Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations.

Liquidity and Capital Resources

The Partnership does not have, nor does it expect to have, any capital assets. The Partnership does not engage in sales of goods or services. Its assets are its (i) equity in trading account, consisting of restricted and unrestricted cash, foreign cash, net unrealized appreciation on open futures contracts and net unrealized appreciation on open forward contracts, as applicable, and (ii) interest receivable. Because of the low margin deposits normally required in commodity futures trading, relatively small price movements may result in substantial losses to the Partnership, through its direct investments. While substantial losses could lead to a material decrease in liquidity, no such illiquidity occurred in the first quarter of 2026.

The Partnership's/Trading Company's investment in Futures Interests may, from time to time, be illiquid. Most U.S. futures exchanges limit fluctuations in prices during a single day by regulations referred to as "daily price fluctuation limits" or "daily limits." Trades may not be executed at prices beyond the daily limit. If the price for a particular futures or option contract has increased or decreased by an amount equal to the daily limit, positions in that futures or option contract can neither be taken nor liquidated unless traders are willing to effect trades at or within the limit. Futures prices have occasionally moved the daily limit for several consecutive days with little or no trading. These market conditions could prevent the Partnership/Trading Company from promptly liquidating its futures or option contracts and result in restrictions on redemptions.

There is no limitation on daily price movements in trading forward contracts on foreign currencies. The markets for some world currencies have low trading volume and are illiquid, which may prevent the Partnership/Trading Company from trading in potentially profitable markets or prevent the Partnership/Trading Company from promptly liquidating unfavorable positions in such markets, subjecting it to substantial losses. Either of these market conditions could result in restrictions on redemptions. For the periods covered by this report, illiquidity has not materially affected the Partnership's/Trading Company's assets.

Other than the risks inherent in commodity futures, forwards, options, swaps and other derivatives trading and U.S. Treasury bills and money market mutual fund securities, the General Partner knows of no trends, demands, commitments, events or uncertainties at the present time that are reasonably likely to result in the Partnership's/Trading Company's liquidity increasing or decreasing in any material way.

The Partnership's capital consists of the capital contributions of the partners as increased or decreased by net realized and/or unrealized gains or losses on trading and by expenses, interest income, subscriptions and redemptions of Units. The Partnership's primary need for capital resources is for Futures Interests trading.

For the three months ended March 31, 2026, the Partnership's capital increased 9.3% from $127,035,763 to $138,888,369. This increase was attributable to a net income of $13,824,257 which was partially offset by redemptions of 63,218.375 Class A limited partner Units totaling $1,971,651. Future redemptions could impact the amount of funds available for investments in commodity contract positions in subsequent periods.

Other than as discussed above, there are no known material trends, favorable or unfavorable, that would affect, nor any expected material changes to, the Partnership's capital resource arrangements at the present time.

Off-Balance Sheet Arrangements and Contractual Obligations

The Partnership does not have any off-balance sheet arrangements, nor does it have contractual obligations or commercial commitments to make future payments, that would affect its liquidity or capital resources.

Critical Accounting Policies

The preparation of financial statements in conformity with GAAP requires the General Partner to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting periods. The General Partner believes that the estimates utilized in preparing the financial statements are reasonable. Actual results could differ from those estimates. The Partnership's significant accounting policies are described in detail in Note 2, "Basis of Presentation and Summary of Significant Accounting Policies," of the Financial Statements.

The Partnership/Trading Company records all investments at fair value in its financial statements, with changes in fair value reported as a component of net realized gains (losses) and net change in unrealized gains (losses) in the Consolidated Statements of Income and Expenses.

Results of Operations

During the Partnership's first quarter of 2026, the net asset value per Unit for Class A increased 10.9% from $29.04 to $32.21 as compared to remaining flat 0.0% during the first quarter of 2025. During the Partnership's first quarter of 2026, the net asset value per Unit for Class Z increased 11.1% from $12.74 to $14.16 as compared to an increase of 0.2% during the first quarter of 2025. The Partnership experienced a net trading gain before fees and expenses in the first quarter of 2026 of $14,103,866. Gains were primarily attributable to the Partnership's trading of Futures Interests in currencies, energy, livestock, metals and softs and were partially offset by losses in grains, indices, U.S. and non-U.S. interest rates. The Partnership experienced a net trading loss before fees and expenses in the first quarter of 2025 of $37,236. Losses were primarily attributable to the Partnership's trading of Futures Interests in currencies, energy, grains, U.S. and non-U.S. interest rates and were partially offset by gains in indices, livestock, metals and softs.

The Partnership's largest gains during the first quarter were generated within the energy sector during March from long positions in gasoil, Brent crude oil, unleaded gasoline, and heating oil futures. Oil prices rose sharply during March, as geopolitical turmoil and subsequent hostilities in the Middle East threatened global energy supplies. Gains in the metals markets were recorded during January from long positions in gold and silver futures, as heightened investor demand for precious metals pushed prices to record highs. Additional gains in the metals sector were generated from long positions in copper futures during the same period. In the currency sector, gains were recorded during January from long positions in the Australian dollar, Norwegian krone, British pound, and Brazilian real, as these currencies strengthened versus the U.S. dollar. In the agricultural sector, gains were achieved during January and February from short positions in cocoa futures, as favorable weather conditions in key West African growing regions led to declining prices. A portion of the Partnership's first-quarter trading gains was offset by losses incurred within the global fixed income sector. During March, losses were recorded from long positions in European fixed income futures, as geopolitical turmoil increased volatility in bond markets. Additional losses in the sector were experienced during January from positions in U.S., European, British and Japanese fixed income futures, reflecting a lack of sustained price direction amid interest rate policy uncertainty.

Commodity markets are highly volatile. Broad price fluctuations and rapid inflation increase not only the risk involved in commodity trading, but also the possibility of profit. The profitability of the Partnership depends on the existence of major price trends and the ability of the Trading Advisor to correctly identify those price trends. Price trends are influenced by, among other things, changing supply and demand relationships, weather, 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 Trading Advisor is able to identify them, the Partnership expects to increase capital through operations.

The Partnership receives monthly interest on 100% of the average daily equity maintained in cash in the Partnership's account during each month at a rate equal to 100% of the monthly average of the 4-week U.S. Treasury bill discount rate. For the avoidance of doubt, the Partnership will not receive interest on amounts in the futures brokerage account that are committed to margin. Any interest earned on the Partnership's cash account in excess of the amounts described above, if any, will be retained by MS&Co. and/or shared with the General Partner. All interest earned on U.S. Treasury bills and money market fund securities will be retained by the Partnership, as applicable. Interest income for the three months ended March 31, 2026 decreased by $286,894 as compared to the corresponding period in 2025. The decrease in interest income was primarily due to lower interest rates and lower average daily equity during the three months ended March 31, 2026 as compared to the corresponding period in 2025. Interest earned by the Partnership will increase the net asset value of the Partnership. The amount of interest income earned by the Partnership depends on (1) the average daily equity maintained in cash in the Partnership's accounts, (2) the amount of U.S. Treasury bills and/or money market mutual fund securities held by the Partnership and (3) interest rates over which none of the Partnership or MS&Co. has control.

Certain clearing fees are based on the number of trades executed by the Trading Advisors for the Partnership. Accordingly, they must be compared in relation to the number of trades executed during the period. Clearing fees for the three months ended March 31, 2026 increased by $13,177 as compared to the corresponding period in 2025. The increase in clearing fees was primarily due to an increase in the number of trades made by the Partnership during the three months ended March 31, 2026 as compared to the corresponding period in 2025.

Ongoing placement agent fees are calculated as a percentage of the Partnership's Class A adjusted net assets on the first day of each month and are affected by trading performance, subscriptions, and redemptions. Accordingly, they must be compared in relation to the fluctuations in the monthly net asset values. Ongoing placement agent fees for the three months ended March 31, 2026 decreased by $24,789 as compared to the corresponding period in 2025. The decrease was primarily due to a decrease in Class A adjusted net assets during the three months ended March 31, 2026 as compared to the corresponding period in 2025.

Administrative and General Partner fees are paid to the General Partner for administering the business and affairs of the Partnership. The Administrative and General Partner's fees are calculated as a percentage of the Partnership's adjusted net asset value as of the beginning of each month and are affected by trading performance and redemptions. Accordingly, they must be compared in relation to the fluctuations in the monthly net asset values. Administrative and General Partner's fees for the three months ended March 31, 2026 decreased by $24,986 as compared to the corresponding period in 2025. The decrease was primarily due to a decrease in average net assets during the three months ended March 31, 2026 as compared to the corresponding period in 2025.

Management fees are calculated as a percentage of the Partnership's adjusted net asset value as of the beginning of each month and are affected by trading performance and redemptions. Accordingly, they must be compared in relation to the fluctuations in the monthly net asset values. Management fees for the three months ended March 31, 2026 decreased by $55,066 as compared to the corresponding period in 2025. The decrease was primarily due to a decrease in average net assets during the three months ended March 31, 2026 as compared to the corresponding period in 2025.

Incentive fees are based on the new trading profits generated by the Trading Advisors at the end of the year as defined in the management agreement among the Partnership, the General Partner and the relevant Trading Advisor. Trading performance for the three months ended March 31, 2026 and 2025 resulted in incentive fees of $138,805 and $0, respectively. To the extent that a Trading Advisor incurs a loss for the Partnership, the Trading Advisor will not be paid incentive fees until such Trading Advisor recovers any net loss incurred and earns additional new trading profits for the Partnership.

In allocating substantially all of the assets of the Partnership among the Trading Advisors, the General Partner considers, among other factors, the Trading Advisors' past performance, trading style, volatility of markets traded and fee requirements. The General Partner may modify or terminate the allocation of assets to the Trading Advisors and allocate assets to additional advisors at any time.

As of March 31, 2026 and December 31, 2025, the Partnership's Net Assets were allocated among the Trading Advisors in the following approximate percentages: