Derivative Instruments

12 Months Ended

Dec. 31, 2025

Derivative Instruments

Derivative Instruments

Note 11. Derivative Instruments

The Partnership follows the provisions of FASB ASC 815, Derivatives and Hedging. FASB ASC 815 is intended to improve transparency in financial reporting by requiring enhanced disclosures of an entity’s derivative instruments and hedging activities and their effects on the entity’s financial position, financial performance, and cash flows. FASB ASC 815 applies to all derivative instruments within the scope of FASB ASC 815-10-05. It also applies to non-derivative hedging instruments and all hedged items designated and qualifying as hedges under FASB ASC 815-10-05. FASB ASC 815 amends the current qualitative and quantitative disclosure requirements for derivative instruments and hedging activities set forth in FASB ASC 815-10-05 and generally increases the level of disaggregation that will be required in an entity’s financial statements. FASB ASC 815 requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements (see Trading Activities and Related Risks, Note 9).

The Partnership’s business is speculative trading. The Partnership intends to close out all futures, options on futures and forward contracts prior to their expiration. The Partnership trades in futures and other commodity interest contracts and is therefore a party to financial instruments with elements of off-balance sheet market risk and credit risk. In entering into these contracts, the Partnership faces the market risk that these contracts may be significantly influenced by market conditions, such as interest rate volatility, resulting in such contracts being less valuable. The Partnership minimizes market risk through real-time monitoring of open positions, diversification of the portfolio and maintenance of a margin-to-equity ratio that rarely exceeds 25%.

The Partnership does not designate any derivative instruments as hedging instruments under FASB ASC 815-10-05.

For the years ended December 31, 2025, 2024 and 2023, the monthly average number of futures contracts bought and sold was 3,095, 4,593 and 5,220, respectively. The following tables summarize the quantitative information required by FASB ASC 815:

Fair Values of Derivative Instruments at December 31, 2025 and December 31, 2024


		Consolidated		Asset			Liability
		Statements of Financial		Derivatives			Derivatives
Type of Contract		Condition Location		December 31, 2025			December 31, 2025			Fair Value

Agriculturals contracts		Net unrealized gain (loss) on open futures contracts		$	108,369		$	(19,884)		$	88,485

Currencies contracts		Net unrealized gain (loss) on open futures contracts			199,573			(27,740)			171,833

Energy contracts		Net unrealized gain (loss) on open futures contracts			91,788			(67,259)			24,529

Interest rates contracts		Net unrealized gain (loss) on open futures contracts			178,497			(76,734)			101,763

Meats contracts		Net unrealized gain (loss) on open futures contracts			2,598			(710)			1,888

Metals contracts		Net unrealized gain (loss) on open futures contracts			702,874			(137,794)			565,080

Soft commodities contracts		Net unrealized gain (loss) on open futures contracts			96,833			(35,250)			61,583

Stock indices contracts		Net unrealized gain (loss) on open futures contracts			157,155			(31,573)			125,582

Total				$	1,537,687		$	(396,944)		$	1,140,743


		Consolidated		Asset			Liability
		Statements of Financial		Derivatives			Derivatives
Type of Contract		Condition Location		December 31, 2024			December 31, 2024			Fair Value

Agriculturals contracts		Net unrealized gain (loss) on open futures contracts		$	25,255		$	(42,038)		$	(16,783)

Currencies contracts		Net unrealized gain (loss) on open futures contracts			524,044			(36,955)			487,089

Energy contracts		Net unrealized gain (loss) on open futures contracts			56,754			(104,935)			(48,181)

Interest rates contracts		Net unrealized gain (loss) on open futures contracts			330,466			(199,333)			131,133

Meats contracts		Net unrealized gain (loss) on open futures contracts			56,347			(6,145)			50,202

Metals contracts		Net unrealized gain (loss) on open futures contracts			162,117			(141,299)			20,818

Soft commodities contracts		Net unrealized gain (loss) on open futures contracts			376,251			(16,713)			359,538

Stock indices contracts		Net unrealized gain (loss) on open futures contracts			37,620			(178,823)			(141,203)

Total				$	1,568,854		$	(726,241)		$	842,613

The Effect of Derivative Instruments on the Consolidated Statements of Operations for the Years Ended December 31, 2025, 2024 and 2023


				Years Ended December 31,
Type of Contract		Line Item in Consolidated Statements of Operations		2025			2024			2023
Futures contracts
Agriculturals contracts		Net gains (losses) from futures trading		$	(102,008)		$	687,153		$	(404,330)
Currencies contracts		Net gains (losses) from futures trading			(193,423)			301,851			283,290
Energy contracts		Net gains (losses) from futures trading			(902,820)			(1,284,447)			(579,975)
Interest rates contracts		Net gains (losses) from futures trading			(1,034,372)			(973,813)			(1,240,329)
Meats contracts		Net gains (losses) from futures trading			260,243			(107,458)			680,609
Metals contracts		Net gains (losses) from futures trading			2,739,756			(1,296,744)			(147,341)
Soft commodities contracts		Net gains (losses) from futures trading			(100,345)			2,284,425			1,921,586
Stock indices contracts		Net gains (losses) from futures trading			1,473,634			696,150			(95,425)
Total futures contracts		Net gains (losses) from futures trading			2,140,665			307,117			418,085


Line Item in Consolidated Statements of Operations	For years ended December 31,
	2025			2024			2023

Net gains (losses) from futures trading
Realized	$	1,842,535		$	350,205		$	759,456
Change in unrealized		298,130			(43,088)			(341,371)
Total realized and change in unrealized net gains (losses) from futures trading	$	2,140,665		$	307,117		$	418,085

The tables below show the gross amounts of recognized derivative assets and gross amounts offset in the accompanying Consolidated Statements of Financial Condition.

Offsetting of Derivative Assets

As of December 31, 2025


								Net Amount of
					Gross Amounts			Unrealized Gain/(Loss)
					Offset in the			Presented in
		Gross Amount of			Consolidated			the Consolidated
		Recognized			Statements of			Statements of
Type of Instrument		Assets			Financial Condition			Financial Condition

Total U.S. and foreign futures contracts		$	1,537,687		$	(396,944)		$	1,140,743

Offsetting of Derivative Liabilities

As of December 31, 2025


								Net Amount of
					Gross Amounts			Unrealized Gain/(Loss)
					Offset in the			Presented in
		Gross Amount of			Consolidated			the Consolidated
		Recognized			Statements of			Statements of
Type of Instrument		Liabilities			Financial Condition			Financial Condition

Total U.S. and foreign futures contracts		$	396,944		$	(396,944)		$	—

Derivative Assets and Liabilities and Collateral Received by Counterparty

As of December 31, 2025


					Gross Amounts Not Offset in the Consolidated
					Statements of Financial Condition
		Net Amount of
		Unrealized Gain/(Loss)
		Presented in
		the Consolidated
		Statements of			Financial			Cash Collateral
Counterparty		Financial Condition			Instruments			Pledged			Net Amount

ADM Investor Services, Inc.		$	349,391		$	—		$	—		$	349,391
R.J. O'Brien & Associates, LLC, a StoneX company			791,352			—			—			791,352
Total		$	1,140,743		$	—		$	—		$	1,140,743

Offsetting of Derivative Assets

As of December 31, 2024


								Net Amount of
					Gross Amounts			Unrealized Gain/(Loss)
					Offset in the			Presented in
		Gross Amount of			Consolidated			the Consolidated
		Recognized			Statements of			Statements of
Type of Instrument		Assets			Financial Condition			Financial Condition

Total U.S. and foreign futures contracts		$	1,568,854		$	(726,241)		$	842,613

Offsetting of Derivative Liabilities

As of December 31, 2024


								Net Amount of
					Gross Amounts			Unrealized Gain/(Loss)
					Offset in the			Presented in
		Gross Amount of			Consolidated			the Consolidated
		Recognized			Statements of			Statements of
Type of Instrument		Liabilities			Financial Condition			Financial Condition

Total U.S. and foreign futures contracts		$	726,241		$	(726,241)		$	—

Derivative Assets and Liabilities and Collateral Received by Counterparty

As of December 31, 2024


					Gross Amounts Not Offset in the Consolidated
					Statements of Financial Condition
		Net Amount of
		Unrealized Gain/(Loss)
		Presented in
		the Consolidated
		Statements of			Financial			Cash Collateral
Counterparty		Financial Condition			Instruments			Pledged			Net Amount

ADM Investor Services, Inc.		$	(33,235)		$	—		$	33,235		$	—
R.J. O'Brien & Associates, LLC			875,848			—			—			875,848
Total		$	842,613		$	—		$	33,235		$	875,848