Investment in the Funds | 6. Investment in the Funds: On January 1, 2018, the assets allocated to SECOR for trading were invested in SECOR Master, a limited partnership organized under the partnership laws of the State of Delaware. SECOR Master permits accounts managed by SECOR using a variation of the program traded by SECOR Alpha Master Fund L.P., a proprietary, systematic trading program, to invest together in one trading vehicle. The General Partner is also the general partner of SECOR Master. Individual and pooled accounts currently managed by SECOR are permitted to be limited partners of SECOR Master. The General Partner and SECOR believe that trading through this master/feeder structure promotes efficiency and economy in the trading process. The General Partner and SECOR have agreed that SECOR will trade the Partnership’s assets allocated to SECOR at a level that is up to 1.5 times the leverage applied to the assets of SECOR Alpha Master Fund, L.P. On January 12, 2018, approximately 49% of the assets allocated to FORT for trading were invested in FORT Contrarian Master, a limited liability company organized under the limited liability company laws of the State of Delaware. FORT Contrarian Master permits accounts managed by FORT using its Global Contrarian Trading Program, a proprietary, systematic trading system, to invest together in one trading vehicle. The General Partner is also the Trading Manager of FORT Contrarian Master. Individual and pooled accounts currently managed by FORT are permitted to be members of FORT Contrarian Master. The Trading Manager and FORT believe that trading through this master/feeder structure promotes efficiency and economy in the trading process. The Trading Manager and FORT have agreed that FORT will trade the Partnership’s assets allocated to FORT at a level that is up to 1.25 times the assets allocated. The amount of leverage may be increased or decreased in the future. On February 1, 2018, the assets allocated to AE Capital for trading were invested in AE Capital Master, a limited liability company organized under the limited liability company laws of the State of Delaware. AE Capital Master permits accounts managed by AE Capital using its AE Systematic FX Fund Program, a proprietary, systematic trading system, to invest together in one trading vehicle. The General Partner is also the Trading Manager of AE Capital Master. Individual and pooled accounts currently managed by AE Capital are permitted to be members of AE Capital Master. The Trading Manager and AE Capital believe that trading through this master/feeder structure promotes efficiency and economy in the trading process. On February 1, 2019, the assets allocated to ADG for trading were invested in ADG Master, a limited liability company organized under the limited liability company laws of the State of Delaware. ADG Master permits accounts managed by ADG using its Systematic Macro Strategy, a proprietary, systematic trading system, to invest together in one trading vehicle. The General Partner is also the Trading Manager of ADG Master. Individual and pooled accounts currently managed by ADG are permitted to be members of ADG Master. The Trading Manager and ADG believe that trading through this master/feeder structure promotes efficiency and economy in the trading process. On December 1, 2015, the assets allocated to Cambridge for trading were invested in Cambridge Master, a limited partnership organized under the partnership laws of the State of Delaware. Effective October 1, 2018 until its termination effective March 31, 2019, Mesirow had undertaken to perform the Cambridge Initial Advisory Agreement and be bound by its terms in every way as if it were the original party to it in place of Cambridge. Cambridge Master permitted accounts managed by Mesirow/Cambridge using the Asian Markets Alpha Programme and the Emerging Markets Alpha Programme, each a proprietary, systematic trading program, to invest together in one trading vehicle. The Partnership fully redeemed its investment in Cambridge Master on March 31, 2019. The General Partner is not aware of any material changes to the trading programs discussed above or in Note 1, “Organization” during the fiscal quarter ended March 31, 2019. The Partnership’s and the Funds’ trading of futures, forward and option contracts, as applicable, on commodities is done primarily on U.S. and foreign commodity exchanges. The Partnership and the Funds engage in such trading through commodity brokerage accounts maintained with MS&Co. Generally, a limited partner/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 General Partner/Trading Manager at least three days in advance of the Redemption Date. Such withdrawals are classified as a liability when the limited partner/member elects to redeem and informs the Funds. However, a limited partner/member may request a withdrawal as of the end of any day if such request is received by the General Partner/Trading Manager at least three days in advance of the proposed withdrawal day. Management fees, General Partner fees, ongoing selling agent fees and incentive fees are charged at the Partnership level. Clearing fees are borne by the Funds and allocated to the Funds’ limited partners/non-managing As of March 31, 2019, the Partnership owned 64.3% of SECOR Master, 12.2% of FORT Contrarian Master, 66.3% of AE Capital Master and 63.1% of ADG Master. As of December 31, 2018, the Partnership owned 100.0% of Cambridge Master, 84.7% of SECOR Master, 11.5% of FORT Contrarian Master and 79.2% of AE Capital 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 investors as a result of investment in the Funds are approximately the same as they would be if the Partnership traded directly and the redemption rights are not affected. Summarized information reflecting the total assets, liabilities and partners’/members’ capital of the Funds is shown in the following tables: March 31, 2019 Total Assets Total Liabilities Total Capital Cambridge Master $ 12,234,753 $ 12,234,753 $ - SECOR Master 42,956,875 645,175 42,311,700 FORT Contrarian Master 172,460,627 2,623,913 169,836,714 AE Capital Master 18,810,537 111,558 18,698,979 ADG Master 30,746,424 1,075,711 29,670,713 December 31, 2018 Total Assets Total Liabilities Total Capital Cambridge Master $ 21,433,817 $ 4,151,814 $ 17,282,003 SECOR Master 37,347,676 2,170,539 35,177,137 FORT Contrarian Master 180,042,210 1,648,773 178,393,437 AE Capital Master 19,758,302 99,954 19,658,348 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 March 31, 2019 Net Investment Total Trading Income (Loss) Results Net Income (Loss) Cambridge Master $ 71,028 $ (1,169,131 ) $ (1,098,103 ) SECOR Master (47,181 ) 3,326,837 3,279,656 FORT Contrarian Master 803,870 19,700,082 20,503,952 AE Capital Master 86,493 (895,582 ) (809,089 ) ADG Master (a) 68,144 (249,709 ) (181,565 ) For the three months ended March 31, 2018 Net Investment Total Trading Income (Loss) Results Net Income (Loss) Cambridge Master $ 85,288 $ 2,010,327 $ 2,095,615 SECOR Master (50,101 ) 3,566,528 3,516,427 FORT Contrarian Master 251,234 (4,009,717 ) (3,758,483 ) AE Capital Master (b) 38,714 (155,473 ) (116,759 ) (a) From February 1, 2019, commencement of operations for ADG Master, through March 31, 2019. (b) From February 1, 2018, commencement of operations for AE Capital Master, through March 31, 2018. Summarized information reflecting the Partnership’s investment in and the Partnership’s pro-rata March 31, 2019 For the three months ended March 31, 2019 % of Expenses Net Partners’ Fair Income Clearing Professional Income Investment Redemptions Funds Capital Value (Loss) Fees Fees (Loss) Objective Permitted Cambridge Master 0.00% $ - $ (1,069,568 ) $ 13,782 $ 14,753 $ (1,098,103 ) Commodity Portfolio Monthly SECOR Master 21.15% 27,224,703 2,349,716 143,150 10,259 2,196,307 Commodity Portfolio Monthly FORT Contrarian Master 16.08% 20,697,208 2,437,928 13,872 1,996 2,422,060 Commodity Portfolio Monthly AE Capital Master 9.65% 12,416,566 (531,229 ) 11,306 10,761 (553,296 ) Commodity Portfolio Monthly ADG Master (a) 14.57% 18,759,620 (96,507 ) 8,061 7,714 (112,282 ) Commodity Portfolio Monthly Total $ 79,098,097 $ 3,090,340 $ 190,171 $ 45,483 $ 2,854,686 December 31, 2018 For the three months ended March 31, 2018 % of Expenses Net Partners’ Fair Income Clearing Professional Income Investment Redemptions Funds Capital Value (Loss) Fees Fees (Loss) Objective Permitted Cambridge Master 12.90% $ 17,284,725 $ 1,992,300 $ 20,846 $ 15,486 $ 1,955,968 Commodity Portfolio Monthly SECOR Master 22.27% 29,850,097 3,128,180 120,541 14,653 2,992,986 Commodity Portfolio Monthly FORT Contrarian Master 15.30% 20,501,423 (859,945 ) 19,261 7,647 (886,853 ) Commodity Portfolio Monthly AE Capital Master (b) 11.64% 15,603,718 (75,391 ) 2,521 8,988 (86,900 ) Commodity Portfolio Monthly Total $ 83,239,963 $ 4,185,144 $ 163,169 $ 46,774 $ 3,975,201 (a) From February 1, 2019, the date the Partnership invested into ADG Master, through March 31, 2019. (b) From February 1, 2018, the date the Partnership invested into AE Capital Master, through March 31, 2018. |