UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


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

For the Quarterly Period Ended: ~~March 31,~~June 30, 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
~~As of and for~~For the three and six months ended ~~March 31,~~June 30, 2023 and 2022 (unaudited)

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

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

‎


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

		March 31, 2023 (unaudited)		December 31, 2022		June 30, 2023 (unaudited)		December 31, 2022
ASSETS

EQUITY IN TRADING ACCOUNTS:
Investments in U.S. Treasury notes − at fair value
(amortized cost $18,680,868 and $25,557,253)	$	18,661,309	$	25,376,719
(amortized cost $18,486,606 and $25,557,253)					$	18,438,286	$	25,376,719
Net unrealized appreciation on open futures and forward
currency contracts		1,495,158		6,564,636		3,401,387		6,564,636
Due from brokers, net		4,908,382		6,465,226		3,838,138		6,465,226
Cash denominated in foreign currencies (cost $387,117
Cash denominated in foreign currencies (cost $0
and -$2,514)		394,874		5,005		-		5,005

Total equity in trading accounts		25,459,723		38,411,586		25,677,811		38,411,586

INVESTMENTS IN U.S. TREASURY NOTES − at fair value
(amortized cost $89,428,853 and $88,668,229)		89,237,482		88,232,276
(amortized cost $93,810,557 and $88,668,229)						93,521,678		88,232,276

CASH AND CASH EQUIVALENTS		6,493,454		9,166,375		6,384,988		9,166,375

ACCRUED INTEREST RECEIVABLE		709,481		654,085		755,691		654,085

TOTAL	$	121,900,140	$	136,464,322	$	126,340,168	$	136,464,322

LIABILITIES AND PARTNERS' CAPITAL

LIABILITIES:
Capital contributions received in advance	$	7,514	$	-	$	3,358	$	-
Net unrealized depreciation on open futures and forward
currency contracts		118,701		-
Accrued brokerage fees		168,166		197,643
Cash overdraft denominated in foreign currencies (cost $426,438
Accrued management fees						94,097		109,679
Accrued installment selling commissions						70,457		76,900
Accrued trade execution and clearing costs						6,420		11,064
Cash overdraft denominated in foreign currencies (cost $2,574,876
and $1,538,325)		438,950		1,598,022		2,596,566		1,598,022
Accrued expenses		115,753		35,306		115,477		35,306
Capital withdrawals payable to Limited Partners		481,824		635,176		17,357		635,176
Capital withdrawals payable to General Partner		-		1,952,102		-		1,952,102

Total liabilities		1,330,908		4,418,249		2,903,732		4,418,249

PARTNERS' CAPITAL		120,569,232		132,046,073		123,436,436		132,046,073

TOTAL	$	121,900,140	$	136,464,322	$	126,340,168	$	136,464,322


See notes to financial statements (unaudited)


Nestor Partners	Nestor Partners				Nestor Partners
Condensed Schedule of Investments	Condensed Schedule of Investments				Condensed Schedule of Investments
March 31, 2023 (unaudited)
June 30, 2023 (unaudited)					June 30, 2023 (unaudited)

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	0.01	%	$	7,604
Energies	0.42			507,337	0.04	%	$	45,600
Grains	0.05			64,050	0.02			25,158
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)

Livestock					0.03			33,560
Metals	(0.10)			(112,945)	(0.16)			(195,297)
Softs	0.08			99,109
Stock indices	0.90			1,085,249	0.16			193,316

Total long futures contracts	1.28			1,553,598	0.09			102,337

Short futures contracts:
Currencies	0.00			3,629	0.10			125,344
Energies	(0.02)			(20,094)	0.00			3,638
Grains	(0.00)			(2,990)	0.23			284,132
Interest rates	(0.12)			(142,885)
Interest rates:
2 Year U.S. Treasury Note (272 contracts, settlement date September 2023)					0.39			476,828
5 Year U.S. Treasury Note (250 contracts, settlement date September 2023)					0.08			97,797
Other					1.70			2,098,083

Total interest rates					2.17			2,672,708

Livestock	0.01			6,890	(0.00)			(1,050)
Metals	0.01			15,386	0.20			249,370
Softs	(0.03)			(39,702)	0.10			125,652
Stock indices	0.01			7,668	(0.15)			(184,609)

Total short futures contracts	(0.14)			(172,098)	2.65			3,275,185

TOTAL INVESTMENTS IN FUTURES CONTRACTS − Net	1.14			1,381,500	2.74			3,377,522
FORWARD CURRENCY CONTRACTS
Total long forward currency contracts	2.23			2,688,099	(0.07)			(83,080)
Total short forward currency contracts	(2.23)			(2,693,142)	0.09			106,945

TOTAL INVESTMENTS IN FORWARD CURRENCY
CONTRACTS − Net	(0.00)			(5,043)	0.02			23,865

TOTAL	1.14	%	$	1,376,457	2.76	%	$	3,401,387

				(Continued)				(Continued)


Nestor Partners	Nestor Partners						Nestor Partners
Condensed Schedule of Investments	Condensed Schedule of Investments						Condensed Schedule of Investments
March 31, 2023 (unaudited)
June 30, 2023 (unaudited)							June 30, 2023 (unaudited)

	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

$	25,270,000	U.S. Treasury notes, 1.750%, 05/15/2023	20.89	%	$	25,184,615	27,253,000	U.S. Treasury notes, 2.500%, 08/15/2023	22.01	%	$	27,164,108
	25,470,000	U.S. Treasury notes, 2.500%, 08/15/2023	20.95			25,258,579	40,879,000	U.S. Treasury notes, 2.750%, 11/15/2023	32.81			40,503,744
	37,000,000	U.S. Treasury notes, 2.750%, 11/15/2023	30.31			36,543,281	27,253,000	U.S. Treasury notes, 2.750%, 02/15/2024	21.72			26,811,736
	21,270,000	U.S. Treasury notes, 2.750%, 02/15/2024	17.34			20,912,316	17,925,000	U.S. Treasury notes, 2.500%, 05/15/2024	14.16			17,480,376

		TOTAL INVESTMENTS IN U.S. TREASURY						TOTAL INVESTMENTS IN U.S. TREASURY
		NOTES (amortized cost $108,109,721)	89.49	%	$	107,898,791		NOTES (amortized cost $112,297,163)	90.70	%	$	111,959,964

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

‎


Nestor Partners
Condensed Schedule of Investments
December 31, 2022

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	%	$	14,239
Energies	0.91			1,196,200
Grains	0.09			111,793
Interest rates	(0.04)			(52,481)
Livestock	(0.01)			(7,130)
Metals	0.18			242,463
Softs	(0.02)			(26,476)
Stock indices	(0.06)			(75,258)

Total long futures contracts	1.06			1,403,350

Short futures contracts:
Currencies	(0.00)			(5,951)
Energies	0.67			879,485
Grains	(0.02)			(28,225)
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	(0.15)			(196,302)
Softs	(0.01)			(9,120)
Stock indices	0.03			36,853

Total short futures contracts	3.43			4,524,337

TOTAL INVESTMENTS IN FUTURES CONTRACTS − Net	4.49			5,927,687
FORWARD CURRENCY CONTRACTS
Total long forward currency contracts	1.05			1,392,974
Total short forward currency contracts	(0.57)			(756,025)

TOTAL INVESTMENTS IN FORWARD CURRENCY
CONTRACTS − Net	0.48			636,949

TOTAL	4.97	%	$	6,564,636

				(Continued)



Nestor Partners
Condensed Schedule of Investments
December 31, 2022

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

$	21,270,000	U.S. Treasury notes, 2.000%, 02/15/2023	16.07	%	$	21,213,917
	24,370,000	U.S. Treasury notes, 1.750%, 05/15/2023	18.26			24,115,828
	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 $114,225,482)	86.04	%	$	113,608,995

	See notes to financial statements (unaudited)					(Concluded)

‎

Nestor Partners
Statements of Operations (unaudited)
For the three months ended
March 31, 2023
March 31, 2022
INVESTMENT INCOME:
Interest income, net
$
1,104,537
$
59,612
EXPENSES:
Brokerage fees
640,548
644,565
Administrative expenses
80,448
72,714
Custody fees and other expenses
5,445
5,248
Total expenses
726,441
722,527
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
(5,808,621)
5,144,122
Foreign exchange transactions
(86,888)
(50,478)
Net change in unrealized:
Futures and forward currency contracts
(5,188,179)
2,856,992
Foreign exchange translation
47,423
24,278
Net gains (losses) from U.S. Treasury notes:
Realized
(39,796)
(687)
Net change in unrealized
405,557
(132,655)
Total net realized and unrealized gains (losses)
(10,670,504)
7,841,572
NET INCOME (LOSS)
(10,292,408)
7,178,657
LESS PROFIT SHARE TO GENERAL PARTNER
-
109,775
NET INCOME (LOSS) AFTER PROFIT SHARE TO
GENERAL PARTNER
$
(10,292,408)
$
7,068,882
See notes to financial statements (unaudited)
(Concluded)


Nestor Partners
Statements of Operations (unaudited)



		For the three months ended
		June 30, 2023		June 30, 2022
INVESTMENT INCOME:
Interest income, net	$	1,244,489	$	300,824

EXPENSES:
Brokerage and management fees:
Management fees		283,214		312,402
Installment selling commissions		206,460		235,691
Trade execution and clearing costs		123,022		142,138
Total brokerage and management fees		612,696		690,231

Administrative expenses		75,244		80,440
Custody fees and other expenses		5,519		5,787

Total expenses		693,459		776,458

NET INVESTMENT INCOME (LOSS)		551,030		(475,634)

NET REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) on closed positions:
Futures and forward currency contracts		935,858		9,263,995
Foreign exchange transactions		3,609		(59,221)
Net change in unrealized:
Futures and forward currency contracts		2,024,930		2,178,345
Foreign exchange translation		(16,935)		(29,316)
Net losses from U.S. Treasury notes:
Realized		-		(12,795)
Net change in unrealized		(126,269)		(415,427)

Total net realized and unrealized gains		2,821,193		10,925,581


NET INCOME		3,372,223		10,449,947
LESS PROFIT SHARE TO GENERAL PARTNER		-		785,510
NET INCOME AFTER PROFIT SHARE TO
GENERAL PARTNER	$	3,372,223	$	9,664,437

See notes to financial statements (unaudited)

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 Operations (unaudited)



		For the six months ended
		June 30, 2023		June 30, 2022
INVESTMENT INCOME:
Interest income, net	$	2,349,026	$	360,436

EXPENSES:
Brokerage and management fees:
Management fees		577,607		585,887
Installment selling commissions		421,742		452,323
Trade execution and clearing costs		253,895		296,586
Total brokerage and management fees		1,253,244		1,334,796

Administrative expenses		155,692		153,154
Custody fees and other expenses		10,964		11,035

Total expenses		1,419,900		1,498,985

NET INVESTMENT INCOME (LOSS)		929,126		(1,138,549)

NET REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) on closed positions:
Futures and forward currency contracts		(4,872,763)		14,408,117
Foreign exchange transactions		(83,279)		(109,699)
Net change in unrealized:
Futures and forward currency contracts		(3,163,249)		5,035,337
Foreign exchange translation		30,488		(5,038)
Net gains (losses) from U.S. Treasury notes:
Realized		(39,796)		(13,482)
Net change in unrealized		279,288		(548,082)

Total net realized and unrealized gains (losses)		(7,849,311)		18,767,153


NET INCOME (LOSS)		(6,920,185)		17,628,604
LESS PROFIT SHARE TO GENERAL PARTNER		-		895,285
NET INCOME (LOSS) AFTER PROFIT SHARE TO
GENERAL PARTNER	$	(6,920,185)	$	16,733,319

See notes to financial statements (unaudited)				(Concluded)


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



For the six months ended June 30, 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		-		72,067		-		-		72,067
Withdrawals		(1,271,171)		(490,348)		-		-		(1,761,519)
Net loss		(3,664,290)		(3,157,521)		-		(98,374)		(6,920,185)
General Partner's allocation:
New Profit-Accrued		-		-		-		-		-
PARTNERS' CAPITAL-
June 30, 2023	$	56,677,264	$	64,652,149	$	-	$	2,107,023	$	123,436,436


For the six months ended June 30, 2022:
		Limited Partners		Special Limited Partners		New Profit Memo Account		General Partner		Total

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


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 June 30, 2023 and 2022	Limited ‎Partners				Special Limited ‎Partners
	2023		2022		2023		2022

Ratios to average capital:
Net investment income (loss) (a)	0.29	%	(2.99)	%	3.10	%	(0.11)	%

Total expenses (a)	3.81	%	3.90	%	0.99	%	1.01	%
Profit share allocation (b) (c)	0.00	%	1.20	%	0.00	%	0.07	%
Total expenses and profit share allocation	3.81	%	5.10	%	0.99	%	1.08	%

Total return before profit share allocation (b)	2.41	%	7.96	%	3.13	%	8.79	%
Less: profit share allocation (b) (c)	0.00	%	1.20	%	0.00	%	0.07	%
Total return after profit share allocation	2.41	%	6.76	%	3.13	%	8.72	%

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


For the six months ended June 30, 2023 and 2022	Limited ‎Partners				Special Limited ‎Partners
	2023		2022		2023		2022

Ratios to average capital:
Net investment income (loss) (a)	(0.01)	%	(3.35)	%	2.81	%	(0.49)	%

Total expenses (a)	3.84	%	3.92	%	1.01	%	1.06	%
Profit share allocation (b) (c)	0.00	%	1.44	%	0.00	%	0.07	%
Total expenses and profit share allocation	3.84	%	5.36	%	1.01	%	1.13	%

Total return before profit share allocation (b)	(5.93)	%	14.06	%	(4.60)	%	15.77	%
Less: profit share allocation (b) (c)	0.00	%	1.44	%	0.00	%	0.07	%
Total return after profit share allocation	(5.93)	%	12.62	%	(4.60)	%	15.70	%

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

See notes to financial statements (unaudited)

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying financial statements, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of Nestor Partners’ (the “Partnership”) financial condition at ~~March 31,~~June 30, 2023 (unaudited) and December 31, 2022 (audited) and the results of its operations for the three and six months ended ~~March 31,~~June 30, 2023 and 2022 (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, 2022. The December 31, 2022 information has been derived from the audited financial statements as of December 31, 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, 2019 to 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 2022.

Certain prior year items in the financial statements have been reclassified to conform to the current year presentation. The Partnership reclassified amounts previously included in “Brokerage fees” to “Management fees”, “Installment selling commissions” and “Trade execution and clearing costs” in the Statements of Operations for the three and six months ended June 30, 2022. Further, the Partnership reclassified amounts previously included in “Accrued brokerage fees” to “Accrued management fees”, “Accrued installment selling commissions” and “Accrued trade execution and clearing costs” in the Statements of Financial Condition at December 31, 2022. Any mention of “brokerage fees” or “accrued brokerage fees” subsequently in these footnotes are understood to represent the newly classified line items.

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.

‎

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 ~~March 31,~~June 30, 2023 and December 31, 2022 in valuing the Partnership’s investments at fair value. During the ~~three~~six and twelve months ended ~~March 31,~~June 30, 2023 and December 31, 2022, respectively, the Partnership held no assets or liabilities in Level 3. At ~~March 31,~~June 30, 2023 and December 31, 2022, the Partnership held no assets or liabilities in Level 3.


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

		Level 1		Level 2		Total		Level 1		Level 2		Total

U.S. Treasury Notes (1)	$	107,898,791	$	-	$	107,898,791	$	111,959,964	$	-	$	111,959,964
Short-Term Money Market Fund*		6,243,454		-		6,243,454		6,134,988		-		6,134,988
Exchange-Traded Futures Contracts
Currencies		11,233		-		11,233		125,344		-		125,344
Energies		487,243		-		487,243		49,238		-		49,238
Grains		61,060		-		61,060		309,290		-		309,290
Interest rates		(239,691)		-		(239,691)		2,672,708		-		2,672,708
Livestock		6,890		-		6,890		32,510		-		32,510
Metals		(97,559)		-		(97,559)		54,073		-		54,073
Softs		59,407		-		59,407		125,652		-		125,652
Stock indices		1,092,917		-		1,092,917		8,707		-		8,707

Total exchange-traded futures contracts		1,381,500		-		1,381,500		3,377,522		-		3,377,522

Over-the-Counter Forward Currency Contracts		-		(5,043)		(5,043)		-		23,865		23,865

Total futures and forward currency contracts (2)		1,381,500		(5,043)		1,376,457		3,377,522		23,865		3,401,387

Total financial assets and liabilities at fair value	$	115,523,745	$	(5,043)	$	115,518,702	$	121,472,474	$	23,865	$	121,496,339


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				$	18,661,309	Investments in U.S. Treasury notes held in equity trading accounts as collateral				$	18,438,286
Investments in U.S. Treasury notes						89,237,482						93,521,678
Total investments in U.S. Treasury notes					$	107,898,791					$	111,959,964

(2)
Net unrealized appreciation on open futures and forward currency contracts	Net unrealized appreciation on open futures and forward currency contracts				$	1,495,158	Net unrealized appreciation on open futures and forward currency contracts				$	3,401,387
Net unrealized depreciation on open futures and forward currency contracts	Net unrealized depreciation on open futures and forward currency contracts					(118,701)	Net unrealized depreciation on open futures and forward currency contracts					-
Total net unrealized appreciation on open futures and forward currency contracts	Total net unrealized appreciation on open futures and forward currency contracts				$	1,376,457	Total net unrealized appreciation on open futures and forward currency contracts				$	3,401,387

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

1011


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

		Level 1		Level 2		Total

U.S. Treasury Notes (1)	$	113,608,995	$	-	$	113,608,995
Short-Term Money Market Fund*		8,916,375		-		8,916,375
Exchange-Traded Futures Contracts
Currencies		8,288		-		8,288
Energies		2,075,685		-		2,075,685
Grains		83,568		-		83,568
Interest rates		3,795,116		-		3,795,116
Livestock		(7,130)		-		(7,130)
Metals		46,161		-		46,161
Softs		(35,596)		-		(35,596)
Stock indices		(38,405)		-		(38,405)

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

Over-the-Counter Forward Currency Contracts		-		636,949		636,949

Total futures and forward currency contracts (2)		5,927,687		636,949		6,564,636

Total financial assets and liabilities at fair value	$	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					$	25,376,719
Investments in U.S. Treasury notes						88,232,276
Total investments in U.S. Treasury notes					$	113,608,995

(2)
Net unrealized appreciation on open futures and forward currency contracts					$	6,564,636
Net unrealized depreciation 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.

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 ~~March 31,~~June 30, 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.
‎

1112

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.

‎

1213

The following tables present the fair value of open futures and forward currency contracts, held long or sold short, at ~~March 31,~~June 30, 2023 and December 31, 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 March 31, 2023
Fair Value of Futures and Forward Currency Contracts at June 30, 2023											Fair Value of Futures and Forward Currency Contracts at June 30, 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 on
Sector		Gains		Losses		Gains		Losses		Open Positions		Gains		Losses		Gains		Losses		Open Positions

Futures contracts:
Currencies	$	13,105	$	(5,501)	$	5,419	$	(1,790)	$	11,233	$	-	$	-	$	134,373	$	(9,029)	$	125,344
Energies		520,293		(12,956)		4,451		(24,545)		487,243		91,122		(45,522)		19,344		(15,706)		49,238
Grains		66,088		(2,038)		-		(2,990)		61,060		25,158		-		366,500		(82,368)		309,290
Interest rates		60,681		(157,487)		167,522		(310,407)		(239,691)		-		-		3,220,792		(548,084)		2,672,708
Livestock		-		-		8,110		(1,220)		6,890		33,560		-		520		(1,570)		32,510
Metals		97,216		(210,161)		231,149		(215,763)		(97,559)		44,150		(239,447)		372,375		(123,005)		54,073
Softs		99,109		-		20,606		(60,308)		59,407		-		-		149,611		(23,959)		125,652
Stock indices		1,163,043		(77,794)		276,500		(268,832)		1,092,917		246,583		(53,267)		112,144		(296,753)		8,707
Total futures contracts		2,019,535		(465,937)		713,757		(885,855)		1,381,500		440,573		(338,236)		4,375,659		(1,100,474)		3,377,522

Forward currency contracts		2,949,703		(261,604)		133,269		(2,826,411)		(5,043)		1,076,470		(1,159,550)		1,236,383		(1,129,438)		23,865

Total futures and
forward currency contracts	$	4,969,238	$	(727,541)	$	847,026	$	(3,712,266)	$	1,376,457	$	1,517,043	$	(1,497,786)	$	5,612,042	$	(2,229,912)	$	3,401,387


Fair Value of Futures and Forward Currency Contracts at December 31, 2022	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	$	26,865	$	(12,626)	$	-	$	(5,951)	$	8,288	$	26,865	$	(12,626)	$	-	$	(5,951)	$	8,288
Energies		1,236,350		(40,150)		880,935		(1,450)		2,075,685		1,236,350		(40,150)		880,935		(1,450)		2,075,685
Grains		160,870		(49,077)		-		(28,225)		83,568		160,870		(49,077)		-		(28,225)		83,568
Interest rates		-		(52,481)		3,942,928		(95,331)		3,795,116		-		(52,481)		3,942,928		(95,331)		3,795,116
Livestock		290		(7,420)		-		-		(7,130)		290		(7,420)		-		-		(7,130)
Metals		397,429		(154,966)		151,995		(348,297)		46,161		397,429		(154,966)		151,995		(348,297)		46,161
Softs		90		(26,566)		14,759		(23,879)		(35,596)		90		(26,566)		14,759		(23,879)		(35,596)
Stock indices		30,433		(105,691)		135,763		(98,910)		(38,405)		30,433		(105,691)		135,763		(98,910)		(38,405)
Total futures contracts		1,852,327		(448,977)		5,126,380		(602,043)		5,927,687		1,852,327		(448,977)		5,126,380		(602,043)		5,927,687

Forward currency contracts		2,048,622		(655,648)		386,777		(1,142,802)		636,949		2,048,622		(655,648)		386,777		(1,142,802)		636,949

Total futures and
forward currency contracts	$	3,900,949	$	(1,104,625)	$	5,513,157	$	(1,744,845)	$	6,564,636	$	3,900,949	$	(1,104,625)	$	5,513,157	$	(1,744,845)	$	6,564,636

‎

1314

The effect of trading futures and forward currency contracts is represented on the Statements of Operations for the three and six months ended ~~March 31,~~June 30, 2023 and 2022 as “Net realized gains (losses) on closed positions: Futures and forward currency contracts” and “Net change in unrealized: Futures and forward currency contracts.” These trading gains and losses are detailed below.

Trading gains (losses) of futures and forward currency contracts for the three and six months ended ~~March 31,~~June 30, 2023 and 2022


Sector	Three months ended: March 31, 2023		Three months ended: March 31, 2022		Three months ended: June 30, 2023		Three months ended: June 30, 2022		Six months ended: June 30, 2023		Six months ended: June 30, 2022

Futures contracts:
Currencies	$	179,926	$	78,099	$	241,579	$	356,598	$	421,505	$	434,697
Energies		(3,054,079)		7,764,357		(3,739,625)		4,452,897		(6,793,704)		12,217,254
Grains		(214,450)		(454,162)		(26,867)		1,051,742		(241,317)		597,580
Interest rates		(8,038,947)		171,570		3,952,308		(5,425,572)		(4,086,639)		(5,254,002)
Livestock		8,660		(12,370)		48,440		53,140		57,100		40,770
Metals		265,003		(2,302,360)		(185,946)		1,791,859		79,057		(510,501)
Softs		(167,391)		165,493		268,066		46,407		100,675		211,900
Stock indices		97,801		1,321,065		1,369,452		5,808,705		1,467,253		7,129,770

Total futures contracts		(10,923,477)		6,731,692		1,927,407		8,135,776		(8,996,070)		14,867,468

Forward currency contracts		(73,323)		1,269,422		1,033,381		3,306,564		960,058		4,575,986

Total futures and
forward currency contracts	$	(10,996,800)	$	8,001,114	$	2,960,788	$	11,442,340	$	(8,036,012)	$	19,443,454

The following table presents average notional value by sector of open futures and forward currency contracts for the ~~three~~six months ended ~~March 31,~~June 30, 2023 and 2022 in U.S. dollars. The Partnership’s average net asset value for the ~~three~~six months ended ~~March 31,~~June 30, 2023 and 2022 was approximately ~~$125,000,000~~$123,000,000 and ~~$119,000,000,~~$125,000,000, respectively.


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 six months ended June 30, 2023 and 2022									Average notional value by sector of futures and forward currency contracts for the six months ended June 30, 2023 and 2022

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

Futures contracts:
Currencies	$	3,773,233	$	856,008	$	765,982	$	4,501,330		$	2,515,489	$	4,415,620	$	863,141	$	4,177,463
Energies		22,809,357		2,035,086		18,187,070		2,063,304			18,425,763		1,883,185		14,107,547		3,676,532
Grains		7,561,569		789,700		10,365,052		2,696,518			5,383,072		2,514,595		6,910,035		6,398,509
Interest rates		25,651,152		141,854,566		132,690,559		57,360,599			17,100,768		176,502,828		138,321,001		38,383,060
Livestock		326,300		183,250		444,460		770,665			524,637		208,593		579,133		541,003
Metals		1,704,995		2,352,994		11,979,478		2,437,005			1,154,184		4,327,713		7,986,318		6,221,672
Softs		1,696,912		2,431,002		3,363,858		1,638,682			1,131,275		2,567,566		2,418,497		2,157,447
Stock indices		41,334,477		31,180,078		58,671,391		33,058,158			40,218,866		29,656,588		40,506,549		41,515,357

Total futures contracts		104,857,995		181,682,684		236,467,850		104,526,261			86,454,054		222,076,688		211,692,221		103,071,043

Forward currency contracts		57,965,349		10,652,126		37,766,152		56,709,909			43,766,897		24,429,187		29,843,790		54,614,427

Total futures and
forward currency contracts	$	162,823,344	$	192,334,810	$	274,234,002	$	161,236,170		$	130,220,951	$	246,505,875	$	241,536,011	$	157,685,470

1415

Notional values in the interest rate sector were calculated by converting the notional value in local currency of open interest rate futures positions with maturities less than 10 years to 10-year equivalent fixed income instruments and translated to U.S. dollars at ~~March 31,~~June 30, 2023 and 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 ~~March 31,~~June 30, 2023 and December 31, 2022.


Offsetting derivative assets and liabilities at March 31, 2023
Offsetting derivative assets and liabilities at June 30, 2023							Offsetting derivative assets and liabilities at June 30, 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	$	1,183,514	$	(597,510)	$	586,004	$	861,492	$	(475,344)	$	386,148
Counterparty J		264,685		(128,560)		136,125		954,333		(376,526)		577,807
Counterparty L		1,285,093		(625,722)		659,371		3,000,407		(586,840)		2,413,567
Total futures contracts		2,733,292		(1,351,792)		1,381,500		4,816,232		(1,438,710)		3,377,522

Forward currency contracts
Counterparty K		2,142,937		(2,029,279)		113,658		2,312,853		(2,288,988)		23,865

Total assets	$	4,876,229	$	(3,381,071)	$	1,495,158	$	7,129,085	$	(3,727,698)	$	3,401,387

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

‎

1516


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

Counterparty C		$	586,004	$	-	$	(586,004)	$	-		$	386,148	$	-	$	(386,148)	$	-
Counterparty J			136,125		-		(136,125)		-			577,807		-		(577,807)		-
Counterparty K			113,658		-		-		113,658			23,865		-		-		23,865
Counterparty L			659,371		-		(659,371)		-			2,413,567		-		(2,413,567)		-

Total		$	1,495,158	$	-	$	(1,381,500)	$	113,658		$	3,401,387	$	-	$	(3,377,522)	$	23,865

					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. Collateral pledged includes both cash and U.S. Treasury notes held at each respective counterparty.	by the exchange. Collateral pledged includes both cash and U.S. Treasury notes held at each respective counterparty.									by the exchange. Collateral pledged includes both cash and U.S. Treasury notes held at each respective counterparty.
⁽²⁾ Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets and liabilities presented in the Statement of	⁽²⁾ Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets and liabilities presented in the Statement of									⁽²⁾ Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets and liabilities presented in the Statement of
Financial Condition for each respective counterparty.	Financial Condition for each respective counterparty.									Financial Condition for each respective counterparty.
⁽³⁾ Net amount represents the amount that is subject to loss in the event of a counterparty failure as of March 31, 2023.
⁽⁴⁾ Net amount represents the amounts owed by the Partnership to each counterparty 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 June 30, 2023.										⁽³⁾ Net amount represents the amount that is subject to loss in the event of a counterparty failure as of June 30, 2023.


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
Futures contracts
Counterparty C	$	3,008,522	$	(203,651)	$	2,804,871
Counterparty J		1,806,867		(159,073)		1,647,794
Counterparty L		2,163,318		(688,296)		1,475,022
Total futures contracts		6,978,707		(1,051,020)		5,927,687

Forward currency contracts
Counterparty G	$	884,233	$	(632,742)	$	251,491
Counterparty K		1,551,166		(1,165,708)		385,458
Total forward currency contracts		2,435,399		(1,798,450)		636,949

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

Total	$	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
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
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, 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 ~~$12,224,101~~$7,495,134 and $10,489,098 at ~~March 31,~~June 30, 2023 and December 31, 2022, respectively.

4. PROFIT SHARE

The following table indicates the total profit share earned and accrued during the three and six months ended ~~March 31,~~June 30, 2023 and 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:
March 31,
March 31,
2023
2022
Profit share earned
$
-
$
-
Profit share accrued
-
109,775
Total profit share
$
-
$
109,775


	Three months ended:
	June 30,		June 30,
	2023		2022
Profit share earned	$	-	$	1,586
Reversal of profit share ⁽¹⁾		-		(109,775)
Profit share accrued		-		893,699
Total profit share	$	-	$	785,510
				(continued)

1718



	Six months ended:
	June 30,		June 30,
	2023		2022
Profit share earned	$	-	$	1,586
Profit share accrued		-		893,699
Total profit share	$	-	$	895,285
				(concluded)
⁽¹⁾ on April 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 ~~March 31,~~June 30, 2023 and December 31, 2022, $0 was owed to the General Partner.

6. SUBSEQUENT EVENTS

The General Partner has performed its evaluation of subsequent events from ~~April~~July 1, 2023 to ~~May 15,~~August 14, 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 six months ended ~~March 31,~~June 30, 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.



Period ended March 31, 2023
Periods ended June 30, 2023			Periods ended June 30, 2023

Month Ended:		Total Partners' ‎Capital				Total Partners' ‎Capital

June 30, 2023					$	123,436,436
March 31, 2023	$	120,569,232				120,569,232
December 31, 2022		132,046,073				132,046,073


		Three Months ended		Three months ended		Six months ended
Change in Partners' Capital	$	(11,476,841)	$	2,867,204	$	(8,609,637)
Percent Change		(8.69)%		2.38%		(6.52)%

THREE MONTHS ENDED ~~MARCH 31,~~JUNE 30, 2023

The ~~decrease~~increase in the Partnership’s net assets of ~~$11,476,841~~$2,867,204 was attributable to net ~~loss~~income after profit share of ~~$10,292,408~~$3,372,223 and ~~withdrawals~~contributions of ~~$1,240,534,~~$15,966, which was partially offset by ~~and contributions~~withdrawals of ~~$56,101.~~$520,985.

~~Brokerage~~Management fees, installment selling commissions and trade execution and clearing cost are calculated on the net asset value on the last day of each month and are affected by trading performance, contributions and withdrawals. ~~Brokerage~~Management fees, installment selling commissions and trade execution and clearing costs for the three months ended ~~March 31,~~June 30, 2023 decreased ~~$4,017~~$29,188, $29,231 and $19,116, respectively, relative to the corresponding period in 2022. The decrease was due to an increased amount of lower fee paying investors in the Partnership during the three months ended ~~March 31,~~June 30, 2023, relative to the corresponding period in 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 ~~March 31,~~June 30, 2023 increased ~~$1,044,925~~$943,665 relative to the corresponding period in 2022. This increase was due predominantly to an increase in short-term U.S. treasury yields during the three months ended ~~March 31,~~June 30, 2023 relative to the corresponding period in 2022.

During the three months ended ~~March 31,~~June 30, 2023, the Partnership experienced net realized and unrealized ~~losses~~gains of ~~$10,670,504~~$2,821,193 from its trading operations (including foreign exchange translations and U.S. Treasury notes). ~~Brokerage~~Total brokerage and management fees of ~~$640,548,~~$612,696, administrative expenses of ~~$80,448,~~$75,244, custody fees and other expenses of ~~$5,445. Interest~~$5,519 were incurred. The Partnership’s gains achieved from trading operations, in addition to interest income of ~~$1,104,537~~$1,244,489, were partially offset by the Partnership expenses resulting in net ~~loss~~income after profit share to the General Partner of ~~$10,292,408.~~$3,372,223. An analysis of the trading gain (loss) by sector is as follows:


Sector	% Gain (Loss) of Partnership Capital
Currencies		~~0.10~~1.05	%
Energies		~~(2.38)~~(3.09)	%
Grains		~~(0.15)~~(0.03)	%
Interest rates		~~(6.14)~~3.30	%
Livestock		~~0.03~~0.04	%
Metals		~~0.23~~(0.16)	%
Softs		~~(0.10)~~0.22	%
Stock indices		~~0.12~~1.13	%

Trading Gain		2.46	%

SIX MONTHS ENDED JUNE 30, 2023

The decrease in the Partnership’s net assets of $8,609,637 was attributable to net loss after profit share of $6,920,185 and withdrawals of $1,761,519, which was partially offset by contributions of $72,067.

Management fees, installment selling commissions and trade execution and clearing costs are calculated on the net asset value on the last day of each month and are affected by trading performance, contributions and withdrawals. Management fees, installment selling commissions and trade execution and clearing costs for the six months ended June 30, 2023 decreased $8,280, $30,581 and $42,691, respectively, relative to the corresponding period in 2022. The decrease was due to an increased amount of lower fee paying investors in the Partnership during the six months ended June 30, 2023, relative to the corresponding period in 2022.

Interest income is derived from cash and U.S. Treasury instruments held at the Partnership’s brokers and custodian. Interest income for the six months ended June 30, 2023 increased $1,988,590 relative to the corresponding period in 2022. This increase was due predominantly to an increase in short-term U.S. treasury yields during the six months ended June 30, 2023 relative to the corresponding period in 2022.

During the six months ended June 30, 2023, the Partnership experienced net realized and unrealized losses of $7,849,311 from its trading operations (including foreign exchange translations and U.S. Treasury notes). Total brokerage and management fees of $1,253,244, administrative expenses of $155,692, custody fees and other expenses of $10,964. Interest income of $2,349,026 partially offset the Partnership expenses resulting in net loss after profit share to the General Partner of $6,920,185. An analysis of the trading gain (loss) by sector is as follows:


Sector	% Gain (Loss) of Partnership Capital
Currencies		1.13	%
Energies		(5.41)	%
Grains		(0.19)	%
Interest rates		(3.06)	%
Livestock		0.05	%
Metals		0.06	%
Softs		0.10	%
Stock indices		1.23	%

Trading Loss		~~(8.29)~~(6.09)	%

MANAGEMENT DISCUSSION –2023

Three months ended June 30, 2023

The Partnership was profitable during the quarter as gains from trading financial futures and currency forwards outpaced losses from trading energy futures. Trading of non-energy commodity futures was nearly flat.

Diverging narratives concerning the future paths of growth, inflation and monetary policy within and across various economic regions, including the U.S., Europe, China, and Asia (excluding China), and the bifurcation between weakening manufacturing and booming service sectors globally contributed to rattled financial and commodity markets during most of the quarter. U.S. regional banking stresses, political discussions around the U.S. debt ceiling, a late June spike of hawkish activity by global central banks and the attempted coup by the Wagner Group in Russia also contributed to market turmoil.

Interest rate volatility remained elevated during the quarter as persistent global inflation leant support to increased rates while concerns about slowing growth and/or a recession weakened the push for rate increases. Market participants expressed some uncertainty about how central banks would respond to strong inflation, labor markets and consumer spending in the U.S. and Europe, juxtaposed against weaker than expected growth in China and slowing manufacturing globally. Developed market central banks enacted higher official interest rates and more hawkish policy. Consequently, interest rates rose and short positions in U.S., European, British, Canadian and Australian interest rate futures, particularly shorter-term futures, were quite profitable. On the other hand, short positions in French, Italian and German longer-term interest rate futures posted small partially offsetting losses.

Stocks were unsettled with widely divergent results by region, sector and individual security during the quarter amid divergent views about inflation, monetary policy, growth and earnings. In Japan, strong domestic demand and the de-risking and friend-shoring of supply chains seemingly contributed to the strength of Japanese stocks, and long positions in Japanese equity index futures were profitable, as was a long Taiwanese stock index futures trade. Trading of European equity index futures—German, French, British, Spanish and Italian—also posted gains. Short VIX and VSTOXX volatility index futures were also profitable. On the other hand, excitement about AI and tech, persistently strong consumer spending, and investor optimism about a soft or no landing U.S. growth scenario seemed to support U.S. stocks, and short positions in U.S. equity futures registered losses. Trading of China-related equity index futures was also slightly negative. A short Brazilian equity index trade was also unprofitable as equity futures rose amid the fiscal policy outlook and inflation expectations improving in Brazil.

Foreign exchange trading was mixed but quite profitable. A long position in the high yield Brazilian real versus the U.S. dollar and a short position in the low yield Japanese yen versus the U.S. dollar were particularly profitable. Long positions in high yield Polish, Mexican and Chilean currencies against the U.S. dollar were also profitable. Trading the U.S. dollar against the United Kingdom pound sterling and South African rand also registered gains. On the other hand, short U.S. dollar trades versus the European Union euro, Israeli shekel and New Zealand dollar and long U.S. dollar trades versus the Canadian dollar, Korean won, and Swedish krona posted partially offsetting losses.

Crude oil and crude product prices were impacted by conflicting forces during the quarter. Fears of sluggish global growth, particularly in China, and evidence that diesel and gasoline demand was being negatively impacted by increasing EV usage and government fuel economy standards contributed to down prices, while the U.S. outlook, continuing production cuts from Organization of the Petroleum Exporting Countries (“OPEC+”) and news that the U.S. was commencing a rebuild of its strategic petroleum reserve seemed to support prices. Overall prices did decline during the quarter and long positions in Brent crude and WTI crude, and trading of RBOB gasoline, London gas oil and heating oil were unprofitable. Following the sharp declines in natural gas prices during the first quarter amid weak demand, larger-than-usual inventories and mild weather, prices and demand increased during the second quarter amid unexpectedly hot weather in Europe and the U.S., especially in June. Hence, short U.S. and European natural gas positions were slightly unprofitable for the quarter.

Finally, small gains from trading soft and livestock commodity futures were largely offset by small losses from trading metal and grain futures.

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
Periods ended June 30, 2022			Periods ended June 30, 2022

Month Ended:		Total Partners' ‎Capital				Total Partners' ‎Capital

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


		Three Months ended		Three months ended		Six months ended
Change in Partners' Capital	$	5,941,464	$	8,954,933	$	14,896,397
Percent Change		5.02%		7.20%		12.59%

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

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

Brokerage fees (see note 1) are calculated on the net asset value on the last day of each month and are affected by trading performance, contributions and withdrawals. Brokerage fees for the three months ended ~~March 31,~~June 30, 2022 decreased ~~$34,697~~$23,899 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 three months ended ~~March 31,~~June 30, 2022, relative to the corresponding period in 2021.

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

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


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

Trading Gain		~~6.75~~8.92	%

SIX MONTHS ENDED JUNE 30, 2022

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

Brokerage fees (see note 1) are calculated on the net asset value on the last day of each month and are affected by trading performance, contributions and withdrawals. Brokerage fees for the six months ended June 30, 2022 decreased $58,596 relative to the corresponding period in 2021. The decrease was due to an increased amount of lower fee paying investors in the Partnership during the six months ended June 30, 2022, relative to the corresponding period in 2021.

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

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


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

Trading Gain		16.33	%

MANAGEMENT DISCUSSION –2022

Three months ended June 30, 2022

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

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

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

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

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

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

Grain prices which hit 10-year highs in March and April following the Russian invasion of Ukraine, were volatile during most of the second quarter, and eased somewhat in June against the backdrop of more favorable weather in the U.S. and South America, near record Russian wheat crops, hopes for Ukrainian exports and slowing demand due to recession fears. A long soybean oil position was profitable in April in the wake

of news that Indonesia banned exports of palm oil in a bid to ensure domestic supply. Both palm oil and soybean oil are used for cooking as well as food preparation, and are in high demand as substitutes for sunflower oil, a commodity whose supply has been negatively impacted by the ongoing Russian war on Ukraine. Then, late in June, a short soybean oil trade was also profitable. Short corn and wheat trades were also profitable late in the quarter.

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

Three months ended March 31, 2022

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

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

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

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

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

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

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~~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.

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 ~~March 31,~~June 30, 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 ~~March 31,~~June 30, 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 ~~March~~April 1, 2023, May 1, 2023 and June 1, 2023,the Partnership sold Interests to new and existing limited partners of ~~$56,101.~~$7,514, $5,093 and $3,359, respectively. 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 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)


The following table summarizes Interests redeemed during the three months ended June 30, 2023:

Date of ‎Withdrawal	Limited ‎Partners	Special Limited ‎Partners	Total

April 30, 2023	$ (63,983)	$ (302,255)	$ (366,238)
May 31, 2023	(129,126)	(8,264)	(137,390)
June 30, 2023	(17,357)	-	(17,357)
Total	$ (210,466)	$ (310,519)	$ (520,985)

ITEM 3. Defaults Upon Senior Securities

None.

ITEM 4. Mine Safety Disclosures

Not Applicable.

ITEM 5. Other Information

None.

ITEM 6. Exhibits

The following exhibits are included herewith:


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

101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Extension Schema Document
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		XBRL Taxonomy Extension Label Linkbase Document
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

‎

2529

SIGNATURES

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


By:	Millburn Ridgefield Corporation,	/s/ Michael W. Carter
	General Partner	Michael W. Carter
		Vice-President
Date: ~~May 15,~~August 14, 2023		(Principal Accounting Officer)

2630


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)


	Three months ended:
	March 31,		March 31,
	2023		2022
Profit share earned	$	-	$	-
Profit share accrued		-		109,775
Total profit share	$	-	$	109,775