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: ~~September 30, 2022~~March 31, 2023


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

Commission File Number: 000-50725

NESTOR PARTNERS

(Exact name of registrant as specified in its charter)


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,” “accelerated filer,” “smaller reporting 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 No x


PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS



Nestor Partners
Financial statements
~~For~~As of and for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 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 ~~(c)~~(b)						87
Statements of Financial Highlights (b)						98
Notes to the Financial Statements						109

(a) At ~~September 30, 2022~~March 31, 2023 (unaudited) and December 31, ~~2021~~2022
(b) ~~For~~As of and for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022 ~~and 2021~~ (unaudited)
~~(c) For the nine months ended September 30, 2022 and 2021 (unaudited)~~

‎


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

		September 30, 2022 (unaudited)		December 31, 2021		March 31, 2023 (unaudited)		December 31, 2022
ASSETS

EQUITY IN TRADING ACCOUNTS:
Investments in U.S. Treasury notes − at fair value
(amortized cost $18,290,887 and $19,568,494)	$	18,148,601	$	19,563,280
(amortized cost $18,680,868 and $25,557,253)					$	18,661,309	$	25,376,719
Net unrealized appreciation on open futures and forward
currency contracts		4,160,591		481,160		1,495,158		6,564,636
Due from brokers, net		6,954,250		3,826,824		4,908,382		6,465,226
Cash denominated in foreign currencies (cost $1,682,789
and $1,080,882)		1,622,028		1,072,270
Cash denominated in foreign currencies (cost $387,117
and -$2,514)						394,874		5,005

Total equity in trading accounts		30,885,470		24,943,534		25,459,723		38,411,586

INVESTMENTS IN U.S. TREASURY NOTES − at fair value
(amortized cost $101,205,901 and $85,727,554)		100,474,212		85,711,769
(amortized cost $89,428,853 and $88,668,229)						89,237,482		88,232,276

CASH AND CASH EQUIVALENTS		10,927,279		8,987,690		6,493,454		9,166,375

ACCRUED INTEREST RECEIVABLE		592,653		676,077		709,481		654,085

TOTAL	$	142,879,614	$	120,319,070	$	121,900,140	$	136,464,322

LIABILITIES AND PARTNERS' CAPITAL

LIABILITIES:
Capital contributions received in advance					$	7,514	$	-
Net unrealized depreciation on open futures and forward
currency contracts	$	-	$	766,206		118,701		-
Accrued brokerage fees		202,570		187,123		168,166		197,643
Due to brokers, net		-		93,087
Cash overdraft denominated in foreign currencies (cost $15,109
and $177,683)		13,301		177,244
Cash overdraft denominated in foreign currencies (cost $426,438
and $1,538,325)						438,950		1,598,022
Accrued expenses		114,883		25,658		115,753		35,306
Capital withdrawals payable to Limited Partners		1,040,341		458,676		481,824		635,176
Capital withdrawals payable to General Partner		-		250,478		-		1,952,102
Accrued profit share		1,677,693		-

Total liabilities		3,048,788		1,958,472		1,330,908		4,418,249

PARTNERS' CAPITAL		139,830,826		118,360,598		120,569,232		132,046,073

TOTAL	$	142,879,614	$	120,319,070	$	121,900,140	$	136,464,322


See notes to financial statements (unaudited)


Nestor Partners
Condensed Schedule of Investments
March 31, 2023 (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	0.01	%	$	7,604
Energies	0.42			507,337
Grains	0.05			64,050
Interest rates:
10 Year U.S. Treasury Note (119 contracts, settlement date June 2023)	0.00			4,047
30 Year U.S. Treasury Bond (14 contracts, settlement date June 2023)	0.01			12,687
Other	(0.09)			(113,540)

Total interest rates	(0.08)			(96,806)

Metals	(0.10)			(112,945)
Softs	0.08			99,109
Stock indices	0.90			1,085,249

Total long futures contracts	1.28			1,553,598

Short futures contracts:
Currencies	0.00			3,629
Energies	(0.02)			(20,094)
Grains	(0.00)			(2,990)
Interest rates	(0.12)			(142,885)
Livestock	0.01			6,890
Metals	0.01			15,386
Softs	(0.03)			(39,702)
Stock indices	0.01			7,668

Total short futures contracts	(0.14)			(172,098)

TOTAL INVESTMENTS IN FUTURES CONTRACTS − Net	1.14			1,381,500
FORWARD CURRENCY CONTRACTS
Total long forward currency contracts	2.23			2,688,099
Total short forward currency contracts	(2.23)			(2,693,142)

TOTAL INVESTMENTS IN FORWARD CURRENCY
CONTRACTS − Net	(0.00)			(5,043)

TOTAL	1.14	%	$	1,376,457

				(Continued)

Nestor Partners
Condensed Schedule of Investments
September 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
0.01
%
$
7,110
Energies
(0.38)
(516,003)
Grains
0.04
54,763
Interest rates
(0.01)
(12,810)
Livestock
(0.00)
(4,190)
Metals
(0.55)
(770,099)
Softs
0.00
461
Stock indices
0.05
70,577
Total long futures contracts
(0.84)
(1,170,191)
Short futures contracts:
Currencies
0.03
46,607
Energies
0.03
43,544
Grains
0.24
331,027
Interest rates:
5 Year U.S. Treasury Note (252 contracts, settlement date December 2022)
0.02
34,821
30 Year U.S. Treasury Bond (76 contracts, settlement date December 2022)
0.05
71,937
Other
0.83
1,155,628
Total interest rates
0.90
1,262,386
Livestock
0.01
9,380
Metals
0.57
795,072
Softs
0.01
17,404
Stock indices
0.72
1,000,947
Total short futures contracts
2.51
3,506,367
TOTAL INVESTMENTS IN FUTURES CONTRACTS − Net
1.67
2,336,176
FORWARD CURRENCY CONTRACTS
Total long forward currency contracts
(1.68)
(2,354,748)
Total short forward currency contracts
2.99
4,179,163
TOTAL INVESTMENTS IN FORWARD CURRENCY
CONTRACTS − Net
1.31
1,824,415
TOTAL
2.98
%
$
4,160,591
(Continued)


Nestor Partners
Condensed Schedule of Investments
March 31, 2023 (unaudited)

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

$	25,270,000	U.S. Treasury notes, 1.750%, 05/15/2023	20.89	%	$	25,184,615
	25,470,000	U.S. Treasury notes, 2.500%, 08/15/2023	20.95			25,258,579
	37,000,000	U.S. Treasury notes, 2.750%, 11/15/2023	30.31			36,543,281
	21,270,000	U.S. Treasury notes, 2.750%, 02/15/2024	17.34			20,912,316

		TOTAL INVESTMENTS IN U.S. TREASURY
		NOTES (amortized cost $108,109,721)	89.49	%	$	107,898,791

	See notes to financial statements (unaudited)					(Concluded)

Nestor Partners
Condensed Schedule of Investments
September 30, 2022 (unaudited)
U.S. TREASURY NOTES
Face
‎Amount
Description
Fair Value as a % of Partners' Capital
Fair Value
$
39,100,000
U.S. Treasury notes, 1.625%, 11/15/2022
27.91
%
$
39,032,797
28,170,000
U.S. Treasury notes, 2.000%, 02/15/2023
20.02
27,996,138
26,870,000
U.S. Treasury notes, 1.750%, 05/15/2023
18.95
26,498,963
25,470,000
U.S. Treasury notes, 2.500%, 08/15/2023
17.95
25,094,915
TOTAL INVESTMENTS IN U.S. TREASURY
NOTES (amortized cost $119,496,788)
84.83
%
$
118,622,813
See notes to financial statements (unaudited)
(Concluded)

‎


Nestor Partners	Nestor Partners				Nestor Partners
Condensed Schedule of Investments	Condensed Schedule of Investments				Condensed Schedule of Investments
December 31, 2021
December 31, 2022					December 31, 2022

Futures and Forward Currency Contracts	Net Unrealized ‎Appreciation/ ‎(Depreciation) as a % of ‎Partners' Capital			Net Unrealized ‎Appreciation/ ‎(Depreciation)	Net Unrealized ‎Appreciation/ ‎(Depreciation) as a % of ‎Partners' Capital			Net Unrealized ‎Appreciation/ ‎(Depreciation)
FUTURES CONTRACTS
Long futures contracts:
Currencies	0.00	%	$	3,688	0.01	%	$	14,239
Energies	0.42			492,605	0.91			1,196,200
Grains	0.01			12,662	0.09			111,793
Interest rates	(0.79)			(939,443)	(0.04)			(52,481)
Livestock	(0.01)			(5,370)	(0.01)			(7,130)
Metals	1.01			1,197,013	0.18			242,463
Softs	(0.01)			(15,847)	(0.02)			(26,476)
Stock indices	0.19			224,522	(0.06)			(75,258)

Total long futures contracts	0.82			969,830	1.06			1,403,350

Short futures contracts:
Currencies	0.00			1,398	(0.00)			(5,951)
Energies	0.06			65,449	0.67			879,485
Grains	0.01			6,149	(0.02)			(28,225)
Interest rates	0.04			49,461
Livestock	0.00			5,170
Interest rates:
2 Year U.S. Treasury Note (224 contracts, settlement date March 2023)					0.06			80,711
30 Year U.S. Treasury Bond (75 contracts, settlement date March 2023)					0.01			13,375
Other					2.84			3,753,511

Total interest rates					2.91			3,847,597

Metals	(0.89)			(1,047,948)	(0.15)			(196,302)
Softs	0.01			6,910	(0.01)			(9,120)
Stock indices	0.03			38,964	0.03			36,853

Total short futures contracts	(0.74)			(874,447)	3.43			4,524,337

TOTAL INVESTMENTS IN FUTURES CONTRACTS − Net	0.08			95,383	4.49			5,927,687
FORWARD CURRENCY CONTRACTS
Total long forward currency contracts	1.43			1,688,217	1.05			1,392,974
Total short forward currency contracts	(1.75)			(2,068,646)	(0.57)			(756,025)

TOTAL INVESTMENTS IN FORWARD CURRENCY
CONTRACTS − Net	(0.32)			(380,429)	0.48			636,949

TOTAL	(0.24)	%	$	(285,046)	4.97	%	$	6,564,636

				(Continued)				(Continued)



Nestor Partners	Nestor Partners						Nestor Partners
Condensed Schedule of Investments	Condensed Schedule of Investments						Condensed Schedule of Investments
December 31, 2021
December 31, 2022							December 31, 2022

	U.S. TREASURY NOTES						U.S. TREASURY NOTES
	Face ‎Amount	Description	Fair Value as a % of Partners' Capital			Fair Value	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	21,270,000	U.S. Treasury notes, 2.000%, 02/15/2023	16.07	%	$	21,213,917
	47,840,000	U.S. Treasury notes, 2.375%, 03/15/2022	40.61			48,062,381	24,370,000	U.S. Treasury notes, 1.750%, 05/15/2023	18.26			24,115,828
	26,270,000	U.S. Treasury notes, 1.750%, 05/15/2022	22.32			26,423,926	25,470,000	U.S. Treasury notes, 2.500%, 08/15/2023	19.03			25,121,777
							43,900,000	U.S. Treasury notes, 2.750%, 11/15/2023	32.68			43,157,473
		TOTAL INVESTMENTS IN U.S. TREASURY
		NOTES (amortized cost $105,296,048)	88.94	%	$	105,275,049		TOTAL INVESTMENTS IN U.S. TREASURY
								NOTES (amortized cost $114,225,482)	86.04	%	$	113,608,995
	See notes to financial statements (unaudited)					(Concluded)
							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
		September 30, 2022		September 30, 2021		March 31, 2023		March 31, 2022
INVESTMENT INCOME:
Interest income, net	$	516,140	$	3,014	$	1,104,537	$	59,612

EXPENSES:
Brokerage fees		678,898		687,834		640,548		644,565
Administrative expenses		81,419		77,506		80,448		72,714
Custody fees and other expenses		5,767		5,259		5,445		5,248

Total expenses		766,084		770,599		726,441		722,527

NET INVESTMENT LOSS		(249,944)		(767,585)
NET INVESTMENT INCOME (LOSS)						378,096		(662,915)

NET REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) on closed positions:
Futures and forward currency contracts		9,711,636		(9,347,390)		(5,808,621)		5,144,122
Foreign exchange transactions		90,403		(194,841)		(86,888)		(50,478)
Net change in unrealized:
Futures and forward currency contracts		(589,700)		2,210,720		(5,188,179)		2,856,992
Foreign exchange translation		(45,742)		(14,981)		47,423		24,278
Net losses from U.S. Treasury notes:
Net gains (losses) from U.S. Treasury notes:
Realized		(3,545)		-		(39,796)		(687)
Net change in unrealized		(304,894)		(3,120)		405,557		(132,655)

Total net realized and unrealized gains (losses)		8,858,158		(7,349,612)		(10,670,504)		7,841,572


NET INCOME (LOSS)		8,608,214		(8,117,197)		(10,292,408)		7,178,657
LESS PROFIT SHARE TO (FROM) GENERAL PARTNER		789,348		(9,174)
LESS PROFIT SHARE TO GENERAL PARTNER						-		109,775
NET INCOME (LOSS) AFTER PROFIT SHARE TO
GENERAL PARTNER	$	7,818,866	$	(8,108,023)	$	(10,292,408)	$	7,068,882

See notes to financial statements (unaudited)								(Concluded)

Nestor Partners
Statements of Operations (unaudited)
For the nine months ended
September 30, 2022
September 30, 2021
INVESTMENT INCOME:
Interest income, net
$
876,576
$
23,442
EXPENSES:
Brokerage fees
2,013,694
2,081,226
Administrative expenses
234,573
227,449
Custody fees and other expenses
16,802
15,671
Total expenses
2,265,069
2,324,346
NET INVESTMENT LOSS
(1,388,493)
(2,300,904)
NET REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) on closed positions:
Futures and forward currency contracts
24,119,753
10,939,894
Foreign exchange transactions
(19,296)
(107,133)
Net change in unrealized:
Futures and forward currency contracts
4,445,637
(3,976,983)
Foreign exchange translation
(50,780)
(256,256)
Net gains (losses) from U.S. Treasury notes:
Realized
(17,027)
(366)
Net change in unrealized
(852,976)
3,945
Total net realized and unrealized gains
27,625,311
6,603,101
NET INCOME
26,236,818
4,302,197
LESS PROFIT SHARE TO GENERAL PARTNER
1,684,633
203
NET INCOME AFTER PROFIT SHARE TO
GENERAL PARTNER
$
24,552,185
$
4,301,994
See notes to financial statements (unaudited)
(Concluded)


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



For the three months ended March 31, 2023:

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

PARTNERS' CAPITAL-
January 1, 2023	$	61,612,725	$	68,227,951	$	-	$	2,205,397	$	132,046,073
Contributions		-		56,101		-		-		56,101
Withdrawals		(1,060,705)		(179,829)		-		-		(1,240,534)
Net loss		(5,001,322)		(5,126,927)		-		(164,159)		(10,292,408)
General Partner's allocation:
New Profit-Accrued		-		-		-		-		-
PARTNERS' CAPITAL-
March 31, 2023	$	55,550,698	$	62,977,296	$	-	$	2,041,238	$	120,569,232


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


See notes to financial statements (unaudited)

‎

Nestor Partners
Statements of Changes in Partners' Capital (unaudited)
For the nine months ended September 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
486,599
-
6,940
-
493,539
Withdrawals
(2,076,274)
(1,499,222)
-
-
(3,575,496)
Net income
11,658,454
13,991,312
550
586,502
26,236,818
General Partner's allocation:
New Profit-Accrued
(1,604,073)
(80,560)
-
-
(1,684,633)
PARTNERS' CAPITAL-
September 30, 2022
$
64,925,718
$
71,864,620
$
7,490
$
3,032,998
$
139,830,826
For the nine months ended September 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
-
-
13
-
13
Withdrawals
(5,458,004)
(577,002)
-
-
(6,035,006)
Reclass ⁽¹⁾
138,837
(138,837)
-
-

Net income
1,532,219
2,648,353
-
121,625
4,302,197
General Partner's allocation:
New Profit-Accrued
(203)
-
-
-
(203)
PARTNERS' CAPITAL-
September 30, 2021
$
55,621,571
$
58,592,071
$
13
$
2,602,275
$
116,815,930
⁽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 March 31, 2023 and 2022	Limited ‎Partners				Special Limited ‎Partners
	2023		2022		2023		2022

Ratios to average capital:
Net investment income (loss) (a)	(0.27)	%	(3.72)	%	2.56	%	(0.91)	%

Total expenses (a)	3.84	%	3.92	%	1.01	%	1.11	%
Profit share allocation (b) (c)	0.00	%	0.19	%	0.00	%	0.00	%
Total expenses and profit share allocation	3.84	%	4.11	%	1.01	%	1.11	%

Total return before profit share allocation (b)	(8.14)	%	5.68	%	(7.49)	%	6.42	%
Less: profit share allocation (b) (c)	0.00	%	0.19	%	0.00	%	0.00	%
Total return after profit share allocation	(8.14)	%	5.49	%	(7.49)	%	6.42	%

(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 September 30, 2022 and 2021
Limited
‎Partners
Special Limited
‎Partners
2022
2021
2022
2021
Ratios to average capital:
Net investment income (loss) (a)
(2.33)
%
(3.98)
%
0.56
%
(1.23)
%
Total expenses (a)
3.88
%
3.99
%
0.97
%
1.24
%
Profit share allocation (b) (c)
1.22
%
(0.02)
%
0.05
%
0.00
%
Total expenses and profit share allocation
5.10
%
3.97
%
1.02
%
1.24
%
Total return before profit share allocation (b)
6.12
%
(6.82)
%
6.81
%
(6.17)
%
Less: profit share allocation (b) (c)
1.22
%
(0.02)
%
0.05
%
0.00
%
Total return after profit share allocation
4.90
%
(6.80)
%
6.76
%
(6.17)
%
(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 nine months ended September 30, 2022 and 2021
Limited
‎Partners
Special Limited
‎Partners
2022
2021
2022
2021
Ratios to average capital:
Net investment loss (a)
(3.00)
%
(3.96)
%
(0.12)
%
(1.18)
%
Total expenses (a)
3.90
%
3.99
%
1.02
%
1.21
%
Profit share allocation (b) (c)
2.68
%
0.00
%
0.12
%
0.00
%
Total expenses and profit share allocation
6.58
%
3.99
%
1.14
%
1.21
%
Total return before profit share allocation (b)
20.81
%
2.45
%
23.64
%
4.61
%
Less: profit share allocation (b) (c)
2.68
%
0.00
%
0.12
%
0.00
%
Total return after profit share allocation
18.13
%
2.45
%
23.52
%
4.61
%
(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 ~~September 30, 2022~~March 31, 2023 (unaudited) and December 31, ~~2021 (audited)~~ 2022and the results of its operations for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 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.~~2022. The December 31, ~~2021~~2022 information has been derived from the audited financial statements as of December 31, ~~2021.~~2022.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“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~~2019 to ~~2021,~~2022, Millburn Ridgefield Corporation (the “General Partner”) has determined that no 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.~~2022.

2. FAIR VALUE

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.

‎

109

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.

The following tables represent the Partnership’s investments by hierarchical level as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 in valuing the Partnership’s investments at fair value. During the ~~nine~~three and twelve months ended ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, respectively, the Partnership held no assets or liabilities in Level 3. At ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, the Partnership held no assets or liabilities in Level 3.


Financial assets and liabilities at fair value as of September 30, 2022
Financial assets and liabilities at fair value as of March 31, 2023							Financial assets and liabilities at fair value as of March 31, 2023

		Level 1		Level 2		Total		Level 1		Level 2		Total

U.S. Treasury Notes (1)	$	118,622,813	$	-	$	118,622,813	$	107,898,791	$	-	$	107,898,791
Short-Term Money Market Fund*		10,677,279		-		10,677,279		6,243,454		-		6,243,454
Exchange-Traded Futures Contracts
Currencies		53,717		-		53,717		11,233		-		11,233
Energies		(472,459)		-		(472,459)		487,243		-		487,243
Grains		385,790		-		385,790		61,060		-		61,060
Interest rates		1,249,576		-		1,249,576		(239,691)		-		(239,691)
Livestock		5,190		-		5,190		6,890		-		6,890
Metals		24,973		-		24,973		(97,559)		-		(97,559)
Softs		17,865		-		17,865		59,407		-		59,407
Stock indices		1,071,524		-		1,071,524		1,092,917		-		1,092,917

Total exchange-traded futures contracts		2,336,176		-		2,336,176		1,381,500		-		1,381,500

Over-the-Counter Forward Currency Contracts		-		1,824,415		1,824,415		-		(5,043)		(5,043)

Total futures and forward currency contracts (2)		2,336,176		1,824,415		4,160,591		1,381,500		(5,043)		1,376,457

Total financial assets and liabilities at fair value	$	131,636,268	$	1,824,415	$	133,460,683	$	115,523,745	$	(5,043)	$	115,518,702


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				$	18,148,601	Investments in U.S. Treasury notes held in equity trading accounts as collateral				$	18,661,309
Investments in U.S. Treasury notes						100,474,212						89,237,482
Total investments in U.S. Treasury notes					$	118,622,813					$	107,898,791

(2)
Net unrealized appreciation on open futures and forward currency contracts	Net unrealized appreciation on open futures and forward currency contracts				$	4,160,591	Net unrealized appreciation on open futures and forward currency contracts				$	1,495,158
Net unrealized depreciation on open futures and forward currency contracts	Net unrealized depreciation on open futures and forward currency contracts					-	Net unrealized depreciation on open futures and forward currency contracts					(118,701)
Total net unrealized appreciation on open futures and forward currency contracts	Total net unrealized appreciation on open futures and forward currency contracts				$	4,160,591	Total net unrealized appreciation on open futures and forward currency contracts				$	1,376,457

*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.

1110



Financial assets and liabilities at fair value as of December 31, 2021
Financial assets and liabilities at fair value as of December 31, 2022							Financial assets and liabilities at fair value as of December 31, 2022

		Level 1		Level 2		Total		Level 1		Level 2		Total

U.S. Treasury Notes (1)	$	105,275,049	$	-	$	105,275,049	$	113,608,995	$	-	$	113,608,995
Short-Term Money Market Fund*		8,737,690		-		8,737,690		8,916,375		-		8,916,375
Exchange-Traded Futures Contracts
Currencies		5,086		-		5,086		8,288		-		8,288
Energies		558,054		-		558,054		2,075,685		-		2,075,685
Grains		18,811		-		18,811		83,568		-		83,568
Interest rates		(889,982)		-		(889,982)		3,795,116		-		3,795,116
Livestock		(200)		-		(200)		(7,130)		-		(7,130)
Metals		149,065		-		149,065		46,161		-		46,161
Softs		(8,937)		-		(8,937)		(35,596)		-		(35,596)
Stock indices		263,486		-		263,486		(38,405)		-		(38,405)

Total exchange-traded futures contracts		95,383		-		95,383		5,927,687		-		5,927,687

Over-the-Counter Forward Currency Contracts		-		(380,429)		(380,429)		-		636,949		636,949

Total futures and forward currency contracts (2)		95,383		(380,429)		(285,046)		5,927,687		636,949		6,564,636

Total financial assets and liabilities at fair value	$	114,108,122	$	(380,429)	$	113,727,693	$	128,453,057	$	636,949	$	129,090,006


Per line item in 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				$	19,563,280	Investments in U.S. Treasury notes held in equity trading accounts as collateral				$	25,376,719
Investments in U.S. Treasury notes						85,711,769						88,232,276
Total investments in U.S. Treasury notes					$	105,275,049					$	113,608,995

(2)
Net unrealized appreciation on open futures and forward currency contracts	Net unrealized appreciation on open futures and forward currency contracts				$	481,160	Net unrealized appreciation on open futures and forward currency contracts				$	6,564,636
Net unrealized depreciation on open futures and forward currency contracts	Net unrealized depreciation on open futures and forward currency contracts					(766,206)	Net unrealized depreciation on open futures and forward currency contracts					-
Total net unrealized depreciation on open futures and forward currency contracts					$	(285,046)
Total net unrealized appreciation on open futures and forward currency contracts							Total net unrealized appreciation on open futures and forward currency contracts				$	6,564,636

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

3. DERIVATIVE INSTRUMENTS

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 ~~September 30, 2022,~~March 31, 2023, 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.
‎

1211

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 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 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.

‎

1312

The following tables present the fair value of open futures and forward currency contracts, held long or sold short, at ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021.~~2022. 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 September 30, 2022
Fair Value of Futures and Forward Currency Contracts at March 31, 2023											Fair Value of Futures and Forward Currency Contracts at March 31, 2023

										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	$	7,180	$	(70)	$	64,501	$	(17,894)	$	53,717	$	13,105	$	(5,501)	$	5,419	$	(1,790)	$	11,233
Energies		88,825		(604,828)		50,047		(6,503)		(472,459)		520,293		(12,956)		4,451		(24,545)		487,243
Grains		55,038		(275)		380,939		(49,912)		385,790		66,088		(2,038)		-		(2,990)		61,060
Interest rates		6,057		(18,867)		1,929,372		(666,986)		1,249,576		60,681		(157,487)		167,522		(310,407)		(239,691)
Livestock		-		(4,190)		9,810		(430)		5,190		-		-		8,110		(1,220)		6,890
Metals		24,547		(794,646)		864,640		(69,568)		24,973		97,216		(210,161)		231,149		(215,763)		(97,559)
Softs		4,560		(4,099)		19,554		(2,150)		17,865		99,109		-		20,606		(60,308)		59,407
Stock indices		87,646		(17,069)		1,233,201		(232,254)		1,071,524		1,163,043		(77,794)		276,500		(268,832)		1,092,917
Total futures contracts		273,853		(1,444,044)		4,552,064		(1,045,697)		2,336,176		2,019,535		(465,937)		713,757		(885,855)		1,381,500

Forward currency contracts		437,264		(2,792,012)		4,769,323		(590,160)		1,824,415		2,949,703		(261,604)		133,269		(2,826,411)		(5,043)

Total futures and
forward currency contracts	$	711,117	$	(4,236,056)	$	9,321,387	$	(1,635,857)	$	4,160,591	$	4,969,238	$	(727,541)	$	847,026	$	(3,712,266)	$	1,376,457


Fair Value of Futures and Forward Currency Contracts at December 31, 2021
Fair Value of Futures and Forward Currency Contracts at December 31, 2022											Fair Value of Futures and Forward Currency Contracts at December 31, 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	$	3,688	$	-	$	4,631	$	(3,233)	$	5,086	$	26,865	$	(12,626)	$	-	$	(5,951)	$	8,288
Energies		616,692		(124,087)		102,240		(36,791)		558,054		1,236,350		(40,150)		880,935		(1,450)		2,075,685
Grains		87,400		(74,738)		63,535		(57,386)		18,811		160,870		(49,077)		-		(28,225)		83,568
Interest rates		198,306		(1,137,749)		55,062		(5,601)		(889,982)		-		(52,481)		3,942,928		(95,331)		3,795,116
Livestock		-		(5,370)		5,220		(50)		(200)		290		(7,420)		-		-		(7,130)
Metals		1,260,221		(63,208)		39,297		(1,087,245)		149,065		397,429		(154,966)		151,995		(348,297)		46,161
Softs		5,098		(20,945)		21,123		(14,213)		(8,937)		90		(26,566)		14,759		(23,879)		(35,596)
Stock indices		471,298		(246,776)		181,224		(142,260)		263,486		30,433		(105,691)		135,763		(98,910)		(38,405)
Total futures contracts		2,642,703		(1,672,873)		472,332		(1,346,779)		95,383		1,852,327		(448,977)		5,126,380		(602,043)		5,927,687

Forward currency contracts		2,370,139		(681,922)		698,770		(2,767,416)		(380,429)		2,048,622		(655,648)		386,777		(1,142,802)		636,949

Total futures and
forward currency contracts	$	5,012,842	$	(2,354,795)	$	1,171,102	$	(4,114,195)	$	(285,046)	$	3,900,949	$	(1,104,625)	$	5,513,157	$	(1,744,845)	$	6,564,636

‎

1413

The effect of trading futures and forward currency contracts is represented on the Statements of Operations for ~~the~~ three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 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 nine~~ months ended ~~September 30,~~March 31, 2023 and 2022 ~~and 2021~~


Sector	Three months ended: September 30, 2022		Three months ended: September 30, 2021		Nine months ended: September 30, 2022		Nine months ended: September 30, 2021		Three months ended: March 31, 2023		Three months ended: March 31, 2022

Futures contracts:
Currencies	$	334,090	$	-	$	768,787	$	-	$	179,926	$	78,099
Energies		(4,813,186)		829,098		7,404,068		5,393,975		(3,054,079)		7,764,357
Grains		(1,042,048)		236,185		(444,468)		555,414		(214,450)		(454,162)
Interest rates		9,836,047		(2,079,622)		4,582,045		(1,648,007)		(8,038,947)		171,570
Livestock		(37,720)		(14,170)		3,050		(119,210)		8,660		(12,370)
Metals		363,583		(698,008)		(146,918)		502,339		265,003		(2,302,360)
Softs		(370,462)		25,586		(158,562)		(491,105)		(167,391)		165,493
Stock indices		2,099,199		(2,655,873)		9,228,969		7,904,992		97,801		1,321,065

Total futures contracts		6,369,503		(4,356,804)		21,236,971		12,098,398		(10,923,477)		6,731,692

Forward currency contracts		2,752,433		(2,779,866)		7,328,419		(5,135,487)		(73,323)		1,269,422

Total futures and
forward currency contracts	$	9,121,936	$	(7,136,670)	$	28,565,390	$	6,962,911	$	(10,996,800)	$	8,001,114

The following table presents average notional value by sector of open futures and forward currency contracts for the ~~nine~~three months ended ~~September 30,~~March 31, 2023 and 2022 ~~and 2021~~ in U.S. dollars. The Partnership’s average net asset value for the ~~nine~~three months ended ~~September 30,~~March 31, 2023 and 2022 ~~and 2021~~ was approximately ~~$128,000,000~~$125,000,000 and ~~$122,000,000,~~$119,000,000, respectively.


Average notional value by sector of futures and forward currency contracts for the nine months ended September 30, 2022 and 2021
Average notional value by sector of futures and forward currency contracts for the three months ended March 31, 2023 and 2022									Average notional value by sector of futures and forward currency contracts for the three months ended March 31, 2023 and 2022

		2022				2021					2023				2022
Sector		Long positions		Short positions		Long positions		Short positions			Long positions		Short positions		Long positions		Short positions

Futures contracts:
Currencies	$	812,765	$	5,364,101	$	-	$	-		$	3,773,233	$	856,008	$	765,982	$	4,501,330
Energies		16,419,240		3,316,170		23,113,846		1,275,987			22,809,357		2,035,086		18,187,070		2,063,304
Grains		5,529,551		8,282,718		6,147,309		9,342,858			7,561,569		789,700		10,365,052		2,696,518
Interest rates		105,613,800		74,429,609		244,089,488		42,428,068			25,651,152		141,854,566		132,690,559		57,360,599
Livestock		537,285		497,223		383,165		428,088			326,300		183,250		444,460		770,665
Metals		6,150,820		7,650,798		15,210,281		1,738,667			1,704,995		2,352,994		11,979,478		2,437,005
Softs		1,954,076		2,080,646		1,383,740		1,491,688			1,696,912		2,431,002		3,363,858		1,638,682
Stock indices		31,036,996		45,106,164		67,108,290		17,592,848			41,334,477		31,180,078		58,671,391		33,058,158

Total futures contracts		168,054,533		146,727,429		357,436,119		74,298,204			104,857,995		181,682,684		236,467,850		104,526,261

Forward currency contracts		24,752,761		62,211,088		50,342,715		49,671,763			57,965,349		10,652,126		37,766,152		56,709,909

Total futures and
forward currency contracts	$	192,807,294	$	208,938,517	$	407,778,834	$	123,969,967		$	162,823,344	$	192,334,810	$	274,234,002	$	161,236,170

1514

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 ~~September 30, 2022~~March 31, 2023 and ~~2021.~~2022. 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 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 as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021.~~2022.


Offsetting derivative assets and liabilities at September 30, 2022
Offsetting derivative assets and liabilities at March 31, 2023							Offsetting derivative assets and liabilities at March 31, 2023

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	$	1,320,783	$	(399,612)	$	921,171	$	1,183,514	$	(597,510)	$	586,004
Counterparty J		1,062,428		(476,069)		586,359		264,685		(128,560)		136,125
Counterparty L		2,442,706		(1,614,060)		828,646		1,285,093		(625,722)		659,371
Total futures contracts		4,825,917		(2,489,741)		2,336,176		2,733,292		(1,351,792)		1,381,500
		`
Forward currency contracts
Counterparty G		2,176,753		(1,697,894)		478,859
Counterparty K		3,029,834		(1,684,278)		1,345,556		2,142,937		(2,029,279)		113,658
Total forward currency contracts		5,206,587		(3,382,172)		1,824,415

Total assets	$	10,032,504	$	(5,871,913)	$	4,160,591	$	4,876,229	$	(3,381,071)	$	1,495,158

Liabilities								Gross amounts of ‎recognized liabilities		Gross amounts ‎offset in the ‎Statement of ‎Financial Condition		Net amounts of ‎liabilities presented in ‎the Statement of ‎Financial Condition
Forward currency contracts
Counterparty G							$	1,058,736	$	(940,035)	$	118,701

Total liabilities							$	1,058,736	$	(940,035)	$	118,701

‎

1615


					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		$	921,171	$	-	$	(921,171)	$	-		$	586,004	$	-	$	(586,004)	$	-
Counterparty G			478,859		-		-		478,859
Counterparty J			586,359		-		(586,359)		-			136,125		-		(136,125)		-
Counterparty K			1,345,556		-		-		1,345,556			113,658		-		-		113,658
Counterparty L			828,646		-		(828,646)		-			659,371		-		(659,371)		-

Total		$	4,160,591	$	-	$	(2,336,176)	$	1,824,415		$	1,495,158	$	-	$	(1,381,500)	$	113,658

														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 G											$	118,701	$	-	$	(118,701)	$	-

Total											$	118,701	$	-	$	(118,701)	$	-

⁽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.
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 September 30, 2022.
⁽³⁾ Net amount represents the amount that is subject to loss in the event of a counterparty failure as of March 31, 2023.										⁽³⁾ Net amount represents the amount that is subject to loss in the event of a counterparty failure as of March 31, 2023.
⁽⁴⁾ Net amount represents the amounts owed by the Partnership to each counterparty as of March 31, 2023.										⁽⁴⁾ Net amount represents the amounts owed by the Partnership to each counterparty as of March 31, 2023.


Offsetting derivative assets and liabilities at December 31, 2021
Offsetting derivative assets and liabilities at December 31, 2022							Offsetting derivative assets and liabilities at December 31, 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							$	3,008,522	$	(203,651)	$	2,804,871
Counterparty J	$	767,838	$	(354,289)	$	413,549		1,806,867		(159,073)		1,647,794
Counterparty L		1,859,710		(1,792,099)		67,611		2,163,318		(688,296)		1,475,022

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


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		6,978,707		(1,051,020)		5,927,687

Forward currency contracts
Counterparty G		1,536,772		(1,191,819)		344,953	$	884,233	$	(632,742)	$	251,491
Counterparty K		1,912,566		(1,877,090)		35,476		1,551,166		(1,165,708)		385,458
Total forward currency contracts		3,449,338		(3,068,909)		380,429		2,435,399		(1,798,450)		636,949

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

Total assets							$	9,414,106	$	(2,849,470)	$	6,564,636

					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									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 assets ‎presented in the Statement ‎of Financial Condition		Financial Instruments		Collateral Received⁽¹⁾⁽²⁾		Net Amount⁽³⁾

Counterparty C		$	385,777	$	-	$	(385,777)	$	-		$	2,804,871	$	-	$	(2,804,871)	$	-
Counterparty G			344,953		-		(344,953)		-			251,491		-		-		251,491
Counterparty J												1,647,794		-		(1,647,794)		-
Counterparty K			35,476		-		(35,476)		-			385,458		-		-		385,458
Counterparty L												1,475,022		-		(1,475,022)		-

Total		$	766,206	$	-	$	(766,206)	$	-		$	6,564,636	$	-	$	(5,927,687)	$	636,949

⁽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.										by the exchange.
⁽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	⁽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									⁽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.	for each respective counterparty.									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.
⁽³⁾ Net amount represents the amount that is subject to loss in the event of a counterparty failure as of December 31, 2022.										⁽³⁾ Net amount represents the amount that is subject to loss in the event of a counterparty failure as of December 31, 2022.

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 through 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 ~~$9,710,804~~$12,224,101 and ~~$8,359,643~~$10,489,098 at ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, respectively.

4. PROFIT SHARE

The following table indicates the total profit share earned and accrued during the three ~~and nine~~ months ended ~~September 30, 2022~~March 31, 2023 and ~~2021.~~2022. 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:
	September 30,		September 30,
	2022		2021
Profit share earned	$	5,354	$	13
Reversal of profit share ⁽¹⁾		(893,699)		(9,377)
Profit share accrued		1,677,693		190
Total profit share	$	789,348	$	(9,174)




	Nine months ended:				Three months ended:
	September 30,		September 30,		March 31,		March 31,
	2022		2021		2023		2022
Profit share earned	$	6,940	$	13	$	-	$	-
Profit share accrued		1,677,693		190		-		109,775
Total profit share	$	1,684,633	$	203	$	-	$	109,775

⁽¹⁾ on July 1^st

5. RELATED PARTY TRANSACTIONS

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 ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, $0 was owed to the General Partner.

6. SUBSEQUENT EVENTS

The General Partner has performed its evaluation of subsequent events from ~~October~~April 1, ~~2022~~2023 to ~~November 14, 2022,~~May 15, 2023, the date the Form 10-Q was filed. Based on such evaluation, no further events were discovered that required disclosure or adjustment to the 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 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 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, 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 nine~~ months ended ~~September 30, 2022,~~March 31, 2023, 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 September 30, 2022
Month Ended:
Total Partners'
‎Capital
September 30, 2022
$
139,830,826
June 30, 2022
133,256,995
December 31, 2021
118,360,598
Three Months ended
Nine Months ended
Change in Partners' Capital
$
6,573,831
$
21,470,228
Percent Change
4.93%
18.14%



Period ended March 31, 2023

Month Ended:		Total Partners' ‎Capital

March 31, 2023	$	120,569,232
December 31, 2022		132,046,073


		Three Months ended
Change in Partners' Capital	$	(11,476,841)
Percent Change		(8.69)%

THREE MONTHS ENDED ~~SEPTEMBER 30, 2022~~MARCH 31, 2023

The ~~increase~~decrease in the Partnership’s net assets of ~~$6,573,831~~$11,476,841 was attributable to net ~~income after profit share~~loss of ~~$7,818,866~~$10,292,408 and ~~contributions~~withdrawals of ~~$491,953,~~$1,240,534, which was partially offset by ~~withdrawals~~and contributions of ~~$1,736,988.~~$56,101.

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 ~~September 30, 2022~~March 31, 2023 decreased ~~$8,936~~$4,017 relative to the corresponding period in ~~2021.~~2022. The decrease was due to an increased amount of lower fee paying investors in the Partnership during the three months ended ~~September 30, 2022,~~March 31, 2023, relative to the corresponding period in ~~2021.~~2022.

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 ~~September 30, 2022~~March 31, 2023 increased ~~$513,126~~$1,044,925 relative to the corresponding period in ~~2021.~~2022. This increase was due predominantly to an increase in short-term U.S. treasury yields during the three months ended ~~September 30, 2022~~March 31, 2023 relative to the corresponding period in ~~2021.~~2022.

During the three months ended ~~September 30, 2022,~~March 31, 2023, the Partnership experienced net realized and unrealized ~~gains~~losses of ~~$8,858,158~~$10,670,504 from its trading operations (including foreign exchange translations and U.S. Treasury notes). Brokerage fees of ~~$678,898,~~$640,548, administrative expenses of ~~$81,419,~~$80,448, custody fees and other expenses of ~~$5,767 and accrued profit share of to the General Partner of $789,348 were incurred. The Partnership’s gains achieved from trading operations, in addition to interest~~$5,445. Interest income of ~~$516,140, were~~$1,104,537 partially offset by the Partnership expenses resulting in net ~~income~~loss after profit share to the General Partner of ~~$7,818,866.~~$10,292,408. An analysis of the trading gain (loss) by sector is as follows:


Sector	% Gain (Loss) of Partnership Capital
Currencies		~~2.40~~0.10	%
Energies		~~(3.69)~~(2.38)	%
Grains		~~(0.88)~~(0.15)	%
Interest rates		~~7.75~~(6.14)	%
Livestock		~~(0.09)~~0.03	%
Metals		0.23	%
Softs		~~(0.35)~~(0.10)	%
Stock indices		~~1.50~~0.12	%

Trading ~~Gain~~Loss		~~6.87~~(8.29)	%

~~NINE~~MANAGEMENT DISCUSSION –2023

Three months ended March 31, 2023

The Partnership was unprofitable in the quarter predominantly due to losses from trading interest rate and energy futures. Elsewhere, trading of non-energy commodity futures was marginally unprofitable, trading of equity index futures was flat and trading of currency forwards was marginally profitable.

During January, February and into early March, markets were volatile as the negative impulses from tightening of monetary policies and sluggish manufacturing and housing sectors globally clashed with the positive impulses from better than expected employment, consumption and service sector growth globally. Then, during the last three weeks of the quarter, the banking crisis evidenced by the sudden collapses of Silicon Valley Bank and Signature Bank in the U.S., the Swiss government’s brokered sale of Credit Suisse to UBS in Europe, and the challenges of other European and small and mid-sized U.S. banks rattled trading in financial and commodity markets.

Interest rates were volatile during the quarter. In January, global interest rates declined as many market participants came to believe that a further easing of price and wage inflation may lead to an easing of monetary policy in the second half of the year. During February and into early March, however, the global bond market rally stalled as signs of continued inflation, the “hot” U.S. labor market, better-than-expected economic data in the U.S. and Europe, and Congressional testimony by Federal Reserve (“Fed”) Chairman Powell on March 7th and 8th led some investors to believe that global interest rates were primed to go still higher as central banks continued to address inflation. However, the next day global interest rates collapsed amid historic levels of interest rate volatility as risks of economic slowdown and/or recession rose in the wake of the banking crisis. For example, the U.S. 2-year note, which was yielding near 5 1/8% on March 8th following the Fed Chairman’s testimony, plunged to about 3.5% before recovering to around 4 1/8% at month-end. Overall, short positions in U.S., German, French, Italian, British, Canadian and Japanese interest futures were highly unprofitable.

For much of the quarter, energy prices as measured by WTI crude oil were influenced by conflicting forces and traded in a range between $73 and $82 per barrel. In general, global supply and demand fundamentals saw mixed results amid a number of global events: Russian supply did not fall as steeply as some expected; Iraq exports through Turkey were reduced significantly late in the quarter; Chinese demand did not pick up as quickly as many forecast; concerns about slowing growth in Europe and the U.S. likely impacted fundamentals; strikes at French refineries seemingly weakened crude consumption; the U.S. government did not replenish its Strategic Petroleum Reserve; and developed world commercial oil inventories rose. OPEC+ appeared unwilling to change policy until it better understood the mixed results. Then, in March as recession risks increased in the wake of the banking sector crisis, energy prices fell with WTI crude plunging from $80 per barrel on March 6 to $65 per barrel on March 20, before recovering to close the month near $70/barrel. On balance, long positions in Brent crude, WTI crude, London gas oil, heating oil and RBOB gasoline were unprofitable. On the other hand, short natural gas positions were quite profitable as prices declined amid warmer than typical weather in Europe and the U.S. and expanding inventories.

Equity markets, although also rattled by the mix of positive and negative factors discussed above, were steady during the quarter and results were mixed and flat. Long positions in European, Chinese, Taiwanese and Australian stock index futures were profitable. Short positions in Brazilian, Indian and U.S. Russell equity index futures, and trading of Singaporean futures were profitable. On the other hand, short U.S. NASDAQ, S&P and Mid-Cap 400 positions, and trading of Korean, Japanese and EAFE equity index futures posted offsetting losses.

A short silver position was profitable in February, possibly impacted by higher interest rates, a stronger U.S. dollar and sluggish manufacturing globally. In March, safe haven demand and a weaker U.S. dollar likely affected precious metal prices and a long gold trade was profitable. These gains slightly outpaced the loss from a short copper trade. Turning to grain futures, strong supply expectations from major producers of wheat, corn and soybeans seemingly weighed down grain prices. Losses on long corn and soybean trades outdistanced the profit from a short wheat position. Among soft commodities, small losses on short coffee, cotton and cocoa positions marginally outdistanced the profit from a long sugar trade.

Varying expectations about relative growth and monetary policy outlooks across countries likely caused fluctuations in the U.S. dollar during the quarter. Trading results were mixed, though marginally positive overall. Short U.S. dollar positions versus high yield currencies—Chile, Mexico and Poland—were profitable, particularly in March. Long U.S. dollar positions against the Japanese yen and Swiss franc posted gains in January and February. On the other hand, short U.S. dollar trades relative to the Korean won and Brazilian real in February were unprofitable, as was trading the U.S. dollar against the Australian, Canadian and New Zealand dollars, respectively, and trading the Norwegian krone versus the euro and U.S. dollar.


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 ~~SEPTEMBER 30,~~MARCH 31, 2022

The increase in the Partnership’s net assets of ~~$21,470,228~~$5,941,464 was attributable to net income after profit share of ~~$24,552,185 and contributions of $493,539,~~$7,068,882, which ~~was~~were partially offset by withdrawals of ~~$3,575,496.~~$1,127,418.

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 ~~nine~~three months ended ~~September 30,~~March 31, 2022 decreased ~~$67,532~~$34,697 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 ~~nine~~three months ended ~~September 30,~~March 31, 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 ~~nine~~three months ended ~~September 30,~~March 31, 2022 increased ~~$853,134~~$50,962 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 ~~nine~~three months ended ~~September 30,~~March 31, 2022 relative to the corresponding period in 2021.

During the ~~nine~~three months ended ~~September 30,~~March 31, 2022, the Partnership experienced net realized and unrealized gains of ~~$27,625,311~~$7,841,572 from its trading operations (including foreign exchange translations and U.S. Treasury notes). Brokerage fees of ~~$2,013,694,~~$644,565, administrative expenses of ~~$234,573,~~$72,714, custody fees and other expenses of ~~$16,802~~$5,248 and accrued profit share to the General Partner of ~~$1,684,633~~$109,775 were incurred. ~~Interest~~The Partnership’s gains achieved from trading operations, in addition to interest income of ~~$876,576~~$59,612, were partially offset by the Partnership expenses resulting in net income after profit share to the General Partner of ~~$24,552,185.~~$7,068,882. An analysis of the trading gain (loss) by sector is as follows:


Sector	% Gain (Loss) of Partnership Capital
Currencies		~~6.64~~1.10	%
Energies		~~6.60~~6.80	%
Grains		~~(0.32)~~(0.40)	%
Interest rates		~~3.74~~0.15	%
Livestock		~~0.13~~(0.03)	%
Metals		~~(0.21)~~(1.99)	%
Softs		~~0.01~~0.13	%
Stock indices		~~7.25~~0.99	%

Trading Gain		~~23.84~~6.75	%

MANAGEMENT DISCUSSION –2022

Three months ended ~~September 30, 2022~~

The Partnership was profitable during the quarter as gains from trading interest rate futures, stock index futures and currency forwards outdistanced losses from trading commodity futures, especially energy futures.

During the quarter, market participants wavered between risk on and risk off actions as they attempted to decide how persistently aggressive global central banks, led by the Federal Reserve Bank (the “Fed”), would be in tightening financial conditions to control high inflation, particularly if it led to slowing growth, recession or rising unemployment. In addition, markets faced pressures from Russia’s war on Ukraine, the energy crisis and recession in Europe, expanding U.S.-China geopolitical tensions, and slower Chinese growth in part due to the property market slump and zero-Covid lockdowns.

Global stocks, which had rallied sharply between mid-June and mid-August while the market hoped the Fed was pivoting toward less restrictive monetary policy, tumbled after numerous Federal Open Market Committee members led by Chairman Powell emphasized their unwavering resolve to raise interest rates to curb inflation even though “…consumers and business will feel economic pain.” Equity markets plunged while global interest rates surged, and worries about slowing global growth and a rising dollar potentially portended significant earnings declines. Short positions in U.S., Chinese, Korean, EAFE and emerging markets index futures were profitable. A short VIX trade was also profitable during the first half of the quarter. Meanwhile, short positions in Brazilian, Australian, French, Spanish and Indian index futures, and trading of Canadian and Japanese futures produced partially offsetting losses, especially early in the quarter.

Interest rates declined in July and investors perhaps felt that recession risks would keep central banks from hiking rates aggressively. Subsequently, however, global interest rates rose sharply and global central banks appeared intent on raising official interest rates faster and holding them at higher terminal levels for longer than previously expected in order to reduce inflation, even at the potential expense of slower growth, recession and rising unemployment. The new UK government’s late September announcement of a controversial debt-fueled economic policy of energy subsidies and tax cuts hitting the markets at the same time as the Bank of England was readying QT likely contributed to the upward pressure on rates. Short positions in U.S., European and U.K. interest rate futures, especially short-term futures, were profitable. In addition, long positions in British, Japanese, Canadian and Australian interest rate futures were profitable in July.

Long U.S. dollar trades were profitable during the quarter as the Bloomberg DXY index rose about 7 1/2% and touched 20-year highs against the backdrop of a hawkish Fed, relatively better U.S. growth outlook as compared to Europe and China, and amidst continuing geopolitical unrest. Long U.S. dollar positions versus the European Union euro, Swiss franc, Norwegian krone, Swedish krona, United Kingdom pound sterling, Japanese yen and Canadian, Australian, and New Zealand dollars were profitable. On the other hand, trading the U.S. dollar against the Brazilian, Indian, Korean, South African, Israeli and Polish currencies generated partially offsetting losses.

Although energy supplies remained tight during the quarter, crude oil and crude product prices declined amid higher interest rates and tighter monetary policy, a stronger U.S. dollar, concern about probable European and U.S. recessions, and China’s persistent efforts to tame COVID-19 and repair the property sector. Long positions in Brent crude, WTI crude, RBOB gasoline, London gas oil and heating oil were unprofitable. In addition, a short U.S. natural gas trade was unprofitable in July when prices jumped in the wake of increased restrictions on flows of Russian gas to Europe through the Nord Stream 1 pipeline.

Grain prices rose following the USDA’s report of worsening crop conditions owing in part to heatwaves in the U.S. Midwest and plains. Meanwhile, the European Union's crop monitoring service, MARS, lowered its yield forecasts for summer crops in the European Union as it expected further damage in part from recent dry and hot weather, particularly with a major cut in corn. In addition, higher import demand from China, a major consumer, underpinned grain prices. Short corn and soybean meal positions were unprofitable. Trading of soybean oil was also slightly unprofitable.

Despite weakening demand and a global growth slowdown, cotton prices were impacted by a drought in the U.S. and heavy rains and pests in India which severely damaged cotton crops. Hence, a short cotton trade was unprofitable. Trading of coffee and sugar were also marginally unprofitable.

Rising interest rates, a strengthening U.S. dollar, evolving sanctions on Russia, Europe’s energy crisis and recession worries impacted metal prices. Short positions in aluminum, gold, London copper and silver were profitable. Silver prices were also affected by declining sales of silver jewelry in China and India as stores closed amid COVID outbreaks. On the other hand, a short zinc trade was unprofitable.

~~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

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.

Periods ended September 30, 2021
Month Ended:
Total Partners'
‎Capital
September 30, 2021
$
116,815,930
June 30, 2021
125,774,200
December 31, 2020
118,548,929
Three Months ended
Nine Months ended
Change in Partners' Capital
$
(8,958,270)
$
(1,732,999)
Percent Change
(7.12)%
(1.46)%

~~THREE MONTHS ENDED SEPTEMBER 30, 202~~1

The decrease in the Partnership’s net assets of $8,958,270 was attributable to net loss after profit share of $8,108,023 and withdrawals of $850,260, which was partially offset by contributions of $13.

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 September 30, 2021 decreased $56,585 relative to the corresponding period in 2020. This decrease was due to a decrease in average net assets of the Partnership during the three months ended September 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 September 30, 2021 decreased $207,827 relative to the corresponding period in 2020. This decrease was due predominantly to a decrease in short-term U.S. treasury yields during the three months ended September 30, 2021 relative to the corresponding period in 2020.

During the three months ended September 30, 2021, the Partnership experienced net realized and unrealized losses of $7,349,612 from its trading operations (including foreign exchange translations and U.S. Treasury notes). Brokerage fees of $687,834, administrative expenses of $77,506, custody fees and other expenses of $5,259 were incurred. Interest income of $3,014 and a reversal of accrued profit share from the General Partner of $9,174 partially offset the Partnership expenses resulting in net loss after profit share to the General Partner of $8,108,023. An analysis of the trading gain (loss) by sector is as follows:


~~Sector~~	~~% Gain (Loss) of Partnership Capital~~
~~Currencies~~		~~(2.24)~~	%
~~Energies~~		~~0.64~~	%
~~Grains~~		~~0.22~~	%
~~Interest rates~~		~~(1.80)~~	%
~~Livestock~~		~~0.02~~	%
~~Metals~~		~~(0.54)~~	%
~~Softs~~		~~0.05~~	%
~~Stock indices~~		~~(2.16)~~	%

~~Trading Loss~~		~~(5.81)~~	%

~~NINE MONTHS ENDED SEPTEMBER 30, 2021~~

The decrease in the Partnership’s net assets of $1,732,999 was attributable to withdrawals of $6,035,006, which was partially offset by net income after profit share of $4,301,994 and contributions of $13.

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 nine months ended September 30, 2021 decreased $302,749 relative to the corresponding period in 2020. This decrease was due to a decrease in average net assets of the Partnership during the nine months ended September 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 nine months ended September 30, 2021 decreased $1,207,161 relative to the corresponding period in 2020. This decrease was due predominantly to a decrease in short-term U.S. treasury yields during the nine months ended September 30, 2021 relative to the corresponding period in 2020.

During the nine months ended September 30, 2021, the Partnership experienced net realized and unrealized gains of $6,603,101 from its trading operations (including foreign exchange translations and U.S. Treasury notes). Brokerage fees of $2,081,226, administrative expenses of $227,449, custody fees and other expenses of $15,671 and accrued profit share to the General Partner of $203 were incurred. Interest income of $23,442 partially offset the Partnership expenses resulting in net income after profit share to the General Partner of $4,301,994. An analysis of the trading gain (loss) by sector is as follows:


~~Sector~~	~~% Gain (Loss)~~
~~Currencies~~		~~(4.20)~~	%
~~Energies~~		~~4.43~~	%
~~Grains~~		~~0.46~~	%
~~Interest rates~~		~~(1.66)~~	%
~~Livestock~~		~~(0.11)~~	%
~~Metals~~		~~0.38~~	%
~~Softs~~		~~(0.40)~~	%
~~Stock indices~~		~~6.72~~	%

~~Trading Gain~~		~~5.62~~	%

~~MANAGEMENT DISCUSSION –2021~~

~~Three months ended September 30, 2021~~

The Partnership was unprofitable for the quarter as losses from trading equity, interest rate and metal futures, and currency forwards far outpaced gains from trading energy and grain futures. Trading of soft and livestock futures was flat.

Markets were roiled because the near-term global growth outlook, particularly for Asia, was negatively affected as the COVID-19 Delta variant spread and China experienced a multi-pronged regulatory crackdown in support of its Common Prosperity, national security, financial stability and environmental goals. The growth outlook was also impacted by continuing supply chain difficulties, including labor market shortages and mismatches, and rising prices—including soaring energy prices-- that have affected consumer demand. Furthermore, a reduction of fiscal stimulus globally, including from the U.S., and signs that central banks were beginning the process of scaling back on ultra-accommodative policies and returning to “more normal” stances likely worried market participants.

For most of the quarter interest rates were restrained by the growth slowdown. However, in late September, Federal Reserve (the “Fed”) Chairman Powell stressed that a Quantitative easing tapering was likely to begin by the end of 2021 and was expected to reach completion by mid-2022. Furthermore, there were indications that the first Fed official rate hike might occur in late 2022. These moves reflected the fact that the U.S. economy had made ‘substantial further progress’ on its inflation and unemployment goals and that economic growth was expected to rebound after the third quarter slowdown. At the same time, similar outlooks were posited by other central banks including the Bank of England, European Central Bank and Norges Bank, which became the first G-20 central bank to increase official rates since the onset of the global COVID-19 pandemic when it raised its policy rate from zero to 0.25%. Several other Central European and Latin America central banks have also raised rates recently to control inflation. Overall long positions in German, French, British, Australian and Japanese long-term bond futures registered losses, especially late in the quarter. Conversely, early in the period, long positions in German, U.S., Canadian and Italian 3-year to 10-year note futures posted partially offsetting gains.

During the quarter, equities were supported by strong earnings, liquidity and anticipated U.S. infrastructure spending. Still, creeping concerns about the durability of the global economic recovery and China’s regulatory crackdown contributed to turbulence in global equity markets that were near all-time highs amid thin summer trading. The Fed actions triggered an upsurge in interest rates, following which equity markets experienced a broad-based selloff. Overall, losses were sustained on long positions in U.S., Canadian, EAFE, and EURO STOXX 50 indices; from trading Asia ex-Japan indices; and from short VIX and VSTOXX volatility index positions. Partially offsetting profits were accrued on short Brazilian, emerging market, and Chinese H-share index positions; long positions in Japanese index futures; and trading Indian, Dutch and French stock index futures.

The U.S. dollar was volatile in a 2% band for most of the quarter before surging higher in late September after U.S. interest rates jumped higher. Indeed, by the end of the quarter, the U.S. dollar had reached its highest level of 2021, climbing about 4% in total from its May low. On balance, currency trading was unprofitable. Trading the Canadian dollar versus the U.S. dollar was unprofitable amid oil price swings, global growth worries, monetary policy pronouncements in both countries, and political uncertainties in Canada. Trading the UK sterling/U.S. dollar exchange rate was volatile and unprofitable amid concerns over the pace of global growth, the worldwide spike in COVID-19 infections and uncertainties about the future direction of monetary policy in each country. In Brazil, tension and noise in the domestic political-institutional environment and the deterioration in the country's fiscal prospects continue to threaten the economic outlook. However, the Brazilian real saw a 2% increase in official interest rates during the quarter as the central bank sought to contain rising inflation, and a short real/long U.S. dollar trade was unprofitable. Trading the U.S. dollar/Australian dollar exchange rate was volatile and unprofitable due in part to several factors including: the collapse in the iron ore price; surging gas and oil prices; China uncertainties; the Sydney COVID-19 lockdown, U.S. dollar strength and changing interest rate differentials. In addition, short U.S. dollar positions against the New Zealand dollar, Swiss franc, and several other currencies were particularly unprofitable in September. A long U.S. dollar/short Japanese yen trade did produce a fractional gain. Amid the changing growth and inflation outlooks, interest rate and U.S. dollar volatility, and supply chain disruptions, metal prices displayed wide swings. Trading of copper, zinc and platinum produced a fractional loss, while a long aluminum position and a short silver trade registered slightly offsetting gains.

Energy prices were volatile during the quarter. Growth worries related to the COVID-19 Delta variant and the continuing expansion of production by The Organization of the Petroleum Exporting Countries helped prompt a selloff during the first half of the period as evidenced by Brent crude oil which fell from about $76/barrel at the start of July to about $65/barrel on August 20, producing losses on long positions. Subsequently however, prices rebounded to close the quarter near $80/barrel as the Gulf of Mexico experienced crude oil production cuts following hurricanes Henri and Ida. There were also stronger than expected demand increases for oil and natural gas as market participants came to expect the 3Q growth slowdown to be temporary, and as businesses and consumers increased their usage of everything from gasoline to jet fuel as governments lifted COVID-19 social and travel restrictions. In addition, a surge in natural gas prices that will likely lead to “gas to oil” switching in the power business, especially in Europe, and persistent tightness in crude oil and natural gas inventories impacted energy prices. Consequently, long positions in Brent crude, heating oil, London gas oil and U.S. natural gas were highly profitable during late August and in September, and for the quarter overall.

~~Lastly, grain trading was slightly profitable as gains from short corn, soybean and soybean meal positions fractionally outdistanced losses from short wheat positions.~~

~~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.

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 (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 Schedule of Investments setting forth the Partnership’s open futures and forward currency contracts, both long and short, at ~~September 30, 2022.~~March 31, 2023.

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 ~~September 30, 2022~~March 31, 2023 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. On ~~July~~March 1, ~~2022,~~2023, the Partnership sold Interests to new ~~and existing~~ limited partners of ~~$486,600.~~$56,101. There were no underwriting discounts or commissions in connection with the sales of the Interests described above.

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 September 30, 2022:
Date of
‎Withdrawal
Limited
‎Partners
Special Limited
‎Partners
Total
July 31, 2022
$               (452,543)
$              (35,038)
$                      (487,581)
August 31, 2022
(96,752)
(112,314)
(209,066)
September 30, 2022
(18,023)
(1,022,318)
(1,040,341)
Total
$               (567,318)
$         (1,169,670)
$                   (1,736,988)


The following table summarizes Interests redeemed during the three months ended March 31, 2023:

Date of ‎Withdrawal	Limited ‎Partners	Special Limited ‎Partners	Total

January 31, 2023	$ (241,646)	$ (106,822)	$ (348,468)
February 28, 2023	(383,745)	(26,497)	(410,242)
March 31, 2023	(435,314)	(46,510)	(481,824)
Total	$ (1,060,705)	$ (179,829)	$ (1,240,534)

ITEM 3. Defaults Upon Senior Securities

None.

ITEM 4. Mine Safety Disclosures

Not Applicable.

ITEM 5. Other Information

None.

3124

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

‎

3225

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: ~~November 14, 2022~~May 15, 2023		(Principal Accounting Officer)

3326


Nestor Partners
Statements of Operations (unaudited)



		For the nine months ended
		September 30, 2022		September 30, 2021
INVESTMENT INCOME:
Interest income, net	$	876,576	$	23,442

EXPENSES:
Brokerage fees		2,013,694		2,081,226
Administrative expenses		234,573		227,449
Custody fees and other expenses		16,802		15,671

Total expenses		2,265,069		2,324,346

NET INVESTMENT LOSS		(1,388,493)		(2,300,904)

NET REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) on closed positions:
Futures and forward currency contracts		24,119,753		10,939,894
Foreign exchange transactions		(19,296)		(107,133)
Net change in unrealized:
Futures and forward currency contracts		4,445,637		(3,976,983)
Foreign exchange translation		(50,780)		(256,256)
Net gains (losses) from U.S. Treasury notes:
Realized		(17,027)		(366)
Net change in unrealized		(852,976)		3,945

Total net realized and unrealized gains		27,625,311		6,603,101


NET INCOME		26,236,818		4,302,197
LESS PROFIT SHARE TO GENERAL PARTNER		1,684,633		203
NET INCOME AFTER PROFIT SHARE TO
GENERAL PARTNER	$	24,552,185	$	4,301,994

See notes to financial statements (unaudited)				(Concluded)


Nestor Partners
Statements of Financial Highlights (unaudited)



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

Ratios to average capital:
Net investment income (loss) (a)	(2.33)	%	(3.98)	%	0.56	%	(1.23)	%

Total expenses (a)	3.88	%	3.99	%	0.97	%	1.24	%
Profit share allocation (b) (c)	1.22	%	(0.02)	%	0.05	%	0.00	%
Total expenses and profit share allocation	5.10	%	3.97	%	1.02	%	1.24	%

Total return before profit share allocation (b)	6.12	%	(6.82)	%	6.81	%	(6.17)	%
Less: profit share allocation (b) (c)	1.22	%	(0.02)	%	0.05	%	0.00	%
Total return after profit share allocation	4.90	%	(6.80)	%	6.76	%	(6.17)	%

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



Periods ended September 30, 2022

Month Ended:				Total Partners' ‎Capital

September 30, 2022			$	139,830,826
June 30, 2022				133,256,995
December 31, 2021				118,360,598


		Three Months ended		Nine Months ended
Change in Partners' Capital	$	6,573,831	$	21,470,228
Percent Change		4.93%		18.14%


Periods ended September 30, 2021

Month Ended:				Total Partners' ‎Capital

September 30, 2021			$	116,815,930
June 30, 2021				125,774,200
December 31, 2020				118,548,929


		Three Months ended		Nine Months ended
Change in Partners' Capital	$	(8,958,270)	$	(1,732,999)
Percent Change		(7.12)%		(1.46)%