SENECA GLOBAL FUND, L.P. - FORM 10-Q

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EXCEL - IDEA: XBRL DOCUMENT - SENECA GLOBAL FUND, L.P.	Financial_Report.xls
EX-32.01 - CERTIFICATION OF CHIEF EXECUTIVE OFFICER - SENECA GLOBAL FUND, L.P.	ex32-01.htm
EX-31.01 - CERTIFICATION OF CHIEF EXECUTIVE OFFICER - SENECA GLOBAL FUND, L.P.	ex31-01.htm
EX-31.02 - CERTIFICATION OF CHIEF FINANCIAL OFFICER - SENECA GLOBAL FUND, L.P.	ex31-02.htm
EX-32.02 - CERTIFICATION OF CHIEF FINANCIAL OFFICER - SENECA GLOBAL FUND, L.P.	ex32-02.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, 2014

Commission file number: 000-53453

SENECA GLOBAL FUND, L.P.

Organized in Delaware

IRS Employer Identification No.: 75-3236572

c/o Steben & Company, Inc.

9711 Washingtonian Blvd., Suite 400

Gaithersburg, Maryland 20878

(240) 631-7600

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 ☒ 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	☐
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 ☒

Part I: Financial Information

Item 1. Financial Statements

Seneca Global Fund, L.P.

Statements of Financial Condition

June 30, 2014 (Unaudited) and December 31, 2013 (Audited)

	June 30, 2014		December 31, 2013
Assets
Equity in broker trading accounts
Cash	$	8,084,690	$	10,049,111
Net unrealized gain on open futures contracts		510,863		1,166,626
Net unrealized gain on open forward currency contracts		7,876		5,443
Total equity in broker trading accounts		8,603,429		11,221,180
Cash and cash equivalents		3,342,367		5,265,305
Investments in securities, at fair value		15,739,866		18,124,799
Certificates of deposit, at fair value		—		250,730
Total assets	$	27,685,662	$	34,862,014

Liabilities and Partners’ Capital (Net Asset Value)
Liabilities
Trading Advisor management fee payable	$	32,045	$	70,628
Trading Advisor incentive fees payable		71,219		112,352
Commissions and other trading fees payable on open contracts		4,220		4,923
Cash Manager fees payable		7,833		5,769
General Partner fee payable		33,398		41,389
Selling Agent fees payable – General Partner		17,384		19,416
Administrative expenses payable – General Partner		21,490		26,737
Offering expenses payable – General Partner		15,297		19,163
Broker dealer custodial fee payable – General Partner		2,224		2,977
Broker dealer servicing fee payable – General Partner		1,813		2,081
Redemptions payable		345,441		934,506
Subscriptions received in advance		5,068		62,372
Total liabilities		557,432		1,302,313
Partners’ Capital (Net Asset Value)
General Partner Units – 7,460.6309 units outstanding at
June 30, 2014 and December 31, 2013		775,725		794,660
Series A Units – 152,831.1989 and 164,417.4673 units outstanding
at June 30, 2014 and December 31, 2013, respectively		10,373,716		11,687,076
Series B Units – 68,259.3744 and 86,507.9830 units outstanding
at June 30, 2014 and December 31, 2013, respectively		5,362,302		7,060,706
Series C Units – 24,775.2756 and 27,732.4319 units outstanding
at June 30, 2014 and December 31, 2013, respectively		2,187,362		2,526,789
Series I Units – 91,269.1444 and 120,105.4790 units outstanding
at June 30, 2014 and December 31, 2013, respectively		8,429,125		11,490,470
Total partners’ capital (net asset value)		27,128,230		33,559,701
Total liabilities and partners’ capital (net asset value)	$	27,685,662	$	34,862,014

Seneca Global Fund, L.P.

Condensed Schedule of Investments

June 30, 2014

(Unaudited)

			Description			Fair Value		% of Partners' Capital (Net Asset Value)
INVESTMENTS IN SECURITIES
U.S. Treasury Securities
	Face Value	Maturity Date	Name	Yield¹
$	250,000	7/15/14	U.S. Treasury Note	0.63	%	$	250,759		0.92	%
	500,000	7/31/14	U.S. Treasury Note	2.63	%		506,529		1.87	%
	250,000	8/31/14	U.S. Treasury Note	2.38	%		252,932		0.93	%
	400,000	9/15/14	U.S. Treasury Note	0.25	%		400,434		1.48	%
	1,000,000	9/30/14	U.S. Treasury Note	0.25	%		1,001,097		3.69	%
	400,000	10/15/14	U.S. Treasury Note	0.50	%		400,921		1.48	%
	700,000	11/30/14	U.S. Treasury Note	2.13	%		707,196		2.61	%
	40,000	12/15/14	U.S. Treasury Note	0.25	%		40,036		0.15	%
	600,000	12/31/14	U.S. Treasury Note	0.13	%		600,119		2.21	%
	1,250,000	1/31/15	U.S. Treasury Note	0.25	%		1,252,525		4.61	%
	700,000	3/31/15	U.S. Treasury Note	2.50	%		717,005		2.64	%
	600,000	4/30/15	U.S. Treasury Note	0.13	%		600,243		2.21	%
	750,000	5/31/15	U.S. Treasury Note	0.25	%		751,096		2.77	%
	500,000	3/15/16	U.S. Treasury Note	0.38	%		500,824		1.85	%
Total U.S. Treasury securities (cost: $8,005,217)							7,981,716		29.42	%

U.S. Commercial Paper
	Face Value	Maturity Date	Name	Yield¹
Automotive
$	150,000	8/12/14	BMW US Capital, LLC	0.11	%		149,981		0.55	%
Banks
	150,000	7/1/14	Credit Suisse (USA), Inc.	0.00	%		150,000		0.55	%
	250,000	7/2/14	Mizuho Funding LLC	0.20	%		249,999		0.92	%
	200,000	8/19/14	Union Bank, NA	0.12	%		199,967		0.74	%
Diversified Financial Services
	130,000	9/30/14	J.P. Morgan Securities LLC	0.17	%		129,944		0.48	%
Energy
	250,000	7/21/14	Southern Company Funding Corp	0.16	%		249,978		0.92	%
Total U.S. commercial paper (cost: $1,129,683)							1,129,869		4.16	%

Foreign Commercial Paper
	Face Value	Maturity Date	Name	Yield¹
Banks
$	200,000	8/8/14	Bank of Tokyo-Mitsubishi UFJ, Ltd.	0.18	%		199,962		0.74	%
	220,000	7/15/14	Oversea-Chinese Banking Corporation Ltd	0.14	%		219,988		0.81	%
Energy
	250,000	8/25/14	GDF Suez	0.17	%		249,935		0.92	%
Total foreign commercial paper (cost: $669,785)							669,885		2.47	%
Total commercial paper (cost: $1,799,468)							1,799,754		6.63	%

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

Seneca Global Fund, L.P.

Condensed Schedule of Investments (continued)

June 30, 2014
(Unaudited)

			Description				Fair Value		% of Partners' Capital (Net Asset Value)
U.S. Corporate Notes
Face Value		Maturity Date	Name	Yield¹
Aerospace
$	200,000	12/15/16	Rockwell Collins, Inc.		0.58	%	$	200,688		0.74	%
Automotive
	200,000	7/31/15	Daimler Finance North America LLC		1.30	%		202,795		0.75	%
Banks
	150,000	4/1/15	Bank of America		4.50	%		155,958		0.57	%
	150,000	3/22/16	Bank of America		1.05	%		151,175		0.56	%
	250,000	4/1/16	Citigroup Inc.		1.30	%		252,025		0.93	%
	200,000	2/26/16	JPMorgan Chase & Co.		0.85	%		200,905		0.74	%
	200,000	10/15/15	Morgan Stanley		0.71	%		200,722		0.74	%
	150,000	7/22/15	The Goldman Sachs Group, Inc.		0.63	%		150,228		0.55	%
Beverages
	425,000	1/27/17	Anheuser Busch Inbev Fin, Inc.		1.13	%		428,716		1.58	%
Computers
	100,000	9/19/14	Hewlett-Packard Company		1.78	%		100,409		0.37	%
Diversified Financial Services
	200,000	8/11/15	American Honda Finance Corporation		1.00	%		202,088		0.74	%
Energy
	150,000	8/15/14	Public Service Electric And Gas Company		0.85	%		150,596		0.56	%
Food
	300,000	10/17/16	The Kroger Co.		0.76	%		300,683		1.11	%
Insurance
	400,000	3/22/17	American International Group, Inc.		3.80	%		431,224		1.59	%
	200,000	9/30/15	Jackson National Life Global Funding		0.58	%		200,675		0.74	%
Manufacturing
	345,000	3/3/17	Caterpillar Financial Services Corporation		0.46	%		344,916		1.28	%
	275,000	10/9/15	General Electric Company		0.85	%		276,789		1.02	%
Media
	100,000	4/30/15	NBCUniversal Media, LLC		3.65	%		103,361		0.38	%
	100,000	4/15/16	NBCUniversal Media, LLC		0.76	%		100,143		0.37	%
Pharmecueticals
	150,000	2/12/15	Express Scripts Holding Company		2.10	%		152,748		0.56	%
Telecommunications
	175,000	9/15/16	Verizon Communications Inc.		1.76	%		180,352		0.66	%
Total U.S. corporate notes (cost: $4,479,936)								4,487,196		16.54	%

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

Seneca Global Fund, L.P.

Condensed Schedule of Investments (continued)

June 30, 2014

(Unaudited)

			Description				Fair Value			% of Partners' Capital (Net Asset Value)
Foreign Corporate Notes
Face Value		Maturity Date	Name	Yield¹
Banks
$	200,000	9/25/15	ING Bank N.V.		1.87	%	$	203,021			0.75	%
	150,000	9/25/15	ING Bank N.V.		2.00	%		152,842			0.56	%
	350,000	3/18/16	Rabobank Nederland		0.71	%		351,560			1.29	%

	200,000	10/1/15	BP Capital Markets P.L.C.		3.13	%		207,957			0.77	%
	200,000	5/9/16	CNOOC Finance (2013) Limited		1.13	%		200,857			0.74	%
	200,000	6/2/17	Enbridge Inc.		0.68	%		200,502			0.74	%

	150,000	4/27/15	Telefonica Emisiones, S.A.U.		3.73	%		154,461			0.57	%
Total foreign corporate notes (cost: $1,475,619)								1,471,200			5.42	%
Total corporate notes (cost: $5,955,555)								5,958,396			21.96	%

Total investments in securities (cost: $15,760,240)							$	15,739,866			58.01	%


OPEN FUTURES CONTRACTS
Long U.S. Futures Contracts
			Agricultural commodities				$	74,563			0.28	%
			Currencies					219,166			0.81	%
			Energy					(47,176	)		(0.17	)%
			Equity indices					90,141			0.33	%
			Interest rate instruments					57,548			0.21	%
			Metals					79,618			0.29	%
Net unrealized gain on open long U.S. futures contracts								473,860			1.75	%

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

Seneca Global Fund, L.P.

Condensed Schedule of Investments (continued)

June 30, 2014

(Unaudited)

	Description		Fair Value			% of Partners' Capital (Net Asset Value)
Short U.S. Futures Contracts
		Agricultural commodities	$	21,840			0.09	%
		Currencies		(84,188	)		(0.31	)%
		Energy		9,472			0.03	%
		Equity indices		(1,556	)		(0.01	)%
		Interest rate instruments		(31	)		0.00	%
		Metals		(191,641	)		(0.71	)%
Net unrealized loss on open short U.S. futures contracts				(246,104	)		(0.91	)%

Total U.S. futures contracts - net unrealized gain on open U.S. futures contracts				227,756			0.84	%

Long Foreign Futures Contracts
		Agricultural commodities		8,552			0.03	%
		Currencies		(876	)		0.00	%
		Equity indices		(6,844	)		(0.03	)%
		Interest rate instruments ²		287,790			1.06	%
Net unrealized gain on open long foreign futures contracts				288,622			1.06	%

Short Foreign Futures Contracts
		Agricultural commodities		36			0.00	%
		Interest rate instruments		(5,551	)		(0.02	)%
Net unrealized loss on open short foreign futures contracts				(5,515	)		(0.02	)%

Total foreign futures contracts - net unrealized gain on open foreign futures contracts				283,107			1.04	%

Net unrealized gain on open futures contracts			$	510,863			1.88	%


OPEN FORWARD CURRENCY CONTRACTS
Foreign Forward Currency Contracts
		Long	$	(9,107	)		(0.03	)%
		Short		16,983			0.06	%
Net unrealized gain on open foreign forward currency contracts				7,876			0.03	%

Net unrealized gain on open forward currency contracts			$	7,876			0.03	%

¹Represents the annualized yield at date of purchase for discount securities, the stated coupon rate for coupon-bearing securities, or the stated interest rate for certificates of deposit.

²No individual futures or forward currency contract position constituted one percent or greater 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.

Seneca Global Fund, L.P.

Condensed Schedule of Investments

December 31, 2013

(Audited)

			Description			Fair Value		% of Partners' Capital (Net Asset Value)
INVESTMENTS IN SECURITIES
U.S. Treasury Securities
	Face Value	Maturity Date	Name	Yield¹
$	750,000	2/28/14	U.S. Treasury Note	1.88	%	$	756,888		2.26	%
	500,000	5/15/14	U.S. Treasury Note	1.00	%		502,309		1.50	%
	500,000	5/31/14	U.S. Treasury Note	0.25	%		500,403		1.49	%
	500,000	6/30/14	U.S. Treasury Note	2.63	%		506,247		1.51	%
	250,000	7/15/14	U.S. Treasury Note	0.63	%		251,415		0.75	%
	500,000	7/31/14	U.S. Treasury Note	2.63	%		512,758		1.53	%
	250,000	8/31/14	U.S. Treasury Note	2.38	%		255,699		0.76	%
	400,000	9/15/14	U.S. Treasury Note	0.25	%		400,642		1.19	%
	1,000,000	9/30/14	U.S. Treasury Note	0.25	%		1,001,459		2.98	%
	400,000	10/15/14	U.S. Treasury Note	0.50	%		401,553		1.20	%
	700,000	11/30/14	U.S. Treasury Note	2.13	%		713,698		2.13	%
	40,000	12/15/14	U.S. Treasury Note	0.25	%		40,037		0.12	%
	600,000	12/31/14	U.S. Treasury Note	0.13	%		599,815		1.79	%
	1,250,000	1/31/15	U.S. Treasury Note	0.25	%		1,252,333		3.72	%
	600,000	4/30/15	U.S. Treasury Note	0.13	%		599,425		1.79	%
	101,000	12/31/15	U.S. Treasury Note	0.25	%		100,732		0.30	%
Total U.S. Treasury securities (cost: $8,430,578)							8,395,413		25.02	%

U.S. Commercial Paper
	Face Value	Maturity Date	Name	Yield¹
Banks
$	250,000	1/14/14	Mizuho Funding LLC	0.22	%		249,979		0.74	%
Beverages
	250,000	1/8/14	Bacardi Corporation	0.24	%		249,988		0.75	%
Diversified Financial Services
	250,000	1/30/14	AXA Financial, Inc.	0.25	%		249,950		0.74	%
	250,000	1/27/14	VNA Holding Inc.	0.30	%		249,946		0.74	%
Energy
	250,000	1/13/14	Oglethorpe Power Corporation	0.15	%		249,988		0.75	%
	250,000	1/7/14	Southern Company Funding Corp.	0.17	%		249,993		0.75	%
Total U.S. commercial paper (cost: $1,499,532)							1,499,844		4.47	%

Foreign Commercial Paper
	Face Value	Maturity Date	Name	Yield¹
Banks
$	200,000	1/30/14	Bank of Tokyo-Mitsubishi UFJ, Ltd.	0.19	%		199,969		0.60	%
	100,000	1/3/14	Oversea-Chinese Banking Corp. Ltd	0.18	%		99,999		0.30	%
	250,000	3/10/14	Sumitomo Mitsui Bank	0.21	%		249,901		0.74	%

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

Seneca Global Fund, L.P.

Condensed Schedule of Investments (continued)

December 31, 2013

(Audited)

			Description				Fair Value		% of Partners' Capital (Net Asset Value)
Foreign Commercial Paper (continued)
Face Value		Maturity Date	Name	Yield¹
Energy
$	250,000	1/30/14	GDF Suez		0.20	%	$	249,960		0.74	%
Total foreign commercial paper (cost: $799,677)								799,829		2.38	%
Total commercial paper (cost: $2,299,209)								2,299,673		6.85	%

U.S. Corporate Notes
	Face Value	Maturity Date	Name		Yield¹
Aerospace
$	200,000	12/15/16	Rockwell Collins, Inc.		0.59	%		200,384		0.60	%
Automotive
	200,000	7/31/15	Daimler Finance North America LLC		1.30	%		202,597		0.60	%
Banks
	150,000	4/1/15	Bank of America Corporation		4.50	%		158,571		0.47	%
	150,000	3/22/16	Bank of America Corporation		1.07	%		151,255		0.45	%
	9,000	4/1/14	Citigroup Inc.		1.18	%		9,027		0.03	%
	250,000	4/1/16	Citigroup Inc.		1.30	%		251,643		0.75	%
	150,000	7/22/15	Goldman Sachs		0.64	%		149,717		0.45	%
	200,000	2/26/16	JPMorgan Chase & Co.		0.86	%		200,869		0.60	%
	200,000	10/15/15	Morgan Stanley		0.72	%		200,186		0.60	%
	225,000	4/14/14	SSIF Nevada, Limited Partnership		0.94	%		225,747		0.67	%
Beverages
	200,000	7/15/15	Anheuser-Busch InBev Worldwide Inc.		0.80	%		201,658		0.60	%
Computers
	225,000	5/30/14	Hewlett-Packard Company		0.64	%		224,841		0.67	%
	100,000	9/19/14	Hewlett-Packard Company		1.79	%		100,896		0.30	%
Diversified Financial Services
	200,000	8/11/15	American Honda Finance Corporation		1.00	%		201,610		0.60	%
	200,000	6/9/14	General Electric Capital Corporation		5.65	%		205,219		0.61	%
Energy
	200,000	6/30/14	Arizona Public Service Company		5.80	%		204,916		0.61	%
	150,000	8/15/14	Public Service Electric and Gas Co,		0.85	%		150,911		0.45	%
	Food
	300,000	10/17/16	Kroger Co.		0.80	%		299,985		0.89	%
Insurance
	450,000	3/20/15	American International Group, Inc.		3.00	%		466,469		1.39	%
	200,000	9/30/15	Jackson National Life Global Funding		0.60	%		200,593		0.60	%
	200,000	4/4/14	MetLife Institutional Funding II		1.14	%		200,998		0.60	%
Manufacturing
	275,000	10/9/15	General Electric Company		0.85	%		276,938		0.83	%
Media
	100,000	4/30/15	NBCUniversal Media, LLC		3.65	%		104,730		0.31	%
	100,000	4/15/16	NBCUniversal Media, LLC		0.78	%		100,221		0.30	%

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

Seneca Global Fund, L.P.

Condensed Schedule of Investments (continued)

December 31, 2013

(Audited)

			Description				Fair Value		% of Partners' Capital (Net Asset Value)
U.S. Corporate Notes (continued)
Face Value		Maturity Date	Name	Yield¹
Pharmaceuticals
$	200,000	11/6/15	AbbVie Inc.		1.00	%	$	201,863		0.60	%
	150,000	2/12/15	Express Scripts Holding Company		2.10	%		153,447		0.46	%
	225,000	2/10/14	Novartis Capital Corporation		4.13	%		229,596		0.68	%
Telecommunications
	225,000	2/13/15	AT&T Inc.		0.88	%		227,377		0.68	%
	175,000	3/6/15	Verizon Communications Inc.		0.44	%		174,828		0.52	%
Total U.S. corporate notes (cost: $5,698,950)								5,677,092		16.92	%

Foreign Corporate Notes
	Face Value	Maturity Date	Name		Yield¹
Banks
$	225,000	4/14/14	Danske Bank A/S		1.29	%		225,905		0.67	%
	150,000	9/25/15	ING Bank N.V.		2.00	%		153,037		0.46	%
	200,000	9/25/15	ING Bank N.V.		1.89	%		204,004		0.61	%
	350,000	3/18/16	Rabobank Nederland		0.72	%		351,351		1.04	%
Energy
	300,000	10/1/15	BP Capital Markets P.L.C.		3.13	%		315,637		0.94	%
	300,000	11/14/14	Canadian Natural Resources Ltd		1.45	%		302,572		0.90	%
	200,000	5/9/16	CNOOC Finance (2013) Limited		1.13	%		200,115		0.60	%
Total foreign corporate notes (cost: $1,756,036)								1,752,621		5.22	%
Total corporate notes (cost: $7,454,986)								7,429,713		22.14	%

Total investments in securities (cost: $18,184,773)							$	18,124,799		54.01	%

CERTIFICATES OF DEPOSIT
U.S. Certificates of Deposit
	Face Value	Maturity Date	Name		Yield¹
Banks
$	250,000	5/9/14	Sumitomo Mitsui Bank (NY)		0.38	%	$	250,730		0.75	%

Total U.S. certificates of deposit (cost: $250,000)							$	250,730		0.75	%

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

Seneca Global Fund, L.P.

Condensed Schedule of Investments (continued)

December 31, 2013

(Audited)

	Description	Fair Value			% of Partners' Capital (Net Asset Value)
OPEN FUTURES CONTRACTS
Long U.S. Futures Contracts
	Agricultural commodities	$	(4,198	)		(0.03	)%
	Currencies		86,494			0.26	%
	Energy		5,420			0.02	%
	Equity indices		220,650			0.66	%
	Interest rate instruments		(10,989	)		(0.03	)%
	Metals		115,819			0.35	%
Net unrealized gain on open long U.S. futures contracts			413,196			1.23	%

Short U.S. Futures Contracts
	Agricultural commodities		176,548			0.54	%
	Currencies		192,279			0.57	%
	Energy		(8,832	)		(0.03	)%
	Equity indices		1,095			0.00	%
	Interest rate instruments		37,027			0.11	%
	Metals		(103,082	)		(0.31	)%
Net unrealized gain on open short U.S. futures contracts			295,035			0.88	%

Total U.S. futures contracts - net unrealized gain on open U.S. futures contracts			708,231			2.11	%

Long Foreign Futures Contracts
	Agricultural commodities		(822	)		(0.00	)%
	Currencies		33,774			0.10	%
	Equity indices²		395,105			1.18	%
	Interest rate instruments		(107,083	)		(0.32	)%
Net unrealized gain on open long foreign futures contracts			320,974			0.96	%

Short Foreign Futures Contracts
	Agricultural commodities		17,594			0.05	%
	Interest rate instruments		119,827			0.36	%
Net unrealized gain on open short foreign futures contracts			137,421			0.41	%

Total foreign futures contracts - net unrealized gain on open foreign futures contracts			458,395			1.37	%

Net unrealized gain on open futures contracts		$	1,166,626			3.48	%

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

Seneca Global Fund, L.P.

Condensed Schedule of Investments (continued)

December 31, 2013

(Audited)

	Description		Fair Value			% of Partners' Capital (Net Asset Value)
OPEN FORWARD CURRENCY CONTRACTS
Foreign Forward Currency Contracts
		Long	$	(5,969	)	(0.01)%
		Short		11,412		0.03%
Net unrealized gain on open foreign forward currency contracts				5,443		0.02%

Net unrealized gain on open forward currency contracts			$	5,443		0.02%

¹Represents the annualized yield at date of purchase for discount securities, the stated coupon rate for coupon-bearing securities, or the stated interest rate for certificates of deposit.

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

Seneca Global Fund, L.P.

Statements of Operations

For the Three and Six Months Ended June 30, 2014 and 2013

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Trading Gain (Loss) from Futures and Forwards
Net realized gain (loss)	$	560,283		$	(276,389	)	$	229,677		$	2,017,529
Net change in unrealized loss		(73,836	)		(322,292	)		(653,330	)		(601,578	)
Brokerage commissions and trading expenses		(27,123	)		(37,704	)		(53,219	)		(86,782	)
Net gain (loss) from futures and forwards trading		459,324			(636,385	)		(476,872	)		1,329,169

Net Investment Loss
Income
Interest income		43,543			80,919			91,650			170,511
Net realized and change in unrealized loss on securities and certificates of deposit		(22,331	)		(68,938	)		(50,417	)		(123,035	)
Total income		21,212			11,981			41,233			47,476
Expenses
Trading Advisor management fees		87,303			131,149			185,153			275,545
Trading Advisor incentive fees		71,219			—			71,219			—
Cash Manager fees		5,527			9,169			11,428			17,237
General Partner fee		103,351			161,391			217,148			341,895
Selling Agent fees – General Partner		52,189			71,311			106,331			151,200
Broker dealer custodial fee – General Partner		7,062			11,243			15,018			22,775
Broker dealer servicing fee – General Partner		5,534			7,267			11,400			15,357
Administrative expenses – General Partner		250,755			236,494			508,752			519,454
Offering expenses – General Partner		77,021			115,578			158,499			232,157
Total expenses		659,961			743,602			1,284,948			1,575,620
Administrative and offering expenses waived		(213,230	)		(173,494	)		(426,904	)		(371,406	)
Net total expenses		446,731			570,108			858,044			1,204,214
Net investment loss		(425,519	)		(558,127	)		(816,811	)		(1,156,738	)
Net Income (Loss)	$	33,805		$	(1,194,512	)	$	(1,293,683	)	$	172,431

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

Seneca Global Fund, L.P.

Statements of Operations (continued)

For the Three and Six Months Ended June 30, 2014 and 2013

(Unaudited)

	Series A			Series B			Series C			Series I			General Partner
Three Months Ended June 30, 2014
Increase (Decrease) in net asset value per unit	$	(0.09	)	$	0.22		$	0.54		$	0.38		$	1.01
Net income (loss) per unit†	$	(0.09	)	$	0.09		$	0.37		$	0.24		$	1.00
Weighted average number of units outstanding		154,527.1325			74,220.8925			26,890.8755			97,849.9707			7,460.6309

Three Months Ended June 30, 2013
Decrease in net asset value per unit	$	(2.52	)	$	(2.54	)	$	(2.49	)	$	(2.81	)	$	(2.48	)
Net loss per unit†	$	(2.42	)	$	(2.47	)	$	(2.84	)	$	(2.19	)	$	(2.48	)
Weighted average number of units outstanding		188,197.6448			102,701.8331			35,155.4104			166,773.3122			7,460.6309

	Series A			Series B			Series C			Series I			General Partner
Six Months Ended June 30, 2014
Decrease in net asset value per unit	$	(3.20	)	$	(3.06	)	$	(2.82	)	$	(3.32	)	$	(2.53	)
Net loss per unit†	$	(3.25	)	$	(3.44	)	$	(3.22	)	$	(3.88	)	$	(2.54	)
Weighted average number of units outstanding		156,507.8691			78,151.7621			28,223.5666			104,658.1183			7,460.6309

Six Months Ended June 30, 2013
Increase (Decrease) in net asset value per unit	$	(0.75	)	$	(0.21	)	$	0.39		$	0.05		$	1.25
Net income (loss) per unit†	$	(0.25	)	$	(0.01	)	$	(1.17	)	$	1.34		$	1.25
Weighted average number of units outstanding		202,040.4499			105,060.7719			30,551.7373			186,147.4820			7,460.6309

† Based on weighted average number of units outstanding during the period.

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

Seneca Global Fund, L.P.

Statements of Cash Flows

For the Six Months Ended June 30, 2014 and 2013

(Unaudited)

	Six Months Ended June 30,
	2014			2013
Cash flows from operating activities
Net gain (loss)	$	(1,293,683	)	$	172,431
Adjustments to reconcile net gain (loss) to net cash provided by operating activities
Net change in unrealized loss from futures and forwards trading		653,330			601,578
Purchases of securities and certificates of deposit		(13,764,370	)		(13,910,424	)
Proceeds from disposition of securities and certificates of deposit		16,349,616			16,400,152
Net realized and change in unrealized loss in securities and certificates of deposit		50,417			123,035
Changes in
Trading Advisor management fee payable		(38,583	)		(11,109	)
Trading Advisor incentive fee payable		(41,133	)		—
Commissions and other trading expenses payable on open contracts		(703	)		(4,683	)
Cash Manager fees payable		2,064			(5,879	)
General Partner fee payable		(7,991	)		(11,716	)
Selling Agent fees payable – General Partner		(2,032	)		(6,931	)
Administrative expenses payable – General Partner		(5,247	)		(7,418	)
Offering expenses payable – General Partner		(3,866	)		(6,964	)
Broker dealer custodial fee payable – General Partner		(753	)		(280	)
Broker dealer servicing fee payable – General Partner		(268	)		(600	)
Net cash provided by operating activities		1,896,798			3,331,192

Cash flows from financing activities
Subscriptions		1,189,193			3,439,951
Subscriptions received in advance		5,068			271,868
Redemptions		(6,978,418	)		(13,195,278	)
Net cash used in financing activities		(5,784,157	)		(9,483,459	)

Net decrease in cash and cash equivalents		(3,887,359	)		(6,152,267	)
Cash and cash equivalents, beginning of period		15,314,416			22,118,810
Cash and cash equivalents, end of period	$	11,427,057		$	15,966,543

End of period cash and cash equivalents consists of
Cash in broker trading accounts	$	8,084,690		$	10,658,407
Cash and cash equivalents		3,342,367			5,308,136
Total end of period cash and cash equivalents	$	11,427,057		$	15,966,543

Supplemental disclosure of cash flow information
Prior period redemptions paid	$	934,506		$	634,037
Prior period subscriptions received in advance	$	62,372		$	236,268

Supplemental schedule of non-cash financing activities
Redemptions payable	$	345,441		$	306,841

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

Seneca Global Fund, L.P.

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

For the Six Months Ended June 30, 2014 and 2013

(Unaudited)

	Series A						Series B						Series C						Series I						General Partner
	Units			Amount			Units			Amount			Units			Amount			Units			Amount			Units		Amount			Total
Six Months Ended June 30, 2014
Balance at December 31, 2013		164,417.4673		$	11,687,076			86,507.9830		$	7,060,706			27,732.4319		$	2,526,789			120,105.4790		$	11,490,470			7,460.6309	$	794,660		$	33,559,701
Net loss					(508,922	)					(268,834	)					(90,852	)					(406,140	)				(18,935	)		(1,293,683	)
Subscriptions		14,199.0024			966,190			2,811.0965			220,400			—			—			700.9301			64,975			—		—			1,251,565
Redemptions		(19,757.7781	)		(1,349,532	)		(20,546.0847	)		(1,609,489	)		(7,479.0958	)		(654,801	)		(30,139.1258	)		(2,775,531	)		—		—			(6,389,353	)
Transfers		(6,027.4927	)		(421,096	)		(513.6204	)		(40,481	)		4,521.9395			406,226			601.8611			55,351			—		—			—
Balance at June 30, 2014		152,831.1989		$	10,373,716			68,259.3744		$	5,362,302			24,775.2756		$	2,187,362			91,269.1444		$	8,429,125			7,460.6309	$	775,725		$	27,128,230

Six Months Ended June 30, 2013
Balance at December 31, 2012		236,423.1119		$	17,300,439			110,409.9497		$	9,133,773			17,608.2983		$	1,604,266			219,781.2927		$	21,182,358			7,460.6309	$	782,908		$	50,003,744
Net gain (loss)					(49,565	)					(782	)					(35,813	)					249,277					9,314			172,431
Subscriptions		22,969.9440			1,723,600			13,248.8148			1,126,114			—			—			8,374.7066			826,505			—		—			3,676,219
Redemptions		(34,526.8808	)		(2,577,305	)		(20,772.2489	)		(1,768,580	)		(14,170.2710	)		(1,334,996	)		(71,863.3717	)		(7,187,201	)		—		—			(12,868,082	)
Transfers		(40,458.4660	)		(3,040,265	)		—			—			32,331.2053			3,039,507			—			758			—		—			—
Balance at June 30, 2013		184,407.7091		$	13,356,904			102,886.5156		$	8,490,525			35,769.2326		$	3,272,964			156,292.6276		$	15,071,697			7,460.6309	$	792,222		$	40,984,312

	Series A		Series B		Series C		Series I		General Partner
June 30, 2014	$	67.88	$	78.56	$	88.29	$	92.35	$	103.98
December 31, 2013		71.08		81.62		91.11		95.67		106.51
June 30, 2013		72.43		82.52		91.50		96.43		106.19
December 31, 2012		73.18		82.73		91.11		96.38		104.94

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

Seneca Global Fund, L.P.

Notes to Financial Statements

(Unaudited)

Organization and Summary of Significant Accounting Policies

Description of the Fund

Seneca Global Fund, L.P., (“Fund”) is a Delaware limited partnership, which was formed in 2007. The Fund operates as a commodity investment pool and commenced investment operations on September 1, 2008. The Fund issues units of limited partner interests (“Units”) in four series: A, B, C and I, which represent units of fractional undivided beneficial interest in and ownership of the Fund.

The Fund uses multiple 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 does not currently use options or swaps as part of its trading system, but may employ them in the future. Each trading advisor uses a proprietary, systematic trading system that deploys multiple trading strategies using derivatives that seeks to identify and exploit directional moves in market behavior to a broad and diversified range of global market sectors including equity indices, currencies, interest rate instruments, energy, metals and agricultural commodities.

Only Series A, B and I Units are offered by the fund. Series A, B and I Units will be re-designated as Series C Units after the Fee Limit has been reached. The Series C Units are identical to the other Units except that the Series C Units only incur the Trading Advisor management fee, Trading Advisor incentive fee, brokerage expenses, General Partner management fee and administrative expenses. The Fee Limit is the total amount of selling agent commissions, broker dealer servicing fees paid to the selling agents, payments for wholesalers, payments for sales conferences, and other offering expenses that are items of compensation to Financial Industry Regulatory Authority (“FINRA”) members (but excluding among other items, the production and printing of prospectuses and related collateral material, as well as various legal and regulatory fees) paid by particular Series A, B or I Units when it is equal to 10% of the original purchase price paid by holders of those particular Units.

The Fund is a registrant with the U.S. Securities and Exchange Commission (“SEC”) pursuant to the U.S. Securities Act of 1933, as amended, (“1933 Act”) and 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 1933 Act and 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 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 its futures broker and interbank market makers through which the Fund trades.

Under its Fourth Amended and Restated Limited Partnership Agreement (“Partnership Agreement”), the Fund’s business and affairs are managed and conducted by the Fund’s general partner, Steben & Company, Inc. (“General Partner”), a Maryland corporation. The General Partner is registered with the CFTC as a commodity pool operator and a commodities introducing broker, and is registered with the SEC as an investment adviser and a broker dealer. Additionally, 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

Accounting Principles

The Fund’s financial statements are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”).

Use of Estimates

Preparing financial statements in conformity with GAAP 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, forward currency contracts, investments in securities, and certificates of deposit are recorded on a trade date basis, and gains or losses are realized when contracts/positions are liquidated. Realized gains and losses on investments in securities and certificates of deposit are determined on a specific identification basis and are included in net realized and change in unrealized gain (loss) in the statements of operations. 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. The difference between cost and the fair value of open investments in securities and certificates of deposit is reflected as unrealized gain or loss on investments in securities and certificates of deposit. 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 securities, certificates of deposit and other cash and cash equivalent balances is recorded on an accrual basis.

Fair Value of Financial Instruments

Financial instruments are recorded 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 recorded at fair value are classified within a fair value hierarchy based upon the level of judgment associated with the inputs used to measure their value. This fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

§ Level 1 –

Fair value is based on unadjusted quoted prices for identical instruments in active markets. Financial instruments using Level 1 inputs include futures contracts, money market funds and U.S. Treasury securities.

§ 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 using Level 2 inputs include forward currency contracts, certificates of deposit, commercial paper, corporate notes and U.S. and foreign 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 using Level 3 inputs.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Fund’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment.

The Fund assesses the classification of the instruments at each measurement date, and any transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with the Fund’s accounting policy regarding the recognition of transfers between levels of the fair value hierarchy. For the periods ended June 30, 2014 and December 31, 2013, there were no such transfers between levels.

A description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value on a recurring basis follows.

The investment in money market fund, 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.

U.S. Treasury securities are recorded at fair value based on bid and ask quotes for identical instruments. Commercial paper, certificates of deposit, corporate notes and U.S. and foreign government sponsored enterprise notes are recorded at 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, certificates of deposit, corporate notes and U.S. and foreign government sponsored enterprise notes are classified within Level 2.

Cash and Cash Equivalents

Cash and cash equivalents include investments with original maturities of three months or less at the date of acquisition that are not held for sale in the ordinary course of business. The Fund maintains deposits with financial institutions in amounts that are in excess of federally 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 asset or liability in the current year. Management has determined there are no material uncertain income tax positions through June 30, 2014. With few exceptions, the Fund is no longer subject to U.S. or state and local income tax examinations by tax authorities for years before 2010.

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 change in unrealized gain or loss on such investments in the statement of operations.

Reclassification

Certain amounts in the 2013 financial statements may have been reclassified to conform to the 2014 presentation without affecting previously reported partners’ capital (net asset value).

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, 2014
	Level 1		Level 2		Total
Equity in broker trading accounts:
Net unrealized gain on open futures contracts^*	$	510,863	$	—	$	510,863
Net unrealized gain on open forward currency contracts^*		—		7,876		7,876
Cash and cash equivalents:
Money market fund		1,033,788		—		1,033,788
Investments in securities:
U.S. Treasury securities*		7,981,716		—		7,981,716
Commercial paper*		—		1,799,754		1,799,754
Corporate notes*		—		5,958,396		5,958,396
Total	$	9,526,367	$	7,766,026	$	17,292,393

*See the condensed schedule of investments for further description.

At December 31, 2013
	Level 1		Level 2		Total
Equity in broker trading accounts:
Net unrealized gain on open futures contracts*	$	1,166,626	$	—	$	1,166,626
Net unrealized gain on open forward currency contracts*		—		5,443		5,443
Cash and cash equivalents:
Money market fund		556,060		—		556,060
Investments in securities:
U.S. Treasury securities*		8,395,413		—		8,395,413
Commercial paper*		—		2,299,673		2,299,673
Corporate notes*		—		7,429,713		7,429,713
Certificates of deposit*		—		250,730		250,730
Total	$	10,118,099	$	9,985,559	$	20,103,658

*See the condensed schedule of investments for further description.

There were no Level 3 holdings at June 30, 2014 and December 31, 2013 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.

Derivative Instruments Disclosures

The Fund’s derivative contracts are comprised of futures and forward currency contracts, none of which were designated as hedging instruments. At June 30, 2014, 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	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statements of Financial Condition			Net Amount of Assets Presented in the Statements of Financial Condition
Equity in broker trading accounts Net unrealized gain on open futures contracts
Agricultural commodities	$	211,844	$	(106,853	)	$	104,991
Currencies		239,898		(105,796	)		134,102
Energy		63,398		(101,102	)		(37,704	)
Equity indices		134,732		(52,991	)		81,741
Interest rate instruments		357,259		(17,503	)		339,756
Metals		102,490		(214,513	)		(112,023	)
Net unrealized gain on open futures contracts	$	1,109,621	$	(598,758	)	$	510,863

Net unrealized gain on open forward currency contracts	$	53,898	$	(46,022	)	$	7,876

At June 30, 2014, there were 1,758 open futures contracts and 64 open forward currency contracts. For the three and six months ended June 30, 2014, the Fund’s derivative contracts had the following impact on the statements of operations:

	Three Months Ended June 30, 2014						Six Months Ended June 30, 2014
Types of Exposure	Net realized gain (loss)			Net change in unrealized loss			Net realized gain (loss)			Net change in unrealized loss
Futures contracts
Agricultural commodities	$	92,167		$	(190,031	)	$	565,100		$	(84,131	)
Currencies		(111,012	)		66,713			(194,499	)		(178,445	)
Energy		(23,973	)		(31,202	)		(138,397	)		(34,292	)
Equity indices		65,235			(6,334	)		(340,949	)		(535,109	)
Interest rate instruments		334,368			303,929			569,864			300,974
Metals		67,155			(159,953	)		(300,970	)		(124,760	)
Total futures contracts		423,940			(16,878	)		160,149			(655,763	)

Forward currency contracts		128,325			(56,958	)		57,524			2,433
Total futures and forward currency contracts	$	552,265		$	(73,836	)	$	217,673		$	(653,330	)

For the three and six months ended June 30, 2014 the number of futures contracts closed were 6,752 and 14,068, respectively, and the number of forward currency contracts closed were 112 and 236, respectively.

The Fund’s financial assets, derivative assets, and cash collateral held by counterparties at June 30, 2014 were:

			Gross Amounts Not Offset in the Statements of Financial Condition
Counterparty	Net Amount of Assets in the Statements of Financial Condition		Financial Instruments		Cash Collateral Received		Net Amount
JP Morgan Securities, LLC	$	249,818	$	—	$	—	$	249,818
Newedge UK Financial Ltd		7,876		—		—		7,876
Newedge USA, LLC		261,045		—		—		261,045
Total	$	518,739	$	—	$	—	$	518,739

At December 31, 2013, 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	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statements of Financial Condition			Net Amount of Assets Presented in the Statements of Financial Condition
Equity in broker trading accounts Net unrealized gain on open futures contracts
Agricultural commodities	$	250,715	$	(61,593	)	$	189,122
Currencies		366,335		(53,788	)		312,547
Energy		48,136		(51,548	)		(3,412	)
Equity indices		618,040		(1,190	)		616,850
Interest rate instruments		220,687		(181,905	)		38,782
Metals		370,438		(357,701	)		12,737
Net unrealized gain on open futures contracts	$	1,874,351	$	(707,725	)	$	1,166,626

Net unrealized gain on open forward currency contracts	$	49,606	$	(44,163	)	$	5,443

At December 31, 2013, there were 2,186 open futures contracts and 68 open forward currency contracts. For the three and six months ended June 30, 2013, the Fund’s derivative contracts had the following impact on the statements of operations:

	Three Months Ended June 30, 2013						Six Months Ended June 30, 2013
Types of Exposure	Net realized gain (loss)			Net change in unrealized loss			Net realized gain (loss)			Net change in unrealized loss
Futures contracts
Agricultural commodities	$	(276,828	)	$	37,835		$	313,427		$	(290,847	)
Currencies		(342,004	)		(45,409	)		377,210			(352,739	)
Energy		(841,833	)		(168,351	)		(1,334,831	)		(54,939	)
Equity indices		164,163			(81,047	)		2,363,409			(532,341	)
Interest rate instruments		(443,075	)		(421,224	)		(1,310,078	)		(94,158	)
Metals		2,033,048			278,107			1,932,307			824,638
Total futures contracts		293,471			(400,089	)		2,341,444			(500,386	)

Forward currency contracts		(565,461	)		77,797			(339,788	)		(101,192	)
Total futures and forward currency contracts	$	(271,990	)	$	(322,292	)	$	2,001,656		$	(601,578	)

For the three and six months ended June 30, 2013, the number of futures contracts closed were 11,657 and 24,045, respectively, and the number of forward currency contracts closed were 982 and 1,881, respectively

The Fund’s financial assets, derivative assets, and cash collateral held by counterparties at December 31, 2013 were:

			Gross Amounts Not Offset in the Statements of Financial Condition
Counterparty	Net Amount of Assets in the Statements of Financial Condition		Financial Instruments		Cash Collateral Received		Net Amount
JP Morgan Securities, LLC	$	732,303	$	—	$	—	$	732,303
Newedge UK Financial Ltd		5,443		—		—		5,443
Newedge USA, LLC		434,323		—		—		434,323
Total	$	1,172,069	$	—	$	—	$	1,172,069

General Partner

In accordance with the Partnership Agreement, the General Partner must maintain its interest in the capital of the Fund at no less than the greater of: (i) 1% of aggregate capital contributions to the Fund by all partners (including the General Partner’s contributions) or (ii) $25,000. The General Partner shares in the profits and losses of the Fund in proportion to its respective ownership interest.

At June 30, 2014 and December 31, 2013, the General Partner had an investment of 7,460.6309 units valued at $775,725 and $794,660, respectively.

The General Partner earns the following compensation:

General Partner Fee – each Series of Units, other than General Partner Units, incurs a monthly fee equal to 1/12th of 1.5% of the respective Series’ month-end net asset value, prorated for partial months and adjusted for weekly subscriptions and redemptions, and payable in arrears.

Selling Agent Fees – the General Partner charges Series A Units a monthly fee equal to 1/12th of 2% of the outstanding Series A Units’ month-end net asset value, prorated for partial months and adjusted for weekly subscriptions and redemptions, and payable in arrears. The General Partner pays to the selling agents an upfront fee of 2% of the aggregate subscription amount for the sale of Series A Units. Beginning in the 13th month, the General Partner pays the selling agents a monthly fee in arrears equal to 1/12th of 2.00% of the outstanding Series A Units’ month-end net asset value, prorated for partial months and adjusted for weekly subscriptions and redemptions. 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 Fee – the General Partner charges Series A Units a monthly fee equal to 1/12th of 0.15% of their month-end net asset value, prorated for partial months and adjusted for weekly subscriptions and redemptions. The Series B Units which are not subject to a broker dealer custodial fee incur a monthly fee equal to 1/12th of 0.6% of their month-end net asset value, prorated for partial months and adjusted for weekly subscriptions and redemptions. These fees are payable in arrears to the selling agents by the General Partner. 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.

Broker Dealer Custodial Fee – the General Partner charges Series B Units that are held by broker dealers who act as custodian for Series B Units for the benefit of the limited partners, a monthly fee to such broker dealers equal to 1/12th of 0.6% of the outstanding Series B Units’ month-end net asset value, prorated for partial months and adjusted for weekly subscriptions and redemptions. These fees are payable in arrears to the selling agents by the General Partner.

Trading Advisors and Cash Managers

Trading advisor management fees range from 0% to 1.5% per annum of each trading advisors’ respective trading level (as defined in each respective advisory agreement) and trading advisor incentive fees equal to 20% to 30% of net new trading profits (as defined in each respective advisory agreement).

The Fund has engaged J.P. Morgan Investment Management, Inc. and Principal Global Investors, LLC (collectively, the “Cash Managers”) to provide cash management services to the Fund. The Fund incurs monthly fees, payable in arrears to the Cash Managers, equal to approximately 1/12th of 0.13% of the investments in securities and certificates of deposit.

Deposits with Brokers

To meet margin requirements, the Fund deposits funds with its brokers, subject to CFTC regulations and various exchange and broker requirements. The Fund earns interest income on its assets deposited with its brokers. At June 30, 2014 and December 31, 2013, the Fund had margin requirements of $3,685,581 and $4,038,995.

Administrative and Offering 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 1/12^th of 0.95% of the Fund’s month-end net asset value, prorated for partial months and adjusted for weekly subscriptions and redemptions and payable monthly in arrears. Actual administrative expenses may vary; however, such administrative expenses will not exceed 0.95% of the Fund’s average annual net asset value. The administrative expenses include legal, accounting, clerical and other back office related expenses related to the administration of the Fund and all other associated costs incurred by the Fund. For the three months ended June 30, 2013 and 2012, actual administrative expenses were $250,755 and $236,494, respectively. For the six months ended June 30, 2014 and 2013, actual administrative expenses were $508,752 and $519,454, respectively. Such amounts are presented as administrative expenses in the statements of operations.

During the three months ended June 30, 2014 and 2013, the General Partner absorbed administrative expenses in excess of the 0.95% limitation of $183,478 and $132,335, respectively. Such amounts are included in administrative and offering expenses waived in the statements of operations. During the six months ended June 30, 2014 and 2013, the General Partner absorbed administrative expenses in excess of the 0.95% limitation of $367,567 and $299,065, respectively. At June 30, 2014 and December 31, 2013, $21,490 and $26,737, 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.

The Fund reimburses the General Partner for actual ongoing offering expenses, up to 1/12^th of 0.75% of the Fund’s month-end net asset value pro rata for each Series of Units except for the General Partner and Series C Units, prorated for partial months and adjusted for weekly subscriptions and redemptions and payable monthly in arrears. Actual ongoing offering expenses in excess of this limitation are absorbed by the General Partner. For the three months ended June 30, 2014 and 2013, actual offering expenses were $77,021 and $115,578, respectively. For the six months ended June 30, 2014 and 2013, actual offering expenses were $158,499 and $232,157, respectively. Such amounts are presented as offering expenses in the statements of operations.

During the three months ended June 30, 2014 and 2013, the General Partner absorbed offering expenses in excess of the 0.75% limitation of $29,753 and $41,159, respectively. During the six months ended June 30, 2014 and 2013, the General Partner absorbed offering expenses in excess of the 0.75% limitation of $59,337 and $72,341, respectively. Such amounts are included in administrative and offering expenses waived in the statements of operations. At June 30, 2014 and December 31, 2013, $15,297 and $19,163, respectively, were payable to the General Partner for offering expenses incurred on behalf of the Fund and not waived by the General Partner. Such amounts are presented as offering expenses payable – General Partner in the statements of financial condition.

Subscriptions, Distributions and Redemptions

Investments in the Fund are made by subscription agreement, subject to a minimum investment of $10,000. Subscriptions into and redemptions out of the Fund occur weekly. Each series of units will be offered to the public as of the open of business on each Wednesday at the net asset value per Unit of the relevant series at the close of the preceding business day. At June 30, 2014 and December 31, 2013, the Fund received advance subscriptions of $5,068 and $62,372, respectively, which were recognized as subscriptions to the Fund or returned, if applicable, subsequent to the end of the respective quarter.

The Fund is not required to make distributions, but may do so at the sole discretion of the General Partner. Redemptions may be made by a limited partner as of the close of business day each Tuesday at the net asset value of the redeemed Units (or portion thereof) on that day.

Series A Units redeemed prior to the first anniversary of the subscription date are subject to a redemption fee equal to the product of (i) 2% of the subscription price for such Series A Units on the subscription date divided by 52 (ii) multiplied by the number of weeks remaining before the first anniversary of the subscription date. Series B, C and I Units are not subject to the redemption fee. For the three months ended June 30, 2014 and 2013, these redemption fees were negligible.

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 non-exempt 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 any applicable government or self-regulatory agency regulations. Limited partners will not be required to pay any redemption fees if such limited partners are subject to a mandatory redemption of their Units within the first year of purchase.

Trading Activities and Related Risks

The Fund engages in the speculative trading of futures and 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 futures brokers. Additional deposits may be necessary for any loss of 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 and J.P. Morgan Securities, LLC as its futures brokers and Newedge UK Financial Limited as its forward currency counterparty.

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 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 the 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 non-performance 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, 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 non-performance. 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 Cash Managers manage the Fund’s cash and excess margin through investments in fixed income instruments, pursuant to investment parameters established by the General Partner. The Fund’s objective in retaining the Cash Managers is to enhance the return on its assets not required to be held by the Fund’s brokers to support the Fund’s trading. There is no guarantee that the Cash Managers will achieve returns for the Fund, net of fees payable to the Cash Managers, in excess of the returns previously achieved through the General Partner’s efforts and/or available through the Fund’s brokers, or that the Cash Managers will avoid a loss of principal on amounts placed under their management.

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 certain circumstances, distributions and redemptions received.

Through its investments in debt securities and certificates of deposit, the Fund has exposure to U.S. and foreign enterprises. The following table presents the exposure at June 30, 2014.

Country or Region	U.S. Treasury Securities		Commercial Paper		Corporate Notes		Certificates of Deposit		Total		% of Partners' Capital (Net Asset Value)
United States	$	7,981,716	$	1,129,869	$	4,487,196	$	—	$	13,598,781		50.11	%
Netherlands		—				707,423				707,423		2.61	%
France		—		249,935						249,935		0.92	%
Singapore		—		219,988						219,988		0.81	%
United Kingdon		—				207,957				207,957		0.77	%
British Virgin Islands		—				200,857				200,857		0.74	%
Canada		—				200,502				200,502		0.74	%
Japan		—		199,962						199,962		0.74	%
Spain		—				154,461				154,461		0.57	%
Total	$	7,981,716	$	1,799,754	$	5,958,396	$	—	$	15,739,866		58.01	%

The following table presents the exposure at December 31, 2013.

Country or Region	U.S. Treasury Securities		Commercial Paper		Corporate Notes		Certificates of Deposit		Total		% of Partners' Capital (Net Asset Value)
United States	$	8,395,413	$	1,499,844	$	5,677,092	$	250,730	$	15,823,079		47.15	%
Netherlands		—		—		708,392		—		708,392		2.11	%
Japan		—		449,870		—		—		449,870		1.34	%
United Kingdon		—		—		315,637		—		315,637		0.94	%
Canada		—		—		302,572		—		302,572		0.90	%
France		—		249,960		—		—		249,960		0.74	%
Denmark		—		—		225,905		—		225,905		0.67	%
British Virgin Islands		—		—		200,115		—		200,115		0.60	%
Singapore		—		99,999		—		—		99,999		0.30	%
Total	$	8,395,413	$	2,299,673	$	7,429,713	$	250,730	$	18,375,529		54.75	%

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 statement of financial condition, including the condensed schedule of investments, at June 30, 2014, the statements of operations for the three and six months ended June 30, 2014 and 2013, the statements of cash flows and changes in partners’ capital (net asset value) for the six months ended June 30, 2014 and 2013, and the accompanying notes to the financial statements are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP 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, 2014, results of operations for the three and six months ended June 30, 2014 and 2013, cash flows and changes in partners’ capital (net asset value) for the six months ended June 30, 2014 and 2013. The results of operations for the three and six months ended June 30, 2014 and 2013 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 the Fund’s Form 10-K as filed with the SEC.

12.

Financial Highlights

The following information presents per unit operating performance results and other supplemental financial ratios for the three and six months ended June 30, 2014 and 2013. This information has been derived from information presented in the financial statements for limited partner units and assumes that a unit is outstanding throughout the entire period:

	Three Months Ended June 30, 2014												Three Months Ended June 30, 2013
	Series A Units			Series B Units			Series C Units			Series I Units			Series A Units			Series B Units			Series C Units			Series I Units
Per Unit Operating Performance
Net asset value per Unit at beginning of period	$	67.97		$	78.34		$	87.75		$	91.97		$	74.95		$	85.06		$	93.99		$	99.24

Gain (Loss) from operations
Gain (Loss) from trading ⁽¹⁾		1.16			1.35			1.51			1.57			(1.28	)		(1.48	)		(1.62	)		(1.72	)
Net investment loss ⁽¹⁾		(1.25	)		(1.13	)		(0.97	)		(1.19	)		(1.24	)		(1.06	)		(0.87	)		(1.09	)
Total gain (loss) from operations		(0.09	)		0.22			0.54			0.38			(2.52	)		(2.54	)		(2.49	)		(2.81	)
Net asset value per Unit at end of period	$	67.88		$	78.56		$	88.29		$	92.35		$	72.43		$	82.52		$	91.50		$	96.43

Total return ⁽⁵⁾		(0.13	)%		0.27	%		0.61	%		0.42	%		(3.36	)%		(2.99	)%		(2.65	)%		(2.83	)%

Other Financial Ratios
Ratios to average net asset value
Expenses prior to Trading Advisor incentive fee ^(2)(3)(4)		6.65	%		5.10	%		3.75	%		4.51	%		6.72	%		5.11	%		3.78	%		4.51	%
Trading Advisor incentive fee⁽⁵⁾		0.26	%		0.24	%		0.24	%		0.25	%		—			—			—			—
Total expenses		6.91	%		5.34	%		3.99	%		4.76	%		6.72	%		5.11	%		3.78	%		4.51	%
Net investment loss ^(2)(3)(4)(6)		(6.35	)%		(4.80	)%		(3.46	)%		(4.21	)%		(6.61	)%		(5.01	)%		(3.70	)%		(4.38	)%

	Six Months Ended June 30, 2014												Six Months Ended June 30, 2013
	Series A Units			Series B Units			Series C Units†			Series I Units			Series A Units			Series B Units			Series C Units†			Series I Units
Per Unit Operating Performance
Net asset value per Unit at beginning of period	$	71.08		$	81.62		$	91.11		$	95.67		$	73.18		$	82.73		$	91.11		$	96.38
Gain (loss) from operations
Loss from trading ⁽¹⁾		(0.85	)		(0.97	)		(1.06	)		(1.15	)		1.65			1.86			2.12			2.17
Net investment loss ⁽¹⁾		(2.35	)		(2.09	)		(1.76	)		(2.17	)		(2.40	)		(2.07	)		(1.73	)		(2.12	)
Total gain (loss) from operations		(3.20	)		(3.06	)		(2.82	)		(3.32	)		(0.75	)		(0.21	)		0.39			0.05
Net asset value per Unit at end of period	$	67.88		$	78.56		$	88.29		$	92.35		$	72.43		$	82.52		$	91.50		$	96.43

Total return ⁽⁵⁾		(4.51	)%		(3.75	)%		(3.10	)%		(3.47	)%		(1.02	)%		(0.25	)%		0.43	%		0.06	%

Other Financial Ratios
Ratios to average net asset value
Expenses prior to Trading Advisor incentive fee ^(2)(3)(4)		6.61	%		5.09	%		3.79	%		4.49	%		6.64	%		5.09	%		3.86	%		4.51	%
Trading Advisor incentive fee⁽⁵⁾		0.25	%		0.23	%		0.23	%		0.23	%		—			—			—			—
Total expenses		6.86	%		5.32	%		4.02	%		4.72	%		6.64	%		5.09	%		3.86	%		4.51	%
Net investment loss ^(2)(3)(4)(6)		(6.33	)%		(4.82	)%		(3.51	)%		(4.22	)%		(6.44	)%		(4.89	)%		(3.69	)%		(4.29	)%

Total returns are calculated based on the change in value of a Series A, B, C or I Units during the period. An individual limited 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 Series A, B, C or I 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 other financial ratios are computed net of involuntary waivers of administrative and offering expenses.

For the three months ended June 30, 2014 and 2013, the ratios are net of 2.59% and 1.22% effect of waived administrative expenses, respectively. For the three months ended June 30, 2014 and 2013, the ratios are net of 0.47% and 0.42% effect of waived offering expenses, respectively.

For the six months ended June 30, 2014 and 2013, the ratios are net of 2.46% and 1.30% effect of waived administrative expenses, respectively. For the six months ended June 30, 2014 and 2013, the ratios are net of 0.45% and 0.34% effect of waived offering expenses, respectively.

⁽³⁾

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

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

The Trading Advisors

The Fund’s current trading advisors are Blackwater Capital Management, LLC, Estlander & Partners Ltd., Quantitative Investment Management LLC and Winton Capital Management Ltd (Winton).

Effective June 12, 2013, the General Partner decided to remove Aspect Capital Ltd. as a trading advisor to the Fund and allocate assets to Winton, a new trading advisor to the Fund.

As part of its manager selection process, the General Partner strives to identify the best trading advisors available relative to the Fund’s objectives. The General Partner believes that the addition of Winton’s Diversified Program provides diversification of trading models and market strategies for the Fund.

The Winton Diversified Program is in many ways a natural fit for the Seneca Global Fund, L.P. as a systematic, diversified, futures trading program. It provides diversification for the Fund due to its longer term trend-following approach, as well as its large allocation to non-trend strategies.

Winton is a registered Commodity Trading Advisor and NFA member, managing over $25 billion in assets. Winton’s headquarters are located in London, England. Winton began trading the Winton Diversified Program in October 1997, and the firm’s founder, David Harding, has more than 25 years’ experience developing systematic trading models. Winton also has one of the largest investment research departments in the managed futures industry, with over 120 researchers currently on staff.

The Winton Diversified Program trades in global futures markets across a broad range of sectors, including bonds and interest rates, stock indices, currencies, energy, metals and agricultural commodities. It also trades in over-the-counter currency forward contracts. The Program trades in over 100 markets in total. The Program employs a quantitative or systematic approach, meaning that trading is driven by computer models rather than human discretion. The Program blends trend-following systems over multiple time frames, with more weight assigned to longer term trends. While trend-following is the Program’s primary trading style, there is a significant portfolio allocation to non-trend strategies.

At June 30, 2014, the allocation of trading levels to the Trading Advisors was as follows:

Blackwater	13%
Estlander	20%
QIM	25%
Winton	42%

The General Partner may cause a trading advisor to trade its allocated Fund assets at a trading level of approximately 0.90 – 1.50 times the trading level normally used by the trading advisor employing its own trading program. Thus, the Fund could experience either greater or less volatility and greater or less brokerage commission expenses relative to a client who invests at the normal trading level of the trading programs depending on the amount of leverage used.

Liquidity

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 capital through borrowing. Due to the nature of the Fund’s business, 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 investment in futures 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 Series A, B, C and I Units for the six months ended June 30, 2014 and 2013 were:

Series of Units	2014			2013
A		(4.51	)%		(1.02	)%
B		(3.75	)%		(0.25	)%
C		(3.10	)%		0.43	%
I		(3.47	)%		0.06	%

Past performance is not necessarily indicative of future results.

2014

During the six months ended June, 2014, the Fund experienced a net realized gain on futures and forwards trading of $229,677, a change in unrealized loss on futures and forwards trading of $653,330 and incurred brokerage commissions of $53,219, resulting in a net loss from futures and forwards trading of $476,872. The Fund’s expenses during the six months ended June 30, 2014 consisted of $132,749 in selling agent, custodial and servicing fees, and $667,251 in offering expenses and administrative expenses, of which $426,904 were waived. Additionally, the Fund incurred $185,153 in trading advisor management fees, $71,219 in trading advisor incentive fees, $11,428 in Cash Managers fees and a General Partner fee of $217,148. Interest income of $91,650 and net realized and change in unrealized loss on securities and certificates of deposit of $50,417, combined with Fund expenses resulted in net loss of $1,293,683 for the six months ended June 30, 2014.

During the period ended June 30, 2014, the Fund issued $1,251,565 of Units and redeemed $6,389,353 of Units, and when combined with the net loss, resulted in a net decrease in the Fund’s net asset value for the year from $33,559,701 to $27,128,230.

Discussion of monthly performance for the six months ended June 30, 2014 follows:

January

January saw a broad flight to safety, sparked by a sharp sell-off in emerging market currencies, as investors worried about the impact of Fed tapering and weak Chinese manufacturing on emerging economies. This heightened risk aversion quickly spread to developed markets, which saw declines in equity indices and rallies in bonds, gold and safe haven currencies. Meanwhile, in energy markets, natural gas prices surged due to freezing temperatures across the U.S.

January saw a reversal of many of the most profitable trends from the fourth quarter of 2013, resulting in negative performance for the Fund’s trend-following programs. In equity markets, the Fund’s long positions in the S&P 500 and Nikkei saw losses as global indices fell sharply. Although the Fund has historically been non-correlated to stocks over the long run, in the short term it can have positive or negative correlation depending on whether existing equity trends cause the Fund to be positioned long or short. In currencies, the Fund’s short Japanese yen position suffered as the exchange rate appreciated on safe haven buying. Elsewhere, choppiness in the Euro and Swiss franc also caused losses. The Fund did make gains in interest rates, where long positions in European bonds benefited from fund flows into fixed income markets. In agricultural commodities, the Fund also profited from the continued upward trend in the meat markets. Overall, the Fund finished the month with a loss of 3.36%, 3.24%, 3.13% and 3.19% for Series A, B, C and I Units, respectively.

February

In February, global equities rallied despite weakness in economic data caused by inclement weather. New Fed Chair Janet Yellen reassured investors that interest rate hikes would be unlikely in the current environment and that the gradual tapering of bond purchases would remain contingent on sustained labor market improvement. This relatively dovish stance raised bond prices and weakened the U.S. dollar. Energy prices surged during the month as unusually cold temperatures boosted demand in the U.S., while the escalating crisis in Ukraine threatened to disrupt European supply channels.

The Fund made its largest gains from rising energy markets through long positions in natural gas and crude oil. Additionally, the Fund profited from long positions in global bonds, which rallied on continued accommodative policy guidance from central banks. In currencies, the Fund benefited from long exposure to European exchange rates. Meanwhile, in the agricultural sector, the Fund profited from rising soybean prices due to a drought in Brazil. However, the metals sector caused losses as a rebound in gold and silver on US dollar weakness hurt the Fund’s short positions. Overall, the Fund finished the month with a gain of 1.34%, 1.47%, 1.59% and 1.52% for Series A, B, C and I Units, respectively.

March

March was a choppy month in equity and energy markets, due to the Russia/Ukraine crisis and as China saw its first domestic corporate bond default in a sign of slowing growth. In the U.S., Fed Chair Yellen stirred up fixed income and currency markets by initially suggesting that interest rates hikes might come sooner than expected, then later backtracking on those comments.

The Fund made gains in the agricultural sector, capitalizing on rising price trends in soybeans (due to poor weather in Brazil) and in lean hogs (due to a disease outbreak in the U.S.). However, uncertainty over both the health of China’s economy and the timing of Fed tightening caused whipsaw market action in global stocks, oil markets and U.S. bonds, which generated losses for trend-following strategies in those sectors. Overall, the Fund finished the month with a loss of 2.37%, 2.24%, 2.13% and 2.19% for Series A, B, C and I Units, respectively.

April

In April, equities initially sold off amid concerns over stock valuations and weak economic numbers. Optimism returned and global equities rallied mid-month with the Fed calming fears, stating that they remained committed to supportive monetary policy and noting than the recent weather-induced U.S. growth slowdown would be short-lived. Meanwhile, risks of deflation in Europe led to speculation that the ECB might resort to quantitative easing. In contrast, UK unemployment dipped below the Bank of England’s 7% threshold, prompting speculation that the BOE may begin raising interest rates. Tension surrounding Ukraine and sanctions on Russia drove many commodity markets higher on fears of supply disruptions.

The Fund recorded its largest gains in metals, specifically in nickel whose price rose to a 14-month high due to falling supply as Indonesia, the biggest nickel miner, had banned unprocessed ore exports earlier in the year. In currencies, gains were made from long

positions in the British pound which rose to four year highs on speculation over interest rate hikes. However, this was offset by losses due to a reversal in the Japanese yen. The Fund saw its largest losses in equities due to an early sell off in stock indices, which then caused the Fund to cut its long positions and prevented it from fully benefiting from the market rebound going into month-end. Overall, the Fund finished the month with a loss of 1.61%, 1.48%, 1.37% and 1.43% for Series A, B, C and I Units, respectively.

May

In May, global bond markets rallied as 10-year yields fell to 1.4% in Germany and 2.5% in the U.S. In Europe, this move was driven by investor expectations of a near term interest rate cut and potential future quantitative easing by the European Central Bank to counteract weak economic growth and deflationary risks. Meanwhile in the U.S., Fed Chair Janet Yellen expressed concern over a weak housing recovery, suggesting the Fed could keep interest rates low for longer than previously anticipated. Equity markets interpreted these signals of continued easy monetary policy in a positive light, leading to gains in most developed market stock indices. Volatility in many asset classes continued to decline in May towards historic lows, as exemplified by the VIX index, which fell to the pre-crisis levels of 2007.

The Fund was well positioned to profit from the key moves in fixed income and equities during the month. The bulk of returns came from long positions in bonds, in particular the U.S. 10-year, the U.S. long bond and the Euro Bund. In equities, the largest gains came from long positions in European indices. The Fund had modest losses in currencies as the euro and British pound each saw a sell-off. Agricultural commodities also had a small giveback as upward trending grain prices reversed on improved weather and harvest prospects. Overall, the Fund finished the month with a gain of 1.65%, 1.78%, 1.89% and 1.83% for Series A, B, C and I Units, respectively.

June

In June, equity markets continued to set record highs as the Federal Reserve reiterated its dovish policy stance in light of a weaker U.S. growth outlook. Meanwhile European fixed income markets rallied as the European Central Bank imposed negative deposit rates to stem deflation and encourage bank lending. Only the Bank of England gave any indication that it could soon begin to raise interest rates, which led to further strengthening in the British pound. Violence escalated in the Middle East, as the militant ISIS group seized key regions in Iraq, pushing up oil prices on fears of a supply disruption.

The Fund recorded its largest gains for the month in long equity positions. The Fund profited in currency trading, particularly in the British pound, which rose on signals of a tightening bias at the Bank of England. The portfolio also capitalized on rising energy prices with its long oil positions. However, short positions in gold and silver lost money, as demand climbed for these safe haven assets on fears of a full-blown civil war in Iraq. Meanwhile, choppy price movements in U.S. fixed income markets whipsawed the Fund resulting in a small loss. In agricultural markets, long soybean positions were hurt as prices fell with U.S. farmers planting a record crop. These losses offset gains, leading the Fund to roughly flat performance for the month. Overall, the Fund finished the month with a loss of 0.14% for Series A, a flat 0.00% for Series B, a gain of 0.11% and 0.04% for Series C and I Units, respectively.

2013

During the six months ended June, 2013, the Fund experienced a net realized gain on futures and forwards trading of $2,017,529, a change in unrealized loss on futures and forwards trading of $601,578 and incurred brokerage commissions of $86,782, resulting in a net gain from futures and forwards trading of $1,329,169. The Fund’s expenses during the six months ended June 30, 2013 consisted of $189,332 in selling agent, custodial and servicing fees, and $751,611 in offering expenses and administrative expenses, of which $371,406 were waived. Additionally, the Fund incurred $275,545 in trading advisor management fees, $17,237 in Cash Managers fees and a General Partner fee of $341,895. Interest income of $170,511 and net realized and change in unrealized loss on securities and certificates of deposit of $123,035, combined with Fund expenses resulted in net income of $172,431 for the six months ended June 30, 2013.

During the period ended June 30, 2013, the Fund issued $3,676,219 of Units and redeemed $12,868,082 of Units, and when combined with the net income, resulted in a net decrease in the Fund’s net asset value for the year from $50,003,744 to $40,984,312.

Discussion of monthly performance for the six months ended June 30, 2013 follows:

January

Spurred on by the resolution of the U.S. “fiscal cliff” negotiations, markets began 2013 with a strong risk appetite. This led to a rally in global equities and industrial commodities and caused a sell-off in safe haven bonds. In Europe, investors gained confidence that the region’s sovereign debt crisis had been contained, helping the euro strengthen against other currencies. Meanwhile, Japan’s new government implemented a stimulus program consisting of major fiscal spending, coupled with measures to weaken the yen to help the country’s exporters.

The Fund started the year on a positive note, as it profited from long positions in stock indices and energy, as well as long positions in the euro and short positions in the Japanese yen. These gains were partially offset by losses from long fixed income positions, as bond yields and interest rates climbed during the month. Overall, the Fund finished the month with a gain of 2.59%, 2.72%, 2.84% and 2.77% for Series A, B, C and I Units, respectively.

February

Although February began with a continuation of January’s risk-seeking market trends, the second half of the month saw “risk-off” price reversals across many sectors. Weak European data signaled a region-wide economic contraction. The UK suffered a credit rating downgrade as it is on the verge of a triple-dip recession. Meanwhile, Italian voters toppled the country’s incumbent government with an election result that repudiated austerity as a means of managing Europe’s sovereign debt crisis. In the U.S., minutes from the most recent Fed meeting hinted at a sooner than expected slowdown of monetary stimulus, frightening investors who anticipated longer term quantitative easing.

The Fund entered February with “risk-on” exposures in many of the markets it trades, including long positions in equities, industrial commodities, the euro and high-yielding currencies. February’s market reversals caused losses in a number of these positions. The largest losses came from energy, as oil prices fell late in the month on concerns over global demand as well as U.S. supply hitting a 20-year high due to shale fracking. In currencies, the decline of the euro detracted from performance. The Fund did however make gains in fixed income with long positions in Japanese bonds. In the agricultural sector, easing drought conditions in the Midwest lowered wheat prices, helping the Fund’s short position. In metals, the Fund made profits from a short position in gold, offsetting losses in base metals. Overall, the Fund finished the month with a loss of 1.05%, 0.92%, 0.81% and 0.87% for Series A, B, C and I Units, respectively.

March

In March, financial headlines were dominated by the banking crisis in Cyprus. Eurozone members led by Germany made the release of bailout funds contingent on a Cypriot financial contribution through a one-time “tax” on bank deposits. This action sparked protests over the plan’s fairness. A last minute compromise deal exempted smaller insured deposits from capital seizure. Investors feared that the Cyprus bailout might create a precedent for haircutting depositors at troubled banks in Spain and Italy. This prompted a sell-off in the euro, a slide in southern European stock markets and a rally in safe haven German bunds. Meanwhile, in the U.S., equities climbed with largely positive economic data and a statement from Fed Chairman Bernanke that he saw no evidence of a stock bubble. In Japan, monetary easing by the Abe government continued, boosting bond and equity markets and depreciating the yen.

The Fund profited in the currency sector in March, particularly from a long position in the Mexican peso. The Fund also gained from a fall in industrial metals prices, with short positions in aluminum and copper, as investors worried about the impact of a clampdown on Chinese property speculation. Profits were also made from long positions in stocks, especially in the U.S. The Fund was down slightly in fixed income as gains from being long Japanese bonds were offset by losses in the choppy U.S. bond market. The Fund finished the month with a net gain of 0.89%, 1.02%, 1.14% and 1.07% for Series A, B, C and I Units, respectively.

April

April, economic data in China confirmed a slowdown in growth, while U.S. GDP estimates for the first quarter were weaker than expected. This led to a sell-off in industrial commodities such as energy and base metals, and a rally in Treasury bonds. The price of gold tumbled mid-month, triggered by reports that Cyprus might sell part of its gold reserves to pay down the country’s debt. Furthermore, the current absence of global inflation has reduced the attractiveness of precious metals that are often used as a hedge against inflation. Meanwhile, the Japanese central bank continued its policy of monetary stimulus, further weakening the yen and boosting the Nikkei stock index.

The Fund entered the month with short positions in gold and copper, which profited on the decline in precious and base metals prices. The Fund also had a positive contribution from its long bond positions, particularly in the U.S., where the fixed income market rallied on disappointing economic growth. Partly offsetting these gains were losses from long exposures to declining oil markets, as well as from trend reversals in agricultural markets such as corn. Overall, the Fund finished the month with a gain of 2.38%, 2.51%, 2.63% and 2.56% for Series A, B, C and I Units, respectively.

May

In May, improving economic data in the U.S. drove stock indices higher, but also prompted the Fed to signal that it might soon taper its quantitative easing program. Fixed income markets reacted negatively to the prospect of a reduction in the Fed’s $85 billion in monthly purchases of Treasury bonds and mortgage-backed securities. U.S. 10-year Treasury bond yields jumped 46 basis points from 1.67% to 2.13% during the month, while international bond markets also sold off. Meanwhile in Japan, the high flying Nikkei index, which at one point was up 50% on the year, fell abruptly by 13% over the last 9 days of the month. This was caused by investors taking profits after signs of slowing Chinese growth and impending U.S. monetary tightening.

May proved to be a challenging month for the Fund’s trend-following strategies. The majority of losses were a result of sharp declines in global bond markets, particularly in the U.S. and Europe, which hurt the Fund’s long positions. The Fund’s trading systems responded by cutting back bond positions substantially, standing ready to reposition as new trends emerge, whether bullish or bearish. In energy markets, long positions in natural gas suffered as prices declined on higher than expected inventory levels. The Fund did however make a profit in equity indices through its long positions across the globe. The Fund was also positive in agricultural commodities, benefitting from a rally in soybeans. Overall, the Fund finished the month with a loss of 2.40%, 2.27%, 2.16% and 2.22% for Series A, B, C and I Units, respectively.

June

In June, the Fed reaffirmed its desire to phase out its quantitative easing program as long as U.S. economic data continues to improve. Markets interpreted this as the beginning of the end of an era of ultra-easy monetary policy. As a result, global equities and bonds sold off sharply. Ironically, the largest stock market declines were not in the U.S. Prospective tightening by the U.S. Federal Reserve had a greater impact in Europe, where the economic recovery lags the U.S., and in Asia and emerging markets, where a slowdown in China also worried investors. Meanwhile, the Fed’s new stance caused gold prices to plummet to levels last seen in 2010, as the risk of inflation due to loose monetary conditions diminished. The market moves in June were a continuation of the sharp and sudden trend reversals that began at the end of May.

These price patterns are particularly difficult for trend-following systems to navigate. The Fund came into June with long exposure to global equities. Although these positions were reduced significantly over the month, the Fund nevertheless saw losses in this sector, particularly in Europe and Canada. In currencies, choppy price movements in the euro and British pound sterling against the U.S. dollar were also a detriment to performance. Losses in bonds and interest rates were muted in June, despite the market sell-off, as the Fund had unwound most of its long positions relatively early in the month. By the end of the month, most of the Fund’s trading advisors had systematically moved to net short positions in fixed income instruments. On the positive side, the Fund was able to profit from the downward trend in precious metals, such as gold and silver, as well as in industrial metals, such as copper. Overall, the Fund finished the month with a loss of 3.28%, 3.16%, 3.05% and 3.11% for Series A, B, C and I Units, respectively.

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 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 attempts to decrease market risk through maintenance of a margin-to-equity ratio that rarely exceeds 30%.

In addition to subjecting the Fund to market risk, upon entering into futures and forward currency 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 foreign 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 foreign 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 utilizes only those counterparties that it believes to be creditworthy for the Fund. There can be no assurance, however, that any clearing member, clearinghouse or other counterparty will be able to meet its obligations to the Fund. All positions of the Fund are valued each day on a mark-to-market basis.

The Fund may invest in U.S. Treasury securities, U.S. and foreign government sponsored enterprise notes, commercial paper, corporate notes and certificates of deposit. Should an issuing entity default on its obligation to the Fund and such entity is not backed by the full faith and credit of the U.S. government, the Fund bears the risk of loss of the amount expected to be received. The Fund minimizes this risk by only investing in securities and certificates of deposit of firms with high quality debt ratings.

Significant Accounting Estimates

A summary of the Fund’s significant accounting policies are included in Note 1 to the Financial Statements.

The Fund’s most significant accounting policy is the valuation of its assets invested in U.S. and foreign futures and forward currency contracts, and fixed income investments. The Fund’s futures contracts are exchange-traded, with the fair value of these contracts based on exchange settlement prices. The fair values of non-exchange-traded contracts, such as forward currency contracts, are based on third-party quoted dealer values on the interbank market. The fair value of money market funds is based quoted market prices for identical shares. U.S. Treasury securities, which are stated at fair value based on quoted market prices for identical assets in an active market. Notes of U.S. and foreign government sponsored enterprises, as well as certificates of deposit commercial paper and corporate notes, are stated at fair value based on quoted market prices for similar assets in an active market. Given the valuation sources, there is little judgment or uncertainty involved in the valuation of these assets, and it is unlikely that materially different amounts would be reported under different valuation methodologies or assumptions.

Contractual Obligations

The Fund does not have any contractual obligations of the type contemplated by Item 303(a)(5) of Regulation S-K. The Fund’s sole business is trading futures and forward currency contracts, both long (contracts to buy) and short (contracts to sell).

Item 3. Quantitative and Qualitative Disclosures about Market Risk

A smaller reporting company is not required to provide the information under this item.

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, 2014 (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 period ended June 30, 2014 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.

A smaller reporting company is not required to provide the information under this item.

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, 2014. Under the Partnership Agreement, redemptions may be made by a limited partner as of the close of business day each Tuesday at the net asset value of the redeemed Units (or portion thereof) on that day. Redemptions of Units during the three months ended June 30, 2014 were as follows:

	April		May		June		Total
A Units
Units redeemed		2,833.8155		1,266.5407		3,946.9025		8,007.2587
Average net asset value per Unit	$	67.14	$	67.45	$	67.35	$	67.29

B Units
Units redeemed		3,203.9664		5,376.3864		3,670.6511		12,251.0039
Average net asset value per Unit	$	77.28	$	77.48	$	77.88	$	77.55

C Units
Units redeemed		2,757.3879		724.3675		1,432.1213		4,913.8767
Average net asset value per Unit	$	86.77	$	86.64	$	87.87	$	87.07

I Units
Units redeemed		4,854.2428		6,740.3612		2,973.3791		14,567.9831
Average net asset value per Unit	$	90.94	$	91.07	$	91.64	$	91.14

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

The following exhibits are filed herewith or incorporated by reference.

Exhibit No.	Description of Exhibit
1.1^(a)	Form of Selling Agreement

4.1^(d)	Fourth Amended and Restated Limited Partnership Agreement

9.1^(c)	Delaware Amended and Restated Certificate of Limited Partnership

10.1^(d)	Form of Subscription Agreement

10.5^(b)	Third Amended and Restated Trading Advisory Agreement with Aspect Capital Ltd.

10.6^(b)	Trading Advisory Agreement with Estlander & Partners Ltd.

10.7^(b)	Trading Advisory Agreement with Blackwater Capital Management, L.L.C.

10.8^(e)	Trading Advisory Agreement with Quantitative Investment Management, LLC

10.9^(f)	Trading Advisory Agreement with Winton Capital Management, Ltd.

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

101.INS	XBRL Instance Document

101.SCH	XBRL Taxonomy Extension Schema Document

101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

101.LAB	XBRL Taxonomy Extension Label Linkbase Document

101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

^(a)

Previously filed as an exhibit to Pre-Effective Amendment No. 3 to the Registration Statement on Form S-1 (SEC File No.: 333-148049) on May 23, 2008 and incorporated herein by reference.

^(b)

Previously filed as an exhibit to Post-Effective Amendment No. 3 to the Registration Statement on form S-1 (SEC File No.: 333-148049) on April 19, 2011 and incorporated herein by reference.

^(c)

Previously filed on May 3, 2011 with Form 8-K (File No. 000-53453), and incorporated herein by reference.

^(d)

Previously filed on August 15, 2011 as an exhibit to the Post-Effective Amendment No. 1 to the Registration Statement on Form S-1 (Reg. No. 333-175052), and incorporated herein by reference.

^(e)

Previously filed on March 28, 2013 as an exhibit to Form 10-K (File No. 000-53453), and incorporated herein by reference.

^(f)

Previously filed on March 28, 2014 as an exhibit to Form 10-K (File No. 000-53453), 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 14, 2014	SENECA GLOBAL FUND, L.P.


	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)

SENECA GLOBAL FUND, L.P. - FORM 10-Q - August 14, 2014

Attached files

SENECA GLOBAL FUND, L.P. Reports