Ceres Orion L.P.

Notes to Financial Statements

(Unaudited)

The General Partner is not aware of any material changes to any of the trading programs discussed above or in Note 1, “Organization” during the fiscal quarter ended ~~March 31,~~June 30, 2023.

The Funds’ and the Partnership’s trading of futures, forward, swap and option contracts, if applicable, on commodities is done primarily on U.S. and foreign commodity exchanges. The Funds and the Partnership engage in such trading through commodity brokerage accounts maintained with MS&Co.

Generally, a member in the Funds withdraws all or part of its capital contribution and undistributed profits, if any, from the Funds as of the end of any month (the “Redemption Date”) after a request has been made to the Trading Manager at least three days in advance of the Redemption Date. Such withdrawals are classified as a liability when the member elects to redeem and informs the Funds. However, a member may request a withdrawal as of the end of any day if such request is received by the Trading Manager at least three days in advance of the proposed withdrawal day.

Management fees, ongoing selling agent fees, the General Partner fee and incentive fees are charged at the Partnership level, except for management and incentive fees payable to Transtrend, which are charged at the Transtrend Master level. Clearing fees are borne by the Funds and allocated to the Funds’ members, including the Partnership. Clearing fees are also borne by the Partnership directly. Professional fees are borne by the Funds and allocated to the Partnership and are also charged directly at the Partnership level.

As of ~~March 31,~~June 30, 2023, the Partnership owned 100.0% of Transtrend Master, approximately 72.4% of NL Master and approximately ~~69.9%~~61.1% of Drakewood Master. At December 31, 2022, the Partnership owned 100.0% of Transtrend Master, approximately 71.4% of NL Master and approximately 68.2% of Drakewood Master. It is the Partnership’s intention to continue to invest in the Funds. The performance of the Partnership is directly affected by the performance of the Funds. Expenses to limited partners as a result of investment in the Funds are approximately the same as they would be if the Partnership traded directly and redemption rights are not affected.

Summarized information reflecting the total assets, liabilities and members’ capital of the Funds is shown in the following tables:


	June 30, 2023
	Total Assets		Total Liabilities		Total Capital
Transtrend Master	$	79,820,104	$	876,724	$	78,943,380
NL Master		43,517,964		132,722		43,385,242
Drakewood Master		56,416,107		3,125,483		53,290,624

March 31, 2023


Total Assets

Total Liabilities

Total Capital

Transtrend Master      $

71,591,275      $     4,786,045      $     66,805,230
NL Master    42,491,968    144,197    42,347,771
Drakewood Master    46,416,079    1,570,960    44,845,119

December 31, 2022


Total Assets

Total Liabilities

Total Capital

Transtrend Master      $ 72,198,137      $ 1,095,672      $ 71,102,465
NL Master    47,648,689    2,382,869    45,265,820
Drakewood Master    45,395,672    1,898,283    43,497,389


	December 31, 2022
	Total Assets		Total Liabilities		Total Capital
Transtrend Master	$	72,198,137	$	1,095,672	$	71,102,465
NL Master		47,648,689		2,382,869		45,265,820
Drakewood Master		45,395,672		1,898,283		43,497,389

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Ceres Orion L.P.

Notes to Financial Statements

(Unaudited)

Summarized information reflecting the net investment income (loss), total trading results and net income (loss) of the Funds is shown in the following tables:


	For the three months ended June 30, 2023
	Net Investment Income (Loss)			Total Trading Results			Net Income (Loss)
Transtrend Master	$	(99,056	)	$	14,314,732		$	14,215,676
NL Master		432,129			953,963			1,386,092
Drakewood Master		373,072			(889,597	)		(516,525	)


	For the six months ended June 30, 2023
	Net Investment Income (Loss)		Total Trading Results			Net Income (Loss)
Transtrend Master	$	70,037	$	9,816,981		$	9,887,018
NL Master		804,887		(3,492,307	)		(2,687,420	)
Drakewood Master		641,952		(1,743,275	)		(1,101,323	)


	For the three months ended June 30, 2022
	Net Investment Income (Loss)			Total Trading Results			Net Income (Loss)
Transtrend Master	$	(261,180	)	$	410,856		$	149,676
NL Master		17,036			7,158,232			7,175,268
Drakewood Master (a)		(6,189	)		(2,129,915	)		(2,136,104	)


	For the six months ended June 30, 2022
	Net Investment Income (Loss)			Total Trading Results			Net Income (Loss)
Transtrend Master	$	(3,883,677	)	$	21,478,088		$	17,594,411
NL Master		(22,788	)		13,766,600			13,743,812
Drakewood Master (a)		(6,189	)		(2,129,915	)		(2,136,104	)

(a) From May 1, 2022, commencement of operations for Drakewood Master, through June 30, 2022.

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Ceres Orion L.P.

    For the three months ended March 31, 2023


Net Investment
Income (Loss)

Total Trading
Results

Net Income
(Loss)

Transtrend Master    $       169,093    $       (4,497,751)    $       (4,328,658)
NL Master    372,758    (4,446,270)    (4,073,512)
Drakewood Master    268,880    (853,678)    (584,798)

Notes to Financial Statements

(Unaudited)

For the three months ended March 31, 2022


Net Investment
Income (Loss)

Total Trading
Results

Net Income
(Loss)

Transtrend Master    $       (3,622,497)    $       21,067,232      $       17,444,735
NL Master    (39,824)    6,608,368      6,568,544

Summarized information reflecting the Partnership’s investments in and the Partnership’s

pro-rata

share of the results of operations of the Funds are shown in the following tables:


	June 30, 2023					For the three months ended June 30, 2023
	% of Partners’ Capital							Expenses								Net Income (Loss)
Funds	% of Partners’ Capital			Fair Value		Income (Loss)		Clearing Fees		Professional Fees		Management Fees		Incentive Fee		Net Income (Loss)		Investment Objective	Redemptions Permitted

Transtrend Master		20.63	%	$	78,943,380	$	14,889,271	$	134,268	$	18,019	$	153,219	$	368,091	$	14,215,674	Commodity Portfolio	Monthly
NL Master		8.24	%		31,513,868		1,031,185		16,580		11,699		-		-		1,002,906	Commodity Portfolio	Monthly
Drakewood Master		8.53	%		32,654,309		(199,359)		35,996		10,824		-		-		(246,179)	Commodity Portfolio	Monthly

Total				$	143,111,557	$	15,721,097	$	186,844	$	40,542	$	153,219	$	368,091	$	14,972,401


	March 31, 2023					For the three months ended March 31, 2023																		June 30, 2023								For the six months ended June 30, 2023
	% of Partners’ Capital							Expenses								Net Income (Loss)								% of Partners’ Capital												Expenses															Net Income (Loss)
Funds	% of Partners’ Capital			Fair Value		Income (Loss)		Clearing Fees		Professional Fees		Management Fees		Incentive Fee		Net Income (Loss)			Investment Objective		Redemptions Permitted			% of Partners’ Capital			Fair Value				Income (Loss)				Clearing Fees				Professional Fees				Management Fees				Incentive Fee				Net Income (Loss)			Investment Objective		Redemptions Permitted

Transtrend Master		17.91	%	$	66,805,230	$	(4,004,926)	$	108,009	$	17,950	$	161,996	$	35,777		$	(4,328,658)			Commodity Portfolio		Monthly			20.63	%		$	78,943,380			$	10,884,345			$	242,277			$	35,969			$	315,215			$	403,868		$	9,887,016			Commodity Portfolio		Monthly
NL Master		8.24	%		30,743,933		(2,923,677)		11,884		11,649		-		-		(2,947,210)			Commodity Portfolio		Monthly			8.24	%			31,513,868				(1,892,492)				28,464				23,348				-				-			(1,944,304)			Commodity Portfolio		Monthly
Drakewood Master		8.42	%		31,412,670		(343,593)		52,934		11,979		-		-		(408,506)			Commodity Portfolio		Monthly			8.53	%			32,654,309				(542,952)				88,930				22,803				-				-			(654,685)			Commodity Portfolio		Monthly

Total				$	128,961,833	$	(7,272,196)	$	172,827	$	41,578	$	161,996	$	35,777	$	(7,684,374)											$	143,111,557			$	8,448,901			$	359,671			$	82,120			$	315,215			$	403,868		$	7,288,027


	December 31, 2022					For the three months ended June 30, 2022
	% of Partners’ Capital							Expenses								Net Income (Loss)
Funds	% of Partners’ Capital			Fair Value		Income (Loss)		Clearing Fees		Professional Fees		Management Fees		Incentive Fee		Net Income (Loss)		Investment Objective	Redemptions Permitted

Transtrend Master		18.56	%	$	71,102,465	$	481,931	$	105,117	$	17,000	$	195,166	$	14,972	$	149,676	Commodity Portfolio	Monthly
NL Master		8.47	%		32,422,644		5,216,399		11,416		11,010		-		-		5,193,973	Commodity Portfolio	Monthly
Drakewood Master (a)		7.77	%		29,751,951		(1,510,108)		21,804		12,288		-		-		(1,544,200)	Commodity Portfolio	Monthly

Total				$	133,277,060	$	4,188,222	$	138,337	$	40,298	$	195,166	$	14,972	$	3,799,449

    December 31, 2022

For the three months ended March 31, 2022

% of

  Partners’
Capital

Expenses

Net

  Income

(Loss)

Funds

  Fair Value

  Income

(Loss)

  Clearing
Fees

  Professional
Fees

  Management
Fees

  Incentive
Fee

    Investment

Objective

    Redemptions
Permitted
Transtrend Master
   18.56

% $ 71,102,465    $ 21,068,106    $ 138,975    $ 17,000    $ 144,756    $ 3,322,640    $ 17,444,735    Commodity Portfolio    Monthly
NL Master
   8.47

% 32,422,644    4,845,280    22,387    11,219    -        -        4,811,674    Commodity Portfolio    Monthly
Drakewood Master
(a)
   7.77

% 29,751,951    -

   -

   -

   -        -        -

   Commodity Portfolio    Monthly

Total
   $ 133,277,060    $

25,913,386    $

161,362    $

28,219    $

144,756    $

3,322,640    $

22,256,409


	December 31, 2022					For the six months ended June 30, 2022
	% of Partners’ Capital							Expenses								Net Income (Loss)
Funds	% of Partners’ Capital			Fair Value		Income (Loss)		Clearing Fees		Professional Fees		Management Fees		Incentive Fee		Net Income (Loss)		Investment Objective	Redemptions Permitted

Transtrend Master		18.56	%	$	71,102,465	$	21,550,037	$	244,092	$	34,000	$	339,922	$	3,337,612	$	17,594,411	Commodity Portfolio	Monthly
NL Master		8.47	%		32,422,644		10,061,679		33,803		22,229		—		—		10,005,647	Commodity Portfolio	Monthly
Drakewood Master (a)		7.77	%		29,751,951		(1,510,108)		21,804		12,288		—		—		(1,544,200)	Commodity Portfolio	Monthly

Total				$	133,277,060	$	30,101,608	$	299,699	$	68,517	$	339,922	$	3,337,612	$	26,055,858

(a) The Partnership first invested in Drakewood Master on May 1, 2022.

1819

Table of Contents

Ceres Orion L.P.

Notes to Financial Statements

(Unaudited)

7.	Financial Instrument Risks:

In the normal course of business, the Partnership and the Funds are parties to financial instruments with

off-balance-sheet

risk, including derivative financial instruments and derivative commodity instruments. These financial instruments may include forwards, futures, options, and swaps, whose values are based upon an underlying asset, index, or reference rate, and generally represent future commitments to exchange currencies or cash balances, or to purchase or sell other financial instruments at specific terms at specified future dates, or, in the case of derivative commodity instruments, to have a reasonable possibility to be settled in cash, through physical delivery or with another financial instrument. These instruments may be traded on an exchange, a swap execution facility or

over-the-counter

(“OTC”). Exchange-traded instruments include futures and certain standardized forward, option and swap contracts. Certain swap contracts may also be traded on a swap execution facility or OTC. OTC contracts are negotiated between contracting parties and also include certain forward and option contracts. Specific market movements of commodities or futures contracts underlying an option cannot accurately be predicted. The purchaser of an option may lose the entire premium paid for the option. The writer or seller of an option has unlimited risk. Each of these instruments is subject to various risks similar to those relating to the underlying financial instruments, including market and credit risk. In general, the risks associated with OTC contracts are greater than those associated with exchange-traded instruments because of the greater risk of default by the counterparty to an OTC contract. The General Partner estimates that at any given time approximately ~~0.4%~~0.9% to ~~1.3%~~2.2% of the Partnership’s/Funds’ contracts are traded OTC.

Futures Contracts

. The Partnership and the Funds trade futures contracts. A futures contract is a firm commitment to buy or sell a specified quantity of investments, currency or a standardized amount of a deliverable grade commodity, at a specified price on a specified future date, unless the contract is closed before the delivery date or if the delivery quantity is something where physical delivery cannot occur (such as the S&P 500 Index), whereby such contract is settled in cash. Payments (“variation margin”) may be made or received by the Partnership and the Funds each business day, depending on the daily fluctuations in the value of the underlying contracts, and are recorded as unrealized gains or losses by the Partnership and the Funds. When the contract is closed, the Partnership and the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Transactions in futures contracts require participants to make both initial margin deposits of cash or other assets and variation margin deposits, through the futures broker, with the exchange on which the contracts are traded. Net realized gains (losses) and net change in unrealized gains (losses) on futures contracts are included in the Partnership’s/Funds’ Statements of Income and Expenses.

Forward Foreign Currency Contracts.

Forward foreign currency contracts are those contracts where the Partnership and the Funds agree to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed-upon future date. Forward foreign currency contracts are valued daily, and the Partnership’s and the Funds’ net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward foreign exchange rates at the reporting date, is included in the Partnership’s/Funds’ Statements of Financial Condition. Net realized gains (losses) and net change in unrealized gains (losses) on forward foreign currency contracts are recognized in the period in which the contract is closed or the changes occur, respectively, and are included in the Partnership’s/Funds’ Statements of Income and Expenses.

London Metal Exchange Forward Contracts.

Metal contracts traded on the London Metal Exchange (“LME”) represent a firm commitment to buy or sell a specified quantity of aluminum, copper, lead, nickel, tin, zinc or other metals. LME contracts traded by the Partnership and the Funds are cash-settled based on prompt dates published by the LME. Variation margin may be made or received by the Partnership and the Funds each business day, depending on the daily fluctuations in the value of the underlying contracts, and are recorded as unrealized gains or losses by the Partnership and the Funds. A contract is considered offset when all long positions have been matched with a like number of short positions settling on the same prompt date. When the contract is closed at the prompt date, the Partnership and the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Transactions in LME contracts require participants to make both initial margin deposits of cash or other assets and variation margin deposits, through the broker, with the LME. Net realized gains (losses) and net change in unrealized gains (losses) on metal contracts are included in the Partnership’s/Funds’ Statements of Income and Expenses.

1920

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Ceres Orion L.P.

Notes to Financial Statements

(Unaudited)

Options

. The Partnership and the Funds may purchase and write (sell) both exchange-listed and OTC options on commodities or financial instruments. An option is a contract allowing, but not requiring, its holder to buy (call) or sell (put) a specific or standard commodity or financial instrument at a specified price during a specified time period. The option premium is the total price paid or received for the option contract. When the Partnership/Funds write an option, the premium received is recorded as a liability in the Partnership’s/Funds’ Statements of Financial Condition and

marked-to-market

daily. When the Partnership/Funds purchase an option, the premium paid is recorded as an asset in the Partnership’s/Funds’ Statements of Financial Condition and

marked-to-market

daily. Net realized gains (losses) and net change in unrealized gains (losses) on option contracts are included in the Partnership’s/Funds’ Statements of Income and Expenses.

As both a buyer and seller of options, the Partnership/Funds pay or receive a premium at the outset and then bear the risk of unfavorable changes in the price of the contract underlying the option. Written options expose the Partnership/Funds to potentially unlimited liability; for purchased options, the risk of loss is limited to the premiums paid. Certain written put options permit cash settlement and do not require the option holder to own the reference asset. The Partnership/Funds do not consider these contracts to be guarantees.

Futures-Style Options.

The Partnership/Funds may trade futures-style option contracts. Unlike traditional option contracts, the premiums for futures-style option contracts are not received or paid upon the onset of the trade. The premiums are recognized and received or paid as part of the sales price when the contract is closed. Similar to a futures contract, variation margin for the futures-style option contract may be made or received by the Partnership/Funds each business day, depending on the daily fluctuations in the value of the underlying contracts, and are recorded as unrealized gains or losses by the Partnership/Funds. Transactions in futures-style option contracts require participants to make both initial margin deposits of cash or other assets and variation margin deposits, through the futures broker, directly with the exchange on which the contracts are traded. Futures-style option contracts are presented as part of “Net unrealized appreciation on open futures contracts” or “Net unrealized depreciation on open futures contracts,” as applicable, in the Partnership’s/Funds’ Statements of Financial Condition. Net realized gains (losses) and net change in unrealized gains (losses) on futures-style option contracts are included in the Partnership’s/Funds’ Statements of Income and Expenses.

Market risk is the potential for changes in the value of the financial instruments traded by the Partnership/Funds due to market changes, including interest and foreign exchange rate movements and fluctuations in commodity or security prices. Market risk is directly impacted by the volatility and liquidity in the markets in which the related underlying assets are traded. The Partnership and the Funds are exposed to market risk equal to the value of the futures and forward contracts held and unlimited liability on such contracts sold short.

Credit risk is the possibility that a loss may occur due to the failure of a counterparty to perform according to the terms of a contract. The Partnership’s/Funds’ risk of loss in the event of a counterparty default is typically limited to the amounts recognized in the Partnership’s/Funds’ Statements of Financial Condition and is not represented by the contract or notional amounts of the instruments. The Partnership’s/Funds’ risk of loss is reduced through the use of legally enforceable master netting agreements with counterparties that permit the Partnership/Funds to offset unrealized gains and losses and other assets and liabilities with such counterparties upon the occurrence of certain events. The Partnership/Funds have credit risk and concentration risk as MS&Co. or an MS&Co. affiliate are counterparties or brokers with respect to the Partnership’s and the Funds’ assets. For certain OTC contracts traded by certain Funds, JPMorgan is the counterparty with respect to those assets. Credit risk with respect to exchange-traded instruments is reduced to the extent that, through MS&Co. or an MS&Co. affiliate, the Partnership’s/Funds’ counterparty is an exchange or clearing organization.

The General Partner/Trading Manager monitors and attempts to mitigate the Partnership’s/Funds’ 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/Funds may be subject. These monitoring systems generally allow the General Partner/Trading Manager to statistically analyze actual trading results with risk-adjusted performance indicators and correlation statistics. In addition, online monitoring systems provide account analysis of futures, exchange-cleared swaps, forward and option contracts by sector, margin requirements, gain and loss transactions and collateral positions.

The majority of these financial instruments mature within one year of the inception date. However, due to the nature of the Partnership’s/Funds’ business, these instruments may not be held to maturity.

The risk to the limited partners that have purchased Redeemable Units is limited to the amount of their share of the Partnership’s net assets and undistributed profits. This limited liability is a result of the organization of the Partnership as a limited partnership under New York law.

2021

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Ceres Orion L.P.

Notes to Financial Statements

(Unaudited)

In the ordinary course of business, the Partnership/Funds enter into contracts and agreements that contain various representations and warranties and which provide general indemnifications. The Partnership’s/Funds’ maximum exposure under these arrangements cannot be determined, as this could include future claims that have not yet been made against the Partnership/Funds. The General Partner/Trading Manager considers the risk of any future obligation relating to these indemnifications to be remote.

~~Since its discovery in December 2019, a new strain of coronavirus, which causes the viral disease known as~~

~~COVID-19,~~

has spread from China to many other countries, including the United States. The outbreak has been declared a pandemic by the World Health Organization, and the U.S. Health and Human Services Secretary has declared a public health emergency in the United States in response to the outbreak.

~~The~~

~~COVID-19~~

pandemic and related voluntary and government-imposed social and business restrictions has impacted global economic conditions and adversely affected various industries (including, but not limited to, transportation, hospitality and entertainment), resulting in volatility in the global financial markets, disruption in global supply chains, increased unemployment, and operational challenges such as the temporary and permanent closures of businesses,

~~sheltering-in-place~~

directives and increased remote work protocols. If the pandemic continues to be prolonged or the actions of governments and central banks are unsuccessful, including actions to facilitate the comprehensive distribution of effective vaccines, the adverse impact on the global economy will deepen.

~~Given the continuing development of this situation, it is not possible to accurately predict how the market disruptions caused by~~

~~COVID-19~~

will further impact the U.S and other world economies or the value of the Partnership’s/Funds’ investments, or for how long the effects of such events will continue. Nevertheless, the novel coronavirus continues to present material uncertainty and risk with respect to the Partnership’s/Funds’ investments and operations.

Beginning in February 2022, the United States, the United Kingdom, the European Union, and a number of other nations imposed sanctions against Russia in response to Russia’s invasion of Ukraine, and these and other governments around the world may impose additional sanctions in the future as the conflict develops. The conflict and subsequent sanctions have created volatility in the price of various commodities and may have a negative impact on business activity globally, and therefore could affect the performance of the Partnership’s/Funds’ investments. Furthermore, uncertainties regarding the conflict between the two nations and the varying involvement of the United States and other NATO countries preclude prediction as to the ultimate impact on global economic and market conditions, and, as a result, presents material uncertainty and risk with respect to the Partnership/Funds and the performance of its investments or operations, and the ability of the Partnership/Funds to achieve its investment objectives. Additionally, to the extent that investors, service providers and/or other third parties have material operations or assets in Russia, Belarus, or Ukraine, they may have their operations disrupted and/or suffer adverse consequences related to the ongoing conflict.

8.	Subsequent Events:

The General Partner evaluates events that occur after the balance sheet date but before and up until financial statements are available to be issued. The General Partner has assessed the subsequent events through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment to or disclosure in the financial

statements.

~~Item 2.~~

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

Liquidity and Capital Resources

The Partnership does not have, nor does it expect to have, any capital assets. The Partnership does not engage in sales of goods or services. Its assets are its (i) investment in the Funds, (ii) redemptions receivable from the Funds, (iii) its equity in trading account, consisting of unrestricted cash, restricted cash, net unrealized appreciation on open futures contracts, net unrealized appreciation on open forward contracts, options purchased at fair value and investment in U.S. Treasury bills at fair value, if applicable and (iv) interest receivable. Because of the low margin deposits normally required in commodity futures trading, relatively small price movements may result in substantial losses to the Partnership, through its investment in the Funds and direct investments. While substantial losses could lead to a material decrease in liquidity, no such illiquidity occurred during the ~~first~~second quarter of 2023.

The Partnership’s/Funds’ 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 option contract has increased or decreased by an amount equal to the daily limit, positions in that futures or option 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 and/or the Funds from promptly liquidating their futures or option contracts and result in restrictions on redemptions.

There is no limitation on daily price movements 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 and/or the Funds from trading in potentially profitable markets or prevent the Partnership and/or the Funds from promptly liquidating unfavorable positions in such markets, subjecting them 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 or the Funds’ assets.

Other than the risks inherent in commodity futures, forwards, options, swaps and other derivatives trading and U.S. Treasury bills and money market mutual fund securities, the Partnership and the Funds know of no trends, demands, commitments, events or uncertainties at the present time that are reasonably likely to result in the Partnership’s or the Funds’ liquidity increasing or decreasing in any material way.

The Partnership’s capital consists of the capital contributions of the partners as increased or decreased by realized and/or unrealized gains or losses on trading and by expenses, interest income, subscriptions and redemptions of Redeemable Units and distributions of profits, if any.

For the ~~three~~six months ended ~~March 31,~~June 30, 2023, the Partnership’s capital decreased ~~2.6%~~0.1% from $383,024,982 to ~~$373,099,400.~~$382,610,766. This decrease was attributable to redemptions of ~~1,796.4790~~4,015.6540 Class A limited partner Redeemable Units totaling ~~$6,566,024,~~$14,642,662, redemptions of ~~551.6900~~1,047.3910 Class Z limited partner Redeemable Units totaling ~~$806,990 and a net loss of $11,314,847,~~$1,566,196, which was partially offset by subscriptions of ~~2,395.1690~~2,733.8770 Class A limited partner Redeemable Units totaling ~~$8,719,279 and~~$9,917,279, subscriptions of ~~27.9900~~246.5010 Class Z limited partner Redeemable Units totaling ~~$43,000.~~$370,000 and a net gain of $5,507,363. Future redemptions can impact the amount of funds available for investment in subsequent periods.

Other than as discussed above, 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.

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.

Critical Accounting Policies

The preparation of financial statements in conformity with GAAP requires the General Partner to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting periods. The General Partner believes that the estimates utilized in preparing the financial statements are reasonable. Actual results could differ from those estimates. The Partnership’s significant accounting policies are described in detail in Note 2, “Basis of Presentation and Summary of Significant Accounting Policies,” of the Financial Statements.

The Partnership and the Funds record all investments at fair value in their financial statements, with changes in fair value reported as a component of net realized gains (losses) and net change in unrealized gains (losses) in the Statements of Income and Expenses.

2223

Results of Operations

During the Partnership’s ~~third~~second quarter of 2023, the net asset value per Redeemable Unit for Class A ~~decreased 2.9%~~increased 4.5% from ~~$3,618.20~~$3,511.65 to ~~$3,511.65,~~$3,669.96, as compared to an increase of ~~11.5%~~3.4% in the ~~first~~second quarter of 2022. During the Partnership’s ~~first~~second quarter of 2023, the net asset value per Redeemable Unit for Class Z ~~decreased 2.8%~~increased 4.7% from ~~$1,504.31~~$1,462.76 to ~~$1,462.76,~~$1,531.58, as compared to an increase of ~~11.7%~~3.6% in the ~~first~~second quarter of 2022. The Partnership experienced a net trading loss before fees and expenses in the first quarter of 2023 of $10,805,438. Losses were primarily attributable to the Partnership’s/Funds’ trading of commodity futures in energy, grains, livestock, metals and U.S. and ~~non-U.S.~~ ~~interest rates and were partially offset by gains in currencies, indices and softs.~~ The Partnership experienced a net trading gain before fees and expenses in the ~~first~~second quarter of 2023 of $16,994,227. Gains were primarily attributable to the Partnership’s/Funds’ trading of commodity futures in currencies, energy, indices, livestock, non-U.S. interest rates and softs and were partially offset by losses in grains, metals and U.S. interest rates. The Partnership experienced a net trading gain before fees and expenses in the second quarter of 2022 of ~~$53,043,121.~~$20,617,767. Gains were primarily attributable to the Partnership’s/Funds’ trading of commodity futures in currencies, energy, indices, U.S. and non-U.S. interest rates and were partially offset by losses in grains, livestock, metals and softs.

During the second quarter, net trading results in the agricultural markets were flat for the quarter as gains recorded in soft commodities and livestock were offset by losses in the grains and seed oils. The Partnership’s largest gains for the quarter were recorded in the currency markets from short positions in the Japanese yen as the value of the yen declined against the U.S. dollar on expectations the Bank of Japan would support its dovish monetary policy while the U.S. Federal Reserve was expected to continue its restrictive rate policy. Further currency gains for the quarter were recorded from long positions in the Mexican peso, as the value of the peso continued to strengthen versus the U.S. dollar, and from short positions in the euro against several of its higher yielding European counterparts. In global stock indices, long futures positions in Asian equity indices profited during May and June as prices rose amid economic data supporting investors’ “risk-on” stance. Further gains were recorded from long positions in European equity index futures during April and June. In global fixed income, short positions in European fixed income futures achieved gains as prices dropped throughout a majority of the quarter on expectations the European Central Bank would need to maintain its hawkish interest rate policy to combat inflation. Smaller gains were recorded in the energy sector from short futures positions in natural gas and European electricity. A portion of the gains for the second quarter was offset by losses incurred from long positions in gold and platinum futures as precious metals prices reversed lower during May on the U.S. dollar’s broader strength. Losses were also experienced from long positions in copper as prices reversed lower in April.

During the Partnership’s six months ended June 30, 2023, the net asset value per Redeemable Unit for Class A increased 1.4% from $3,618.20 to $3,669.96, as compared to an increase of 15.3% during the six months ended June 30, 2022. During the Partnership’s six months ended June 30, 2023, the net asset value per Redeemable Unit for Class Z increased 1.8% from $1,504.31 to $1,531.58, as compared to an increase of 15.7% during the six months ended June 30, 2022. The Partnership experienced a net trading gain before fees and expenses for the six months ended June 30, 2023 of $6,188,789. Gains were primarily attributable to the Partnership’s/Funds’ trading of commodity futures in currencies, indices, livestock and softs and were partially offset by losses in energy, grains, U.S. and non-U.S. interest rates and metals. The Partnership experienced a net trading gain before fees and expenses for the six months ended June 30, 2022 of $73,660,888. Gains were primarily attributable to the Partnership’s/Funds’ trading of commodity futures in currencies, energy, grains, indices, U.S. and non-U.S.interest rates ~~livestock and metals~~ and were partially offset by losses in ~~non-U.S.~~ ~~interest rates~~livestock, metals and softs.

During the first ~~quarter,~~six months of the ~~Partnership’s~~year, net trading results in the agriculturals were flat for the first six months of the year as gains recorded in soft commodities and livestock offset losses experienced in the grains. The largest profits were achieved in the currency markets from long positions in the Mexican peso as the value of the peso rallied against the U.S. dollar throughout the first half of the year on speculation the Mexican central bank would remain committed to fighting inflation. Additional currency gains were recorded during a majority of the first six months of the year from short positions in the Japanese yen against the U.S. dollar and in euro crossrate positions versus its higher yielding European counterparts. Gains were recorded in the global stock index sector during February, March, and April from short futures positions in U.S. indices and during January, February, April, and June from long futures positions in European indices as investors’ appetite for risk assets differed in the two regions. Additional gains in the sector were recorded from long futures positions in Asian equity indices and the VIX Index (U.S. equity volatility). In freight indices, gains were recorded from long positions in Baltic freight index futures as prices trended higher throughout much of the first quarter. A portion of the gains for the first six months of the year was offset by losses ~~were experienced within~~incurred in the global fixed income markets during January and March. In January, losses were recorded from short positions in European and U.S. fixed income futures as an apparent slowing of inflation growth led ~~many~~ investors to believe global central banks would be less aggressive with future interest rate hikes. During March, more notable losses were recorded in the fixed income sector from short positions in U.S. and European fixed income futures as bond buying surged in a “flight-to-quality” amid contagion concerns following the collapse of two prominent regional banks in the U.S. Additional losses during the first ~~quarter~~six months of the year were recorded in the ~~energy~~metals markets ~~during March primarily~~ from ~~long~~positions in copper futures as copper prices lacked consistent direction from February through June. Losses in the metals sector were also recorded throughout the first six months of the year from positions in platinum and silver futures. In the energies, losses resulted from short-term volatile price movement in Brent crude oil ~~as prices fell amid fears a global economic slowdown would curtail energy demand. Smaller trading losses in the energy sector were incurred from trading in coal futures~~and West Texas Intermediate crude oil throughout a majority of the ~~quarter. In the metals, losses for the~~ first quarter were recorded from positions in copper futures during February and March as copper prices generally remained range-bound. Smaller metals losses were recorded from silver futures positions as short-term price volatility in the precious metal adversely impacted trading results. A portionhalf of the Partnership’s overall losses for the first quarter was offset by gains recorded during February in the global stock index sector from long positions in European equity index futures and short futures positions in U.S. indices as investor appetites for risk assets differed in the two regions. Further profits were achieved in the currency markets from long positions in the Mexican peso as the value of the peso rallied considerably against the U.S. dollar on speculation the Mexican central bank would remain committed to raising interest rates to combat inflation. Smaller gains were also recorded from long positions in freight index futures as prices trended higher throughout much of the quarter.year.

Commodity markets are highly volatile. Broad price fluctuations and rapid inflation increase the risks involved in commodity trading, but also increase the possibility for profit. The profitability of the Partnership/Funds depends on the existence of major price trends and the ability of the Advisors to correctly identify those price trends. Price trends are influenced by, among other things, changing supply and demand relationships, weather, public health epidemics, governmental, agricultural, commercial and trade programs and policies, national and international political and economic events and changes in interest rates. To the extent that market trends exist and the Advisors are able to identify them, the Partnership/Funds expect to increase capital through operations.

As of ~~March 31,~~June 30, 2023, interest income was earned on 100% of the average daily equity maintained in cash in the Partnership’s (or the Partnership’s allocable portion of a Fund’s, except for Transtrend Master’s) brokerage account during each month at the rate equal to the monthly average of the 4-week U.S. Treasury bill discount rate. MS&Co. will pay monthly interest to Transtrend Master on 100% of the average daily equity maintained in cash in Transtrend Master’s brokerage account during each month at the rate equal to the monthly average of the 4-week U.S. Treasury bill discount rate less 0.15% during such month but in no event less than zero. When the effective rate is less than zero, no interest is earned. For the avoidance of doubt, the Partnership/Funds will not receive interest on amounts in the futures brokerage account that are committed to margin. Any interest earned on the Partnership’s and/or each Fund’s cash account in excess of the amounts described above, if any, will be retained by MS&Co. and/or shared with the General Partner. All interest earned on U.S. Treasury bills and money market mutual fund securities will be retained by the Partnership and/or the Funds, as applicable. Any interest income earned on collateral or excess cash deposited by certain of the Funds and held by JPMorgan in its capacity as such Funds’ forward foreign currency counterparty will be retained by such Funds, and the Partnership will receive its allocable portion of such interest from the applicable Fund. Interest income earned by the Partnership for the three and six months ended ~~March 31,~~June 30, 2023 increased by ~~$3,199,316~~$3,241,786 and $6,441,102, respectively, as compared to the corresponding ~~period~~periods in 2022. The increase in interest income was primarily due to higher 4-week U.S. Treasury bill discount rates along with higher average daily equity during the three and six months ended ~~March 31,~~June 30, 2023 as compared to the corresponding ~~period~~periods in 2022. Interest earned by the Partnership will increase the net asset value of the Partnership. The amount of interest income earned by the Partnership depends on (1) the average daily equity maintained in cash in the Partnership’s and/or the Funds’ accounts, (2) the amount of U.S. Treasury bills and/or money market mutual fund securities held by the Partnership and/or the Funds and (3) interest rates over which none of the Partnership, the Funds, MS&Co. or JPMorgan has control.

Certain clearing fees are based on the number of trades executed by the Advisors for the Partnership/Funds. Accordingly, they must be compared in relation to the number of trades executed during the period. Clearing fees related to direct investments for the three and six months ended ~~March 31,~~June 30, 2023 increased by ~~$119,645~~$128,449 and $248,094, respectively, as compared to the corresponding ~~period~~periods in 2022. The increase in these clearing fees was primarily due to an increase in the number of direct trades made by the Partnership during the three and six months ended ~~March 31,~~June 30, 2023 as compared to the corresponding ~~period~~periods in 2022.

Ongoing selling agent fees are calculated as a percentage of the Partnership’s adjusted net asset value for Class A Redeemable Units as of the end of each month and are affected by trading performance, subscriptions and redemptions. Ongoing selling agent fees for the three and six months ended ~~March 31,~~June 30, 2023 ~~increased~~decreased by ~~$11,433~~$73,201 and $61,768, respectively, as compared to the corresponding ~~period~~periods in 2022. The ~~increase~~decrease in ongoing selling agent fees was primarily due to ~~higher~~lower average adjusted net assets during the three and six months ended ~~March 31,~~June 30, 2023 as compared to the corresponding ~~period~~periods in 2022.

Management fees, except fees payable to Transtrend, are calculated as a percentage of the Partnership’s adjusted net asset value as of the end of each month and are affected by trading performance, subscriptions and redemptions. Accordingly, they must be compared in relation to the fluctuations in the monthly net asset values. Management fees payable to Transtrend are charged at the Transtrend Master level and are affected by trading performance, subscriptions and redemptions of Transtrend Master. Management fees for the three and six months ended ~~March 31,~~June 30, 2023 decreased by $46,219 and increased ~~by $203,314~~$157,095, respectively, as compared to the corresponding periods in 2022. The decrease in management fees was due to lower average adjusted net assets during the three months ended June 30, 2023 as compared to the corresponding period in 2022. The increase in management fees was due to higher average adjusted net assets during the ~~three~~six months ended ~~March 31,~~June 30, 2023 as compared to the corresponding period in 2022.

Fees are paid to the General Partner for administering the business and affairs of the Partnership including, among other things, (i) selecting, appointing and terminating the Partnership’s commodity trading advisors, (ii) allocating and reallocating the Partnership’s assets among the commodity trading advisors and (iii) monitoring the activities of the commodity trading advisors. These fees are calculated as a percentage of the Partnership’s adjusted net asset value as of the end of each month and are affected by trading performance, subscriptions and redemptions. Accordingly, they must be compared in relation to the fluctuations in the monthly net asset values. The General Partner fees for the three and six months ended ~~March 31,~~June 30, 2023 ~~increased~~decreased by ~~$14,216~~$74,173 and $59,957, respectively, as compared to the corresponding ~~period~~periods in 2022. The ~~increase~~decrease in the General Partner fees was due to ~~higher~~lower average adjusted net assets during the three and six months ended ~~March 31,~~June 30, 2023 as compared to the corresponding ~~period~~periods in 2022.

2425

Incentive fees paid by the Partnership are based on the new trading profits, as defined in the respective management agreements among the Partnership, the General Partner/Trading Manager and each Advisor, generated by each Advisor at the end of the quarter, calendar half year or annually, as applicable. Trading performance for the three and six months ended ~~March 31,~~June 30, 2023 resulted in incentive fees of ~~$207,989.~~$368,091 and $576,080, respectively. Trading performance for the three and six months ended ~~March 31,~~June 30, 2022 resulted in incentive fees of ~~$8,530,489.~~$3,955,499 and $12,485,988, respectively. To the extent an Advisor incurs a loss for the Partnership, the Advisor will not be paid an incentive fee until such Advisor recovers any net loss incurred by the Advisor and earns additional new trading profits for the Partnership.

In allocating the assets of the Partnership among the Advisors, the General Partner considers, among other factors, each Advisor’s past performance, trading style, volatility of markets traded and fee requirements. The General Partner may modify or terminate the allocation of assets among the Advisors and may allocate assets to additional advisors at any time.

As of June 30, 2023 and March 31, 2023, ~~and December 31, 2022,~~ the Partnership’s assets were allocated among the Advisors in the following approximate percentages:

Advisor
       March 31, 2023        March 31, 2023
  (percentage of Partners’ Capital)     December 31, 2022      December 31, 2022
  (percentage of Partners’ Capital)
Transtrend
     $ 69,804,931      19 %   $ 71,102,167      19 %
Northlander
     $ 30,744,037      8 %   $ 32,422,749      8 %
Drakewood
     $ 31,412,669      8 %   $ 29,751,950      8 %
JSCL
     $         145,781,040      39 %   $         141,906,663      37 %
Quantica
     $ 44,908,183      12 %   $ 49,389,326      13 %
Breakout
     $ 35,494,846      10 %   $ 23,680,825      6 %
Unallocated
     $ 14,953,694      4 %   $ 34,771,302      9 %

~~For additional disclosures about operational and financial risk related to the~~ ~~COVID-19~~ ~~outbreak, refer to Part II, Item 5. “Other Information.” in this Form~~ ~~10-Q.~~


			June 30, 2023					March 31, 2023
Advisor	June 30, 2023		(percentage of Partners’ Capital)			March 31, 2023		(percentage of Partners’ Capital)
Transtrend	$	78,943,081		21	%	$	69,804,931		19	%
Northlander	$	31,513,972		8	%	$	30,744,037		8	%
Drakewood	$	32,654,309		9	%	$	31,412,669		8	%
JSCL	$	142,883,769		37	%	$	145,781,040		39	%
Quantica	$	49,812,624		13	%	$	44,908,183		12	%
Breakout	$	26,859,378		7	%	$	35,494,846		10	%
Unallocated	$	19,943,633		5	%	$	14,953,694		4	%

2526

~~Item 3.~~

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

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

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

Market movements result in frequent changes in the fair value of the Partnership’s/Funds’ open contracts and, consequently, in their earnings and cash balances. The Partnership’s/Funds’ market risk is influenced by a wide variety of factors. These primarily include factors which affect energy price levels, including supply factors and weather conditions, but could also include the level and volatility of interest rates, exchange rates, equity price levels, the market value of financial instruments and contracts, the diversification effects among the Partnership’s/Funds’ open contracts and the liquidity of the markets in which they trade.

The Partnership/Funds rapidly acquire and liquidate both long and short positions in a wide range of different markets. Consequently, it is not possible to predict how a particular future market scenario will affect performance, and the Partnership’s/Funds’ past performances is not necessarily indicative of their future results.

Quantifying the Partnership’s and the Funds’ Trading Value at Risk

The following quantitative disclosures regarding the Partnership’s and the Funds’ 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, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). 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 and the Funds account for open positions on the basis of fair value accounting principles. Any loss in the market value of the Partnership’s and each Fund’s open positions is directly reflected in the Partnership’s and each Fund’s earnings and cash flow.

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

“Value at Risk” is a measure of the maximum amount which the Partnership/Funds could reasonably be expected to lose in a given market sector. However, the inherent uncertainty of the Partnership’s/Funds’ speculative trading and the recurrence in the markets traded by the Partnership/Funds of market movements far exceeding expectations could result in actual trading or non-trading losses far beyond the indicated Value at Risk or the Partnership’s/Funds’ 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 assurance or representation that the Partnership’s/Funds’ losses in any market sector will be limited to Value at Risk or by the Partnership’s/Funds’ attempts to manage their market risk.

Exchange margin requirements have been used by the Partnership/Funds as the measure of their Value at Risk. Margin requirements are set by exchanges to equal or exceed the maximum losses reasonably expected to be incurred in the fair value of any given contract in 95%-99% of any one-day interval. The margin levels are established by dealers and exchanges using historical price studies as well as an assessment of current market volatility (including the implied volatility of the options on a given futures contract) and economic fundamentals to provide a probabilistic estimate of the maximum expected near-term one-day price fluctuation.

Value at Risk tables represent a probabilistic assessment of the risk of loss in market risk sensitive instruments. JSCL, Quantica and Breakout directly trade managed accounts in the name of the Partnership. As of ~~March 31,~~June 30, 2023, Transtrend, Northlander and Drakewood traded the Partnership’s assets indirectly in master fund managed accounts established in the name of the master funds over which they had been granted limited authority to make trading decisions. The first two trading Value at Risk tables reflect the market sensitive instruments held by the Partnership directly and through its investment in the Funds. The remaining trading Value at Risk tables reflect the market sensitive instruments held by the Partnership directly (i.e. in the managed accounts in the Partnership’s name traded by JSCL, Quantica and Breakout) and indirectly by each Fund separately. There has been no material change in the trading Value at Risk information previously disclosed in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2022.

2627

The following tables indicate the trading Value at Risk associated with the Partnership’s open positions by market category as of ~~March 31,~~June 30, 2023 and December 31, 2022. As of ~~March 31,~~June 30, 2023, the Partnership’s total capitalization was ~~$373,099,400.~~$382,610,766.


March 31, 2023
						June 30, 2023
								% of Total
Market Sector	Value at Risk		% of Total Capitalization			Value at Risk		Capitalization
Currencies	$	10,970,289		2.94	%	$	13,311,050		3.48	%
Energy		13,553,514		3.63			10,789,791		2.82
Grains		6,425,966		1.72			2,437,884		0.64
Indices		12,354,069		3.31			10,599,924		2.77
Interest Rates U.S.		2,498,774		0.67			2,192,358		0.57
Interest Rates Non-U.S.		4,304,321		1.15			7,119,278		1.86
Livestock		1,201,530		0.32			984,088		0.26
Metals		6,178,442		1.66			5,382,368		1.41
Softs		5,137,715		1.38			2,610,636		0.68

Total	$	62,624,620		16.78	%	$	55,427,377		14.49	%

As of December 31, 2022, the Partnership’s total capitalization was $383,024,982.


December 31, 2022
						December 31, 2022
								% of Total
Market Sector	Value at Risk		% of Total Capitalization			Value at Risk		Capitalization
Currencies	$	8,017,784		2.09	%	$	8,017,784		2.09	%
Energy		17,436,644		4.55			17,436,644		4.55
Grains		3,938,540		1.03			3,938,540		1.03
Indices		10,050,993		2.62			10,050,993		2.62
Interest Rates U.S.		1,998,659		0.52			1,998,659		0.52
Interest Rates Non-U.S.		5,408,905		1.41			5,408,905		1.41
Livestock		1,056,578		0.28			1,056,578		0.28
Metals		4,165,258		1.09			4,165,258		1.09
Softs		3,597,942		0.94			3,597,942		0.94

Total	$	55,671,303		14.53	%	$	55,671,303		14.53	%

2728

The following tables indicate the trading Value at Risk associated with the Partnership’s direct investments and indirect investments in the Funds by market category as of ~~March 31,~~June 30, 2023 and December 31, 2022, and the highest, lowest and average values during the three months ended ~~March 31,~~June 30, 2023 and the twelve months ended December 31, 2022, as applicable. All open position trading risk exposures have been included in calculating the figures set forth below.

At ~~March 31,~~June 30, 2023, the Partnership’s Value at Risk for the portion of its assets that are traded directly was as follows:


March 31, 2023
														June 30, 2023

						Three Months Ended March 31, 2023											Three Months Ended June 30, 2023
Market Sector	Value at Risk		% of Total Capitalization			High Value at Risk		Low Value at Risk		Average Value at Risk*		Value at Risk		% of Total Capitalization			High Value at Risk		Low Value at Risk		Average Value at Risk*
Currencies	$	4,988,590		1.34	%	$	9,642,187	$	3,974,364	$	5,634,582	$	6,833,544		1.79	%	$	7,558,497	$	3,145,564	$	5,314,561
Energy		10,371,192		2.78			17,080,070		10,371,192		13,477,327		8,142,778		2.13			10,561,620		6,059,761		7,957,180
Grains		3,623,818		0.97			4,524,557		2,027,080		3,025,579		1,419,179		0.37			4,082,407		1,419,179		2,809,323
Indices		8,674,365		2.32			19,578,791		4,556,256		10,408,344		6,904,381		1.80			12,195,615		3,769,917		6,901,374
Interest Rates U.S.		921,365		0.25			5,873,265		706,775		2,411,794		1,137,364		0.30			3,471,956		373,928		1,916,888
Interest Rates Non-U.S.		1,498,036		0.40			6,606,019		1,497,961		4,179,247		4,242,945		1.11			4,242,945		1,029,342		2,187,139
Livestock		974,985		0.26			997,095		428,725		667,926		739,998		0.19			1,044,560		535,879		776,984
Metals		3,141,461		0.84			8,601,091		2,147,046		5,368,906		2,099,979		0.55			6,876,093		1,693,576		3,705,951
Softs		3,473,103		0.93			4,281,104		1,766,699		2,526,323		1,450,678		0.38			3,694,115		1,353,582		2,020,024

Total	$	37,666,915		10.09	%							$	32,970,846		8.62	%

*	* Average of daily Values at Risk.

At December 31, 2022, the Partnership’s Value at Risk for the portion of its assets that are traded directly was as follows:


December 31, 2022
														December 31, 2022

						Twelve Months Ended December 31, 2022											Twelve Months Ended December 31, 2022
Market Sector	Value at Risk		% of Total Capitalization			High Value at Risk		Low Value at Risk		Average Value at Risk*		Value at Risk		% of Total Capitalization			High Value at Risk		Low Value at Risk		Average Value at Risk*
Currencies	$	4,469,550		1.17	%	$	8,629,060	$	956,385	$	3,783,452	$	4,469,550		1.17	%	$	8,629,060	$	956,385	$	3,783,452
Energy		13,756,601		3.59			26,951,155		4,613,383		12,487,069		13,756,601		3.59			26,951,155		4,613,383		12,487,069
Grains		2,482,093		0.65			3,495,526		541,089		1,594,920		2,482,093		0.65			3,495,526		541,089		1,594,920
Indices		6,844,757		1.79			9,976,229		1,641,275		4,732,340		6,844,757		1.79			9,976,229		1,641,275		4,732,340
Interest Rates U.S.		960,055		0.25			3,641,550		287,060		1,285,637		960,055		0.25			3,641,550		287,060		1,285,637
Interest Rates Non-U.S.		3,939,176		1.03			3,939,176		530,837		1,993,174		3,939,176		1.03			3,939,176		530,837		1,993,174
Livestock		499,263		0.13			806,383		120,794		386,962		499,263		0.13			806,383		120,794		386,962
Metals		2,147,046		0.56			4,483,481		709,979		2,159,177		2,147,046		0.56			4,483,481		709,979		2,159,177
Softs		2,030,653		0.53			2,162,649		468,817		1,303,570		2,030,653		0.53			2,162,649		468,817		1,303,570

Total	$	37,129,194		9.70	%							$	37,129,194		9.70	%

*	* Annual average of daily Values at Risk.

2829

At ~~March 31,~~June 30, 2023, Transtrend Master’s total capitalization was ~~$66,805,230~~$78,943,380 and the Partnership owned 100.0% of Transtrend Master. As of ~~March 31,~~June 30, 2023, Transtrend Master’s Value at Risk for its assets (including the portion of the Partnership’s assets allocated to Transtrend for trading) was as follows:


March 31, 2023
														June 30, 2023

						Three Months Ended March 31, 2023											Three Months Ended June 30, 2023
Market Sector	Value at Risk		% of Total Capitalization			High Value at Risk		Low Value at Risk		Average Value at Risk*		Value at Risk		% of Total Capitalization			High Value at Risk		Low Value at Risk		Average Value at Risk*
Currencies	$	5,836,946		8.74	%	$	6,678,596	$	3,414,047	$	5,016,565	$	6,411,439		8.12	%	$	7,669,295	$	6,003,695	$	6,970,503
Energy		1,313,764		1.97			1,538,558		506,523		1,154,643		1,431,409		1.81			1,792,882		1,167,167		1,483,284
Grains		2,802,148		4.19			2,823,270		1,417,389		2,128,650		1,018,705		1.29			2,939,261		1,018,705		2,496,937
Indices		3,679,704		5.51			4,404,360		3,043,810		3,701,283		3,695,543		4.68			4,046,608		3,111,030		3,513,682
Interest Rates U.S.		1,577,409		2.36			2,803,620		751,752		1,357,389		1,054,994		1.34			1,738,363		608,998		1,044,672
Interest Rates Non-U.S.		2,806,285		4.20			3,640,714		1,468,501		2,325,902		2,876,333		3.64			4,004,932		2,156,382		3,059,319
Livestock		226,545		0.34			612,425		216,040		457,706		244,090		0.31			294,470		222,750		260,970
Metals		692,826		1.04			1,153,395		382,213		860,363		622,230		0.79			1,178,456		573,484		854,850
Softs		1,664,612		2.49			1,988,310		1,039,191		1,583,385		1,159,958		1.47			1,835,301		1,157,902		1,579,620

Total	$	20,600,239		30.84	%							$	18,514,701		23.45	%

*	* Average of daily Values at Risk.

At December 31, 2022, Transtrend Master’s total capitalization was $71,102,465 and the Partnership owned 100.0% of Transtrend Master. As of December 31, 2022, Transtrend Master’s Value at Risk for its assets (including the portion of the Partnership’s assets allocated to Transtrend for trading) was as follows:


December 31, 2022
														December 31, 2022

						Twelve Months Ended December 31, 2022											Twelve Months Ended December 31, 2022
Market Sector	Value at Risk		% of Total Capitalization			High Value at Risk		Low Value at Risk		Average Value at Risk*		Value at Risk		% of Total Capitalization			High Value at Risk		Low Value at Risk		Average Value at Risk*
Currencies	$	3,413,881		4.80	%	$	8,876,351	$	3,049,192	$	6,252,833	$	3,413,881		4.80	%	$	8,876,351	$	3,049,192	$	6,252,833
Energy		426,925		0.60			3,249,261		426,925		1,811,285		426,925		0.60			3,249,261		426,925		1,811,285
Grains		1,456,447		2.05			2,576,615		481,929		1,651,590		1,456,447		2.05			2,576,615		481,929		1,651,590
Indices		3,206,236		4.51			4,276,625		629,548		2,406,308		3,206,236		4.51			4,276,625		629,548		2,406,308
Interest Rates U.S.		1,038,604		1.46			2,315,190		463,902		1,228,588		1,038,604		1.46			2,315,190		463,902		1,228,588
Interest Rates Non-U.S.		1,469,729		2.07			3,889,469		763,706		2,016,596		1,469,729		2.07			3,889,469		763,706		2,016,596
Livestock		557,315		0.78			950,455		42,020		498,589		557,315		0.78			950,455		42,020		498,589
Metals		382,213		0.54			2,208,645		256,124		1,053,948		382,213		0.54			2,208,645		256,124		1,053,948
Softs		1,567,289		2.20			1,865,217		468,210		1,225,958		1,567,289		2.20			1,865,217		468,210		1,225,958

Total	$	13,518,639		19.01	%							$	13,518,639		19.01	%

*	* Annual average of daily Values at Risk.

2930

At ~~March 31,~~June 30, 2023, NL Master’s total capitalization was ~~$42,347,771~~$43,385,242 and the Partnership owned approximately 72.4% of NL Master. As of ~~March 31,~~June 30, 2023, NL Master’s Value at Risk for its assets (including the portion of the Partnership’s assets allocated to Northlander for trading) was as follows:


March 31, 2023
														June 30, 2023

						Three Months Ended March 31, 2023											Three Months Ended June 30, 2023
Market Sector	Value at Risk		% of Total Capitalization			High Value at Risk		Low Value at Risk		Average Value at Risk*		Value at Risk		% of Total Capitalization			High Value at Risk		Low Value at Risk	Average Value at Risk*
Energy	$	2,580,881		6.09	%	$	4,647,914	$	1,671,787	$	3,086,708	$	1,679,011		3.87	%	$	2,568,648	$ 832,520	$	1,610,008

Total	$	2,580,881		6.09	%							$	1,679,011		3.87	%

*	* Average of daily Values at Risk.

At December 31, 2022, NL Master’s total capitalization was $45,265,820 and the Partnership owned approximately 71.4% of NL Master. As of December 31, 2022, NL Master’s Value at Risk for its assets (including the portion of the Partnership’s assets allocated to Northlander for trading) was as follows:


December 31, 2022
														December 31, 2022

						Twelve Months Ended December 31, 2022											Twelve Months Ended December 31, 2022
Market Sector	Value at Risk		% of Total Capitalization			High Value at Risk		Low Value at Risk		Average Value at Risk*		Value at Risk		% of Total Capitalization			High Value at Risk		Low Value at Risk		Average Value at Risk*
Energy	$	4,556,188		10.07	%	$	12,485,381	$	2,176,917	$	6,028,438	$	4,556,188		10.07	%	$	12,485,381	$	2,176,917	$	6,028,438

Total	$	4,556,188		10.07	%							$	4,556,188		10.07	%

*	* Annual average of daily Values at Risk.

3031

At ~~March 31,~~June 30, 2023, Drakewood Master’s total capitalization was ~~$44,845,119~~$53,290,624 and the Partnership owned approximately ~~69.9%~~61.1% of Drakewood Master. As of ~~March 31,~~June 30, 2023, Drakewood Master’s Value at Risk for its assets (including the portion of the Partnership’s assets allocated to Drakewood for trading) was as follows:


March 31, 2023
														June 30, 2023

						Three Months Ended March 31, 2023											Three Months Ended June 30, 2023
Market Sector	Value at Risk		% of Total Capitalization			High Value at Risk		Low Value at Risk		Average Value at Risk*		Value at Risk		% of Total Capitalization			High Value at Risk		Low Value at Risk		Average Value at Risk*
Currencies	$	207,086		0.46	%	$	207,086	$	196,999	$	206,310	$	108,130		0.20	%	$	207,086	$	108,130	$	158,415
Metals		3,353,583		7.48			4,460,431		2,376,417		3,649,534		4,353,779		8.17			5,377,400		3,057,197		4,338,450

Total	$	3,560,669		7.94	%							$	4,461,909		8.37	%

*	* Average of daily Values at Risk.

At December 31, 2022, Drakewood Master’s total capitalization was $43,497,389 and the Partnership owned approximately 68.2% of Drakewood Master. As of December 31, 2022, Drakewood Master’s Value at Risk for its assets (including the portion of the Partnership’s assets allocated to Drakewood for trading) was as follows:


December 31, 2022
														December 31, 2022

						Twelve Months Ended December 31, 2022											Twelve Months Ended December 31, 2022
Market Sector	Value at Risk		% of Total Capitalization			High Value at Risk		Low Value at Risk		Average Value at Risk*		Value at Risk		% of Total Capitalization			High Value at Risk		Low Value at Risk		Average Value at Risk*
Currencies	$	196,999		0.45	%	$	343,915	$	-	$	209,170	$	196,999		0.45	%	$	343,915	$	-	$	209,170
Metals		2,398,825		5.51			5,048,668		36,300		3,087,344		2,398,825		5.51			5,048,668		36,300		3,087,344

Total	$	2,595,824		5.96	%							$	2,595,824		5.96	%

*	* Annual average of daily Values at Risk.

3132

~~Item 4.~~

Item 4. Controls and Procedures.

The Partnership’s disclosure controls and procedures are designed to ensure that information required to be disclosed by the Partnership on the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods expected in the SEC’s rules and forms. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed by the Partnership in the reports it files is accumulated and communicated to management, including the President and Chief Financial Officer (“CFO”) of the General Partner, to allow for timely decisions regarding required disclosure and appropriate SEC filings.

The General Partner is responsible for ensuring that there is an adequate and effective process for establishing, maintaining and evaluating disclosure controls and procedures for the Partnership’s external disclosures.

The General Partner’s President and CFO have evaluated the effectiveness 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,~~June 30, 2023 and, based on that evaluation, the General Partner’s President and CFO have concluded that, at that date, the Partnership’s disclosure controls and procedures were effective.

The Partnership’s internal control over financial reporting is a process under the supervision of the General Partner’s President and CFO to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with GAAP. These controls include policies and procedures that:

pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Partnership;

provide reasonable assurance that (i) transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and (ii) the Partnership’s receipts are handled and expenditures are made only pursuant to authorizations of the General Partner; and

provide reasonable assurance regarding prevention or timely detection and correction of unauthorized acquisition, use or disposition of the Partnership’s assets that could have a material effect on the financial statements.

There were no changes in the Partnership’s internal control over the financial reporting process during the fiscal quarter ended ~~March 31,~~June 30, 2023, that materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.

3233

PART II. OTHER INFORMATION

~~Item 1.~~

Item 1. Legal Proceedings.

This section describes the major pending legal proceedings, other than ordinary routine litigation incidental to the business, to which MS&Co. or its subsidiaries is a party or to which any of their property is subject. There are no material legal proceedings pending against the Partnership or the General Partner.

On June 1, 2011, Morgan Stanley & Co. Incorporated converted from a Delaware corporation to a Delaware limited liability company. As a result of that conversion, Morgan Stanley & Co. Incorporated is now named Morgan Stanley & Co. LLC (“MS&Co.” or “the Company”).

MS&Co. is a wholly-owned, indirect subsidiary of Morgan Stanley, a Delaware holding company. Morgan Stanley files periodic reports with the SEC as required by the Securities Exchange Act of 1934, as amended (the “Exchange Act”) 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 2022, 2021, 2020, 2019, and 2018. In addition, MS&Co. annually prepares an Audited, Consolidated Statement of Financial Condition (“Audited Financial Statement”) that is publicly available on Morgan Stanley’s website at www.morganstanley.com. We refer you to the Commitments, Guarantees and Contingencies – Legal section of MS&Co.’s 2022 Audited Financial Statement.

In addition to the matters described in those filings, in the normal course of business, each of Morgan Stanley and MS&Co. has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions, and other litigation, as well as being subject to regulatory investigations arising in connection with its activities as a ~~global diversified~~ financial services institution. Certain of the actual or threatened legal actions ~~or regulatory investigations~~ include claims for substantial penalties, compensatory and/or punitive damages or claims for indeterminate amounts of penalties or damages.

Each of Morgan Stanley and MS&Co. is also involved, from time to time, other reviews, investigations and proceedings (both formal and informal) by governmental and self-regulatory agencies regarding MS&Co.’s business, and involving, among other matters, sales, trading, financing, prime brokerage, market-making activities, investment banking advisory services, capital market activities, financial products or offerings sponsored, underwritten or sold by MS&Co., wealth and investment management services, and accounting and operational matters, certain of which may result in adverse judgments, settlements, fines, penalties, injunctions, limitations on our ability to conduct certain business, or other relief.

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.

During the preceding five years, the following administrative, civil, or criminal actions pending, on appeal or concluded against MS&Co. or any of its principals are material within the meaning of CFTC Rule 4.24(l)(2) or 4.34(k)(2):

3334

Regulatory and Governmental Matters.

The Company has been responding to ~~subpoenas and other~~ requests for information from the Enforcement Division of the U.S. Securities and Exchange Commission and the United States Attorney’s Office for the Southern District of New York in connection with their investigations into various aspects of the Company’s blocks business, certain related sales and trading practices, and applicable controls (the “Investigations”). The Investigations are focused on whether the Company and/or its employees shared and/or used information regarding impending block transactions in violation of federal securities laws and regulations. The Company ~~is continuing~~continues to cooperate with, and remains engaged in discussions regarding the ~~Investigations~~potential resolution of, the Investigations. There can be no assurance that these discussions and ~~is responding~~continuing engagement will lead to ~~the requests.~~resolution of either matter. The Company also faces potential civil liability arising from claims that have been or may be asserted by, among others, block transaction participants who contend they were harmed or disadvantaged including, among other things, as a result of a share price decline allegedly caused by the activities of the Company and/or its employees, or as a result of the Company’s and/or its employees’ failure to adhere to applicable laws and regulations. In addition, the Company has responded to demands from shareholders under Section 220 of the Delaware General Corporation Law for books and records concerning the Investigations.

On September 30, 2020, the SEC entered into a settlement order with MS&Co. settling an administrative action which relates to MS&Co.’s violations of the order marking requirements of Regulation SHO of the Exchange Act resulting from its improper use of aggregation units in structuring the Firm’s equity swaps business. The order found that MS&Co. improperly operated its equity swaps business without netting certain “long” and “short” positions as required by Rule 200(c) of Regulation SHO. The order found that the long exposure to an equity security (the “Long Unit”) and the short exposure to an equity security (the “Short Unit”) were not independent from one another and did not have separate trading strategies or objectives without regard to each other, and that the Long and Short Units were not eligible for the exception in Rule 200(f) of Regulation SHO. The order found that MS&Co. willfully violated Section 200(g) of Regulation SHO. MS&Co. consented, without admitting or denying the findings and without adjudication of any issue of law or fact, to a censure; to cease and desist from committing or causing future violations; to pay a civil penalty of $5 million; and to comply with the undertaking enumerated in the order.

The Firm has reached agreements in principle with two regulatory agencies—the SEC for $125 million and the CFTC for $75 million— to resolve record-keeping related investigations by those agencies relating to business communications on messaging platforms that had not been approved by the Firm. The Company was one of the entities involved in these investigations, and has recognized a provision of $63 million in anticipation of concluding the settlement with the SEC. On September 27, 2022, the Firm’s settlements with the SEC and the CFTC became effective.

3435

Civil Litigation

On August 18, 2009, Relators Roger Hayes and C. Talbot Heppenstall, Jr., filed a qui tam action in New Jersey state court styled State of New Jersey ex. rel. Hayes v. Bank of America Corp., et al. The complaint, filed under seal pursuant to the New Jersey False Claims Act, alleged that the Company and several other underwriters of municipal bonds had defrauded New Jersey issuers by misrepresenting that they would achieve the best price or lowest cost of capital in connection with certain municipal bond issuances. On March 17, 2016, the court entered an order unsealing the complaint. On November 17, 2017, Relators filed an amended complaint to allege the Company mispriced certain bonds issued in twenty-three bond offerings between 2008 and 2017, having a total par amount of $6,946 million. The complaint seeks, among other relief, treble damages. On February 22, 2018, the Company moved to dismiss the amended complaint, and on July 17, 2018, the court denied the Company’s motion. On October 13, 2021, following a series of voluntary and involuntary dismissals, Relators limited their claims to certain bonds issued in five offerings the Company underwrote between 2008 and 2011, having a total par amount of $3,856 million.

On May 17, 2013, plaintiff in IKB International S.A. in Liquidation, et al. v. Morgan Stanley, et al. filed a complaint against MS&Co. and certain affiliates in the Supreme Court of the State of New York, New York County (“Supreme Court of NY”). The complaint alleges that defendants made material misrepresentations and omissions in the sale to plaintiff 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 MS&Co. to plaintiff was approximately $133 million. The complaint alleges causes of action against MS&Co. for common law fraud, fraudulent concealment, aiding and abetting fraud, and negligent misrepresentation, and seeks, among other things, compensatory and punitive damages. On October 29, 2014, the court granted in part and denied in part MS&Co.’s motion to dismiss. All claims regarding four certificates were dismissed. After these dismissals, the remaining amount of certificates allegedly issued by MS&Co. or sold to plaintiff by MS&Co. was approximately $116 million. On August 11, 2016, the Appellate Division, First Department (“First Department”) affirmed the trial court’s decision denying in part MS&Co.’s motion to dismiss the complaint. On July 15, 2022, MS&Co. filed a motion for summary judgment. On March 1, 2023, the court granted in part and denied in part MS&Co.’s motion for summary judgment, narrowing the alleged misrepresentations at issue in the case. In March 2023, both parties appealed the decision. At December 25, 2019, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $22 million, and the certificates had incurred actual losses of $58 million. Based on currently available information, MS&Co. believes it could incur a loss in this action up to the difference between the $22 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against MS&Co., or upon sale, plus pre- and post-judgment interest, fees and costs. MS&Co. 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.

~~In August~~Beginning in February of ~~2017, MS&Co.~~2016, the Firm was named as a defendant in amultiple purported antitrust ~~class action~~actions now consolidated into a single proceeding in the United States District Court for the ~~Southern District of New York (“SDNY”)~~SDNY styled ~~Iowa Public Employees’ Retirement System et al. v. Bank of America Corporation et al.~~In Re: Interest Rate Swaps Antitrust Litigation. Plaintiffs allege, inter alia, that ~~MS&Co.,~~the Firm, together with a number of other financial institution defendants violated U.S. ~~antitrust laws~~ and New York state ~~law~~antitrust laws from 2008 through December of 2016 in connection with their alleged efforts to prevent the development of electronic exchange-based platforms for ~~securities lending. The class action complaint was~~interest rate swaps trading. Complaints were filed both on behalf of a purported class of ~~borrowers and lenders~~investors who ~~entered into stock loan transactions with~~purchased interest rate swaps from defendants, as well as on behalf of two swap execution facilities that

allegedly were thwarted by the ~~defendants.~~defendants in their efforts to develop such platforms. The ~~class action complaint seeks,~~consolidated complaints seek, among other relief, certification of the investor class of plaintiffs and treble damages. On ~~September 27, 2018,~~July 28, 2017, the court granted in part and denied in part the defendants’ motion to dismiss the ~~class action complaint. Plaintiffs’~~complaints. A decision on plaintiffs’ motion for class certification was referred by the District Court to a magistrate judge who, on June 30, 2022, issued a report and recommendation that the District Court certify a class. The motion for class certification and the parties’ objections to the report and recommendation are pending before the District Court.is pending.

On August 13, 2021, the plaintiff in Camelot Event Driven Fund, a Series of Frank Funds Trust v. Morgan Stanley & Co. LLC, et al. filed in the Supreme Court of NY a purported class action complaint alleging violations of the federal securities laws against ViacomCBS (“Viacom”), certain of its officers and directors, and the underwriters, including the Company, of two March 2021 Viacom offerings: a $1,700 Viacom Class B Common Stock offering and a $1,000 offering of 5.75% Series A Mandatory Convertible Preferred Stock (collectively, the “Offerings”). The complaint alleges, inter alia, that the Viacom offering documents for both issuances contained material omissions because they did not disclose that certain of the underwriters, including the Company, had prime brokerage relationships and served as counterparties to certain derivative transactions with Archegos Capital Management LP, (“Archegos”), a fund with significant exposure to Viacom securities across multiple prime brokers. The complaint, which seeks, among other things, unspecified compensatory damages, alleges that the offering documents did not adequately disclose the risks associated with Archegos’s concentrated Viacom positions at the various prime brokers, including that the unwind of those positions could have a deleterious impact on the stock price of Viacom. On November 5, 2021, the complaint was amended to add allegations that defendants failed to disclose that certain underwriters, including the Company, had intended to unwind Archegos’s Viacom positions while simultaneously distributing the Offerings. On February 6, 2023, the court issued a decision denying the motions to dismiss as to the Company and the other underwriters, but granted the motion to dismiss as to Viacom and the Viacom individual defendants. On February ~~15, 2023,~~15,2023, the underwriters, including the Firm, filed their Notices of Appeal of the denial of their motions to dismiss. On March 10, 2023, the plaintiff filed a Notice of Appeal of the dismissal of Viacom and the individual Viacom defendants.

Settled Civil Litigation

On July 15, 2010, China Development Industrial Bank (“CDIB”) filed a complaint against MS&Co., styled China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al., in the Supreme Court of NY. The complaint related to a $275 million credit default swap (“CDS”) referencing the super senior portion of the STACK 2006-1 CDO. The complaint asserted claims for common law fraud, fraudulent inducement and fraudulent concealment and alleges that MS&Co. misrepresented the risks of the STACK 2006-1 CDO to CDIB, and that MS&Co knew that the assets backing the CDO were of poor quality when it entered into the CDS with CDIB. On March 22, 2021, the parties entered into a settlement agreement. On April 16, 2021, the court entered a stipulation of voluntary discontinuance, with prejudice.

On October 15, 2010, the Federal Home Loan Bank of Chicago filed a complaint against MS&Co. and other defendants in the Circuit Court of the State of Illinois, styled Federal Home Loan Bank of Chicago v. Bank of America Funding Corporation et al. A corrected amended complaint was filed on April 8, 2011, which 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 and asserts claims under Illinois law. The total amount of certificates allegedly sold to plaintiff by MS&Co. at issue in the action was approximately $203 million. The complaint seeks, among other things, to rescind the

plaintiff’s purchase of such certificates. On November 4, 2021, the Firm entered into an agreement to settle the litigation.

On April 20, 2011, the Federal Home Loan Bank of Boston filed a complaint against MS&Co. and other defendants in the Superior Court of the Commonwealth of Massachusetts styled Federal Home Loan Bank of Boston v. Ally Financial, Inc. F/K/A GMAC LLC et al. An amended complaint was filed on June 29, 2012 and alleged that defendants made untrue statements and material omissions in the sale to plaintiff of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly issued by MS&Co. or sold to plaintiff by MS&Co. was approximately $385 million. The amended complaint raised claims under the Massachusetts Uniform Securities Act, the Massachusetts Consumer Protection Act and common law and sought, among other things, to rescind the plaintiff’s purchase of such certificates. On November 25, 2013, July 16, 2014, and May 19, 2015, respectively, the plaintiff voluntarily dismissed its claims against MS&Co. with respect to three of the securitizations at issue. After these voluntary dismissals, the remaining amount of certificates allegedly issued by MS&Co. or sold to plaintiff by MS&Co. was approximately $332 million. On July 13, 2018, the parties reached an agreement in principle to settle the litigation.

On May 3, 2013, plaintiffs in Deutsche Zentral-Genossenschaftsbank AG et al. v. Morgan Stanley et al. filed a complaint against MS&Co., certain affiliates, and other defendants in the Supreme Court of NY. The complaint alleged that defendants made material misrepresentations and omissions in 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 MS&Co. to plaintiff was approximately $634 million. The complaint alleged causes of action against MS&Co. for common law fraud, fraudulent concealment, aiding and abetting fraud, negligent misrepresentation, and rescission and sought, among other things, compensatory and punitive damages. On June 26, 2018, the parties entered into an agreement to settle the litigation.

On April 1, 2016, the California Attorney General’s Office filed an action against MS&Co. in California state court styled California v. Morgan Stanley, et al., on behalf of California investors, including the California Public Employees’ Retirement System and the California Teachers’ Retirement System. The complaint alleged that MS&Co. made misrepresentations and omissions regarding residential mortgage-backed securities and notes issued by the Cheyne SIV, and asserted violations of the California False Claims Act and other state laws and sought treble damages, civil penalties, disgorgement, and injunctive relief. On April 24, 2019, the parties reached an agreement to settle the litigation.

In August of 2017, MS&Co. was named as a defendant in a purported antitrust class action in the United States District Court for the Southern District of New York (“SDNY”) styled Iowa Public Employees’ Retirement System et al. v. Bank of America Corporation et al. Plaintiffs allege, inter alia, that MS&Co., together with a number of other financial institution defendants, violated U.S. antitrust laws and New York state law in connection with their alleged efforts to prevent the development of electronic exchange-based platforms for securities lending. The class action complaint was filed on behalf of a purported class of borrowers and lenders who entered into stock loan transactions with the defendants. The class action complaint seeks, among other relief, certification of the class of plaintiffs and treble damages. On September 27, 2018, the court denied the defendants’ motion to dismiss the class action complaint. Plaintiffs’ motion for class certification was referred by the District Court to a magistrate judge who, on June 30, 2022, issued a report and recommendation that the District Court certify a class. The motion for class

certification and the parties’ objections to the report and recommendation are pending before the District Court. On May 20, 2023, the Firm reached an agreement in principle to settle the litigation.

Beginning on March 25, 2019, MS&Co. was named as a defendant in a series of putative class action complaints filed in the United States District Court for the SDNY, the first of which is styled Alaska Electrical Pension Fund v. BofA Secs., Inc., et al. Each complaint alleged a conspiracy to fix prices and restrain competition in the market for unsecured bonds issued by the following Government-Sponsored Enterprises: the Federal National Mortgage Association; the Federal Home Loan Mortgage Corporation; the Federal Farm Credit Banks Funding Corporation; and the Federal Home Loan Banks. The purported class period for each suit is from January 1, 2012 to June 1, 2018. Each complaint raised a claim under Section 1 of the Sherman Act and sought, among other things, injunctive relief and treble compensatory damages. On May 23, 2019, plaintiffs filed a consolidated amended class action complaint styled In re GSE Bonds Antitrust Litigation, with a purported class period from January 1, 2009 to January 1, 2016. On June 13, 2019, the defendants filed a joint motion to dismiss the consolidated amended complaint. On August 29, 2019, the court denied MS&Co.’s motion to dismiss. On December 15, 2019, MS&Co. and certain other defendants entered into a stipulation of settlement to resolve the action as against each of them in its entirety. On June 16, 2020, the court granted final approval of the settlement.

Additional lawsuits containing claims similar to those described above may be filed in the future. In the course of its business, MS&Co., as a major futures commission merchant, is party to various civil actions, claims and routine regulatory investigations and proceedings that the General Partner believes do not have a material effect on the business of MS&Co. MS&Co. may establish reserves from time to time in connections with such actions.

3839

~~Item lA.~~

Item lA. Risk Factors.

There have been no material changes to the risk factors set forth under Part I, Item 1A. “Risk Factors.” in the Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and under Part II, Item, 1A. “Risk Factors.” in the Partnership’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, other than as disclosed in Note 7, “Financial Instrument Risks,” of the Financial Statements.

~~Item 2.~~

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

For the three months ended ~~March 31,~~June 30, 2023, there were subscriptions of ~~2,395.1690~~338.7080 Class A Redeemable Units totaling ~~$8,719,279~~$1,198,000 and ~~27.9900~~218.5110 Class Z Redeemable Units totaling ~~$43,000.~~$327,000. The Redeemable Units were issued in reliance upon applicable exemptions from registration under Section 4(a)(2) of the Securities Act and Section 506 of Regulation D promulgated thereunder. These Redeemable Units were purchased by accredited investors as defined in Regulation D. In determining the applicability of the exemption, the General Partner relied on the fact that the Redeemable Units were purchased by accredited investors in a private offering.

Proceeds from the sale of Redeemable Units are used in the trading of commodity interests including futures, option and forward contracts.

The following chart sets forth the purchases of limited partner Redeemable Units for each Class by the Partnership.

Period
Class A
(a) Total Number of
Redeemable
Units Purchased*

Class A
(b) Average
Price Paid per
Redeemable
Unit**

Class Z
(a) Total Number of
Redeemable
Units Purchased*

Class Z
(b) Average
Price Paid per
Redeemable
Unit**

(c) Total Number of
Redeemable
Units Purchased
as Part of
Publicly
Announced
Plans or Programs

(d) Maximum Number
(or Approximate
Dollar Value) of
Redeemable Units
that May Yet Be
Purchased Under the
Plans or Programs
January 1, 2023 - January 31, 2023
1,014.7650 $ 3,692.68 N/A N/A N/A N/A
February 1, 2023 - February 28, 2023
337.4290 $ 3,730.11 N/A N/A N/A N/A
March 1, 2023 - March 31, 2023
444.2850 $ 3,511.65 551.6900 $ 1,462.76 N/A N/A
1,796.4790 $ 3,654.94 551.6900 $ 1,462.76


Period	Class A (a) Total Number of Redeemable Units Purchased*		Class A (b) Average Price Paid per Redeemable Unit**		Class Z (a) Total Number of Redeemable Units Purchased*		Class Z (b) Average Price Paid per Redeemable Unit**		(c) Total Number of Redeemable Units Purchased as Part of Publicly Announced Plans or Programs		(d) Maximum Number (or Approximate Dollar Value) of Redeemable Units that May Yet Be Purchased Under the Plans or Programs
April 1, 2023 - April 30, 2023		335.7180	$	3,589.76		N/A		N/A		N/A		N/A
May 1, 2023 - May 31, 2023		743.4800	$	3,615.19		N/A		N/A		N/A		N/A
June 1, 2023 - June 30, 2023		1,139.9770	$	3,669.96		495.7010	$	1,531.58		N/A		N/A
		2,219.1750	$	3,639.48		495.7010	$	1,531.58

Generally, limited partners are permitted to redeem their Redeemable Units as of the end of each month on three business days’ notice to the General Partner. Under certain circumstances, the General Partner may compel redemption, although to date the General Partner has not exercised this right. Purchases of Redeemable Units by the Partnership reflected in the chart above were made in the ordinary course of the Partnership’s business in connection with effecting redemptions for limited partners.

Redemptions of Redeemable Units are effected as of the end of each month at the net asset value per Redeemable Unit as of that day. No fee will be charged for redemptions.

Item 3. Defaults Upon Senior Securities. — None.

Item 4. Mine Safety Disclosures~~Item 3.~~

~~Defaults Upon Senior Securities~~. — Not Applicable.

Item 5. Other Information. — None.

~~Item 4.~~

~~Mine Safety Disclosures. — Not Applicable.~~

~~Item 5.~~

~~Other Information~~.

~~Certain impacts to public health conditions particular to the coronavirus~~ ~~(COVID-19)~~ outbreak that occurred after December 31, 2019 could impact the operations and financial performance of the Partnership’s investments subsequent to March 31, 2023. The extent of the impact to the financial performance of the Partnership’s investments will depend on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, and (iv) the effects on the economy overall, all of which are highly uncertain and cannot be predicted. If the financial performance of the Partnership’s investments is impacted because of these factors for an extended period, the Partnership’s performance may be adversely affected.

3940

Item 6.

Exhibits.

~~Exhibit 31.1 — Rule 13a-14(a)/15d-14(a) Certification (Certification of President and Director) (filed herewith).~~

Exhibit 31.1 — Rule 13a-14(a)/15d-14(a) Certification (Certification of President and Director) (filed herewith).

Exhibit 31.2 — Rule 13a-14(a)/15d-14(a) Certification (Certification of Chief Financial Officer) (filed herewith).

Exhibit 32.1 — Section 1350 Certification (Certification of President and Director) (filed herewith).

Exhibit 32.2 — Section 1350 Certification (Certification of Chief Financial Officer) (filed herewith).

~~Exhibit 31.2 — Rule 13a-14(a)/15d-14(a) Certification (Certification of Chief Financial Officer) (filed herewith).~~

~~Exhibit 32.1 — Section 1350 Certification (Certification of President and Director) (filed herewith).~~

~~Exhibit 32.2 — Section 1350 Certification (Certification of Chief Financial Officer) (filed herewith).~~

~~101.INS Inline XBRL Instance Document.~~

~~101.SCH Inline XBRL Taxonomy Extension Schema Document.~~

~~101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document.~~

~~101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document.~~

~~101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document.~~

~~101.DEF Inline XBRL Taxonomy Extension Definition Document.~~

~~104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).~~

101.INS Inline XBRL Instance Document.

101.SCH Inline XBRL Taxonomy Extension Schema Document.

101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document.

101.DEF Inline XBRL Taxonomy Extension Definition Document.

104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

4041

SIGNATURES

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.


CERES ORION L.P.

By:		Ceres Managed Futures LLC
		(General Partner)

By:		/s/ Patrick T. Egan
		Patrick T. Egan
		President and Director

~~Date: May 11, 2023~~

Date:		August 10, 2023

By:		/s/ Brooke Lambert
		Brooke Lambert
		Chief Financial Officer
		(Principal Accounting Officer)

Date: ~~May 11,~~		August 10, 2023

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.

4142


New York		22-3644546
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		~~(I.R.S. Employer~~ Identification No.)


Large accelerated filer	Accelerated filer	Non-accelerated filer X
Smaller reporting company	Emerging growth company


	March 31, 2023		December 31, 2022
	(Unaudited)
Assets:
Investment in the Funds (1) , at fair value	$	128,961,833	$	133,277,060
Redemptions receivable from the Funds		3,261,275		1,922,587

Equity in trading account:
Unrestricted cash		201,667,637		209,145,471
Restricted cash		38,913,085		37,622,333
Foreign cash (cost $5,379,117 and $5,698,305 at March 31, 2023 and December 31, 2022, respectively)		5,464,594		5,747,177
Net unrealized appreciation on open futures contracts		-		1,995,748
Net unrealized appreciation on open forward contracts		-		49,574

Total equity in trading account		246,045,316		254,560,303

Interest receivable		742,400		701,528

Total assets	$	379,010,824	$	390,461,478

Liabilities and Partners’ Capital:
Liabilities:
Net unrealized depreciation on open futures contracts	$	1,898,864	$	-
Net unrealized depreciation on open forward contracts		301,037		-
Accrued expenses:
Ongoing selling agent fees		229,527		237,488
Management fees		289,930		278,003
General Partner fees		235,102		243,662
Incentive fees		172,213		3,199,117
Professional fees		417,587		364,387
Redemptions payable to General Partner		-		500,000
Redemptions payable to Limited Partners		2,367,164		2,613,839

Total liabilities		5,911,424		7,436,496

Partners’ Capital:
General Partner, Class Z, 2,738.3753 Redeemable Units outstanding at March 31, 2023 and December 31, 2022		4,005,590		4,119,374
Limited Partners, Class A, 103,763.4628 and 103,164.7728 Redeemable Units outstanding at March 31, 2023 and December 31, 2022, respectively		364,380,499		373,270,601
Limited Partners, Class Z, 3,222.2022 and 3,745.9022 Redeemable Units outstanding at March 31, 2023 and December 31, 2022, respectively		4,713,311		5,635,007

Total partners’ capital (net asset value)		373,099,400		383,024,982

Total liabilities and partners’ capital	$	379,010,824	$	390,461,478

Net asset value per Redeemable Unit:
Class A	$	3,511.65	$	3,618.20

Class Z	$	1,462.76	$	1,504.31


	June 30, 2023		December 31, 2022
	(Unaudited)

Assets:
Investment in the Funds (1) , at fair value	$	143,111,557	$	133,277,060
Redemptions receivable from the Funds		278,473		1,922,587

Equity in trading account:
Unrestricted cash		202,571,836		209,145,471
Restricted cash		34,048,573		37,622,333
Foreign cash (cost $3,659,956 and $5,698,305 at June 30, 2023 and December 31, 2022, respectively)		3,641,696		5,747,177
Net unrealized appreciation on open futures contracts		3,965,921		1,995,748
Net unrealized appreciation on open forward contracts		184,448		49,574

Total equity in trading account		244,412,474		254,560,303

Interest receivable		887,822		701,528

Total assets	$	388,690,326	$	390,461,478

Liabilities and Partners’ Capital:
Liabilities:
Accrued expenses:
Ongoing selling agent fees	$	237,003	$	237,488
Management fees		282,152		278,003
General Partner fees		242,549		243,662
Incentive fees		-		3,199,117
Professional fees		374,980		364,387
Redemptions payable to General Partner		-		500,000
Redemptions payable to Limited Partners		4,942,876		2,613,839

Total liabilities		6,079,560		7,436,496

Partners’ Capital:
General Partner, Class Z, 2,738.3753 Redeemable Units outstanding at June 30, 2023 and December 31, 2022		4,194,051		4,119,374
Limited Partners, Class A, 101,882.9958 and 103,164.7728 Redeemable Units outstanding at June 30, 2023 and December 31, 2022, respectively		373,906,182		373,270,601
Limited Partners, Class Z, 2,945.0122 and 3,745.9022 Redeemable Units outstanding at June 30, 2023 and December 31, 2022, respectively		4,510,533		5,635,007

Total partners’ capital (net asset value)		382,610,766		383,024,982

Total liabilities and partners’ capital	$	388,690,326	$	390,461,478

Net asset value per Redeemable Unit:
Class A	$	3,669.96	$	3,618.20

Class Z	$	1,531.58	$	1,504.31


								Number of Contracts		Fair Value			% of Partners’ Capital
	Number of Contracts		Fair Value		% of Partners’ Capital
Futures Contracts Purchased
Currencies		2,063	$	798,254		0.21	%		2,648	$	(123,867	)		(0.03)	%
Energy		2,786		2,419,622		0.65			3,002		204,598			0.05
Grains		2,364		863,190		0.23			1,404		(417,185	)		(0.11)
Indices		1,170		3,800,085		1.02			987		1,342,706			0.35
Interest Rates U.S.		447		44,203		0.01			307		(218,805	)		(0.06)
Interest Rates Non-U.S.		382		(35,148)		(0.01)			151		183,197			0.05
Livestock		552		358,989		0.10			397		1,546,896			0.40
Metals		1,208		906,849		0.24			660		(734,594	)		(0.19)
Softs		3,557		3,009,508		0.81			2,413		1,288,818			0.34

Total futures contracts purchased				12,165,552		3.26					3,071,764			0.80

Futures Contracts Sold
Currencies		921		(278,767)		(0.07)			1,098		1,218,320			0.32
Energy		2,842		(3,767,958)		(1.01)			2,518		(1,418,477	)		(0.37)
Grains		1,440		(1,121,202)		(0.30)			982		(159,772	)		(0.04)
Indices		1,214		(2,389,944)		(0.64)			1,461		903,558			0.24
Interest Rates U.S.		156		(475,737)		(0.13)			556		506,254			0.13
Interest Rates Non-U.S.		540		(730,993)		(0.20)			2,183		983,134			0.26
Livestock		712		(664,372)		(0.18)			241		(544,653	)		(0.14)
Metals		961		(1,602,250)		(0.43)			384		386,790			0.10
Softs		3,272		(3,033,193)		(0.81)			1,824		(980,997	)		(0.26)

Total futures contracts sold				(14,064,416)		(3.77)					894,157			0.24

Net unrealized depreciation on open futures contracts			$	(1,898,864)		(0.51)	%
Net unrealized appreciation on open futures contracts										$	3,965,921			1.04	%


Unrealized Appreciation on Open Forward Contracts
Metals		16	$	32,346		0.01	%		66	$	240,146			0.06	%

Total unrealized appreciation on open forward contracts				32,346		0.01					240,146			0.06

Unrealized Depreciation on Open Forward Contracts
Metals		63	$	(333,383)		(0.09)	%		28	$	(55,698	)		(0.01)	%

Total unrealized depreciation on open forward contracts				(333,383)		(0.09)					(55,698	)		(0.01)

Net unrealized depreciation on open forward contracts			$	(301,037)		(0.08)	%
Net unrealized appreciation on open forward contracts										$	184,448			0.05	%


Investment in the Funds
CMF TT II, LLC			$	66,805,230		17.91	%			$	78,943,380			20.63	%
CMF NL Master Fund LLC				30,743,933		8.24					31,513,868			8.24
CMF Drakewood Master Fund LLC				31,412,670		8.42					32,654,309			8.53

Total investment in the Funds			$	128,961,833		34.57	%			$	143,111,557			37.40	%


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
N/A	N/A	N/A


	Number of Contracts		Fair Value		% of Partners’ Capital
Futures Contracts Purchased
Currencies		2,131	$	199,196		0.05	%
Energy		780		1,924,555		0.50
Grains		1,260		1,108,877		0.29
Indices		1,377		(872,628)		(0.23)
Interest Rates U.S.		488		(113,906)		(0.03)
Interest Rates Non-U.S.		416		(658,176)		(0.17)
Livestock		297		170,938		0.05
Metals		716		661,615		0.17
Softs		2,237		324,444		0.09

Total futures contracts purchased				2,744,915		0.72

Futures Contracts Sold
Currencies		673		(568,583)		(0.15)
Energy		1,386		(992,198)		(0.26)
Grains		580		(533,655)		(0.14)
Indices		672		85,823		0.02
Interest Rates U.S.		240		64,450		0.02
Interest Rates Non-U.S.		1,613		1,536,668		0.40
Livestock		76		(23,430)		(0.01)
Metals		234		(20,300)		(0.00)	*
Softs		1,386		(297,942)		(0.08)

Total futures contracts sold				(749,167)		(0.20)

Net unrealized appreciation on open futures contracts			$	1,995,748		0.52	%


Unrealized Appreciation on Open Forward Contracts
Metals		5	$	95,123		0.02	%

Total unrealized appreciation on open forward contracts				95,123		0.02

Unrealized Depreciation on Open Forward Contracts
Metals		13	$	(45,549)		(0.01)	%

Total unrealized depreciation on open forward contracts				(45,549)		(0.01)

Net unrealized appreciation on open forward contracts			$	49,574		0.01	%


Investment in the Funds
CMF TT II, LLC			$	71,102,465		18.56	%
CMF NL Master Fund LLC				32,422,644		8.47
CMF Drakewood Master Fund LLC				29,751,951		7.77

Total investment in the Funds			$	133,277,060		34.80	%


	Three Months Ended March 31,
	2023			2022
Investment Income:
Interest income	$	2,215,130		$	49,397
Interest income allocated from the Funds		1,038,782			5,199

Total investment income		3,253,912			54,596

Expenses:
Expenses allocated from the Funds		412,178			3,656,977
Clearing fees related to direct investments		617,469			497,824
Ongoing selling agent fees		716,547			705,114
Management fees		895,287			709,213
General Partner fees		733,936			719,720
Incentive fees		172,212			5,207,849
Professional fees		215,692			228,300

Total expenses		3,763,321			11,724,997

Net investment loss		(509,409	)		(11,670,401	)

Trading Results:
Net gains (losses) on trading of commodity interests and investment in the Funds:
Net realized gains (losses) on closed contracts		1,714,158			(4,364,287	)
Net realized gains (losses) on closed contracts allocated from the Funds		(5,705,061	)		17,127,965
Net change in unrealized gains (losses) on open contracts		(4,208,618	)		31,499,221
Net change in unrealized gains (losses) on open contracts allocated from the Funds		(2,605,917	)		8,780,222

Total trading results		(10,805,438	)		53,043,121

Net income (loss)	$	(11,314,847	)	$	41,372,720

Net income (loss) per Redeemable Unit*:
Class A	$	(106.55	)	$	370.90

Class Z	$	(41.55	)	$	155.84

Weighted average Redeemable Units outstanding:
Class A		104,477.1658			109,406.4278

Class Z		6,502.9375			5,935.7905


	Three Months Ended June 30,						Six Months Ended June 30,

	2023			2022			2023			2022

Investment Income:
Interest income	$	2,511,437		$	327,554		$	4,726,567		$	376,951
Interest income allocated from the Funds		1,193,062			135,159			2,231,844			140,358

Total investment income		3,704,499			462,713			6,958,411			517,309

Expenses:
Expenses allocated from the Funds		748,696			388,773			1,160,874			4,045,750
Clearing fees related to direct investments		651,193			522,744			1,268,662			1,020,568
Ongoing selling agent fees		706,556			779,757			1,423,103			1,484,871
Management fees		838,174			842,446			1,733,461			1,551,659
General Partner fees		722,675			796,848			1,456,611			1,516,568
Incentive fees		-			3,940,527			172,212			9,148,376
Professional fees		209,222			248,380			424,914			476,680

Total expenses		3,876,516			7,519,475			7,639,837			19,244,472

Net investment loss		(172,017	)		(7,056,762	)		(681,426	)		(18,727,163	)

Trading Results:
Net gains (losses) on trading of commodity interests and investment in the Funds:
Net realized gains (losses) on closed contracts		(3,780,341	)		(20,502,359	)		(2,066,183	)		(24,866,646	)
Net realized gains (losses) on closed contracts allocated from the Funds		3,986,004			9,544,984			(1,719,057	)		26,672,949
Net change in unrealized gains (losses) on open contracts		6,246,533			37,067,063			2,037,915			68,566,284
Net change in unrealized gains (losses) on open contracts allocated from the Funds		10,542,031			(5,491,921	)		7,936,114			3,288,301

Total trading results		16,994,227			20,617,767			6,188,789			73,660,888

Net income (loss)	$	16,822,210		$	13,561,005		$	5,507,363		$	54,933,725

Net income (loss) per Redeemable Unit*:
Class A	$	158.31		$	120.53		$	51.76		$	491.43

Class Z	$	68.82		$	52.75		$	27.27		$	208.59

Weighted average Redeemable Units outstanding:
Class A		103,579.9408			109,325.4691			104,028.5533			109,365.9485

Class Z		6,093.8202			6,229.4345			6,298.3788			6,082.6125


	Three Months Ended March 31, 2023				Three Months Ended March 31, 2022
	Class A		Class Z		Class A		Class Z
Per Redeemable Unit Performance (for a unit outstanding throughout the period):*
Net realized and unrealized gains (losses)	$	(101.62)	$	(42.35)	$	475.42	$	195.46
Net investment income (loss)		(4.93)		0.80		(104.52)		(39.62)

Increase (decrease) for the period		(106.55)		(41.55)		370.90		155.84
Net asset value per Redeemable Unit, beginning of period		3,618.20		1,504.31		3,219.06		1,328.23

Net asset value per Redeemable Unit, end of period	$	3,511.65	$	1,462.76	$	3,589.96	$	1,484.07


	Three Months Ended				Three Months Ended				Six Months Ended				Six Months Ended
	June 30, 2023				June 30, 2022				June 30, 2023				June 30, 2022
	Class A		Class Z		Class A		Class Z		Class A		Class Z		Class A		Class Z
Per Redeemable Unit Performance (for a unit outstanding throughout the period):*
Net realized and unrealized gains (losses)	$	160.10	$	66.65	$	183.76	$	75.89	$	58.49	$	24.34	$	659.20	$	270.96
Net investment income (loss)		(1.79)		2.17		(63.23)		(23.14)		(6.73)		2.93		(167.77)		(62.37)

Increase (decrease) for the period		158.31		68.82		120.53		52.75		51.76		27.27		491.43		208.59
Net asset value per Redeemable Unit, beginning of period		3,511.65		1,462.76		3,589.96		1,484.07		3,618.20		1,504.31		3,219.06		1,328.23

Net asset value per Redeemable Unit, end of period	$	3,669.96	$	1,531.58	$	3,710.49	$	1,536.82	$	3,669.96	$	1,531.58	$	3,710.49	$	1,536.82


	Gross Amounts Recognized		Gross Amounts Offset in the Statements of Financial Condition		Amounts Presented in the Statements of Financial Condition		Gross Amounts Not Offset in the Statements of Financial Condition				Net Amount
June 30, 2023	Gross Amounts Recognized						Financial Instruments		Cash Collateral Received/ Pledged*		Net Amount
Assets
Futures	$	18,094,000	$	(14,128,079)	$	3,965,921	$	-	$	-	$	3,965,921
Forwards		240,146		(55,698)		184,448		-		-		184,448

Total assets	$	18,334,146	$	(14,183,777)	$	4,150,369	$	-	$	-	$	4,150,369

Liabilities
Futures	$	(14,128,079)	$	14,128,079	$	-	$	-	$	-	$	-
Forwards		(55,698)		55,698		-		-		-		-

Total liabilities	$	(14,183,777)	$	14,183,777	$	-	$	-	$	-	$	-

Net fair value											$	4,150,369	*


	~~March 31,~~June 30, 2023
Assets
Futures Contracts
Currencies	$	~~1,124,074~~1,566,752
Energy		~~6,824,277~~4,048,841
Grains		~~2,028,702~~2,293,222
Indices		~~4,124,382~~3,032,891
Interest Rates U.S.		~~80,898~~582,480
Interest Rates Non-U.S.		~~100,530~~1,371,952
Livestock		~~809,532~~1,567,766
Metals		~~1,183,944~~571,311
Softs		~~4,363,658~~3,058,785

Total unrealized appreciation on open futures contracts		~~20,639,997~~18,094,000


Liabilities
Futures Contracts
Currencies		~~(604,587)~~(472,299)
Energy		~~(8,172,613)~~(5,262,720)
Grains		~~(2,286,714)~~(2,870,179)
Indices		~~(2,714,241)~~(786,627)
Interest Rates U.S.		~~(512,432)~~(295,031)
Interest Rates Non-U.S.		~~(866,671)~~(205,621)
Livestock		~~(1,114,915)~~(565,523)
Metals		~~(1,879,345)~~(919,115)
Softs		~~(4,387,343)~~(2,750,964)

Total unrealized depreciation on open futures contracts		~~(22,538,861)~~(14,128,079)

Net unrealized ~~depreciation~~appreciation on open futures contracts	$	~~(1,898,864)~~ 3,965,921	*


Assets
Forward Contracts
Metals	$	~~32,346~~240,146

Total unrealized appreciation on open forward contracts		~~32,346~~240,146


Liabilities
Forward Contracts
Metals	$	~~(333,383)~~(55,698)

Total unrealized depreciation on open forward contracts		~~(333,383)~~(55,698)

Net unrealized ~~depreciation~~appreciation on open forward contracts	$	~~(301,037)~~184,448	**


	Three Months Ended June 30,						Six Months Ended June 30,
Sector	2023			2022			2023			2022
Currencies	$	4,605,105		$	4,945,698		$	6,666,406		$	5,103,534
Energy		(283,347)			7,273,670			(351,282)			26,168,859
Grains		(2,399,915)			(1,093,915)			(5,190,813)			343,588
Indices		2,471,634			10,458,002			12,696,743			15,173,055
Interest Rates U.S.		(1,826,561)			(447,172)			(6,379,405)			1,784,636
Interest Rates Non-U.S.		2,036,623			4,278,681			(6,274,975)			4,196,123
Livestock		1,451,802			(998,359)			1,282,709			(1,303,691)
Metals		(3,628,043)			(6,344,276)			(4,498,048)			(6,360,313)
Softs		38,894			(1,507,625)			2,020,397			(1,406,153)

Total	$	2,466,192	***	$	16,564,704	***	$	(28,268)	***	$	43,699,638	***


	Three Months Ended March 31,
Sector	2023			2022
Currencies	$	2,061,301		$	157,836
Energy		(67,935)			18,895,189
Grains		(2,790,898)			1,437,503
Indices		10,225,109			4,715,053
Interest Rates U.S.		(4,552,844)			2,231,808
Interest Rates Non-U.S.		(8,311,598)			(82,558)
Livestock		(169,093)			(305,332)
Metals		(870,005)			(16,037)
Softs		1,981,503			101,472

Total	$	(2,494,460)	***	$	27,134,934	***


	Class A						Class Z						Total
	Amount			Redeemable Units			Amount			Redeemable Units			Amount			Redeemable Units
Partners’ Capital, December 31, 2021	$	353,170,511			109,712.3338		$	8,687,519			6,540.6965		$	361,858,030			116,253.0303
Subscriptions - Limited Partners		10,334,964			2,923.4660			1,000,000			673.8230			11,334,964			3,597.2890
Redemptions - Limited Partners		(16,165,859	)		(4,550.8250	)		(1,409,763	)		(1,031.3560	)		(17,575,622	)		(5,582.1810	)
Net income (loss)		53,709,071			-			1,224,654			-			54,933,725			-

Partners’ Capital, June 30, 2022	$	401,048,687			108,084.9748		$	9,502,410			6,183.1635		$	410,551,097			114,268.1383


Partners’ Capital, March 31, 2022	$	389,705,594			108,554.2008		$	8,244,907			5,555.6115		$	397,950,501			114,109.8123
Subscriptions - Limited Partners		6,721,964			1,831.1540			1,000,000			673.8230			7,721,964			2,504.9770
Redemptions - Limited Partners		(8,611,262	)		(2,300.3800	)		(71,111	)		(46.2710	)		(8,682,373	)		(2,346.6510	)
Net income (loss)		13,232,391			-			328,614			-			13,561,005			-

Partners’ Capital, June 30, 2022	$	401,048,687			108,084.9748		$	9,502,410			6,183.1635		$	410,551,097			114,268.1383


	Three Months Ended						Three Months Ended						Six Months Ended						Six Months Ended
	June 30, 2023						June 30, 2022						June 30, 2023						June 30, 2022
	Class A			Class Z			Class A			Class Z			Class A			Class Z			Class A			Class Z
Ratios to Average Limited Partners’ Capital:**
Net investment income (loss)***		0.1	%		0.9	%		(4.0)	%		(3.4)	%		(0.2)	%		0.6	%		(6.4)	%		(5.6)	%

Operating expenses		3.7	%		3.1	%		3.5	%		2.9	%		3.7	%		3.0	%		3.5	%		2.8	%
Incentive fees		0.1	%		0.1	%		1.0	%		1.0	%		0.1	%		0.1	%		3.2	%		3.1	%

Total expenses		3.8	%		3.2	%		4.5	%		3.9	%		3.8	%		3.1	%		6.7	%		5.9	%

Total return:
Total return before incentive fees		4.6	%		4.8	%		4.3	%		4.5	%		1.6	%		2.0	%		18.7	%		19.0	%
Incentive fees		(0.1)	%		(0.1)	%		(0.9)	%		(0.9)	%		(0.2)	%		(0.2)	%		(3.4)	%		(3.3)	%

Total return after incentive fees		4.5	%		4.7	%		3.4	%		3.6	%		1.4	%		1.8	%		15.3	%		15.7	%


June 30, 2023	Total		Level 1		Level 2		Level 3
Assets
Futures	$	18,094,000	$	16,553,400	$	1,540,600	$	-
Forwards		240,146		-		240,146		-

Total assets	$	18,334,146	$	16,553,400	$	1,780,746	$	-

Liabilities
Futures	$	14,128,079	$	13,797,096	$	330,983	$	-
Forwards		55,698		-		55,698		-

Total liabilities	$	14,183,777	$	13,797,096	$	386,681	$	-



	December 31, 2022					For the three months ended March 31, 2022
	% of Partners’ Capital							Expenses								Net Income (Loss)
Funds	% of Partners’ Capital			Fair Value		Income (Loss)		Clearing Fees		Professional Fees		Management Fees		Incentive Fee		Net Income (Loss)		Investment Objective	Redemptions Permitted

Transtrend Master		18.56	%	$	71,102,465	$	21,068,106	$	138,975	$	17,000	$	144,756	$	3,322,640	$	17,444,735	Commodity Portfolio	Monthly
NL Master		8.47	%		32,422,644		4,845,280		22,387		11,219		-		-		4,811,674	Commodity Portfolio	Monthly
Drakewood Master (a)		7.77	%		29,751,951		-		-		-		-		-		-	Commodity Portfolio	Monthly

Total				$	133,277,060	$	25,913,386	$	161,362	$	28,219	$	144,756	$	3,322,640	$	22,256,409


Advisor	March 31, 2023		March 31, 2023 (percentage of Partners’ Capital)			December 31, 2022		December 31, 2022 (percentage of Partners’ Capital)
Transtrend	$	69,804,931		19	%	$	71,102,167		19	%
Northlander	$	30,744,037		8	%	$	32,422,749		8	%
Drakewood	$	31,412,669		8	%	$	29,751,950		8	%
JSCL	$	145,781,040		39	%	$	141,906,663		37	%
Quantica	$	44,908,183		12	%	$	49,389,326		13	%
Breakout	$	35,494,846		10	%	$	23,680,825		6	%
Unallocated	$	14,953,694		4	%	$	34,771,302		9	%