Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 28, 2014 | Jun. 30, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'AAA Energy Opportunities Fund LLC | ' | ' |
Entity Central Index Key | '0001529004 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $221,466,774 |
Entity Common Stock Shares Outstanding at Public Float Date | ' | ' | 253,792.16 |
Entity Common Stock, Shares Outstanding | ' | 176,131.45 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Statements_of_Financial_Condit
Statements of Financial Condition (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
ASSETS | ' | ' | ||
Investment in Sydling AAA Master Fund LLC, at fair value (cost $173,959,066 and $263,002,544, respectively) | $155,211,763 | $260,633,876 | ||
Cash (Note 3e) | 227,966 | 2,796,107 | ||
Receivable from Sydling AAA Master Fund LLC | 7,049,457 | 3,447,702 | ||
Total Assets | 162,489,186 | 266,877,685 | ||
LIABILITIES | ' | ' | ||
Subscriptions received in advance (Note 3e) | 25,000 | 2,712,500 | ||
Redemption payable | 6,779,022 | 2,839,320 | ||
Accrued expenses: | ' | ' | ||
Advisory fees (Note 4b) | 202,827 | 440,039 | ||
Administrative fees (Notes 4a and 4c) | 67,609 | 110,010 | ||
Professional fees and other expenses | 202,965 | 97,405 | ||
Organizational costs (Note 5) | ' | 207,832 | ||
Total Liabilities | 7,277,423 | 6,407,106 | ||
MEMBERS' CAPITAL | ' | ' | ||
Total Members' Capital | 155,211,763 | 260,470,579 | ||
Total Liabilities and Members' Capital | $162,489,186 | $266,877,685 | ||
Members' Capital per unit (based on 188,141.202 units and 271,244.952 units) | $824.97 | [1] | $960.28 | [1] |
[1] | Per share operating performance is calculated on a monthly basis by dividing each line item by the outstanding units at month-end prior to the reduction of redeemed units. |
Statements_of_Financial_Condit1
Statements of Financial Condition (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Investment in Sydling AAA Master Fund LLC, cost (in dollars) | $173,959,066 | $263,002,544 |
Redeemable Units (in units) | 188,141.20 | 271,244.95 |
Member Designee | ' | ' |
Redeemable Units (in units) | 25 | ' |
Special Member | ' | ' |
Redeemable Units (in units) | 253.781 | ' |
Non-Managing Members | ' | ' |
Redeemable Units (in units) | 187,862.42 | 270,966.17 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
INVESTMENT INCOME | ' | ' | ' |
Interest allocated from Sydling AAA Master Fund LLC | $73,725 | $121,733 | $442 |
EXPENSES | ' | ' | ' |
Expenses allocated from Sydling AAA Master Fund LLC | 8,456,119 | 8,471,229 | 465,391 |
Advisory fees (Note 4b) | 3,268,974 | 4,393,936 | 142,364 |
Administrative fees (Notes 4a and 4c) | 1,089,658 | 1,098,484 | 35,591 |
Professional fees and other expenses | 378,125 | 450,000 | 117,500 |
Organizational costs (Note 5) | ' | ' | 356,282 |
Total Expenses | 13,192,876 | 14,413,649 | 1,117,128 |
NET INVESTMENT LOSS | -13,119,151 | -14,291,916 | -1,116,686 |
TRADING RESULTS | ' | ' | ' |
Net realized gain/(loss) allocated from Sydling AAA Master Fund LLC | -28,924,715 | 12,120,411 | 479,634 |
Net change in unrealized appreciation/(depreciation) allocated from Sydling AAA Master Fund LLC | 6,088,518 | -8,115,812 | 1,885,146 |
Total Trading Results | -22,836,197 | 4,004,599 | 2,364,780 |
Net income (loss) before incentive allocation to Special Member | -35,955,348 | -10,287,317 | 1,248,094 |
Incentive allocation to Special Member (Note 4b) | ' | 253,281 | 317,818 |
Reversal of incentive allocation to Special Member (Note 4b) | ' | -317,818 | ' |
Net income (loss) after incentive allocation to Special Member | ($35,955,348) | ($10,222,780) | $930,276 |
Net income (loss) per unit (in dollars per unit) | ($135.31) | ($50.84) | $11.12 |
Statements_of_Changes_in_Membe
Statements of Changes in Members' Capital (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Increase/Decrease in Members' Capital | ' | ' | ' |
Member's Capital at Beginning of Year/Period | $260,470,579 | $84,899,236 | ' |
Initial capital contributions, 83,626.142 Units of Non-Managing Member interest and the Member Designee's contribution representing 25.000 units | ' | ' | 83,651,142 |
Subscriptions, 42,006.059 and 203,902.887 Units of Non Managing Member interest for the period ended December 31, 2013 and 2012, respectively | 37,095,627 | 201,883,910 | ' |
Incentive allocation to the Special Member representing 253.781 and 314.323 unit equivalents for the period ended December 31, 2012 and 2011, respectively (Note 4b) | ' | 253,281 | 317,818 |
Reversal of incentive allocation to the Special Member representing 314.323 unit equivalents (Note 4b) | ' | -317,818 | ' |
Redemptions, 125,109.809 and 16,562.858 Units of Non Managing Member interest for the period ended December 31, 2013 and 2012, respectively | -106,399,095 | -16,025,250 | ' |
Net Income (Loss) | -35,955,348 | -10,222,780 | 930,276 |
Member's Capital at End of Year/Period | 155,211,763 | 260,470,579 | 84,899,236 |
Non-Managing Members | ' | ' | ' |
Increase/Decrease in Members' Capital | ' | ' | ' |
Member's Capital at Beginning of Year/Period | 260,202,871 | 84,556,140 | ' |
Initial capital contributions, 83,626.142 Units of Non-Managing Member interest and the Member Designee's contribution representing 25.000 units | ' | ' | 83,626,142 |
Subscriptions, 42,006.059 and 203,902.887 Units of Non Managing Member interest for the period ended December 31, 2013 and 2012, respectively | 37,095,627 | 201,883,910 | ' |
Redemptions, 125,109.809 and 16,562.858 Units of Non Managing Member interest for the period ended December 31, 2013 and 2012, respectively | -106,399,095 | -16,025,250 | ' |
Net Income (Loss) | -35,917,627 | -10,211,929 | 929,998 |
Member's Capital at End of Year/Period | 154,981,776 | 260,202,871 | 84,556,140 |
Special Member | ' | ' | ' |
Increase/Decrease in Members' Capital | ' | ' | ' |
Member's Capital at Beginning of Year/Period | 243,701 | 317,818 | ' |
Incentive allocation to the Special Member representing 253.781 and 314.323 unit equivalents for the period ended December 31, 2012 and 2011, respectively (Note 4b) | ' | 253,281 | 317,818 |
Reversal of incentive allocation to the Special Member representing 314.323 unit equivalents (Note 4b) | ' | -317,818 | ' |
Net Income (Loss) | -34,338 | -9,580 | ' |
Member's Capital at End of Year/Period | 209,363 | 243,701 | 317,818 |
Member Designee | ' | ' | ' |
Increase/Decrease in Members' Capital | ' | ' | ' |
Member's Capital at Beginning of Year/Period | 24,007 | 25,278 | ' |
Initial capital contributions, 83,626.142 Units of Non-Managing Member interest and the Member Designee's contribution representing 25.000 units | ' | ' | 25,000 |
Net Income (Loss) | -3,383 | -1,271 | 278 |
Member's Capital at End of Year/Period | $20,624 | $24,007 | $25,278 |
Statements_of_Changes_in_Membe1
Statements of Changes in Members' Capital (Parenthetical) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Non-Managing Members | ' | ' | ' |
Initial capital contributions (in units) | ' | ' | 83,626.14 |
Subscriptions, Units of Non-Managing Member interest (in units) | 42,006.06 | 203,902.89 | ' |
Redemptions of Non-Managing Member Interest (in units) | 125,109.81 | 16,562.86 | ' |
Special Member | ' | ' | ' |
Incentive allocation (in units) | ' | 253.781 | 314.323 |
Member Designee | ' | ' | ' |
Initial capital contributions (in units) | ' | ' | 25 |
Financial_Highlights
Financial Highlights (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Per share operating performance: | ' | ' | ' | |||
Members' capital per unit, beginning of year/period (in dollars per unit) | $960.28 | [1] | $1,011.12 | [1] | $1,000 | |
Income from investment operations: | ' | ' | ' | |||
Net investment loss (in dollars per unit) | ($51.58) | ($64.11) | ($17.15) | |||
Net realized and unrealized gain from investment activities (in dollars per unit) | ($83.73) | [2] | $12 | [2] | $28.27 | [2] |
Incentive allocation to Special Member (in dollars per unit) | ' | ($0.94) | ' | |||
Reversal of incentive allocation to Special Member (in dollars per unit) | ' | $2.21 | [3] | ' | ||
Total from investment operations (in dollars per unit) | ($135.31) | ($50.84) | $11.12 | |||
Members' capital per unit, end of year/period (in dollars per unit) | $824.97 | [1] | $960.28 | [1] | $1,011.12 | [1] |
Ratio/Supplemental Data: | ' | ' | ' | |||
Ratio of net investment loss to average Members' capital (as a percent) | -6.17% | [4] | -6.89% | [4] | -1.32% | [4] |
Ratio of total expenses to average Members' capital before incentive allocation (as a percent) | 6.20% | 6.95% | 1.32% | |||
Ratio of incentive allocation to average Members' capital (as a percent) | ' | 0.12% | 1.32% | |||
Ratio of reversal of incentive allocation to average Members' capital (as a percent) | ' | 0.15% | [3] | ' | ||
Ratio of total expenses and incentive allocation to average members' capital (as a percent) | 6.20% | 6.92% | ' | |||
Ratio of total expenses to average Members' capital after incentive allocation (as a percent) | ' | ' | 1.69% | |||
Total return before incentive allocation (as a percent) | -14.09% | [5] | -5.00% | [5] | 1.47% | [5] |
Incentive allocation (as a percent) | ' | 0.12% | -0.37% | |||
Reversal of incentive allocation (as a percent) | ' | 0.15% | [3] | ' | ||
Total return after incentive allocation (as a percent) | -14.09% | [5] | -5.03% | [5] | 1.10% | [5] |
Member's Capital at End of Year/Period | $155,211,763 | $260,470,579 | $84,899,236 | |||
[1] | Per share operating performance is calculated on a monthly basis by dividing each line item by the outstanding units at month-end prior to the reduction of redeemed units. | |||||
[2] | Net realized and unrealized gain/(loss) from investment activities has been adjusted to reflect organization costs amortized over 24 months for the purpose of subscriptions and redemptions (Note 5). The organization cost has not been annualized for the purpose calculation per share operating performance. As of December 31, 2013, all organization costs have been reimbursed. | |||||
[3] | The accrued incentive allocation at December 31, 2011 was reversed during the year ended December 31, 2012. The incentive allocation has not been annualized for the purpose of calculating total return and ratios. | |||||
[4] | The average member's capital used in the above ratios are calculated by using member's capital after to year end withdrawals. | |||||
[5] | Total return assumes a purchase of an interest in the Fund at the beginning of the period and a sale of the Fund interest on the last day of the period noted. For the period from December 1, 2011 (commencement of trading operations) through December 31, 2011 where the period is less than the fiscal year, total return has not been annualized. |
Organization
Organization | 12 Months Ended |
Dec. 31, 2013 | |
Organization | ' |
Organization | ' |
1. Organization | |
AAA Energy Opportunities Fund LLC (the “Fund”) is a Delaware limited liability company formed on August 10, 2011. Trading operations of the Fund commenced on December 1, 2011. The Fund’s investment objective is to seek to achieve capital appreciation through speculative trading, directly or indirectly, in commodity interests generally including, commodity futures and commodity option contracts on United States exchanges and certain foreign exchanges and swaps. The Fund intends to trade only energy and energy related products, as well as the Goldman Sachs Commodity Index (an index future comprised of energy and other products) traded on the Chicago Mercantile Exchange, but is authorized to trade commodity futures, swaps and options contracts of any kind. The Fund invests substantially all of its assets in Sydling AAA Master Fund LLC (the “Master Fund”), also a Delaware limited liability company, that has the same investment objective as the Fund. The financial statements of the Master Fund, including the condensed schedule of investments, are included elsewhere in this report and should be read with the Fund’s financial statements. The percentage of the Master Fund’s capital owned by the Fund at December 31, 2013 and 2012 was 100%. The performance of the Fund is directly affected by the performance of the Master Fund. | |
The Fund is member managed for purposes of Delaware law. Pursuant to the limited liability company agreement of the Fund, as may be amended from time to time (the “LLC Agreement”), the members of the Fund have appointed Sydling Futures Management LLC (“Sydling”) to act as the Fund’s trading manager and commodity pool operator. Sydling is registered as a commodity pool operator and a commodity trading advisor and is a member of the National Futures Association (“NFA”) effective August 10, 2011. Sydling, a wholly owned subsidiary of UBS Alternatives LLC, was formed on August 4, 2011. UBS Alternatives LLC is a wholly owned subsidiary of UBS Americas Inc. which ultimately is a subsidiary of UBS AG. | |
AAA Capital Management Advisors, Ltd. (the “Advisor” or “AAA”) serves as the trading advisor to the Fund and the Master Fund. In addition, AAA is also a special member of the Fund. | |
BNY Mellon Investment Servicing (US) Inc. serves as administrator (the “Administrator”) of the Fund. | |
The Fund privately and continually offers units of limited liability company interest in the Fund to qualified investors and are generally accepted monthly. There is no maximum number of units that may be sold in the Fund. Sydling may reject any subscription for any reason for a reasonable period of time after receipt. Generally, units may be redeemed on the last day of any month with ten days written notice provided that such units are held for three full months. In general, the Fund will make payment for redeemed units within ten business days following the redemption date. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2013 | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | ' |
2. Recent Accounting Pronouncements | |
In December 2011, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2011-11, Disclosures about Offsetting Assets and Liabilities, which creates a new disclosure requirement about the nature of an entity’s rights of setoff and the related arrangements associated with its financial instruments and derivative instruments. Entities are required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial condition and instruments and transactions subject to an agreement similar to a master netting arrangement. The objective of this disclosure is to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of International Financial Reporting Standards (“IFRS”). The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Fund should also provide the disclosures retrospectively for all comparative periods presented. The impact of the pronouncement was not material as the Master Fund has presented both net unrealized gains and losses on open future contracts on the statement of operations and disclosed gross unrealized gains and losses in Note 5, “Trading Activities”. The Master Fund’s financial statements are attached to the Fund’s financial statements. | |
In June 2013, the FASB issued ASU No. 2013-08, Financial Services — Investment Companies (Topic 946), which creates a two-tiered approach to assess whether an entity is an investment company. The guidance will also require an investment company to measure non-controlling ownership interests in other investment companies at fair value and will require additional disclosures relating to investment company status, any changes thereto and information about financial support provided or contractually required to be provided to any of the investment company’s investees. The guidance is effective for financial statements with fiscal years beginning on or after December 15, 2013 and interim periods within those fiscal years. The Fund and the Master Fund are investment companies as described in ASU No. 2013-08. The Fund carries its investment in the Master Fund at fair value and therefore, there is no impact to the Fund’s financial statements as a result of adopting the pronouncement. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Significant Accounting Policies | ' |
Significant Accounting Policies | ' |
3. Significant Accounting Policies | |
a. Use of Estimates | |
The preparation of financial statements and accompanying notes in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in members’ capital from operations during the reporting period. Actual results could differ from those estimates. | |
b. Statements of Cash Flows | |
The Fund is not required to provide Statements of Cash Flows in accordance with Accounting Standard Codification (“ASC”) 230, Statement of Cash Flows. | |
c. Fair Value Measurements | |
The Fund values its investments at fair value, in accordance with U.S. GAAP, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | |
Various inputs are used in determining the fair value of the Fund’s investments which are summarized in the three broad levels listed below. | |
Level 1 — quoted prices (unadjusted) in active markets for identical securities. | |
Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment spreads, credit risk, etc.) | |
Level 3 — significant unobservable inputs (including the Master Fund’s own assumptions and indicative non-binding broker quotes.) | |
Fair value measurement disclosure for each class of assets and liabilities requires greater disaggregation than the Fund’s line items in the Statements of Financial Condition. The Fund determines the appropriate classes for those disclosures on the basis of the nature and risks of the assets and liabilities and their classification in the fair value hierarchy (i.e., Level 1, Level 2, and Level 3). | |
The Fund values investments in the Master Fund where there are no other rights or obligations inherent within the ownership interest held by the Fund based on the end of the day net asset value of the Master Fund (Level 2). The value of the Fund’s investment in the Master Fund reflects its proportional interest in the Master Fund. As of and for the years ended December 31, 2013 and 2012, and the period from December 1, 2011 (commencement of trading operations) to December 31, 2011, the Fund did not hold any derivative instruments that are based on unadjusted quoted prices in active markets for identical assets (Level 2) or priced at fair value using unobservable inputs through the application of management’s assumptions and internal valuation pricing models (Level 3). | |
For disclosures regarding the Master Fund’s investments and fair value measurements, see Note 3, “Significant Accounting Policies” on the attached Master Fund’s financial statements. | |
d. Investment in Master Fund | |
The Fund records its investment in the Master Fund at fair value and is represented by the Fund’s proportionate interest in the members’ capital of the Master Fund at December 31, 2013 and 2012. Valuation of securities held by the Master Fund is discussed in the notes to the Master Fund’s financial statements. The Fund records its pro rata share of the Master Fund’s income, expenses and realized and unrealized gains and losses. The performance of the Fund is directly attributable to the performance of the Master Fund. The Fund records its subscription and redemption of the capital account related to its investment in the Master Fund on the transaction date. The Master Fund will adjust the capital account of the Fund. Brokerage, clearing and transaction fees are incurred by the Master Fund and are reflected in the pro rata allocation received by the Fund from the Master Fund. | |
e. Subscriptions Received in Advance | |
Subscriptions received in advance represent amount paid by the non-managing members for a percentage ownership into the Fund which have not yet been added as members’ capital as of December 31, 2013 and 2012. The amount paid is held as cash in the Fund’s escrow account and represents the cash on the Statements of Financial Condition. | |
f. Redemptions Payable | |
Pursuant to ASC Topic 480, Distinguishing Liabilities from Equity, capital withdrawals effective December 31, 2013 and 2012 have been reflected as redemptions payable in the Statements of Financial Condition. | |
g. Income Taxes | |
The Fund is classified as a partnership for U.S. federal income tax purposes, and the Fund will not pay U.S. federal income tax. As a result, no income tax liability or expense has been recorded in the financial statements. | |
Management has analyzed the Master Fund’s tax positions for the open tax period and has concluded that no provision is required in the Master Fund’s financial statements. The Master Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. For the years ended December 31, 2013 and 2012, and the period from December 1, 2011 (commencement of trading operations) to December 31, 2011, the Master Fund did not incur any interest or penalties. |
Related_Party_Transactions_and
Related Party Transactions and Other Agreements | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions and Other Agreements | ' |
Related Party Transactions and Other Agreements | ' |
4. Related Party Transactions and Other Agreements | |
a. Limited Liability Company Agreement | |
Sydling administers the business affairs of the Fund including selecting one or more advisors to make trading decisions for the Fund. The Fund will pay Sydling a monthly administration fee in return for its services equal to 1/12 of 0.50% (0.50% per year) of month-end adjusted members’ capital of the Fund. Month-end members’ capital, for the purpose of calculating administration fees are members’ capital, as defined in the Limited Liability Company Agreement, prior to the reduction of the current month’s incentive allocation accrual, the monthly advisory fee, Sydling’s administration fee and any redemptions or distributions as of the end of such month. For the years ended December 31, 2013 and 2012 and for the period from December 1, 2011 (commencement of trading operations) to December 31, 2011, the Fund incurred administrative fees of $1,089,658, $1,098,484 and $35,591, respectively, of which $67,609 and $110,010 remained payable and are reflected on the Statements of Financial Condition as of December 31, 2013 and 2012, respectively. | |
Each unit, when purchased by a member, shall be fully paid and non-assessable. No member shall be liable for Fund obligations in excess of the capital contributed by the member, plus such member’s share of undistributed profits, if any. | |
b. Trading Advisory Agreement | |
Sydling, on behalf of the Fund, has entered into an advisory agreement (the “Trading Advisory Agreement”) with the Advisor, a registered commodity trading advisor. The Advisor is not affiliated with Sydling or UBS Securities LLC or its affiliates and is not responsible for the organization or operation of the Fund. The Trading Advisory Agreement provides that the Advisor has sole discretion in determining the investment of the assets of the Fund. During the year ended December 31, 2012, the Fund paid the Advisor a monthly advisory fee equal to 1/12 of 2% (2% per year) of month-end members’ capital of the Fund. During the year ended December 31, 2013, the Fund paid the Advisor a monthly advisory fee equal to 1/12 of 1.5% (1.5% per year) of month-end members’ capital of the Fund. Month-end members’ capital, for the purpose of calculating advisory fees are members’ capital, as defined in the Limited Liability Company Agreement, prior to the reduction of the current month’s incentive allocation accrual, the monthly Advisory fee, Sydling’s administration fee and any redemptions or distributions as of the end of such month. The Trading Advisory Agreement may be terminated upon notice by either party. For the years ended December 31, 2013 and 2012 and for the period from December 1, 2011 (commencement of trading operations) to December 31, 2011, the Fund incurred advisory fees of $3,268,974, $4,393,936 and $142,364, respectively, of which $202,827 and $440,039 remained payable and are reflected on the Statements of Financial Condition as of December 31, 2013 and 2012, respectively. | |
In addition, the Advisor is a special member of the Fund and receives a quarterly incentive allocation to its capital account in the Fund in the form of units of the Fund, the value of which shall be equal to 20% of New Trading Profits, as defined in the Trading Advisory Agreement, earned on behalf of the Fund during each calendar quarter and are issued as special member units. Pursuant to the Trading Advisory Agreement, the first incentive allocation shall be made at March 31, 2012 and, therefore no units were issued to the Advisor as of December 31, 2011 for the incentive allocation recorded during the period. The incentive allocation recorded at December 31, 2011 was reversed during the first quarter of 2012. The amount of $253,281 represents the incentive allocation earned on new trading profits earned during the third quarter of 2012. | |
In allocating substantially all of the assets of the Fund to the Master Fund, Sydling considered the Advisor’s past performance, trading style, volatility of markets traded and fee requirements. Sydling may modify or terminate the allocation of assets to the Advisor at any time. | |
c. Administration Agreement | |
Sydling, on behalf of the Fund, has entered into an administration agreement with the Administrator. The Administrator will assist Sydling in performing certain day-to-day tasks on behalf of the Fund, including but not limited to, calculating daily or periodic portfolio valuations, reconciling cash and portfolio positions, providing portfolio reporting, maintaining books and records and calculating all fund fees. Sydling will pay a portion of the administrative fee it receives from the Fund to the Administrator. |
Organization_Costs
Organization Costs | 12 Months Ended |
Dec. 31, 2013 | |
Organization Costs | ' |
Organization Costs | ' |
5. Organization Costs | |
In 2011, organization costs of $356,282 relating to the issuance and marketing of the Fund’s units offered were initially paid by UBS Financial Services Inc. (“UBSFSI”). These costs have been recorded as organization costs in the Statements of Financial Condition and represent the amount due to UBSFSI. These costs are being reimbursed to UBSFSI by the Fund in 24 monthly installments. The monthly installments will reduce the members’ capital for the purpose of calculating administrative and advisory fees and the incentive allocation. | |
As of December 31, 2012, costs that had not been reimbursed amounted to $207,832. The remaining costs were reimbursed by the Fund to UBSFSI in 2013. |
Subscriptions_Distributions_an
Subscriptions, Distributions and Redemptions | 12 Months Ended |
Dec. 31, 2013 | |
Subscriptions, Distributions and Redemptions | ' |
Subscriptions, Distributions and Redemptions | ' |
6. Subscriptions, Distributions and Redemptions | |
The Fund will offer units privately through its selling agent, UBSFSI. UBS Securities LLC will pay a portion of its brokerage commissions to UBSFSI financial advisors who have sold units in the Fund. The Fund may engage additional selling agents in the future, including selling agents affiliated or unaffiliated with Sydling. The minimum initial subscription in the Fund is $25,000 (or $10,000 in the case of ERISA Plans). The minimum additional investment for those who are current members and are qualified investors is $10,000. Sydling may, in its sole discretion, lower these amounts. Subscriptions for units are made five business days prior to the end of a month and are made at the NAV on the first day of the following month. Sydling may reject any subscription for any reason for a reasonable period of time after receipt. | |
Distributions, if any, will be made at the sole discretion of Sydling. | |
Contingent upon 10 days’ prior notice to the trading manager, redemptions of the Fund’s units are made at the NAV as of the end of any month, provided that such units were held for three full months. The units are classified as a liability when a member elects to redeem and informs the trading manager. Sydling may, in its sole discretion, modify the length of required notices or other restrictions. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events | ' |
Subsequent Events | ' |
7. Subsequent Events | |
Management has evaluated the impact of all subsequent events on the Fund through the date these financial statements were available to be issued. Subsequent to year end additional subscriptions were received from the non-managing members totaling $642,000. Subsequent to year end redemptions were paid to the non-managing members totaling $10,444,709. Management has determined that there were no additional subsequent events requiring recognition or disclosure in the financial statements. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Significant Accounting Policies | ' |
Use of Estimates | ' |
a. Use of Estimates | |
The preparation of financial statements and accompanying notes in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in members’ capital from operations during the reporting period. Actual results could differ from those estimates. | |
Statements of Cash Flows | ' |
b. Statements of Cash Flows | |
The Fund is not required to provide Statements of Cash Flows in accordance with Accounting Standard Codification (“ASC”) 230, Statement of Cash Flows. | |
Fair Value Measurements | ' |
c. Fair Value Measurements | |
The Fund values its investments at fair value, in accordance with U.S. GAAP, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | |
Various inputs are used in determining the fair value of the Fund’s investments which are summarized in the three broad levels listed below. | |
Level 1 — quoted prices (unadjusted) in active markets for identical securities. | |
Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment spreads, credit risk, etc.) | |
Level 3 — significant unobservable inputs (including the Master Fund’s own assumptions and indicative non-binding broker quotes.) | |
Fair value measurement disclosure for each class of assets and liabilities requires greater disaggregation than the Fund’s line items in the Statements of Financial Condition. The Fund determines the appropriate classes for those disclosures on the basis of the nature and risks of the assets and liabilities and their classification in the fair value hierarchy (i.e., Level 1, Level 2, and Level 3). | |
The Fund values investments in the Master Fund where there are no other rights or obligations inherent within the ownership interest held by the Fund based on the end of the day net asset value of the Master Fund (Level 2). The value of the Fund’s investment in the Master Fund reflects its proportional interest in the Master Fund. As of and for the years ended December 31, 2013 and 2012, and the period from December 1, 2011 (commencement of trading operations) to December 31, 2011, the Fund did not hold any derivative instruments that are based on unadjusted quoted prices in active markets for identical assets (Level 2) or priced at fair value using unobservable inputs through the application of management’s assumptions and internal valuation pricing models (Level 3). | |
For disclosures regarding the Master Fund’s investments and fair value measurements, see Note 3, “Significant Accounting Policies” on the attached Master Fund’s financial statements. | |
Investment in Master Fund | ' |
d. Investment in Master Fund | |
The Fund records its investment in the Master Fund at fair value and is represented by the Fund’s proportionate interest in the members’ capital of the Master Fund at December 31, 2013 and 2012. Valuation of securities held by the Master Fund is discussed in the notes to the Master Fund’s financial statements. The Fund records its pro rata share of the Master Fund’s income, expenses and realized and unrealized gains and losses. The performance of the Fund is directly attributable to the performance of the Master Fund. The Fund records its subscription and redemption of the capital account related to its investment in the Master Fund on the transaction date. The Master Fund will adjust the capital account of the Fund. Brokerage, clearing and transaction fees are incurred by the Master Fund and are reflected in the pro rata allocation received by the Fund from the Master Fund. | |
Subscriptions Received in Advance | ' |
e. Subscriptions Received in Advance | |
Subscriptions received in advance represent amount paid by the non-managing members for a percentage ownership into the Fund which have not yet been added as members’ capital as of December 31, 2013 and 2012. The amount paid is held as cash in the Fund’s escrow account and represents the cash on the Statements of Financial Condition. | |
Redemptions Payable | ' |
f. Redemptions Payable | |
Pursuant to ASC Topic 480, Distinguishing Liabilities from Equity, capital withdrawals effective December 31, 2013 and 2012 have been reflected as redemptions payable in the Statements of Financial Condition. | |
Income Taxes | ' |
g. Income Taxes | |
The Fund is classified as a partnership for U.S. federal income tax purposes, and the Fund will not pay U.S. federal income tax. As a result, no income tax liability or expense has been recorded in the financial statements. | |
Management has analyzed the Master Fund’s tax positions for the open tax period and has concluded that no provision is required in the Master Fund’s financial statements. The Master Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. For the years ended December 31, 2013 and 2012, and the period from December 1, 2011 (commencement of trading operations) to December 31, 2011, the Master Fund did not incur any interest or penalties. |
Organization_Details
Organization (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Organization | ' |
Notice period for redemption of units | '10 days |
Period for which units are required to be held for redemptions at the NAV on the last day of any month | '3 months |
Maximum number of business days from redemption date within which the entity will make payment for redeemed units | '10 days |
Significant_Accounting_Policie2
Significant Accounting Policies (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Income Taxes | ' |
Income tax liability or expense | $0 |
Related_Party_Transactions_and1
Related Party Transactions and Other Agreements (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | |
Advisor | Advisor | Advisor | Advisor | LLC Agreement | LLC Agreement | LLC Agreement | LLC Agreement | Trading Advisory Agreement | Trading Advisory Agreement | Trading Advisory Agreement | Trading Advisory Agreement | Trading Advisory Agreement | ||||
Sydling | Sydling | Sydling | Sydling | Advisor | Advisor | |||||||||||
Minimum | ||||||||||||||||
advisor | ||||||||||||||||
Related Party Transactions and Other Agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of advisors selected to make trading decisions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' |
Monthly administration fee as a percentage of members' capital | ' | ' | ' | ' | ' | ' | ' | ' | 0.04% | ' | ' | ' | ' | ' | ' | ' |
Annual administration fee as a percentage of members' capital | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' |
Monthly advisory fee as a percentage of members' capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.13% | 0.17% | ' | ' |
Administrative fees | $1,089,658 | $1,098,484 | $35,591 | ' | ' | ' | ' | $35,591 | $1,089,658 | $1,098,484 | ' | ' | ' | ' | ' | ' |
Administrative Fees remained payable | 67,609 | 110,010 | ' | ' | ' | ' | ' | ' | 67,609 | 110,010 | ' | ' | ' | ' | ' | ' |
Advisory Fees | 3,268,974 | 4,393,936 | 142,364 | ' | ' | ' | ' | ' | ' | ' | ' | 142,364 | 3,268,974 | 4,393,936 | ' | ' |
Advisory Fees remained payable | 202,827 | 440,039 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 202,827 | 440,039 | ' | ' |
Annual advisory fee as a percentage of members' capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 2.00% | ' | ' |
Quarterly incentive allocation as a percentage of new trading profits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' |
Number of units issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Incentive allocation | $155,211,763 | $260,470,579 | $84,899,236 | $209,363 | $243,701 | $253,281 | $317,818 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Organization_Costs_Details
Organization Costs (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 | |
item | |||
Organization Costs | ' | ' | ' |
Organization costs | ' | $356,282 | ' |
Number of monthly installments in which organization costs are to be repaid | 24 | ' | ' |
Organizational costs not reimbursed by fund | ' | ' | $207,832 |
Subscriptions_Distributions_an1
Subscriptions, Distributions and Redemptions (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Subscriptions, Distributions and Redemptions | ' |
Minimum initial subscription | $25,000 |
Minimum initial subscription in case of ERISA Plans | 10,000 |
Minimum additional investment requirement for current members and are qualified investors | $10,000 |
Minimum number of business days prior to the month end up to which subscriptions are made | '5 days |
Notice period to Trading Manager for redemption of units | '10 days |
Period for which units are required to be held for redemptions at the NAV on the last day of any month | '3 months |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent event, Non-Managing Members, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent event | Non-Managing Members | ' |
Subsequent Events | ' |
Additional subscription received | $642,000 |
Redemptions paid | $10,444,709 |
Statements_of_Financial_Condit2
Statements of Financial Condition - Sydling (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ' | ' |
Total Assets | $162,489,186 | $266,877,685 |
LIABILITIES AND MEMBER'S CAPITAL | ' | ' |
Redemptions payable | 6,779,022 | 2,839,320 |
Accrued expenses: | ' | ' |
Professional fees and other expenses | 202,965 | 97,405 |
Total Liabilities | 7,277,423 | 6,407,106 |
MEMBER'S CAPITAL | ' | ' |
Total Member's Capital | 155,211,763 | 260,470,579 |
Total Liabilities and Members' Capital | 162,489,186 | 266,877,685 |
Non-Managing Members | ' | ' |
MEMBER'S CAPITAL | ' | ' |
Total Member's Capital | 154,981,776 | 260,202,871 |
Sydling AAA Master Fund LLC | ' | ' |
ASSETS | ' | ' |
Future options purchased, at fair value (premiums paid $15,387,440 and $60,769,838, respectively) | 8,382,120 | 48,831,224 |
Cash (including restricted cash of $2,075,137 and $8,149,158, respectively) | 158,555,081 | 233,755,964 |
Net unrealized appreciation on open futures contracts | 1,717,472 | ' |
Interest receivable | 1,672 | 5,776 |
Total Assets | 168,656,345 | 282,592,964 |
LIABILITIES AND MEMBER'S CAPITAL | ' | ' |
Future options written, at fair value (premiums received $11,024,220 and $23,375,878, respectively) | 5,878,520 | 16,637,538 |
Net unrealized depreciation on open futures contracts | ' | 1,030,392 |
Redemptions payable | 7,049,457 | 3,447,702 |
Accrued expenses: | ' | ' |
Brokerage commissions | 474,646 | 772,567 |
Professional fees and other expenses | 41,959 | 70,889 |
Total Liabilities | 13,444,582 | 21,959,088 |
MEMBER'S CAPITAL | ' | ' |
Total Member's Capital | 155,211,763 | 260,633,876 |
Total Liabilities and Members' Capital | 168,656,345 | 282,592,964 |
Sydling AAA Master Fund LLC | Non-Managing Members | ' | ' |
MEMBER'S CAPITAL | ' | ' |
Total Member's Capital | $155,211,763 | $260,633,876 |
Statements_of_Financial_Condit3
Statements of Financial Condition (Parenthetical) - Sydling (Sydling AAA Master Fund LLC, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Sydling AAA Master Fund LLC | ' | ' |
Premiums paid | $15,387,440 | $60,769,838 |
Restricted cash | 2,075,137 | 8,149,158 |
Premiums received | $11,024,220 | $23,375,878 |
Condensed_Schedule_of_Investme
Condensed Schedule of Investments - Sydling (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Schedule of Investments | ' | ' |
TOTAL MEMBER'S CAPITAL | $155,211,763 | $260,470,579 |
Sydling AAA Master Fund LLC | ' | ' |
Condensed Schedule of Investments | ' | ' |
FUTURES OPTIONS PURCHASED | 8,382,120 | 48,831,224 |
FUTURE OPTIONS WRITTEN | -5,878,520 | -16,637,538 |
OTHER ASSETS IN EXCESS OF OTHER LIABILITIES | 150,990,691 | 229,470,582 |
TOTAL MEMBER'S CAPITAL | 155,211,763 | 260,633,876 |
Other assets in excess of other liabilities as percent of member's capital | 97.28% | 88.04% |
Member's capital as percent of investments | 100.00% | 100.00% |
Premiums paid | 15,387,440 | 60,769,838 |
Premiums received | 11,024,220 | 23,375,878 |
Sydling AAA Master Fund LLC | ENERGY | ' | ' |
Condensed Schedule of Investments | ' | ' |
FUTURES OPTIONS PURCHASED | 8,382,120 | 48,831,224 |
FUTURE OPTIONS WRITTEN | -5,878,520 | -16,637,538 |
Sydling AAA Master Fund LLC | Futures Contracts | ' | ' |
Condensed Schedule of Investments | ' | ' |
Fair Value | 1,717,472 | -1,030,392 |
Percent of Member's Capital | 1.11% | -0.39% |
Sydling AAA Master Fund LLC | Futures and Options | ' | ' |
Condensed Schedule of Investments | ' | ' |
FUTURES OPTIONS PURCHASED | 4,221,072 | 31,163,294 |
Percent of Member's Capital | 2.72% | 11.96% |
Sydling AAA Master Fund LLC | Contract purchased or owned | Futures Options | ' | ' |
Condensed Schedule of Investments | ' | ' |
FUTURES OPTIONS PURCHASED | 8,382,120 | 2,271,370 |
Percent of Member's Capital | 5.40% | 18.73% |
Premiums paid | 15,387,440 | 60,769,838 |
Sydling AAA Master Fund LLC | Contract purchased or owned | Futures Options | ENERGY | ' | ' |
Condensed Schedule of Investments | ' | ' |
Number of Contracts | 2,053 | 6,931 |
FUTURES OPTIONS PURCHASED | 8,382,120 | 2,271,370 |
Percent of Member's Capital | 5.40% | 18.73% |
Sydling AAA Master Fund LLC | Contract purchased or owned | Call options | ENERGY | ' | ' |
Condensed Schedule of Investments | ' | ' |
FUTURES OPTIONS PURCHASED | 6,110,750 | 27,301,574 |
Percent of Member's Capital | 3.94% | 10.47% |
Sydling AAA Master Fund LLC | Contract purchased or owned | Call options | ENERGY | Crude Oil Feb 2013 - Dec 2015 | ' | ' |
Condensed Schedule of Investments | ' | ' |
Number of Contracts | ' | 3,051 |
FUTURES OPTIONS PURCHASED | ' | 26,725,600 |
Percent of Member's Capital | ' | 10.25% |
Sydling AAA Master Fund LLC | Contract purchased or owned | Call options | ENERGY | Other call options | ' | ' |
Condensed Schedule of Investments | ' | ' |
Number of Contracts | 1,471 | 933 |
FUTURES OPTIONS PURCHASED | 6,110,750 | 575,974 |
Percent of Member's Capital | 3.94% | 0.22% |
Sydling AAA Master Fund LLC | Contract purchased or owned | Put options | ENERGY | ' | ' |
Condensed Schedule of Investments | ' | ' |
FUTURES OPTIONS PURCHASED | 2,271,370 | 21,529,650 |
Percent of Member's Capital | 1.46% | 8.26% |
Sydling AAA Master Fund LLC | Contract purchased or owned | Put options | ENERGY | Crude Oil Feb 2013 - Dec 2014 | ' | ' |
Condensed Schedule of Investments | ' | ' |
Number of Contracts | ' | 2,238 |
FUTURES OPTIONS PURCHASED | ' | 14,978,610 |
Percent of Member's Capital | ' | 5.75% |
Sydling AAA Master Fund LLC | Contract purchased or owned | Put options | ENERGY | Other put options | ' | ' |
Condensed Schedule of Investments | ' | ' |
Number of Contracts | 582 | 709 |
FUTURES OPTIONS PURCHASED | 2,271,370 | 6,551,040 |
Percent of Member's Capital | 1.46% | 2.51% |
Sydling AAA Master Fund LLC | Contract purchased or owned | Futures Contracts | ' | ' |
Condensed Schedule of Investments | ' | ' |
Fair Value | 558,030 | 9,348,307 |
Percent of Member's Capital | 0.36% | 3.59% |
Sydling AAA Master Fund LLC | Contract purchased or owned | Futures Contracts | ENERGY | ' | ' |
Condensed Schedule of Investments | ' | ' |
Number of Contracts | 1,330 | 9,073 |
Fair Value | 558,030 | 9,348,307 |
Percent of Member's Capital | 0.36% | 3.59% |
Sydling AAA Master Fund LLC | Contract written or sold | Futures Options | ' | ' |
Condensed Schedule of Investments | ' | ' |
FUTURE OPTIONS WRITTEN | -5,878,520 | -16,637,538 |
Percent of Member's Capital | -3.79% | -6.38% |
Premiums received | 11,024,220 | 23,375,878 |
Sydling AAA Master Fund LLC | Contract written or sold | Futures Options | ENERGY | ' | ' |
Condensed Schedule of Investments | ' | ' |
Number of Contracts | -2,436 | -4,616 |
FUTURE OPTIONS WRITTEN | -5,878,520 | -16,637,538 |
Percent of Member's Capital | -3.79% | -6.38% |
Sydling AAA Master Fund LLC | Contract written or sold | Call options | ENERGY | ' | ' |
Condensed Schedule of Investments | ' | ' |
FUTURE OPTIONS WRITTEN | -2,041,620 | -12,896,415 |
Percent of Member's Capital | -1.32% | -4.95% |
Sydling AAA Master Fund LLC | Contract written or sold | Call options | ENERGY | Other call options | ' | ' |
Condensed Schedule of Investments | ' | ' |
Number of Contracts | -1,405 | -3,000 |
FUTURE OPTIONS WRITTEN | -2,041,620 | -12,896,415 |
Percent of Member's Capital | -1.32% | -4.95% |
Sydling AAA Master Fund LLC | Contract written or sold | Put options | ENERGY | ' | ' |
Condensed Schedule of Investments | ' | ' |
FUTURE OPTIONS WRITTEN | -3,836,900 | -3,741,123 |
Percent of Member's Capital | -2.47% | -1.43% |
Sydling AAA Master Fund LLC | Contract written or sold | Put options | ENERGY | Other put options | ' | ' |
Condensed Schedule of Investments | ' | ' |
Number of Contracts | -1,031 | -1,616 |
FUTURE OPTIONS WRITTEN | -3,836,900 | -3,741,123 |
Percent of Member's Capital | -2.47% | -1.43% |
Sydling AAA Master Fund LLC | Contract written or sold | Futures Contracts | ' | ' |
Condensed Schedule of Investments | ' | ' |
Fair Value | 1,159,442 | -10,378,699 |
Percent of Member's Capital | 0.75% | -3.98% |
Sydling AAA Master Fund LLC | Contract written or sold | Futures Contracts | ENERGY | ' | ' |
Condensed Schedule of Investments | ' | ' |
Number of Contracts | -1,560 | -7,965 |
Fair Value | $1,159,442 | ($10,378,699) |
Percent of Member's Capital | 0.75% | -3.98% |
Statements_of_Operations_Sydli
Statements of Operations - Sydling (USD $) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
EXPENSES | ' | ' | ' | ' |
Organizational expenses | ' | ' | ' | $356,282 |
Total Expenses | ' | 13,192,876 | 14,413,649 | 1,117,128 |
Sydling AAA Master Fund LLC | ' | ' | ' | ' |
INVESTMENT INCOME | ' | ' | ' | ' |
Interest income | ' | 73,725 | 121,733 | 442 |
EXPENSES | ' | ' | ' | ' |
Brokerage, clearing and transaction fees | ' | 8,371,119 | 8,390,611 | 281,094 |
Professional fees | ' | 85,000 | 80,618 | 65,500 |
Organizational expenses | ' | ' | ' | 118,797 |
Total Expenses | ' | 8,456,119 | 8,471,229 | 465,391 |
Net Investment (Loss) | ' | -8,382,394 | -8,349,496 | -464,949 |
NET REALIZED AND UNREALIZED GAIN/(LOSS) FROM DERIVATIVE INSTRUMENTS | ' | ' | ' | ' |
Net realized gain/(loss) | ' | -28,924,715 | 12,120,411 | 479,634 |
Net change in unrealized appreciation/(depreciation) | ' | 6,088,518 | -8,115,812 | 1,885,146 |
Net Realized and Unrealized Gain/(Loss) from Derivative Instruments | 2,364,780 | -22,836,197 | 4,004,599 | 2,364,780 |
Net Income/(Loss) | ' | -31,218,591 | -4,344,897 | 1,899,831 |
Sydling AAA Master Fund LLC | Options on futures | ' | ' | ' | ' |
NET REALIZED AND UNREALIZED GAIN/(LOSS) FROM DERIVATIVE INSTRUMENTS | ' | ' | ' | ' |
Net realized gain/(loss) | ' | -9,657,707 | -4,798,263 | -511,969 |
Net change in unrealized appreciation/(depreciation) | ' | 3,340,654 | -5,988,005 | 787,731 |
Sydling AAA Master Fund LLC | Futures | ' | ' | ' | ' |
NET REALIZED AND UNREALIZED GAIN/(LOSS) FROM DERIVATIVE INSTRUMENTS | ' | ' | ' | ' |
Net realized gain/(loss) | ' | -19,267,008 | 16,918,674 | 991,603 |
Net change in unrealized appreciation/(depreciation) | ' | $2,747,864 | ($2,127,807) | $1,097,415 |
Statements_of_Changes_in_Membe2
Statements of Changes in Member's Capital - Sydling (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
INCREASE (DECREASE) IN MEMBER'S CAPITAL FROM CAPITAL TRANSACTIONS | ' | ' | ' |
Member's Capital at End of Year/Period | $155,211,763 | $260,470,579 | $84,899,236 |
Sydling AAA Master Fund LLC | ' | ' | ' |
INCREASE (DECREASE) IN MEMBER'S CAPITAL FROM OPERATIONS | ' | ' | ' |
Net investment (loss) | -8,382,394 | -8,349,496 | -464,949 |
Net realized gain/(loss) from derivative instruments | -28,924,715 | 12,120,411 | 479,634 |
Net change in unrealized appreciation/(depreciation) on derivative instruments | 6,088,518 | -8,115,812 | 1,885,146 |
Net Income/(Loss) | -31,218,591 | -4,344,897 | 1,899,831 |
INCREASE (DECREASE) IN MEMBER'S CAPITAL FROM CAPITAL TRANSACTIONS | ' | ' | ' |
Subscriptions | 37,095,627 | 201,883,911 | 83,651,142 |
Redemptions | -111,299,149 | -22,160,656 | -295,455 |
Net Increase (Decrease) in Member's Capital Derived from Capital Transactions | -74,203,522 | 179,723,255 | 83,355,687 |
Net Increase (Decrease) in Member's Capital | -105,422,113 | 175,378,358 | 85,255,518 |
Member's Capital at Beginning of Year/Period | 260,633,876 | 85,255,518 | ' |
Member's Capital at End of Year/Period | $155,211,763 | $260,633,876 | $85,255,518 |
Financial_Highlights_Sydling
Financial Highlights - Sydling (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Ratio/Supplemental Data: | ' | ' | ' | |||
Ratio of net investment income to average member's capital (as a percent) | -6.17% | [1] | -6.89% | [1] | -1.32% | [1] |
Ratio of total expenses to average member's capital (as a percent) | 6.20% | 6.95% | 1.32% | |||
Member's capital at end of year/period | $155,211,763 | $260,470,579 | $84,899,236 | |||
Sydling AAA Master Fund LLC | ' | ' | ' | |||
Ratio/Supplemental Data: | ' | ' | ' | |||
Ratio of net investment income to average member's capital (as a percent) | -3.94% | [1] | -4.02% | [1] | -0.55% | [1] |
Ratio of total expenses to average member's capital (as a percent) | 3.98% | [1] | 4.08% | [1] | 0.55% | [1] |
Total return (as a percent) | -12.19% | [2] | -2.78% | [2] | 2.25% | [2] |
Member's capital at end of year/period | $155,211,763 | $260,633,876 | $85,255,518 | |||
[1] | The average member's capital used in the above ratios are calculated by using member's capital after to year end withdrawals. | |||||
[2] | Total return assumes a purchase of an interest in the Master Fund at the beginning of the year and a sale of the Master Fund interest on the last day of the year/period noted. For the period from December 1, 2011 (commencement of trading operations) to December 31, 2011 where the period is less than the fiscal year, total return has not been annualized. |
Organization_Sydling
Organization - Sydling | 12 Months Ended |
Dec. 31, 2013 | |
Organization | ' |
Organization | ' |
1. Organization | |
AAA Energy Opportunities Fund LLC (the “Fund”) is a Delaware limited liability company formed on August 10, 2011. Trading operations of the Fund commenced on December 1, 2011. The Fund’s investment objective is to seek to achieve capital appreciation through speculative trading, directly or indirectly, in commodity interests generally including, commodity futures and commodity option contracts on United States exchanges and certain foreign exchanges and swaps. The Fund intends to trade only energy and energy related products, as well as the Goldman Sachs Commodity Index (an index future comprised of energy and other products) traded on the Chicago Mercantile Exchange, but is authorized to trade commodity futures, swaps and options contracts of any kind. The Fund invests substantially all of its assets in Sydling AAA Master Fund LLC (the “Master Fund”), also a Delaware limited liability company, that has the same investment objective as the Fund. The financial statements of the Master Fund, including the condensed schedule of investments, are included elsewhere in this report and should be read with the Fund’s financial statements. The percentage of the Master Fund’s capital owned by the Fund at December 31, 2013 and 2012 was 100%. The performance of the Fund is directly affected by the performance of the Master Fund. | |
The Fund is member managed for purposes of Delaware law. Pursuant to the limited liability company agreement of the Fund, as may be amended from time to time (the “LLC Agreement”), the members of the Fund have appointed Sydling Futures Management LLC (“Sydling”) to act as the Fund’s trading manager and commodity pool operator. Sydling is registered as a commodity pool operator and a commodity trading advisor and is a member of the National Futures Association (“NFA”) effective August 10, 2011. Sydling, a wholly owned subsidiary of UBS Alternatives LLC, was formed on August 4, 2011. UBS Alternatives LLC is a wholly owned subsidiary of UBS Americas Inc. which ultimately is a subsidiary of UBS AG. | |
AAA Capital Management Advisors, Ltd. (the “Advisor” or “AAA”) serves as the trading advisor to the Fund and the Master Fund. In addition, AAA is also a special member of the Fund. | |
BNY Mellon Investment Servicing (US) Inc. serves as administrator (the “Administrator”) of the Fund. | |
The Fund privately and continually offers units of limited liability company interest in the Fund to qualified investors and are generally accepted monthly. There is no maximum number of units that may be sold in the Fund. Sydling may reject any subscription for any reason for a reasonable period of time after receipt. Generally, units may be redeemed on the last day of any month with ten days written notice provided that such units are held for three full months. In general, the Fund will make payment for redeemed units within ten business days following the redemption date. | |
Sydling AAA Master Fund LLC | ' |
Organization | ' |
Organization | ' |
1. Organization | |
Sydling AAA Master Fund LLC (the “Master Fund”) is a Delaware limited liability company formed on August 10, 2011. Trading operations of the Master Fund commenced on December 1, 2011. The Master Fund’s investment objective is to seek to achieve capital appreciation through speculative trading, directly or indirectly, in commodity interests generally including, commodity futures and commodity option contracts on United States exchanges and certain foreign exchanges and swaps. The Master Fund intends to trade only energy and energy related products, as well as the Goldman Sachs Commodity Index (an index future comprised of energy and other products) traded on the Chicago Mercantile Exchange, but is authorized to trade commodity futures, swaps and options contracts of any kind. The Master Fund also will engage in swap transactions involving crude oil and other energy related products. | |
The member of the Master Fund appointed Sydling Futures Management LLC (“Sydling”) as the member designee (the “Member Designee”) to manage the business and affairs of the Master Fund and to act as the Master Fund’s commodity pool operator. Sydling is registered as a commodity pool operator and a commodity trading advisor and is a member of the National Futures Association (“NFA”) effective August 10, 2011. Sydling, a wholly owned subsidiary of UBS Alternatives LLC, was formed on August 4, 2011. UBS Alternatives LLC is a wholly owned subsidiary of UBS Americas Inc. which ultimately is a subsidiary of UBS AG. | |
The Master Fund’s investors consist exclusively of AAA Energy Opportunities Fund LLC (the “Feeder”). The Feeder invests substantially all of its assets in the Master Fund. | |
AAA Capital Management Advisors, Ltd. (the “Advisor” or “AAA”) serves as the trading advisor to the Master Fund and the Feeder. | |
BNY Mellon Investment Servicing (US) Inc. serves as administrator (the “Administrator”) of the Master Fund. | |
UBS Securities LLC (“UBS”) is the commodity broker (the “Commodity Broker”) for the Master Fund. UBS is also an affiliate of Sydling. |
Recent_Accounting_Pronouncemen1
Recent Accounting Pronouncements - Sydling | 12 Months Ended |
Dec. 31, 2013 | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | ' |
2. Recent Accounting Pronouncements | |
In December 2011, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2011-11, Disclosures about Offsetting Assets and Liabilities, which creates a new disclosure requirement about the nature of an entity’s rights of setoff and the related arrangements associated with its financial instruments and derivative instruments. Entities are required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial condition and instruments and transactions subject to an agreement similar to a master netting arrangement. The objective of this disclosure is to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of International Financial Reporting Standards (“IFRS”). The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Fund should also provide the disclosures retrospectively for all comparative periods presented. The impact of the pronouncement was not material as the Master Fund has presented both net unrealized gains and losses on open future contracts on the statement of operations and disclosed gross unrealized gains and losses in Note 5, “Trading Activities”. The Master Fund’s financial statements are attached to the Fund’s financial statements. | |
In June 2013, the FASB issued ASU No. 2013-08, Financial Services — Investment Companies (Topic 946), which creates a two-tiered approach to assess whether an entity is an investment company. The guidance will also require an investment company to measure non-controlling ownership interests in other investment companies at fair value and will require additional disclosures relating to investment company status, any changes thereto and information about financial support provided or contractually required to be provided to any of the investment company’s investees. The guidance is effective for financial statements with fiscal years beginning on or after December 15, 2013 and interim periods within those fiscal years. The Fund and the Master Fund are investment companies as described in ASU No. 2013-08. The Fund carries its investment in the Master Fund at fair value and therefore, there is no impact to the Fund’s financial statements as a result of adopting the pronouncement. | |
Sydling AAA Master Fund LLC | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | ' |
2. Recent Accounting Pronouncements | |
In December 2011, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2011-11, Disclosures about Offsetting Assets and Liabilities, which creates a new disclosure requirement about the nature of an entity’s rights of setoff and the related arrangements associated with its financial instruments and derivative instruments. Entities are required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial condition and instruments and transactions subject to an agreement similar to a master netting arrangement. The objective of this disclosure is to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of International Financial Reporting Standards (“IFRS”). The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Master Fund should also provide the disclosures retrospectively for all comparative periods presented. The impact of the pronouncement was not material as the Master Fund has presented both net unrealized gains and losses on open future contracts on the statement of operations and disclosed gross unrealized gains and losses in Note 5, “Trading Activities”. | |
In June 2013, the FASB issued ASU No. 2013-08, Financial Services — Investment Companies (Topic 946), which creates a two-tiered approach to assess whether an entity is an investment company. The guidance will also require an investment company to measure non-controlling ownership interests in other investment companies at fair value and will require additional disclosures relating to investment company status, any changes thereto and information about financial support provided or contractually required to be provided to any of the investment company’s investees. The guidance is effective for financial statements with fiscal years beginning on or after December 15, 2013 and interim periods within those fiscal years. The Master Fund is an investment company as described in ASU No. 2013-08. The Master Fund carries its investments at fair value and therefore, there is no impact to the Master Fund’s financial statements as a result of adopting the pronouncement. |
Significant_Accounting_Policie3
Significant Accounting Policies - Sydling | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Significant Accounting Policies | ' | |||||||||||||
Significant Accounting Policies | ' | |||||||||||||
3. Significant Accounting Policies | ||||||||||||||
a. Use of Estimates | ||||||||||||||
The preparation of financial statements and accompanying notes in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in members’ capital from operations during the reporting period. Actual results could differ from those estimates. | ||||||||||||||
b. Statements of Cash Flows | ||||||||||||||
The Fund is not required to provide Statements of Cash Flows in accordance with Accounting Standard Codification (“ASC”) 230, Statement of Cash Flows. | ||||||||||||||
c. Fair Value Measurements | ||||||||||||||
The Fund values its investments at fair value, in accordance with U.S. GAAP, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | ||||||||||||||
Various inputs are used in determining the fair value of the Fund’s investments which are summarized in the three broad levels listed below. | ||||||||||||||
Level 1 — quoted prices (unadjusted) in active markets for identical securities. | ||||||||||||||
Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment spreads, credit risk, etc.) | ||||||||||||||
Level 3 — significant unobservable inputs (including the Master Fund’s own assumptions and indicative non-binding broker quotes.) | ||||||||||||||
Fair value measurement disclosure for each class of assets and liabilities requires greater disaggregation than the Fund’s line items in the Statements of Financial Condition. The Fund determines the appropriate classes for those disclosures on the basis of the nature and risks of the assets and liabilities and their classification in the fair value hierarchy (i.e., Level 1, Level 2, and Level 3). | ||||||||||||||
The Fund values investments in the Master Fund where there are no other rights or obligations inherent within the ownership interest held by the Fund based on the end of the day net asset value of the Master Fund (Level 2). The value of the Fund’s investment in the Master Fund reflects its proportional interest in the Master Fund. As of and for the years ended December 31, 2013 and 2012, and the period from December 1, 2011 (commencement of trading operations) to December 31, 2011, the Fund did not hold any derivative instruments that are based on unadjusted quoted prices in active markets for identical assets (Level 2) or priced at fair value using unobservable inputs through the application of management’s assumptions and internal valuation pricing models (Level 3). | ||||||||||||||
For disclosures regarding the Master Fund’s investments and fair value measurements, see Note 3, “Significant Accounting Policies” on the attached Master Fund’s financial statements. | ||||||||||||||
d. Investment in Master Fund | ||||||||||||||
The Fund records its investment in the Master Fund at fair value and is represented by the Fund’s proportionate interest in the members’ capital of the Master Fund at December 31, 2013 and 2012. Valuation of securities held by the Master Fund is discussed in the notes to the Master Fund’s financial statements. The Fund records its pro rata share of the Master Fund’s income, expenses and realized and unrealized gains and losses. The performance of the Fund is directly attributable to the performance of the Master Fund. The Fund records its subscription and redemption of the capital account related to its investment in the Master Fund on the transaction date. The Master Fund will adjust the capital account of the Fund. Brokerage, clearing and transaction fees are incurred by the Master Fund and are reflected in the pro rata allocation received by the Fund from the Master Fund. | ||||||||||||||
e. Subscriptions Received in Advance | ||||||||||||||
Subscriptions received in advance represent amount paid by the non-managing members for a percentage ownership into the Fund which have not yet been added as members’ capital as of December 31, 2013 and 2012. The amount paid is held as cash in the Fund’s escrow account and represents the cash on the Statements of Financial Condition. | ||||||||||||||
f. Redemptions Payable | ||||||||||||||
Pursuant to ASC Topic 480, Distinguishing Liabilities from Equity, capital withdrawals effective December 31, 2013 and 2012 have been reflected as redemptions payable in the Statements of Financial Condition. | ||||||||||||||
g. Income Taxes | ||||||||||||||
The Fund is classified as a partnership for U.S. federal income tax purposes, and the Fund will not pay U.S. federal income tax. As a result, no income tax liability or expense has been recorded in the financial statements. | ||||||||||||||
Management has analyzed the Master Fund’s tax positions for the open tax period and has concluded that no provision is required in the Master Fund’s financial statements. The Master Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. For the years ended December 31, 2013 and 2012, and the period from December 1, 2011 (commencement of trading operations) to December 31, 2011, the Master Fund did not incur any interest or penalties. | ||||||||||||||
Sydling AAA Master Fund LLC | ' | |||||||||||||
Significant Accounting Policies | ' | |||||||||||||
Significant Accounting Policies | ' | |||||||||||||
3. Significant Accounting Policies | ||||||||||||||
a. Use of Estimates | ||||||||||||||
The preparation of financial statements and accompanying notes in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in member’s capital from operations during the reporting period. Actual results could differ from those estimates. | ||||||||||||||
b. Statements of Cash Flows | ||||||||||||||
The Master Fund is not required to provide Statements of Cash Flows in accordance with Accounting Standard Codification (“ASC”) 230, Statement of Cash Flows. | ||||||||||||||
c. Fair Value Measurements | ||||||||||||||
The Master Fund values its investments at fair value, in accordance with U.S. GAAP, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | ||||||||||||||
Various inputs are used in determining the fair value of the Master Fund’s investments which are summarized in the three broad levels listed below. | ||||||||||||||
Level 1 — quoted prices (unadjusted) in active markets for identical assets. | ||||||||||||||
Level 2 — other significant observable inputs (including quoted prices for similar assets.) | ||||||||||||||
Level 3 — significant unobservable inputs (including the Master Fund’s own assumptions and indicative non-binding broker quotes.) | ||||||||||||||
The Master Fund recognizes transfers into and out of the levels indicated above at the end of the reporting period. During the years ended December 31, 2013 and 2012, and the period from December 1, 2011 (commencement of trading operations) to December 31, 2011, there were no transfers amongst Levels 1, 2 and 3 of the valuation hierarchy. | ||||||||||||||
U.S. GAAP provides guidance in determining whether there has been a significant decrease in the volume and level of activity for an asset or liability when compared with normal market activity for such asset or liability (or similar assets or liabilities). U.S. GAAP also provides guidance on identifying circumstances that indicate a transaction with regards to such an asset or liability is not orderly. In its consideration, the Master Fund must consider inputs and valuation techniques used for each class of assets and liabilities. Judgment is used to determine the appropriate classes of assets and liabilities for which disclosures about fair value measurements are provided. | ||||||||||||||
Fair value measurement disclosure for each class of assets and liabilities requires greater disaggregation than the Master Fund’s line items in the Statements of Financial Condition. The Master Fund determines the appropriate classes for those disclosures on the basis of the nature and risks of the assets and liabilities and their classification in the fair value hierarchy (i.e., Level 1, Level 2, and Level 3). | ||||||||||||||
For assets and liabilities measured at fair value on a recurring basis during the year, the Master Fund provides quantitative disclosures about the fair value measurements separately for each class of assets and liabilities, as well as a reconciliation of beginning and ending balances of Level 3 assets and liabilities broken down by class. | ||||||||||||||
The Master Fund considers prices for exchange-traded commodity futures, forwards and options contracts to be based on unadjusted quoted prices in active markets for identical assets (Level 1). The values of non exchange-traded forwards, swaps and certain options contracts for which market quotations are not readily available are priced by broker dealers who derive fair values for those assets from observable inputs (Level 2). As of and for the years ended December 31, 2013 and 2012, and as of and for the period from December 1, 2011 (commencement of trading operations) to December 31, 2011, the Master Fund did not hold any derivative instruments for which market quotations are not readily available and which are priced by broker dealers who derive fair values for these assets from observable inputs (Level 2) or that are priced at fair value using unobservable inputs through the application of management’s assumptions and internal valuation pricing models (Level 3). The gross presentation of the fair value of the Master Fund’s derivatives by instrument type is shown in Note 6, “Trading Activities”. | ||||||||||||||
The following is a summary of the Master Fund’s investments at fair value. The inputs or methodology used for valuing derivative instruments are not necessarily an indication of the risk associated with investing in those derivative instruments. | ||||||||||||||
ASSET TABLE | ||||||||||||||
Description | Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||
at December 31, | ||||||||||||||
2013 | ||||||||||||||
Future Options Purchased | $ | 8,382,120 | $ | 8,382,120 | $ | — | $ | — | ||||||
Futures Contracts | $ | 1,717,472 | $ | 1,717,472 | $ | — | $ | — | ||||||
Total Assets | $ | 10,099,592 | $ | 10,099,592 | $ | — | $ | — | ||||||
LIABILITIES TABLE | ||||||||||||||
Description | Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||
at December 31, | ||||||||||||||
2013 | ||||||||||||||
Future Options Written | $ | (5,878,520 | ) | $ | (5,878,520 | ) | $ | — | $ | — | ||||
Total Liabilities | $ | (5,878,520 | ) | $ | (5,878,520 | ) | $ | — | $ | — | ||||
ASSET TABLE | ||||||||||||||
Description | Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||
at December 31, | ||||||||||||||
2012 | ||||||||||||||
Future Options Purchased | $ | 48,831,224 | $ | 48,831,224 | $ | — | $ | — | ||||||
Total Assets | $ | 48,831,224 | $ | 48,831,224 | $ | — | $ | — | ||||||
LIABILITIES TABLE | ||||||||||||||
Description | Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||
at December 31, | ||||||||||||||
2012 | ||||||||||||||
Future Options Written | $ | (16,637,538 | ) | $ | (16,637,538 | ) | $ | — | $ | — | ||||
Futures Contracts | $ | (1,030,392 | ) | $ | (1,030,392 | ) | $ | — | $ | — | ||||
Total Liabilities | $ | (17,667,930 | ) | $ | (17,667,930 | ) | $ | — | $ | — | ||||
The Master Fund trades futures contracts, exchange-cleared swap contracts and options on futures. Exchange-cleared swap contracts are swaps that are traded as futures. A futures contract is a firm commitment to buy or sell a specified quantity of investments, currency or a standardized amount of a derivable 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 Master Fund 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 Master Fund. When the contract is closed, the Master Fund records 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, directly with the exchange on which the contracts are traded. Net realized gains (losses) and changes in net unrealized gains (losses) on futures contracts are included in the Statements of Operations. | ||||||||||||||
The Master Fund 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 Master Fund writes an option, the premium received is recorded as a liability in the Statements of Financial Condition and marked to market daily. When the Master Fund purchases an option, the premium paid is recorded as an asset in the Statements of Financial Condition and marked to market daily. Realized gains (losses) and changes in unrealized gains (losses) on options contracts are included in the Statements of Operations. | ||||||||||||||
The fair value of the Master Fund’s assets and liabilities which qualify as financial instruments approximates the carrying amounts presented in the Statements of Financial Condition. | ||||||||||||||
d. Redemptions Payable | ||||||||||||||
Pursuant to ASC Topic 480, Distinguishing Liabilities from Equity, capital withdrawals effective December 31, 2013 and 2012 have been reflected as redemptions payable in the Statements of Financial Condition. | ||||||||||||||
e. Cash | ||||||||||||||
Cash represents cash held on deposit and in segregated accounts with UBS. The Master Fund considers all cash and short term deposits with original maturity of three months or less when purchased to be cash or cash equivalents. There are no cash equivalents held as at December 31, 2013 and 2012. Cash includes cash margin of $2,075,137 and $8,149,158 held by UBS against open derivative positions at December 31, 2013 and 2012, respectively. | ||||||||||||||
f. Income and Expenses Recognition | ||||||||||||||
All of the income and expenses and realized and unrealized gains and losses on trading of commodity interests are determined on each valuation day and allocated to the Feeder at the time of such determination. | ||||||||||||||
g. Master Fund Expenses | ||||||||||||||
The Master Fund bears all expenses incurred in its business, including, but not limited to, the following: all costs and expenses related to portfolio transactions and positions for the Master Fund’s account; legal fees; accounting and auditing fees; custodial fees; costs of computing the Master Fund’s member’s capital value, including valuation services provided by third parties; all costs with respect to communications to investors; and other types of expenses approved by the member. | ||||||||||||||
h. Member’s Capital Value | ||||||||||||||
Member’s capital of the Master Fund is calculated by the Administrator as of the close of business at the end of any fiscal period in accordance with the valuation principles set forth below or as may be determined from time to time pursuant to policies established by the member. | ||||||||||||||
Profits and losses from trading in the Master Fund, net of transaction fees, will be allocated pro rata to the capital account of the Feeder based on the member’s capital in the capital account compared to the aggregate member’s capital of all other capital accounts in the Master Fund. The Master Fund’s expenses will be charged pro rata to the capital accounts of the Feeder. | ||||||||||||||
i. Income Taxes | ||||||||||||||
The Master Fund is classified as a partnership for U.S. federal income tax purposes and will not pay U.S. federal income tax. As a result, no income tax liability or expense has been recorded in the financial statements. | ||||||||||||||
U.S. GAAP provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements and requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Master’s financial statements to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. | ||||||||||||||
Tax positions with respect to tax at the Master level not deemed to meet the “more-likely-than-not” threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Master Fund’s tax positions for the open tax period and has concluded that no provision is required in the Master Fund’s financial statements. The Master Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. For the years ended December 31, 2013 and 2012, and the period from December 1, 2011 (commencement of trading operations) to December 31, 2011, the Master Fund did not incur any interest or penalties. |
Related_Party_Transactions_and2
Related Party Transactions and Other Agreements Sydling | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions and Other Agreements | ' |
Related Party Transactions and Other Agreements | ' |
4. Related Party Transactions and Other Agreements | |
a. Limited Liability Company Agreement | |
Sydling administers the business affairs of the Fund including selecting one or more advisors to make trading decisions for the Fund. The Fund will pay Sydling a monthly administration fee in return for its services equal to 1/12 of 0.50% (0.50% per year) of month-end adjusted members’ capital of the Fund. Month-end members’ capital, for the purpose of calculating administration fees are members’ capital, as defined in the Limited Liability Company Agreement, prior to the reduction of the current month’s incentive allocation accrual, the monthly advisory fee, Sydling’s administration fee and any redemptions or distributions as of the end of such month. For the years ended December 31, 2013 and 2012 and for the period from December 1, 2011 (commencement of trading operations) to December 31, 2011, the Fund incurred administrative fees of $1,089,658, $1,098,484 and $35,591, respectively, of which $67,609 and $110,010 remained payable and are reflected on the Statements of Financial Condition as of December 31, 2013 and 2012, respectively. | |
Each unit, when purchased by a member, shall be fully paid and non-assessable. No member shall be liable for Fund obligations in excess of the capital contributed by the member, plus such member’s share of undistributed profits, if any. | |
b. Trading Advisory Agreement | |
Sydling, on behalf of the Fund, has entered into an advisory agreement (the “Trading Advisory Agreement”) with the Advisor, a registered commodity trading advisor. The Advisor is not affiliated with Sydling or UBS Securities LLC or its affiliates and is not responsible for the organization or operation of the Fund. The Trading Advisory Agreement provides that the Advisor has sole discretion in determining the investment of the assets of the Fund. During the year ended December 31, 2012, the Fund paid the Advisor a monthly advisory fee equal to 1/12 of 2% (2% per year) of month-end members’ capital of the Fund. During the year ended December 31, 2013, the Fund paid the Advisor a monthly advisory fee equal to 1/12 of 1.5% (1.5% per year) of month-end members’ capital of the Fund. Month-end members’ capital, for the purpose of calculating advisory fees are members’ capital, as defined in the Limited Liability Company Agreement, prior to the reduction of the current month’s incentive allocation accrual, the monthly Advisory fee, Sydling’s administration fee and any redemptions or distributions as of the end of such month. The Trading Advisory Agreement may be terminated upon notice by either party. For the years ended December 31, 2013 and 2012 and for the period from December 1, 2011 (commencement of trading operations) to December 31, 2011, the Fund incurred advisory fees of $3,268,974, $4,393,936 and $142,364, respectively, of which $202,827 and $440,039 remained payable and are reflected on the Statements of Financial Condition as of December 31, 2013 and 2012, respectively. | |
In addition, the Advisor is a special member of the Fund and receives a quarterly incentive allocation to its capital account in the Fund in the form of units of the Fund, the value of which shall be equal to 20% of New Trading Profits, as defined in the Trading Advisory Agreement, earned on behalf of the Fund during each calendar quarter and are issued as special member units. Pursuant to the Trading Advisory Agreement, the first incentive allocation shall be made at March 31, 2012 and, therefore no units were issued to the Advisor as of December 31, 2011 for the incentive allocation recorded during the period. The incentive allocation recorded at December 31, 2011 was reversed during the first quarter of 2012. The amount of $253,281 represents the incentive allocation earned on new trading profits earned during the third quarter of 2012. | |
In allocating substantially all of the assets of the Fund to the Master Fund, Sydling considered the Advisor’s past performance, trading style, volatility of markets traded and fee requirements. Sydling may modify or terminate the allocation of assets to the Advisor at any time. | |
c. Administration Agreement | |
Sydling, on behalf of the Fund, has entered into an administration agreement with the Administrator. The Administrator will assist Sydling in performing certain day-to-day tasks on behalf of the Fund, including but not limited to, calculating daily or periodic portfolio valuations, reconciling cash and portfolio positions, providing portfolio reporting, maintaining books and records and calculating all fund fees. Sydling will pay a portion of the administrative fee it receives from the Fund to the Administrator. | |
Sydling AAA Master Fund LLC | ' |
Related Party Transactions and Other Agreements | ' |
Related Party Transactions and Other Agreements | ' |
4. Related Party Transactions and Other Agreements | |
a. Limited Liability Company Agreement | |
The Member Designee administers the business affairs of the Master Fund including selecting one or more advisors to make trading decisions for the Master Fund. | |
b. Trading Advisory Agreement | |
The Member Designee, on behalf of the Master Fund, has entered into an advisory agreement (the “Trading Advisory Agreement”) with the Advisor, a registered commodity trading advisor. The Advisor is not affiliated with the Member Designee or UBS and is not responsible for the organization or operation of the Master Fund. The Trading Advisory Agreement provides that the Advisor has sole discretion in determining the investment of the assets of the Master Fund. All advisory fees in connection with the Trading Advisory Agreement shall be borne by the Feeder. The Trading Advisory Agreement may be terminated upon notice by either party. | |
c. Customer Agreement | |
The Master Fund has entered into a customer agreement (the “Customer Agreement”) with UBS whereby UBS provides services which include, among other things, the execution of transactions for the Master Fund’s account in accordance with orders placed by the Advisor. | |
With respect to transactions in the Master Fund that are allocable to the Feeder, the Feeder will pay UBS a monthly brokerage fee equal to 3.5% per year of adjusted member’s capital allocated pro rata from the Master Fund. In addition, the Feeder will pay or reimburse UBS its allocable share of all actual transaction fees (including floor brokerage, exchange, clearing, give-up, user and NFA fees) estimated at approximately 0.50% of member’s capital per year. | |
For the years ended December 31, 2013 and 2012, and the period from December 1, 2011 (commencement of trading operations) to December 31, 2011, the Master Fund incurred brokerage commissions and trading fees of $8,371,119, $8,390,611 and $281,094, respectively, of which the brokerage commissions of $474,646 and $772,567 remained payable and are reflected on the Statements of Financial Condition as of December 31, 2013 and 2012, respectively. |
Organization_Costs_Sydling
Organization Costs - Sydling (Sydling AAA Master Fund LLC) | 12 Months Ended |
Dec. 31, 2013 | |
Sydling AAA Master Fund LLC | ' |
Organization Costs | ' |
Organization Costs | ' |
5. Organization Costs | |
In 2011, organization costs of $118,797 relating to the formation of the Master Fund were initially paid by UBS Financial Services Inc., an affiliate of Sydling and a selling agent for the Feeder. |
Trading_Activities_Sydling
Trading Activities - Sydling (Sydling AAA Master Fund LLC) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Sydling AAA Master Fund LLC | ' | ||||||||||
Trading Activities | ' | ||||||||||
Trading Activities | ' | ||||||||||
6. Trading Activities | |||||||||||
The Master Fund was formed for the purpose of trading contacts in a variety of commodity interests, including derivative financial instruments and derivative commodity instruments. The results of the Master Fund’s trading activities are shown in the Statements of Operations. | |||||||||||
The Customer Agreement between the Master Fund and UBS gives the Master Fund the legal right to net unrealized gains and losses on open futures contracts. Futures contracts are executed on exchanges and are typically liquidated by entering into offsetting contracts. The Master Fund nets, for financial reporting purposes, the unrealized gains and losses on open futures contracts on the Statements of Financial Condition. | |||||||||||
All of the commodity interests owned by the Master Fund are held for trading purposes. The average number of futures contracts traded for the years ended December 31, 2013 and 2012, based on a monthly calculation, was 7,077 and 8,160, respectively. For the period from December 1, 2011 (commencement of trading operations) to December 31, 2011, the number of futures contracts traded was 3,423. The average number of options contracts traded for the years ended December 31, 2013 and 2012, based on a monthly calculation, was 4,235 and 5,461, respectively. For the period from December 1, 2011 (commencement of trading operations) to December 31, 2011, the number of options contracts traded was 5,816. | |||||||||||
The Master Fund is required to present enhanced information in order to provide users of financial statements with an improved degree of transparency and understanding of how and why an entity uses derivative instruments, how derivative instruments are accounted for, and how derivative instruments affect an entity’s financial position, results of operations and its cash flows. In order to provide such information to financial statement users, the Master Fund provides qualitative disclosures about an entity’s associated risk exposures, quantitative disclosures about fair value amounts of derivative instruments and the gains and losses from derivative instruments. | |||||||||||
The following table indicated the gross fair values of derivative instruments of futures and options contracts as separate assets and liabilities as of December 31, 2013 and 2012. | |||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||
ASSETS | |||||||||||
Futures Contracts | |||||||||||
Energy | $ | 2,678,080 | $ | 15,366,416 | |||||||
Total unrealized appreciation on open futures contracts | $ | 2,678,080 | $ | 15,366,416 | |||||||
LIABILITIES | |||||||||||
Futures Contracts | |||||||||||
Energy | $ | (960,608 | ) | $ | (16,396,808 | ) | |||||
Total unrealized depreciation on open futures contracts | $ | (960,608 | ) | $ | (16,396,808 | ) | |||||
Net unrealized appreciation (depreciation) on open futures contracts * | $ | 1,717,472 | $ | (1,030,392 | ) | ||||||
ASSETS | |||||||||||
Options Purchased | |||||||||||
Energy | $ | 8,382,120 | $ | 48,831,224 | |||||||
Options Purchased ** | $ | 8,382,120 | $ | 48,831,224 | |||||||
LIABILITIES | |||||||||||
Options Written | |||||||||||
Energy | $ | (5,878,520 | ) | $ | (16,637,538 | ) | |||||
Options Written *** | $ | (5,878,520 | ) | $ | (16,637,538 | ) | |||||
* These amounts are in “Net unrealized appreciation/(depreciation) on open futures contracts” on the Statements of Financial Condition. | |||||||||||
** These amounts are in “Future options purchased, at fair value” on the Statements of Financial Condition. | |||||||||||
*** These amounts are in “Future options written, at fair value” on the Statements of Financial Condition. | |||||||||||
The following table indicates the trading gains and losses, by market sector, on derivative instruments for the years ended December 31, 2013 and 2012, and the period from December 1, 2011 (commencement of trading operations) to December 31, 2011. | |||||||||||
Year ended | Year ended | Period ended | |||||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||
Gain (loss) | Gain (loss) | Gain (loss) | |||||||||
Sector | from trading | from trading | from trading | ||||||||
Energy | $ | (22,836,197 | ) | $ | 3,908,377 | $ | 2,416,431 | ||||
Grains | — | 97,957 | (46,873 | ) | |||||||
Index | — | (31,522 | ) | (4,778 | ) | ||||||
Industrial | — | 29,787 | — | ||||||||
$ | (22,836,197 | ) | $ | 4,004,599 | $ | 2,364,780 | **** | ||||
**** These amounts are in “Net Realized and Unrealized Gain/(Loss) from Derivative Instruments” on the Statements of Operations. | |||||||||||
The volume of activity of futures and future options that are presented in the Condensed Schedule of Investments is consistent with the average daily activity during the years ended December 31, 2013 and 2012, and the period from December 1, 2011 (commencement of trading operations) to December 31, 2011. |
Financial_Instruments_Risks_Sy
Financial Instruments Risks - Sydling (Sydling AAA Master Fund LLC) | 12 Months Ended |
Dec. 31, 2013 | |
Sydling AAA Master Fund LLC | ' |
Financial Instruments Risks | ' |
Financial Instruments Risks | ' |
7. Financial Instruments Risks | |
In the normal course of business, the Master Fund, is party to financial instruments with off-balance sheet risk, including derivative financial instruments and derivative commodity instruments. These financial instruments may include 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 or over-the-counter (“OTC”). Exchange-traded instruments are standardized and include futures and certain options contracts. OTC contracts are negotiated between contracting parties and include forwards and certain options. 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 related 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 risk to the members that have purchased interests in the Master Fund is limited to the amount of their capital contributions to the Master Fund and their share of the Master Fund’s assets and undistributed profits. This limited liability is a consequence of the organization of the Master Fund as a limited liability company under applicable law. | |
Market risk is the potential for changes in the value of the financial instruments traded by the Master Fund 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 Master Fund is exposed to a market risk equal to the value of futures contracts purchased 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 Master Fund’s risk of loss in the event of a counterparty default is typically limited to the amounts recognized in the Statements of Financial Condition and not represented by the contract or notional amounts of the instruments. The Master Fund has credit risk and concentration risk because the sole counterparty or broker with respect to the Master Fund’s assets is UBS or a UBS affiliate. Credit risk with respect to exchange-traded instruments is reduced to the extent that through UBS, the Master Fund’s counterparty is an exchange or clearing organization. Futures contracts are conducted through regulated exchanges which have margin requirements, and are settled in cash on a daily basis, thereby minimizing credit risk. | |
The Advisor will concentrate the Master Fund’s trading in energy related markets. Concentration in a limited number of commodity interests may subject the Master Fund’s account to greater volatility than if a more diversified portfolio of contracts were traded on behalf of the Master Fund. | |
As both a buyer and seller of options, the Master Fund pays or receives a premium at the outset and then bears the risk of unfavorable changes in the price of the contract underlying the option. Written options expose the Master Fund 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 Master Fund does not consider these contracts to be guarantees. |
Subsequent_Events_Sydling
Subsequent Events - Sydling | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events | ' |
Subsequent Events | ' |
7. Subsequent Events | |
Management has evaluated the impact of all subsequent events on the Fund through the date these financial statements were available to be issued. Subsequent to year end additional subscriptions were received from the non-managing members totaling $642,000. Subsequent to year end redemptions were paid to the non-managing members totaling $10,444,709. Management has determined that there were no additional subsequent events requiring recognition or disclosure in the financial statements. | |
Sydling AAA Master Fund LLC | ' |
Subsequent Events | ' |
Subsequent Events | ' |
8. Subsequent Events | |
Management has evaluated the impact of all subsequent events on the Master Fund through the date these financial statements were available to be issued. Subsequent to year end additional subscriptions were received from the Feeder totaling $642,000. Subsequent to year end redemptions were paid to the Feeder totaling $11,009,565. Management has determined that there were no additional subsequent events requiring recognition or disclosure in the financial statements. |
Significant_Accounting_Policie4
Significant Accounting Policies (Policies) - Sydling | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Significant Accounting Policies | ' | |||||||||||||
Use of Estimates | ' | |||||||||||||
a. Use of Estimates | ||||||||||||||
The preparation of financial statements and accompanying notes in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in members’ capital from operations during the reporting period. Actual results could differ from those estimates. | ||||||||||||||
Statements of Cash Flows | ' | |||||||||||||
b. Statements of Cash Flows | ||||||||||||||
The Fund is not required to provide Statements of Cash Flows in accordance with Accounting Standard Codification (“ASC”) 230, Statement of Cash Flows. | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
c. Fair Value Measurements | ||||||||||||||
The Fund values its investments at fair value, in accordance with U.S. GAAP, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | ||||||||||||||
Various inputs are used in determining the fair value of the Fund’s investments which are summarized in the three broad levels listed below. | ||||||||||||||
Level 1 — quoted prices (unadjusted) in active markets for identical securities. | ||||||||||||||
Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment spreads, credit risk, etc.) | ||||||||||||||
Level 3 — significant unobservable inputs (including the Master Fund’s own assumptions and indicative non-binding broker quotes.) | ||||||||||||||
Fair value measurement disclosure for each class of assets and liabilities requires greater disaggregation than the Fund’s line items in the Statements of Financial Condition. The Fund determines the appropriate classes for those disclosures on the basis of the nature and risks of the assets and liabilities and their classification in the fair value hierarchy (i.e., Level 1, Level 2, and Level 3). | ||||||||||||||
The Fund values investments in the Master Fund where there are no other rights or obligations inherent within the ownership interest held by the Fund based on the end of the day net asset value of the Master Fund (Level 2). The value of the Fund’s investment in the Master Fund reflects its proportional interest in the Master Fund. As of and for the years ended December 31, 2013 and 2012, and the period from December 1, 2011 (commencement of trading operations) to December 31, 2011, the Fund did not hold any derivative instruments that are based on unadjusted quoted prices in active markets for identical assets (Level 2) or priced at fair value using unobservable inputs through the application of management’s assumptions and internal valuation pricing models (Level 3). | ||||||||||||||
For disclosures regarding the Master Fund’s investments and fair value measurements, see Note 3, “Significant Accounting Policies” on the attached Master Fund’s financial statements. | ||||||||||||||
Redemptions Payable | ' | |||||||||||||
f. Redemptions Payable | ||||||||||||||
Pursuant to ASC Topic 480, Distinguishing Liabilities from Equity, capital withdrawals effective December 31, 2013 and 2012 have been reflected as redemptions payable in the Statements of Financial Condition. | ||||||||||||||
Income Taxes | ' | |||||||||||||
g. Income Taxes | ||||||||||||||
The Fund is classified as a partnership for U.S. federal income tax purposes, and the Fund will not pay U.S. federal income tax. As a result, no income tax liability or expense has been recorded in the financial statements. | ||||||||||||||
Management has analyzed the Master Fund’s tax positions for the open tax period and has concluded that no provision is required in the Master Fund’s financial statements. The Master Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. For the years ended December 31, 2013 and 2012, and the period from December 1, 2011 (commencement of trading operations) to December 31, 2011, the Master Fund did not incur any interest or penalties. | ||||||||||||||
Sydling AAA Master Fund LLC | ' | |||||||||||||
Significant Accounting Policies | ' | |||||||||||||
Use of Estimates | ' | |||||||||||||
a. Use of Estimates | ||||||||||||||
The preparation of financial statements and accompanying notes in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in member’s capital from operations during the reporting period. Actual results could differ from those estimates. | ||||||||||||||
Statements of Cash Flows | ' | |||||||||||||
b. Statements of Cash Flows | ||||||||||||||
The Master Fund is not required to provide Statements of Cash Flows in accordance with Accounting Standard Codification (“ASC”) 230, Statement of Cash Flows. | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
c. Fair Value Measurements | ||||||||||||||
The Master Fund values its investments at fair value, in accordance with U.S. GAAP, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | ||||||||||||||
Various inputs are used in determining the fair value of the Master Fund’s investments which are summarized in the three broad levels listed below. | ||||||||||||||
Level 1 — quoted prices (unadjusted) in active markets for identical assets. | ||||||||||||||
Level 2 — other significant observable inputs (including quoted prices for similar assets.) | ||||||||||||||
Level 3 — significant unobservable inputs (including the Master Fund’s own assumptions and indicative non-binding broker quotes.) | ||||||||||||||
The Master Fund recognizes transfers into and out of the levels indicated above at the end of the reporting period. During the years ended December 31, 2013 and 2012, and the period from December 1, 2011 (commencement of trading operations) to December 31, 2011, there were no transfers amongst Levels 1, 2 and 3 of the valuation hierarchy. | ||||||||||||||
U.S. GAAP provides guidance in determining whether there has been a significant decrease in the volume and level of activity for an asset or liability when compared with normal market activity for such asset or liability (or similar assets or liabilities). U.S. GAAP also provides guidance on identifying circumstances that indicate a transaction with regards to such an asset or liability is not orderly. In its consideration, the Master Fund must consider inputs and valuation techniques used for each class of assets and liabilities. Judgment is used to determine the appropriate classes of assets and liabilities for which disclosures about fair value measurements are provided. | ||||||||||||||
Fair value measurement disclosure for each class of assets and liabilities requires greater disaggregation than the Master Fund’s line items in the Statements of Financial Condition. The Master Fund determines the appropriate classes for those disclosures on the basis of the nature and risks of the assets and liabilities and their classification in the fair value hierarchy (i.e., Level 1, Level 2, and Level 3). | ||||||||||||||
For assets and liabilities measured at fair value on a recurring basis during the year, the Master Fund provides quantitative disclosures about the fair value measurements separately for each class of assets and liabilities, as well as a reconciliation of beginning and ending balances of Level 3 assets and liabilities broken down by class. | ||||||||||||||
The Master Fund considers prices for exchange-traded commodity futures, forwards and options contracts to be based on unadjusted quoted prices in active markets for identical assets (Level 1). The values of non exchange-traded forwards, swaps and certain options contracts for which market quotations are not readily available are priced by broker dealers who derive fair values for those assets from observable inputs (Level 2). As of and for the years ended December 31, 2013 and 2012, and as of and for the period from December 1, 2011 (commencement of trading operations) to December 31, 2011, the Master Fund did not hold any derivative instruments for which market quotations are not readily available and which are priced by broker dealers who derive fair values for these assets from observable inputs (Level 2) or that are priced at fair value using unobservable inputs through the application of management’s assumptions and internal valuation pricing models (Level 3). The gross presentation of the fair value of the Master Fund’s derivatives by instrument type is shown in Note 6, “Trading Activities”. | ||||||||||||||
The following is a summary of the Master Fund’s investments at fair value. The inputs or methodology used for valuing derivative instruments are not necessarily an indication of the risk associated with investing in those derivative instruments. | ||||||||||||||
ASSET TABLE | ||||||||||||||
Description | Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||
at December 31, | ||||||||||||||
2013 | ||||||||||||||
Future Options Purchased | $ | 8,382,120 | $ | 8,382,120 | $ | — | $ | — | ||||||
Futures Contracts | $ | 1,717,472 | $ | 1,717,472 | $ | — | $ | — | ||||||
Total Assets | $ | 10,099,592 | $ | 10,099,592 | $ | — | $ | — | ||||||
LIABILITIES TABLE | ||||||||||||||
Description | Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||
at December 31, | ||||||||||||||
2013 | ||||||||||||||
Future Options Written | $ | (5,878,520 | ) | $ | (5,878,520 | ) | $ | — | $ | — | ||||
Total Liabilities | $ | (5,878,520 | ) | $ | (5,878,520 | ) | $ | — | $ | — | ||||
ASSET TABLE | ||||||||||||||
Description | Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||
at December 31, | ||||||||||||||
2012 | ||||||||||||||
Future Options Purchased | $ | 48,831,224 | $ | 48,831,224 | $ | — | $ | — | ||||||
Total Assets | $ | 48,831,224 | $ | 48,831,224 | $ | — | $ | — | ||||||
LIABILITIES TABLE | ||||||||||||||
Description | Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||
at December 31, | ||||||||||||||
2012 | ||||||||||||||
Future Options Written | $ | (16,637,538 | ) | $ | (16,637,538 | ) | $ | — | $ | — | ||||
Futures Contracts | $ | (1,030,392 | ) | $ | (1,030,392 | ) | $ | — | $ | — | ||||
Total Liabilities | $ | (17,667,930 | ) | $ | (17,667,930 | ) | $ | — | $ | — | ||||
The Master Fund trades futures contracts, exchange-cleared swap contracts and options on futures. Exchange-cleared swap contracts are swaps that are traded as futures. A futures contract is a firm commitment to buy or sell a specified quantity of investments, currency or a standardized amount of a derivable 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 Master Fund 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 Master Fund. When the contract is closed, the Master Fund records 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, directly with the exchange on which the contracts are traded. Net realized gains (losses) and changes in net unrealized gains (losses) on futures contracts are included in the Statements of Operations. | ||||||||||||||
The Master Fund 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 Master Fund writes an option, the premium received is recorded as a liability in the Statements of Financial Condition and marked to market daily. When the Master Fund purchases an option, the premium paid is recorded as an asset in the Statements of Financial Condition and marked to market daily. Realized gains (losses) and changes in unrealized gains (losses) on options contracts are included in the Statements of Operations. | ||||||||||||||
The fair value of the Master Fund’s assets and liabilities which qualify as financial instruments approximates the carrying amounts presented in the Statements of Financial Condition. | ||||||||||||||
Redemptions Payable | ' | |||||||||||||
d. Redemptions Payable | ||||||||||||||
Pursuant to ASC Topic 480, Distinguishing Liabilities from Equity, capital withdrawals effective December 31, 2013 and 2012 have been reflected as redemptions payable in the Statements of Financial Condition. | ||||||||||||||
Cash | ' | |||||||||||||
e. Cash | ||||||||||||||
Cash represents cash held on deposit and in segregated accounts with UBS. The Master Fund considers all cash and short term deposits with original maturity of three months or less when purchased to be cash or cash equivalents. There are no cash equivalents held as at December 31, 2013 and 2012. Cash includes cash margin of $2,075,137 and $8,149,158 held by UBS against open derivative positions at December 31, 2013 and 2012, respectively. | ||||||||||||||
Income and Expenses Recognition | ' | |||||||||||||
f. Income and Expenses Recognition | ||||||||||||||
All of the income and expenses and realized and unrealized gains and losses on trading of commodity interests are determined on each valuation day and allocated to the Feeder at the time of such determination. | ||||||||||||||
Master Fund Expenses | ' | |||||||||||||
g. Master Fund Expenses | ||||||||||||||
The Master Fund bears all expenses incurred in its business, including, but not limited to, the following: all costs and expenses related to portfolio transactions and positions for the Master Fund’s account; legal fees; accounting and auditing fees; custodial fees; costs of computing the Master Fund’s member’s capital value, including valuation services provided by third parties; all costs with respect to communications to investors; and other types of expenses approved by the member. | ||||||||||||||
Member's Capital Value | ' | |||||||||||||
h. Member’s Capital Value | ||||||||||||||
Member’s capital of the Master Fund is calculated by the Administrator as of the close of business at the end of any fiscal period in accordance with the valuation principles set forth below or as may be determined from time to time pursuant to policies established by the member. | ||||||||||||||
Profits and losses from trading in the Master Fund, net of transaction fees, will be allocated pro rata to the capital account of the Feeder based on the member’s capital in the capital account compared to the aggregate member’s capital of all other capital accounts in the Master Fund. The Master Fund’s expenses will be charged pro rata to the capital accounts of the Feeder. | ||||||||||||||
Income Taxes | ' | |||||||||||||
i. Income Taxes | ||||||||||||||
The Master Fund is classified as a partnership for U.S. federal income tax purposes and will not pay U.S. federal income tax. As a result, no income tax liability or expense has been recorded in the financial statements. | ||||||||||||||
U.S. GAAP provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements and requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Master’s financial statements to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. | ||||||||||||||
Tax positions with respect to tax at the Master level not deemed to meet the “more-likely-than-not” threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Master Fund’s tax positions for the open tax period and has concluded that no provision is required in the Master Fund’s financial statements. The Master Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. For the years ended December 31, 2013 and 2012, and the period from December 1, 2011 (commencement of trading operations) to December 31, 2011, the Master Fund did not incur any interest or penalties. |
Significant_Accounting_Policie5
Significant Accounting Policies (Tables) - Sydling (Sydling AAA Master Fund LLC) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Sydling AAA Master Fund LLC | ' | |||||||||||||
Fund's investments at fair value | ' | |||||||||||||
Summary of the fund's investments at fair value | ' | |||||||||||||
ASSET TABLE | ||||||||||||||
Description | Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||
at December 31, | ||||||||||||||
2013 | ||||||||||||||
Future Options Purchased | $ | 8,382,120 | $ | 8,382,120 | $ | — | $ | — | ||||||
Futures Contracts | $ | 1,717,472 | $ | 1,717,472 | $ | — | $ | — | ||||||
Total Assets | $ | 10,099,592 | $ | 10,099,592 | $ | — | $ | — | ||||||
LIABILITIES TABLE | ||||||||||||||
Description | Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||
at December 31, | ||||||||||||||
2013 | ||||||||||||||
Future Options Written | $ | (5,878,520 | ) | $ | (5,878,520 | ) | $ | — | $ | — | ||||
Total Liabilities | $ | (5,878,520 | ) | $ | (5,878,520 | ) | $ | — | $ | — | ||||
ASSET TABLE | ||||||||||||||
Description | Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||
at December 31, | ||||||||||||||
2012 | ||||||||||||||
Future Options Purchased | $ | 48,831,224 | $ | 48,831,224 | $ | — | $ | — | ||||||
Total Assets | $ | 48,831,224 | $ | 48,831,224 | $ | — | $ | — | ||||||
LIABILITIES TABLE | ||||||||||||||
Description | Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||
at December 31, | ||||||||||||||
2012 | ||||||||||||||
Future Options Written | $ | (16,637,538 | ) | $ | (16,637,538 | ) | $ | — | $ | — | ||||
Futures Contracts | $ | (1,030,392 | ) | $ | (1,030,392 | ) | $ | — | $ | — | ||||
Total Liabilities | $ | (17,667,930 | ) | $ | (17,667,930 | ) | $ | — | $ | — | ||||
Trading_Activities_Tables_Sydl
Trading Activities (Tables) - Sydling (Sydling AAA Master Fund LLC) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Sydling AAA Master Fund LLC | ' | ||||||||||
Trading Activities | ' | ||||||||||
Schedule of gross fair values of derivative instruments of futures and options contracts as separate assets and liabilities | ' | ||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||
ASSETS | |||||||||||
Futures Contracts | |||||||||||
Energy | $ | 2,678,080 | $ | 15,366,416 | |||||||
Total unrealized appreciation on open futures contracts | $ | 2,678,080 | $ | 15,366,416 | |||||||
LIABILITIES | |||||||||||
Futures Contracts | |||||||||||
Energy | $ | (960,608 | ) | $ | (16,396,808 | ) | |||||
Total unrealized depreciation on open futures contracts | $ | (960,608 | ) | $ | (16,396,808 | ) | |||||
Net unrealized appreciation (depreciation) on open futures contracts * | $ | 1,717,472 | $ | (1,030,392 | ) | ||||||
ASSETS | |||||||||||
Options Purchased | |||||||||||
Energy | $ | 8,382,120 | $ | 48,831,224 | |||||||
Options Purchased ** | $ | 8,382,120 | $ | 48,831,224 | |||||||
LIABILITIES | |||||||||||
Options Written | |||||||||||
Energy | $ | (5,878,520 | ) | $ | (16,637,538 | ) | |||||
Options Written *** | $ | (5,878,520 | ) | $ | (16,637,538 | ) | |||||
* These amounts are in “Net unrealized appreciation/(depreciation) on open futures contracts” on the Statements of Financial Condition. | |||||||||||
** These amounts are in “Future options purchased, at fair value” on the Statements of Financial Condition. | |||||||||||
*** These amounts are in “Future options written, at fair value” on the Statements of Financial Condition. | |||||||||||
Schedule of trading gains and losses, by market sector, on derivative instruments | ' | ||||||||||
Year ended | Year ended | Period ended | |||||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||
Gain (loss) | Gain (loss) | Gain (loss) | |||||||||
Sector | from trading | from trading | from trading | ||||||||
Energy | $ | (22,836,197 | ) | $ | 3,908,377 | $ | 2,416,431 | ||||
Grains | — | 97,957 | (46,873 | ) | |||||||
Index | — | (31,522 | ) | (4,778 | ) | ||||||
Industrial | — | 29,787 | — | ||||||||
$ | (22,836,197 | ) | $ | 4,004,599 | $ | 2,364,780 | **** | ||||
**** These amounts are in “Net Realized and Unrealized Gain/(Loss) from Derivative Instruments” on the Statements of Operations. |
Significant_Accounting_Policie6
Significant Accounting Policies (Details) - Sydling (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
LIABILITIES | ' | ' | ' |
Income tax liability or expense | $0 | ' | ' |
Sydling AAA Master Fund LLC | ' | ' | ' |
LIABILITIES | ' | ' | ' |
Amount of transfers amongst levels 1, 2 and 3 of the valuation hierarchy | 0 | 0 | 0 |
Cash equivalents | 0 | 0 | ' |
Cash margin | 2,075,137 | 8,149,158 | ' |
Income tax liability or expense | 0 | ' | ' |
Sydling AAA Master Fund LLC | Recurring Basis | Total Fair Value | ' | ' | ' |
ASSET | ' | ' | ' |
Total Assets | 10,099,592 | 48,831,224 | ' |
LIABILITIES | ' | ' | ' |
Total Liabilities | -5,878,520 | -17,667,930 | ' |
Sydling AAA Master Fund LLC | Recurring Basis | Total Fair Value | Futures Contracts | ' | ' | ' |
ASSET | ' | ' | ' |
Total Assets | 1,717,472 | ' | ' |
LIABILITIES | ' | ' | ' |
Total Liabilities | ' | -1,030,392 | ' |
Sydling AAA Master Fund LLC | Recurring Basis | Total Fair Value | Futures Options | Contract purchased | ' | ' | ' |
ASSET | ' | ' | ' |
Total Assets | 8,382,120 | 48,831,224 | ' |
Sydling AAA Master Fund LLC | Recurring Basis | Total Fair Value | Futures Options | Contract written | ' | ' | ' |
LIABILITIES | ' | ' | ' |
Total Liabilities | -5,878,520 | -16,637,538 | ' |
Sydling AAA Master Fund LLC | Recurring Basis | Level 1 | ' | ' | ' |
ASSET | ' | ' | ' |
Total Assets | 10,099,592 | 48,831,224 | ' |
LIABILITIES | ' | ' | ' |
Total Liabilities | -5,878,520 | -17,667,930 | ' |
Sydling AAA Master Fund LLC | Recurring Basis | Level 1 | Futures Contracts | ' | ' | ' |
ASSET | ' | ' | ' |
Total Assets | 1,717,472 | ' | ' |
LIABILITIES | ' | ' | ' |
Total Liabilities | ' | -1,030,392 | ' |
Sydling AAA Master Fund LLC | Recurring Basis | Level 1 | Futures Options | Contract purchased | ' | ' | ' |
ASSET | ' | ' | ' |
Total Assets | 8,382,120 | 48,831,224 | ' |
Sydling AAA Master Fund LLC | Recurring Basis | Level 1 | Futures Options | Contract written | ' | ' | ' |
LIABILITIES | ' | ' | ' |
Total Liabilities | ($5,878,520) | ($16,637,538) | ' |
Related_Party_Transactions_and3
Related Party Transactions and Other Agreements (Details) - Sydling (Sydling AAA Master Fund LLC, USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | |
LLC Agreement | Customer Agreement | Customer Agreement | Customer Agreement | ||||
Minimum | |||||||
advisor | |||||||
Related Party Transactions and Other Agreements | ' | ' | ' | ' | ' | ' | ' |
Number of advisors selected to make trading decisions | ' | ' | ' | 1 | ' | ' | ' |
Annual brokerage fee payable by Feeder as a percentage of adjusted member's capital | ' | ' | ' | ' | ' | 3.50% | ' |
Annual transaction fees as a percentage of member's capital | ' | ' | ' | ' | ' | 0.50% | ' |
Brokerage, clearing and transaction fees | $8,371,119 | $8,390,611 | $281,094 | ' | $281,094 | $8,371,119 | $8,390,611 |
Brokerage commissions payable | $474,646 | $772,567 | ' | ' | ' | $474,646 | $772,567 |
Organization_Costs_Details_Syd
Organization Costs (Details) - Sydling (USD $) | 12 Months Ended |
Dec. 31, 2011 | |
Organization Costs | ' |
Organization costs | $356,282 |
Master Fund | ' |
Organization Costs | ' |
Organization costs | $118,797 |
Trading_Activities_Details_Syd
Trading Activities (Details) - Sydling (Sydling AAA Master Fund LLC, USD $) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
ASSETS | ' | ' | ' | ' |
Options Purchased | ' | $8,382,120 | $48,831,224 | ' |
LIABILITIES | ' | ' | ' | ' |
Options Written | ' | -5,878,520 | -16,637,538 | ' |
Trading gains and losses, by market sector, on derivative instruments | ' | ' | ' | ' |
Gain (loss) from trading | 2,364,780 | -22,836,197 | 4,004,599 | 2,364,780 |
Energy | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Options Purchased | ' | 8,382,120 | 48,831,224 | ' |
LIABILITIES | ' | ' | ' | ' |
Options Written | ' | -5,878,520 | -16,637,538 | ' |
Trading gains and losses, by market sector, on derivative instruments | ' | ' | ' | ' |
Gain (loss) from trading | 2,416,431 | -22,836,197 | 3,908,377 | ' |
Grain | ' | ' | ' | ' |
Trading gains and losses, by market sector, on derivative instruments | ' | ' | ' | ' |
Gain (loss) from trading | -46,873 | ' | 97,957 | ' |
Index | ' | ' | ' | ' |
Trading gains and losses, by market sector, on derivative instruments | ' | ' | ' | ' |
Gain (loss) from trading | -4,778 | ' | -31,522 | ' |
Industrial | ' | ' | ' | ' |
Trading gains and losses, by market sector, on derivative instruments | ' | ' | ' | ' |
Gain (loss) from trading | ' | ' | 29,787 | ' |
Futures Contracts | ' | ' | ' | ' |
Gross fair values of derivative instruments of futures and options contracts as separate assets and liabilities | ' | ' | ' | ' |
Monthly average number of derivative contracts traded | ' | 7,077 | 8,160 | ' |
Number of derivative contracts traded | 3,423 | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Total unrealized appreciation on open futures contracts | ' | 2,678,080 | 15,366,416 | ' |
LIABILITIES | ' | ' | ' | ' |
Total unrealized depreciation on open futures contracts | ' | -960,608 | -16,396,808 | ' |
Net unrealized appreciation/(depreciation) on open futures contracts | ' | 1,717,472 | -1,030,392 | ' |
Futures Contracts | Energy | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Total unrealized appreciation on open futures contracts | ' | 2,678,080 | 15,366,416 | ' |
LIABILITIES | ' | ' | ' | ' |
Total unrealized depreciation on open futures contracts | ' | ($960,608) | ($16,396,808) | ' |
Futures Options | ' | ' | ' | ' |
Gross fair values of derivative instruments of futures and options contracts as separate assets and liabilities | ' | ' | ' | ' |
Monthly average number of derivative contracts traded | ' | 4,235 | 5,461 | ' |
Number of derivative contracts traded | 5,816 | ' | ' | ' |
Subsequent_Events_Details_Sydl
Subsequent Events (Details) - Sydling (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Sydling AAA Master Fund LLC | ' | ' | ' |
Subsequent Events | ' | ' | ' |
Additional subscription received | $37,095,627 | $201,883,911 | $83,651,142 |
Subsequent event | Feeder Members | ' | ' | ' |
Subsequent Events | ' | ' | ' |
Additional subscription received | 642,000 | ' | ' |
Redemptions paid | 10,444,709 | ' | ' |
Subsequent event | Sydling AAA Master Fund LLC | Feeder Members | ' | ' | ' |
Subsequent Events | ' | ' | ' |
Additional subscription received | 642,000 | ' | ' |
Redemptions paid | $11,009,565 | ' | ' |