Everest Fund L P 10-Q 18 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 2016shares
Document And Entity Information
Entity Registrant Name	EVEREST FUND L P
Entity Central Index Key	837,919
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	0
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

Statements of Financial Conditi

Statements of Financial Condition - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Equity in broker trading accounts:
Cash and investments in marketable securities	$ 10,483	$ 13,442
Cash in broker trading accounts	4,468,402	5,543,020
Net unrealized trading gains (losses) on open contracts	126,043	157,585
Total cash & equity in broker trading accounts	4,604,928	5,714,047
Other assets:
Interest receivable	790	461
Total Assets	4,605,718	5,714,508
LIABILITIES
Management fees payable	7,579	9,501
General partner fees payable	20,736	24,935
Redemptions payable	9,416	8,209
Incentive fee payable	0	0
Accounts payable & accrued expenses	37,430	42,597
Total Liabilities	75,160	85,242
PARTNERS' CAPITAL (Net Assets)
Limited partners, A Shares (2,253.51619 and 2,491.8149 units outstanding)	4,530,557	5,629,265
Total Partners' Capital	4,530,557	5,629,265
Total Liabilities & Partners' Capital	$ 4,605,718	$ 5,714,508

Statements of Financial Condit3

Statements of Financial Condition (Parenthetical) - shares	Sep. 30, 2016	Dec. 31, 2015
Partners Capital
Limited Partners Class A, units outstanding	2,253.51619	2,491.81469

CONDENSED SCHEDULES OF INVESTME

CONDENSED SCHEDULES OF INVESTMENTS (Unaudited)	Sep. 30, 2016USD ($)Integer	Sep. 30, 2015USD ($)Integer
Market value	$ 126,043	$ 157,585
% of Partners' Capital	2.78%	2.80%
LONG
Market value	$ 119,598	$ 44,360
% of Partners' Capital	2.64%	(0.79%)
SHORT
Market value	$ 6,445	$ 201,945
% of Partners' Capital	0.14%	3.59%
Futures contracts | LONG
Market value	$ 119,598	$ 44,360
% of Partners' Capital	2.64%	(0.79%)
Futures contracts | LONG | Interest rates
Number of contracts | Integer	376	100
Market value	$ 38,918	$ 43,148
% of Partners' Capital	0.86%	(0.77%)
Futures contracts | LONG | Metals [Member]
Number of contracts | Integer	27	7
Market value	$ (4,722)	$ 2,863
% of Partners' Capital	(0.10%)	0.05%
Futures contracts | LONG | Agriculture
Number of contracts | Integer	45	39
Market value	$ 74,466	$ (10,842)
% of Partners' Capital	1.64%	(0.19%)
Futures contracts | LONG | Currencies
Number of contracts | Integer	48	8
Market value	$ 18,330	$ 8,100
% of Partners' Capital	0.40%	0.14%
Futures contracts | LONG | Indices [Member]
Number of contracts | Integer	34	100
Market value	$ (7,394)	$ (1,333)
% of Partners' Capital	(0.16%)	(0.02%)
Futures contracts | SHORT
Market value	$ 6,445	$ 201,945
% of Partners' Capital	0.14%	3.59%
Futures contracts | SHORT | Interest rates
Number of contracts | Integer	26	289
Market value	$ (10,411)	$ 18,847
% of Partners' Capital	(0.23%)	(0.33%)
Futures contracts | SHORT | Metals [Member]
Number of contracts | Integer	1	30
Market value	$ (14,575)	$ 14,202
% of Partners' Capital	(0.32%)	0.25%
Futures contracts | SHORT | Energy
Number of contracts | Integer	9	22
Market value	$ (17,195)	$ 45,036
% of Partners' Capital	(0.38%)	0.80%
Futures contracts | SHORT | Agriculture
Number of contracts | Integer	58	89
Market value	$ 53,694	$ 56,446
% of Partners' Capital	1.19%	1.00%
Futures contracts | SHORT | Currencies
Number of contracts | Integer	46	160
Market value	$ 4,073	$ 111,628
% of Partners' Capital	0.09%	1.98%
Futures contracts | SHORT | Indices [Member]
Number of contracts | Integer	6	11
Market value	$ (9,141)	$ (6,519)
% of Partners' Capital	(0.20%)	(0.12%)

Statements of Operations

Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Net realized trading gain (loss)	$ (137,292)	$ 80,292	$ (89,104)	$ 459,918
Change in net unrealized trading gain (loss)	(56,977)	276,943	(27,822)	(93,193)
Net foreign currency translation loss	(737)	(463)	(11,611)	(11,448)
Brokerage commissions	(5,739)	(6,873)	(22,948)	(17,805)
NET TRADING INCOME (LOSS)	(200,746)	349,889	(151,484)	337,472
Interest income, net of cash management fees	2,468	251	7,399	474
TOTAL INCOME	(198,278)	350,140	(144,085)	337,947
EXPENSES:
General partner management fees	66,291	81,002	212,766	269,903
Advisor Management fees	23,529	29,702	77,858	95,897
Incentive fees	0	0	0	0
Professional fees	22,509	21,074	66,175	64,265
Administrative expenses	1,646	2,157	5,011	7,400
TOTAL EXPENSES	113,975	133,935	361,810	437,465
Net income	$ (312,253)	$ 216,206	$ (505,895)	$ (99,518)
NET INCOME (LOSS) PER UNIT OF PARTNERSHIP INTEREST	$ (138.56)	$ 86.64	$ (224.49)	$ (39.88)

STATEMENTS OF CHANGES IN PARTNE

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - USD ($)	Unit A Shares	Limited Ptrs A Shares	Total
BEGINNING PARTNERS' CAPITAL,Unit at Dec. 31, 2014	2,797.984	6,810,207	6,810,207
Net Asset Value Per Unit, beginning at Dec. 31, 2014	$ 2,433.97
Additions, unit	0	0	0
Redemptions, unit	(302.536)	(734,637)	(734,637)
Net profit (loss)		$ (99,518)	$ (99,518)
ENDING PARTNERS' CAPITAL,Unit at Sep. 30, 2015	2,495.448	5,976,052	5,976,052
Net Asset Value Per Unit, ending at Sep. 30, 2015	$ 2,394.78
BEGINNING PARTNERS' CAPITAL,Unit at Dec. 31, 2015	2,491.815	5,629,266	5,629,266
Net Asset Value Per Unit, beginning at Dec. 31, 2015	$ 2,259.10
Redemptions, unit	(238.299)	(592,813)	(592,813)
Net profit (loss)		$ (505,895)	$ (505,895)
ENDING PARTNERS' CAPITAL,Unit at Sep. 30, 2016	2,253,516	4,530,557	4,530,557
Net Asset Value Per Unit, ending at Sep. 30, 2016	$ 2,010.44

Statements of Cash Flows

Statements of Cash Flows - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Cash flows from (for) operating activities
Net income (loss)	$ (312,253)	$ 216,206	$ (505,895)	$ (99,518)
Net changes to reconcile net income (loss) to net cash provided (used) by operating activities:
Unrealized gain (loss) on open contracts			31,542	98,081
Interest receivable			(329)	21
Incentive fees payable			0	0
General partner fees payable			(4,199)	(5,110)
Redemption payable			1,207	0
Management fees payable			(1,922)	(1,393)
Accounts payable & accrued expenses			(5,168)	(7,653)
Net cash provided (used) in operating activities			(484,764)	(15,572)
Cash flows from (for) financing activities:
Cash Redemptions paid			(592,813)	(734,638)
Partner addition of units, net of offering costs			0	0
Net cash provided (used) by financing activities			(592,813)	(734,638)
Net increase (decrease) in cash and cash equivalents			(1,077,577)	(750,210)
Cash and cash equivalents Beginning of period			5,556,462	6,581,368
Cash and cash equivalents End of period	4,478,885	5,831,158	4,478,885	5,831,158
Cash & investment in marketable securities consist of:
Cash in banks	10,483	16,616	10,483	16,616
Cash in broker trading accounts	4,468,402	5,814,542	4,468,402	5,814,542
Cash and cash equivalents	0	0	0	0
Cash and cash equivalents End of period	$ 4,478,885	$ 5,831,158	$ 4,478,885	$ 5,831,158

1. GENERAL INFORMATION AND SUMM

1. GENERAL INFORMATION AND SUMMARY	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
1. GENERAL INFORMATION AND SUMMARY	The Everest Fund, L.P., formerly Everest Futures Fund, L.P. (an Iowa Limited Partnership), (the “Partnership”) is a limited partnership organized in June 1988, under the Iowa Uniform Limited Partnership Act (the “Act”) for the purpose of engaging in the speculative trading of commodity futures and options thereon and forward contracts (collectively referred to as “Commodity Interests”). The sole General Partner of the Partnership is Everest Asset Management, Inc. (the “General Partner”). On July 1, 1995, the Partnership recommenced its offering under a Regulation D, Rule 506 private placement. The private placement offering is continuing at a gross subscription price per unit equal to net asset value (NAV) per unit, plus an organization and offering cost reimbursement fee payable to the General Partner, and an ongoing compensation fee equal to 3% of the net asset value of Class A Units sold. The Class A Units (retail shares) continue to be charged an initial 1% Offering and Organization fee as a reduction to capital. Currently, R.J. O’Brien and Associates, LLC (“RJO”), 222 South Riverside Plaza, Suite 900, Chicago, Illinois 60606, serves as the Fund’s clearing broker to execute and clear Fund’s futures and equities transactions and provide other brokerage-related services. RJO Professional FX is a division of RJO. RJO Professional FX may execute foreign exchange or other over the counter transaction with the Fund as principal. RJO is a subsidiary of R.J. O’Brien Holdings Corporation. RJO is registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a Futures Commission Merchant (“FCM”) and is a member of the National Futures Association (“NFA”) in several capacities, including as a Forex Dealer Member (“FDM”) and is a member of certain principal U.S. contracts markets. RJO is a full clearing member of the CME Group, the Intercontinental Exchange, NYSE Liffe U.C., and the CBOE Futures Exchange (“CFE”).

2. SUMMARY OF SIGNIFICANT ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Revenue Recognition Commodity futures contracts, forward contracts, physical commodities, and related options are recorded on the trade-date basis and realized gains or losses are recognized when contracts are liquidated. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized gains or losses on open contracts (the difference between contract trade price and market price) are reported in the statement of financial condition as a net unrealized gain or loss, as there exists a right of offset of unrealized gains or losses in accordance with the Financial Accounting Standards Board Interpretation No. 39 - “Offsetting of Amounts Related to Certain Contracts.” Any change in net unrealized gain or loss from the preceding period is reported in the statement of operations. Fair value of exchange-traded contracts is based upon exchange settlement prices. 11 Fair value of non-exchange-traded contracts is based on third party quoted dealer values on the Interbank market. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash equivalents represent short-term highly liquid investments with maturities of 90 days or less at the date of acquisition. The Partnership maintains deposits with high quality financial institutions in amounts that are in excess of federally insured limits; however, the Partnership does not believe it is exposed to any significant credit risk. Redemptions Payable Pursuant to the provisions of FASB ASC 480, Distinguishing Liabilities from Equity, redemptions approved by the General Partner prior to month end with a fixed effective date and fixed amount are recorded as redemptions payable as of month end. Fair Value of Financial Instruments The financial instruments held by the Company are reported in the statements of financial condition at fair value, or at carrying amounts that approximate fair value, due to their highly liquid nature and short-term maturity. Foreign Currency Translation The Partnership’s functional currency is the U.S. dollar, however, it transacts business in currencies other than the U.S. dollar. Assets and liabilities denominated in foreign currencies are translated at the prevailing exchange rates as of the date of the statement of financial conditions. Gains and losses on investment activity are translated at the prevailing exchange rate on the date of each respective transaction while period end balances are translated at the period end currency rates. Realized and unrealized foreign exchange gains or losses are included in trading income or loss in the statements of operations. Income Taxes No provision for income taxes has been made in the accompanying financial statements as each partner is responsible for reporting income (loss) based upon the pro rata share of the profits or losses of the Partnership. The Partnership files U.S. federal and state tax returns.

3. FAIR VALUE OF FINANCIAL INST

3. FAIR VALUE OF FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
3. FAIR VALUE OF FINANCIAL INSTRUMENTS	Fair value is defined as 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. The Financial Accounting Standards Board has defined a hierarchy for fair value measurements. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: Level 1. Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2. Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly; and fair value is determined through the use of models or other valuation methodologies. A significant adjustment to a Level 2 input could result in the Level 2 measurement becoming a Level 3 measurement. Level 3. Inputs are unobservable for the asset or liability and include situations where there is little, if any, market activity for the asset or liability. The inputs into the determination of fair value are based upon the best information in the circumstances and may require significant management judgment or estimation. The table below demonstrates the Partnership’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of September 30, 2016 and September 30, 2015: Level 1 Level 2 Level 3 Assets at September 30, 2016: Open positions in futures and option contracts $ 126,043 — — Total assets at fair value $ 126,043 $ 0 $ 0 Level 1 Level 2 Level 3 Assets at September 30, 2015: Open positions in futures and option contracts $ 218,276 — — Total assets at fair value $ 218,276 $ 0 $ 0

4. LIMITED PARTNERSHIP AGREEMEN

4. LIMITED PARTNERSHIP AGREEMENT	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
4. LIMITED PARTNERSHIP AGREEMENT	The Limited Partners and General Partner share in the profits and losses of the Partnership in proportion to the number of units or unit equivalents held by each. However, no Limited Partner is liable for obligations of the Partnership in excess of their capital contribution and profits, if any, and such other amounts as they may be liable for pursuant to the Act. Distributions of profits are made solely at the discretion of the General Partner. Responsibility for managing the Partnership is vested solely in the General Partner. The General Partner has delegated complete trading authority to an unrelated party (see Note 5). Although the Agreement does not permit redemptions for the first six months following a Limited Partner’s admission to the Partnership, the Agreement does permit the Partnership to declare additional regular redemption dates. The Partnership will be dissolved on December 31, 2020, or upon the occurrence of certain events, as specified in the Limited Partnership agreement.

5. AGREEMENTS AND RELATED PARTY

5. AGREEMENTS AND RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
5. AGREEMENTS AND RELATED PARTY TRANSACTIONS	EMC Capital Management, Inc. (EMC), 2201 Waukegan Road, Suite West 240, Bannockburn, IL 60015; telephone: 847-267-8700, serves as the Partnership’s Commodity Trading Advisor (CTA). EMC receives a monthly management fee equal to 0.167% (2% annually) of the Partnership’s month-end net asset value, (as defined),and a quarterly incentive fee of 20% of the Partnership’s new net trading profits. The incentive fee is retained by EMC even though trading losses may occur in subsequent quarters; however, no further incentive fees are payable until any such trading losses (other than losses attributable to redeemed units and losses attributable to assets reallocated to another advisor) are recouped by the Partnership. Effective November 2003, the General Partner charges the Partnership a monthly management fee equal to 0.50% of the Partnership’s Class A beginning-of-month net asset value. From the monthly management fee the General Partner deducts the round turn trading costs and related exchange fees (between $5.80 to $10.70 per round turn trade on domestic exchanges, and higher for foreign exchanges) and pays the selling agents and certain other parties, if any, up to 50% of the fee retained by the General Partner. The General Partner may replace or add trading advisors at any time. The clearing agreements with the clearing brokers provide that the clearing brokers charge the Partnership brokerage commissions at the rate of between $5.80 to $10.70 per round-turn trade, plus applicable exchange, give up fees and National Futures Association fees for futures contracts and options on futures contracts executed on domestic exchanges and over the counter markets. For trades on certain foreign exchanges, the rates may be higher. The Partnership also reimburses the clearing brokers for all delivery, insurance, storage or other charges incidental to trading and paid to third parties. The Partnership earns interest on 78% of the Partnership’s average monthly cash balance on deposit with its clearing brokers at a rate equal to the average 91-day Treasury Bill rate during that month. A substantial portion of the Partnership’s assets are held in a cash account a Everest’s futures broker R.J. O’Brien, the FCM. As is standard in the industry Everest receives 90% of the 3 month T-bill rate on its cash that is unused for trading. The Partnership’s assets at RJO cash account are subject to potential loss resulting from interest rate fluctuations and default.

6. DERIVATIVE INSTRUMENTS

6. DERIVATIVE INSTRUMENTS	9 Months Ended
	Sep. 30, 2016
Derivative Instruments
6. DERIVATIVE INSTRUMENTS	In the normal course of business, the Partnership engages in trading derivatives by purchasing and selling futures contracts and options on future contracts for its own account. All such trading is effectuated as speculative as opposed to hedging. Effective January 1, 2009, the Partnership adopted the provisions of Accounting Standards Codification 815, Derivatives & Hedging, which requires enhanced disclosures about the objectives and strategies for using derivatives and quantitative disclosures about the fair value amounts, and gains and losses on derivatives. See below for such disclosures. Fair Value of Derivative Instruments 2016 2015 Speculative Instruments Location- Statement of Financial Condition Fair Value Fair Value Futures Contracts Net unrealized gain (loss) on open contracts $ 126,043 $ 218,276 2016 2015 Speculative Instruments Location- Statement of Operations Fair Value Fair Value Futures Contracts Net realized trading gains (losses) $ -89,104 $ 459,918 Futures Contracts Change in unrealized gains (losses) $ -27,822 $ -93,193 Asset Derivatives Balance Sheet Location Fair Value # of contracts Agricultural Net unrealized trading gains on open contracts 74,466 45 Currencies Net unrealized trading gains on open contracts 18,330 48 Metals Net unrealized trading gains on open contracts -4,722 27 Interest rates Net unrealized trading gains on open contracts 38,918 376 Indices Net unrealized trading gains on open contracts -7,394 34 119,598 530 Liability Derivatives Balance Sheet Location Fair Value # of contracts Net Agricultural Net unrealized trading gains on open contracts 53,694 58 128,160 Currencies Net unrealized trading gains on open contracts 4,073 46 22,403 Energy Net unrealized trading gains on open contracts -17,195 9 -17,195 Metals Net unrealized trading gains on open contracts -14,575 1 -19,297 Interest rates Net unrealized trading gains on open contracts -10,411 26 28,507 Indices Net unrealized trading gains on open contracts -9,141 6 -16,535 6,445 146 126,043 Trading Revenue for the Nine Months Ended September 30, 2016 Line Item in Income Statement Realized $ -123,663 Change in unrealized $ -27,822 $ -151,484 Trading Revenue for the Nine Months Ended September 30, 2015 Line Item in Income Statement Realized $ 430,666 Change in unrealized $ -93,193 $ 337,472 Includes net foreign currency translation gain (loss) Total average of futures contracts bought and sold Nine months ended September 30, 2016 Total $ -123,663 9 month average $ -13,740 Total average of futures contracts bought and sold Nine months ended September 30, 2015 Total $ 430,666 9 month average $ 47,852 For the nine months ended September 30, 2016, the monthly average of futures contracts bought and sold was approximately $-13,740.

7. FINANCIAL INSTRUMENTS, OFF-B

7. FINANCIAL INSTRUMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
7. FINANCIAL INSTRUMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES	The Partnership engages in the speculative trading of U.S. and foreign futures contracts, options on U.S. and foreign futures contracts, and forward contracts (“collectively derivatives”). These derivatives include both financial and non-financial contracts held as part of a diversified trading strategy. The Partnership is exposed to both market risk, the risk arising from changes in the market value of the contracts; and credit risk, the risk of failure by another party to perform according to the terms of a contract. The purchase and sale of futures and options on futures contracts requires margin deposits with a Futures Commission Merchant (“FCM”). Additional deposits may be necessary for any loss on contract value. The Commodity Exchange Act requires an FCM to segregate all customer transactions and assets from the FCM’s proprietary activities. A customer’s cash and other property such as U.S. Treasury Bills, deposited with an FCM are considered commingled with all other customer funds subject to the FCM’s segregation requirements. In the event of an FCM’s insolvency, recovery may be limited to a pro rata share of segregated funds available. It is possible that the recovered amount could be less than the total of cash and other property deposited. For derivatives, risks arise from changes in the market value of the contracts. Theoretically, the Partnership is exposed to a market risk equal to the value of futures and forward contracts purchased and unlimited liability on such contracts sold short. As both a buyer and seller of options, the Partnership 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. In the case of forward contracts, over-the-counter options contracts or swap contracts, which are traded on the interbank or other institutional market rather than on exchanges, the counterparty is generally a single bank or other financial institution, rather than a clearinghouse backed by a group of financial institutions; thus, there likely will be greater counterparty credit risk. The Partnership trades only with those counterparties that it believes to be creditworthy. All positions of the Partnership are valued each day on a mark-to-market basis. There can be no assurance that any clearing member, clearinghouse or other counterparty will be able to meet its obligations to the Partnership.

8. FINANCIAL HIGHLIGHTS

8. FINANCIAL HIGHLIGHTS	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
8. FINANCIAL HIGHLIGHTS	The following financial highlights show the Partnership’s financial performance for the nine months ended September 30, 2016 and September 30, 2015. September 30, 2016 September 30, 2015 Class A Class A Total return before distributions* -11.01 % -1.61 % Ratio to average net assets: Net investment Income (loss)** -9.14 % -9.17 % Management fees 5.49 % 5.67 % Incentive fees 0 % 0.00 % Other expenses 3.85 % 3.52 % Total expenses** 9.34 % 9.18 % *Not annualized **Annualized Interim Financial Statements The statements of financial condition, including the consolidated schedule of investments, as of September 30, 2016, the statements of operations for the three and nine months ended September 30, 2016 and 2015, the statements of cash flows and changes in partners’ capital (net asset value) for the nine months ended September 30, 2016 and 2015 and the accompanying notes to the financial statements are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles may be omitted pursuant to such rules and regulations. In the opinion of management, such financial statements and accompanying disclosures reflect all adjustments, which were of a normal and recurring nature, necessary for a fair presentation of financial position as of September 30, 2016, results of operations for the nine months ended September 30, 2016 and 2015, cash flows and changes in partners’ capital (net asset value) for the three months ended September 30, 2016 and 2015. The results of operations for the full nine months ended September 30, 2016 and 2015 are not necessarily indicative of the results to be expected for the full year or any other period. These financial statements should be read in conjunction with the audited financial statements and the notes thereto included in our form 10-k as filed with the Securities and Exchange Commission.

2. SUMMARY OF SIGNIFICANT ACC16

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Revenue Recognition	Commodity futures contracts, forward contracts, physical commodities, and related options are recorded on the trade-date basis and realized gains or losses are recognized when contracts are liquidated. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized gains or losses on open contracts (the difference between contract trade price and market price) are reported in the statement of financial condition as a net unrealized gain or loss, as there exists a right of offset of unrealized gains or losses in accordance with the Financial Accounting Standards Board Interpretation No. 39 - “Offsetting of Amounts Related to Certain Contracts.” Any change in net unrealized gain or loss from the preceding period is reported in the statement of operations. Fair value of exchange-traded contracts is based upon exchange settlement prices. Fair value of non-exchange-traded contracts is based on third party quoted dealer values on the Interbank market.
Use of Estimates	The preparation of financial statements in conformity with generally accepted accounting principles 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash equivalents represent short-term highly liquid investments with maturities of 90 days or less at the date of acquisition. The Partnership maintains deposits with high quality financial institutions in amounts that are in excess of federally insured limits; however, the Partnership does not believe it is exposed to any significant credit risk.
Redemptions Payable	Pursuant to the provisions of FASB ASC 480, Distinguishing Liabilities from Equity, redemptions approved by the General Partner prior to month end with a fixed effective date and fixed amount are recorded as redemptions payable as of month end.
Fair Value of Financial Instruments	The financial instruments held by the Company are reported in the statements of financial condition at fair value, or at carrying amounts that approximate fair value, due to their highly liquid nature and short-term maturity.
Foreign Currency Translation	The Partnership’s functional currency is the U.S. dollar, however, it transacts business in currencies other than the U.S. dollar. Assets and liabilities denominated in foreign currencies are translated at the prevailing exchange rates as of the date of the statement of financial conditions. Gains and losses on investment activity are translated at the prevailing exchange rate on the date of each respective transaction while period end balances are translated at the period end currency rates. Realized and unrealized foreign exchange gains or losses are included in trading income or loss in the statements of operations.
Income Taxes	No provision for income taxes has been made in the accompanying financial statements as each partner is responsible for reporting income (loss) based upon the pro rata share of the profits or losses of the Partnership. The Partnership files U.S. federal and state tax returns.

3. FAIR VALUE OF FINANCIAL IN17

3. FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Of Financial Instruments Tables
Fair Value Measurement	Level 1 Level 2 Level 3 Assets at September 30, 2016: Open positions in futures and option contracts $ 126,043 — — Total assets at fair value $ 126,043 $ 0 $ 0 Level 1 Level 2 Level 3 Assets at September 30, 2015: Open positions in futures and option contracts $ 218,276 — — Total assets at fair value $ 218,276 $ 0 $ 0

6. DERIVATIVE INSTRUMENTS (Tabl

6. DERIVATIVE INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2016
Derivative Instruments Tables
Fair Value of Derivative Instruments	2016 2015 Speculative Instruments Location- Statement of Financial Condition Fair Value Fair Value Futures Contracts Net unrealized gain (loss) on open contracts $ 126,043 $ 218,276 2016 2015 Speculative Instruments Location- Statement of Operations Fair Value Fair Value Futures Contracts Net realized trading gains (losses) $ -89,104 $ 459,918 Futures Contracts Change in unrealized gains (losses) $ -27,822 $ -93,193 Asset Derivatives Balance Sheet Location Fair Value # of contracts Agricultural Net unrealized trading gains on open contracts 74,466 45 Currencies Net unrealized trading gains on open contracts 18,330 48 Metals Net unrealized trading gains on open contracts -4,722 27 Interest rates Net unrealized trading gains on open contracts 38,918 376 Indices Net unrealized trading gains on open contracts -7,394 34 119,598 530 Liability Derivatives Balance Sheet Location Fair Value # of contracts Net Agricultural Net unrealized trading gains on open contracts 53,694 58 128,160 Currencies Net unrealized trading gains on open contracts 4,073 46 22,403 Energy Net unrealized trading gains on open contracts -17,195 9 -17,195 Metals Net unrealized trading gains on open contracts -14,575 1 -19,297 Interest rates Net unrealized trading gains on open contracts -10,411 26 28,507 Indices Net unrealized trading gains on open contracts -9,141 6 -16,535 6,445 146 126,043
Trading Revenue	Trading Revenue for the Nine Months Ended September 30, 2016 Line Item in Income Statement Realized $ -123,663 Change in unrealized $ -27,822 $ -151,484 Trading Revenue for the Nine Months Ended September 30, 2015 Line Item in Income Statement Realized $ 430,666 Change in unrealized $ -93,193 $ 337,472 Includes net foreign currency translation gain (loss) Total average of futures contracts bought and sold Nine months ended September 30, 2016 Total $ -123,663 9 month average $ -13,740 Total average of futures contracts bought and sold Nine months ended September 30, 2015 Total $ 430,666 9 month average $ 47,852

8. FINANCIAL HIGHLIGHTS (Tables

8. FINANCIAL HIGHLIGHTS (Tables)	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Return summary	September 30, 2016 September 30, 2015 Class A Class A Total return before distributions* -11.01 % -1.61 % Ratio to average net assets: Net investment Income (loss)** -9.14 % -9.17 % Management fees 5.49 % 5.67 % Incentive fees 0 % 0.00 % Other expenses 3.85 % 3.52 % Total expenses** 9.34 % 9.18 % *Not annualized **Annualized

3. FAIR VALUE OF FINANCIAL IN20

3. FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Level 1
Assets	$ 126,043	$ 218,276
Level 1 | Open positions in futures and option contracts
Assets	126,043	218,276
Level 2
Assets	0	0
Level 2 | Open positions in futures and option contracts
Assets	0	0
Level 3
Assets	0	0
Level 3 | Open positions in futures and option contracts
Assets	$ 0	$ 0

6. DERIVATIVE INSTRUMENTS (Deta

6. DERIVATIVE INSTRUMENTS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Net unrealized gain (loss) on open contracts	$ 126,043		$ 126,043		$ 157,585
Net realized trading gains (losses)	(137,292)	$ 80,292	(89,104)	$ 459,918
Change in unrealized gains (losses)	(56,977)	276,943	(27,822)	(93,193)
Futures Contracts
Net unrealized gain (loss) on open contracts	$ 126,043	$ 218,276	126,043	218,276
Net realized trading gains (losses)			(89,104)	459,918
Change in unrealized gains (losses)			$ (27,822)	$ (93,193)

6. DERIVATIVE INSTRUMENTS (De22

6. DERIVATIVE INSTRUMENTS (Details 1)	Sep. 30, 2016USD ($)Integer
Number of contracts, asset derivative | Integer	530
Net unrealized trading gains on open contracts, asset derivative, fair value	$ 119,598
Number of contracts, liability derivative | Integer	146
Net unrealized trading gains on open contracts, liability derivative, fair value	$ 6,445
Net unrealized trading gains on open contracts, liability derivative, net	$ 126,043
Agricultural
Number of contracts, asset derivative | Integer	45
Net unrealized trading gains on open contracts, asset derivative, fair value	$ 74,466
Number of contracts, liability derivative | Integer	58
Net unrealized trading gains on open contracts, liability derivative, fair value	$ 53,694
Net unrealized trading gains on open contracts, liability derivative, net	$ 128,160
Currencies
Number of contracts, asset derivative | Integer	48
Net unrealized trading gains on open contracts, asset derivative, fair value	$ 18,330
Number of contracts, liability derivative | Integer	46
Net unrealized trading gains on open contracts, liability derivative, fair value	$ 4,073
Net unrealized trading gains on open contracts, liability derivative, net	$ 22,403
Energy [Member]
Number of contracts, liability derivative | Integer	9
Net unrealized trading gains on open contracts, liability derivative, fair value	$ (17,195)
Net unrealized trading gains on open contracts, liability derivative, net	$ (17,195)
Metals
Number of contracts, asset derivative | Integer	27
Net unrealized trading gains on open contracts, asset derivative, fair value	$ (4,722)
Number of contracts, liability derivative | Integer	1
Net unrealized trading gains on open contracts, liability derivative, fair value	$ (14,575)
Net unrealized trading gains on open contracts, liability derivative, net	$ (19,297)
Interest rates
Number of contracts, asset derivative | Integer	376
Net unrealized trading gains on open contracts, asset derivative, fair value	$ 38,918
Number of contracts, liability derivative | Integer	26
Net unrealized trading gains on open contracts, liability derivative, fair value	$ (10,411)
Net unrealized trading gains on open contracts, liability derivative, net	$ 28,507
Indices
Number of contracts, asset derivative | Integer	34
Net unrealized trading gains on open contracts, asset derivative, fair value	$ (7,394)
Number of contracts, liability derivative | Integer	6
Net unrealized trading gains on open contracts, liability derivative, fair value	$ (9,141)
Net unrealized trading gains on open contracts, liability derivative, net	$ (16,535)

6. DERIVATIVE INSTRUMENTS (De23

6. DERIVATIVE INSTRUMENTS (Details 2) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Derivative Instruments Details 2
Trading Revenue Realized	$ (123,663)	$ 430,666
Trading Revenue Change in unrealized	(27,822)	(93,193)
Trading Revenue	(151,484)	337,472
Total	(123,663)	430,666
3 month average	$ (13,740)	$ 47,852

8. FINANCIAL HIGHLIGHTS (Detail

8. FINANCIAL HIGHLIGHTS (Details) - Class A	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Total return before distributions	(11.01%)	(1.61%)
Ratio to average net assets:
Net investment Income (loss)	(9.14%)	(9.17%)
Management fees	5.49%	5.67%
Incentive fees	0.00%	0.00%
Other expenses	3.85%	3.52%
Total expenses	9.34%	9.18%