During the Partnership’s third quarter of 2021, the net asset value per Redeemable Unit for Class A increased 3.1% from $3,108.06 to $3,203.11, as compared to an increase of 3.7% in the third quarter of 2020. During the Partnership’s third quarter of 2021, the net asset value per Redeemable Unit for Class Z increased 3.3% from $1,277.55 to $1,319.13, as compared to an increase of 4.0% in the third quarter of 2020. The Partnership experienced a net trading gain before fees and expenses in the third quarter of 2021 of $18,588,368. Gains were primarily attributable to the Partnership’s/Funds’ trading of commodity futures in energy, indices and softs and were partially offset by losses in currencies, grains, U.S. and
non-U.S.
interest rates, livestock and metals. The Partnership experienced a net trading gain before fees and expenses in the third quarter of 2020 of $21,342,445. Gains were primarily attributable to the Partnership’s/Funds’ trading of commodity futures in energy, indices,
non-U.S.
interest rates, livestock and metals and were partially offset by losses in currencies, grains, U.S. interest rates and softs.
The Partnership’s most significant gains were achieved within the energy sector during July, August and September from long positions in natural gas, coal, and European electrical power futures as a combination of supply and demand factors boosted energy prices globally. Gains were also recorded in the agricultural markets during July, August and September from long positions in coffee, cotton, and sugar futures as inflationary pressures impacted the prices of consumer products. Further gains were experienced within the global stock index sector during July and August from long positions in U.S., European, and Asian equity index futures as global stock prices advanced on steady investor appetite for risk assets. A portion of the Partnership’s gains for the quarter was offset by losses incurred within the global fixed income sector during August and September primarily from long positions in European and U.S. fixed income futures as prices fell amid an outlook for central banks in the U.S. and European Union to potentially taper asset purchasing and other easing programs sooner than previously expected. Losses within the metals were recorded during August and September from long positions in copper and gold futures as a strengthening U.S. dollar adversely impacted demand for both precious and industrial metals. Smaller losses were incurred within the currencies during July from short positions in the Japanese yen as the value of the Asian nation’s currency rallied amid COVID driven “safe-haven” buying.
During the Partnership’s nine months ended September 30, 2021, the net asset value per Redeemable Unit for Class A increased 15.6% from $2,769.71 to $3,203.11, as compared to a decrease of 1.7% during the nine months ended September 30, 2020. During the Partnership’s nine months ended September 30, 2021, the net asset value per Redeemable Unit for Class Z increased 16.3% from $1,134.16 to $1,319.13, as compared to a decrease of 0.9% during the nine months ended September 30, 2020. The Partnership experienced a net trading gain before fees and expenses for the nine months ended September 30, 2021 of $74,192,273. Gains were primarily attributable to the Partnership’s/Funds’ trading of commodity futures in energy, grains, indices, livestock, metals and softs and were partially offset by losses in currencies and U.S. and
non-U.S.
interest rates. The Partnership experienced a net trading gain before fees and expenses for the nine months ended September 30, 2020 of $11,180,930. Gains were primarily attributable to the Partnership’s/Funds’ trading of commodity futures in energy, U.S. and
non-U.S.
interest rates and metals and were partially offset by losses in currencies, grains, indices, livestock and softs.
The most notable gains were achieved within the energy markets during the first, second, and third quarters from long futures positions in crude oil and its refined products, natural gas, carbon emission allowances, electrical power and coal as energy prices rallied higher on increased demand. Within the agricultural sector, gains were experienced during February from long futures positions in the grains as prices advanced amid adverse weather in the key growing regions of North and South America threatening crop plantings. Additional gains within the agriculturals were recorded from long positions in corn futures during April and June. Further gains were experienced within the global stock index sector throughout a majority of the first nine months of the year from long positions in U.S., European, and Asian equity index futures as prices advanced on steady investor appetite for risk assets. Within the metals markets, gains were achieved during February, April, and May from long positions in copper futures as prices rallied on optimism global manufacturing demand would accelerate coming out of the
COVID-19
lockdown phase. The Partnership’s overall trading gains for the first nine months of the year were partially offset by trading losses within the global fixed income sector during August and September primarily from long positions in European and U.S. fixed income futures as prices fell amid an outlook for central banks in the U.S. and EU to potentially taper asset purchasing and other easing programs sooner than previously expected. Additional losses in this sector were experienced during April, May, and June from short positions in U.S. and European fixed income futures. Losses were also experienced within the currency sector during January from long positions in the euro, Australian dollar, Canadian dollar and Japanese yen versus the U.S. dollar as the pace of the U.S. vaccine rollout accelerated, pushing the value of the U.S. currency higher. Further losses in the currencies were incurred during June from positions in the Canadian and New Zealand dollars.
Commodity markets are highly volatile. Broad price fluctuations and rapid inflation increase the risks involved in commodity trading, but also increase the possibility for profit. The profitability of the Partnership/Funds depends on the existence of major price trends and the ability of the Advisors to correctly identify those price trends. Price trends are influenced by, among other things, changing supply and demand relationships, weather, public health epidemics, governmental, agricultural, commercial and trade programs and policies, national and international political and economic events and changes in interest rates. To the extent that market trends exist and the Advisors are able to identify them, the Partnership/Funds expect to increase capital through operations.
