FUTURES PORTFOLIO FUND L.P. - FORM 10-Q

Attached files

file	filename
EX-32.01 - FUTURES PORTFOLIO FUND L.P.	v193409_ex32-1.htm
EX-32.02 - FUTURES PORTFOLIO FUND L.P.	v193409_ex32-2.htm
EX-31.02 - FUTURES PORTFOLIO FUND L.P.	v193409_ex31-2.htm
EX-31.01 - FUTURES PORTFOLIO FUND L.P.	v193409_ex31-1.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2010

Commission file number: 000-50728

FUTURES PORTFOLIO FUND, LIMITED PARTNERSHIP


Organized in Maryland	IRS Employer Identification No.: 52-1627106

c/o Steben & Company, Inc.

2099 Gaither Road, Suite 200, Rockville, Maryland 20850

(240) 631-9808

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [ X ] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [ ] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company. See definition of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

[ ] Large accelerated filer [ ] Accelerated filer

[ X ] Non-accelerated filer [ ] Smaller Reporting Company

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [ ] No [ X ]

Part I: Financial Information

Item 1. Financial Statements

Futures Portfolio Fund, Limited Partnership

Statements of Financial Condition

June 30, 2010 (Unaudited) and December 31, 2009 (Audited)

	June 30, 2010			December 31, 2009
Assets
Equity in broker trading accounts
Cash	$	299,244,208		$	318,300,203
Net unrealized gain on open futures contracts		13,470,123			14,004,035
Net unrealized loss on open forward currency contracts		(3,906,273	)		(2,429,014	)
Interest receivable		25,982			13,642
Total equity in broker trading accounts		308,834,040			329,888,866
Cash and cash equivalents		326,712,360			671,220,632
Commercial paper, at fair value		110,713,376			--
Government sponsored enterprise notes, at fair value		216,247,229			107,514,649
U.S. Treasury securities, at fair value		239,841,644			--
General Partner 1% allocation receivable		408,937			639,856
Total assets	$	1,202,757,586		$	1,109,264,003

Liabilities and Partners’ Capital (Net Asset Value)
Liabilities
Trading Advisor management fees payable	$	1,886,338		$	2,363,509
Trading Advisor incentive fees payable		--			1,444,958
Commissions and other trading fees payable on open contracts		260,182			117,427
General Partner management fee payable		1,886,158			1,732,238
Selling Agent fees payable – General Partner		1,296,289			1,219,130
Administrative expenses payable – General Partner		1,869,743			1,736,156
Redemptions payable		5,373,883			5,857,719
Subscriptions received in advance		37,963,551			37,057,961
Total liabilities		50,536,144			51,529,098
Partners’ Capital (Net Asset Value)
Class A Interests – 162,395.1111 units and 147,452.0886 units
outstanding at June 30, 2010 and December 31, 2009, respectively		729,331,259			688,434,529
Class B Interests – 71,221.7548 units and 60,362.5545 units
outstanding at June 30, 2010 and December 31, 2009, respectively		422,890,183			369,300,376
Total partners' capital (net asset value)		1,152,221,442			1,057,734,905
Total liabilities and partners' capital (net asset value)	$	1,202,757,586		$	1,109,264,003

The accompanying notes are an integral part of these financial statements.

Futures Portfolio Fund, Limited Partnership

Condensed Schedule of Investments

June 30, 2010

(Unaudited)

			Description	Fair Value			% of Partners’ Capital (Net Asset Value)
U.S. Treasury Securities
Face Value		Maturity Date
$	40,000,000	7/29/10	U.S. Treasury Bill, 0.115%	$	39,996,422			3.47	%
	40,000,000	7/29/10	U.S. Treasury Bill, 0.115%		39,996,422			3.47	%
	40,000,000	10/21/10	U.S. Treasury Bill, 0.17%		39,978,844			3.47	%
	40,000,000	10/21/10	U.S. Treasury Bill, 0.17%		39,978,844			3.47	%
	40,000,000	1/13/11	U.S. Treasury Bill, 0.25%		39,945,556			3.47	%
	40,000,000	1/13/11	U.S. Treasury Bill, 0.25%		39,945,556			3.47	%
			Total U.S. Treasury securities (cost: $239,657,367)	$	239,841,644			20.82	%

Government Sponsored Enterprise Notes
Face Value		Maturity Date
$	75,000,000	7/26/10	Federal Home Loan Mortgage Corporation, 0.16%	$	74,991,334			6.51	%
	51,297,000	8/16/10	Federal National Mortgage Association, 0.20%		51,285,893			4.45	%
	50,000,000	8/23/10	Federal National Mortgage Association, 0.23%		49,983,069			4.34	%
	40,000,000	8/26/10	Federal Home Loan Mortgage Corporation, 0.21%		39,986,933			3.47	%
			Total government sponsored enterprise notes (cost: $216,118,262)	$	216,247,229			18.77	%

Commercial Paper
Face Value		Maturity Date
$	30,349,000	7/8/10	Societe Generale North America, 0.24%	$	30,347,584			2.63	%
	30,349,000	7/8/10	Societe Generale North America, 0.24%		30,347,584			2.63	%
	6,505,000	7/21/10	HSBC Finance Corp, 0.26%		6,504,060			0.56	%
	43,530,000	8/27/10	Nestle Capital Corporation, 0.23%		43,514,148			3.78	%
			Total commercial paper (cost: $110,649,827)	$	110,713,376			9.60	%

Long U.S. Futures Contracts
			Agricultural	$	182,922			0.02	%
			Currency		(475,293	)		(0.04	)%
			Energy		(4,701,202	)		(0.41	)%
			Interest rate (1)		18,270,944			1.59	%
			Metal (1)		(12,176,678	)		(1.06	)%
			Stock index		(3,457,247	)		(0.30	)%
			Net unrealized loss on open long U.S. futures contracts		(2,356,554	)		(0.20	)%

Short U.S. Futures Contracts
			Agricultural		(75,584	)		(0.01	)%
			Currency		(2,557,741	)		(0.22	)%
			Energy		394,616			0.03	%
			Interest rate		(142,962	)		(0.01	)%
			Metal (1)		11,820,720			1.03	%
			Single stock futures		43,576			0.00	%
			Stock index		238,362			0.02	%
			Net unrealized gain on open short U.S. futures contracts		9,720,987			0.84	%

(1) No individual futures or forward currency contract position constituted greater than one percent of partners’ capital (net asset value). Accordingly, the number of contracts and expiration dates are not presented.

The accompanying notes are an integral part of these financial statements.

Futures Portfolio Fund, Limited Partnership

Condensed Schedule of Investments (continued)

June 30, 2010

(Unaudited)

	Description	Fair Value			% of Partners’ Capital (Net Asset Value)

Long Foreign Futures Contracts
		$	61,243			0.01	%
	Agricultural		(1,550,017	)		(0.13	)%
	Currency		(70,849	)		(0.01	)%
	Energy		16,263,631			1.41	%
	Interest rate (1)		(19,211	)		(0.00	)%
	Metal		(7,360,697	)		(0.64	)%
	Stock index		7,324,100			0.64	%
	Net unrealized gain on open long foreign futures contracts

Short Foreign Futures Contracts
	Agricultural		93,369			0.01	%
	Currency		(2,462,968	)		(0.21	)%
	Energy		5,467			0.00	%
	Interest rate		(283,702	)		(0.02	)%
	Stock index		1,429,424			0.12	%
	Net unrealized loss on open short foreign futures contracts		(1,218,410	)		(0.10	)%

	Net unrealized gain on open futures contracts	$	13,470,123			1.18	%

U.S. Forward Currency Contracts
	Long	$	628,289			0.05	%
	Short		(2,281,967	)		(0.20	)%
	Net unrealized loss on open U.S. forward currency contracts		(1,653,678	)		(0.15	)%

Foreign Forward Currency Contracts
	Long		(2,017,893	)		(0.18	)%
	Short		(234,702	)		(0.02	)%
	Net unrealized loss on open foreign forward currency contracts		(2,252,595	)		(0.20	)%

	Net unrealized loss on open forward currency contracts	$	(3,906,273	)		(0.35	)%

The accompanying notes are an integral part of these financial statements.

Futures Portfolio Fund, Limited Partnership

Condensed Schedule of Investments

December 31, 2009

(Audited)

			Description	Fair Value			% of Partners’ Capital (Net Asset Value)

Government Sponsored Enterprise Notes
Face Value		Maturity Date
$	46,750,000	1/28/10	Federal Home Loan Mortgage Corporation, 0.96%	$	46,951,148			4.44	%
	60,000,000	3/30/10	Federal Home Loan Mortgage Corporation, 1.10%		60,563,501			5.73	%
			Total government sponsored enterprise notes (cost: $107,153,196)	$	107,514,649			10.17	%

Long U.S. Futures Contracts
			Agricultural	$	3,874,697			0.37	%
			Currency		(1,096,530	)		(0.10	)%
			Energy		2,282,440			0.22	%
			Interest rate		(4,285,126	)		(0.41	)%
			Metal		7,959,480			0.75	%
			Single stock futures		(7,756	)		(0.00	)%
			Stock index		2,911,194			0.28	%
			Net unrealized gain on open long U.S. futures contracts		11,638,399			1.11	%

Short U.S. Futures Contracts
			Agricultural		(135,790	)		(0.01	)%
			Currency		1,736,191			0.16	%
			Energy		(988,288	)		(0.09	)%
			Interest rate		2,012,021			0.19	%
			Metal		(4,574,662	)		(0.43	)%
			Stock index		23,900			0.00	%
			Net unrealized loss on open short U.S. futures contracts		(1,926,628	)		(0.18	)%

Long Foreign Futures Contracts
			Agricultural		585,309			0.06	%
			Currency		(50,076	)		(0.00	)%
			Energy		107,204			0.01	%
			Interest rate		(3,745,572	)		(0.35	)%
			Metal		565,795			0.05	%
			Stock index		6,313,742			0.60	%
			Net unrealized gain on open long foreign futures contracts		3,776,402			0.37	%

Short Foreign Futures Contracts
			Agricultural		(6,346	)		(0.00	)%
			Currency		345,604			0.03	%
			Energy		(58,775	)		(0.01	)%
			Interest rate		804,314			0.08	%
			Stock index		(568,935	)		(0.05	)%
			Net unrealized gain on open short foreign futures contracts		515,862			0.05	%

			Net unrealized gain on open futures contracts	$	14,004,035			1.35	%

No individual futures or forward currency contract position constituted greater than one percent of partners’ capital (net asset value). Accordingly, the number of contracts and expiration dates are not presented.

The accompanying notes are an integral part of these financial statements.

Futures Portfolio Fund, Limited Partnership

Condensed Schedule of Investments (continued)

December 31, 2009

(Audited)

	Description	Fair Value			% of Partners’ Capital (Net Asset Value)

U.S. Forward Currency Contracts
	Long	$	(2,056,023	)		(0.19	)%
	Short		351,945			0.03	%
	Net unrealized loss on open U.S. forward currency contracts		(1,704,078	)		(0.16	)%

Foreign Forward Currency Contracts
	Long		(224,594	)		(0.02	)%
	Short		(500,342	)		(0.05	)%
	Net unrealized loss on open foreign forward currency contracts		(724,936	)		(0.07	)%

	Net unrealized loss on open forward currency contracts	$	(2,429,014	)		(0.23	)%

The accompanying notes are an integral part of these financial statements.

Futures Portfolio Fund, Limited Partnership

Statements of Operations

For the Three and Six Months Ended June 30, 2010 and 2009

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2010			2009			2010			2009
Trading Loss
Net realized loss	$	(3,456,182	)	$	(22,393,243	)	$	(2,236,658	)	$	(4,840,987	)
Net change in unrealized gain (loss)		(46,740,230	)		6,996,514			(2,011,171	)		(21,141,711	)
Brokerage commissions and trading expenses		(900,360	)		(705,720	)		(1,751,306	)		(1,182,340	)
Net loss from trading		(51,096,772	)		(16,102,449	)		(5,999,135	)		(27,165,038	)

Net Investment Loss
Income
Interest income		665,493			1,093,089			1,018,089			3,492,144
Expenses
Trading Advisor management fees		4,309,347			3,595,655			8,372,645			7,035,550
Trading Advisor incentive fees		--			5,015,194			5,057,839			6,928,626
General Partner management fee		5,697,706			4,549,158			11,068,322			8,839,521
Selling Agent fees		3,931,596			3,194,804			7,687,282			6,221,526
General Partner 1% allocation		(662,879	)		(328,972	)		(408,937	)		(556,784	)
Administrative expenses – General Partner		2,477,224			2,228,467			4,944,591			4,306,779
Total expenses		15,752,994			18,254,306			36,721,742			32,775,218
Administrative expenses waived		(559,264	)		(695,429	)		(1,218,002	)		(1,326,493	)
Net total expenses		15,193,730			17,558,877			35,503,740			31,448,725
Net investment loss		(14,528,237	)		(16,465,788	)		(34,485,651	)		(27,956,581	)
Net Loss	$	(65,625,009	)	$	(32,568,237	)	$	(40,484,786	)	$	(55,121,619	)

	Three Months Ended June 30,
	2010						2009
	Class A			Class B			Class A			Class B
Decrease in net asset value per Unit	$	(264.90	)	$	(322.43	)	$	(173.46	)	$	(197.21	)

Net loss per Unit	$	(269.37	)	$	(332.42	)	$	(179.73	)	$	(204.41	)
(based on weighted average number of units outstanding)
Weighted average number of Units outstanding		159,053.7958			68,531.0660			123,063.8515			51,121.7376

	Six Months Ended June 30,
	2010						2009
	Class A			Class B			Class A			Class B
Decrease in net asset value per Unit	$	(177.78	)	$	(180.39	)	$	(304.31	)	$	(337.61	)

Net loss per Unit	$	(180.05	)	$	(189.75	)	$	(319.91	)	$	(356.78	)
(based on weighted average number of units outstanding)
Weighted average number of Units outstanding		155,541.9382			65,766.3357			117,913.0566			48,771.0448

The accompanying notes are an integral part of these financial statements.

Futures Portfolio Fund, Limited Partnership

Statements of Cash Flows

For the Six Months Ended June 30, 2010 and 2009

(Unaudited)

	2010			2009
Cash flows from operating activities
Net loss	$	(40,484,786	)	$	(55,121,619	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Net change in unrealized loss		2,011,171			21,141,711
Changes in
Interest receivable		(12,340	)		(1,765	)
Commercial paper		(110,713,376	)		90,607,044
Government sponsored enterprise notes		(108,732,580	)		(32,193,634	)
U.S. Treasury securities		(239,841,644	)		(2,971,798	)
Corporate notes		--			50,626,878
General Partner 1% allocation receivable/payable		230,919			(2,436,121	)
Trading Advisor management fees payable		(477,171	)		120,232
Trading Advisor incentive fees payable		(1,444,958	)		(13,756,410	)
Commissions and other trading fees payable on open contracts		142,755			38,874
General Partner management fee payable		153,920			169,510
Selling Agent fees payable – General Partner		77,159			111,858
Administrative expenses payable – General Partner		133,587			202,485
Net cash provided by (used in) operating activities		(498,957,344	)		56,537,245

Cash flows from financing activities
Subscriptions		143,116,201			180,220,376
Subscriptions received in advance		37,963,551			27,465,012
Redemptions		(45,686,675	)		(50,494,870	)
Net cash provided by financing activities		135,393,077			157,190,518

Net increase (decrease) in cash and cash equivalents		(363,564,267	)		213,727,763
Cash and cash equivalents, beginning of period		989,520,835			505,006,123
Cash and cash equivalents, end of period	$	625,956,568		$	718,733,886

End of period cash and cash equivalents consists of
Cash in broker trading accounts	$	299,244,208		$	204,556,444
Cash and cash equivalents		326,712,360			514,177,442
Total end of period cash and cash equivalents	$	625,956,568		$	718,733,886

Supplemental disclosure of cash flow information
Prior period redemptions paid	$	5,857,719		$	10,448,411
Prior period subscriptions received in advance	$	37,057,961		$	29,937,275

Supplemental schedule of non-cash financing activities
Redemptions payable	$	5,373,883		$	8,077,083

The accompanying notes are an integral part of these financial statements.

Futures Portfolio Fund, Limited Partnership

Statements of Changes in Partners’ Capital (Net Asset Value)

For the Six Months Ended June 30, 2010 and 2009

(Unaudited)

	Class A Interests						Class B Interests
	Units			Amount			Units			Amount			Total
Six Months Ended June 30, 2010
Balance at December 31, 2009		147,452.0886		$	688,434,529			60,362.5545		$	369,300,376		$	1,057,734,905
Net loss					(28,005,482	)					(12,479,304	)		(40,484,786	)
Subscriptions		20,887.8927			96,305,048			13,811.7408			83,869,114			180,174,162
Redemptions		(5,545.4301	)		(25,535,908	)		(3,255.8522	)		(19,666,931	)		(45,202,839	)
Transfers		(399.4401	)		(1,866,928	)		303.3117			1,866,928			--
Balance at June 30, 2010		162,395.1111		$	729,331,259			71,221.7548		$	422,890,183		$	1,152,221,442

Six Months Ended June 30, 2009
Balance at December 31, 2008		108,989.0639		$	547,011,351			44,268.0740		$	285,973,913		$	832,985,264
Net loss					(37,721,105	)					(17,400,514	)		(55,121,619	)
Subscriptions		26,696.2301			131,564,699			12,349.9410			78,592,952			210,157,651
Redemptions		(5,295.0228	)		(25,919,326	)		(3,513.2932	)		(22,204,216	)		(48,123,542	)
Transfers		(1,229.0048	)		(5,985,064	)		950.0817			5,985,064			--
Balance at June 30, 2009		129,161.2664		$	608,950,555			54,054.8035		$	330,947,199		$	939,897,754

Net Asset Value per Unit


	Class A		Class B
June 30, 2010	$	4,491.09	$	5,937.65
December 31, 2009		4,668.87		6,118.04
June 30, 2009		4,714.65		6,122.44
December 31, 2008		5,018.96		6,460.05

The accompanying notes are an integral part of these financial statements.

Futures Portfolio Fund, Limited Partnership

Notes to Financial Statements

(Unaudited)

1.	Organization and Summary of Significant Accounting Policies

Description of the Fund

Futures Portfolio Fund, Limited Partnership (“Fund”) is a Maryland limited partnership, which operates as a commodity investment pool, that commenced trading operations on January 2, 1990. The Fund issues units of limited partner interests (“Units”) in two classes, Class A and Class B, which represent units of fractional undivided beneficial interest in and ownership of the Fund. The Fund will automatically terminate on December 31, 2025, unless terminated earlier as provided in the Third Amended and Restated Limited Partnership Agreement (“Partnership Agreement”).

The Fund uses commodity trading advisors to engage in the speculative trading of futures contracts, forward currency contracts and other financial instruments traded in the United States (“U.S.”) and internationally.

The Fund is a registrant with the U.S. Securities and Exchange Commission (“SEC”) pursuant to the U.S. Securities Exchange Act of 1934, as amended (“1934 Act”). As a registrant, the Fund is subject to the regulations of the SEC and the disclosure requirements of the 1934 Act. As a commodity pool, the Fund is subject to the regulations of the U.S. Commodity Futures Trading Commission (“CFTC”), an agency of the U.S. Government, which regulates most aspects of the commodity futures industry; rules of the National Futures Association (“NFA”), an industry self-regulatory organization; rules of Financial Industry Regulatory Authority (“FINRA”), an industry self-regulatory organization; and the requirements of commodity exchanges where the Fund executes transactions. Additionally, the Fund is subject to the requirements of the futures broker and interbank market makers through which the fund trades.

Steben & Company, Inc. (“General Partner”), is the general partner of the Fund and a Maryland corporation registered with the CFTC as a commodity pool operator and a commodities introducing broker, and is also registered with the SEC as a registered investment advisor and a broker dealer. The General Partner is a member of the NFA and FINRA. The General Partner manages all aspects of the Fund’s business and serves as one of the Fund’s selling agents.

Significant Accounting Policies

Financial Accounting Standards Board Accounting Standards Codification

The Fund follows accounting standards established by the Financial Accounting Standards Board (“FASB”) to ensure consistent reporting of financial condition, results of operation and cash flows in conformity with accounting principles generally accepted in the U.S. The accounting standards are embodied in the FASB Accounting Standards Codification, which became effective for periods ending on or after September 15, 2009.

Use of Estimates

Preparing financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Revenue Recognition

Futures, options on futures, forward currency contracts and swap contracts are recorded on a trade date basis, and gains or losses are realized when contracts are liquidated. Unrealized gains and losses on open contracts (the difference between contract trade price and fair value) are reported in the statements of financial condition as net unrealized gain or loss, as there exists a right of offset of any unrealized gains or losses. Any change in net unrealized gain or loss from the preceding period is reported in the statements of operations. Interest income earned on investments in commercial paper, corporate notes, U.S. Treasury securities, government sponsored enterprise notes and other cash and cash equivalent balances is recorded on an accrual basis.

Fair Value of Financial Instruments

Financial instruments are carried at fair value, the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Assets and liabilities carried at fair value are classified and disclosed in the following categories:

Level 1 –

Fair value is based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical instruments. Financial instruments utilizing Level 1 inputs include exchange-traded derivatives, U.S. Treasury securities and money market funds.

Level 2 –

Fair value is based on quoted prices for similar instruments in active markets and inputs other than quoted prices that are observable for the financial instrument, such as interest rates and yield curves that are observable at commonly quoted intervals using a market approach. Financial instruments utilizing Level 2 inputs include forward currency contracts and government sponsored enterprise notes.

Level 3 –

Fair value is based on valuation techniques in which one or more significant inputs are unobservable. The Fund has no financial instruments utilizing Level 3 inputs.

U.S. Treasury securities are recorded at amortized cost, which approximates fair value based on bid and ask quotes for identical instruments. Commercial paper, government sponsored enterprise notes and corporate notes are recorded at amortized cost, which approximates fair value based on bid and ask quotes for similar, but not identical, instruments. Accordingly, U.S. Treasury securities are classified within Level 1 and commercial paper, government sponsored enterprise notes and corporate notes are classified within Level 2.

The investments in money market funds, included in cash and cash equivalents in the statements of financial condition, and futures contracts, all of which are exchange-traded, are valued using quoted market prices for identical assets and are classified within Level 1. The fair values of forward currency contracts are based upon third-party quoted dealer values on the interbank market and are classified within Level 2.

Derivative Instruments

Effective January 1, 2009, the Fund adopted new guidance issued by FASB regarding derivatives and hedging. The Fund’s derivative contracts are comprised of futures and forward currency contracts. These derivative contracts are recorded in the statements of financial condition as assets measured at fair value and the related realized and change in unrealized gain or loss associated with these derivatives is recorded in the statements of operations. The Fund has considered the counterparty credit risk related to all its futures and forward currency contracts and does not deem any counterparty credit risk material at this time. The Fund does not designate any derivative instruments as hedging instruments.

Cash and Cash Equivalents

Cash and cash equivalents include highly liquid investments with original maturities of three months or less at the date of acquisition that are not held for sale in the normal course of business. The Fund maintains cash and cash equivalents balances at Newedge USA, LLC and Newedge Group (U.K. Branch) (collectively “NUSA”), UBS Financial Services, Inc. and UBS A.G. (collectively “UBS”) and Bank of America and Banc of America Securities, LLC (collectively “Bank of America”). At June 30, 2010, cash and cash equivalents balances held at NUSA, UBS and Bank of America were $278,456,136, $70,790,551 and $276,709,881, respectively. The Fund is at risk to the extent that it maintains balances with financial institutions in excess of insured limits; however, the Fund does not believe it is exposed to any significant credit risk.

Brokerage Commissions and Trading Expenses

Brokerage commissions and trading expenses include brokerage and other trading fees, and are charged to expense when contracts are opened and closed.

Redemptions Payable

Redemptions payable represent redemptions that meet the requirements of the Fund and have been approved by the General Partner prior to period-end. These redemptions have been recorded using the period-end net asset value per Unit.

Income Taxes

The Fund prepares calendar year U.S. and applicable state and local tax returns. The Fund is not subject to federal income taxes as each partner is individually liable for his or her allocable share of the Fund’s income, expenses and trading gains or losses. The Fund evaluates the tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are more-likely-than-not to be sustained when examined by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense and liability in the current year. Management has determined there are no material uncertain income tax positions through June 30, 2010. With few exceptions, the Fund is no longer subject to U.S. federal, or state and local income tax examinations by tax authorities for years before 2006.

Foreign Currency Transactions

The Fund has certain investments denominated in foreign currencies. The purchase and sale of investments and income and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss on such investments.

Reclassification

Certain amounts in the 2009 financial statements have been reclassified to conform to the 2010 presentation without affecting previously reported partners’ capital (net asset value).

Subsequent Events

The Fund has evaluated subsequent events for potential recognition and/or disclosure through the date the financial statements were issued.

2.	Fair Value Disclosures

The Fund’s assets and liabilities, measured at fair value on a recurring basis, are summarized in the following tables by the type of inputs applicable to the fair value measurements:

At June 30, 2010
	Level 1		Level 2			Total
Equity in broker trading accounts:
Net unrealized gain on open futures contracts	$	13,470,123	$	--		$	13,470,123
Net unrealized loss on open forward currency contracts		--		(3,906,273	)		(3,906,273	)
Cash and cash equivalents:
Money market funds		50,002,479		--			50,002,479
Commercial paper		--		110,713,376			110,713,376
Government sponsored enterprise notes		--		216,247,229			216,247,229
U.S. Treasury securities		239,841,644		--			239,841,644
Total	$	303,314,246	$	323,054,332		$	626,368,578

At December 31, 2009
	Level 1		Level 2			Total
Equity in broker trading accounts:
Net unrealized gain on open futures contracts	$	14,004,035	$	--		$	14,004,035
Net unrealized loss on open forward currency contracts		--		(2,429,014	)		(2,429,014	)
Cash and cash equivalents:
Money market funds		633,081,225		--			633,081,225
Government sponsored enterprise notes		--		107,514,649			107,514,649
Total	$	647,085,260	$	105,085,635		$	752,170,895

There were no Level 3 holdings at June 30, 2010 and December 31, 2009, or during the periods then ended.

In addition to the financial instruments listed above, substantially all of the Fund’s other assets and liabilities are considered financial instruments and are reflected at fair value, or at carrying amounts that approximate fair value because of the short maturity of the instruments.

3.	Derivative Instruments Disclosures

At June 30, 2010, the Fund’s derivative contracts had the following impact on the statements of financial condition:

	Derivative Assets and Liabilities, at fair value
Statements of Financial Condition Location	Assets		Liabilities			Net
Net unrealized gain on open futures contracts
Agricultural	$	2,640,903	$	(2,378,953	)	$	261,950
Currency		2,144,760		(9,190,779	)		(7,046,019	)
Energy		1,106,429		(5,478,397	)		(4,371,968	)
Interest rate		35,364,932		(1,257,021	)		34,107,911
Metal		16,810,900		(17,186,069	)		(375,169	)
Single stock futures		43,576		--			43,576
Stock index		1,774,031		(10,924,189	)		(9,150,158	)
Net unrealized gain on open futures contracts	$	59,885,531	$	(46,415,408	)	$	13,470,123

Net unrealized loss on open forward currency contracts	$	2,750,864	$	(6,657,137	)	$	(3,906,273	)

At June 30, 2010, there were 65,009 open futures contracts and 1,459 open forward currency contracts.

For the three and six months ended June 30, 2010, the Fund’s derivative contracts had the following impact on the statements of operations:

	Three Months Ended June 30, 2010						Six Months Ended June 30, 2010
Types of Exposure	Net realized loss			Net change in unrealized gain (loss)			Net realized loss			Net change in unrealized gain (loss)
Futures contracts
Agricultural	$	(2,235,394	)	$	(5,742,096	)	$	(6,424,063	)	$	(4,055,920	)
Currency		7,243,837			(11,401,357	)		15,867,253			(7,981,208	)
Energy		(27,261,693	)		(20,747,460	)		(43,682,580	)		(5,714,549	)
Interest rate		65,567,728			16,938,906			78,178,802			39,322,274
Metal		(1,371,893	)		(4,669,655	)		(6,090,176	)		(4,325,782	)
Single stock futures		(150,672	)		64,690			(14,971	)		51,332
Stock index		(43,716,314	)		(18,100,470	)		(40,408,059	)		(17,830,059	)
Total futures contracts		(1,924,401	)		(43,657,442	)		(2,573,794	)		(533,912	)

Forward currency contracts		(842,030	)		(3,082,788	)		719,183			(1,477,259	)

Total futures and forward currency contracts	$	(2,766,431	)	$	(46,740,230	)	$	(1,854,611	)	$	(2,011,171	)

For the three and six months ended June 30, 2010, the number of futures contracts closed was 183,705 and 365,522, respectively, and the number of forward currency contracts closed was 9,727 and 19,646, respectively.

At December 31, 2009, the Fund’s derivative contracts had the following impact on the statements of financial condition:

	Derivative Assets and Liabilities, at fair value
Statements of Financial Condition Location	Assets		Liabilities			Net
Net unrealized gain on open futures contracts
Agricultural	$	5,392,510	$	(1,074,640	)	$	4,317,870
Currency		4,398,977		(3,463,788	)		935,189
Energy		3,830,525		(2,487,944	)		1,342,581
Interest rate		8,760,428		(13,974,791	)		(5,214,363	)
Metal		13,545,225		(9,594,612	)		3,950,613
Single stock futures		--		(7,756	)		(7,756	)
Stock index		9,898,985		(1,219,084	)		8,679,901
Net unrealized gain on open futures contracts	$	45,826,650	$	(31,822,615	)	$	14,004,035

Net unrealized loss on open forward currency contracts	$	3,001,447	$	(5,430,461	)	$	(2,429,014	)

At December 31, 2009, there were 58,336 open futures contracts and 1,237 open forward currency contracts.

For the three and six months ended June 30, 2009, the Fund’s derivative contracts had the following impact on the statements of operations:

	Three Months Ended June 30, 2009						Six Months Ended June 30, 2009
Types of Exposure	Net realized loss			Net change in unrealized gain (loss)			Net realized loss			Net change in unrealized gain (loss)
Futures contracts
Agricultural	$	(578,644	)	$	4,869,758		$	(1,742,717	)	$	1,567,285
Currency		1,596,414			2,282,522			(4,840,578	)		1,225,161
Energy		(7,247,249	)		3,445,102			(2,534,802	)		1,980,567
Interest rate		(19,410,041	)		(10,802,382	)		(10,221,912	)		(17,095,986	)
Metal		(4,765,233	)		(2,566,029	)		1,687,441			(11,265,739	)
Single stock futures		100,082			(148	)		100,082			(148	)
Stock index		21,540,171			1,290,494			26,820,777			786,264
Total futures contracts		(8,764,500	)		(1,480,683	)		9,268,291			(22,802,596	)

Forward currency contracts		(13,665,889	)		8,477,197			(13,683,708	)		1,660,885

Total futures and forward currency contracts	$	(22,430,389	)	$	6,996,514		$	(4,415,417	)	$	(21,141,711	)

For the three and six months ended June 30, 2009, the number of futures contracts closed was 132,754 and 231,748, respectively, and the number of forward currency contracts closed was 9,603 and 15,872, respectively.

4.	General Partner

At June 30, 2010 and December 31, 2009, and for the periods then ended, the General Partner did not maintain a capital balance in the Fund; however, the beneficiary of the sole shareholder of the General Partner had an investment of 30.9315 Class B Units. At June 30, 2010 and December 31, 2009, this investment was valued at $183,661 and $189,240, respectively.

The General Partner earns the following compensation:

§	General Partner Management Fee – the Fund incurs a monthly fee on Class A and Class B Units equal to 1/12th of 1.95% of the month-end net asset value of the Class A and Class B Units, payable in arrears.

Selling Agent Fees – the Class A Units incur a monthly fee equal to 1/12th of 2% of the month-end net asset value of the Class A Units and such amounts are included in Selling Agent fees – General Partner in the statements of operations. The General Partner, in turn, pays the selling agent fee to the respective selling agents. If there is no designated selling agent or the General Partner was the selling agent, such portions of the selling agent fee are retained by the General Partner.

Broker Dealer Servicing Fees – the Class B Units incur a monthly fee equal to 1/12th of 0.20% of the month-end net asset value of the Class B Units and such amounts are included in Selling Agent fees – General Partner in the statements of operations. The General Partner, in turn, pays the fee to the respective selling agents. If there is no designated selling agent or the General Partner was the selling agent, such portions of the broker dealer servicing fee are retained by the General Partner.

Pursuant to the terms of the Partnership Agreement, the General Partner receives from the Fund one percent of any increase in the Fund’s net asset value. Conversely, the General Partner pays to the Fund one percent of any decrease in the Fund’s net asset value. Such amounts are reflected as General Partner 1% allocation receivable or payable in the statements of financial condition and as General Partner 1% allocation in the statements of operations.

5.	Trading Advisors

The Fund has advisory agreements with various commodity trading advisors, pursuant to which the Fund incurs a monthly advisor management fee that ranges from 0% to 1/12th of 2% of allocated net assets (as defined in each respective advisory agreement), paid monthly or quarterly in arrears. Additionally, the Fund incurs advisor incentive fees, paid quarterly in arrears, ranging from 20% to 30% of net new trading profits (as defined in each respective advisory agreement).

6.	Deposits with Brokers

To meet margin requirements, the Fund deposits funds with brokers, subject to CFTC regulations and various exchange and broker requirements. The Fund earns interest income on its assets deposited with brokers. At June 30, 2010 and December 31, 2009, the Fund had margin requirements of $105,523,898 and $132,093,486, respectively.

7.	Administrative Expenses

The Fund reimburses the General Partner for actual monthly administrative expenses paid to various third-party service providers, including the General Partner, up to 1/12th of 0.65% of the Fund’s month-end net asset value, payable in arrears. Administrative expenses include accounting, audit, legal, salary and administrative costs incurred by the General Partner relating to marketing and administration of the Fund; such as, salaries and commissions of General Partner marketing personnel, administrative employee salaries and related costs. Pursuant to the terms of the Partnership Agreement, administrative expenses that exceed 1% of the average month-end net asset value of the Fund are the responsibility of the General Partner.

For the three months ended June 30, 2010 and 2009, actual administrative expenses were $2,477,224 and $2,228,467, respectively, which were below the 1% administrative expense limitation. For the six months ended June 30, 2010 and 2009, actual administrative expenses were $4,944,591 and $4,306,779, respectively, which were also below the 1% administrative expense limitation.

Additionally, during the three months ended June 30, 2010 and 2009, the General Partner voluntarily waived $559,264 and $695,429, respectively, of administrative expenses of the Fund. During the six months ended June 30, 2010 and 2009, the General Partner voluntarily waived $1,218,002 and $1,326,493, respectively, of administrative expenses. Such amounts are included in Administrative expenses waived in the statements of operations.

At June 30, 2010 and December 31, 2009, $1,869,743 and $1,736,156, respectively, were payable to the General Partner for administrative expenses incurred on behalf of the Fund and not waived by the General Partner. Such amounts are presented as Administrative expenses payable – General Partner in the statements of financial condition.

8.	Subscriptions, Distributions and Redemptions

Investments in the Fund are made by subscription agreement and must be received within five business days of the end of the month, subject to acceptance by the General Partner. The minimum investment is $10,000. Units are sold at the net asset value per Class A or Class B Unit as of the close of business on the last day of the month in which the subscription is accepted. Investors whose subscriptions are accepted are admitted as limited partners as of the beginning of the month following the month in which their subscriptions were accepted. At June 30, 2010 and December 31, 2009, the Fund received advance subscriptions of $37,963,551 and $37,057,961, respectively, which were recognized as subscriptions to the Fund or returned, if applicable, subsequent to period-end.

The Fund is not required to make distributions, but may do so at the sole discretion of the General Partner. A limited partner may request and receive redemption of Class A or Class B Units owned at the end of any month, subject to five business days’ prior written notice to the General Partner, and in certain circumstances, restrictions in the Partnership Agreement.

The General Partner may require a limited partner to redeem from the Fund if the General Partner deems the redemption (a) necessary to prevent or correct the occurrence of a nonexempt prohibited transaction under the Employee Retirement Income Security Act of 1974, as amended, or the Internal Revenue Code of 1986, as amended, (b) beneficial to the Fund, or (c) necessary to comply with applicable government or other self-regulatory organization regulations.

9.	Trading Activities and Related Risks

The Fund engages in the speculative trading of futures, swaps, options and over-the-counter contracts, including forward currency contracts traded in the U.S. and internationally. Trading in derivatives exposes the Fund to both market risk, the risk arising from a change in the fair value of a contract, and credit risk, the risk of failure by another party to perform according to the terms of a contract.

Purchase and sale of futures contracts requires margin deposits with the futures brokers. Additional deposits may be necessary for any loss on contract value. The Commodity Exchange Act (“CEAct”) requires a broker to segregate all customer transactions and assets from such broker’s proprietary activities. A customer’s cash and other property (for example, U.S. Treasury securities) deposited with a broker are considered commingled with all other customer funds subject to the broker’s segregation requirements. In the event of a broker’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 (or none of) the total cash and other property deposited. The Fund uses Newedge USA, LLC as its futures broker (“futures broker”) and Newedge Group (U.K. Branch) and UBG A.G. as its forward currency counterparties (“forward currency counterparties”).

For futures contracts, risks arise from changes in the fair value of the contracts. Theoretically, the Fund is exposed to a market risk equal to the value of futures and forward currency contracts purchased, and unlimited liability on such contracts sold short.

In addition to market risk, upon entering into commodity interest contracts there is a credit risk that a counterparty will not be able to meet its obligations to the Fund. The counterparty for futures and options on futures contracts traded in the U.S. and on most non-U.S. futures exchanges is the clearinghouse associated with such exchanges. In general, clearinghouses are backed by the corporate members of the clearinghouse who are required to share any financial burden resulting from the nonperformance by one of their members and, as such, should significantly reduce this credit risk. In cases where the clearinghouse is not backed by the clearing members, like some non-U.S. exchanges, it is normally backed by a consortium of banks or other financial institutions.

In the case of forward currency 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. While the Fund trades only with those counterparties that it believes to be creditworthy, there can be no assurance that any clearing member, clearinghouse or other counterparty will be able to meet its obligations to the Fund.

The Fund trades forward currency contracts in unregulated markets between principals and assumes the risk of loss from counterparty nonperformance. Accordingly, the risks associated with forward currency contracts are generally greater than those associated with exchange-traded contracts because of the greater risk of counterparty default. Additionally, the trading of forward currency contracts typically involves delayed cash settlement.

The Fund has a portion of its assets on deposit with interbank market makers and other financial institutions in connection with its trading of forward currency contracts and its cash management activities. In the event of an interbank market maker’s or financial institution’s insolvency, recovery of Fund assets on deposit may be limited to account insurance or other protection afforded such deposits.

The Fund uses UBS and Banc of America Securities, LLC as its cash management securities brokers (“cash management securities brokers”) for the investment of some excess margin amounts into short-term fixed income instruments including commercial paper, corporate notes, U.S. Treasury securities and government sponsored enterprise notes with maturities no longer than one year. Fluctuations in prevailing interest rates could cause immaterial marked-to-market losses on the Fund’s U.S. Treasury securities and other fixed income instruments, although substantially all of the short-term investments are held to maturity.

The net unrealized gain or loss on open futures and forward currency contracts is comprised of the following:

	Futures Contracts (exchange-traded)						Forward Currency Contracts (non-exchange-traded)
	June 30, 2010			December 31, 2009			June 30, 2010			December 31, 2009

Gross unrealized gains	$	59,885,531		$	45,826,650		$	2,750,864		$	3,001,447

Gross unrealized losses		(46,415,408	)		(31,822,615	)		(6,657,137	)		(5,430,461	)

Net unrealized gain (loss)	$	13,470,123		$	14,004,035		$	(3,906,273	)	$	(2,429,014	)

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 limited partners bear the risk of loss only to the extent of the fair value of their respective investments and, in specific circumstances, distributions and redemptions received.

10.	Indemnifications

In the normal course of business, the Fund may enter into contracts and agreements that contain a variety of representations and warranties and which provide general indemnifications. The Fund’s maximum exposure under these arrangements cannot be estimated. However, the Fund believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statements for such indemnifications.

11.	Interim Financial Statements

The statements of financial condition, including the condensed schedule of investments, at June 30, 2010, the statements of operations for the three and six months ended June 30, 2010 and 2009, the statements of cash flows and changes in partners’ capital (net asset value) for the six months ended June 30, 2010 and 2009 and the accompanying notes to the financial statements are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the U.S. 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 to present fairly the financial position at June 30, 2010, results of operations for the three and six months ended June 30, 2010 and 2009, cash flows and changes in partners’ capital (net asset value) for the six months ended June 30, 2010 and 2009. The results of operations for the three and six months ended June 30, 2010 and 2009 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 SEC.

12.	Financial Highlights

The following information presents per Unit operating performance data and other ratios for the three and six months ended June 30, 2010 and 2009, assuming the Unit was outstanding throughout the entire period:

	Three Months Ended June 30, 2010						Three Months Ended June 30, 2009
	Class A			Class B			Class A			Class B
Per Unit Operating Performance
Net asset value per Unit at beginning of period	$	4,755.99		$	6,260.08		$	4,888.11		$	6,319.65
Loss from operations
Loss from trading (1)		(199.19	)		(262.94	)		(78.90	)		(102.76	)
Net investment loss (1)		(65.71	)		(59.49	)		(94.56	)		(94.45	)
Total loss from operations		(264.90	)		(322.43	)		(173.46	)		(197.21	)
Net asset value per Unit at end of period	$	4,491.09		$	5,937.65		$	4,714.65		$	6,122.44

Total return (5)		(5.57	)%		(5.15	)%		(3.55	)%		(3.12	)%

Other Financial Ratios
Ratios to average net asset value
Expenses prior to Trading Advisor incentive fees and General Partner 1% allocation (2) (3) (4)		6.12	%		4.33	%		6.29	%		4.46	%
Trading Advisor incentive fees (5)		--			--			0.55	%		0.55	%
General Partner 1% allocation (5)		(0.06	)%		(0.05	)%		(0.04	)%		(0.03	)%
Total expenses		6.06	%		4.28	%		6.80	%		4.98	%

Net investment loss (2) (3) (4) (6)		(5.89	)%		(4.10	)%		(5.81	)%		(3.98	)%

	Six Months Ended June 30, 2010						Six Months Ended June 30, 2009
	Class A			Class B			Class A			Class B
Per Unit Operating Performance
Net asset value per Unit at beginning of period	$	4,668.87		$	6,118.04		$	5,018.96		$	6,460.05
Loss from operations
Loss from trading (1)		(20.53	)		(27.92	)		(134.44	)		(175.09	)
Net investment loss (1)		(157.25	)		(152.47	)		(169.87	)		(162.52	)
Total loss from operations		(177.78	)		(180.39	)		(304.31	)		(337.61	)
Net asset value per Unit at end of period	$	4,491.09		$	5,937.65		$	4,714.65		$	6,122.44

Total return (5)		(3.81	)%		(2.95	)%		(6.06	)%		(5.23	)%

Other Financial Ratios
Ratios to average net asset value
Expenses prior to Trading Advisor incentive fees and General Partner 1% allocation (2) (3) (4)		6.18	%		4.37	%		6.29	%		4.46	%
Trading Advisor incentive fees (5)		0.45	%		0.45	%		0.78	%		0.78	%
General Partner 1% allocation (5)		(0.04	)%		(0.03	)%		(0.07	)%		(0.06	)%
Total expenses		6.59	%		4.79	%		7.00	%		5.18	%

Net investment loss (2) (3) (4) (6)		(6.00	)%		(4.19	)%		(5.50	)%		(3.67	)%

Total returns are calculated based on the change in value of a Class A or Class B Unit during the period. An individual partner’s total returns and ratios may vary from the above total returns and ratios based on the timing of subscriptions and redemptions.

(1) The net investment loss per Unit is calculated by dividing the net investment loss by the average number of Class A or Class B Units outstanding during the period. Loss from trading is a balancing amount necessary to reconcile the change in net asset value per Unit with the other per Unit information. Such balancing amount may differ from the calculation of loss from trading per Unit due to the timing of trading gains and losses during the period relative to the number of Units outstanding.

(2) All of the ratios under the supplemental data are computed net of voluntary and involuntary waivers of administrative expenses. For the three months ended June 30, 2010 and 2009 the ratios are net of 0.19% and 0.31%, respectively, and for the six months ended June 30, 2010 and 2009 the ratios are net of 0.22% and 0.30%, respectively, of average net asset value relating to the waivers of administrative expenses. Both the nature and the amounts of the waivers are more fully explained in Note 7.

(3) The net investment loss includes interest income and excludes realized and unrealized gain (loss) from trading activities as shown in the statements of operations. The total amount is then reduced by all expenses, excluding brokerage commissions, which are included in net trading loss in the statements of operations. The resulting amount is divided by the average net asset value for the period.

(4) Ratios have been annualized.

(5) Ratios have not been annualized.

(6) Ratio excludes Trading Advisor incentive fees and General Partner 1% allocation.

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

Introduction

Using professional trading advisors, the Fund engages in the speculative trading of futures contracts, forward currency contacts and other financial instruments traded in the U.S. and internationally. The Fund primarily trades futures contracts within six major market sectors: stock indices, currencies, interest rate instruments, energy products, metals and agricultural commodities.

Liquidity

Most U.S. commodity exchanges limit fluctuations in futures contracts prices during a single day by regulations referred to as daily price fluctuation limits or daily limits. During a single trading day, no trades may be executed at prices beyond the daily limit. Once the price of a futures contract has reached the daily limit for that day, positions in that contract can neither be taken nor liquidated. Futures prices have occasionally moved the daily limit for several consecutive days with little or no trading. Similar occurrences could prevent the Fund from promptly liquidating unfavorable positions and subject the Fund to substantial losses which could exceed the margin initially committed to such trades. Additionally, even if futures prices have not moved the daily limit, the Fund may not be able to execute futures trades at favorable prices if little trading in such contracts is taking place. Other than these limitations on liquidity, which are inherent in the Fund’s futures trading operations, the Fund’s assets are expected to be highly liquid.

Redemptions may be made by a limited partner as of the last business day of any month at the net asset value on such redemption date of the redeemed Units (or portion thereof) on that date, on five business days’ prior written notice to the General Partner. Partial redemptions must be for at least $1,000, unless such requirement is waived by the General Partner. In addition, the limited partner, if making a partial redemption, must maintain at least $10,000 or his original investment amount, whichever is less, in the Fund unless such requirement is waived by the General Partner.

At June 30, 2010, illiquidity has not materially affected the Fund’s assets. There are no known material trends, demands, commitments, events, or uncertainties at the present time that are reasonably likely to result in the Fund’s liquidity increasing or decreasing in any material way.

Capital Resources

The Fund intends to raise additional capital only through the sale of Units, and does not intend to raise any capital through borrowing. Due to the nature of the Fund’s business, the Fund does not contemplate making capital expenditures. The Fund does not have, nor does it expect to have, any capital assets. Redemptions, exchanges and sales of Units in the future will affect the amount of funds available for investments in futures contracts, forward currency contracts and other financial instruments in subsequent periods. It is not possible to estimate the amount, and therefore the impact, of future capital inflows and outflows related to the sale and redemption of Units. There are no known material trends, favorable or unfavorable, that would affect, nor any expected material changes to, the Fund’s capital resource arrangements at the present time.

Results of Operations

The returns for Class A and B Units for the six months ended June 30, 2010 and 2009 were as follows:

Class of Units	2010	2009
Class A	(3.81)%	(6.06)%
Class B	(2.95)%	(5.23)%

Past performance is not necessarily indicative of future results. Further analysis of the trading gains and losses is provided below.

2010

January

A Units of the Fund were down 4.56% for the month of January and B Units were down 4.42%. The Fund ended the month lower as losses from global equity indices, energy, metals and currencies offset profits from interest rate instruments and agricultural commodities. The Fund’s most significant losses came from global equity indices. The sector reversed from an upward trend that began in March of 2009. The stock market experienced a sharp sell-off after investors reacted to the growing concern of weaker global economic growth and the decision by the U.S. government to limit speculative trading by banks. This price reversal went against the Fund’s long positions, which generated losses. China announced it was taking steps to limit bank lending in order to moderate its own growth. The news pushed commodity prices lower, especially in energy and industrial metals. The lower prices went against the Fund’s long positions in those sectors. Interest rate instrument prices were higher this month, which helped recover some of the losses the sector generated in last month’s trading.

February

A Units of the Fund were up 1.63% for the month of February and B Units were up 1.78%. The Fund posted positive gains in February as profits from interest rate instruments and currencies outweighed losses from agricultural commodities and energies. The most significant gains came from short-term interest rate instrument prices, which trended higher following news of the Greek debt crisis. This news also placed downward pressure on foreign currencies, especially the EU euro and British pound. The rise in interest rate instrument prices benefited the Funds’ long positions in that sector, while falling European currencies generated profits for the Fund’s short foreign currency positions. In agricultural commodities, declining prices went against the Fund’s long positions, including sugar, corn and soybeans.

March

A Units of the Fund were up 5.02% for the month of March and B Units were up 5.18%. The Fund finished higher this month with profits in five of the six major market sectors. The Fund’s most significant gains came from equity indices where prices continued to trend higher. Many of the global indices, including the S&P 500, reached their highest level since the third quarter of 2008. Although equity prices experienced a brief reversal between late January and early February, the Fund’s systematic trading systems maintained long positions and profited from the upward trend that resumed during late February and March. In the energy sector, natural gas resumed a strong downward trend that benefited the Fund’s short natural gas positions, while crude oil prices climbed which benefited the Fund’s long oil positions. In the metals sector, the base metals including nickel, copper, aluminum and zinc all profited on rising prices.

April

A Units of the Fund were up 1.48% for the month of April and B Units were up 1.63%. The Fund finished higher this month as profits in energy, interest rate instruments and currencies offset losses in agricultural commodities, equity indices and metals. The most significant gains came from the energy sector. Oil prices continued to rise, which benefited the Fund’s long positions, while the Fund’s short positions in natural gas realized profits as prices trended lower. Rating agencies lowered credit ratings on sovereign debt for Greece, Portugal and Spain. In a flight to safety, US treasury prices and the US dollar rallied while European currencies and debt instrument prices fell, generating profits for the Fund in each of those markets. US equity markets continued to trend higher, but profits from those markets were offset by losses from long positions in foreign equity indices.

May

A Units of the Fund were down 6.38% for the month of May and B Units were down 6.25%. While disappointing, this wasn’t a surprise given the sharp turnaround in the global stock and bond markets caused by the sovereign debt crisis in Europe. Losses in energy and equity indices offset gains in interest rate instruments and metals. Long positions in the energy sector were responsible for the most significant losses as commodity prices fell on heightened concerns over the European debt crisis. US Treasury instrument prices trended higher, while stock indices and energy prices fell in an apparent flight to safety. While the increase in the price of interest rate instruments was profitable for the Fund’s long positions, the sharp reversals in both energy and equities went against established upward trends in those markets, which generated losses. Base metal prices also reversed course, which resulted in a loss. Those losses, however, were tempered by gains in the Fund’s long positions in gold, aluminum and zinc.

June

A Units of the Fund were down 0.60% for the month of June and B Units were down 0.45%. The Fund finished lower this month as profits in interest rate instruments were offset by losses in equity indices, currencies, and commodities. The Fund’s most significant gains came from long positions in the interest rate instrument sector as concerns over the sovereign debt crisis in Europe and slow economic growth in the US continued to dominate market sentiment. US Treasury yields and short-term interest rates fell, which also generated strong profits in the sector. Global indices continued to drift lower which went against the Fund’s long positions. Over the past several weeks, the Fund’s long equity index positions have been systematically reduced in response to the market downturn. In currencies, a sudden rise in the Euro and British Pound went against the Fund’s short positions generating losses.

2009

January

A Units of the Fund were up 0.61% for the month of January 2009 and B Units were up 0.76%. January ended with the Fund realizing profits in five out of nine market sectors. In contrast to the trends of the last few months, many of the markets traded by the Fund were directionless. General optimism after the Obama transition along with government intervention into the world’s financial markets seemed to dampen the steady declines in equity prices experienced in recent quarters. The energy sector was profitable, driven by gains from crude oil and natural gas, whose prices continued to decline on slowing demand and rising inventory levels. Similarly, industrial metals such as aluminum, nickel and zinc also declined due to inventory build-ups, benefiting the Fund’s short positions. In foreign currencies, the U.S. dollar strengthened as risk adverse investors continued to seek the perceived safety of the U.S. currency. Interest rate instruments edged lower during the month which went against the Fund’s long bond positions.

February

A Units of the Fund were down 0.11% for the month of February 2009 and B Units were up 0.04%.The Fund ended the month essentially flat as most markets continued to trade within relatively narrow price ranges. Global equity markets continued to decline amid further weak economic data and a deepening recession. This decline benefited the Fund’s short positions in equity indices. The energy sector finished with modest profits from short positions in natural gas and heating oil. Agricultural commodities were profitable, despite some losses from a sharp reversal in cocoa markets. Foreign currencies experienced losses this month due to the weakening of the Japanese yen relative to the U.S. dollar. The yen had risen approximately 30% between August 2008 and the start of February and then changed direction against the U.S. dollar and other major currencies.

March

A Units of the Fund were down 3.09% for the month of March 2009 and B Units were down 2.95%. During March prices moved against established trends and the Fund’s positions. After equity markets reached a new 12 year low, markets reversed and showed some signs of recovery. The rising equity indices, including the S&P 500, DAX and Nikkei 225 Index, moved against the Fund’s short positions, resulting in losses for the Fund. The U.S. dollar fell sharply following the U.S. Treasury Department’s announcement that it planned to repurchase toxic assets, in an effort to help stimulate bank lending. Most foreign currencies strengthened against the U.S. dollar moving against the Fund’s short foreign currency positions. In the interest rate instrument markets, prices settled higher adding some profit to the Fund’s long positions in that sector.

April

A Units of the Fund were down 1.94% for the month of April 2009 and B Units were down 1.79%. The Fund finished lower in April as most markets continued to move within narrow trading ranges without exhibiting any significant trends. One exception was in the energy sector where natural gas prices continued in a downward trend generating profits for the Fund’s short positions. A rally in global equities that began in March continued through April. The rising equity prices generated profits for the Fund’s long positions in this sector which helped to offset losses from other sectors. The Fund’s biggest losses came from interest rate instruments, where prices in medium to long term bonds fell, which went against the Fund’s long positions. Industrial metals prices rose toward the end of the month, with aluminum and nickel moving against the Fund’s short positions creating some losses. Agricultural commodities ended flat for the month.

May

A Units of the Fund were up 1.41% for the month of May 2009 and B Units were up 1.56%. The Fund finished higher this month as profits realized from equity indices, foreign currencies, interest rate instruments, metals and agricultural commodities offset losses incurred in the energy sector. The Fund’s largest profits came from long positions in equity indices which continued to trend higher during the month. The most significant losses derived from the energy sector, which saw sharp price movements in natural gas that went against the Fund’s short positions. The Fund’s long positions in crude oil generated profits that helped reduce losses experienced from natural gas contracts. Interest rate instruments were mixed as rising prices on short term interest rate instruments were profitable, while a sell-off in longer term fixed income markets went against the Fund’s long positions. Profits in foreign currencies came from the Fund’s long positions in the Australian dollar, Swiss franc and South African rand.

June

A Units of the Fund were down 3.01% for the month of June 2009 and B Units were down 2.87%. The Fund finished lower in June as gains in equity indices, energies, foreign currencies and agricultural commodities were offset by losses from interest rate instruments and metals. The most significant losses occurred in the Fund’s short-term interest rate positions, where prices reversed from previous longer term trends. A sharp sell-off in Eurodollar, short sterling and euribor contracts was fueled by speculation that global central banks may begin to increase short-term interest rates to counteract potential inflationary pressures. The sudden drop in interest rate instrument prices went against the Fund’s long positions. Also in interest rates, weaker than expected forecasts for Japan’s economy sent Japanese government bond (JGB) prices higher, which was a reversal from the price trend in that market. The higher prices generated losses in the Fund’s short JGB positions. Commodity markets rallied during the month which benefited the Fund’s long positions in agricultural commodities, but resulted in losses for short positions in the metals sector. Long positions in the energies were profitable as oil prices made new highs for the year.

Off-Balance Sheet Risk

The term off-balance sheet risk refers to an unrecorded potential liability that, even though it does not appear on the balance sheet, may result in future obligation or loss. The Fund trades in futures and forward currency contracts, and is therefore a party to financial instruments with elements of off-balance sheet market and credit risk. In entering into these contracts, there exists a risk to the Fund, market risk, that such contracts may be significantly influenced by market conditions, such as interest rate volatility, resulting in such contracts being less valuable. If the markets should move against all of the futures interests positions of the Fund at the same time, and if the commodity trading advisors were unable to offset futures interest positions of the Fund, the Fund could lose all of its assets and the limited partners would realize a 100% loss. The General Partner minimizes market risk through diversification of the portfolio allocations to multiple trading advisors, and maintenance of a margin-to-equity ratio that rarely exceeds 30%.

In addition to market risk, upon entering into futures and forward contracts there is a risk that the counterparty will not be able to meet its obligations to the Fund. The counterparty for futures contracts traded in the U.S. and on most non-U.S. exchanges is the clearinghouse associated with such exchange. In general, clearinghouses are backed by the corporate members of the clearinghouse who are required to share any financial burden resulting from the non-performance by one of their members and, as such, should significantly reduce this risk. In cases where the clearinghouse is not backed by the clearing members, like some non-U.S. exchanges, it is normally backed by a consortium of banks or other financial institutions.

In the case of forward currency contracts, which are traded on the interbank market rather than on exchanges, the counterparty is generally a single bank or other financial institution, rather than a group of financial institutions; thus there may be a greater counterparty risk. The General Partner uses only those counterparties that it believes to be creditworthy for the Fund. All positions of the Fund 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 Fund.

The Fund uses U.S. Treasury securities, government sponsored enterprise notes, corporate notes and investment grade commercial paper with maturities of less than one year. Investment grade commercial paper is an unsecured, short-term debt instrument issued by a corporation with maturities rarely longer than 270 days. Commercial paper is not usually backed by any form of collateral, so only firms with high-quality debt rating will be used. As commercial paper is not backed by the full faith and credit of the U.S. government, if the issuing corporation defaults on their obligations to the Fund, the Fund bears the risk of loss of the amount expected to be received.

Significant Accounting Estimates

Management believes that the application of the accounting policy for the fair value of financial instruments, which is significant to the Fund’s financial position and results of operations, requires judgments and estimates on the part of management. A summary of all of the Fund’s significant accounting policies are included in Note 1 to the Financial Statements.

The Fund’s financial instruments are carried at fair value. In determining fair value, management uses inputs that are observable in active or inactive markets for identical or similar instruments. The Fund’s investments in money market funds are valued based on published closing prices for identical instruments. Similarly, the fair value of exchange-traded futures contracts are based on exchange settlement prices.

In the absence of an active market closing price, estimates are involved in determining fair value. The Fund’s cash management securities brokers, futures broker and forward currency counterparties use third-party pricing services to value investments that do not trade on active markets. These third-party pricing services use a market approach which uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Introduction

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

Market movements result in frequent changes in the fair market value of the Fund's open positions and, consequently, in its earnings and cash flow. The Fund's market risk is influenced by a wide variety of factors, including the level and volatility of exchange rates, interest rates, equity price levels, the market value of financial instruments and contracts, the diversification effects among the Fund's open positions and the liquidity of the markets in which it trades.

The Fund rapidly acquires and liquidates both long and short positions in a wide range of different markets. Consequently, it is not possible to predict how a particular future market scenario will affect performance, and the Fund's past performance cannot be relied on as indicative of its future results.

Standard of Materiality

Materiality as used in this section, Quantitative and Qualitative Disclosures about Market Risk, is based on an assessment of reasonably possible market movements and the potential losses caused by such movements, taking into account the leverage, and multiplier features of the Fund's market sensitive instruments.

Quantifying the Fund’s Trading Value at Risk

The following quantitative disclosures regarding the Fund's market risk exposures contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. All quantitative disclosures in this section are deemed to be forward-looking statements for purposes of the safe harbor, except for statements of historical fact.

Value at Risk is a measure of the maximum amount which the Fund could reasonably be expected to lose in a given market sector. However, the inherent uncertainty of the Fund's speculative trading and the recurrence in the markets traded by the Fund to market movements far exceeding expectations could result in actual trading or non-trading losses far beyond the indicated Value at Risk or the Fund's experience to date (i.e., "risk of ruin"). Risk of ruin is defined to be no more than a 5% chance of losing 20% or more on a monthly basis. In light of the foregoing as well as the risks and uncertainties intrinsic to all future projections, the inclusion of the quantification included in this section should not be considered to constitute any assurance or representation that the Fund's losses in any market sector will be limited to Value at Risk or by the Fund's attempts to manage its market risk.

The Fund's risk exposure in the various market sectors traded by the Fund’s Trading Advisors is quantified below in terms of Value at Risk. Due to mark-to-market accounting, any loss in the fair value of the Fund's open positions is directly reflected in the Fund's earnings.

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

In the case of market sensitive instruments that are not exchange-traded (includes currencies, certain energy products and metals), the margin requirements required by the forward counterparty is used as Value at Risk.

In quantifying the Fund's Value at Risk, 100% positive correlation in the different positions held in each market risk category has been assumed. Consequently, the margin requirements applicable to the open contracts have simply been aggregated to determine each trading category's aggregate Value at Risk. The diversification effects resulting from the fact that the Fund's positions are rarely, if ever, 100% positively correlated, have not been reflected.

Value at Risk as calculated herein may not be comparable to similarly titled measures used by others.

The Fund’s Trading Value at Risk in Different Market Sectors

The following table indicates the trading Value at Risk associated with the Fund's open positions by market sector at June 30, 2010 and December 31, 2009. All open position trading risk exposures of the Fund have been included in calculating the figures set forth below.

	June 30, 2010					December 31, 2009
Market Sector	Value at Risk		% of Total Capitalization			Value at Risk		% of Total Capitalization

Agricultural	$	9,902,085		0.86	%	$	9,643,002		0.91	%
Currency		26,479,897		2.30			31,050,237		2.94
Energy		9,837,806		0.85			12,344,514		1.17
Interest rate		40,382,613		3.50			33,136,438		3.13
Metal		12,492,752		1.08			14,626,587		1.38
Single stock futures		41,820		0.00			47,348		0.00
Stock index		21,250,817		1.84			47,762,176		4.52
Total	$	120,387,790		10.43	%	$	148,610,302		14.05	%

Material Limitations on Value at Risk as an Assessment of Market Risk.

The face value of the market sector instruments held by the Fund is typically many times the applicable margin requirement (margin requirements generally range between 1% and 10% of contract face value) as well as many times the capitalization of the Fund. The magnitude of the Fund's open positions creates a "risk of ruin" not typically found in most other investment vehicles. Because of the size of its positions, certain market conditions - unusual, but historically recurring from time to time - could cause the Fund to incur severe losses over a short period of time. The foregoing Value at Risk table – as well as the past performance of the Fund – gives no indication of this "risk of ruin."

Non-Trading Risk

The Fund has non-trading market risk on its foreign cash balances not needed for margin. However, these balances (as well as the market risk they represent) are immaterial. The Fund also has non-trading market risk as a result of investing a substantial portion of its available assets in government sponsored enterprise notes and commercial paper. The market risk represented by these investments is immaterial.

Qualitative Disclosures Regarding Primary Trading Risk Exposures.

The following qualitative disclosures regarding the Fund's market risk exposures - except for those disclosures that are statements of historical fact and the descriptions of how the Fund manages its primary market risk exposures - constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, (“1933 Act”) and Section 21E of the Securities Exchange Act of 1934, (“1934 Act”).

The Fund's primary market risk exposures as well as the strategies used and to be used by the Fund’s Trading Advisors for managing such exposures are subject to numerous uncertainties, contingencies and risks, any one of which could cause the actual results of the Fund's risk controls to differ materially from the objectives of such strategies. Government interventions, defaults and expropriations, illiquid markets, the emergence of dominant fundamental factors, political upheavals, changes in historical price relationships, an influx of new market participants, increased regulation and many other factors could result in material losses as well as in material changes to the risk exposures and the risk management strategies of the Fund. There can be no assurance that the Fund's current market exposure and/or risk management strategies will not change materially or that any such strategies will be effective in either the short- or long-term. Investors must be prepared to lose all or substantially all of their investment in the Fund.

The following were the primary trading risk exposures of the Fund as of June 30, 2010, by market sector.

Agricultural

The Fund’s primary agricultural exposure is due to price movements in agricultural commodities, which are often directly affected by severe or unexpected weather conditions as well as other factors. The Fund's agricultural exposure is primarily to cotton, coffee, cocoa, rubber, corn, soybeans and wheat.

Currency

The Fund's currency risk exposure is due to exchange rate fluctuations, primarily fluctuations which disrupt the historical pricing relationships between different currencies and currency pairs. These fluctuations are influenced by interest rate changes as well as political and general economic conditions. The Fund trades various currencies, including cross-rates (i.e., positions between two currencies other than the U.S. dollar). The General Partner does not anticipate that the risk profile of the Fund's currency sector will change significantly in the future.

Energy

The Fund's primary energy market exposure is due to gas and oil price movements, often resulting from political developments, ongoing conflicts or production disruptions in the Middle East and other oil producing nations. Crude oil, heating oil and unleaded gas are the dominant energy market exposures of the Fund. Oil and gas prices can be volatile and substantial profits and losses have been and are expected to continue to be experienced in this market.

Interest Rate

Interest rate risk is a significant market exposure of the Fund. Interest rate movements directly affect the price of the sovereign bond futures positions held by the Fund 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 materially impact the Fund's profitability. The Fund's primary interest rate exposure is to interest rate fluctuations in the U.S., Japan, Great Britain, the European Economic Union, Sweden, Canada, Australia and New Zealand. The General Partner anticipates that interest rates fluctuations will remain the primary market exposure of the Fund for the foreseeable future.

Metal

The Fund's metals market exposure is primarily due to fluctuations in the price of aluminum, copper, gold, silver, nickel, platinum, lead and zinc.

Single Stock Futures

The Fund has a very small exposure to Single Stock Futures (“SSF”). The Fund’s SSF exposure is primarily due to adverse price movements in the underlying stock.

Stock Index

The Fund's primary equity exposure is due to equity price risk in many countries other than the U.S. Additionally, the Fund bears the risk that static markets would not cause major market changes but would make it difficult for the Fund to avoid being "whipsawed" into numerous small losses. The stock index futures traded by the Fund are limited to futures on broadly based indices. The Fund is primarily exposed to the risk of adverse price trends or static markets in the major U.S., European, Hong Kong and Japanese indices.

Qualitative Disclosures Regarding Non-Trading Risk Exposure

The following were the only non-trading risk exposures of the Fund as of June 30, 2010.

Foreign Currency Balances

The Fund's primary foreign currency balances are in EU euros, Japanese yen, British pounds, Australian dollars, Hong Kong dollars and Canadian dollars. The Fund controls the non-trading risk of these balances by regularly converting these balances back into dollars (no less frequently than once a week).

U.S. Treasury Securities, Government Sponsored Enterprise Notes, Commercial Paper and Corporate Notes

Monies in excess of margin requirements may be invested in short-term fixed income instruments, including U.S. Treasury securities, government sponsored enterprise notes, commercial paper and corporate notes with durations of less than one year. Violent fluctuations in prevailing interest rates could cause immaterial mark-to-market losses on the Fund's short term investments; although substantially all of these short term investments are held to maturity.

Qualitative Disclosures Regarding Means of Managing Risk Exposure

The means by which the Fund and the Fund’s trading advisors, severally, attempt to manage the risk of the Fund's open positions is essentially the same in all market sectors traded. The Fund’s trading advisors apply risk management policies to their respective trading which generally limit the total exposure that may be taken. In addition, the trading advisors generally follow proprietary diversification guidelines (often formulated in terms of the balanced volatility between markets and correlated groups).

The Fund is unaware of any (i) anticipated known demands, commitments or capital expenditures, (ii) material trends, favorable or unfavorable, in its capital resources, or (iii) trends or uncertainties that will have a material effect on operations. From time to time, certain regulatory agencies have proposed increased margin requirements on futures contracts. Since the Fund generally use a small percentage of assets as margin, the Fund does not believe that any increase in margin requirements, as proposed, will have a material effect on the Fund's operations.

Item 4: Controls and Procedures

The General Partner of the Fund, with the participation of the Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of the Fund’s disclosure controls and procedures at June 30, 2010 (the “Evaluation Date”). Based on their evaluation, the Chief Executive Officer and Chief Financial Officer of the General Partner concluded that, as of the Evaluation Date, the Fund’s disclosure controls and procedures were effective.

There has been no change in internal control over financial reporting that occurred during the six months ended June 30, 2010 that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

Part II: Other Information

Item 1. Legal Proceedings.

None

Item 1A. Risk Factors.

There have been no material changes from the risk factors disclosed in the Fund’s Form 10-K for the year ended December 31, 2009.

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

There were no sales of unregistered securities of the Fund during the six months ended June 30, 2010. Under the Partnership Agreement, limited partners may redeem their Units at the end of each calendar month at the then current month-end net asset value per Unit. Redemptions of Units during the three months ended June 30, 2010 were as follows:

	April		May		June		Total
A Units
Units redeemed		1,088.5162		1,156.5311		724.5997		2,969.6470
Average net asset value per Unit	$	4,826.36	$	4,518.30	$	4,491.09	$	4,624.58

B Units
Units redeemed		358.8170		581.4895		356.9826		1,297.2891
Average net asset value per Unit	$	6,362.17	$	5,964.76	$	5,937.65	$	6,067.22

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Reserved

Item 5. Other Information

None.

Item 6. Exhibits

The following exhibits are filed herewith and incorporated by reference.

Exhibit No.	Description of Exhibit
1.1 *	Form of Selling Agreement
3.1 *	Maryland Certificate of Limited Partnership
4.1 *	Limited Partnership Agreement

10.1 *	Form of Subscription Agreement
31.01	Certification of Chief Executive Officer of the General Partner in accordance with Section 302 of the Sarbanes-Oxley Act of 2002
31.02	Certification of Chief Financial Officer of the General Partner in accordance with Section 302 of the Sarbanes-Oxley Act of 2002
32.01	Certification of Chief Executive Officer of the General Partner in accordance with Section 906 of the Sarbanes-Oxley Act of 2002
32.02	Certification of Chief Financial Officer of the General Partner in accordance with Section 906 of the Sarbanes-Oxley Act of 2002

* Filed with the Registrant’s Form 10, filed on April 29, 2004, and incorporated herein by reference.

SIGNATURES

Pursuant to the requirements of the U.S. Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: August 12, 2010	FUTURES PORTFOLIO FUND, LIMITED PARTNERSHIP

	By:	Steben & Company, Inc.
		General Partner

	By:	/s/ Kenneth E. Steben
	Name:	Kenneth E. Steben
	Title:	President, Chief Executive Officer and Director of the General Partner (Principal Executive Officer)

	By:	/s/ Carl A. Serger
	Name:	Carl A. Serger
	Title:	Chief Financial Officer and Director of the General Partner (Principal Financial and Accounting Officer)

FUTURES PORTFOLIO FUND L.P. Reports

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