Nestor Partners 10-K 2013 FY Annual report

Nestor Partners

(A New Jersey Limited Partnership)

Financial Statements for the Years Ended December 31,

2013 and 2012, and Report of Independent Registered

Public Accounting Firm

NESTOR PARTNERS

TABLE OF CONTENTS

	Page(s)
AFFIRMATION OF MILLBURN RIDGEFIELD CORPORATION
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	1
FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012:
Statements of Financial Condition	2
Condensed Schedules of Investments	3–6
Statements of Operations	7
Statements of Changes in Partners’ Capital	8
Statements of Financial Highlights	9
Notes to Financial Statements	10–28

AFFIRMATION OF MILLBURN RIDGEFIELD CORPORATION

In compliance with the Commodity Futures Trading Commission’s regulations, I hereby affirm that to the best of my knowledge and belief, the information contained in the statements of financial condition, including the condensed schedules of investments, of Nestor Partners as of December 31, 2013 and 2012, and the related statements of operations, changes in partners’ capital, and financial highlights for each of the two years in the period ended December 31, 2013, are complete and accurate.

Harvey Beker, Co-Chief Executive Officer

Millburn Ridgefield Corporation

General Partner of Nestor Partners

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners of Nestor Partners:

We have audited the accompanying statements of financial condition of Nestor Partners (the “Partnership”), including the condensed schedules of investments, as of December 31, 2013 and 2012, and the related statements of operations, changes in partners’ capital and the financial highlights for each of the two years in the period ended December 31, 2013. These financial statements and financial highlights are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2013 by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Nestor Partners as of December 31, 2013 and 2012, and the results of its operations, changes in its partners’ capital and the financial highlights for each of the two years in the period ended December 31, 2013, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

New York, New York

March 20, 2014

NESTOR PARTNERS

STATEMENTS OF FINANCIAL CONDITION

AS OF DECEMBER 31, 2013 AND 2012

	2013		2012
ASSETS
EQUITY IN TRADING ACCOUNTS:
Investments in U.S. Treasury notes — at fair value (amortized cost $27,505,889 and $28,389,695)	$	27,509,188	$	28,396,041
Net unrealized appreciation on open futures and forward currency contracts		3,134,932		2,496,110
Due from brokers		1,775,697		2,205,107
Cash denominated in foreign currencies (cost $3,316,796 and $1,359,884)		3,319,987		1,368,336
Total equity in trading accounts		35,739,804		34,465,594
INVESTMENTS IN U.S. TREASURY NOTES — at fair value (amortized cost $82,000,337 and $111,707,766)		82,011,307		111,733,763
CASH AND CASH EQUIVALENTS		4,135,215		2,226,883
ACCRUED INTEREST RECEIVABLE		261,737		646,507
TOTAL	$	122,148,063	$	149,072,747
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES:
Capital contributions received in advance	$	225,000	$	873,000
Net unrealized depreciation on open futures and forward  currency contracts		215,372		943,951
Accrued brokerage fees		218,459		285,906
Due to brokers		1,698,720		-
Cash denominated in foreign currencies (cost $0 and -$428,893)		-		438,694
Accrued expenses		111,175		146,185
Capital withdrawals payable		2,323,360		3,341,531
Due to General Partner		333		123
Total liabilities		4,792,419		6,029,390
PARTNERS' CAPITAL		117,355,644		143,043,357
TOTAL	$	122,148,063	$	149,072,747

See notes to financial statements

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NESTOR PARTNERS

CONDENSED SCHEDULE OF INVESTMENTS

AS OF DECEMBER 31, 2013

	Net Unrealized Appreciation/ (Depreciation) as a % of Partners' Capital			Net Unrealized Appreciation/ (Depreciation)
FUTURES AND FORWARD CURRENCY CONTRACTS
FUTURES CONTRACTS
Long futures contracts:
Energies		(0.06	)%	$	(73,768	)
Grains		(0.29	)		(340,967	)
Interest rates		(0.79	)		(926,200	)
Livestock		0.02			20,440
Metals		1.28			1,510,274
Softs		(0.02	)		(28,512	)
Stock indices		2.55			2,992,958
Total long futures contracts		2.69			3,154,225
Short futures contracts:
Energies		(0.05	)		(62,968	)
Grains		0.24			278,024
Interest rates
5 Year U.S. Treasury Note (-246 contracts, settlement date March 2014)		0.00			4,438
10 Year U.S. Treasury Note (-44 contracts, settlement date March 2014)		0.01			5,672
Other		(0.05	)		(58,963	)
Total interest rates		(0.04	)		(48,853	)
Livestock		(0.01	)		(6,250	)
Metals		(0.44	)		(521,505	)
Softs		0.03			41,728
Stock indices		0.05			62,660
Total short futures contracts		(0.22	)		(257,164	)
TOTAL INVESTMENTS IN FUTURES CONTRACTS — Net		2.47			2,897,061
FORWARD CURRENCY CONTRACTS
Total long forward currency contracts		(0.09	)		(106,168	)
Total short forward currency contracts		0.11			128,667
TOTAL INVESTMENTS IN FORWARD CURRENCY  CONTRACTS — Net		0.02			22,499
TOTAL		2.49	%	$	2,919,560

(Continued)

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NESTOR PARTNERS

CONDENSED SCHEDULE OF INVESTMENTS

AS OF DECEMBER 31, 2013

U.S. TREASURY NOTES

Face Amount		Description	Fair Value as a % of Partners' Capital			Fair Value
$	34,890,000	U.S. Treasury notes, 1.250%, 03/15/2014		29.80	%	$	34,973,136
	10,040,000	U.S. Treasury notes, 1.000%, 05/15/2014		8.58			10,073,924
	32,970,000	U.S. Treasury notes, 0.625%, 07/15/2014		28.18			33,064,016
	31,380,000	U.S. Treasury notes, 0.250%, 09/15/2014		26.76			31,409,419
		TOTAL INVESTMENTS IN U.S. TREASURY NOTES (amortized cost $109,506,226)		93.32	%	$	109,520,495

See notes to financial statements (Concluded)

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NESTOR PARTNERS

CONDENSED SCHEDULE OF INVESTMENTS

AS OF DECEMBER 31, 2012

	Net Unrealized Appreciation/ (Depreciation) as a % of Partners' Capital			Net Unrealized Appreciation/ (Depreciation)
FUTURES AND FORWARD CURRENCY CONTRACTS
FUTURES CONTRACTS
Long futures contracts:
Energies		0.54	%	$	776,587
Grains		(0.08	)		(120,475	)
Interest rates
2 Year U.S. Treasury Note (1,238 contracts, settlement date March 2013)		0.06			87,593
5 Year U.S. Treasury Note (359 contracts, settlement date March 2013)		(0.01	)		(14,391	)
10 Year U.S. Treasury Note (165 contracts, settlement date March 2013)		(0.02	)		(33,406	)
30 Year U.S. Treasury Bond (32 contracts, settlement date March 2013)		(0.01	)		(12,750	)
Other		0.43			615,382
Total interest rates		0.45			642,428
Metals		0.05			68,455
Softs		0.00			4,385
Stock indices		0.66			940,708
Total long futures contracts		1.62			2,312,088
Short futures contracts:
Energies		(0.64	)		(920,638	)
Grains		0.04			67,207
Interest rates		0.01			10,171
Livestock		(0.00	)		(3,220	)
Metals		(0.19	)		(274,237	)
Softs		0.13			189,635
Stock indices		(0.02	)		(33,060	)
Total short futures contracts		(0.67	)		(964,142	)
TOTAL INVESTMENTS IN FUTURES CONTRACTS — Net		0.95			1,347,946
FORWARD CURRENCY CONTRACTS
Total long forward currency contracts		(0.19	)		(276,829	)
Total short forward currency contracts		0.33			481,042
TOTAL INVESTMENTS IN FORWARD CURRENCY  CONTRACTS — Net		0.14			204,213
TOTAL		1.09	%	$	1,552,159

(Continued)

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NESTOR PARTNERS

CONDENSED SCHEDULE OF INVESTMENTS

AS OF DECEMBER 31, 2012

U.S. TREASURY NOTES

Face Amount		Description	Fair Value as a % of Partners' Capital			Fair Value
$	37,990,000	U.S. Treasury notes, 0.625%, 02/28/2013		26.58	%	$	38,024,132
	38,450,000	U.S. Treasury notes, 3.375%, 07/31/2013		27.38			39,169,436
	52,880,000	U.S. Treasury notes, 0.125%, 09/30/2013		36.96			52,867,606
	10,040,000	U.S. Treasury notes, 0.500%, 11/15/2013		7.04			10,068,630
		TOTAL INVESTMENTS IN U.S. TREASURY NOTES (amortized cost $140,097,461)		97.96	%	$	140,129,804

See notes to financial statements (Concluded)

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NESTOR PARTNERS

STATEMENTS OF OPERATIONS

YEARS ENDED DECEMBER 31, 2013 AND 2012

	2013			2012
INVESTMENT INCOME — Interest income	$	211,792		$	215,270
EXPENSES:
Brokerage fees		3,418,662			3,735,279
Administrative expenses		332,718			381,158
Custody fees and other expenses		28,814			32,580
Total expenses		3,780,194			4,149,017
NET INVESTMENT LOSS		(3,568,402	)		(3,933,747	)
NET REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) on closed positions:
Futures and forward currency contracts		(6,524,991	)		(4,223,405	)
Foreign exchange translation		(78,602	)		13,207
Net change in unrealized:
Futures and forward currency contracts		1,367,401			(903,027	)
Foreign exchange translation		4,540			4,053
Net gains (losses) from U.S. Treasury notes:
Realized		4,041			(4,225	)
Net change in unrealized		(18,074	)		30,142
Total net realized and unrealized losses		(5,245,685	)		(5,083,255	)
NET LOSS		(8,814,087	)		(9,017,002	)
LESS PROFIT SHARE TO GENERAL PARTNER		751			3,968
NET LOSS AFTER PROFIT SHARE TO  GENERAL PARTNER	$	(8,814,838	)	$	(9,020,970	)

See notes to financial statements

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NESTOR PARTNERS

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

YEARS ENDED DECEMBER 31, 2013 AND 2012

	Limited Partners			Special Limited Partners			New Profit Memo Account			General Partner			Total
PARTNERS' CAPITAL — January 1, 2012	$	89,151,864		$	64,316,203		$	-		$	3,150,229		$	156,618,296
Contributions		15,693,900			13,664			-			-			15,707,564
Withdrawals		(16,773,439	)		(3,488,094	)		-			(3,968	)		(20,265,501	)
Net loss		(6,406,059	)		(2,498,585	)		-			(112,358	)		(9,017,002	)
General Partner's allocation — profit share		(3,968	)		-			3,968			-			-
Transfer of New Profit Memo Account to General Partner		-			-			(3,968	)		3,968			-
PARTNERS' CAPITAL — December 31, 2012		81,662,298			58,343,188			-			3,037,871			143,043,357
Contributions		4,507,000			2,131,417			-			-			6,638,417
Withdrawals		(18,221,797	)		(4,589,498	)		-			(700,748	)		(23,512,043	)
Net loss		(6,070,764	)		(2,621,748	)		(3	)		(121,572	)		(8,814,087	)
General Partner's allocation — profit share		(751	)		-			751			-			-
Transfer of New Profit Memo Account to General Partner		-			-			(748	)		748			-
PARTNERS' CAPITAL — December 31, 2013	$	61,875,986		$	53,263,359		$	-		$	2,216,299		$	117,355,644

See notes to financial statements

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NESTOR PARTNERS

STATEMENTS OF FINANCIAL HIGHLIGHTS

YEARS ENDED DECEMBER 31, 2013 AND 2012

	Limited Partners						Special Limited Partners
	2013			2012			2013			2012
Ratios to average capital —
Net investment loss		(4.19	)%		(3.95	)%		(0.83	)%		(0.69	)%
Total expenses		4.35	%		4.09	%		0.99	%		0.83	%
Profit share allocation		0.00	%		0.00	%		0.00	%		0.00	%
Total expenses and profit share allocation		4.35	%		4.09	%		0.99	%		0.83	%
Total return before profit share allocation		(7.65	)%		(6.88	)%		(4.50	)%		(3.79	)%
Less profit share allocation		0.00	%		0.00	%		0.00	%		0.00	%
Total return after profit share allocation		(7.65	)%		(6.88	)%		(4.50	)%		(3.79	)%

See notes to financial statements

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NESTOR PARTNERS

NOTES TO FINANCIAL STATEMENTS

Years ENDED dECEMBER 31, 2013 AND 2012

1. ORGANIZATION

Nestor Partners (the “Partnership”) is a limited partnership which was organized in 1976 under the New Jersey Uniform Limited Partnership Act. The Limited Partnership Agreement (the “Agreement”) was amended and restated as of April 5, 2004. The Partnership engages in the speculative trading of futures and forward currency contracts. The instruments that are traded by the Partnership are volatile and involve a high degree of market risk.

The General Partner of the Partnership is Millburn Ridgefield Corporation (the “General Partner”). Principals, employees, former employees and other affiliates of the General Partner have invested in the Partnership as special limited partners.

The Agreement provides that subject to certain limitations, the General Partner shall conduct and manage the business of the Partnership. The General Partner has the right to make all investment decisions regarding the Partnership, authorize the payments of distributions to partners, enter into customer agreements with brokers and take such other actions as it deems necessary or desirable to manage the business of the Partnership.

The limited partners, special limited partners, New Profit Memo Account (see Note 3) and the General Partner share in the profits and losses of the Partnership which are determined before brokerage fees (Note 2) and profit share allocations on the basis of their proportionate interests of Partnership capital (Note 3). The General Partner and special limited partners are charged lower brokerage fees than limited partners in accordance with the Agreement. No limited partner or special limited partner shall be liable for Partnership obligations in excess of their capital contribution plus profits allocated to their capital accounts, if any.

Subject to certain conditions, a partner has the right to redeem all or a portion of its partnership capital as of any month-end upon fifteen days’ prior written notice to the General Partner. In its sole discretion, the General Partner may permit redemptions on shorter notice or as of a date other than month-end. Partners who purchased their interests through certain selling agents and redeem their partnership capital prior to the one-year anniversary of their subscription will pay the applicable early redemption fee. Redemptions will be made as of the last day of the month for an amount equal to the net asset value of the portion of a partner’s capital being redeemed; a redeeming partner shall receive such redeemed capital less the redemption fee, if any.

The General Partner, subject to Commodity Futures Trading Commission requirements, may (at its discretion) sell additional Limited Partnership Interests to persons desiring to become limited partners.

The Partnership will dissolve on October 31, 2017 or in the event of certain conditions set forth in the Agreement.

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation — The financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) as detailed in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“Codification”).

Investments — The Partnership records its transactions in futures and forward currency contracts and United States (“U.S.”) Treasury notes, including related income and expenses, on a trade-date basis.

Open futures contracts are valued at quoted market values. Open forward currency contracts are valued at fair value which is based on pricing models that consider the time value of money and the current market and contractual prices of the underlying financial instruments. Brokerage commissions on open futures contracts are expensed when contracts are opened. Realized gains (losses) and changes in unrealized appreciation (depreciation) on futures and forward currency contracts are recognized in the periods in which the contracts are closed or the changes in the value of open contracts occur and are included in net realized and unrealized gains (losses) in the Statements of Operations.

Investments in U.S. Treasury notes are valued at fair value based on the midpoint of bid/ask quotations reported daily at 3 pm EST by Bloomberg. The Partnership amortizes premiums and accretes discounts on U.S. Treasury notes. Such securities are normally on deposit with financial institutions (see Note 6) as collateral for performance of the Partnership’s trading obligations with respect to derivative contracts or are held for safekeeping in a custody account at HSBC Bank USA, N.A.

Cash and Cash Equivalents — Cash and cash equivalents includes cash and investments in Dreyfus Treasury Prime Cash Management, a short term U.S. government securities money market fund.

Cash Denominated in Foreign Currencies — Includes foreign currency cash held at the Partnership’s trading counterparties.

Foreign Currency Translation — Assets and liabilities denominated in foreign currencies are translated to U.S. Dollars at prevailing exchange rates of such currencies. Purchases and sales of investments are translated to U.S. Dollars at the exchange rate prevailing when such transactions occurred.

Brokerage Fees — The Agreement provides that the Partnership shall charge the limited partners’ capital accounts and pay the General Partner brokerage fees at a fixed rate of 0.542% per month of net asset value (6.5% per annum) of limited partnership interests. Effective July 1, 2003, the General Partner reduced the brokerage fee rate to 0.458% per month of net asset value (5.5% per annum) and effective January 1, 2014, the General Partner reduced the brokerage fee rate to 0.417% per month of net asset value (5.0% per annum). The General Partner retains the right to charge less than the annual brokerage rate except as specified in the Agreement.

Administrative Expenses — The Partnership bears expenses, including periodic legal, accounting and filing fees, up to an amount equal to 1/4 of 1% per annum of the average net assets of the Partnership. The General Partner bears any excess over such amounts. The Partnership will pay any extraordinary expenses applicable to it.

The Partnership’s administrative expenses included $111,175 and $120,329 in 2013 and 2012, respectively, which relates to legal and accounting services provided to the Partnership by The Millburn Corporation, an affiliate of the General Partner.

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Income Taxes —The Partnership is treated as a limited partnership for federal and state income tax reporting purposes. Accordingly, the Partnership prepares calendar year U.S. federal and applicable state tax returns and reports to the partners their allocable shares of the Partnership’s income, expenses and trading gains or losses. No provision for income taxes has been made in the accompanying financial statements as the partners are responsible for the payment of taxes.

The Income Taxes topic of the Codification clarifies the accounting for uncertainty in tax positions. This requires that the Partnership recognize in its financial statements the impact of any uncertain tax positions. Based on a review of the Partnership’s open tax years, 2010 to 2013, the General Partner has determined that no reserves for uncertain tax positions were required.

Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements. Actual results could differ from these estimates.

Right of Offset — The customer agreements between the Partnership and its brokers give the Partnership the legal right to net unrealized gains and losses with each broker. Unrealized gains and losses related to offsetting transactions with these brokers are reflected on a net basis in the equity in trading accounts in the Statements of Financial Condition.

Fair Value of Financial Instruments — The fair value of the Partnership’s assets and liabilities, which qualify as financial instruments under the Fair Value Measurements and Disclosures topic of the Codification, approximates the carrying amounts presented in the Statements of Financial Condition. The topic defines fair value, establishes a framework for measurement of fair value and expands disclosures about fair value measurements. The three levels of the fair value hierarchy are described below:

Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 — Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly;

Level 3 — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

In determining fair value, the Partnership separates its investments into two categories: cash instruments and derivative contracts.

Cash Instruments — The Partnership’s cash instruments are generally classified within Level 1 of the fair value hierarchy because they are typically valued using quoted market prices. The types of instruments valued based on quoted market prices in active markets include U.S. government obligations and an investment in a quoted short-term U.S. government securities money market fund. The General Partner of the Partnership does not adjust the quoted price for such instruments even in situations where the Partnership holds a large position and a sale could reasonably impact the quoted price.

Derivative Contracts — Derivative contracts can be exchange-traded or over-the-counter (“OTC”). Exchange-traded futures contracts are valued based on quoted closing settlement prices and typically fall within Level 1 of the fair value hierarchy.

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Spot currency contracts are valued based on current market prices (“Spot Price”). Forward currency contracts are valued based on pricing models that consider the Spot Price plus the financing cost or benefit (“Forward Point”). Forward Points from the quotation service providers are generally in periods of one month, two months, three months, six months, nine months and twelve months forward while the contractual forward delivery dates for the forward currency contracts traded by the Partnership may be in between these periods. The General Partner’s policy to determine fair value for forward currency contracts involves first calculating the number of months from the date the forward currency contract is being valued to its maturity date (“Months to Maturity”), then identifying the forward currency contracts for the two forward months that are closest to the Months to Maturity (“Forward Month Contracts”). Linear interpolation is then performed between the dates of these two Forward Month Contracts to calculate the interpolated forward point. Model inputs can generally be verified and model selection does not involve significant management judgment. Such instruments are typically classified within Level 2 of the fair value hierarchy.

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During the years ended December 31, 2013 and 2012 there were no transfers of assets or liabilities between Level 1 and Level 2. The following table represents the Partnership’s investments by hierarchical level as of December 31, 2013 and 2012 in valuing the Partnership’s investments at fair value. At December 31, 2013 and 2012, the Partnership held no assets or liabilities classified in Level 3.

Financial assets and liabilities at fair value as of December 31, 2013

	Level 1			Level 2		Total
U.S. Treasury Notes (1)	$	109,520,495		$	-	$	109,520,495
Short-Term Money Market Fund*		3,885,215			-		3,885,215
Exchange-Traded Futures Contracts
Energies		(136,736	)		-		(136,736	)
Grains		(62,943	)		-		(62,943	)
Interest rates		(975,053	)		-		(975,053	)
Livestock		14,190			-		14,190
Metals		988,769			-		988,769
Softs		13,216			-		13,216
Stock indices		3,055,618			-		3,055,618
Total exchange-traded futures contracts		2,897,061			-		2,897,061
Over-the-Counter Forward Currency Contracts		-			22,499		22,499
Total futures and forward currency contracts (2)		2,897,061			22,499		2,919,560
Total financial assets at fair value	$	116,302,771		$	22,499	$	116,325,270
Per line item in Statements of Financial Condition
(1)
Investments in U.S. Treasury notes held in equity trading accounts (as collateral)						$	27,509,188
Investments in U.S. Treasury notes							82,011,307
Total investments in U.S. Treasury notes						$	109,520,495
(2)
Net unrealized appreciation on open futures and forward currency contracts						$	3,134,932
Net unrealized depreciation on open futures and forward currency contracts							(215,372	)
Total unrealized appreciation on open futures and forward currency contracts						$	2,919,560

*The short-term money market fund is included in Cash and Cash Equivalents on the Statements of Financial Condition.

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Financial assets and liabilities at fair value as of December 31, 2012

	Level 1			Level 2		Total
U.S. Treasury Notes (1)	$	140,129,804		$	-	$	140,129,804
Short-Term Money Market Fund*		2,041,883			-		2,041,883
Exchange-Traded Futures Contracts
Energies		(144,051	)		-		(144,051	)
Grains		(53,268	)		-		(53,268	)
Interest rates		652,599			-		652,599
Livestock		(3,220	)		-		(3,220	)
Metals		(205,782	)		-		(205,782	)
Softs		194,020			-		194,020
Stock indices		907,648			-		907,648
Total exchange-traded futures contracts		1,347,946			-		1,347,946
Over-the-Counter Forward Currency Contracts		-			204,213		204,213
Total futures and forward currency contracts (2)		1,347,946			204,213		1,552,159
Total financial assets at fair value	$	143,519,633		$	204,213	$	143,723,846
Per line item in Statements of Financial Condition
(1)
Investments in U.S. Treasury notes held in equity trading accounts (as collateral)						$	28,396,041
Investments in U.S. Treasury notes							111,733,763
Total investments in U.S. Treasury notes						$	140,129,804
(2)
Net unrealized appreciation on open futures and forward currency contracts						$	2,496,110
Net unrealized depreciation on open futures and forward currency contracts							(943,951	)
Total unrealized appreciation on open futures and forward currency contracts						$	1,552,159

*The short-term money market fund is included in Cash and Cash Equivalents on the Statements of Financial Condition.

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3. PROFIT SHARE ALLOCATION

The Agreement provides that the General Partner’s profit share equal to 20% of Trading Profits at the end of each year is charged to the limited partners’ capital accounts. New Trading Profits includes realized and unrealized trading profits (losses), interest income, brokerage fees, trading-related expenses and administrative expenses. For limited partners’ withdrawals during the year, the profit share calculation shall be computed as though the withdrawal date was at year-end. Profit share attributable to interests redeemed during a year is tentatively credited to an account maintained for bookkeeping purposes called New Profit Memo Account. Because limited partners may purchase their partnership interests at different times, they may recognize different amounts of Trading Profits. Each limited partner pays a profit share only on Trading Profits applicable to its partnership interest. Limited partners who make multiple investments in the Partnership receive separate partnership interests for purposes of tracking the profit share. Accordingly, in any given year some limited partners may experience net gains and be charged the 20% profit share allocation for all or a portion of their interests where limited partners in the aggregate experienced net losses.

Any profit share charged is added to the General Partner’s capital account to the extent net taxable capital gains are allocated to the General Partner and the remainder, if any, of such profit share is added to the New Profit Memo Account. The General Partner may not make any withdrawal from the balance in the New Profit Memo Account. If, at the end of a subsequent year, net taxable gains are allocated to the General Partner in excess of such year’s profit share, a corresponding amount is transferred from the New Profit Memo Account to the General Partner’s capital account.

4. DUE FROM/TO BROKERS

At December 31, 2013 and 2012, due from and due to brokers balances in the Statements of Financial Condition include net cash receivable from each broker and net cash payable to each broker, respectively.

5. TRADING ACTIVITIES

The Partnership conducts its futures trading with various futures commission merchants (“FCMs”) on futures exchanges and its forward currency trading with various banks or dealers (“Dealers”) in the interbank markets. Substantially all assets included in the Partnership’s equity in trading accounts and certain liability accounts, as discussed below, were held as collateral by such FCMs in either U.S. regulated segregated accounts (for futures contracts traded on U.S. exchanges) or non-U.S. secured accounts (for futures contracts traded on non-U.S. exchanges) as required by U.S. Commodity Futures Trading Commission’s regulations, or held as collateral by the Dealers.

Liabilities in the Statements of Financial Condition that are components of “Total equity in trading accounts” include net unrealized depreciation on open futures and forward currency contracts, cash denominated in foreign currencies and due to brokers.

The Partnership enters into contracts with various institutions that contain a variety of indemnifications. The Partnership’s maximum exposure under these arrangements is unknown. However, the Partnership has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

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6. DERIVATIVE INSTRUMENTS

The Partnership is party to derivative financial instruments in the normal course of its business. These financial instruments include futures and forward currency contracts which may be traded on an exchange or OTC.

The Partnership records its derivative activities on a mark-to-market basis as described in Note 2. For OTC contracts, the Partnership enters into master netting agreements with its counterparties. Therefore, assets represent the Partnership’s unrealized gains less unrealized losses for OTC contracts in which the Partnership has a master netting agreement. Similarly, liabilities represent net amounts owed to counterparties on OTC contracts.

Futures contracts are agreements to buy or sell an underlying asset or index for a set price in the future. Initial margin deposits are made upon entering into futures contracts and can be either in cash or treasury securities. Open futures contracts are revalued on a daily basis to reflect the market value of the contracts at the end of each trading day. Variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. When the contract is closed, the Partnership records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed. The Partnership bears the market risk that arises from changes in the value of these financial instruments.

Forward currency contracts entered into by the Partnership represent a firm commitment to buy or sell an underlying currency at a specified value and point in time based upon an agreed or contracted quantity. The ultimate gain or loss is equal to the difference between the value of the contract at the onset and the value of the contract at settlement date.

Each of these financial instruments is subject to various risks similar to those related to the underlying financial instruments including market risk, credit risk and sovereign risk.

Market risk is the potential change in the value of the instruments traded by the Partnership due to market changes including interest and foreign exchange rate movements and fluctuations in futures 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 financial instruments traded by the Partnership contain varying degrees of off-balance sheet risk whereby changes in the market values of the futures and forward currency contracts and the Partnership’s satisfaction of its obligations related to such market value changes may exceed the amount recognized in the Statements of Financial Condition.

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. Credit risk is normally reduced to the extent that an exchange or clearing organization acts as a counterparty to futures transactions since typically the collective credit of the members of the exchange is pledged to support the financial integrity of the exchange. In the case of OTC transactions, the Partnership must rely solely on the credit of the individual counterparties. The contract amounts of the forward currency and futures contracts do not represent the Partnership’s risk of loss due to counterparty nonperformance. The Partnership’s exposure to credit risk associated with counterparty nonperformance of these forward currency contracts is limited to the unrealized gains inherent in such contracts, which are recognized in the Statements of Financial Condition, plus the value of margin or collateral held in cash and U.S. Treasury Notes by the counterparty. The amount of such credit risk was $9,139,654 and $15,616,290 at December 31, 2013 and 2012, respectively.

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The General Partner has established procedures to actively monitor market risk and minimize credit risk, although there can be no assurance that it will in fact succeed in doing so. The General Partner’s market risk control procedures include diversification of the Partnership’s portfolio and continuously monitoring the portfolio’s open positions, historical volatility and maximum historical loss. The General Partner seeks to minimize credit risk primarily by depositing and maintaining the Partnership’s assets at financial institutions and brokers which the General Partner believes to be creditworthy. The Partnership’s trading activities are primarily with brokers and other financial institutions located in North America, Europe and Asia. All futures transactions of the Partnership are cleared by major securities firms, pursuant to customer agreements, including Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. (a wholly owned subsidiary of Deutsche Bank AG), J.P. Morgan Securities LLC., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Newedge USA, LLC (a wholly owned subsidiary of Newedge Group which is owned by Société Générale (50%) and Calyon (50%)), collectively the “Futures Clearing Brokers.” The Partnership ceased clearing trades through Credit Suisse Securities (USA) LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Newedge USA, LLC during July 2013, June 2013 and September 2012, respectively. For all forward currency transactions, the Partnership utilizes three prime brokers, Barclays Bank PLC, Deutsche Bank AG and Morgan Stanley & Co., LLC, collectively the “FX Prime Brokers.”

The Partnership is subject to sovereign risk such as the risk of restrictions being imposed by foreign governments on the repatriation of cash and the effects of political or economic uncertainties. Net unrealized appreciation (depreciation) on futures and forward currency contracts are denominated in the Partnership’s functional currency (U.S. Dollar). Cash settlement of futures and forward currency contracts is made in the local currency (settlement currency) and then translated to U.S. Dollars.

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Net unrealized appreciation (depreciation) on futures and forward currency contracts by settlement currency type, denominated in U.S. Dollars, is detailed below:

	December 31,
	2013						2012
	Total Net						Total Net
	Unrealized						Unrealized
	Appreciation			Percent of			Appreciation			Percent of
Currency type	(Depreciation)			Total			(Depreciation)			Total
Australian dollar	$	237,593			8.14	%	$	(321,344	)		(20.70	)%
British pound		75,711			2.59			(87,811	)		(5.66	)
Canadian dollar		165,864			5.68			(10,071	)		(0.65	)
Czech koruna		(4,219	)		(0.15	)		45,308			2.92
Euro		731,360			25.05			932,881			60.10
Hong Kong dollar		125,970			4.31			73,435			4.73
Hungarian forint		6,931			0.24			(298,280	)		(19.22	)
Japanese yen		457,232			15.66			558,505			35.98
Korean won		86,754			2.97			4,325			0.28
Malaysian ringgit		13,169			0.45			-			-
Mexican peso		-			-			1,986			0.13
Norwegian krone		(14,366	)		(0.49	)		(4,125	)		(0.27	)
Polish zloty		39,628			1.36			106,236			6.85
Romanian leu		-			-			9,544			0.62
Singapore dollar		36,708			1.26			5,763			0.37
South African rand		165,131			5.66			(5,614	)		(0.36	)
Swedish krona		(33,359	)		(1.14	)		(62,523	)		(4.03	)
Swiss franc		-			-			(5,355	)		(0.35	)
Taiwan dollar		-			-			8,283			0.54
Thai baht		-			-			14,937			0.96
Turkish lira		240,052			8.22			(20,058	)		(1.29	)
U.S. dollar		589,401			20.19			606,137			39.05
Total	$	2,919,560			100.00	%	$	1,552,159			100.00	%

The Derivatives and Hedging topic of the Codification requires qualitative disclosure about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments and disclosures about credit-risk-related contingent features in derivative agreements.

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The Partnership’s market risk is influenced by a wide variety of factors including the level and volatility of interest rates, exchange rates, equity price levels, the market value of financial instruments and contracts, the diversification effects among the Partnership’s open positions and the liquidity of the markets in which it trades.

The Partnership engages in the speculative trading of futures and forward contracts on agricultural commodities, currencies, energies, interest rates, metals and stock indices. The following were the primary trading risk exposures of the Partnership at December 31, 2013 and 2012 by market sector:

Agricultural(grains, livestock and softs) — The Partnership’s primary exposure is to agricultural price movements which are often directly affected by severe or unexpected weather conditions as well as supply and demand factors.

Currencies — Exchange rate risk is a principal market exposure of the Partnership. The Partnership’s currency exposure is to exchange rate fluctuations, primarily fluctuations which disrupt the historical pricing relationships between different currencies and currency pairs. The fluctuations are influenced by interest rate changes as well as political and general economic conditions. The Partnership trades in a large number of currencies including cross-rates — e.g., positions between two currencies other than the U.S. dollar.

Energies — The Partnership’s primary energy market exposure is to gas and oil price movements often resulting from political developments in the Middle East and economic conditions worldwide. Energy prices are volatile and substantial profits and losses have been and are expected to continue to be experienced in this market.

Interest Rates — Interest rate movements directly affect the price of the sovereign bond futures positions held by the Partnership and indirectly the value of its stock index and currency positions. Interest rate movements in one country as well as relative interest rate movements between countries may materially impact the Partnership’s profitability. The Partnership’s primary interest rate exposure is to interest rate fluctuations in countries or regions including Australia, Canada, Japan, Switzerland, the United Kingdom, the U.S. and the Eurozone. However, the Partnership also may take positions in futures contracts on the government debt of other nations. The General Partner anticipates that interest rates in these industrialized countries, both long-term and short-term, will remain the primary interest rate market exposure of the Partnership for the foreseeable future.

Metals — The Partnership’s metals market exposure is to fluctuations in the price of aluminum, copper, gold, lead, nickel, palladium, platinum, silver, tin and zinc.

Stock Indices — The Partnership’s equity exposure, through stock index futures, is to equity price risk in the major industrialized countries as well as other countries.

The Derivatives and Hedging topic of the Codification requires entities to recognize in the Statements of Financial Condition all derivative contracts as assets or liabilities. Fair values of futures and forward currency contracts in a net asset position are recorded in the Statements of Financial Condition as “Net unrealized appreciation on open futures and forward currency contracts.” Fair value of futures and forward currency contracts in a liability position are recorded in the Statements of Financial Condition as “Net unrealized depreciation on open futures and forward currency contracts.” The Partnership’s policy regarding fair value measurement is discussed in Note 2.

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Since the derivatives held or sold by the Partnership are for speculative trading purposes, the derivative instruments are not designated as hedging instruments under the provisions of the Derivatives and Hedging guidance. Accordingly, all realized gains and losses, as well as any change in net unrealized gains or losses on open positions from the preceding period, are recognized as part of the Partnership’s trading gains and losses in the Statements of Operations.

The following tables present the fair value of open futures and forward currency contracts, held long or sold short, at December 31, 2013 and 2012. Fair value is presented on a gross basis even though the contracts are subject to master netting agreements and qualify for net presentation in the Statements of Financial Condition.

Fair Value of Futures and Forward Currency Contracts at December 31, 2013

											Net Unrealized
	Fair Value - Long Positions					Fair Value - Short Positions					Gain (Loss) on
Sector	Gains		Losses			Gains		Losses			Open Positions
Futures contracts:
Energies	$	156,261	$	(230,029	)	$	56,410	$	(119,378	)	$	(136,736	)
Grains		4,673		(345,640	)		283,023		(4,999	)		(62,943	)
Interest rates		148,106		(1,074,306	)		44,116		(92,969	)		(975,053	)
Livestock		22,330		(1,890	)		3,780		(10,030	)		14,190
Metals		1,644,571		(134,297	)		58,546		(580,051	)		988,769
Softs		5,479		(33,991	)		53,863		(12,135	)		13,216
Stock indices		3,010,177		(17,219	)		72,260		(9,600	)		3,055,618
Total futures contracts		4,991,597		(1,837,372	)		571,998		(829,162	)		2,897,061
Forward currency contracts		936,496		(1,042,664	)		371,418		(242,751	)		22,499
Total futures and forward currency contracts	$	5,928,093	$	(2,880,036	)	$	943,416	$	(1,071,913	)	$	2,919,560

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Fair Value of Futures and Forward Currency Contracts at December 31, 2012

											Net Unrealized
	Fair Value - Long Positions					Fair Value - Short Positions					Gain (Loss) on
Sector	Gains		Losses			Gains		Losses			Open Positions
Futures contracts:
Energies	$	783,955	$	(7,368	)	$	49,968	$	(970,606	)	$	(144,051	)
Grains		-		(120,475	)		74,045		(6,838	)		(53,268	)
Interest rates		1,159,021		(516,593	)		10,171		-			652,599
Livestock		-		-			480		(3,700	)		(3,220	)
Metals		91,984		(23,529	)		645		(274,882	)		(205,782	)
Softs		4,385		-			243,519		(53,884	)		194,020
Stock indices		1,064,657		(123,949	)		-		(33,060	)		907,648
Total futures contracts		3,104,002		(791,914	)		378,828		(1,342,970	)		1,347,946
Forward currency contracts		1,505,439		(1,782,268	)		1,788,055		(1,307,013	)		204,213
Total futures and forward currency contracts	$	4,609,441	$	(2,574,182	)	$	2,166,883	$	(2,649,983	)	$	1,552,159

The effect of trading futures and forward currency contracts is represented on the Statements of Operations for the years ended December 31, 2013 and 2012, as “Net realized gains (losses) on closed positions: Futures and forward currency contracts” and “Net change in unrealized: Futures and forward currency contracts.” These trading gains and losses are detailed below:

Sector	2013			2012
Futures contracts:
Energies	$	(3,222,271	)	$	(2,999,758	)
Grains		1,021,696			(1,953,245	)
Interest rates		(10,725,452	)		6,291,318
Livestock		4,340			(314,470	)
Metals		(1,102,965	)		(3,273,993	)
Softs		387,531			737,902
Stock indices		13,926,067			141,145
Total futures contracts		288,946			(1,371,101	)
Forward currency contracts		(5,446,536	)		(3,755,331	)
Total futures and forward currency contracts	$	(5,157,590	)	$	(5,126,432	)

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The following table presents the average notional value by sector of open futures and forward currency contracts in U.S. dollars for the years ended December 31, 2013 and 2012. The Partnership’s average net asset value during 2013 and 2012 was approximately $133,000,000 and $152,000,000, respectively.

	2013				2012
Sector	Long positions		Short positions		Long positions		Short positions
Futures contracts:
Energies	$	25,504,935	$	15,997,596	$	19,280,778	$	23,709,518
Grains		8,752,502		9,742,036		6,912,792		5,041,917
Interest rates		249,567,718		35,194,835		349,445,189		3,300,714
Livestock		1,459,638		2,619,588		-		1,578,968
Metals		12,584,635		12,188,975		6,518,015		11,379,690
Softs		3,090,433		5,968,367		914,667		6,957,297
Stock indices		136,385,750		1,430,570		54,739,807		15,331,947
Total futures contracts		437,345,611		83,141,967		437,811,248		67,300,051
Forward currency contracts		132,389,740		45,239,532		117,572,275		91,427,209
Total futures and forward currency contracts	$	569,735,351	$	128,381,499	$	555,383,523	$	158,727,260

Notional values in the interest rate sector were calculated by converting the notional value in local currency of all open interest rate futures positions to 10-year equivalent fixed income instruments, translated to U.S. Dollars at each quarter end during 2013 and 2012. The 10-year note is often used as a benchmark for many types of fixed-income instruments and the General Partner believes it is a more meaningful representation of notional values of the Partnership’s open interest rate positions.

The customer agreements between the Partnership, the Futures Clearing Brokers and the FX Prime Brokers gives the Partnership the legal right to net unrealized gains and losses on open futures and foreign currency contracts. The Partnership netted, for financial reporting purposes, the unrealized gains and losses on open futures and forward currency contracts on the Statements of Financial Condition as the criteria under ASC 210-20, “Balance Sheet,” were met.

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

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

Offsetting derivative assets and liabilities at December 31, 2013

Assets	Gross amounts of recognized assets		Gross amounts offset in the Statement of Financial Condition			Net amounts of assets presented in the Statement of Financial Condition
Futures contracts
Counterparty A	$	1,439,459	$	(509,651	)	$	929,808
Counterparty C		2,721,786		(1,302,169	)		1,419,617
Counterparty D		1,402,350		(854,714	)		547,636
Total futures contracts		5,563,595		(2,666,534	)		2,897,061
Forward currency contracts
Counterparty F		428,000		(277,225	)		150,775
Counterparty G		194,464		(107,368	)		87,096
Total forward currency contracts		622,464		(384,593	)		237,871
Total assets	$	6,186,059	$	(3,051,127	)	$	3,134,932

Liabilities	Gross amounts of recognized liabilities		Gross amounts offset in the Statement of Financial Condition			Net amounts of liabilities presented in the Statement of Financial Condition
Forward currency contracts
Counterparty H	$	900,822	$	(685,450	)	$	215,372
Total liabilities	$	900,822	$	(685,450	)	$	215,372

(Continued)

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			Amounts Not Offset in the Statement of Financial Condition
Counterparty	Net amounts of Assets presented in the Statement of Financial Condition		Financial Instruments		Collateral Received(1)(2)			Net Amount(3)(4)
Counterparty A	$	929,808	$	-	$	(929,808	)	$	-
Counterparty C		1,419,617		-		(1,419,617	)		-
Counterparty D		547,636		-		(547,636	)		-
Counterparty F		150,775		-		(150,775	)		-
Counterparty G		87,096		-		(87,096	)		-
Total	$	3,134,932	$	-	$	(3,134,932	)	$	-

			Amounts Not Offset in the Statement of Financial Condition
Counterparty	Net amounts of Liabilities presented in the Statement of Financial Condition		Financial Instruments		Collateral Pledged(1)(2)			Net Amount(3)(4)
Counterparty H	$	215,372	$	-	$	(215,372	)	$	-
Total	$	215,372	$	-	$	(215,372	)	$	-

⁽¹⁾ Collateral received and pledged includes both cash and U.S. Treasury notes held at each respective broker.

⁽²⁾ Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statement of Financial Condition, for each respective counterparty.

⁽³⁾ Net amount represents the amount that is subject to loss in the event of a counterparty failure as of December 31, 2013.

⁽⁴⁾ Net amount represents the amounts owed by the Partnership to each counterparty as of December 31,2013.

(Concluded)

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Offsetting derivative assets and liabilities at December 31, 2012

Assets	Gross amounts of recognized assets		Gross amounts offset in the Statement of Financial Condition			Net amounts of assets presented in the Statement of Financial Condition
Futures contracts
Counterparty A	$	469,664	$	(265,540	)	$	204,124
Counterparty B		1,826,503		(917,569	)		908,934
Counterparty D		454,227		(183,659	)		270,568
Counterparty E		403,519		(277,140	)		126,379
Total futures contracts		3,153,913		(1,643,908	)		1,510,005
Forward currency contracts
Counterparty F		1,407,165		(489,760	)		917,405
Counterparty G		104,142		(35,442	)		68,700
Total forward currency contracts		1,511,307		(525,202	)		986,105
Total assets	$	4,665,220	$	(2,169,110	)	$	2,496,110

Liabilities	Gross amounts of recognized liabilities		Gross amounts offset in the Statement of Financial Condition			Net amounts of liabilities presented in the Statement of Financial Condition
Futures contracts
Counterparty C	$	796,101	$	(634,042	)	$	162,059
Total futures contracts		796,101		(634,042	)		162,059
Forward currency contracts
Counterparty H		2,884,060		(2,102,168	)		781,892
Total forward currency contracts		2,884,060		(2,102,168	)		781,892
Total liabilities	$	3,680,161	$	(2,736,210	)	$	943,951

(Continued)

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			Amounts Not Offset in the Statement of Financial Condition
Counterparty	Net amounts of Assets presented in the Statement of Financial Condition		Financial Instruments		Collateral Received(1)(2)			Net Amount(3)(4)
Counterparty A	$	204,124	$	-	$	(204,124	)	$	-
Counterparty B		908,934		-		(908,934	)		-
Counterparty D		270,568		-		(270,568	)		-
Counterparty E		126,379		-		(126,379	)		-
Counterparty F		917,405		-		(917,405	)		-
Counterparty G		68,700		-		(68,700	)		-
Total	$	2,496,110	$	-	$	(2,496,110	)	$	-

			Amounts Not Offset in the Statement of Financial Condition
Counterparty	Net amounts of Liabilities presented in the Statement of Financial Condition		Financial Instruments		Collateral Pledged(1)(2)			Net Amount(3)(4)
Counterparty C	$	162,059	$	-	$	(162,059	)	$	-
Counterparty H		781,892		-		(781,892	)		-
Total	$	943,951	$	-	$	(943,951	)	$	-

⁽¹⁾ Collateral received and pledged includes both cash and U.S. Treasury notes held at each respective broker.

⁽²⁾ Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statement of Financial Condition, for each respective counterparty.

⁽³⁾ Net amount represents the amount that is subject to loss in the event of a counterparty failure as of December 31, 2012.

⁽⁴⁾ Net amount represents the amounts owed by the Partnership to each counterparty as of December 31,2012.

(Concluded)

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7. FINANCIAL HIGHLIGHTS

The ratios are calculated based on limited partners’ capital and special limited partners’ capital taken as a whole. The computation of such ratios based on the amount of expenses and profit share allocation assessed to an individual partner’s capital account may vary from these ratios based on the timing of capital transactions and differences in individual partner’s brokerage fees and profit share allocation arrangements.

Returns are calculated for limited partners and special limited partners taken as a whole. An individual partner’s returns may vary from these returns based on the timing of capital transactions and differences in individual partner’s brokerage fees and profit share allocation arrangements.

8. redemption payable to general partner

At December 31, 2013 and 2012, capital withdrawals payable of $748 and $3,968, respectively, was related to profit share allocated to the General Partner at each year-end and subsequently paid.

9. SUBSEQUENT EVENTS

During the period from January 1, 2014 to March 20, 2014, contributions of $480,000 were made to the Partnership and withdrawals of $2,773,855 were made from the Partnership.

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