UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


x	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended: ~~March 31,~~June 30, 2022

o

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

~~For the Transition Period from ______ to _______~~

Commission File Number: 000-50725

NESTOR PARTNERS

(Exact name of registrant as specified in its charter)


New Jersey~~NEW JERSEY~~		22-2149317
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

c/o MILLBURN RIDGEFIELD CORPORATION

55 West 46^th Street, 31^st Floor

New York, NY 10036

(Address of principal executive offices) (Zip code)

(212) 332-7300

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
none	none	none

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

Yes x No o

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated ~~filer”,~~filer,” “accelerated filer,” “smaller reporting ~~company”,~~company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer o	Accelerated filer o
Non-accelerated filer o	Smaller reporting company x
	Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.o

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

Yes o NaN x


PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS



Nestor Partners
Financial statements
For the three and six months ended ~~March 31,~~June 30, 2022 and 2021 (unaudited)

Statements of Financial Condition (a)						1
Condensed Schedules of Investments (a)						2
Statements of Operations (b)						6
Statements of Changes in Partners' Capital ~~(b)~~(c)						78
Statements of Financial Highlights (b)						89
Notes to the Financial Statements						910

(a) At ~~March 31,~~June 30, 2022 (unaudited) and December 31, 2021
(b) For the three and six months ended ~~March 31,~~June 30, 2022 and 2021 (unaudited)
(c) For the six months ended June 30, 2022 and 2021 (unaudited)

‎


Nestor Partners	Nestor Partners				Nestor Partners
Statements of Financial Condition	Statements of Financial Condition				Statements of Financial Condition

		March 31, 2022 (unaudited)		December 31, 2021		June 30, 2022 (unaudited)		December 31, 2021
ASSETS

EQUITY IN TRADING ACCOUNTS:
Investments in U.S. Treasury notes − at fair value
(amortized cost $20,231,075 and $19,568,494)	$	20,219,062	$	19,563,280
(amortized cost $20,623,146 and $19,568,494)					$	20,490,580	$	19,563,280
Net unrealized appreciation on open futures and forward
currency contracts		3,222,286		481,160		5,056,961		481,160
Due from brokers, net		4,673,789		3,826,824		5,605,257		3,826,824
Cash denominated in foreign currencies (cost $587,281
Cash denominated in foreign currencies (cost $56,480
and $1,080,882)		579,542		1,072,270		41,968		1,072,270

Total equity in trading accounts		28,694,679		24,943,534		31,194,766		24,943,534

INVESTMENTS IN U.S. TREASURY NOTES − at fair value
(amortized cost $88,209,958 and $85,727,554)		88,068,317		85,711,769
(amortized cost $94,136,397 and $85,727,554)						93,699,882		85,711,769

CASH AND CASH EQUIVALENTS		9,742,601		8,987,690		10,602,232		8,987,690

ACCRUED INTEREST RECEIVABLE		504,710		676,077		512,733		676,077

TOTAL	$	127,010,307	$	120,319,070	$	136,009,613	$	120,319,070

LIABILITIES AND PARTNERS' CAPITAL

LIABILITIES:
Capital contributions received in advance					$	486,600	$	-
Net unrealized depreciation on open futures and forward
currency contracts	$	650,340	$	766,206		306,670		766,206
Accrued brokerage fees		179,024		187,123		192,367		187,123
Due to brokers, net		-		93,087		-		93,087
Cash denominated in foreign currencies (cost $1,094,142
Cash denominated in foreign currencies (cost $144,876
and $177,683)		1,070,298		177,244		143,575		177,244
Accrued expenses		98,373		25,658		130,754		25,658
Capital withdrawals payable to Limited Partners		600,435		458,676		598,953		458,676
Capital withdrawals payable to General Partner		-		250,478		-		250,478
Accrued profit share		109,775		-		893,699		-

Total liabilities		2,708,245		1,958,472		2,752,618		1,958,472

PARTNERS' CAPITAL		124,302,062		118,360,598		133,256,995		118,360,598

TOTAL	$	127,010,307	$	120,319,070	$	136,009,613	$	120,319,070


See notes to financial statements (unaudited)

Nestor Partners
Condensed Schedule of Investments
March 31, 2022 (unaudited)
Futures and Forward Currency Contracts
Net Unrealized
‎Appreciation/
‎(Depreciation) as a % of
‎Partners' Capital
Net Unrealized
‎Appreciation/
‎(Depreciation)
FUTURES CONTRACTS
Long futures contracts:
Currencies
0.00
%
$
1,047
Energies
(0.30)
(372,710)
Grains
(0.36)
(447,719)
Interest rates
(0.07)
(92,719)
Livestock
(0.01)
(13,020)
Metals
1.25
1,554,746
Softs
0.12
154,268
Stock indices
(0.13)
(168,511)
Total long futures contracts
0.50
615,382
Short futures contracts:
Currencies
0.04
52,442
Energies
0.01
8,774
Grains
0.05
67,388
Interest rates
0.64
791,793
Livestock
0.00
1,640
Metals
(1.15)
(1,424,727)
Softs
(0.01)
(11,800)
Stock indices
0.46
570,700
Total short futures contracts
0.04
56,210
TOTAL INVESTMENTS IN FUTURES CONTRACTS − Net
0.54
671,592
FORWARD CURRENCY CONTRACTS
Total long forward currency contracts
1.49
1,852,838
Total short forward currency contracts
0.04
47,516
TOTAL INVESTMENTS IN FORWARD CURRENCY
CONTRACTS − Net
1.53
1,900,354
TOTAL
2.07
%
$
2,571,946
(Continued)


Nestor Partners
Condensed Schedule of Investments
June 30, 2022 (unaudited)

Futures and Forward Currency Contracts	Net Unrealized ‎Appreciation/ ‎(Depreciation) as a % of ‎Partners' Capital			Net Unrealized ‎Appreciation/ ‎(Depreciation)

FUTURES CONTRACTS
Long futures contracts:
Currencies	(0.00)	%	$	(790)
Energies	(0.02)			(22,121)
Interest rates:
2 Year U.S. Treasury Note (97 contracts, settlement date September 2022)	0.06			76,930
5 Year U.S. Treasury Note (90 contracts, settlement date September 2022)	0.08			105,008
10 Year U.S. Treasury Note (26 contracts, settlement date September 2022)	0.04			48,094
30 Year U.S. Treasury Bond (11 contracts, settlement date September 2022)	0.03			34,500
Other	1.28			1,714,354

Total interest rates	1.49			1,978,886

Livestock	(0.00)			(5,840)
Metals	(0.99)			(1,307,620)
Softs	0.00			250
Stock indices	(0.05)			(65,059)

Total long futures contracts	0.43			577,706

Short futures contracts:
Currencies	(0.00)			(1,468)
Energies	0.57			756,802
Grains	0.53			706,688
Interest rates	(0.00)			(2,146)
Livestock	(0.00)			(150)
Metals	1.50			1,999,591
Softs	0.06			83,811
Stock indices	0.51			674,736

Total short futures contracts	3.17			4,217,864

TOTAL INVESTMENTS IN FUTURES CONTRACTS − Net	3.60			4,795,570
FORWARD CURRENCY CONTRACTS
Total long forward currency contracts	(1.30)			(1,734,972)
Total short forward currency contracts	1.27			1,689,693

TOTAL INVESTMENTS IN FORWARD CURRENCY
CONTRACTS − Net	(0.03)			(45,279)

TOTAL	3.57	%	$	4,750,291

				(Continued)



Nestor Partners
Condensed Schedule of Investments
June 30, 2022 (unaudited)

	U.S. TREASURY NOTES
	Face ‎Amount	Description	Fair Value as a % of Partners' Capital			Fair Value

$	31,170,000	U.S. Treasury notes, 1.625%, 08/15/2022	23.39	%	$	31,175,479
	31,000,000	U.S. Treasury notes, 1.625%, 11/15/2022	23.21			30,927,949
	25,570,000	U.S. Treasury notes, 2.000%, 02/15/2023	19.12			25,472,614
	26,870,000	U.S. Treasury notes, 1.750%, 05/15/2023	19.97			26,614,420

		TOTAL INVESTMENTS IN U.S. TREASURY
		NOTES (amortized cost $114,759,543)	85.69	%	$	114,190,462

	See notes to financial statements (unaudited)					(Concluded)

Nestor Partners
Condensed Schedule of Investments
March 31, 2022 (unaudited)
U.S. TREASURY NOTES
Face
‎Amount
Description
Fair Value as a % of Partners' Capital
Fair Value
$
26,270,000
U.S. Treasury notes, 1.750%, 05/15/2022
21.17
%
$
26,315,152
28,470,000
U.S. Treasury notes, 1.625%, 08/15/2022
22.97
28,553,964
31,000,000
U.S. Treasury notes, 1.625%, 11/15/2022
25.00
31,070,840
22,270,000
U.S. Treasury notes, 2.000%, 02/15/2023
17.98
22,347,423
TOTAL INVESTMENTS IN U.S. TREASURY
NOTES (amortized cost $108,441,033)
87.12
%
$
108,287,379
See notes to financial statements (unaudited)
(Concluded)

‎


Nestor Partners
Condensed Schedule of Investments
December 31, 2021

Futures and Forward Currency Contracts	Net Unrealized ‎Appreciation/ ‎(Depreciation) as a % of ‎Partners' Capital			Net Unrealized ‎Appreciation/ ‎(Depreciation)

FUTURES CONTRACTS
Long futures contracts:
Currencies	0.00	%	$	3,688
Energies	0.42			492,605
Grains	0.01			12,662
Interest rates	(0.79)			(939,443)
Livestock	(0.01)			(5,370)
Metals	1.01			1,197,013
Softs	(0.01)			(15,847)
Stock indices	0.19			224,522

Total long futures contracts	0.82			969,830

Short futures contracts:
Currencies	0.00			1,398
Energies	0.06			65,449
Grains	0.01			6,149
Interest rates	0.04			49,461
Livestock	0.00			5,170
Metals	(0.89)			(1,047,948)
Softs	0.01			6,910
Stock indices	0.03			38,964

Total short futures contracts	(0.74)			(874,447)

TOTAL INVESTMENTS IN FUTURES CONTRACTS − Net	0.08			95,383
FORWARD CURRENCY CONTRACTS
Total long forward currency contracts	1.43			1,688,217
Total short forward currency contracts	(1.75)			(2,068,646)

TOTAL INVESTMENTS IN FORWARD CURRENCY
CONTRACTS − Net	(0.32)			(380,429)

TOTAL	(0.24)	%	$	(285,046)

				(Continued)

‎


Nestor Partners
Condensed Schedule of Investments
December 31, 2021

	U.S. TREASURY NOTES
	Face ‎Amount	Description	Fair Value as a % of Partners' Capital			Fair Value

$	30,700,000	U.S. Treasury notes, 2.500%, 02/15/2022	26.01	%	$	30,788,742
	47,840,000	U.S. Treasury notes, 2.375%, 03/15/2022	40.61			48,062,381
	26,270,000	U.S. Treasury notes, 1.750%, 05/15/2022	22.32			26,423,926

		TOTAL INVESTMENTS IN U.S. TREASURY
		NOTES (amortized cost $105,296,048)	88.94	%	$	105,275,049

	See notes to financial statements (unaudited)					(Concluded)

‎


Nestor Partners	Nestor Partners				Nestor Partners
Statements of Operations (unaudited)	Statements of Operations (unaudited)				Statements of Operations (unaudited)



		For the three months ended				For the three months ended
		March 31, 2022		March 31, 2021		June 30, 2022		June 30, 2021
INVESTMENT INCOME:
Interest income, net	$	59,612	$	8,650	$	300,824	$	11,778

EXPENSES:
Brokerage fees		644,565		679,262		690,231		714,130
Administrative expenses		72,714		73,531		80,440		76,412
Custody fees and other expenses		5,248		5,227		5,787		5,185
Total expenses		722,527		758,020		776,458		795,727

NET INVESTMENT LOSS		(662,915)		(749,370)		(475,634)		(783,949)

NET REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) on closed positions:
Futures and forward currency contracts		5,144,122		7,651,060		9,263,995		12,636,224
Foreign exchange transactions		(50,478)		48,140		(59,221)		39,568
Net change in unrealized:
Futures and forward currency contracts		2,856,992		(3,356,760)		2,178,345		(2,830,943)
Foreign exchange translation		24,278		(208,560)		(29,316)		(32,715)
Net gains (losses) from U.S. Treasury notes:
Net losses from U.S. Treasury notes:
Realized		(687)		(366)		(12,795)		-
Net change in unrealized		(132,655)		28,600		(415,427)		(21,535)

Total net realized and unrealized gains		7,841,572		4,162,114		10,925,581		9,790,599


NET INCOME		7,178,657		3,412,744		10,449,947		9,006,650
LESS PROFIT SHARE TO GENERAL PARTNER		109,775		237		785,510		9,140
NET INCOME AFTER PROFIT SHARE TO
GENERAL PARTNER	$	7,068,882	$	3,412,507	$	9,664,437	$	8,997,510

See notes to financial statements (unaudited)

Nestor Partners
Statements of Changes in Partners' Capital (unaudited)
For the three months ended March 31, 2022:
Limited Partners
Special Limited Partners
New Profit Memo Account
General Partner
Total
PARTNERS' CAPITAL-
January 1, 2022
$
56,461,012
$
59,453,090
$
-
$
2,446,496
$
118,360,598
Contributions
-
-
-
-
-
Withdrawals
(855,355)
(272,063)
-
-
(1,127,418)
Net income
3,198,913
3,819,667
-
160,077
7,178,657
General Partner's allocation:
New Profit-Accrued
(108,651)
(1,124)
-
-
(109,775)
PARTNERS' CAPITAL-
March 31, 2022
$
58,695,919
$
62,999,570
$
-
$
2,606,573
$
124,302,062
For the three months ended March 31, 2021:
Limited Partners
Special Limited Partners
New Profit Memo Account
General Partner
Total
PARTNERS' CAPITAL-
January 1, 2021
$
59,408,722
$
56,659,557
$
-
$
2,480,650
$
118,548,929
Contributions
-
-
-
-
-
Withdrawals
(3,383,770)
(105,758)
-
-
(3,489,528)
Net income
1,475,843
1,853,515
-
83,386
3,412,744
General Partner's allocation:
New Profit-Accrued
(237)
-
-
-
(237)
PARTNERS' CAPITAL-
March 31, 2021
$
57,500,558
$
58,407,314
$
-
$
2,564,036
$
118,471,908
See notes to financial statements (unaudited)


Nestor Partners
Statements of Operations (unaudited)



		For the six months ended
		June 30, 2022		June 30, 2021
INVESTMENT INCOME:
Interest income, net	$	360,436	$	20,428

EXPENSES:
Brokerage fees		1,334,796		1,393,392
Administrative expenses		153,154		149,943
Custody fees and other expenses		11,035		10,412

Total expenses		1,498,985		1,553,747

NET INVESTMENT LOSS		(1,138,549)		(1,533,319)

NET REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) on closed positions:
Futures and forward currency contracts		14,408,117		20,287,284
Foreign exchange transactions		(109,699)		87,708
Net change in unrealized:
Futures and forward currency contracts		5,035,337		(6,187,703)
Foreign exchange translation		(5,038)		(241,275)
Net gains (losses) from U.S. Treasury notes:
Realized		(13,482)		(366)
Net change in unrealized		(548,082)		7,065

Total net realized and unrealized gains		18,767,153		13,952,713


NET INCOME		17,628,604		12,419,394
LESS PROFIT SHARE TO GENERAL PARTNER		895,285		9,377
NET INCOME AFTER PROFIT SHARE TO
GENERAL PARTNER	$	16,733,319	$	12,410,017

See notes to financial statements (unaudited)				(Concluded)

‎


Nestor Partners
Statements of Changes in Partners' Capital (unaudited)



For the six months ended June 30, 2022:

		Limited Partners		Special Limited Partners		New Profit Memo Account		General Partner		Total

PARTNERS' CAPITAL-
January 1, 2022	$	56,461,012	$	59,453,090	$	-	$	2,446,496	$	118,360,598
Contributions		-		-		1,586		-		1,586
Withdrawals		(1,508,956)		(329,552)		-		-		(1,838,508)
Net income		7,895,436		9,342,291		59		390,818		17,628,604
General Partner's allocation:
New Profit-Accrued		(849,389)		(45,896)		-		-		(895,285)
PARTNERS' CAPITAL-
June 30, 2022	$	61,998,103	$	68,419,933	$	1,645	$	2,837,314	$	133,256,995


For the six months ended June 30, 2021:
		Limited Partners		Special Limited Partners		New Profit Memo Account		General Partner		Total

PARTNERS' CAPITAL-
January 1, 2021	$	59,408,722	$	56,659,557	$	-	$	2,480,650	$	118,548,929
Contributions		-		-		-		-		-
Withdrawals		(4,899,410)		(285,336)		-		-		(5,184,746)
Reclass ⁽¹⁾		138,837		(138,837)		-		-
Net income		5,610,025		6,518,721		-		290,648		12,419,394
General Partner's allocation:
New Profit-Accrued		(9,377)		-		-		-		(9,377)
PARTNERS' CAPITAL-
June 30, 2021	$	60,248,797	$	62,754,105	$	-	$	2,771,298	$	125,774,200

⁽¹⁾ Partner reclass from Special Limited Partner to Limited Partner

See notes to financial statements (unaudited)


Nestor Partners
Statements of Financial Highlights (unaudited)



For the three months ended June 30, 2022 and 2021	Limited ‎Partners				Special Limited ‎Partners
	2022		2021		2022		2021

Ratios to average capital:
Net investment loss (a)	(2.99)	%	(3.95)	%	(0.11)	%	(1.18)	%

Total expenses (a)	3.90	%	3.99	%	1.01	%	1.22	%
Profit share allocation (b) (c)	1.20	%	0.02	%	0.07	%	0.00	%
Total expenses and profit share allocation	5.10	%	4.01	%	1.08	%	1.22	%

Total return before profit share allocation (b)	7.96	%	7.25	%	8.79	%	7.99	%
Less: profit share allocation (b) (c)	1.20	%	0.02	%	0.07	%	0.00	%
Total return after profit share allocation	6.76	%	7.23	%	8.72	%	7.99	%

(a) annualized
(b) not annualized
(c) in instances of 0.00, value is less than 0.01 when rounded to two decimal places


For the six months ended June 30, 2022 and 2021	Limited ‎Partners				Special Limited ‎Partners
	2022		2021		2022		2021

Ratios to average capital:
Net investment loss (a)	(3.35)	%	(3.95)	%	(0.49)	%	(1.14)	%

Total expenses (a)	3.92	%	3.99	%	1.06	%	1.18	%
Profit share allocation (b) (c)	1.44	%	0.02	%	0.07	%	0.00	%
Total expenses and profit share allocation	5.36	%	4.01	%	1.13	%	1.18	%

Total return before profit share allocation (b)	14.06	%	9.94	%	15.77	%	11.49	%
Less: profit share allocation (b) (c)	1.44	%	0.02	%	0.07	%	0.00	%
Total return after profit share allocation	12.62	%	9.92	%	15.70	%	11.49	%

(a) annualized
(b) not annualized
(c) in instances of 0.00, value is less than 0.01 when rounded to two decimal places

See notes to financial statements (unaudited)

Nestor Partners
Statements of Financial Highlights (unaudited)
For the three months ended March 31, 2022 and 2021
Limited
‎Partners
Special Limited
‎Partners
2022
2021
2022
2021
Ratios to average capital:
Net investment income loss (a)
(3.72)
%
(3.95)
%
(0.91)
%
(1.08)
%
Total expenses (a)
3.92
%
4.00
%
1.11
%
1.13
%
Profit share allocation (b) (c)
0.19
%
0.00
%
0.00
%
0.00
%
Total expenses and profit share allocation
4.11
%
4.00
%
1.11
%
1.13
%
Total return before profit share allocation (b)
5.68
%
2.51
%
6.42
%
3.25
%
Less: profit share allocation (b) (c)
0.19
%
0.00
%
0.00
%
0.00
%
Total return after profit share allocation
5.49
%
2.51
%
6.42
%
3.25
%
(a) annualized
(b) not annualized
(c) in instances of 0.00, value is less than 0.01 when rounded to two decimal places

~~See notes to financial statements (unaudited)~~
‎

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying financial statements, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of Nestor Partners’ (the “Partnership”) financial condition at ~~March 31,~~June 30, 2022 (unaudited) and December 31, 2021 (audited) and the results of its operations for the three and six months ended ~~March 31,~~June 30, 2022 and 2021 (unaudited). These financial statements present the results of interim periods and do not include all disclosures normally provided in annual financial statements. It is suggested that these financial statements be read in conjunction with the audited financial statements and notes included in the Partnership's annual report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2021. The December 31, 2021 information has been derived from the audited financial statements as of December 31, 2021.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ~~(the “U.S.~~(“U.S. GAAP”), as detailed in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“Codification”), requires management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements. Actual results could differ from these estimates.

The Partnership enters into contracts that contain a variety of indemnification provisions. The Partnership’s maximum exposure under these arrangements is unknown. The Partnership does not anticipate recognizing any loss related to these arrangements.

Income Taxes (Topic 740) of the Codification clarifies the accounting for uncertainty in tax positions. This requires that the Partnership recognize in its financial statements the impact of any uncertain tax positions. Based on a review of the Partnership’s open tax years, 2018 to 2021, Millburn Ridgefield Corporation (the “General Partner”) has determined that 0 reserves for uncertain tax positions were required.

Investment Company Status: The Partnership is for U.S. GAAP purposes an investment company in accordance with FASB Codification 946 Financial Services – Investment Companies.

There have been no material changes with respect to the Partnership's critical accounting policies, off-balance sheet arrangements or disclosure of contractual obligations as reported in the Partnership's Annual Report on Form 10-K for fiscal year 2021.

2. FAIR VALUE

~~The~~ Fair Value Measurements (Topic 820) of the Codification defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The three levels of the fair value hierarchy are described below:

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

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

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

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

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

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

‎

Spot currency contracts are valued based on current market prices (“Spot Price”). Forward currency contracts are valued based on pricing models that consider the Spot Price, plus the financing cost or benefit (“Forward Point”). Forward Points from the quotation service providers are generally in periods of one month, two months, three months, six months, nine months and twelve months forward while the contractual forward delivery dates for the forward currency contracts traded by the Partnership may be in between these periods. The General Partner’s policy to determine fair value for forward currency contracts involves first calculating the number of months from the date the forward currency contract is being valued to its maturity date (“Months to Maturity”), then identifying the forward currency contracts for the two forward months that are closest to the Months to Maturity (“Forward Month Contracts”). Linear interpolation is then performed between the dates of these two Forward Month Contracts to calculate the interpolated Forward Point. Model inputs can generally be verified and model

selection does not involve significant management judgment. Such instruments are typically classified within Level 2 of the fair value hierarchy.

During the three and six months ended ~~March 31,~~June 30, 2022 and 2021, there were 0no transfers of assets or liabilities between Level 1 and Level 2. The following tables represent the Partnership’s investments by hierarchical level as of ~~March 31,~~June 30, 2022 and December 31, 2021 in valuing the Partnership’s investments at fair value. During the six and twelve months ended June 30, 2022 and December 31, 2021, respectively, the Partnership held 0 assets or liabilities in Level 3. At ~~March 31,~~June 30, 2022 and December 31, 2021, the Partnership held 0 assets or liabilities in Level 3.


Financial assets and liabilities at fair value as of March 31, 2022
Financial assets and liabilities at fair value as of June 30, 2022							Financial assets and liabilities at fair value as of June 30, 2022

		Level 1		Level 2		Total		Level 1		Level 2		Total

U.S. Treasury Notes (1)	$	108,287,379	$	-	$	108,287,379	$	114,190,462	$	-	$	114,190,462
Short-Term Money Market Fund*		9,492,601		-		9,492,601		10,352,232		-		10,352,232
Exchange-Traded Futures Contracts
Currencies		53,489		-		53,489		(2,258)		-		(2,258)
Energies		(363,936)		-		(363,936)		734,681		-		734,681
Grains		(380,331)		-		(380,331)		706,688		-		706,688
Interest rates		699,074		-		699,074		1,976,740		-		1,976,740
Livestock		(11,380)		-		(11,380)		(5,990)		-		(5,990)
Metals		130,019		-		130,019		691,971		-		691,971
Softs		142,468		-		142,468		84,061		-		84,061
Stock indices		402,189		-		402,189		609,677		-		609,677

Total exchange-traded futures contracts		671,592		-		671,592		4,795,570		-		4,795,570

Over-the-Counter Forward Currency Contracts		-		1,900,354		1,900,354		-		(45,279)		(45,279)

Total futures and forward currency contracts (2)		671,592		1,900,354		2,571,946		4,795,570		(45,279)		4,750,291

Total financial assets and liabilities at fair value	$	118,451,572	$	1,900,354	$	120,351,926	$	129,338,264	$	(45,279)	$	129,292,985


Per line item in the Statements of Financial Condition
(1)
Investments in U.S. Treasury notes held in equity trading accounts as collateral	Investments in U.S. Treasury notes held in equity trading accounts as collateral				$	20,219,062	Investments in U.S. Treasury notes held in equity trading accounts as collateral				$	20,490,580
Investments in U.S. Treasury notes						88,068,317						93,699,882
Total investments in U.S. Treasury notes					$	108,287,379					$	114,190,462

(2)
Net unrealized appreciation on open futures and forward currency contracts	Net unrealized appreciation on open futures and forward currency contracts				$	3,222,286	Net unrealized appreciation on open futures and forward currency contracts				$	5,056,961
Net unrealized depreciation on open futures and forward currency contracts	Net unrealized depreciation on open futures and forward currency contracts					(650,340)	Net unrealized depreciation on open futures and forward currency contracts					(306,670)
Total net unrealized appreciation on open futures and forward currency contracts	Total net unrealized appreciation on open futures and forward currency contracts				$	2,571,946	Total net unrealized appreciation on open futures and forward currency contracts				$	4,750,291

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

1011


Financial assets and liabilities at fair value as of December 31, 2021

		Level 1		Level 2		Total

U.S. Treasury Notes (1)	$	105,275,049	$	-	$	105,275,049
Short-Term Money Market Fund*		8,737,690		-		8,737,690
Exchange-Traded Futures Contracts
Currencies		5,086		-		5,086
Energies		558,054		-		558,054
Grains		18,811		-		18,811
Interest rates		(889,982)		-		(889,982)
Livestock		(200)		-		(200)
Metals		149,065		-		149,065
Softs		(8,937)		-		(8,937)
Stock indices		263,486		-		263,486

Total exchange-traded futures contracts		95,383		-		95,383

Over-the-Counter Forward Currency Contracts		-		(380,429)		(380,429)

Total futures and forward currency contracts (2)		95,383		(380,429)		(285,046)

Total financial assets and liabilities at fair value	$	114,108,122	$	(380,429)	$	113,727,693


Per line item in Statements of Financial Condition
(1)
Investments in U.S. Treasury notes held in equity trading accounts as collateral					$	19,563,280
Investments in U.S. Treasury notes						85,711,769
Total investments in U.S. Treasury notes					$	105,275,049

(2)
Net unrealized appreciation on open futures and forward currency contracts					$	481,160
Net unrealized depreciation on open futures and forward currency contracts						(766,206)
Total net unrealized depreciation on open futures and forward currency contracts					$	(285,046)

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

3. DERIVATIVE INSTRUMENTS

~~The~~ Derivatives and Hedging (Topic 815) of the Codification requires qualitative disclosure about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements.

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

The Partnership engages in the speculative trading of futures and forward contracts on currencies, energies, grains, interest rates, livestock, metals, softs and stock indices. The following were the primary trading risk exposures of the Partnership at ~~March 31,~~June 30, 2022, by market sector:

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

Currencies – Exchange rate risk is a principal market exposure of the Partnership. The Partnership’s currency exposure is to exchange rate fluctuations, primarily fluctuations which disrupt the historical pricing relationships between different currencies and currency pairs.

The fluctuations are influenced by interest rate changes, as well as political and general economic conditions. The Partnership trades in a large number of currencies, including cross-rates—e.g., positions between two currencies other than the U.S. dollar.

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

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

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

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

Derivatives and Hedging (Topic 815) of the Codification requires entities to recognize in the Statements of Financial Condition all derivative contracts as assets or liabilities. Fair values of futures and forward currency contracts in ~~a net~~an asset position by counterparty are recorded in the Statements of Financial Condition as “Net unrealized appreciation on open futures and forward currency contracts.” Fair values of futures and forward currency contracts in a ~~net~~ liability position by counterparty are recorded in the Statements of Financial Condition as “Net unrealized depreciation on open futures and forward currency contracts.” The Partnership’s policy regarding fair value measurement is discussed in the Fair Value note, contained herein.

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

‎

1213

The following tables present the fair value of open futures and forward currency contracts, held long or sold short, at ~~March 31,~~June 30, 2022 and December 31, 2021. Fair value is presented on a gross basis even though the contracts are subject to master netting agreements and qualify for net presentation in the Statements of Financial Condition.


Fair Value of Futures and Forward Currency Contracts at March 31, 2022
Fair Value of Futures and Forward Currency Contracts at June 30, 2022											Fair Value of Futures and Forward Currency Contracts at June 30, 2022

										Net Unrealized										Net Unrealized
		Fair Value - Long Positions				Fair Value - Short Positions				Gain (Loss) on		Fair Value - Long Positions				Fair Value - Short Positions				Gain (Loss) on
Sector		Gains		Losses		Gains		Losses		Open Positions		Gains		Losses		Gains		Losses		Open Positions

Futures contracts:
Currencies	$	1,260	$	(213)	$	76,766	$	(24,324)	$	53,489	$	1,080	$	(1,870)	$	6,923	$	(8,391)	$	(2,258)
Energies		184,293		(557,003)		8,774		-		(363,936)		46,776		(68,897)		758,027		(1,225)		734,681
Grains		9,673		(457,392)		67,388		-		(380,331)		-		-		789,417		(82,729)		706,688
Interest rates		26,532		(119,251)		1,209,640		(417,847)		699,074		1,982,674		(3,788)		796		(2,942)		1,976,740
Livestock		-		(13,020)		2,500		(860)		(11,380)		80		(5,920)		30		(180)		(5,990)
Metals		1,746,204		(191,458)		179,088		(1,603,815)		130,019		1,399		(1,309,019)		2,005,338		(5,747)		691,971
Softs		170,544		(16,276)		210		(12,010)		142,468		7,050		(6,800)		117,151		(33,340)		84,061
Stock indices		251,972		(420,483)		665,257		(94,557)		402,189		112		(65,171)		824,069		(149,333)		609,677
Total futures contracts		2,390,478		(1,775,096)		2,209,623		(2,153,413)		671,592		2,039,171		(1,461,465)		4,501,751		(283,887)		4,795,570

Forward currency contracts		2,592,885		(740,047)		2,043,586		(1,996,070)		1,900,354		586,628		(2,321,600)		3,059,337		(1,369,644)		(45,279)

Total futures and
forward currency contracts	$	4,983,363	$	(2,515,143)	$	4,253,209	$	(4,149,483)	$	2,571,946	$	2,625,799	$	(3,783,065)	$	7,561,088	$	(1,653,531)	$	4,750,291


Fair Value of Futures and Forward Currency Contracts at December 31, 2021	Fair Value of Futures and Forward Currency Contracts at December 31, 2021										Fair Value of Futures and Forward Currency Contracts at December 31, 2021

										Net Unrealized										Net Unrealized
		Fair Value - Long Positions				Fair Value - Short Positions				Gain (Loss) on		Fair Value - Long Positions				Fair Value - Short Positions				Gain (Loss) on
Sector		Gains		Losses		Gains		Losses		Open Positions		Gains		Losses		Gains		Losses		Open Positions

Futures contracts:
Currencies	$	3,688	$	-	$	4,631	$	(3,233)	$	5,086	$	3,688	$	-	$	4,631	$	(3,233)	$	5,086
Energies		616,692		(124,087)		102,240		(36,791)		558,054		616,692		(124,087)		102,240		(36,791)		558,054
Grains		87,400		(74,738)		63,535		(57,386)		18,811		87,400		(74,738)		63,535		(57,386)		18,811
Interest rates		198,306		(1,137,749)		55,062		(5,601)		(889,982)		198,306		(1,137,749)		55,062		(5,601)		(889,982)
Livestock		-		(5,370)		5,220		(50)		(200)		-		(5,370)		5,220		(50)		(200)
Metals		1,260,221		(63,208)		39,297		(1,087,245)		149,065		1,260,221		(63,208)		39,297		(1,087,245)		149,065
Softs		5,098		(20,945)		21,123		(14,213)		(8,937)		5,098		(20,945)		21,123		(14,213)		(8,937)
Stock indices		471,298		(246,776)		181,224		(142,260)		263,486		471,298		(246,776)		181,224		(142,260)		263,486
Total futures contracts		2,642,703		(1,672,873)		472,332		(1,346,779)		95,383		2,642,703		(1,672,873)		472,332		(1,346,779)		95,383

Forward currency contracts		2,370,139		(681,922)		698,770		(2,767,416)		(380,429)		2,370,139		(681,922)		698,770		(2,767,416)		(380,429)

Total futures and
forward currency contracts	$	5,012,842	$	(2,354,795)	$	1,171,102	$	(4,114,195)	$	(285,046)	$	5,012,842	$	(2,354,795)	$	1,171,102	$	(4,114,195)	$	(285,046)

‎

1314

~~The effect of trading futures and forward currency contracts is represented on the Statements of Operations for the three months ended March 31,~~

The effect of trading futures and forward currency contracts is represented on the Statements of Operations for the three and six months ended June 30, 2022 and 2021 as “Net realized gains (losses) on closed positions: Futures and forward currency contracts” and “Net change in unrealized: Futures and forward currency contracts.” These trading gains and losses are detailed below.

Trading gains (losses) of futures and forward currency contracts for the three and six months ended ~~March 31,~~June 30, 2022 and 2021


Sector	Three months ended: March 31, 2022		Three months ended: March 31, 2021		Three months ended: June 30, 2022		Three months ended: June 30, 2021		Six months ended: June 30, 2022		Six months ended: June 30, 2021

Futures contracts:
Currencies	$	78,099	$	-	$	356,598	$	-	$	434,697	$	-
Energies		7,764,357		1,029,878		4,452,897		3,534,999		12,217,254		4,564,877
Grains		(454,162)		1,010,762		1,051,742		(691,533)		597,580		319,229
Interest rates		171,570		(3,033,571)		(5,425,572)		3,465,186		(5,254,002)		431,615
Livestock		(12,370)		(112,720)		53,140		7,680		40,770		(105,040)
Metals		(2,302,360)		(318,751)		1,791,859		1,519,098		(510,501)		1,200,347
Softs		165,493		50,942		46,407		(567,633)		211,900		(516,691)
Stock indices		1,321,065		6,709,251		5,808,705		3,851,614		7,129,770		10,560,865

Total futures contracts		6,731,692		5,335,791		8,135,776		11,119,411		14,867,468		16,455,202

Forward currency contracts		1,269,422		(1,041,491)		3,306,564		(1,314,130)		4,575,986		(2,355,621)

Total futures and
forward currency contracts	$	8,001,114	$	4,294,300	$	11,442,340	$	9,805,281	$	19,443,454	$	14,099,581

The following table presents average notional value by sector of open futures and forward currency contracts for the ~~three~~six months ended ~~March 31,~~June 30, 2022 and 2021 in U.S. dollars. The Partnership’s average net asset value for the ~~three~~six months ended ~~March 31,~~June 30, 2022 and 2021 was approximately ~~$119,000,000~~.$125,000,000 and $122,000,000, respectively.


Average notional value by sector of futures and forward currency contracts for the three months ended March 31, 2022 and 2021
Average notional value by sector of futures and forward currency contracts for the six months ended June 30, 2022 and 2021									Average notional value by sector of futures and forward currency contracts for the six months ended June 30, 2022 and 2021

		2022				2021					2022				2021
Sector		Long positions		Short positions		Long positions		Short positions			Long positions		Short positions		Long positions		Short positions

Futures contracts:
Currencies	$	765,982	$	4,501,330	$	-	$	-		$	863,141	$	4,177,463	$	-	$	-
Energies		18,187,070		2,063,304		17,069,725		1,662,735			14,107,547		3,676,532		20,338,456		1,169,006
Grains		10,365,052		2,696,518		12,171,369		3,498,195			6,910,035		6,398,509		8,114,246		6,951,938
Interest rates		132,690,559		57,360,599		269,121,382		12,409,952			138,321,001		38,383,060		307,020,576		18,831,771
Livestock		444,460		770,665		-		544,600			579,133		541,003		294,540		486,967
Metals		11,979,478		2,437,005		21,123,173		387,686			7,986,318		6,221,672		19,085,489		258,457
Softs		3,363,858		1,638,682		1,271,100		2,315,592			2,418,497		2,157,447		1,321,607		1,778,462
Stock indices		58,671,391		33,058,158		75,788,377		11,205,613			40,506,549		41,515,357		73,103,215		13,333,986

Total futures contracts		236,467,850		104,526,261		396,545,126		32,024,373			211,692,221		103,071,043		429,278,129		42,810,587

Forward currency contracts		37,766,152		56,709,909		58,529,409		35,908,651			29,843,790		54,614,427		59,599,455		30,328,063

Total futures and
forward currency contracts	$	274,234,002	$	161,236,170	$	455,074,535	$	67,933,024		$	241,536,011	$	157,685,470	$	488,877,584	$	73,138,650

Notional values in the interest rate sector were calculated by converting the notional value in local currency of open interest rate futures positions with maturities less than 10 years to 10-year equivalent fixed income instruments and translated to U.S. dollars at ~~March 31,~~June 30, 2022 and

2021. The 10-year note is often used as a benchmark for many types of fixed-income instruments and the General Partner believes it is a more meaningful representation of notional values of the Partnership’s open interest rate positions.

The averages have been calculated based on the amounts outstanding at the end of each quarter during the calculation period.

The customer agreements between the Partnership, the futures clearing brokers, including Deutsche Bank Securities Inc. (a wholly-owned subsidiary of Deutsche Bank AG), BofA Securities, Inc. (formerly Merrill Lynch Pierce, Fenner & Smith Inc.) and Goldman Sachs & Co. LLC, as well as the FX prime brokers, Deutsche Bank AG (“DB”) and Bank of America, N.A. (“BA”), give the Partnership the legal right to net unrealized gains and losses on open futures and foreign currency contracts. The Partnership netted, for financial reporting purposes, the unrealized gains and losses on open futures and forward currency contracts on the Statements of Financial Condition as the criteria under ~~FASB Accounting Standards Codification Topic 210, “~~Balance Sheet,” (Topic 210) of the codification were met.

The following tables present gross amounts of assets or liabilities which qualify for offset as presented in the Statements of Financial Condition ~~at March 31,~~as of June 30, 2022 and December 31, 2021.


Offsetting derivative assets and liabilities at March 31, 2022
Offsetting derivative assets and liabilities at June 30, 2022							Offsetting derivative assets and liabilities at June 30, 2022

Assets		Gross amounts of ‎recognized assets		Gross amounts ‎offset in the ‎Statement of ‎Financial Condition		Net amounts of ‎assets presented in ‎the Statement of ‎Financial Condition		Gross amounts of ‎recognized assets		Gross amounts ‎offset in the ‎Statement of ‎Financial Condition		Net amounts of ‎assets presented in ‎the Statement of ‎Financial Condition
Futures contracts
Counterparty C	$	1,832,976	$	(511,044)	$	1,321,932	$	1,553,106	$	(211,164)	$	1,341,942
Counterparty J								1,224,974		(43,189)		1,181,785
Counterparty L								3,762,842		(1,490,999)		2,271,843
Total futures contracts		1,832,976		(511,044)		1,321,932		6,540,922		(1,745,352)		4,795,570
		`						`
Forward currency contracts
Counterparty G		1,704,331		(1,072,155)		632,176
Counterparty K		2,932,140		(1,663,962)		1,268,178		2,006,183		(1,744,792)		261,391
Total forward currency contracts		4,636,471		(2,736,117)		1,900,354

Total assets	$	6,469,447	$	(3,247,161)	$	3,222,286	$	8,547,105	$	(3,490,144)	$	5,056,961

Liabilities		Gross amounts of ‎recognized liabilities		Gross amounts ‎offset in the ‎Statement of ‎Financial Condition		Net amounts of ‎liabilities presented in ‎the Statement of ‎Financial Condition		Gross amounts of ‎recognized liabilities		Gross amounts ‎offset in the ‎Statement of ‎Financial Condition		Net amounts of ‎liabilities presented in ‎the Statement of ‎Financial Condition
Futures contracts
Counterparty J	$	658,652	$	(557,649)	$	101,003
Counterparty L		2,758,813		(2,209,476)		549,337
Forward currency contracts
Counterparty G							$	1,946,452	$	(1,639,782)	$	306,670

Total liabilities	$	3,417,465	$	(2,767,125)	$	650,340	$	1,946,452	$	(1,639,782)	$	306,670

‎

1516


					Amounts Not Offset in the Statement of Financial Condition									Amounts Not Offset in the Statement of Financial Condition
Counterparty			Net amounts of assets ‎presented in the Statement ‎of Financial Condition		Financial Instruments		Collateral Received⁽¹⁾⁽²⁾		Net Amount⁽³⁾			Net amounts of assets ‎presented in the Statement ‎of Financial Condition		Financial Instruments		Collateral Received⁽¹⁾⁽²⁾		Net Amount⁽³⁾

Counterparty C		$	1,321,932	$	-	$	(1,321,932)	$	-		$	1,341,942	$	-	$	(1,341,942)	$	-
Counterparty G			632,176		-		-		632,176
Counterparty J												1,181,785		-		(1,181,785)		-
Counterparty K			1,268,178		-		-		1,268,178			261,391		-		-		261,391
Counterparty L												2,271,843		-		(2,271,843)		-

Total		$	3,222,286	$	-	$	(1,321,932)	$	1,900,354		$	5,056,961	$	-	$	(4,795,570)	$	261,391

					Amounts Not Offset in the Statement of Financial Condition									Amounts Not Offset in the Statement of Financial Condition
Counterparty			Net amounts of liabilities ‎presented in the Statement ‎of Financial Condition		Financial Instruments		Collateral Pledged⁽¹⁾⁽²⁾		Net Amount⁽⁴⁾			Net amounts of liabilities ‎presented in the Statement ‎of Financial Condition		Financial Instruments		Collateral Pledged⁽¹⁾⁽²⁾		Net Amount⁽⁴⁾

Counterparty J		$	101,003	$	-	$	(101,003)	$	-
Counterparty L			549,337		-		(549,337)	$	-
Counterparty G											$	306,670	$	-	$	(306,670)	$	-

Total		$	650,340	$	-	$	(650,340)	$	-		$	306,670	$	-	$	(306,670)	$	-

⁽¹⁾ Collateral received includes trades made on exchanges. These trades are subject to central counterparty clearing where settlement is guaranteed	⁽¹⁾ Collateral received includes trades made on exchanges. These trades are subject to central counterparty clearing where settlement is guaranteed									⁽¹⁾ Collateral received includes trades made on exchanges. These trades are subject to central counterparty clearing where settlement is guaranteed
by the exchange. Collateral pledged includes both cash and U.S. Treasury notes held at each respective counterparty.	by the exchange. Collateral pledged includes both cash and U.S. Treasury notes held at each respective counterparty.									by the exchange. Collateral pledged includes both cash and U.S. Treasury notes held at each respective counterparty.
⁽²⁾ Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets and liabilities presented in the Statement of	⁽²⁾ Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets and liabilities presented in the Statement of									⁽²⁾ Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets and liabilities presented in the Statement of
Financial Condition for each respective counterparty.	Financial Condition for each respective counterparty.									Financial Condition for each respective counterparty.
⁽³⁾ Net amount represents the amount that is subject to loss in the event of a counterparty failure as of March 31, 2022.
⁽⁴⁾ Net amount represents the amounts owed by the Partnership to each counterparty as of March 31, 2022.
⁽³⁾ Net amount represents the amount that is subject to loss in the event of a counterparty failure as of June 30, 2022.										⁽³⁾ Net amount represents the amount that is subject to loss in the event of a counterparty failure as of June 30, 2022.
⁽⁴⁾ Net amount represents the amounts owed by the Partnership to each counterparty as of June 30, 2022.										⁽⁴⁾ Net amount represents the amounts owed by the Partnership to each counterparty as of June 30, 2022.


Offsetting derivative assets and liabilities at December 31, 2021

Assets		Gross amounts of ‎recognized assets		Gross amounts ‎offset in the ‎Statement of ‎Financial Condition		Net amounts of ‎assets presented in ‎the Statement of ‎Financial Condition
Futures contracts
Counterparty J	$	767,838	$	(354,289)	$	413,549
Counterparty L		1,859,710		(1,792,099)		67,611

Total assets	$	2,627,548	$	(2,146,388)	$	481,160
						(Continued)

1617

Liabilities		Gross amounts of ‎recognized liabilities		Gross amounts ‎offset in the ‎Statement of ‎Financial Condition		Net amounts of ‎liabilities presented in ‎the Statement of ‎Financial Condition
Futures contracts
Counterparty C	$	873,264	$	(487,487)	$	385,777
Total futures contracts		873,264		(487,487)		385,777

Forward currency contracts
Counterparty G		1,536,772		(1,191,819)		344,953
Counterparty K		1,912,566		(1,877,090)		35,476
Total forward currency contracts		3,449,338		(3,068,909)		380,429

Total liabilities	$	4,322,602	$	(3,556,396)	$	766,206
						(Concluded)


				Amounts Not Offset in the Statement of Financial Condition
Counterparty		Net amounts of assets ‎presented in the Statement ‎of Financial Condition		Financial Instruments		Collateral Received⁽¹⁾⁽²⁾		Net Amount⁽³⁾

Counterparty J	$	413,549	$	-	$	(413,549)	$	-
Counterparty L		67,611		-		(67,611)		-

Total	$	481,160	$	-	$	(481,160)	$	-

				Amounts Not Offset in the Statement of Financial Condition
Counterparty		Net amounts of liabilities ‎presented in the Statement ‎of Financial Condition		Financial Instruments		Collateral Pledged⁽¹⁾⁽²⁾		Net Amount⁽⁴⁾

Counterparty C	$	385,777	$	-	$	(385,777)	$	-
Counterparty G		344,953		-		(344,953)		-
Counterparty K		35,476		-		(35,476)		-

Total	$	766,206	$	-	$	(766,206)	$	-

⁽¹⁾ Collateral received includes trades made on exchanges. These trades are subject to central counterparty clearing where settlement is guaranteed
by the exchange. Collateral pledged includes both cash and U.S. Treasury notes held at each respective counterparty.
⁽²⁾ Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statement of Financial Condition
for each respective counterparty.
⁽³⁾ Net amount represents the amount that is subject to loss in the event of a counterparty failure as of December 31, 2021.
⁽⁴⁾ Net amount represents the amounts owed by the Partnership to each counterparty as of December 31, 2021.

1718

CONCENTRATION OF CREDIT RISK

Credit risk is the possibility that a loss may occur due to the failure of a counterparty to perform according to the terms of a contract. Credit risk is normally reduced to the extent that an exchange or clearing organization acts as a counterparty to futures transactions since typically the collective credit of the members of the exchange is pledged to support the financial integrity of the exchange.

The General Partner seeks to minimize credit risk primarily by depositing and maintaining the Partnership’s assets at financial institutions and trading counterparties which the General Partner believes to be creditworthy. In addition, for OTC forward currency contracts, the Partnership

enters into master netting agreements with its counterparties. Collateral posted at the various counterparties for trading of futures and forward currency contracts includes cash and U.S. Treasury notes.

The Partnership’s forward currency trading activities are cleared bythrough DB and BA. The Partnership’s concentration of credit risk associated with DB or BA nonperformance includes unrealized gains inherent in such contracts, which are recognized in the Statements of Financial Condition plus the value of margin or collateral held by DB and BA. The amount of such credit risk was ~~$10,949,740~~$10,387,866 and $8,359,643 at ~~March 31,~~June 30, 2022 and December 31, 2021, respectively.

4. PROFIT SHARE

The following table indicates the total profit share earned and accrued during the three and six months ended ~~March 31,~~June 30, 2022 and 2021. Profit share earned (from Limited Partners’ redemptions) is credited to the New Profit Memo Account as defined in the Partnership’s Agreement of Limited Partnership.


						Three months ended:
						June 30,		June 30,
						2022		2021
Profit share earned						$	1,586	$	-
Reversal of profit share ⁽¹⁾							(109,775)		(237)
Profit share accrued							893,699		9,377
Total profit share						$	785,510	$	9,140




	Three months ended:					Six months ended:
	March 31,		March 31,			June 30,		June 30,
	2022		2021			2022		2021
Profit share earned	$	-	$	-		$	1,586	$	-
Profit share accrued		109,775		237			893,699		9,377
Total profit share	$	109,775	$	237		$	895,285	$	9,377




⁽¹⁾ on April 1^st					⁽¹⁾ on April 1^st

5. RELATED PARTY TRANSACTIONS

~~The Partnership pays the General Partner broker commissions. The General Partner in turn bears all such brokerage commissions and fees.~~

Limited partnership interests (“Interests”) sold through selling agents engaged by the General Partner are generally subject to a 2.5% redemption charge for redemptions made prior to the end of the twelfth month following their sale. All redemption charges will be paid to the General Partner. At ~~March 31,~~June 30, 2022 and December 31, 2021, $0$0 was owed to the General Partner.

6. SUBSEQUENT EVENTS

During the period from July 1, 2022 to August 12, 2022, withdrawals of $400,000 were made from the Partnership. The General Partner has performed its evaluation of subsequent events ~~from April 1, 2022 to May 16,~~through August 12, 2022, the date ~~this~~the Form 10-Q was filed. Based on such evaluation, no further events were discovered that required disclosure or adjustment to the ~~financial statements.~~Financial Statements.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Reference is made to Item 1, "Financial Statements." The information contained therein is essential to, and should be read in connection with, the following analysis.

OPERATIONAL OVERVIEW

Due to the nature of the Partnership's business, its results of operations depend on the General Partner's ability to recognize and capitalize on trends and other profit opportunities in different sectors of the global capital and commodity markets. The General Partner's investment and trading methods are confidential so that substantially the only information that can be furnished regarding the Partnership's results of operations is contained in the performance record of its trading. Unlike operating businesses, general economic or seasonal conditions do not directly affect the profit potential of the Partnership and its past performance is not necessarily indicative of future results. The General Partner believes, however, that there are certain market conditions, for example, markets with strong price trends, in which the Partnership has a better likelihood of being profitable than in others.

LIQUIDITY AND CAPITAL RESOURCES

Interests may be offered for sale as of the beginning, and may be redeemed as of the end, of each month.

The amount of capital raised for the Partnership should not have a significant impact on its operations, as the Partnership has no significant capital expenditure or working capital requirements other than for monies to pay trading losses, brokerage commissions and charges. Within broad ranges of capitalization, the General Partner’s trading positions should increase or decrease in approximate proportion to the size of the Partnership.

The Partnership raises additional capital only through the sale of ~~interests~~Interests and capital is increased through trading profits (if any). The Partnership does not engage in borrowing.

The Partnership trades futures, forward, and spot contracts on interest rate instruments, agricultural commodities, currencies, metals, energy and stock indices, and forward contracts on currencies, and may trade options on the foregoing and swaps thereon. Risk arises from changes in the value of these contracts (market risk) and the potential inability of counterparties or brokers to perform under the terms of their contracts (credit risk). Market risk is generally measured by the face amount of the futures positions acquired and the volatility of the markets traded. The credit risk from counterparty non-performance associated with these instruments is the net unrealized gain, if any, on these positions plus the value of the margin or collateral held by the counterparty. The risks associated with exchange-traded contracts are generally perceived to be less than those associated with OTC transactions because exchanges typically (but not universally) provide clearinghouse arrangements in which the collective credit (in some cases limited in amount, in some cases not) of the members of the exchange is pledged to support the financial integrity of the exchange. In most OTC transactions, on the other hand, traders must rely (typically but not universally) solely on the credit of their respective individual counterparties. Margins which may be subject to loss in the event of a default are generally required in exchange trading and counterparties may require margin or collateral in the OTC markets.

The General Partner has procedures in place to control market risk, although there can be no assurance that they will, in fact, succeed in doing so. These procedures primarily focus on (1) real time monitoring of open positions; (2) diversifying positions among various markets; (3) limiting the assets committed as margin or collateral, generally within a range of 5% to 35% of an account’s net assets, though the amount may at any time be higher; and (4) prohibiting pyramiding - that is, using unrealized profits in a particular market as margin for additional positions in the same market. The General Partner attempts to control credit risk by causing the Partnership to deal exclusively with large, well-capitalized financial institutions as brokers and counterparties.

The financial instruments traded by the Partnership contain varying degrees of off-balance sheet risk whereby changes in the market values of the futures, forward, and spot contracts or the Partnership’s satisfaction of the obligations may exceed the amount recognized in the Statements of Financial Condition of the Partnership.

Due to the nature of the Partnership’s business, substantially all its assets are represented by cash, cash equivalents, and U.S. government obligations while the Partnership maintains its market exposure through open futures, forward, and spot currency contract positions.

The Partnership’s futures contracts are settled by offset and are cleared by the exchange clearinghouse function. Open futures positions are marked to market each trading day and the Partnership’s trading accounts are debited or credited accordingly. Options on futures contracts are settled either by offset or by exercise. If an option on a future is exercised, the Partnership is assigned a position in the underlying future which is then settled by offset. The Partnership’s spot and forward currency transactions conducted in the interbank market are settled by netting offsetting positions or payment obligations and by cash payments.

The value of the Partnership’s cash and financial instruments is not materially affected by inflation. Changes in interest rates, which are often associated with inflation, could cause the value of certain of the Partnership’s debt securities to decline, but only to a limited extent. More importantly, changes in interest rates could cause periods of strong up or down market price trends during which the Partnership’s profit potential generally increases. However, inflation can also give rise to markets which have numerous short price trends followed by rapid reversals, markets in which the Partnership is likely to suffer losses.

The Partnership’s assets are generally held as cash or cash equivalents, including short-term U.S. government securities or securities issued by federal agencies (or, to a limited extent, foreign government securities in connection with trading on non-U.S. exchanges), other Commodity Futures Trading Commission authorized investments or bank held or certain other money market instruments (e.g., bankers acceptances and Eurodollar or other time deposits),obligations, which are used to margin the Partnership’s futures, forward and spot currency positions and withdrawn, as necessary, to pay redemptions and expenses. Other than potential market-imposed limitations on liquidity, due, for example, to limited open interest in certain futures markets or to daily price fluctuation limits, ~~for example,~~ which are inherent in the Partnership’s futures, forward and spot trading, the Partnership’s assets are highly liquid and are expected to remain so.

During its operations for the three and six months ended ~~March 31,~~June 30, 2022, the Partnership experienced no meaningful periods of illiquidity in any of the numerous markets traded by the General Partner.

CRITICAL ACCOUNTING ESTIMATES

The Partnership records its transactions in futures, forward and spot contracts, including related income and expenses, on a trade date basis. Open futures contracts traded on an exchange are valued at fair value, which is based on the closing settlement price on the exchange where the futures contract is traded by the Partnership on the day with respect to which net assets are being determined. Open spot currency contracts are valued based on the current Spot Price. Open forward currency contracts are recorded at fair value, based on pricing models that consider the Spot Price and Forward Point. Spot Prices and Forward Points for open forward currency contracts are generally based on the median of the average midpoint of bid/ask quotations at the last minute ending at 3:00 P.M. New York time provided by widely used quotation service providers on the day with respect to which net assets are being determined. Forward Points from the quotation service providers are generally in periods of one month, two months, three months, six months, nine months and twelve months forward while the contractual forward delivery dates for the forward currency contracts traded by the Partnership may be in between these periods. The General Partner’s policy to determine

fair value for forward currency contracts involves first calculating the number of Months to Maturity, then identifying the Forward Month Contracts. Linear interpolation is then performed between the dates of these two Forward Month Contracts to calculate the interpolated Forward Point. The General Partner will also compare the calculated price to the forward currency prices provided by dealers to determine whether the calculated price is fair and reasonable.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, such as accrual of expenses, that affect the amounts and disclosures reported in the financial statements. Based on the nature of the business and operations of the Partnership, the General Partner believes that the estimates utilized in preparing the Partnership’s financial statements are appropriate and reasonable, however actual results could differ from these estimates. The estimates used do not provide a range of possible results that would require the exercise of subjective judgment. The General Partner further believes that, based on the nature of the business and operations of the Partnership, no other reasonable assumptions relating to the application of the Partnership’s critical accounting estimates other than those currently used would likely result in materially different amounts from those reported.

RESULTS OF OPERATIONS

Due to the nature of the Partnership’s trading, the results of operations for the interim periods presented should not be considered indicative of the results that may be expected for the entire year.



Periods ended June 30, 2022

Month Ended:				Total Partners' ‎Capital

June 30, 2022			$	133,256,995
March 31, 2022				124,302,062
December 31, 2021				118,360,598


		Three Months ended		Six Months ended
Change in Partners' Capital	$	8,954,933	$	14,896,397
Percent Change		7.20%		12.59%

Period ended March 31, 2022
Month Ended:
Total Partners'
‎Capital
March 31, 2022
$
124,302,062
December 31, 2021
118,360,598
Three Months ended
Change in Partners' Capital
$
5,941,464
Percent Change
5.02%

THREE MONTHS ENDED ~~MARCH 31,~~JUNE 30, 2022

The increase in the Partnership’s net assets of ~~$5,941,464~~$8,954,933 was attributable to net income after profit share of ~~$7,068,882,~~$9,664,437 and contributions of $1,586, which ~~were~~was partially offset by withdrawals of ~~$1,127,418.~~$711,090.

decrease was due to an increased amount of lower fee paying investors in the Partnership during the three months ended ~~March 31,~~June 30, 2022, relative to the corresponding period in 2021.

Interest income is derived from cash and U.S. Treasury instruments held at the Partnership’s brokers and custodian. Interest income for the three months ended ~~March 31,~~June 30, 2022 increased ~~$50,962~~$289,046 relative to the corresponding period in 2021. This increase was due predominantly to an increase in short-term U.S. ~~Treasury~~treasury yields during the three months ended ~~March 31,~~June 30, 2022 relative to the corresponding period in 2021.

During the three months ended ~~March 31,~~June 30, 2022, the Partnership experienced net realized and unrealized gains of ~~$7,841,572~~$10,925,581 from its trading operations (including foreign exchange translations and U.S. Treasury notes). Brokerage fees of ~~$644,565,~~$690,231, administrative expenses of ~~$72,714,~~$80,440, custody fees and other expenses of ~~$5,248~~$5,787 and accrued profit share of to the General Partner of ~~$109,775~~$785,510 were incurred. The Partnership’s gains achieved from trading operations, in addition to interest income of ~~$59,612,~~$300,824, were partially offset by the Partnership expenses resulting in net income after profit share to the General Partner of ~~$7,068,882.~~$9,664,437. An analysis of the trading gain (loss) by sector is as follows:

Sector	% Gain (Loss) of Partnership Capital
Currencies		~~1.10~~2.83	%
Energies		~~6.80~~3.45	%
Grains		~~(0.40)~~0.78	%
Interest rates		~~0.15~~(4.05)	%
Livestock		~~(0.03)~~0.05	%
Metals		~~(1.99)~~1.38	%
Softs		~~0.13~~0.04	%
Stock indices		~~0.99~~4.44	%

Trading Gain		~~6.75~~8.92	%

SIX MONTHS ENDED JUNE 30, 2022

The increase in the Partnership’s net assets of $14,896,397 was attributable to net income after profit share of $16,733,319 and contributions of $1,586, which was partially offset by withdrawals of $1,838,508.

Brokerage fees are calculated on the net asset value on the last day of each month and are affected by trading performance, contributions and withdrawals. Brokerage fees for the six months ended June 30, 2022 decreased $58,596 relative to the corresponding period in 2021. The decrease was due to an increased amount of lower fee paying investors in the Partnership during the six months ended June 30, 2022, relative to the corresponding period in 2021.

Interest income is derived from cash and U.S. Treasury instruments held at the Partnership’s brokers and custodian. Interest income for the six months ended June 30, 2022 increased $340,008 relative to the corresponding period in 2021. This increase was due predominantly to an increase in short-term U.S. treasury yields during the six months ended June 30, 2022 relative to the corresponding period in 2021.

During the six months ended June 30, 2022, the Partnership experienced net realized and unrealized gains of $18,767,153 from its trading operations (including foreign exchange translations and U.S. Treasury notes). Brokerage fees of $1,334,796, administrative expenses of $153,154, custody fees and other expenses of $11,035 and accrued profit share to the General Partner of $895,285 were incurred. Interest income of $360,436 partially offset the Partnership expenses resulting in net income after profit share to the General Partner of $16,733,319. An analysis of the trading gain (loss) by sector is as follows:


Sector	% Gain (Loss) of Partnership Capital
Currencies		4.00	%
Energies		10.53	%
Grains		0.42	%
Interest rates		(3.85)	%
Livestock		0.07	%
Metals		(0.58)	%
Softs		0.21	%
Stock indices		5.53	%

Trading Gain		16.33	%

MANAGEMENT DISCUSSION –2022

Three months ended June 30, 2022

The Partnership was profitable as gains from trading stock index, energy, metal and grain futures, and currency forwards far outweighed losses from trading interest rate futures. Trading of soft and livestock futures were each essentially flat.

As markets faced constant pressure from rising inflation, Russia’s war on Ukraine, persistent supply chain difficulties and expanding U.S.-China tensions, market participants increasingly focused on the uncertainties around three interrelated questions: how fast and how high official interest rates would be raised by global central banks, especially the U.S. Federal Reserve Bank (the “Fed”) and European Central Bank (the “ECB”); when and how quickly inflation would begin to subside; and when and how significantly global growth would begin to decelerate.

Against the background of rising inflation and interest rates, plunging consumer confidence globally, fears of slowing growth and caution concerning the earnings outlook, volatility increased, most global equity markets declined sharply, and trading of equity futures was quite profitable. Short positions in European, British, Korean, Singaporean, Brazilian, Indian, EAFE and emerging markets index futures were profitable. Trading of U.S. equity index futures was profitable too. On the other hand, short positions in Japanese equity index futures, long positions in Canadian and Australian equity index futures, and a short VIX futures trade resulted in partially offsetting losses. Short positions in Chinese stock index futures were also unprofitable late in the quarter as China displayed incipient signs of emerging from its severe first half growth slowdown.

Following sharp increases in the first quarter, energy prices were volatile during the April-June period. Strong demand for refined fuels combined with concerns over increasing restrictions on Russian supplies and a dwindling “supply buffer” within The Organization of the Petroleum Exporting Countries pushed energy prices higher, while increasing recession worries due to tighter monetary policies mitigated the upward pressures, especially late in June. Long natural gas positions were profitable for most of the quarter. Then, in late June, an explosion at one of the biggest US liquefied natural gas export terminals in Texas reduced exports to Europe, thereby significantly raising natural gas supplies available for U.S. domestic consumption. U.S. natural gas prices plunged in June, leading to profits on a short natural gas position. Elsewhere, long positions in RBOB gasoline, heating oil, London gas oil, WTI crude and Brent crude were profitable.

The U.S. dollar, as measured by the Bloomberg DXY index, rose about 7 1/2% in the quarter and about 10% since the start of the year. Considering that the war in Ukraine is expected to have a much greater negative impact on European growth than U.S. growth and that the Fed is likely to remain more hawkish than the ECB, long U.S. dollar positions against the euro and Swiss franc were profitable. A long U.S. dollar trade versus the Japanese yen was profitable too as the Bank of Japan continued to pursue an expansive monetary policy at the same time that the Fed was becoming decidedly more restrictive. As commodity prices stabilized somewhat, albeit at high levels, long U.S. dollar trades versus several commodity currencies such as the Aussie dollar, Canadian dollar, Chilean peso, Norwegian krone and South African rand also resulted in profits. On the other hand, a short U.S. dollar position against the Brazilian real and trading the U.S. dollar versus the British pound and New Zealand dollar generated partially offsetting losses.

Fears of a demand-sapping recession, a stronger U.S. dollar and higher interest rates weighed on metal markets, even though there were incipient signs that China was emerging from its sharp growth slowdown. Indications that supplies of many industrial metals would increase in the next couple of years also dampened the price outlook. Short positions in copper, silver and gold were profitable, while trading of aluminum generated a partially offsetting loss.

Grain prices which hit 10-year highs in March and April following the Russian invasion of Ukraine, were volatile during most of the second quarter, and eased somewhat in June against the backdrop of more favorable weather in the U.S. and South America, near record Russian wheat crops, hopes for Ukrainian exports and slowing demand due to recession fears. A long soybean oil position was profitable in April in the wake of news that Indonesia banned exports of palm oil in a bid to ensure domestic supply. Both palm oil and soybean oil are used for cooking as well as food preparation, and are in high demand as substitutes for sunflower oil, a commodity whose supply has been negatively impacted by the ongoing Russian war on Ukraine. Then, late in June, a short soybean oil trade was also profitable. Short corn and wheat trades were also profitable late in the quarter.

Interest rate volatility, as measured by the Merrill Lynch MOVE Index, increased markedly during the quarter. On the one hand, concerns about inflation and more hawkish central bank policies underpinned rates. On the other hand, weakening economic data underscored worries about recession and sparked speculation that the Fed might not need to raise rates as high as previously estimated, thereby periodically dragging yields lower. Long positions in European, British, Australian, Canadian, Japanese and U.S. note and bond futures were broadly unprofitable, although these losses were reduced by a significant global bond rally near month end. Meanwhile, trading of short-term U.S., German, Canadian and Australian interest rate futures was fractionally profitable.

Three months ended March 31, 2022

The Partnership was profitable in the quarter as gains from trading energy futures, stock index futures and currency forwards outpaced losses from trading metal futures. Elsewhere, trading of interest rate futures and softs futures were marginally positive while trading of agricultural commodity futures was marginally negative.

During the quarter, market prices experienced significant volatility as market participants endeavored to understand the impacts of recent events—including the increasingly hawkish Federal Reserve (the “Fed”) and global central bank monetary policies; the Russia-Ukraine war and accompanying sanctions; and the Chinese growth slowdown, which was exacerbated by recent COVID-19 lockdowns—on individual markets and on growth/inflation outlooks for various regions of the world.

Disciplined supply management from both Organization of the Petroleum Exporting Countries (“OPEC+”) and non-OPEC producers together with oil consumption recovering toward pre-pandemic levels underpinned a rise in Brent crude oil prices from $77/barrel at the end of 2021 to around $90/barrel on January 31 amid concerns that the market may face an oil-market squeeze triggered by too little investment and quickly rebounding demand. Then, as the Russia-Ukraine war erupted, energy prices, represented by Brent crude oil, surge to nearly $130/barrel on March 8 amid fears that Russian energy supplies would be negatively impacted. Russia is among the top three global producers of crude oil and natural gas. Over the last three weeks of the quarter, energy prices were extremely volatile with Brent crude plunging to $98/barrel on March 16 and jumping to $122/barrel on March 24 before closing the month at $108/barrel. The price drop near month-end followed news that the U.S. would release a million barrels per day from the Strategic Petroleum Reserve for up to six months. Overall, long positions in Brent crude, WTI crude, RBOB gasoline, London gas oil, and heating oil were profitable. In addition, periodic short positions in Brent crude, RBOB gasoline and London gas oil posted small gains. On the other hand, a short position in U.S. natural gas was unprofitable and shifted to a long position late in the quarter.

The Fed and other central banks’ embrace of more hawkish policy stances impacted global financial markets, contributing to increased volatility and significant losses for global equities, despite a modest recovery at quarter-end. China’s growth slowdown and property market distress also weighed on equities, as did Europe’s struggles with high energy prices, supply bottlenecks and personnel shortages. The potential stagflationary impacts of the Russia-Ukraine war also contributed to uncertainty in global equity markets. Overall, short positions in Chinese, Hong Kong, Korean, Singaporean, German, Italian, South African, and the EEM and EAFE index futures were profitable. Trading of the S&P Mid-Cap index, and long positions in Australian and British index futures late in the quarter were also profitable. On the other hand, long positions in most U.S. equity index futures and trading of Dutch, French, and the Euro Stoxx index futures posted partially offsetting losses. Short vix and Brazilian index futures positions, a long Canadian equity index future position, and trading of the Taiwanese stock index future were also unprofitable.

The U.S. dollar was volatile for most of the quarter, but it spiked about 3% higher during the first week of the Russian invasion of Ukraine and as market participants anticipated a hawkish tilt for the mid-March Federal Open Market Committee meeting. A long U.S. dollar trade versus the Japanese yen was particularly profitable as the Bank of Japan continued to pursue an expansive monetary policy while the Fed was becoming decidedly more restrictive. A long Brazilian real/short dollar trade benefitted from high level of Brazilian interest rates and from rising commodity prices. Given that the war in Ukraine is likely to have a much greater negative impact on Europe than the U.S., a long U.S. dollar position against the Euro was profitable. A short U.S. dollar trade versus the Russian ruble was closed out at a loss during February when the Partnership halted trading of the Russian currency. Elsewhere, trading the U.S. dollar against the currencies of Switzerland, Sweden, the U.K. and India; long U.S. dollar trades against the Australian and Canadian currencies; and a short U.S. dollar/ long New Zealand dollar position posted partially offsetting losses.

Led by an seemingly increasingly hawkish Fed, global interest rates increased throughout the quarter as Chairman Powell indicated that the March start to official rate increases and end to Quantitative Easing would be followed shortly thereafter by Quantitate Tightening (“QT”) as the Fed seeks to rein in inflation without derailing strong GDP and employment growth. Following this news, the 10-year U.S. government

2124

bond yield, which ended 2021 near 1.50%, soared to nearly 2.50% on March 28 before settling back to about 2.30% at month-end. Concerns that higher rates and QT would slow growth nor safe haven demand deriving from the Russian-Ukraine war kept rates down. On balance, short positions in shorter-term U.S., European, Canadian and Italian interest rate futures were profitable. In addition, short positions in the U.S. ~~ultra~~-~~bond~~ultra-bond future and the 10-year Italian bond future were profitable. On the other hand, trading of Australian, Canadian, French, Japanese and U.S. note futures posted largely offsetting losses.

Geopolitical developments, the Chinese growth slowdown, monetary policy uncertainties and dollar volatility impacted metal markets, which experienced an overall sector loss. Trading of silver, gold, platinum and copper futures produced losses. On the other hand, a long nickel position was profitable as rising demand—especially for EV batteries, and low inventories buoyed prices. Trading of zinc was also slightly profitable.

Finally, turning to soft and agricultural commodities, losses from a short wheat position and from trading soybean oil, sugar and coffee outdistanced the profits from long soybean, soybean meal and cotton positions.


Period ended March 31, 2021
Periods ended June 30, 2021			Periods ended June 30, 2021

Month Ended:		Total Partners' ‎Capital				Total Partners' ‎Capital

June 30, 2021					$	125,774,200
March 31, 2021	$	118,471,908				118,471,908
December 31, 2020		118,548,929				118,548,929


		Three Months ended		Three Months ended		Six Months ended
Change in Partners' Capital	$	(77,021)	$	7,302,292	$	7,225,271
Percent Change		(0.06)%		6.16%		6.09%

THREE MONTHS ENDED ~~MARCH 31,~~JUNE 30, 2021

The ~~decrease~~increase in the Partnership’s net assets of ~~$77,021~~$7,302,292 was attributable to ~~withdrawals of $3,489,528, which were partially offset by~~ net income after profit share of ~~$3,412,507.~~$8,997,510, which were partially offset by withdrawals of $1,695,218.

Brokerage fees are calculated on the net asset value on the last day of each month and are affected by trading performance, contributions and withdrawals. Brokerage fees for the three months ended ~~March 31,~~June 30, 2021 decreased ~~$200,334~~$45,830 relative to the corresponding period in 2020. ~~The~~This decrease was due to a decrease in average net assets of the Partnership during the three months ended ~~March 31,~~June 30, 2021, relative to the corresponding period in 2020.

Interest income is derived from cash and U.S. Treasury instruments held at the Partnership’s brokers and custodian. Interest income for the three months ended ~~March 31,~~June 30, 2021 decreased ~~$634,843~~$364,491 relative to the corresponding period in 2020. This decrease was due predominantly to a decrease in short-term U.S. ~~Treasury~~treasury yields during the three months ended ~~March 31,~~June 30, 2021 relative to the corresponding period in 2020.

During the three months ended ~~March 31,~~June 30, 2021, the Partnership experienced net realized and unrealized gains of ~~$4,162,114~~$9,790,599 from its trading operations (including foreign exchange translations and U.S. Treasury notes). Brokerage fees of ~~$679,262,~~$714,130, administrative expenses of ~~$73,531,~~$76,412, custody fees and other expenses of ~~$5,227~~$5,185 and accrued profit share to the General Partner of ~~$237~~$9,140 were incurred. The Partnership’s gains achieved from trading operations, in addition to interest income of ~~$8,650,~~$11,778, were partially offset by the Partnership expenses resulting in net income after profit share to the General Partner of ~~$3,412,507.~~$8,997,510. An analysis of the trading gain (loss) by sector is as follows:


Sector	% Gain (Loss) of Partnership Capital
Currencies		~~(0.95)~~(1.07)	%
Energies		~~0.87~~2.88	%
Grains		~~0.79~~(0.55)	%
Interest rates		~~(2.56)~~2.78	%
Livestock		~~(0.14)~~0.02	%
Metals		~~(0.30)~~1.24	%
Softs		~~(0.01)~~(0.44)	%
Stock indices		~~5.77~~3.13	%

Trading Gain		~~3.47~~7.99	%

SIX MONTHS ENDED JUNE 30, 2021

The increase in the Partnership’s net assets of $7,225,271 was attributable to net income after profit share of $12,410,017, which were partially offset by withdrawals of $5,184,746.

Brokerage fees are calculated on the net asset value on the last day of each month and are affected by trading performance, contributions and withdrawals. Brokerage fees for the six months ended June 30, 2021 decreased $246,164 relative to the corresponding period in 2020. This decrease was due to a decrease in average net assets of the Partnership during the six months ended June 30, 2021, relative to the corresponding period in 2020.

Interest income is derived from cash and U.S. Treasury instruments held at the Partnership’s brokers and custodian. Interest income for the six months ended June 30, 2021 decreased $999,334 relative to the corresponding period in 2020. This decrease was due predominantly to a decrease in short-term U.S. treasury yields during the six months ended June 30, 2021 relative to the corresponding period in 2020.

During the six months ended June 30, 2021, the Partnership experienced net realized and unrealized gains of $13,952,713 from its trading operations (including foreign exchange translations and U.S. Treasury notes). Brokerage fees of $1,393,392, administrative expenses of $149,943, custody fees and other expenses of $10,412 and accrued profit share to the General Partner of $9,377 were incurred. Interest income of $20,428 partially offset the Partnership expenses resulting in net income after profit share to the General Partner of $12,410,017. An analysis of the trading gain (loss) by sector is as follows:


Sector	% Gain (Loss)
Currencies		(1.98)	%
Energies		3.80	%
Grains		0.27	%
Interest rates		0.17	%
Livestock		(0.09)	%
Metals		0.96	%
Softs		(0.42)	%
Stock indices		9.11	%

Trading Gain		11.82	%

MANAGEMENT DISCUSSION –2021

Three months ended June 30, 2021

The Partnership was profitable in the quarter as gains from long positions in stock index, interest rate, energy and metals futures outpaced losses from trading currency forwards and grain and soft commodity futures.

For much of the quarter, reflation and reopening dynamics underpinned by expanding COVID-19 vaccinations and accommodative monetary and fiscal policies globally contributed to rising equity prices, commodity prices and interest rates. In May, market participants faced

headwinds that at times impacted market sentiment including: declines in Bitcoin and SPAC prices; the Colonial pipeline cyberattack; and geopolitical tensions and/or negotiations between the U.S. and China, the U.S. and Iran, Israel and Hamas, and Russia/Belarus and the West. Importantly, evidence that inflation was increasing raised concerns that global monetary policies might become less accommodative. Central banks in Brazil, Russia, Turkey, Mexico, Hungary and the Czech Republic have raised official rates recently and monetary authorities in Canada, New Zealand and Norway have suggested it may be time to rein in crisis policies soon. The Federal Reserve (the “Fed”) continues to emphasize the “transitory” nature of recent inflation increases but financial markets were impacted following the Fed’s June meeting and indications that a number of Fed policy makers are considering Quantitative easing (“QE”) tapering and interest rates increases earlier than had been previously anticipated.

After peaking late in March, interest rates were volatile but drifted lower during most of the quarter. Following the June Fed meeting, rates fell to their lowest levels since late February and yield curves flattened, inflation expectations eased, real yields rose, gold declined and the U.S. dollar rebounded. Consequently, long positions in long-term U.S., U.K., Japanese, Canadian and Australian government bonds were profitable. On the other hand, trading of the U.S. 5-year note and European long-term interest rate futures produced partially offsetting losses.

Against this background of reflation and reopening, long positions in U.S., Canadian and EAFE equity index futures, and trading of European, Chinese and Taiwanese stock index futures were highly profitable. Elsewhere, short positions in Japanese and Brazilian equity futures posted partially offsetting losses.

During the quarter, Brent crude oil hit its highest price level since October 2018 and an increasingly bullish picture contributed to speculation that the price may eventually return to $100 a barrel. Prices drew support from expectations that the OPEC+ alliance – which meets on July 1 – won’t revive production quickly enough to prevent markets from tightening, and from continued production discipline from non-Organization of the Petroleum Exporting Countries’ shale producers who have exerted strong control on additional investments while focusing on returns to investors. Consequently, stockpiles are draining as fuel consumption rebounds in key regions including the U.S. and Europe. At the same time, the prospect of an imminent surge of Iranian oil is diminishing as talks to revive a nuclear deal continue. In this environment, long positions in Brent crude, WTI crude, RBOB gasoline, London gas oil and heating oil were profitable. On the other hand, a short U.S. natural gas position posted a partially offsetting loss. Natural gas prices have risen sharply amid low global natural gas inventories after a long, cold winter; rebounding global demand along with the reopening global economy; and hot summer temperatures.

Reflation and reopening demand contributed to metals’ prices despite some intra-quarter volatility prompted by Chinese efforts to rein in “excessive” speculation and worries about possible changes in monetary policy. Long copper, gold, silver and aluminum positions were profitable, especially in April and May.

The U.S. dollar strengthened during the first quarter amid the U.S.’s vaccine distribution efforts (particularly relative to the rest of the world), fiscal policy support, economic reopening and rising interest rates. Subsequently, as those distinctions eroded, the U.S. dollar declined for much of the second quarter. However, the U.S. currency rebounded sharply in June, particularly after Federal Reserve officials suggested that they were starting to think about QE tapering and interest rate increases. Currency trading was mixed and unprofitable for the quarter. Short U.S. dollar trades against the currencies of Australia and New Zealand were unprofitable especially in the second half of the quarter. Long U.S. dollar trades against the Japanese yen and Norwegian krone posted losses, particularly in April. Trading the U.S. dollar against the euro, Polish zloty, Swedish krona, Brazilian real and Chilean peso added to the losses. On the other hand, during April and May, short U.S. dollar trades versus the British pound, Indian rupee, Israeli shekel, Russian ruble and Swiss franc produced partially offsetting profits.

Grains prices were volatile during the quarter, spiking and plunging along with a variety of events including drought concerns and robust demand from China, the U.S. and elsewhere as the global economy reopened; the multi-year highs reached in May while rains in the U.S. Midwest and Canada eased severe drought concerns; and the release of the USDA grain stocks June 30th report showing sharp inventory declines from a year ago. On balance, trading of wheat, corn and soybean meal registered losses, while a long soybean oil trade posted a partially offsetting gain.

A short coffee position was unprofitable when coffee prices increased as the 2020 drought reduced recent supplies from Brazil, Colombia and Nicaragua, and because logistics and customs issues constrained Brazilian exports. Trading of sugar was slightly unprofitable too.

Three months ended March 31, 2021

The Partnership was profitable in the quarter as gains from trading equity, energy and grain futures outpaced losses from trading interest rate futures, metal futures and currency forwards. Trading of livestock and soft commodity futures was marginally negative.

The global reflation trade gathered momentum throughout the quarter amid fiscal stimulus expansion from the Biden Administration; Federal Reserve (the “Fed”) Chairman Powell reiterating in testimony before Congress that the Fed will maintain low interest rates and continue asset purchases until “substantial further progress has been made” toward its employment and inflation goals; the global vaccine rollout; and the resurgence of global trade. Periodically, however, the growth outlook and investor enthusiasm were tamped down and markets experienced increased volatility while concerns about the slow pace of vaccine distribution in Europe, Asia and emerging markets relative to the U.S. and U.K. lingered; evidence of moderating monetary and fiscal policy support came out of China; and the geopolitical conflict between China and the U.S. expanded.

Trading of equity futures was highly profitable. Positive impulses from massive fiscal and monetary policy support globally outweighed the negative impact of higher global interest rates and less synchronous global growth. The Reddit-driven short frenzy in January, Archegos events in March, and the week-long Suez Canal closure in March did not seem to have long-term effects on equity markets. Long positions in U.S., Canadian, European, British, Chinese and EAFE equity index futures were profitable. A short VIX position and trading of the EEM emerging market index future were also profitable. On the other hand, trading of South African, Brazilian and Australian futures registered small offsetting losses.

Energy markets were volatile during the quarter. After exceeding 2-year highs early in March amid strong reflation trade and Organization of the Petroleum Exporting Countries’ production restraint, crude prices dropped sharply as reopening demand expectations receded along with the global growth outlook. For example, Brent crude climbed from just over $50/barrel at the start of the year to nearly $71/barrel on March 7, but plunged to nearly $60/barrel on March 23. Even though the closure of the Suez Canal provided some support to crude prices, Brent closed the month at less than $63/barrel. Overall, long positions in Brent crude, RBOB gasoline, London gas oil and heating oil were profitable. On the other hand, a short natural gas trade was unprofitable, especially as prices rose in January in response to unusually cold weather across Europe and China and in February in the wake of weather-induced energy market turmoil in Texas. Trading of WTI crude oil was slightly unprofitable as well.

Chinese demand for U.S. exports, a weaker than expected U.S. harvest of row crops and dry weather in South America contributed to profits on long corn, soybean and soybean oil trades. Then, on March 31 the USDA reported that farmers are likely to plant lower-than-expected corn and soybean acreage in 2021, and corn and soybean prices traded limit-up on the day, reinforcing results from earlier in the quarter. Trading of soybean meal was marginally unprofitable.

Interest rates were volatile during the quarter, trading across a broad range in January, spiking higher in February, and then dropping back sharply in March before entering volatile range-trading to close out the period. Amid growth, inflation and government borrowing concerns, global note and bond yields pushed sharply higher during the January-February period as evidenced by the German 10-year Bund yield which rose from about -0.60% at the start of January to as high as -0.23% on February 25. Then, as growth optimism faded somewhat in March, the Bund yield fell to -0.39% on March 21 before closing the quarter at -0.32%. Long positions in U.S., Canadian and Australian long bond futures were unprofitable, especially in February. Trading of German, French, Italian and Japanese bond futures were also unprofitable, particularly in January and March. Trading of U.S., British, Australian, German and Italian short-term interest rate futures registered small losses as well. On the other hand, short positions in the U.S. 5-year note future and in the German ultra-long bond future posted partially offsetting gains in February.

Currency markets too were impacted by the fluid growth, inflation and interest rate developments, and trading of currency forwards was mixed and unprofitable. The euro, which traded toward five-year highs during January and February, declined sharply in March and a long euro position against the dollar was unprofitable. Long Swiss franc and Swedish krona positions were also unprofitable. Trading the U.S. dollar against the currencies of Brazil and Singapore posted losses, as did a long U.S. dollar/short Canadian dollar position as commodity currencies outperformed. On the other hand, long U.S. dollar positions versus the Japanese yen and Israeli shekel, short dollar trades versus the Norwegian krone and South African rand, and trading the dollar against the British pound sterling produced partially offsetting gains.

The improving economic outlook and COVID-19 prognosis together with higher interest rates and a stronger U.S. dollar weighed on precious metal prices and long gold and silver positions posted losses. Meanwhile, long positions in copper and aluminum produced partially offsetting profits, especially in February as prices rose and reflation optimism was high.

OFF-BALANCE SHEET ARRANGEMENTS

The Partnership does not engage in off-balance sheet arrangements with other entities.

2328

CONTRACTUAL OBLIGATIONS

The Partnership does not enter into any contractual obligations or commercial commitments to make future payments of a type that would be typical for an operating company or that would affect its liquidity or capital resources. The Partnership’s sole business is trading futures, forward currency, spot, option and swap contracts, both long (contracts to buy) and short ~~(contacts~~(contracts to sell). All such contracts are settled by offset, not delivery. Substantially all such contracts are for settlement within four months of the trade date and substantially all such contracts are held by the Partnership for less than four months before being offset or rolled over into new contracts with similar maturities. The financial statements present a Condensed ~~Schedules~~Schedule of Investments setting forth the Partnership’s open futures and forward currency contracts, both long and short, at ~~March 31,~~June 30, 2022.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required.

ITEM 4. CONTROLS AND PROCEDURES

The General Partner, with the participation of its principal executive officers and principal financial officer, has evaluated the effectiveness of the design and operation of its disclosure controls and procedures with respect to the Partnership as of the end of the period covered by this quarterly report, and, based on its evaluation, has concluded that these disclosure controls and procedures are effective. There were no changes in the General Partner's internal controls over financial reporting during the quarter ended ~~March 31,~~June 30, 2022 that have materially affected, or are reasonably likely to materially affect, the General Partner's internal controls over financial reporting with respect to the Partnership.

PART II. OTHER INFORMATION

ITEM 1. Legal Proceedings

None.

ITEM 1A. Risk Factors

Not required.

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

(a) Pursuant to the Partnership's Agreement of Limited Partnership, the Partnership may sell Interests at the beginning of each calendar month. As of the quarter ending ~~March 31,~~June 30, 2022, the Partnership sold no Interests to new and existing limited partners.

Each of the foregoing Interests were offered and sold only to “accredited investors” as defined in Rule 501(a) under the Securities Act of 1933 as amended (the “1933 Act”), in reliance on the exemption from registration provided by Rule 506(b) under the 1933 Act.

(b) Pursuant to the Partnership’s Agreement of Limited Partnership, Limited Partners may redeem their Interests at the end of each calendar month at the then current month-end net asset value. The redemption of Interests has no impact on the value of Interests that remain outstanding, and Interests are not reissued once redeemed.

The following table summarizes Interests redeemed during the three months ended March 31, 2022:
Date of
‎Withdrawal
Limited
‎Partners
Special Limited
‎Partners
Total
January 31, 2022
$               (229,563)
$            (200,000)
$                      (429,563)
February 28, 2022
(76,240)
(21,180)
(97,420)
March 31, 2022
(549,552)
(50,883)
(600,435)
Total
$               (855,355)
$            (272,063)
$                   (1,127,418)


The following table summarizes Interests redeemed during the three months ended June 30, 2022:

Date of ‎Withdrawal	Limited ‎Partners	Special Limited ‎Partners	Total

April 30, 2022	$ -	$ -	$ -
May 31, 2022	(101,306)	(10,831)	(112,137)
June 30, 2022	(552,295)	(46,658)	(598,953)
Total	$ (653,601)	$ (57,489)	$ (711,090)

ITEM 3. Defaults Upon Senior Securities

None.

ITEM 4. Mine Safety Disclosures

Not Applicable.

ITEM 5. Other Information

None.

ITEM 6. Exhibits

The following exhibits are included herewith:


31.01		Rule 13(a)-14(a)/15(d)-14(a) Certification of Co-Chief Executive Officer
31.02		Rule 13(a)-14(a)/15(d)-14(a) Certification of Co-Chief Executive Officer
31.03		Rule 13(a)-14(a)/15(d)-14(a) Certification of President and Chief Operating Officer
31.04		Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Financial Officer
32.01		Section 1350 Certification of Co-Chief Executive Officer
32.02		Section 1350 Certification of Co-Chief Executive Officer
32.03		Section 1350 Certification of President and Chief Operating Officer
32.04		Section 1350 Certification of Chief Financial Officer

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

SIGNATURES

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


By:	Millburn Ridgefield Corporation,	/s/ Michael W. Carter
	General Partner	Michael W. Carter
		Vice-President
Date: ~~May 16,~~August 12, 2022		(Principal Accounting Officer)

‎

2530


Nestor Partners
Statements of Changes in Partners' Capital (unaudited)



For the three months ended March 31, 2022:

		Limited Partners		Special Limited Partners		New Profit Memo Account		General Partner		Total

PARTNERS' CAPITAL-
January 1, 2022	$	56,461,012	$	59,453,090	$	-	$	2,446,496	$	118,360,598
Contributions		-		-		-		-		-
Withdrawals		(855,355)		(272,063)		-		-		(1,127,418)
Net income		3,198,913		3,819,667		-		160,077		7,178,657
General Partner's allocation:
New Profit-Accrued		(108,651)		(1,124)		-		-		(109,775)
PARTNERS' CAPITAL-
March 31, 2022	$	58,695,919	$	62,999,570	$	-	$	2,606,573	$	124,302,062


For the three months ended March 31, 2021:
		Limited Partners		Special Limited Partners		New Profit Memo Account		General Partner		Total

PARTNERS' CAPITAL-
January 1, 2021	$	59,408,722	$	56,659,557	$	-	$	2,480,650	$	118,548,929
Contributions		-		-		-		-		-
Withdrawals		(3,383,770)		(105,758)		-		-		(3,489,528)
Net income		1,475,843		1,853,515		-		83,386		3,412,744
General Partner's allocation:
New Profit-Accrued		(237)		-		-		-		(237)
PARTNERS' CAPITAL-
March 31, 2021	$	57,500,558	$	58,407,314	$	-	$	2,564,036	$	118,471,908


See notes to financial statements (unaudited)



Period ended March 31, 2022

Month Ended:		Total Partners' ‎Capital

March 31, 2022	$	124,302,062
December 31, 2021		118,360,598


		Three Months ended
Change in Partners' Capital	$	5,941,464
Percent Change		5.02%