural sector during February due to short positions in wheat futures as prices declined after snowstorms in the Great Plains eased drought concerns for the U.S. crop.

A portion of the Partnership’s gains for the quarter were offset by losses incurred within the energy complex during February from long positions in crude oil and its related products as prices declined on concerns that renewed European debt woes would erode fuel demand. Reports of higher than expected crude oil stockpiles in the U.S. also negatively impacted prices for the month. Within the metal sector, losses were incurred during February from long positions in platinum futures as prices declined on reduced concern that South African supplies would be disrupted. Additional losses during February were incurred from long positions in zinc futures as prices moved lower throughout the month on reports of a global supply glut. Additional losses were experienced within the global interest rate sector during January from long positions in U.S. and European fixed income futures as prices fell amid positive economic reports and after European Central Bank President Mario Draghi said the Euro Zone economy should gradually recover this year.

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For the Quarter Ended March 31, 2012

The Partnership recorded total trading results including interest income totaling $4,236,680 and expenses totaling $5,550,761, resulting in a net loss of $1,314,081 for the quarter ended March 31, 2012.  The Partnership’s net asset value per Unit decreased from $31.24 at December 31, 2011, to $31.08 at March 31, 2012.

The most significant losses were incurred within the global interest rate sector in February and March from long positions in U.S., European, and Pacific Rim fixed-income futures. During February, prices fell amid optimism that Greece would receive a second bailout, thereby diminishing demand for the relative “safety” of government bonds. Meanwhile, prices fell further during March after the U.S. Federal Reserve upwardly revised its U.S. economic outlook. Within the metals markets, losses were incurred primarily during January from short futures positions in aluminum, copper, platinum, and zinc as prices advanced on speculation metals demand will be supported by economic expansion in the U.S. and an easing credit policy in China. Within the currency sector, losses were incurred primarily during March from long positions in the Australian dollar versus the U.S. dollar as concern over earnings in China reduced demand for the higher-yielding currency asset. The value of the Australian dollar continued to decline after a report showed the nation’s trade balance unexpectedly turned to a deficit. Within the agricultural sector, losses were incurred primarily during January from long positions in corn futures as prices fell after favorable weather boosted crop prospects in South America. Additionally, losses were incurred from short positions in cocoa futures as prices advanced on speculation that supplies will ebb in the Ivory Coast.

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A portion of the Partnership’s losses for the quarter was offset by gains achieved within the global stock index sector, primarily in February, from long positions in U.S., Pacific Rim, and European equity index futures as prices rose amid positive economic news, including a better-than-expected U.S. employment report and an expansion in manufacturing in China, Europe, and the U.S. Prices continued to advance after China cut banks’ reserve requirements to fuel lending and buoy growth. Within the energy sector, gains were achieved primarily during February from long futures positions in Brent crude oil, RBOB (unleaded) gasoline,  gas oil, and WTI crude oil as prices increased after Iran denied nuclear inspectors access to a military base, adding to concern that global oil supplies may be disrupted. Further gains were recorded from short natural gas futures positions as prices declined throughout the majority of the quarter.

Item 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Introduction

The Partnership is a commodity pool engaged primarily in the speculative trading of futures, forwards and options.  The market-sensitive instruments held by the Partnership are acquired for speculative trading purposes only and, as a result, all or substantially all of the Partnership’s assets are at risk of trading loss.  Unlike an operating company, the risk of market-sensitive instruments is inherent to the primary business activity of the Partnership.

The futures, forwards and options on such contracts traded by the Partnership involve varying degrees of related market risk.  Market risk is often dependent upon changes in the level or volatility of interest rates, exchange rates, and prices of financial instruments and commodities, factors that result in frequent changes in the fair value of the Partnership’s open positions, and consequently in its earnings, whether realized or

- 35 -

unrealized, and cash flow.  Gains and losses on open positions of exchange-traded futures, exchange-traded forward, and exchange-traded futures-styled options contracts are settled daily through variation margin.  Gains and losses on off-exchange-traded forward currency contracts and forward currency options contracts are settled upon termination of the contract.    Gains and losses on off-exchange-traded forward currency options contracts are settled upon an agreed upon settlement date.

The Partnership’s total market risk may increase or decrease as it is influenced by a wide variety of factors, including, but not limited to, the diversification among the Partnership’s open positions, the volatility present within the markets, and the liquidity of the markets.

The face value of the market sector instruments held by the Partnership is typically many times the applicable margin requirements.  Margin requirements generally range between 2% and 15% of contract face value.  Additionally, the use of leverage causes the face value of the market sector instruments held by the Partnership typically to be many times the total capitalization of the Partnership.

The Partnership’s past performance is no guarantee of its future results.  Any attempt to numerically quantify the Partnership’s market risk is limited by the uncertainty of its speculative trading.  The Partnership’s speculative trading and use of leverage may cause future losses and volatility (i.e., “risk of ruin”) that far exceed the Partnership’s experience to date as discussed under the “Partnership’s Value at Risk in Different Market Sectors” section and significantly exceed the Value at Risk (“VaR”) tables disclosed.

Limited partners will not be liable for losses exceeding the current net asset value of their investment.

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Quantifying the Partnership’s Trading Value at Risk

The following quantitative disclosures regarding the Partnership’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 and Section 21E of the Securities Exchange Act of 1934).  All quantitative disclosures in this section are deemed to be forward-looking statements for purposes of the safe harbor, except for statements of historical fact.

The Partnership accounts for open positions on the basis of fair value accounting principles.  Any loss in the market value of the Partnership’s open positions is directly reflected in the Partnership’s earnings and cash flow.

The Partnership’s risk exposure in the market sectors traded by the Trading Advisors is estimated below in terms of VaR.  Please note that the VaR model is used to numerically quantify market risk for historic reporting purposes only and is not utilized by either Ceres or the Trading Advisors in their daily risk management activities.

VaR is a measure of the maximum amount which the Partnership could reasonably be expected to lose in a given market sector.  However, the inherent uncertainty of the Partnership’s speculative trading and the recurrence in the markets traded by the Partnership of market movements far exceeding expectations could result in actual trading or non-trading losses far beyond the indicated VaR of the Partnership’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 inclusion of the quantification in this section should not be considered to constitute any

- 37 -

assurance or representation that the Partnership’s losses in any market sector will be limited to VaR or by the Partnership’s attempts to manage its market risk.

Exchange maintenance margin requirements have been used by the Partnership as the measure of its VaR.  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.  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 VaR.

The Partnership’s Value at Risk in Different Market Sectors

The following tables indicate the trading VaR associated with the Partnership’s open positions by market category as of March 31, 2013 and December 31, 2012, and the highest, lowest and average values during the three months ended March 31, 2013 and for the twelve months ended December 31, 2012.  All open position trading risk exposures of the Partnership have been included in calculating the figures set forth below.  There has been no material change in the trading VaR information previously disclosed in the Form 10-K.

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As of March 31, 2013, the Partnership’s total capitalization was approximately $190 million.

March 31, 2013

Primary Market		% of Total
Risk Category	VaR	Capitalization
Currency	$4,742,559	2.49%
Interest Rate	6,078,851	3.19%
Equity	8,177,914	4.30%
Commodity	9,006,192	4.73%
Total	$28,005,516	14.71%

       Three Months Ended March 31, 2013

Market Sector	High VaR $	Low VaR $	Average VaR* $
Currency	$9,941,787	$4,616,655	$6,909,825
Interest Rate	$6,121,403	$3,631,650	$4,605,813
Equity	$11,338,881	$7,365,326	$9,600,222
Commodity	$12,525,391	$6,908,991	$9,145,792

* Average of month-end VaR

As of December 31, 2012, the Partnership’s total capitalization was approximately $196 million.

       December 31, 2012

Primary Market		% of Total
Risk Category	VaR	Capitalization
Currency	$9,250,555	4.72%
Interest Rate	5,611,972	2.86%
Equity	9,430,931	4.81%
Commodity	7,524,294	3.84%
Total	$31,817,752	16.23%

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       Twelve Months Ended December 31, 2012

Market Sector	High VaR	Low VaR	Average VaR*
Currency	$16,017,644	$5,232,623	$9,619,758
Interest Rate	$12,732,887	$5,340,391	$8,788,681
Equity	$12,746,735	$3,627,492	$8,279,434
Commodity	$18,861,229	$7,454,507	$12,770,414

* Average of month-end VaR

Limitations on Value at Risk as an Assessment of Market Risk

VaR models permit estimation of a portfolio’s aggregate market risk exposure, incorporating a range of varied market risks, reflect risk reduction due to portfolio diversification or hedging activities, and can cover a wide

range of portfolio assets. However, VaR risk measures should be viewed in light of the methodology’s limitations, which include, but may not be limited to the following:

·   past changes in market risk factors will not always result in accurate predictions of the distributions and correlations of future market movements;

·   changes in portfolio value caused by market movements may differ from those of the VaR model;

·   VaR results reflect past market fluctuations applied to current trading positions while future risk depends on future positions;

·   VaR using a one-day time horizon does not fully capture the market risk of positions that cannot be liquidated or hedged within one day; and

·   the historical market risk factor data used for VaR estimation may provide only limited insight into losses that could be incurred under certain unusual market movements.

- 40 -

Non-Trading Risk

The Partnership has non-trading market risk on its foreign cash balances not needed for margin.  These balances and any market risk they may represent are immaterial.

A decline in short-term interest rates would result in a decline in the Partnership’s cash management income. This cash flow risk is not considered to be material.

Materiality, as used throughout this section, is based on an assessment of reasonably possible market movements and any associated potential losses, taking into account the leverage, optionality, and multiplier features of the Partnership’s market-sensitive instruments, in relation to the Partnership’s net assets.

Qualitative Disclosures Regarding Primary Trading Risk Exposures

The following qualitative disclosures regarding the Partnership’s market risk exposures - except for (A) those disclosures that are statements of historical fact and (B) the descriptions of how the Partnership 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 Securities Exchange Act. The Partnership’s primary market risk exposures, as well as the strategies used and to be used by Ceres and the Trading Advisors for managing such exposures, are subject to numerous uncertainties, contingencies and risks, any one of which could cause the actual results of the Partnership’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

- 41 -

changes to the risk exposures and the risk management strategies of the Partnership.  Investors must be prepared to lose all or substantially all of their investment in the Partnership.

Qualitative Disclosures Regarding Means of Managing Risk Exposure

The Partnership and the Trading Advisors, separately, attempt to manage the risk of the Partnership’s open positions in essentially the same manner in all market categories traded. Ceres attempts to manage market exposure by diversifying the Partnership’s assets among different market sectors and trading approaches through the selection of the commodity trading advisors and by daily monitoring of their performance.  In addition, the Trading Advisors establish diversification guidelines, often set in terms of the maximum margin to be committed to positions in any one market sector or market-sensitive instrument.

Ceres monitors and controls the risk of the Partnership’s non-trading instrument, cash. Cash is the only Partnership investment directed by Ceres, rather than the Trading Advisors.

Item 4.  CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of the management of Ceres, Ceres’ President (Ceres’ principal executive officer) and Chief Financial Officer (Ceres’ principal financial officer) have evaluated the effectiveness of the design and operation of the Partnership’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of March 31, 2013.  The Partnership’s disclosure controls and procedures are designed to provide reasonable assurance that information the Partnership is required to disclose in the reports that the Partnership files or submits under the Exchange Act

- 42 -

are recorded, processed and summarized and reported within the time period specified in the applicable rules and forms.  Based on this evaluation, the President and Chief Financial Officer of Ceres have concluded that the disclosure controls and procedures of the Partnership were effective at March 31, 2013.

Changes in Internal Control over Financial Reporting

There have been no changes during the period covered by this quarterly report in the Partnership’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that have ially affected or are reasonably likely to materially affect the Partnership’s internal control over financial reporting.

Limitations on the Effectiveness of Controls

Any control system, no matter how well designed and operated, can provide reasonable (not absolute) assurance that its objectives will be met.  Furthermore, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

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PART II.  OTHER INFORMATION

Item 1.  LEGAL PROCEEDINGS

Unless the context otherwise requires, for purposes of this section, the terms the “Company,” “we,” “us” and “our” mean Morgan Stanley and its consolidated subsidiaries. In addition to the matters described in the Form 10-K, and those described below, in the normal course of business, the Company has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with its activities as a global diversified financial services institution. Certain of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. In some cases, the entities that would otherwise be the primary defendants in such cases are bankrupt or in financial distress.

The Company is also involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental and self-regulatory agencies regarding the Company’s business, including, among other matters, accounting and operational matters, certain of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief.

The Company contests liability and/or the amount of damages as appropriate in each pending matter. Where available information indicates that it is probable a liability had been incurred at the date of the condensed consolidated financial statements and the Company can reasonably estimate the amount of that loss, the Company accrues the estimated loss by a charge to income.

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In many proceedings, however, it is inherently difficult to determine whether any loss is probable or even possible or to estimate the amount of any loss. The Company cannot predict with certainty if, how or when such proceedings will be resolved or what the eventual settlement, fine, penalty or other relief, if any, may be, particularly for proceedings that are in their early stages of development or where plaintiffs seek substantial or indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, determination of issues related to class certification and the calculation of damages, and by addressing novel or unsettled legal questions relevant to the proceedings in question, before a loss or additional loss or range of loss or additional loss can be reasonably estimated for any proceeding. Subject to the foregoing, the Company believes, based on current knowledge and after consultation with counsel, that the outcome of such proceedings will not have a material adverse effect on the consolidated financial condition of the Company, although the outcome of such proceedings could be material to the Company’s operating results and cash flows for a particular period depending on, among other things, the level of the Company’s revenues or income for such period.

MS&Co. is a wholly-owned, indirect subsidiary of Morgan Stanley, a Delaware holding company.  Morgan Stanley files periodic reports with the Securities and Exchange Commission as required by the Securities Exchange Act of 1934, which include current descriptions of material litigation and material proceedings and investigations, if any, by governmental and/or regulatory agencies or self-regulatory organizations concerning Morgan Stanley and its subsidiaries, including MS&Co.  As a consolidated subsidiary of Morgan Stanley, MS&Co. does not file its own periodic reports with the SEC that contain descriptions of material litigation, proceedings and investigations.  As a result, we refer you to the “Legal Proceedings” section of Morgan Stanley’s SEC 10-K filings for fiscal years 2012, 2011, 2010, 2009, and 2008.

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MS&Co. is a Delaware limited liability company with its main business office located at 1585 Broadway, New York, New York 10036.  Among other registrations and memberships, MS&Co. is registered as a futures commission merchant and is a member of the National Futures Association.

The following developments have occurred with respect to certain matters previously reported in the Form 10-K or concern new actions that have been filed since the Form 10-K:

On March 15, 2010, the Federal Home Loan Bank of San Francisco filed two complaints against the Company and other defendants in the Superior Court of the State of California. These actions are styled Federal Home Loan Bank of San Francisco v. Credit Suisse Securities (USA) LLC, et al., and Federal Home Loan Bank of San Francisco v. Deutsche Bank Securities Inc. et al., respectively. Amended complaints filed on June 10, 2010 allege that defendants made untrue statements and material omissions in connection with the sale to plaintiff of a number of mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The amount of certificates allegedly sold to plaintiff by the Company in these cases was approximately $704 million and $276 million, respectively. The complaints raise claims under both the federal securities laws and California law and seek, among other things, to rescind the plaintiff's purchase of such certificates.  On July 29, 2011 and September 8, 2011, the court presiding over both actions sustained defendants' demurrers with respect to claims brought under the Securities Act, and overruled defendants' demurrers with respect to all other claims. At March 25, 2013, the current unpaid balance of the mortgage pass-through certificates at issue in these cases was approximately $356 million, and the certificates had incurred actual losses of approximately $1.7 million. Based on currently available information, the Company believes it could incur a loss up to the difference between the $356 million unpaid

- 46 -

balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against the Company, plus pre- and post-judgment interest, fees and costs. The Company may be entitled to be indemnified for some of these losses and to an offset for interest received by the plaintiff prior to a judgment.

On July 9, 2010 and February 11, 2011, Cambridge Place Investment Management Inc. filed two separate complaints against the Company and other defendants in the Superior Court of the Commonwealth of Massachusetts, both styled Cambridge Place Investment Management Inc. v. Morgan Stanley & Co., Inc., et al. The complaints assert claims on behalf of certain clients of plaintiff's affiliates and allege that defendants made untrue statements and material omissions in the sale of a number of mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly issued by the Company or sold to plaintiff's affiliates' clients by the Company in the two matters was approximately $344 million. The complaints raise claims under the Massachusetts Uniform Securities Act and seek, among other things, to rescind the plaintiff's purchase of such certificates.  On October 14, 2011, plaintiffs filed an amended complaint in each action. On November 22, 2011, defendants filed a motion to dismiss the amended complaints. On March 12, 2012, the court denied defendants' motion to dismiss with respect to plaintiff's standing to bring suit. Defendants sought interlocutory appeal from that decision on April 11, 2012. On April 26, 2012, defendants filed a second motion to dismiss for failure to state a claim upon which relief can be granted, which the court denied, in substantial part, on October 2, 2012. Based on currently available information, the Company believes it could incur a loss for these actions of up to the difference between the as yet undetermined unpaid balance of these certificates (plus any losses

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incurred) and their fair market value at the time of a judgment against the Company, plus pre- and post-judgment interest, fees and costs. The Company may be entitled to be indemnified for some of these losses and to an offset for interest received by the plaintiff prior to a judgment.

On July 15, 2010, China Development Industrial Bank (“CDIB”) filed a complaint against the Company, which is styled China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al. and is pending in the Supreme Court of the State of New York, New York County (“Supreme Court of NY”). The complaint relates to a $275 million credit default swap referencing the super senior portion of the STACK 2006-1 CDO. The complaint asserts claims for common law fraud, fraudulent inducement and fraudulent concealment and alleges that the Company misrepresented the risks of the STACK 2006-1 CDO to CDIB, and that the Company knew that the assets backing the CDO were of poor quality when it entered into the credit default swap with CDIB. The complaint seeks compensatory damages related to the approximately $228 million that CDIB alleges it has already lost under the credit default swap, rescission of CDIB's obligation to pay an additional $12 million, punitive damages, equitable relief, fees and costs. On February 28, 2011, the court presiding over this action denied the Company's motion to dismiss the complaint and on March 21, 2011, the Company appealed that order.  On July 7, 2011, the appellate court affirmed the lower court's decision denying the motion to dismiss. Based on currently available information, the Company believes it could incur a loss of up to approximately $240 million plus pre- and post-judgment interest, fees and costs.

On October 15, 2010, the Federal Home Loan Bank of Chicago filed a complaint against the Company and other defendants in the Circuit Court of the State of Illinois styled Federal Home Loan Bank

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of Chicago v. Bank of America Funding Corporation et al. The complaint alleges that defendants made untrue statements and material omissions in the sale to plaintiff of a number of mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans.  The total amount of certificates allegedly sold to plaintiff by the Company in this action was approximately $203 million.  The complaint raises claims under Illinois law and seeks, among other things, to rescind the plaintiff's purchase of such certificates. On March 24, 2011, the court granted plaintiff leave to file an amended complaint. On May 27, 2011, defendants filed a motion to dismiss the amended complaint, which motion was denied on September 19, 2012. The Company filed its answer on December 21, 2012. At March 25, 2013, the current unpaid balance of the mortgage pass-through certificates at issue in this case was approximately $103 million and certain certificates had incurred actual losses of approximately $700,000. Based on currently available information, the Company believes it could incur a loss up to the difference between the $103 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against the Company, plus pre- and post-judgment interest, fees and costs. The Company may be entitled to be indemnified for some of these losses and to an offset for interest received by the plaintiff prior to a judgment.

On July 18, 2011, the Western and Southern Life Insurance Company and certain affiliated companies filed a complaint against the Company and other defendants in the Court of Common Pleas in Ohio, styled Western and Southern Life Insurance Company, et al. v. Morgan Stanley Mortgage Capital Inc., et al. An amended complaint was filed on April 2, 2012 and alleges that defendants made untrue statements and material omissions in the sale to plaintiffs of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The amount of the certificates allegedly sold to plaintiffs by the

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Company was approximately $153 million. The amended complaint raises claims under the Ohio Securities Act, federal securities laws, and common law and seeks, among other things, to rescind the plaintiffs' purchases of such certificates. On May 21, 2012, the Company filed a motion to dismiss the amended complaint, which motion was denied on August 3, 2012. The court has set a trial date of November 2013. At March 25, 2013, the current unpaid balance of the mortgage pass-through certificates at issue in this case was approximately $122 million, and the certificates had incurred actual losses of approximately $55,000. Based on currently available information, the Company believes it could incur a loss up to the difference between the $122 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against the Company, plus post-judgment interest, fees and costs. The Company may be entitled to an offset for interest received by the plaintiff prior to a judgment.

On September 2, 2011, the Federal Housing Finance Agency (“FHFA”), as conservator for Fannie Mae and Freddie Mac, filed 17 complaints against numerous financial services companies, including the Company. A complaint against the Company and other defendants was filed in the Supreme Court of NY, styled Federal Housing Finance Agency, as Conservator v. Morgan Stanley et al. The complaint alleges that defendants made untrue statements and material omissions in connection with the sale to Fannie Mae and Freddie Mac of residential mortgage pass-through certificates with an original unpaid balance of approximately $11 billion. The complaint raises claims under federal and state securities laws and common law and seeks, among other things, rescission and compensatory and punitive damages. On September 26, 2011, defendants removed the action to the United States District Court for the Southern District of New York and on October 26, 2011, the FHFA moved to remand the action back to the Supreme Court of NY. On May 11, 2012, plaintiff withdrew its motion to remand. On July 13, 2012, the Company filed a motion to dismiss the

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complaint, which motion was denied in large part on November 19, 2012. Trial is currently scheduled to begin in January 2015. At March 25, 2013, the current unpaid balance of the mortgage pass-through certificates at issue in these cases was approximately $2.87 billion, and the certificates had incurred actual losses of approximately $54 million. Based on currently available information, the Company believes it could incur a loss up to the difference between the $2.87 billion unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against the Company, plus pre- and post-judgment interest, fees and costs. The Company may be entitled to be indemnified for some of these losses and to an offset for interest received by the plaintiff prior to a judgment.

On April 25, 2012, The Prudential Insurance Company of America and certain affiliates filed a complaint against the Company and certain affiliates in the Superior Court of the State of New Jersey styled The Prudential Insurance Company of America, et al. v. Morgan Stanley, et al. The complaint alleges that defendants made untrue statements and material omissions in connection with the sale to plaintiffs of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sponsored, underwritten and/or sold by the Company is approximately $1 billion. The complaint raises claims under the New Jersey Uniform Securities Law, as well as common law claims of negligent misrepresentation, fraud and tortious interference with contract and seeks, among other things, compensatory damages, punitive damages, rescission and rescissionary damages associated with plaintiffs' purchases of such certificates. On October 16, 2012, plaintiffs filed an amended complaint which, among other things, increases the total amount of the certificates at issue by approximately $80 million, adds causes of action for fraudulent inducement, equitable fraud, aiding and abetting fraud, and violations of the New Jersey RICO statute, and includes a claim for treble damages. On January 23, 2013,

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defendants filed a motion to dismiss the amended complaint, which was denied on March 15, 2013. At March 25, 2013, the current unpaid balance of the mortgage pass-through certificates at issue in these cases was approximately $598 million, and the certificates had not yet incurred actual losses. Based on currently available information, the Company believes it could incur a loss up to the difference between the $598 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against the Company, plus pre- and post-judgment interest, fees and costs. The Company may be entitled to be indemnified for some of these losses and to an offset for interest received by the plaintiff prior to a judgment.

On August 25, 2008, the Company and two ratings agencies were named as defendants in a purported class action related to securities issued by a structured investment vehicle called Cheyne Finance PLC and Cheyne Finance LLC (together, the “Cheyne SIV”). The case was styled Abu Dhabi Commercial Bank, et al. v. Morgan Stanley & Co. Inc., et al. The complaint alleged, among other things, that the ratings assigned to the securities issued by the Cheyne SIV were false and misleading, including because the ratings did not accurately reflect the risks associated with the subprime residential mortgage backed securities held by the Cheyne SIV. The plaintiffs asserted allegations of aiding and abetting fraud and negligent misrepresentation relating to approximately $852 million of securities issued by the Cheyne SIV.  On April 24, 2013, the parties reached an agreement to settle the case, and on April 26, 2013, the court dismissed the action with prejudice. The settlement does not cover certain claims that were previously dismissed.

Item 1A.  RISK FACTORS

There have been no material changes from the risk factors previously referenced in the Partnership’s Report on Form 10-K for the fiscal year ended December 31, 2012.

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Item 4.  MINE SAFETY DISCLOSURES

Not applicable.

Item 6. EXHIBITS

31.01 Certification of President of Ceres Managed Futures LLC, the General Partner of the Partnership, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.02 Certification of Chief Financial Officer of Ceres Managed Futures LLC, the General Partner of the Partnership, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.01 Certification of President of Ceres Managed Futures LLC, the General Partner of the Partnership, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.02 Certification of Chief Financial Officer of Ceres Managed Futures LLC, the General Partner of the Partnership, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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 Document

101.PRE* XBRL Taxonomy Extension Presentation Document

101.DEF* XBRL Taxonomy Extension Definition Document

Notes to Exhibits List

*Submitted electronically herewith.

Pursuant to applicable securities laws and regulations, the Partnership is deemed to have complied with the reporting obligation relating to the submission of interactive data files in Exhibit 101 to this report and is not subject to liability under any anti-fraud provisions of the federal securities laws as long as the Partnership has made a good faith attempt to comply with the submission requirements and promptly amends the interactive data files after becoming aware that the interactive data files fails to comply with the submission requirements. Users of this data are advised that, pursuant to Rule 406T, these interactive data files are deemed not filed and otherwise are not subject to liability.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Morgan Stanley Smith Barney Spectrum Select L.P.
	(Registrant)
	By:	Ceres Managed Futures LLC
		(General Partner)
May 13, 2013	By:	/s/ Damian George
		Damian George
		Chief Financial Officer and Director

The General Partner which signed the above is the only party authorized to act for the registrant.  The registrant has no principal executive officer, principal financial officer, controller, or principal accounting officer and has no Board of Directors.

- 54 -

EX-31.01

EXHIBIT 31.01

CERTIFICATIONS

I, Walter Davis, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Morgan Stanley Smith Barney Spectrum Select L.P.;

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 the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as 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 the registrant and 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 the 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 the 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 the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the 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 the 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 the registrant’s internal control over financial reporting.

Date:  May 13, 2013	By:	/s/Walter Davis
		Walter Davis
		President and Director,
		Ceres Managed Futures LLC,
		General Partner of the registrant

EX-31.02

EXHIBIT 31.02

CERTIFICATIONS

I, Damian George, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Morgan Stanley Smith Barney Spectrum Select L.P.;

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 the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as 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 the registrant and 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 the 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 the 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 the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the 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 the 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 the registrant’s internal control over financial reporting.

Date:  May 13, 2013	By:	/s/  Damian George
		Damian George
		Chief Financial Officer and Director,
		Ceres Managed Futures LLC,
		General Partner of the registrant

EX-32.01

EXHIBIT 32.01

CERTIFICATION OF PRESIDENT PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Morgan Stanley Smith Barney Spectrum Select L.P. (the “Partnership”) on Form 10-Q for the quarter ended March 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Walter Davis, President and Director of Ceres Managed Futures LLC, the General Partner of the Partnership, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1)   The 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 Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

By:	/s/Walter Davis
Name:	Walter Davis
Title:	President  and Director of
	Ceres Managed Futures LLC,
	General Partner of the registrant
Date:	May 13, 2013

EX-32.02

EXHIBIT 32.02

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Morgan Stanley Smith Barney Spectrum Select L.P. (the “Partnership”) on Form 10-Q for the quarter ended March 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Damian George, Chief Financial Officer and Director of Ceres Managed Futures LLC, the General Partner of the Partnership, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1)   The 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 Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

By:	/s/  Damian George
Name:	Damian George
Title:	Chief Financial Officer and Director of
	Ceres Managed Futures LLC,
	General Partner of the registrant
Date:	May 13, 2013

XML

Derivatives and Hedging, Effect of Trading Activities on the Statements of Financial Condition (Details) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Futures and Forward Contracts [Abstract]
Unrealized Currency Loss	$ (1,193,869)		$ (1,203,865)
Total net unrealized gain (loss) on open contracts	1,943,202		2,551,354
Effect of Trading Activities on Statements of Income [Abstract]
Trading results	8,270,913	4,206,552
Unrealized currency gain (loss)	9,995	(11,618)
Net realized	8,879,065	7,053,178
Net change in unrealized	(608,152)	(2,846,626)
Total Trading Results	8,270,913	4,206,552
Commodity [Member]
Effect of Trading Activities on Statements of Income [Abstract]
Trading results	(3,166,726)	4,284,224
Equity [Member]
Effect of Trading Activities on Statements of Income [Abstract]
Trading results	9,169,842	11,205,332
Foreign Currency [Member]
Effect of Trading Activities on Statements of Income [Abstract]
Trading results	2,978,916	(4,820,324)
Interest Rate [Member]
Effect of Trading Activities on Statements of Income [Abstract]
Trading results	(721,114)	(6,451,062)
Futures and Forward Contracts [Member]
Futures and Forward Contracts [Abstract]
Net Unrealized Gain/(Loss)	3,137,071		3,755,219
Futures and Forward Contracts [Member] | Commodity [Member]
Futures and Forward Contracts [Abstract]
Net Unrealized Gain/(Loss)	1,101,515		(340,563)
Average number of contracts outstanding	3,828		4,025
Futures and Forward Contracts [Member] | Equity [Member]
Futures and Forward Contracts [Abstract]
Net Unrealized Gain/(Loss)	346,801		1,289,382
Average number of contracts outstanding	2,108		1,915
Futures and Forward Contracts [Member] | Foreign Currency [Member]
Futures and Forward Contracts [Abstract]
Net Unrealized Gain/(Loss)	(292,401)		2,799,117
Average number of contracts outstanding	4,227		5,689
Futures and Forward Contracts [Member] | Interest Rate [Member]
Futures and Forward Contracts [Abstract]
Net Unrealized Gain/(Loss)	1,981,156		7,283
Average number of contracts outstanding	5,845		9,810
Futures and Forward Contracts [Member] | Long [Member]
Futures and Forward Contracts [Abstract]
Unrealized gain	5,052,437		5,244,757
Unrealized loss	(2,062,151)		(3,168,433)
Futures and Forward Contracts [Member] | Long [Member] | Commodity [Member]
Futures and Forward Contracts [Abstract]
Unrealized gain	871,355		763,693
Unrealized loss	(451,710)		(1,021,268)
Futures and Forward Contracts [Member] | Long [Member] | Equity [Member]
Futures and Forward Contracts [Abstract]
Unrealized gain	1,394,117		1,842,840
Unrealized loss	(1,183,100)		(517,175)
Futures and Forward Contracts [Member] | Long [Member] | Foreign Currency [Member]
Futures and Forward Contracts [Abstract]
Unrealized gain	591,719		1,878,922
Unrealized loss	(349,281)		(1,022,609)
Futures and Forward Contracts [Member] | Long [Member] | Interest Rate [Member]
Futures and Forward Contracts [Abstract]
Unrealized gain	2,195,246		759,302
Unrealized loss	(78,060)		(607,381)
Futures and Forward Contracts [Member] | Short [Member]
Futures and Forward Contracts [Abstract]
Unrealized gain	2,493,948		3,251,449
Unrealized loss	(2,347,163)		(1,572,554)
Futures and Forward Contracts [Member] | Short [Member] | Commodity [Member]
Futures and Forward Contracts [Abstract]
Unrealized gain	1,987,357		1,051,860
Unrealized loss	(1,305,487)		(1,134,848)
Futures and Forward Contracts [Member] | Short [Member] | Equity [Member]
Futures and Forward Contracts [Abstract]
Unrealized gain	136,938		0
Unrealized loss	(1,154)		(36,283)
Futures and Forward Contracts [Member] | Short [Member] | Foreign Currency [Member]
Futures and Forward Contracts [Abstract]
Unrealized gain	300,960		2,196,364
Unrealized loss	(835,799)		(253,560)
Futures and Forward Contracts [Member] | Short [Member] | Interest Rate [Member]
Futures and Forward Contracts [Abstract]
Unrealized gain	68,693		3,225
Unrealized loss	$ (204,723)		$ (147,863)

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Related Party Transactions

3 Months Ended

Mar. 31, 2013

Related Party Transactions [Abstract]

Related Party Transactions

3.  Related Party Transactions

The Partnership's cash is on deposit in commodity brokerage accounts with Morgan Stanley.  Monthly, MS&Co. pays the Partnership interest income on 100% of the average daily equity maintained in cash in the Partnership's account during each month at a rate equal to 80% of the monthly average of the 4-week U.S. Treasury bill discount rate.  MS&Co. retains any interest earned in excess of the interest paid by MS&Co. to the Partnership.  For purposes of such interest payments, net assets do not include monies due to the Partnership on Futures Interests that have not been received.  The Partnership pays brokerage fees to MS&Co.

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Financial Highlights

3 Months Ended

Mar. 31, 2013

Financial Highlights [Abstract]

Financial Highlights

2. Financial Highlights

Financial Highlights for the quarters ended March 31, 2013 and 2012 were as follows:

	For the Quarters Ended March 31,
	2013			2012
Per Unit Operating Performance:
Net asset value, January 1:	$	27.76		$	31.24
Interest Income		–	(3)		–	(3)
Expenses		(0.56	)		(0.62	)
Realized/Unrealized Income (1)		1.18			0.46
Net Income (Loss)		0.62			(0.16	)
Net asset value, March 31:	$	28.38		$	31.08
Ratios to average net assets:
Net Investment Loss (2)		(7.9	)%		(8.0	)%
Expenses before  Incentive Fees (2)		8.0	%		8.0	%
Expenses after Incentive Fees (2)		8.0	%		8.0	%
Net Income (Loss) (2)		9.3	%		(1.9	) %
Total return before incentive fees		2.2	%		(0.5	)%
Total return after incentive fees		2.2	%		(0.5	)%

(1) Realized/Unrealized Income (Loss) is a balancing amount necessary to reconcile the change in net asset value per Unit with the other per Unit information.

(2) Annualized (except for incentive fees, if applicable).

(3) Amounts less than $0.005 per Unit.

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STATEMENTS OF FINANCIAL CONDITION (Unaudited) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Trading Equity:
Unrestricted cash	$ 166,881,286	$ 171,164,335
Restricted cash	26,440,851	27,192,268
Total cash	193,322,137	198,356,603
Net unrealized gain (loss) on open contracts	1,943,202	2,551,354
Total Trading Equity	195,265,339	200,907,957
Interest receivable (MS&Co.)	11,606	6,032
Total Assets	195,276,945	200,913,989
Liabilities:
Redemptions payable	3,739,157	3,642,807
Accrued brokerage fees (MS&Co.)	957,030	994,527
Accrued management fees	290,756	302,574
Total Liabilities	4,986,943	4,939,908
Partners' Capital:
Limited Partners (6,633,154.296 and 6,979,883.723 Units, respectively)	188,279,807	193,760,270
General Partner (70,819.769 and 79,748.769 Units, respectively)	2,010,195	2,213,811
Total Partners' Capital	190,290,002	195,974,081
Total Liabilities and Partners' Capital	195,276,945	200,913,989
NET ASSET VALUE PER UNIT (in dollars per unit)	$ 28.38	$ 27.76
MS&Co. [Member]
Trading Equity:
Net unrealized gain (loss) on open contracts	1,943,202	3,072,667
MSIP [Member]
Trading Equity:
Net unrealized gain (loss) on open contracts	$ 0	$ (521,313)

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STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (Unaudited) (USD $)	Limited Partners [Member]	General Partner [Member]	Total
Balance at Dec. 31, 2011	$ 283,036,281	$ 3,108,127	$ 286,144,408
Balance (in units) at Dec. 31, 2011			9,158,617.900
Increase/(decrease) in Partners' Capital [Roll Forward]
Net Income (Loss)	(1,297,416)	(16,665)	(1,314,081)
Redemptions	(15,911,073)	0	(15,911,073)
Redemptions (in units)			(504,926.429)
Balance at Mar. 31, 2012	265,827,792	3,091,462	268,919,254
Balance (in units) at Mar. 31, 2012			8,653,691.471
Balance at Dec. 31, 2012	193,760,270	2,213,811	195,974,081
Balance (in units) at Dec. 31, 2012			7,059,632.492
Increase/(decrease) in Partners' Capital [Roll Forward]
Net Income (Loss)	4,416,893	46,396	4,463,289
Redemptions	(9,897,356)	(250,012)	(10,147,368)
Redemptions (in units)			(355,658.427)
Balance at Mar. 31, 2013	$ 188,279,807	$ 2,010,195	$ 190,290,002
Balance (in units) at Mar. 31, 2013			6,703,974.065

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Related Party Transactions (Details)	3 Months Ended
	Mar. 31, 2013
Related Party Transactions [Abstract]
Cash holdings percentage for margin requirements used in interest income calculation (in hundredths)	100.00%
Percentage of monthly average of 4-week U.S. treasury bill discount rate as rate from partnership interest income (in hundredths)	80.00%

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Derivatives and Hedging (Details) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Offsetting of Derivative Assets [Line Items]
Gross Amounts Recognized	$ 5,052,437	$ 5,244,757
Gross Amounts Offset in the Statements of Financial Condition	(2,062,151)	(3,168,433)
Net Amounts Presented in the Statement of Financial Condition	2,990,286	2,076,324
Offsetting of Derivative Liabilities [Line Items]
Gross Amounts Recognized	2,493,948	3,251,449
Gross Amounts Offset in the Statement of Financial Condition	(2,347,163)	(1,572,554)
Net Amounts Presented in the Statement of Financial Condition	146,785	1,678,895
Unrealized Currency Gain	(1,193,869)	(1,203,865)
Total net unrealized gain (loss) on open contracts	1,943,202	2,551,354
Future [Member]
Offsetting of Derivative Assets [Line Items]
Gross Amounts Recognized	4,928,553	4,891,012
Gross Amounts Offset in the Statements of Financial Condition	(1,853,529)	(2,689,281)
Net Amounts Presented in the Statement of Financial Condition	3,075,024	2,201,731
Offsetting of Derivative Liabilities [Line Items]
Gross Amounts Recognized	2,446,797	2,985,462
Gross Amounts Offset in the Statement of Financial Condition	(1,889,288)	(1,480,054)
Net Amounts Presented in the Statement of Financial Condition	557,509	1,505,408
Forward Contracts [Member]
Offsetting of Derivative Assets [Line Items]
Gross Amounts Recognized	123,884	353,745
Gross Amounts Offset in the Statements of Financial Condition	(208,622)	(479,152)
Net Amounts Presented in the Statement of Financial Condition	(84,738)	(125,407)
Offsetting of Derivative Liabilities [Line Items]
Gross Amounts Recognized	47,151	265,987
Gross Amounts Offset in the Statement of Financial Condition	(457,875)	(92,500)
Net Amounts Presented in the Statement of Financial Condition	$ (410,724)	$ 173,487

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Organization

3 Months Ended

Mar. 31, 2013

Organization [Abstract]

Organization

1.  Organization

Morgan Stanley Smith Barney Spectrum Select L.P. is a Delaware limited partnership organized in 1991 to engage primarily in the speculative trading of futures contracts, options on futures and forward contracts, and forward contracts on physical commodities and other commodity interests, including, but not limited to, foreign currencies, financial instruments, metals, energy, and agricultural products (collectively, "Futures Interests") (refer to Note 4. Financial Instruments).  The Partnership is one of the Morgan Stanley Spectrum series of funds, comprised of the Partnership, Morgan Stanley Smith Barney Spectrum Currency and Commodity L.P., Morgan Stanley Smith Barney Spectrum Global Balanced L.P., Morgan Stanley Smith Barney Spectrum Strategic L.P., and Morgan Stanley Smith Barney Spectrum Technical L.P. (collectively, the "Spectrum Series").

Ceres Managed Futures LLC, a Delaware limited liability company, acts as a general partner ("Ceres" or the "General Partner") and commodity pool operator for the Partnership.  Ceres is a wholly-owned subsidiary of Morgan Stanley Smith Barney Holdings LLC ("MSSBH").  MSSBH is majority-owned indirectly by Morgan Stanley and minority-owned indirectly by Citigroup Inc. ("Citigroup").  Morgan Stanley expects to purchase, subject to regulatory approvals, Citigroup's remaining interest in MSSBH.  Morgan Stanley Smith Barney LLC is doing business as Morgan Stanley Wealth Management ("Morgan Stanley Wealth Management").  This entity, where the Partnership continues to maintain a cash account, previously acted as a non-clearing commodity broker for the Partnership.  The clearing commodity brokers are Morgan Stanley & Co. LLC ("MS&Co.") and Morgan Stanley & Co. International plc ("MSIP").  MS&Co. also acts as the counterparty on all trading of foreign currency forward contracts.  Morgan Stanley Capital Group Inc. ("MSCG") acts as the counterparty on all trading of options on foreign currency forward contracts.  MSIP serves as the commodity broker for trades on the London Metal Exchange ("LME").  Morgan Stanley Wealth Management is a principal subsidiary of MSSBH.  MS&Co., MSIP, and MSCG are wholly-owned subsidiaries of Morgan Stanley.  The trading advisors to the Partnership are Altis Partners (Jersey) Limited ("Altis"), EMC Capital Management, Inc. ("EMC"), Graham Capital Management, L.P. ("Graham"), Northfield Trading L.P. ("Northfield"), Rabar Market Research, Inc. ("Rabar"), and Sunrise Capital Management, Inc. ("Sunrise Capital") (each individually,  a "Trading Advisor", or collectively, the "Trading Advisors").

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STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical)	Mar. 31, 2013	Dec. 31, 2012
LIABILITIES AND PARTNERS' CAPITAL
Limited Partners, Units (in units)	6,633,154.296	6,979,883.723
General Partner, Units (in units)	70,819.769	79,748.769

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Financial Highlights (Tables)

3 Months Ended

Mar. 31, 2013

Financial Highlights [Abstract]

Financial Information Additional Disclosure

Financial Highlights for the quarters ended March 31, 2013 and 2012 were as follows:

	For the Quarters Ended March 31,
	2013			2012
Per Unit Operating Performance:
Net asset value, January 1:	$	27.76		$	31.24
Interest Income		–	(3)		–	(3)
Expenses		(0.56	)		(0.62	)
Realized/Unrealized Income (1)		1.18			0.46
Net Income (Loss)		0.62			(0.16	)
Net asset value, March 31:	$	28.38		$	31.08
Ratios to average net assets:
Net Investment Loss (2)		(7.9	)%		(8.0	)%
Expenses before  Incentive Fees (2)		8.0	%		8.0	%
Expenses after Incentive Fees (2)		8.0	%		8.0	%
Net Income (Loss) (2)		9.3	%		(1.9	) %
Total return before incentive fees		2.2	%		(0.5	)%
Total return after incentive fees		2.2	%		(0.5	)%

(1) Realized/Unrealized Income (Loss) is a balancing amount necessary to reconcile the change in net asset value per Unit with the other per Unit information.

(2) Annualized (except for incentive fees, if applicable).

(3) Amounts less than $0.005 per Unit.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT LP
Entity Central Index Key	0000873799
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	6,633,154.296
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2013

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Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2013

Financial Instruments [Abstract]

Net Unrealized Gain on Open Contracts

The net unrealized gains (losses) on open contracts, reported as a component of "Trading Equity" on the Statements of Financial Condition, and their longest contract maturities were as follows:

	Net Unrealized Gains/(Losses) on Open Contracts							Longest Maturities
Date	Exchange-Traded		Off-Exchange-Traded			Total		Exchange-Traded	Off-Exchange-Traded
		$		$		$
Mar. 31, 2013		2,438,664		(495,462	)		1,943,202	Dec. 2016	Jun. 2013
Dec. 31, 2012		2,503,274		48,080			2,551,354	Mar. 2017	Mar. 2013

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CONDENSED SCHEDULE OF INVESTMENTS (Unaudited) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Investment Holdings [Line Items]
Net unrealized gain/(loss) on open contracts	$ 1,943,202	$ 2,551,354
Percentage of Partners' Capital (in hundredths)	1.02%	1.30%
Unrealized Currency Loss	(1,193,869)	(1,203,865)
Unrealized Currency Loss Percentage of Partners' Capital (in hundredths)	(0.63%)	(0.61%)
Contracts Purchased [Member] | Futures And Forward Contracts [Member]
Investment Holdings [Line Items]
Net unrealized gain/(loss) on open contracts	2,990,286	2,076,324
Percentage of Partners' Capital (in hundredths)	1.57%	1.05%
Contracts Purchased [Member] | Futures And Forward Contracts [Member] | Commodity Contract [Member]
Investment Holdings [Line Items]
Net unrealized gain/(loss) on open contracts	419,645	(257,575)
Percentage of Partners' Capital (in hundredths)	0.22%	(0.13%)
Contracts Purchased [Member] | Futures And Forward Contracts [Member] | Equity Contract [Member]
Investment Holdings [Line Items]
Net unrealized gain/(loss) on open contracts	211,017	1,325,665
Percentage of Partners' Capital (in hundredths)	0.11%	0.67%
Contracts Purchased [Member] | Futures And Forward Contracts [Member] | Foreign Currency [Member]
Investment Holdings [Line Items]
Net unrealized gain/(loss) on open contracts	242,438	856,313
Percentage of Partners' Capital (in hundredths)	0.13%	0.43%
Contracts Purchased [Member] | Futures And Forward Contracts [Member] | Interest Rate Contract [Member]
Investment Holdings [Line Items]
Net unrealized gain/(loss) on open contracts	2,117,186	151,921
Percentage of Partners' Capital (in hundredths)	1.11%	0.08%
Contracts Sold [Member] | Futures And Forward Contracts [Member]
Investment Holdings [Line Items]
Net unrealized gain/(loss) on open contracts	146,785	1,678,895
Percentage of Partners' Capital (in hundredths)	0.08%	0.86%
Contracts Sold [Member] | Futures And Forward Contracts [Member] | Commodity Contract [Member]
Investment Holdings [Line Items]
Net unrealized gain/(loss) on open contracts	681,870	(82,988)
Percentage of Partners' Capital (in hundredths)	0.36%	(0.04%)
Contracts Sold [Member] | Futures And Forward Contracts [Member] | Equity Contract [Member]
Investment Holdings [Line Items]
Net unrealized gain/(loss) on open contracts	135,784	(36,283)
Percentage of Partners' Capital (in hundredths)	0.07%	(0.02%)
Contracts Sold [Member] | Futures And Forward Contracts [Member] | Foreign Currency [Member]
Investment Holdings [Line Items]
Net unrealized gain/(loss) on open contracts	(534,839)	1,942,804
Percentage of Partners' Capital (in hundredths)	(0.28%)	0.99%
Contracts Sold [Member] | Futures And Forward Contracts [Member] | Interest Rate Contract [Member]
Investment Holdings [Line Items]
Net unrealized gain/(loss) on open contracts	$ (136,030)	$ (144,638)
Percentage of Partners' Capital (in hundredths)	(0.07%)	(0.07%)

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Fair Value Measurements and Disclosures

3 Months Ended

Mar. 31, 2013

Fair Value Measurements and Disclosures [Abstract]

Fair Value Measurements and Disclosures

6.  Fair Value Measurements and Disclosures

Effective January 1, 2012, the Partnership adopted ASU 2011-04, "Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in the U.S. GAAP and IFRS."  The amendments within this ASU change the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements to eliminate unnecessary wording differences between U.S. GAAP and IFRS.  However, some of the amendments clarify the FASB's intent about the application of existing fair value measurement requirements and other amendments change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements.  This new guidance did not have a significant impact on the Partnership's financial statements.

On October 1, 2012, the FASB issued ASU 2012-04 "Technical Corrections and Improvements", which makes minor technical corrections and clarifications to ASC 820, "Fair Value Measurements and Disclosures". When the FASB issued Statement 157 (codified in ASC 820), it conformed the use of the term "fair value" in certain pre-Codification standards but not others. ASU 2012-04 conforms the term's use throughout the ASC "to fully reflect the fair value measurement and disclosure requirements" of ASC 820. The ASU also amends the requirements that must be met for an investment company to qualify for the exemption from presenting a statement of cash flows. Specifically, it eliminates the requirements that substantially all of an entity's investments be carried at "market value" and that the investments be highly liquid. Instead, it requires substantially all of the entity's investments to be carried at "fair value" and classified as Level 1 or Level 2 measurements under ASC 820. The amendments are effective for fiscal periods beginning after December 15, 2012. The adoption of this ASU did not have a significant impact on the Partnership's financial statements.

Financial instruments are carried at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.  Assets and liabilities carried at fair value are classified and disclosed in the following three levels: Level 1 - unadjusted quoted market prices in active markets for identical assets and liabilities; Level 2 - inputs other than unadjusted quoted market prices that are observable for the asset or liability, either directly or indirectly (including unadjusted quoted market prices for similar investments, interest rates and credit risk); and Level 3 - unobservable inputs for the asset or liability (including the Partnership's own assumptions used in determining the fair value of investments).

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy.  In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.  The Partnership's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment.

The Partnership's assets and liabilities measured at fair value on a recurring basis are summarized in the following tables by the type of inputs applicable to the fair value measurements.

March 31, 2013	Unadjusted Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
		$		$			$		$
Assets
Futures		7,375,350		–			n/a		7,375,350
Forwards		–		171,035			n/a		171,035
Total Assets		7,375,350		171,035			n/a		7,546,385
Liabilities
Futures		3,742,817		–			n/a		3,742,817
Forwards		–		666,497			n/a		666,497
Total Liabilities		3,742,817		666,497			n/a		4,409,314
Unrealized currency loss									(1,193,869	)
*Net fair value		3,632,533		(495,462	)		n/a		1,943,202

December 31, 2012	Unadjusted Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
		$		$	$			$
Assets
Futures		7,876,474		–		n/a		7,876,474
Forwards		–		619,732		n/a		619,732
Total Assets		7,876,474		619,732		n/a		8,496,206
Liabilities
Futures		4,169,335		–		n/a		4,169,335
Forwards		–		571,652		n/a		571,652
Total Liabilities		4,169,335		571,652		n/a		4,740,987
Unrealized currency loss								(1,203,865	)
*Net fair value		3,707,139		48,080		n/a		2,551,354

* This amount comprises the "Net unrealized gain on open contracts" on the Statements of Financial Condition.

During the period January 1, 2013 to March 31, 2013, and the twelve months ended December 31, 2012, there were no Level 3 assets and liabilities and there were no transfers of assets or liabilities between Level 1 and Level 2.

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Derivatives and Hedging

3 Months Ended

Mar. 31, 2013

Derivatives and Hedging [Abstract]

Derivatives and Hedging

5.  Derivatives and Hedging

The Partnership's objective is to profit from speculative trading in Futures Interests.  Therefore, the Trading Advisors for the Partnership will take speculative positions in Futures Interests where they feel the best profit opportunities exist for their trading strategy.  As such, the average number of contracts outstanding in absolute quantities (the total of the open long and open short positions) has been presented as a part of the volume disclosure, as position direction is not an indicative factor in such volume disclosures.  With regard to foreign currency forward trades, each notional quantity amount has been converted to an equivalent contract based upon an industry convention.

On January 1, 2013, the Partnership adopted Accounting Standards Update ("ASU") 2011-11, "Disclosure about Offsetting Assets and Liabilities" and ASU 2013-01, "Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities".  ASU 2011-11 created a new disclosure requirement about the nature of an entity's rights to setoff and the related arrangements associated with its financial instruments and derivative instruments, while ASU 2013-01 clarified the types of instruments and transactions that are subject to the offsetting disclosure requirements established by ASU 2011-11.  Entities are required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The objective of these disclosures is to facilitate comparison between those entities that prepare their financial statements on the basis of accounting principles generally accepted in the United States of America ("U.S. GAAP") and those entities that prepare their financial statements on the basis of International Financial Reporting Standards ("IFRS"). The new guidance did not have a significant impact on the Partnership's financial statements.

The following tables summarize the valuation of the Partnership's investments as of March 31, 2013 and December 31, 2012, respectively.

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

	Gross Amounts Recognized		Gross Amounts Offset in the Statement of Financial Condition			Net Amounts Presented in the Statement of Financial Condition
		$		$			$
Assets
Futures		4,928,553		(1,853,529	)		3,075,024
Forwards		123,884		(208,622	)		(84,738	)
Total Assets		5,052,437		(2,062,151	)		2,990,286
Liabilities
Futures		2,446,797		(1,889,288	)		557,509
Forwards		47,151		(457,875	)		(410,724	)
Total Liabilities		2,493,948		(2,347,163	)		146,785
Unrealized currency loss							(1,193,869	)
Total net unrealized gain on open contracts							1,943,202

Offsetting of Derivative Assets and Liabilities as of December 31, 2012:

	Gross Amounts Recognized		Gross Amounts Offset in the Statement of Financial Condition			Net Amounts Presented in the Statement of Financial Condition
		$		$			$
Assets
Futures		4,891,012		(2,689,281	)		2,201,731
Forwards		353,745		(479,152	)		(125,407	)
Total Assets		5,244,757		(3,168,433	)		2,076,324
Liabilities
Futures		2,985,462		(1,480,054	)		1,505,408
Forwards		265,987		(92,500	)		173,487
Total Liabilities		3,251,449		(1,572,554	)		1,678,895
Unrealized currency loss							(1,203,865	)
Total net unrealized gain on open contracts							2,551,354

The Effect of Trading Activities on the Statements of Financial Condition as of March 31, 2013:

Futures and Forward Contracts	Long Unrealized Gain		Long Unrealized Loss			Short Unrealized Gain		Short Unrealized Loss			Net Unrealized Gain/(Loss)			Average number of contracts outstanding for the three months (absolute quantity)
		$		$			$		$		$
Commodity		871,355		(451,710	)		1,987,357		(1,305,487	)		1,101,515			3,828
Equity		1,394,117		(1,183,100	)		136,938		(1,154	)		346,801			2,108
Foreign currency		591,719		(349,281	)		300,960		(835,799	)		(292,401	)		4,227
Interest rate		2,195,246		(78,060	)		68,693		(204,723	)		1,981,156			5,845
Total		5,052,437		(2,062,151	)		2,493,948		(2,347,163	)		3,137,071
Unrealized currency loss												(1,193,869	)
Total net unrealized gain on open contracts												1,943,202

The Effect of Trading Activities on the Statements of Financial Condition as of December 31, 2012:

Futures and Forward Contracts	Long Unrealized Gain		Long Unrealized Loss			Short Unrealized Gain		Short Unrealized Loss			Net Unrealized  Gain/(Loss)			Average number of contracts outstanding for the year (absolute quantity)
		$		$			$		$		$
Commodity		763,693		(1,021,268	)		1,051,860		(1,134,848	)		(340,563	)		4,025
Equity		1,842,840		(517,175	)		–		(36,283	)		1,289,382			1,915
Foreign currency		1,878,922		(1,022,609	)		2,196,364		(253,560	)		2,799,117			5,689
Interest rate		759,302		(607,381	)		3,225		(147,863	)		7,283			9,810
Total		5,244,757		(3,168,433	)		3,251,449		(1,572,554	)		3,755,219
Unrealized currency loss												(1,203,865	)
Total net unrealized gain on open contracts												2,551,354

The following tables summarize the net trading results of the Partnership for the quarters ended March 31, 2013 and 2012, respectively.

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

Type of Instrument	$
Commodity	(3,166,726	)
Equity	9,169,842
Foreign currency	2,978,916
Interest rate	(721,114	)
Unrealized currency gain	9,995
Total	8,270,913

Line Items on the Statements of Income and Expenses for the Quarter Ended March 31, 2013
Trading Results	$
Net realized	8,879,065
Net change in unrealized	(608,152	)
Total Trading Results	8,270,913

The Effect of Trading Activities on the Statements of Income and Expenses for the Quarter Ended March 31, 2012 included in Total Trading Results:

Type of Instrument	$
Commodity	4,284,224
Equity	11,205,332
Foreign currency	(4,820,324	)
Interest rate	(6,451,062	)
Unrealized currency loss	(11,618	)
Total	4,206,552

Line Items on the Statements of Income and Expenses for the Quarter Ended March 31, 2012:

Trading Results	$
Net realized	7,053,178
Net change in unrealized	(2,846,626	)
Total Trading Results	4,206,552

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Financial Instruments (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Investment Holdings [Line Items]
Net unrealized gain (loss) on open contracts	$ 1,943,202	$ 2,551,354
Cash held by acting commodity futures brokers administrating open contracts	195,760,801	200,859,877
Exchange-Traded [Member]
Investment Holdings [Line Items]
Net unrealized gain (loss) on open contracts	2,438,664	2,503,274
Longest maturity date	Dec. 31, 2016	Mar. 31, 2017
Off-Exchange-Traded [Member]
Investment Holdings [Line Items]
Net unrealized gain (loss) on open contracts	$ (495,462)	$ 48,080
Longest maturity date	Jun. 30, 2013	Mar. 31, 2013

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Derivatives and Hedging (Tables)

3 Months Ended

Mar. 31, 2013

Derivatives and Hedging [Abstract]

Offsetting Of Derivative Assets And Liabilities

The following tables summarize the valuation of the Partnership's investments as of March 31, 2013 and December 31, 2012, respectively.

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

	Gross Amounts Recognized		Gross Amounts Offset in the Statement of Financial Condition			Net Amounts Presented in the Statement of Financial Condition
		$		$			$
Assets
Futures		4,928,553		(1,853,529	)		3,075,024
Forwards		123,884		(208,622	)		(84,738	)
Total Assets		5,052,437		(2,062,151	)		2,990,286
Liabilities
Futures		2,446,797		(1,889,288	)		557,509
Forwards		47,151		(457,875	)		(410,724	)
Total Liabilities		2,493,948		(2,347,163	)		146,785
Unrealized currency loss							(1,193,869	)
Total net unrealized gain on open contracts							1,943,202

Offsetting of Derivative Assets and Liabilities as of December 31, 2012:

	Gross Amounts Recognized		Gross Amounts Offset in the Statement of Financial Condition			Net Amounts Presented in the Statement of Financial Condition
		$		$			$
Assets
Futures		4,891,012		(2,689,281	)		2,201,731
Forwards		353,745		(479,152	)		(125,407	)
Total Assets		5,244,757		(3,168,433	)		2,076,324
Liabilities
Futures		2,985,462		(1,480,054	)		1,505,408
Forwards		265,987		(92,500	)		173,487
Total Liabilities		3,251,449		(1,572,554	)		1,678,895
Unrealized currency loss							(1,203,865	)
Total net unrealized gain on open contracts							2,551,354

Schedule of Effect of Trading Activities on the Statements of Financial Condition

The Effect of Trading Activities on the Statements of Financial Condition as of March 31, 2013:

Futures and Forward Contracts	Long Unrealized Gain		Long Unrealized Loss			Short Unrealized Gain		Short Unrealized Loss			Net Unrealized Gain/(Loss)			Average number of contracts outstanding for the three months (absolute quantity)
		$		$			$		$		$
Commodity		871,355		(451,710	)		1,987,357		(1,305,487	)		1,101,515			3,828
Equity		1,394,117		(1,183,100	)		136,938		(1,154	)		346,801			2,108
Foreign currency		591,719		(349,281	)		300,960		(835,799	)		(292,401	)		4,227
Interest rate		2,195,246		(78,060	)		68,693		(204,723	)		1,981,156			5,845
Total		5,052,437		(2,062,151	)		2,493,948		(2,347,163	)		3,137,071
Unrealized currency loss												(1,193,869	)
Total net unrealized gain on open contracts												1,943,202

The Effect of Trading Activities on the Statements of Financial Condition as of December 31, 2012:

Futures and Forward Contracts	Long Unrealized Gain		Long Unrealized Loss			Short Unrealized Gain		Short Unrealized Loss			Net Unrealized  Gain/(Loss)			Average number of contracts outstanding for the year (absolute quantity)
		$		$			$		$		$
Commodity		763,693		(1,021,268	)		1,051,860		(1,134,848	)		(340,563	)		4,025
Equity		1,842,840		(517,175	)		–		(36,283	)		1,289,382			1,915
Foreign currency		1,878,922		(1,022,609	)		2,196,364		(253,560	)		2,799,117			5,689
Interest rate		759,302		(607,381	)		3,225		(147,863	)		7,283			9,810
Total		5,244,757		(3,168,433	)		3,251,449		(1,572,554	)		3,755,219
Unrealized currency loss												(1,203,865	)
Total net unrealized gain on open contracts												2,551,354

Schedule of Effect of Trading Activities on the Statements of Income and Expenses

The following tables summarize the net trading results of the Partnership for the quarters ended March 31, 2013 and 2012, respectively.

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

Type of Instrument	$
Commodity	(3,166,726	)
Equity	9,169,842
Foreign currency	2,978,916
Interest rate	(721,114	)
Unrealized currency gain	9,995
Total	8,270,913

Line Items on the Statements of Income and Expenses for the Quarter Ended March 31, 2013
Trading Results	$
Net realized	8,879,065
Net change in unrealized	(608,152	)
Total Trading Results	8,270,913

The Effect of Trading Activities on the Statements of Income and Expenses for the Quarter Ended March 31, 2012 included in Total Trading Results:

Type of Instrument	$
Commodity	4,284,224
Equity	11,205,332
Foreign currency	(4,820,324	)
Interest rate	(6,451,062	)
Unrealized currency loss	(11,618	)
Total	4,206,552

Line Items on the Statements of Income and Expenses for the Quarter Ended March 31, 2012:

Trading Results	$
Net realized	7,053,178
Net change in unrealized	(2,846,626	)
Total Trading Results	4,206,552

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Income Taxes

3 Months Ended

Mar. 31, 2013

Income Taxes [Abstract]

Income Taxes

9.  Income Taxes

No provision for income taxes has been made in the accompanying financial statements, as partners are individually responsible for reporting income or loss based upon their respective share of the Partnership's revenues and expenses for income tax purposes.  The Partnership files U.S. federal and state tax returns.

The guidance issued by the FASB on income taxes, clarifies the accounting for uncertainty in income taxes recognized in the Partnership's financial statements, and prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken.  The Partnership has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements as of March 31, 2013 and December 31, 2012.  If applicable, the Partnership recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in other expenses in the Statements of Income and Expenses.  Generally, the 2009 through 2012 tax years remain subject to examination by U.S. federal and most state tax authorities.  No income tax returns are currently under examination.

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Other Pronouncements

3 Months Ended

Mar. 31, 2013

Other Pronouncements [Abstract]

Other Pronouncements

7.  Other Pronouncements

In October 2011, the FASB issued a proposed ASU intended to improve and converge financial reporting by setting forth consistent criteria for determining whether an entity is an investment company.  Under longstanding U.S. GAAP, investment companies carry all of their investments at fair value, even if they hold a controlling interest in another company.  The primary changes being proposed by the FASB relate to which entities would be considered investment companies as well as certain disclosure and presentation requirements.  In addition to the changes to the criteria for determining whether an entity is an investment company, the FASB also proposes that an investment company be required to consolidate another investment company if it holds a controlling financial interest in the entity.  In August 2012, the FASB updated the proposed ASU to state that entities regulated under the Investment Company Act of 1940 should qualify to be investment companies within the proposed investment company guide.  The Partnership will evaluate the impact that this proposed update would have on the financial statements once the pronouncement is issued.

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Restricted and Unrestricted Cash

3 Months Ended

Mar. 31, 2013

Restricted and Unrestricted Cash [Abstract]

Restricted and Unrestricted Cash

8.  Restricted and Unrestricted Cash

As reflected on the Partnership's Statements of Financial Condition, restricted cash equals the cash portion of assets on deposit to meet margin requirements plus the cash required to offset unrealized losses on foreign currency forwards and options contracts and offset unrealized losses on offset LME positions.  All of these amounts are maintained separately.  Cash that is not classified as restricted cash is therefore classified as unrestricted cash.

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Subsequent Events

3 Months Ended

Mar. 31, 2013

Subsequent Events [Abstract]

Subsequent Events

10.  Subsequent Events

Management of Ceres performed its evaluation of subsequent events through the date of filing, and has determined that there were no subsequent events requiring adjustment of or disclosure in the financial statements.

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Financial Highlights (Details) (USD $)	3 Months Ended
	Mar. 31, 2013		Mar. 31, 2012
Per Unit operating performance [Abstract]
Net asset value, period start (in dollars per unit)	$ 27.76		$ 31.24
Interest Income (in dollars per unit)	$ 0	[1]	$ 0	[1]
Amounts less than (in dollars per unit)	$ 0.005	[1]	$ 0.005	[1]
Expenses (in dollars per unit)	$ (0.56)		$ (0.62)
Realized/Unrealized Income (in dollars per unit)	$ 1.18	[2]	$ 0.46	[2]
Net Loss (in dollars per unit)	$ 0.62	[3]	$ (0.16)	[3]
Net asset value, period end (in dollars per unit)	$ 28.38		$ 31.08
Ratios to average net assets [Abstract]
Net Investment Loss (in hundredths)	(7.90%)	[4]	(8.00%)	[4]
Expenses before Incentive Fees (in hundredths)	8.00%	[4]	8.00%	[4]
Expenses after Incentive Fees (in hundredths)	8.00%	[4]	8.00%	[4]
Net Income (Loss) (in hundredths)	9.30%	[4]	(1.90%)	[4]
Total return before incentive fees (in hundredths)	2.20%		(0.50%)
Total return after incentive fees (in hundredths)	2.20%		(0.50%)

[1] Amounts less than $0.005 per Unit.

[2] Realized/Unrealized Income (Loss) is a balancing amount necessary to reconcile the change in net asset value per Unit with the other per Unit information.

[3] Based on change in net asset value per Unit.

[4] Annualized (except for incentive fees, if applicable).

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Fair Value Measurements and Disclosures (Details) (Fair Value Measured on a Recurring Basis [Member], USD $)	Mar. 31, 2013		Dec. 31, 2012
Assets [Abstract]
Futures	$ 7,375,350		$ 7,876,474
Forwards	171,035		619,732
Total Assets	7,546,385		8,496,206
Liabilities [Abstract]
Futures	3,742,817		4,169,335
Forwards	666,497		571,652
Total Liabilities	4,409,314		4,740,987
Assets and Liabilities Measured at Fair Value [Abstract]
Unrealized currency gain (loss)	(1,193,869)		(1,203,865)
Net fair value	1,943,202	[1]	2,551,354	[1]
Unadjusted Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets [Abstract]
Futures	7,375,350		7,876,474
Forwards	0		0
Total Assets	7,375,350		7,876,474
Liabilities [Abstract]
Futures	3,742,817		4,169,335
Forwards	0		0
Total Liabilities	3,742,817		4,169,335
Assets and Liabilities Measured at Fair Value [Abstract]
Net fair value	3,632,533	[1]	3,707,139	[1]
Significant Other Observable Inputs (Level 2) [Member]
Assets [Abstract]
Futures	0		0
Forwards	171,035		619,732
Total Assets	171,035		619,732
Liabilities [Abstract]
Futures	0		0
Forwards	666,497		571,652
Total Liabilities	666,497		571,652
Assets and Liabilities Measured at Fair Value [Abstract]
Net fair value	(495,462)	[1]	48,080	[1]
Significant Unobservable Inputs (Level 3) [Member]
Assets [Abstract]
Futures
Forwards
Total Assets
Liabilities [Abstract]
Futures
Forwards
Total Liabilities
Assets and Liabilities Measured at Fair Value [Abstract]
Net fair value		[1]		[1]

[1] This amount comprises the "Net unrealized gain on open contracts" on the Statements of Financial Condition.

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STATEMENTS OF INCOME AND EXPENSES (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2013		Mar. 31, 2012
INVESTMENT INCOME
Interest income (MS&Co. & Morgan Stanley Wealth Management)	$ 32,526		$ 30,128
EXPENSES
Brokerage fees (MS&Co.)	2,945,216		4,250,290
Management fees	894,934		1,300,471
Total Expenses	3,840,150		5,550,761
NET INVESTMENT LOSS	(3,807,624)		(5,520,633)
Trading profit (loss):
Net realized	8,879,065		7,053,178
Net change in unrealized	(608,152)		(2,846,626)
Total Trading Results	8,270,913		4,206,552
NET INCOME (LOSS)	4,463,289		(1,314,081)
NET INCOME (LOSS) ALLOCATION
Limited Partners	4,416,893		(1,297,416)
General Partner	$ 46,396		$ (16,665)
NET INCOME (LOSS) PER UNIT*
Limited Partners (in dollars per unit)	$ 0.62	[1]	$ (0.16)	[1]
General Partner (in dollars per unit)	$ 0.62	[1]	$ (0.16)	[1]
WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING (in units)	6,942,874.184		9,011,174.635

[1] Based on change in net asset value per Unit.

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Financial Instruments

3 Months Ended

Mar. 31, 2013

Financial Instruments [Abstract]

Financial Instruments

4.  Financial Instruments

The Partnership trades Futures Interests.  Futures and forwards represent contracts for delayed delivery of an instrument at a specified date and price.  Futures Interests are open commitments until settlement date, at which time they are realized.  They are valued at fair value, generally on a daily basis, and the unrealized gains and losses on open contracts (the difference between contract trade price and market price) are reported in the Statements of Financial Condition as a net unrealized gain or loss on open contracts.  The resulting net change in unrealized gains and losses is reflected in the "Net change in unrealized trading profit (loss)" on open contracts from one period to the next on the Statements of Income and Expenses.  The fair value of exchange-traded futures, options and forward contracts is determined by the various futures exchanges, and reflects the settlement price for each contract as of the close of business on the last business day of the reporting period.  The fair value of foreign currency forward contracts is extrapolated on a forward basis from the spot prices quoted as of approximately 3:00 P.M. (E.T.) of the last business day of the reporting period from various exchanges.  The fair value of non-exchange-traded foreign currency option contracts is calculated by applying an industry standard model application for options valuation of foreign currency options, using as input the spot prices, interest rates, and option implied volatilities quoted as of approximately 3:00 P.M. (E.T.) on the last business day of the reporting period.  Risk arises from changes in the value of these contracts and the potential inability of counterparties to perform under the terms of the contracts.  There are numerous factors which may significantly influence the fair value of these contracts, including interest rate volatility.

The fair value of exchange-traded contracts is based on the settlement price quoted by the exchange on the day with respect to which fair value is being determined.  If an exchange-traded contract could not have been liquidated on such day due to the operation of daily limits or other rules of the exchange, the settlement price will be equal to the settlement price on the first subsequent day on which the contract could be liquidated.  The fair value of off-exchange-traded contracts is based on the fair value quoted by the counterparty.

The Partnership's contracts are accounted for on a trade-date basis.  The Partnership accounts for its derivative investments as described in Note 5. Derivatives and Hedgingas required by the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC").  A derivative is defined as a financial instrument or other contract that has all three of the following characteristics:

1) a) One or more "underlyings" and b) one or more "notional amounts" or payment provisions or both;

2) Requires no initial net investment or a smaller initial net investment than would be required for other types of contracts that would be expected to have a similar response relative to changes in market factors; and

3) Terms that require or permit net settlement.

Generally, derivatives include futures, forward, swaps or options contracts, and other financial instruments with similar characteristics such as caps, floors, and collars.

The net unrealized gains (losses) on open contracts, reported as a component of "Trading Equity" on the Statements of Financial Condition, and their longest contract maturities were as follows:

	Net Unrealized Gains/(Losses) on Open Contracts							Longest Maturities
Date	Exchange-Traded		Off-Exchange-Traded			Total		Exchange-Traded	Off-Exchange-Traded
		$		$		$
Mar. 31, 2013		2,438,664		(495,462	)		1,943,202	Dec. 2016	Jun. 2013
Dec. 31, 2012		2,503,274		48,080			2,551,354	Mar. 2017	Mar. 2013

In general, the risks associated with off-exchange-traded contracts are greater than those associated with exchange-traded contracts because of the greater risk of default by the counterparty to an off-exchange-traded contract.  The Partnership has credit risk associated with counterparty nonperformance.  As of the date of the financial statements, the credit risk associated with the instruments in which the Partnership trades is limited to the unrealized gains (losses) amounts reflected in the Partnership's Statements of Financial Condition.  The net unrealized gains (losses) on open contracts are further disclosed gross by type of contract and corresponding fair value level in Note 6. Fair Value Measurements and Disclosures.

The Partnership also has credit risk because MS&Co., MSIP, and/or MSCG act as the futures commission merchants or the counterparties with respect to most of the Partnership's assets. Exchange-traded futures, exchange-traded forward, and exchange-traded futures-styled options contracts are fair valued on a daily basis, with variations in value settled on a daily basis.  MS&Co. and MSIP, each acting as a commodity futures broker for the Partnership's exchange-traded futures, exchange-traded forward, and exchange-traded futures-styled options contracts, are required, pursuant to regulations of the Commodity Futures Trading Commission ("CFTC"), to segregate from their own assets, and for the sole benefit of their commodity customers, total cash held by them with respect to exchange-traded futures, exchange-traded forward, and exchange-traded futures-styled options contracts, including an amount equal to the net  unrealized gains (losses) on all open exchange-traded futures, exchange-traded forward, and exchange-traded futures-styled options contracts, which in the aggregate, totaled $195,760,801 and $200,859,877 at March 31, 2013 and December 31, 2012, respectively. With respect to the Partnership's off-exchange-traded forward currency contracts and forward currency options contracts, there are no daily settlements of variation in value, nor is there any requirement that an amount equal to the net unrealized gains (losses) on such contracts be segregated.  However, the Partnership is required to meet margin requirements equal to the net unrealized loss on open forward currency contracts in the Partnership accounts with the counterparty, which is accomplished by daily maintenance of the cash balance in a custody account held at MS&Co. for the benefit of MS&Co.  With respect to those off-exchange-traded forward currency contracts, the Partnership is at risk to the ability of MS&Co., the sole counterparty on all such contracts, to perform.  With respect to those off-exchange-traded forward currency options contracts, the Partnership is at risk to the ability of MSCG, the sole counterparty on all such contracts, to perform.  The Partnership has a netting agreement with each counterparty.  The primary terms are based on industry standard master agreements.  These agreements, which seek to reduce both the Partnership's and the counterparties' exposure on off-exchange-traded forward currency contracts, including options on such contracts, should materially decrease the Partnership's credit risk in the event of MS&Co.'s or MSCG's bankruptcy or insolvency.

The General Partner monitors and attempts to control the Partnership's risk exposure on a daily basis through financial, credit and risk management monitoring systems, and accordingly, believes that it has effective procedures for evaluating and limiting the credit and market risks to which the Partnership may be subject.  These monitoring systems generally allow the General Partner to statistically analyze actual trading results with risk adjusted performance indicators and correlation statistics.  In addition, online monitoring systems provide account analysis of futures, forwards and options positions by sector, margin requirements, gain and loss transactions and collateral positions.

The futures, forwards and options traded by the Partnership involve varying degrees of related market risk.  Market risk is often dependent upon changes in the level or volatility of interest rates, exchange rates, and prices of financial instruments and commodities, factors that result in frequent changes in the fair value of the Partnership's open positions, and consequently in its earnings, whether realized or unrealized, and cash flow.  Gains and losses on open positions of exchange-traded futures, exchange-traded forward, and exchange-traded futures-styled options contracts are settled daily through variation margin.  Gains and losses on off-exchange-traded forward currency contracts are settled upon termination of the contract.  Gains and losses on off-exchange-traded forward currency options contracts are settled on an agreed-upon settlement date.

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Fair Value Measurements and Disclosures (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Measurements and Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The Partnership's assets and liabilities measured at fair value on a recurring basis are summarized in the following tables by the type of inputs applicable to the fair value measurements.

March 31, 2013	Unadjusted Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
		$		$			$		$
Assets
Futures		7,375,350		–			n/a		7,375,350
Forwards		–		171,035			n/a		171,035
Total Assets		7,375,350		171,035			n/a		7,546,385
Liabilities
Futures		3,742,817		–			n/a		3,742,817
Forwards		–		666,497			n/a		666,497
Total Liabilities		3,742,817		666,497			n/a		4,409,314
Unrealized currency loss									(1,193,869	)
*Net fair value		3,632,533		(495,462	)		n/a		1,943,202

December 31, 2012	Unadjusted Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
		$		$	$			$
Assets
Futures		7,876,474		–		n/a		7,876,474
Forwards		–		619,732		n/a		619,732
Total Assets		7,876,474		619,732		n/a		8,496,206
Liabilities
Futures		4,169,335		–		n/a		4,169,335
Forwards		–		571,652		n/a		571,652
Total Liabilities		4,169,335		571,652		n/a		4,740,987
Unrealized currency loss								(1,203,865	)
*Net fair value		3,707,139		48,080		n/a		2,551,354

* This amount comprises the "Net unrealized gain on open contracts" on the Statements of Financial Condition.