##### 



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549 FORM 10-Q þ
    
    Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the quarterly period ended March 31, 2005 or o
    
    Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the transition period from ____________________to________________________ Commission File number: 0-33311 CAMPBELL ALTERNATIVE ASSET TRUST 
  Delaware
    
    52-1823554(State of Organization)
    
    (IRS Employer Identification Number)
 Court Towers Building
210 West Pennsylvania Avenue,
Baltimore, Maryland 21204(Address of principal executive offices, including zip code)
 (410) 296-3301(Registrants telephone number, including area code)
 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, and (2)
has been subject to such filing requirements for the past 90 days.
Yes þ   No o Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange
Act Rule 12b-2)
Yes o   No þ Total number of Pages: 27




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PagePART I  FINANCIAL INFORMATIONItem 1. Financial StatementsStatements of Financial Condition as of March 31, 2005 (Unaudited)
and December 31, 2004 (Audited)
    
    
    3Condensed Schedules of Investments as of March 31, 2005 (Unaudited)
and December 31, 2004 (Audited)
    
    
    4-5Statements of Operations for the Three Months Ended
March 31, 2005 and 2004 (Unaudited)
    
    
    6Statements of Cash Flows for the Three Months Ended
March 31, 2005 and 2004 (Unaudited)
    
    
    7Statements of Changes in Partners Capital (Net Asset Value)
for the Three Months Ended March 31, 2005 and 2004 (Unaudited)
    
    
    8Notes to Financial Statements (Unaudited)
    
    
    9-14Item 2. Managements Discussion and Analysis of Financial Condition and
Results of Operations
    
    
    15-19Item 3. Quantitative and Qualitative Disclosure About Market Risk
    
    
    19-25Item 4. Controls and Procedures
    
    
    25PART II  OTHER INFORMATION
    
    
    26Item 6. Exhibits and Reports on Form 8-K
    
    
    26SIGNATURESCERTIFICATIONS
 -2-




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##### 



CAMPBELL ALTERNATIVE ASSET TRUST
STATEMENTS OF FINANCIAL CONDITION
March 31, 2005 (Unaudited) and December 31, 2004 (Audited)    March 31,
    
    
    December 31,2005
    
    
    2004ASSETSEquity in broker trading accountsCash
    
    $
    1,896,507
    
    
    $
    1,737,399United States government securities
    
    
    23,792,405
    
    
    
    23,205,469Unrealized gain on open futures contracts
    
    
    622,972
    
    
    
    515,410Deposits with broker
    
    
    26,311,884
    
    
    
    25,458,278Cash
    
    
    2,495,580
    
    
    
    10,308,861United States government securities
    
    
    5,997,801
    
    
    
    0Unrealized (loss) on open forward currency contracts
    
    
    (372,454
    )
    
    
    (541,572
    )Total assets
    
    $
    34,432,811
    
    
    $
    35,225,567LIABILITIESAccounts payable
    
    $
    20,127
    
    
    $
    27,679Brokerage fee
    
    
    46,413
    
    
    
    49,029Commissions and other trading fees
on open contracts
    
    
    11,973
    
    
    
    18,513Offering costs payable
    
    
    14,656
    
    
    
    15,483Redemptions payable
    
    
    62,810
    
    
    
    159,478Total liabilities
    
    
    155,979
    
    
    
    270,182UNITHOLDERS CAPITAL (Net Asset Value)Managing Owner  1,413.580 units outstanding at
March 31, 2005 and December 31, 2004
    
    
    2,060,420
    
    
    
    2,122,335Other Unitholders  22,102.461 and 21,868.461 units
outstanding at March 31, 2005 and December 31, 2004
    
    
    32,216,412
    
    
    
    32,833,050Total unitholders capital
(Net Asset Value)
    
    
    34,276,832
    
    
    
    34,955,385$
    34,432,811
    
    
    $
    35,225,567
 See accompanying notes. -3-




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##### 



CAMPBELL ALTERNATIVE ASSET TRUST
CONDENSED SCHEDULE OF INVESTMENTS
March 31, 2005
(Unaudited)    UNITED STATES GOVERNMENT SECURITIES Maturity
    
    
    
    
    
    
    
    
    % of NetFace Value
    
    
    Date
    
    
    Description
    
    Value
    
    
    Asset Value$
    14,500,000
    
    
    
    05/05/2005
    
    
    U.S. Treasury Bills
    
    $
    14,466,859
    
    
    
    42.21
    %$
    10,350,000
    
    
    
    04/07/2005
    
    
    U.S. Treasury Bills
    
    
    10,346,166
    
    
    
    30.18
    %$
    5,000,000
    
    
    
    06/02/2005
    
    
    U.S. Treasury Bills
    
    
    4,977,181
    
    
    
    14.52
    %Total United States government securities
(cost, including
accrued
interest,  $29,790,206)
    
    $
    29,790,206
    
    
    
    86.91
    %
 LONG FUTURES CONTRACTS % of NetDescription
    
    Value
    
    
    Asset ValueEnergy
    
    $
    146,672
    
    
    
    0.43
    %Metals
    
    
    13,129
    
    
    
    0.04
    %Stock index
    
    
    (126,578
    )
    
    
    (0.37
    )%Short-term interest rates
    
    
    66,789
    
    
    
    0.19
    %Long-term interest rates
    
    
    376,352
    
    
    
    1.10
    %Total long futures contracts
    
    $
    476,364
    
    
    
    1.39
    %
 SHORT FUTURES CONTRACTS % of NetDescription
    
    Value
    
    
    Asset ValueEnergy
    
    $
    (15,160
    )
    
    
    (0.04
    )%Metals
    
    
    (906
    )
    
    
    0.00
    %Stock index
    
    
    (2,240
    )
    
    
    (0.01
    )%Short-term interest rates
    
    
    37,773
    
    
    
    0.11
    %Long-term interest rates
    
    
    127,141
    
    
    
    0.37
    %Total short futures contracts
    
    $
    146,608
    
    
    
    0.43
    %Total futures contracts
    
    $
    622,972
    
    
    
    1.82
    %
 FORWARD CURRENCY CONTRACTS % of NetDescription
    
    Value
    
    
    Asset ValueVarious long forward currency contracts
    
    $
    (990,942
    )
    
    
    (2.89
    )%Various short forward currency contracts
    
    
    618,488
    
    
    
    1.80
    %Total forward currency contracts
    
    $
    (372,454
    )
    
    
    (1.09
    )%
 See accompanying notes. -4-




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##### 



CAMPBELL ALTERNATIVE ASSET TRUST
CONDENSED SCHEDULE OF INVESTMENTS
December 31, 2004
(Audited)    UNITED STATES GOVERNMENT SECURITIES Maturity
    
    
    
    
    
    
    
    
    % of NetFace Value
    
    
    Date
    
    
    Description
    
    Value
    
    
    Asset Value$
    14,500,000
    
    
    
    02/03/2005
    
    
    U.S. Treasury Bills
    
    $
    14,474,546
    
    
    
    41.41
    %$
    5,000,000
    
    
    
    03/03/2005
    
    
    U.S. Treasury Bills
    
    
    4,981,785
    
    
    
    14.25
    %$
    3,750,000
    
    
    
    01/06/2005
    
    
    U.S. Treasury Bills
    
    
    3,749,138
    
    
    
    10.73
    %Total United States
government securities
(cost, including
accrued
interest,  $23,205,469)
    
    $
    23,205,469
    
    
    
    66.39
    %
 LONG FUTURES CONTRACTS % of NetDescription
    
    Value
    
    
    Asset ValueEnergy
    
    $
    (67,171
    )
    
    
    (0.19
    )%Metals
    
    
    22,747
    
    
    
    0.06
    %Stock index
    
    
    284,504
    
    
    
    0.81
    %Short-term interest rates
    
    
    (26,703
    )
    
    
    (0.08
    )%Long-term interest rates
    
    
    271,151
    
    
    
    0.78
    %Total long futures contracts
    
    $
    484,528
    
    
    
    1.38
    %
 SHORT FUTURES CONTRACTS % of NetDescription
    
    Value
    
    
    Asset ValueMetals
    
    $
    (29,095
    )
    
    
    (0.08
    )%Short-term interest rates
    
    
    60,064
    
    
    
    0.17
    %Long-term interest rates
    
    
    (87
    )
    
    
    0.00
    %Total short futures contracts
    
    $
    30,882
    
    
    
    0.09
    %Total futures contracts
    
    $
    515,410
    
    
    
    1.47
    %
 FORWARD CURRENCY CONTRACTS % of NetDescription
    
    Value
    
    
    Asset ValueVarious long forward currency contracts
    
    $
    1,054,128
    
    
    
    3.02
    %Various short forward currency contracts
    
    
    (1,595,700
    )
    
    
    (4.57
    )%Total forward currency contracts
    
    $
    (541,572
    )
    
    
    (1.55
    )%
 See accompanying notes. -5-




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##### 



CAMPBELL ALTERNATIVE ASSET TRUST
STATEMENTS OF OPERATIONS
For the Three Months Ended March 31, 2005 and 2004
(Unaudited)    2005
    
    
    2004TRADING GAINS (LOSSES)Futures trading gainsRealized
    
    $
    435,719
    
    
    $
    4,100,092Change in unrealized
    
    
    107,562
    
    
    
    325,998Brokerage commissions
    
    
    (20,389
    )
    
    
    (21,748
    )Gain from futures trading
    
    
    522,892
    
    
    
    4,404,342Forward currency trading gains (losses)Realized
    
    
    (1,579,118
    )
    
    
    3,431,035Change in unrealized
    
    
    169,118
    
    
    
    (1,269,695
    )Brokerage commissions
    
    
    (3,037
    )
    
    
    (2,383
    )Gain (loss) from forward currency trading
    
    
    (1,413,037
    )
    
    
    2,158,957Total trading gains (losses)
    
    
    (890,145
    )
    
    
    6,563,299EXPENSES NET OF INTEREST INCOMEIncomeInterest income
    
    
    204,193
    
    
    
    83,795ExpensesBrokerage fee
    
    
    244,938
    
    
    
    268,055Performance fee
    
    
    0
    
    
    
    1,245,040Operating expenses
    
    
    15,413
    
    
    
    14,776Total expenses
    
    
    260,351
    
    
    
    1,527,871Expenses net of interest income
    
    
    (56,158
    )
    
    
    (1,444,076
    )NET INCOME (LOSS)
    
    $
    (946,303
    )
    
    $
    5,119,223NET INCOME (LOSS) PER MANAGING OWNER AND
OTHER UNITHOLDERS UNIT(based on weighted average number of
units outstanding during the period)
    
    $
    (40.35
    )
    
    $
    213.31INCREASE (DECREASE) IN NET ASSET VALUE PER
MANAGING OWNER AND OTHER UNITHOLDERS UNIT
    
    $
    (43.80
    )
    
    $
    209.12
 See accompanying notes. -6-




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CAMPBELL ALTERNATIVE ASSET TRUST
STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31, 2005 and 2004
(Unaudited)    2005
    
    
    2004Cash flows from (for) operating activitiesNet income (loss)
    
    $
    (946,303
    )
    
    $
    5,119,223Adjustments to reconcile net income (loss) to net cash
from (for) operating activitiesNet change in unrealized
    
    
    (276,680
    )
    
    
    943,697Increase (decrease) in accounts payable and accrued expenses
    
    
    (16,708
    )
    
    
    523,986Net (purchases) of investments in United States
government securities
    
    
    (6,584,737
    )
    
    
    (1,747,394
    )Net cash from (for) operating activities
    
    
    (7,824,428
    )
    
    
    4,839,512Cash flows from (for) financing activitiesAddition of units
    
    
    758,879
    
    
    
    1,247,987Redemption of units
    
    
    (413,780
    )
    
    
    (734,548
    )Increase (decrease) in redemptions payable
    
    
    (96,668
    )
    
    
    391,946Offering costs charged
    
    
    (77,349
    )
    
    
    (84,649
    )Increase (decrease) in offering costs payable
    
    
    (827
    )
    
    
    2,509Net cash from financing activities
    
    
    170,255
    
    
    
    823,245Net increase (decrease) in cash
    
    
    (7,654,173
    )
    
    
    5,662,757CashBeginning of period
    
    
    12,046,260
    
    
    
    11,993,306End of period
    
    $
    4,392,087
    
    
    $
    17,656,063End of period cash consists of:Cash in broker trading accounts
    
    $
    1,896,507
    
    
    $
    3,463,034Cash
    
    
    2,495,580
    
    
    
    14,193,029Total end of period cash
    
    $
    4,392,087
    
    
    $
    17,656,063
 See accompanying notes. -7-




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CAMPBELL ALTERNATIVE ASSET TRUST
STATEMENTS OF CHANGES IN UNITHOLDERS CAPITAL (NET ASSET VALUE)
For the Three Months Ended March 31, 2005 and 2004
(Unaudited)    Unitholders CapitalManaging Owner
    
    
    Other Unitholders
    
    
    TotalUnits
    
    
    Amount
    
    
    Units
    
    
    Amount
    
    
    Units
    
    
    AmountThree Months Ended March 31, 2005Balances at
December 31, 2004
    
    
    1,413.580
    
    
    $
    2,122,335
    
    
    
    21,868.461
    
    
    $
    32,833,050
    
    
    
    23,282.041
    
    
    $
    34,955,385Net (loss) for the three months
ended March 31, 2005
    
    
    
    
    
    
    (57,253
    )
    
    
    
    
    
    
    (889,050
    )
    
    
    
    
    
    
    (946,303
    )Additions
    
    
    0.000
    
    
    
    0
    
    
    
    517.994
    
    
    
    758,879
    
    
    
    517.994
    
    
    
    758,879Redemptions
    
    
    0.000
    
    
    
    0
    
    
    
    (283.994
    )
    
    
    (413,780
    )
    
    
    (283.994
    )
    
    
    (413,780
    )Offering costs
    
    
    
    
    
    
    (4,662
    )
    
    
    
    
    
    
    (72,687
    )
    
    
    
    
    
    
    (77,349
    )Balances at
March 31, 2005
    
    
    1,413.580
    
    
    $
    2,060,420
    
    
    
    22,102.461
    
    
    $
    32,216,412
    
    
    
    23,516.041
    
    
    $
    34,276,832Three Months Ended March 31, 2004Balances at
December 31, 2003
    
    
    1,413.580
    
    
    $
    1,947,390
    
    
    
    22,411.035
    
    
    $
    30,874,028
    
    
    
    23,824.615
    
    
    $
    32,821,418Net income for the three months
ended March 31, 2004
    
    
    
    
    
    
    300,592
    
    
    
    
    
    
    
    4,818,631
    
    
    
    
    
    
    
    5,119,223Additions
    
    
    0.000
    
    
    
    0
    
    
    
    823.394
    
    
    
    1,247,987
    
    
    
    823.394
    
    
    
    1,247,987Redemptions
    
    
    0.000
    
    
    
    0
    
    
    
    (466.837
    )
    
    
    (734,548
    )
    
    
    (466.837
    )
    
    
    (734,548
    )Offering costs
    
    
    
    
    
    
    (4,984
    )
    
    
    
    
    
    
    (79,665
    )
    
    
    
    
    
    
    (84,649
    )Balances at
March 31, 2004
    
    
    1,413.580
    
    
    $
    2,242,998
    
    
    
    22,767.592
    
    
    $
    36,126,433
    
    
    
    24,181.172
    
    
    $
    38,369,431
 Net Asset Value Per Managing Owner and Other Unitholders UnitMarch 31,
    
    December 31,
    
    March 31,
    
    December 31,2005
    
    2004
    
    2004
    
    2003$
1,457.59
    
    $
    1,501.39
    
    $
    1,586.75
    
    $
    1,377.63
 See accompanying notes. -8-




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CAMPBELL ALTERNATIVE ASSET TRUST
NOTES TO FINANCIAL STATEMENTS
(Unaudited)    Note 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  A.
    General Description of the TrustCampbell Alternative Asset Trust (the Trust) is a Delaware statutory trust
which operates as a commodity investment pool. The Trust was formed on May 3, 2000
and commenced trading on October 1, 2001. The Trust engages in the speculative
trading of futures contracts and forward currency contracts.As of December 31, 2002, units are no longer offered to the public, but are offered
exclusively for sale to the Campbell & Company, Inc. 401(K) Plan (the 401(K) Plan).
At March 31, 2005, the 401(K) Plan held approximately 43% of the Trusts outstanding
units.B.
    RegulationAs a registrant with the Securities and Exchange Commission, the Trust is
subject to the regulatory requirements under the Securities Act of 1933 and the
Securities Exchange Act of 1934. As a commodity investment pool, the Trust is
subject to the regulations of the Commodity Futures Trading Commission, an agency of
the United States (U.S.) government which regulates most aspects of the commodity
futures industry; rules of the National Futures Association, an industry
self-regulatory organization; and the requirements of the various commodity exchanges
where the Trust executes transactions. Additionally, the Trust is subject to the
requirements of futures commission merchants (brokers) and interbank market makers
through which the Trust trades.C.
    Method of ReportingThe Trusts financial statements are presented in accordance with U.S.
generally accepted accounting principles, which require the use of certain estimates
made by the Trusts management. Transactions are accounted for on the trade date.
Gains or losses are realized when contracts are liquidated. Unrealized gains and
losses on open contracts (the difference between contract trade price and market
price) are reported in the statement of financial condition as a net gain or loss, as
there exists a right of offset of unrealized gains or losses in accordance with
Financial Accounting Standards Board Interpretation No. 39  Offsetting of Amounts
Related to Certain Contracts. The market value of futures (exchange-traded)
contracts is determined by the various futures exchanges, and reflects the settlement
price for each contract as of the close of the last business day of the reporting
period. The market value of forward currency (non-exchange traded) contracts is
extrapolated on a forward basis from the spot prices quoted as of 5:00 P.M. (E.T.) of
the last business day of the reporting period. Any change in net unrealized gain or
loss from the preceding period is reported in the statement of operations. Brokerage
commissions and other trading fees paid directly to the broker are charged to expense
when contracts are opened. United States government securities are stated at cost
plus accrued interest, which approximates market value.For purposes of both financial reporting and calculation of redemption value, Net
Asset Value per unit is calculated by dividing Net Asset Value by the number of units
outstanding. -9-




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CAMPBELL ALTERNATIVE ASSET TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)    Note 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)  D.
    Income TaxesThe Trust prepares calendar year U.S. and applicable state information tax returns
and reports to the unitholders their allocable shares of the Trusts income, expenses
and trading gains or losses.E.
    Offering CostsCampbell & Company, Inc. (Campbell & Company) has incurred all costs in connection
with the initial and continuous offering of units of the Trust (offering costs).
Offering costs are charged to the Trust at a monthly rate of 1/12 of 0.9% (0.9%
annualized) of the Trusts month-end net asset value (as defined in the Amended and
Restated Declaration of Trust and Trust Agreement) until such amounts are fully
reimbursed. Such amounts are charged directly to unitholders capital. The Trust is
only liable for payment of offering costs on a monthly basis. At March 31, 2005, the
Trust reflects a liability in the statement of financial condition for offering
costs payable to Campbell & Company of $14,656.The offering costs for which Campbell & Company are being reimbursed relate to the
offering of units of the Trust to all unitholders except the 401(K) Plan. Therefore,
Campbell & Company rebates to the 401(K) Plan the offering costs charged to the
401(K) Plan. All such rebates are made by issuing additional units to the 401(K)
Plan.If the Trust terminates prior to completion of payment to Campbell & Company for the
unreimbursed offering costs incurred through the date of such termination, Campbell &
Company will not be entitled to any additional payments, and the Trust will have no
further obligation to Campbell & Company. At March 31, 2005, the amount of
unreimbursed offering costs incurred by Campbell & Company is $734,250.F.
    Foreign Currency TransactionsThe Trusts functional currency is the U.S. dollar; however, it transacts business in
currencies other than the U.S. dollar. Assets and liabilities denominated in
currencies other than the U.S. dollar are translated into U.S. dollars at the rates
in effect at the date of the statement of financial condition. Income and expense
items denominated in currencies other than the U.S. dollar are translated into U.S.
dollars at the rates in effect during the period. Gains and losses resulting from
the translation to U.S. dollars are reported in income currently. Note 2. MANAGING OWNER AND COMMODITY TRADING ADVISOR  The managing owner of the Trust is Campbell & Company, which
conducts and manages the business of the Trust. Campbell &
Company is also the commodity trading advisor of the Trust. The
Amended and Restated Declaration of Trust and Trust Agreement
requires Campbell & Company to maintain a capital account equal to
1% of the total capital accounts of the Trust. Additionally,
Campbell & Company is required by the Amended and Restated
Declaration of Trust and Trust Agreement to maintain a net worth
of not less than $1,000,000. -10-




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##### 



CAMPBELL ALTERNATIVE ASSET TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)    Note 2. MANAGING OWNER AND COMMODITY TRADING ADVISOR (CONTINUED)  The Trust pays a monthly brokerage fee of 1/12 of 2.85%
(2.85% annualized) of month-end net assets to Campbell &
Company and approximately $6 per round turn to the broker for
execution and clearing costs. Such costs are limited to 3.5%
of average month-end net assets per year. From the 2.85% fee,
a portion (0.35%) is used to compensate selling agents for
administrative services and a portion (2.5%) is retained by
Campbell & Company for trading and management services
rendered.Campbell & Company is also paid a performance fee equal to
20% of New Appreciation (as defined) calculated as of the end
of each calendar quarter and upon redemption of units.Campbell & Company rebates to the 401(K) Plan the brokerage
fee and the performance fee applicable to the 401(K) Plan.
All such rebates are made by issuing additional units to the
401(K) Plan. Note 3. TRUSTEE  The trustee of the Trust is Wachovia Trust Company, National
Association, a national banking association. The trustee has
delegated to the managing owner the duty and authority to
manage the business and affairs of the Trust and has only
nominal duties and liabilities with respect to the Trust. Note 4. DEPOSITS WITH BROKER  The Trust deposits assets with a broker subject to Commodity
Futures Trading Commission regulations and various exchange
and broker requirements. Margin requirements are satisfied
by the deposit of U.S. Treasury bills and cash with such
broker. The Trust earns interest income on its assets
deposited with the broker. Note 5. OPERATING EXPENSES  Operating expenses of the Trust are restricted by the Amended
and Restated Declaration of Trust and Trust Agreement to
0.40% per annum of the average month-end Net Asset Value of
the Trust. Note 6. SUBSCRIPTIONS, DISTRIBUTIONS AND REDEMPTIONS  Investments in the Trust are made by subscription agreement,
subject to acceptance by Campbell & Company.
The Trust is not required to make distributions, but may do
so at the sole discretion of Campbell & Company. A
unitholder may request and receive redemption of units owned,
subject to restrictions in the Amended and Restated
Declaration of Trust and Trust Agreement. Note 7. TRADING ACTIVITIES AND RELATED RISKS  The Trust engages in the speculative trading of U.S. and
foreign futures contracts and forward currency contracts
(collectively, derivatives). The Trust is exposed to both
market risk, the risk arising from
changes in the market value of the contracts, and credit risk, the risk of failure by
another party to perform according to the terms of a contract. -11-




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##### 



CAMPBELL ALTERNATIVE ASSET TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)    Note 7. TRADING ACTIVITIES AND RELATED RISKS (CONTINUED)  Purchase and sale of futures contracts requires margin deposits with the broker. Additional deposits
may be necessary for any loss on contract value. The Commodity Exchange Act requires a broker to
segregate all customer transactions and assets from such brokers proprietary activities. A
customers cash and other property (for example, U.S. Treasury bills) deposited with a broker are
considered commingled with all other customer funds subject to the
brokers segregation requirements. In the event of a brokers insolvency, recovery may be limited to a pro rata share of segregated
funds available. It is possible that the recovered amount could be less than total cash and other
property deposited.The amount of required margin and good faith deposits with the broker and interbank market makers
usually range from 10% to 30% of Net Asset Value. The market value of securities held to satisfy
such requirements at March 31, 2005 and December 31, 2004 was $29,790,206 and $23,205,469,
respectively, which equals 87% and 66% of Net Asset Value, respectively. The cash deposited with
interbank market makers at March 31, 2005 and December 31, 2004 was $2,407,508 and $10,212,526,
respectively, which equals 7% and 29% of Net Asset Value, respectively. These amounts are included
in cash.The Trust trades forward currency contracts in unregulated markets between principals and assumes the
risk of loss from counterparty nonperformance. Accordingly, the risks associated with forward
currency contracts are generally greater than those associated with exchange traded contracts because
of the greater risk of counterparty default. Additionally, the trading of forward currency contracts
typically involves delayed cash settlement.The Trust has a substantial portion of its assets on deposit with financial institutions. In the
event of a financial institutions insolvency, recovery of Trust assets on deposit may be limited to
account insurance or other protection afforded such deposits.
For derivatives, risks arise from changes in the market value of the
contracts. Theoretically, the Trust is exposed to a market risk equal to the notional contract value of futures and forward
currency contracts purchased and unlimited liability on such
contracts sold short.
The unrealized gain (loss) on open futures and forward currency contracts is comprised of the
following: Futures Contracts
    
    
    Forward Currency Contracts(exchange traded)
    
    
    (non-exchange traded)March 31,
    
    
    December 31,
    
    
    March 31,
    
    
    December 31,2005
    
    
    2004
    
    
    2005
    
    
    2004Gross unrealized gains
    
    $
    848,046
    
    
    $
    697,507
    
    
    $
    1,183,395
    
    
    $
    1,435,900Gross unrealized losses
    
    
    (225,074
    )
    
    
    (182,097
    )
    
    
    (1,555,849
    )
    
    
    (1,977,472
    )Net unrealized gain (loss)
    
    $
    622,972
    
    
    $
    515,410
    
    
    $
    (372,454
    )
    
    $
    (541,572
    )
 -12-




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##### 



CAMPBELL ALTERNATIVE ASSET TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)    Note 7. TRADING ACTIVITIES AND RELATED RISKS (CONTINUED)  Open contracts generally mature within three months; as of
March 31, 2005, the latest maturity date for open futures
contracts is December 2005, and the latest maturity date for
open forward currency contracts is June 2005. However, the
Trust intends to close all contracts prior to maturity.Campbell & Company has established procedures to actively monitor market risk and minimize
credit risk, although there can be no assurance that it will, in fact, succeed in doing
so. Campbell & Companys basic market risk control procedures consist of continuously
monitoring open positions, diversification of the portfolio and maintenance of a
margin-to-equity ratio that rarely exceeds 30%. Campbell & Company seeks to minimize
credit risk primarily by depositing and maintaining the Trusts assets at financial
institutions and brokers which Campbell & Company believes to be creditworthy. The
unitholders bear the risk of loss only to the extent of the market value of their
respective investments and, in certain specific circumstances, distributions and
redemptions received. Note 8. GUARANTEES  In the normal course of business, the Trust enters into contracts
and agreements that contain a variety of representations and
warranties and which provide general indemnifications. The
Trusts maximum exposure under these arrangements is unknown, as
this would involve future claims that may be made against the
Trust that have not yet occurred. The Trust expects the risk of
any future obligation under these indemnifications to be remote. Note 9. INTERIM FINANCIAL STATEMENTS  The statement of financial condition, including the condensed
schedule of investments, as of March 31, 2005 and the statements
of operations, cash flows and changes in unitholders capital (Net
Asset Value) for the three months ended March 31, 2005 and 2004
are unaudited. In the opinion of management, such financial
statements reflect all adjustments, which were of a normal and
recurring nature, necessary for a fair presentation of financial
position as of March 31, 2005, and the results of operations and
cash flows for the three months ended March 31, 2005 and 2004. -13-




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##### 



CAMPBELL ALTERNATIVE ASSET TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)    Note 10. FINANCIAL HIGHLIGHTS  The following information presents per unit operating performance data and other
supplemental financial data for the three months ended March 31, 2005 and 2004. This
information has been derived from information presented in the financial statements. Three months endedMarch 31,2005
    
    
    2004(Unaudited)
    
    
    (Unaudited)Per Unit Performance
(for a unit outstanding throughout the entire period)Net asset value per unit at beginning of period
    
    $
    1,501.39
    
    
    $
    1,377.63Income (loss) from operations:Total trading gains (losses) (1)
    
    
    (38.11
    )
    
    
    272.82Expenses net of interest income (1)
    
    
    (2.39
    )
    
    
    (60.17
    )Total income (loss) from operations
    
    
    (40.50
    )
    
    
    212.65Offering costs (1)
    
    
    (3.30
    )
    
    
    (3.53
    )Net asset value per unit at end of period
    
    $
    1,457.59
    
    
    $
    1,586.75Total Return(3)
    
    
    (2.92
    )%
    
    
    15.18
    %Supplemental DataRatios to average net asset value:Expenses prior to performance fee (4)
    
    
    (3.02
    )%
    
    
    (3.17
    )%Performance fee (3)
    
    
    0.00
    %
    
    
    (3.48
    )%Total expenses
    
    
    (3.02
    )%
    
    
    (6.65
    )%Expenses net of interest income (2), (4)
    
    
    (0.65
    )%
    
    
    (2.23
    )%
 Total returns are calculated based on the change in value of a unit during the period. An
individual unitholders total returns and ratios may vary from the above total returns and
ratios based on the timing of additions and redemptions.   (1)
    
    Expenses net of interest income per unit and offering costs per unit
are calculated by dividing the expenses net of interest income and offering costs by
the average number of units outstanding during the period. Total trading gains
(losses) is a balancing amount necessary to reconcile the change in net asset value
per unit with the other per unit information.(2)
    
    Excludes performance fee.(3)
    
    Not annualized.(4)
    
    Annualized. -14-




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##### 



Item 2. Managements Discussion and Analysis of Financial Condition and
Results of Operations Introduction The offering of Campbell Alternative Asset Trusts (the Trust) Units of Beneficial Interest
commenced on May 15, 2001, and the initial offering terminated on September 30, 2001 with proceeds
of $15,821,743. The continuing offering period commenced immediately after the termination of the
initial offering period; additional subscriptions totaling $27,902,674 have been accepted during
the continuing offering period as of March 31, 2005. Redemptions over the same time period total
$21,409,984. The Trust commenced operations on October 1, 2001. As of December 31, 2002, units are no longer offered to the public, but are offered exclusively for
sale to the Campbell & Company, Inc. 401(K) Plan. Critical Accounting Policies The preparation of financial statements in conformity with accounting principles generally accepted
in the United States requires management 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
period. Management believes that the estimates utilized in preparing the financial statements are
reasonable and prudent; however, actual results could differ from those estimates. The Trusts
significant accounting policies are described in detail in Note 1 of the Financial Statements. The Trust records all investments at fair value in its financial statements, with changes in fair
value reported as a component of realized and change in unrealized trading gain (loss) in the
Statements of Operations. Generally, fair values are based on market prices; however, in certain
circumstances, estimates are involved in determining fair value in the absence of an active market
closing price (e.g. forward contracts which are traded in the inter-bank market). Capital Resources The Trust will raise additional capital only through the sale of Units offered pursuant to the
continuing offering, and does not intend to raise any capital through borrowing. Due to the nature
of the Trusts business, it will make no capital expenditures and will have no capital assets which
are not operating capital or assets. Liquidity Most United States commodity exchanges limit fluctuations in futures contracts prices during a
single day by regulations referred to as daily price fluctuation limits or daily limits.
During a single trading day, no trades may be executed at prices beyond the daily limit. Once the
price of a futures contract has reached the daily limit for that day, positions in that contract
can neither be taken nor liquidated. Futures prices have occasionally moved the daily limit for
several consecutive days with little or no trading. Similar occurrences could prevent the Trust
from promptly liquidating unfavorable positions and subject the Trust to substantial losses which
could exceed the margin initially committed to such trades. In addition, even if futures prices
have not moved the daily limit, the Trust may not be able to execute futures trades at favorable prices if little trading in such contracts -15-




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##### 



is taking place. Other than these limitations on liquidity, which are inherent in the Trusts futures
trading operations, the Trusts assets are expected to be highly liquid. The entire offering proceeds, without deductions, will be credited to the Trusts bank and
brokerage accounts to engage in trading activities and as reserves for that trading. The Trust
meets its margin requirements by depositing U.S. government securities with the futures broker and
the over-the-counter counterparties. In this way, substantially all (i.e., 95% or more) of the
Trusts assets, whether used as margin for trading purposes or as reserves for such trading, can be
invested in U.S. government securities and time deposits with U.S. banks. Investors should note
that maintenance of the Trusts assets in U.S. government securities and banks does not reduce the
risk of loss from trading futures and forward contracts. The Trust receives all interest earned on
its assets. No other person shall receive any interest or other economic benefits from the deposit
of Trust assets. Approximately 10% to 30% of the Trusts assets normally are committed as required margin for
futures contracts and held by the futures broker, although the amount committed may vary
significantly. Such assets are maintained in the form of cash or U.S. Treasury bills in segregated
accounts with the futures broker pursuant to the Commodity Exchange Act and regulations thereunder.
Approximately 10% to 30% of the Trusts assets are deposited with over-the-counter counterparties
in order to initiate and maintain forward contracts. Such assets are not held in segregation or
otherwise regulated under the Commodity Exchange Act, unless such over-the-counter counterparty is
registered as a futures commission merchant. These assets are held either in U.S. government
securities or short-term time deposits with U.S.-regulated bank affiliates of the over-the-counter
counterparties. The remaining 40% to 80% of the Trusts assets will normally be invested in cash
equivalents, such as U.S. Treasury bills, and held by the futures broker or the over-the-counter
counterparties. The Trusts assets are not and will not be, directly or indirectly, commingled with the property of
any other person in violation of law or invested with or loaned to Campbell & Company or any
affiliated entities. Results of Operations The returns for the three months ending March 31, 2005 and 2004 were (2.92)% and 15.18%,
respectively. 2005 Of the 2005 year-to-date decrease of the 2.92%, approximately 2.46% was due to trading losses
(before commissions) and approximately 0.59% was due to interest income, offset by approximately
1.05% due to brokerage fees and operating cost and offering costs borne by the Trust. An analysis
of the 2.46% trading losses by sector is as follows: -16-




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##### 



Sector
    

    % Gain (Loss)Energy
    
    
    1.81
    %Interest Rates
    
    
    0.59Metals
    
    
    0.23Stock Indices
    
    
    (1.06
    )Currencies
    
    
    (4.03
    )(2.46
    )%
 The late December reversal of the major trends in currencies and equities persisted into
January leaving the Trust with negative performance for the month. The U.S. Dollar rallied
sharply in the first week of the month and held its new levels, which produced losses in the
currency sector. The post-election rally in equities gave way to selling in January, which
also produced losses for the Trust. The energy sector was positive as crude oil approached
$50 per barrel. The interest rate sector was also positive. The rally in the U.S. Dollar failed early in February and the Dollar ended the month lower.
However, the small gains on the Trusts U.S. Dollar short positions were offset by losses in
its non-Dollar currency pairs, resulting in losses in the currency sector overall. This was a
difficult interest rate environment with different pressures observable at different points
along the yield curve. Consequently, the Trusts short-term interest rate positions were
positive, but not profitable enough to offset the losses in long-term interest rates. The
stock index sector was the best performing sector for the month as the equity markets reversed
again and traded higher reclaiming a portion of the losses in January. Crude oils continued
rally also contributed profits for the month. The Trust had a small trading profit in the month of March. The gains for the month were in
the interest rate sector, as both short-term and long-term positions were profitable, and in
the energy sector where crude oil made a new high. The U.S. Dollar closed higher for the
month, reversing a long downtrend, which caused losses for the Trust. In addition, the Trust
incurred losses in its non-Dollar currency positions in March making the currency sector the
worst performing sector for the first quarter. The equity index markets also reversed and
ended the month lower which caused losses for the Trust. 2004 Of the 2004 year-to-date increase of the 15.18%, approximately 19.52% was due to trading gains
(before commissions) and approximately 0.23% was due to interest income, offset by approximately
4.57% due to brokerage fees, performance fees, and operating cost and offering costs borne by the
Trust. An analysis of the 19.52% trading gains by sector is as follows: -17-




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##### 



Sector
    
    % Gain (Loss)Interest Rates
    
    
    11.50
    %Currencies
    
    
    6.56Energy
    
    
    1.62Metals
    
    
    (0.12
    )Stock Indices
    
    
    (0.04
    )19.52
    %
 The year began with the Trust posting a positive return in January despite significant volatility
throughout the month. The weak U.S. Dollar continued to drive most global markets, including many
that had no apparent or direct connection to the Dollar, and in circumstances such as this, subtle
shifts in perception can have a disproportionate impact on prices. The Dollar traded lower
throughout the month, which was profitable for the Trusts currency positions. Much of the gain
reversed late in the month when markets reacted violently when the Federal Open Market Committee
(FOMC) slightly restated its short-term interest rate bias. The interest rate sector was slightly
positive despite also having suffered a reversal of earlier gains following the FOMC announcement.
The stock index and metals sectors had small losses for the month. The Trust had a strong positive return in February as the trends that were in place at the end of
January persisted. The continued concern over the record U.S. budget deficit and current account
imbalance kept downward pressure on the U.S. Dollar and resulted in strong gains in the currency
sector. The weak Dollar in return reinforced several related trends, including the continued rise
in energy prices, resulting in positive returns in the energy sector. The interest rates sector
was also profitable for the month as European interest rate instruments traded higher. All of the gain for the month of March came from the interest rate sector as U.S. Treasuries
continued to trade higher, while a weakening U.S. Dollar also contributed solid returns. The
energy sector was moderately positive, while the equity index sector was moderately negative. Off-Balance Sheet Risk The term off-balance sheet risk refers to an unrecorded potential liability that, even
though it does not appear on the balance sheet, may result in future obligation or loss.
The Trust trades in futures, forward and swap contracts and is therefore a party to financial
instruments with elements of off-balance sheet market and credit risk. In entering into these
contracts there exists a risk to the Trust, market risk, that such contracts may be
significantly influenced by market conditions, such as interest rate volatility, resulting in
such contracts being less valuable. If the markets should move against all of the futures
interests positions of the Trust at the same time, and if the Trusts trading advisor was
unable to offset futures interests positions of the Trust, the Trust could lose all of its
assets and the Unitholders would realize a 100% loss. Campbell & Company, Inc., the managing
owner (who also acts as trading advisor), minimizes market risk through real-time monitoring of open positions, diversification of the portfolio and maintenance of a
margin-to-equity ratio that rarely exceeds 30%. In addition to market risk, in entering into futures, forward and swap contracts there is a
credit risk that a counterparty will not be able to meet its obligations to the Trust. The
counterparty for futures -18-




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##### 



contracts traded in the United States and on most foreign exchanges
is the clearinghouse associated with such exchange. In general, clearinghouses are backed by
the corporate members of the clearinghouse who are required to share any financial burden
resulting from the non-performance by one of their members and, as such, should significantly
reduce this credit risk. In cases where the clearinghouse is not backed by the clearing
members, like some foreign exchanges, it is normally backed by a consortium of banks or other
financial institutions. In the case of forward and swap contracts, which are traded on the interbank market rather
than on exchanges, the counterparty is generally a single bank or other financial institution,
rather than a group of financial institutions; thus there may be a greater counterparty credit
risk. Campbell & Company trades for the Trust only with those counterparties which it
believes to be creditworthy. All positions of the Trust are valued each day on a
mark-to-market basis. There can be no assurance that any clearing member, clearinghouse or
other counterparty will be able to meet its obligations to the Trust. Disclosures About Certain Trading Activities that Include Non-Exchange Traded Contracts
Accounted for at Fair Value The Trust invests in futures and forward currency contracts. The market value of futures
(exchange-traded) contracts is determined by the various futures exchanges, and reflects the
settlement price for each contract as of the close of the last business day of the reporting
period. The market value of forward (non-exchange traded) contracts is extrapolated on a
forward basis from the spot prices quoted as of 5:00 P.M. (E.T.) of the last business day of
the reporting period. Item 3. Quantitative and Qualitative Disclosures About Market Risk Introduction Past Results Not Necessarily Indicative of Future Performance The Trust is a speculative commodity pool. The market sensitive instruments held by it
are acquired for speculative trading purposes, and all or a substantial amount of the Trusts
assets are subject to the risk of trading loss. Unlike an operating company, the risk of
market sensitive instruments is integral, not incidental, to the Trusts main line of
business. Market movements result in frequent changes in the fair market value of the Trusts open
positions and, consequently, in its earnings and cash flow. The Trusts market risk is
influenced by a wide variety of factors, including the level and volatility of exchange rates,
interest rates, equity price levels, the market value of financial instruments and contracts,
the diversification effects among the Trusts open positions and the liquidity of the markets
in which it trades. The Trust rapidly acquires and liquidates both long and short positions in a wide range
of different markets. Consequently, it is not possible to predict how a particular future
market
scenario will affect performance, and the Trusts past performance is not necessarily
indicative of its future results. Standard of Materiality -19-




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Materiality as used in this section, Quantitative and Qualitative Disclosures About
Market Risk, is based on an assessment of reasonably possible market movements and the
potential losses caused by such movements, taking into account the leverage, and multiplier
features of the Trusts market sensitive instruments. Quantifying the Trusts Trading Value at Risk Quantitative Forward-Looking Statements The following quantitative disclosures regarding the Trusts market risk exposures
contain forward-looking statements within the meaning of the safe harbor from civil
liability provided for such statements by the Private Securities Litigation Reform Act of 1995
(set forth in Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934). All quantitative disclosures in this section are deemed to be
forward-looking statements for purposes of the safe harbor, except for statements of
historical fact (such as the dollar amount of maintenance margin required for market risk
sensitive instruments held at the end of the reporting period). The Trusts risk exposure in the various market sectors traded is estimated in terms of
Value at Risk (VaR). The Trust estimates VaR using a model based upon historical simulation
(with a confidence level of 97.5%) which involves constructing a distribution of hypothetical
daily changes in the value of a trading portfolio. The VaR model takes into account linear
exposures to risks, including equity and commodity prices, interest rates, foreign exchange
rates, and correlation among these variables. The hypothetical changes in portfolio value are
based on daily percentage changes observed in key market indices or other market factors to
which the portfolio is sensitive. The one day 97.5% confidence level of the Trusts VaR
corresponds to the negative change in portfolio value that, based on observed market risk
factors, would have been exceeded once in 40 trading days or one day in 40. VaR typically
does not represent the worst case outcome. The Trust uses approximately one year of daily market data and revalues its portfolio for
each of the historical market moves that occurred over this time period. This generates a
probability distribution of daily simulated profit and loss outcomes. The VaR is the 2.5
percentile of this distribution. The VaR for a sector represents the one day downside risk for the aggregate exposures
associated with this sector. The aggregate VaR represents the VaR of the Trusts open
positions across all market sectors, and is less than the sum of the VaRs for all such market
sectors due to the diversification benefit across asset classes. The Trusts VaR computations are based on the risk representation of the underlying
benchmark for each instrument or contract and does not distinguish between exchange and
non-exchange dealer-based instruments. It is also not based on exchange and/or dealer-based
maintenance margin requirements. VaR models, including the Trusts, are continually evolving as trading portfolios become
more diverse and modeling techniques and systems capabilities improve. Please note that the
VaR model is used to numerically quantify market risk for historic reporting purposes only and
is not utilized by the Trust in its daily risk management activities. Please further note
that VaR as described above may not be comparable to similarly titled measures used by other
entities. -20-




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##### 



Because the business of the Trust is the speculative trading of futures, forwards and
options, the composition of the Trusts trading portfolio can change significantly over any
given time period, or even within a single trading day, which could positively or negatively
materially impact market risk as measured by VaR. The Trusts Trading Value at Risk in Different Market Sectors The following tables indicate the trading Value at Risk associated with the Trusts open
positions by market category as of March 31, 2005 and December 31, 2004 and the trading
gains/losses by market category for the three months ended March 31, 2005 and the year ended
December 31, 2004. March 31, 2005TradingMarket Sector
    
    Value at Risk*
    
    
    Gain/(Loss)**Currencies
    
    
    0.93
    %
    
    
    (4.03
    )%Long-Term Interest Rates
    
    
    0.49
    %
    
    
    (0.69
    )%Short-Term Interest Rates
    
    
    0.21
    %
    
    
    1.28
    %Stock Indices
    
    
    0.55
    %
    
    
    (1.06
    )%Energy
    
    
    0.24
    %
    
    
    1.81
    %Metals
    
    
    0.08
    %
    
    
    0.23
    %Aggregate/Total
    
    
    1.32
    %
    
    
    (2.46
    )%
   *-The VaR for a sector represents the one day downside risk for the aggregate exposures
associated with this sector. The aggregate VaR represents the VaR of the Trusts open
positions across all market sectors, and is less than the sum of the VaRs for all such market
sectors due to the diversification benefit across asset classes.** -Of the return for the three months ended March 31, 2005, approximately 2.46% was due to
trading losses (before commissions), approximately 0.59% was due interest income offset by
approximately 1.05% due to brokerage fees, management fees and operating costs borne by the
Trust giving a net return of (2.92)%. -21-




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##### 



December 31, 2004TradingMarket Sector
    
    Value at Risk*
    
    
    Gain/(Loss)**Currencies
    
    
    1.19
    %
    
    
    2.68
    %Long-Term Interest Rates
    
    
    0.82
    %
    
    
    10.57
    %Short-Term Interest Rates
    
    
    0.25
    %
    
    
    2.49
    %Stock Indices
    
    
    0.60
    %
    
    
    (1.85
    )%Energy
    
    
    0.18
    %
    
    
    2.22
    %Metals
    
    
    0.11
    %
    
    
    (0.58
    )%Aggregate/Total
    
    
    1.86
    %
    
    
    15.53
    %
   *-The VaR for a sector represents the one day downside risk for the aggregate exposures
associated with this sector. The aggregate VaR represents the VaR of the Trusts open
positions across all market sectors, and is less than the sum of the VaRs for all such market
sectors due to the diversification benefit across asset classes.**-Of the return for the year ended December 31, 2004, approximately 15.53% was due to
trading gains (before commissions) and approximately 1.26% was due to interest income, offset
by approximately 7.81% in brokerage fees, performance fees, and operating and offering costs
borne by the Trust giving a net return of 8.98%. Material Limitations oF Value at Risk as an Assessment of Market Risk The following limitations of VaR as an assessment of market risk should be noted:  1)
    Past changes in market risk factors will not always result in accurate predictions of
the distributions and correlations of future market movements;  2)
    Changes in portfolio value caused by market movements may differ from those of the VaR
model;  3)
    VaR results reflect past trading positions while future risk depends on future
positions;  4)
    VaR using a one day time horizon does not fully capture the market risk of positions
that cannot be liquidated or hedged within one day; and  5)
    The historical market risk factor data for VaR estimation may provide only limited
insight into losses that could be incurred under certain unusual market movements. VaR is not necessarily representative of historic risk nor should it be used to predict the
Trusts future financial performance or its ability to manage and monitor risk. There can be
no assurance that the Trusts actual losses on a particular day will not exceed the VaR
amounts indicated or that such losses will not occur more than once in 40 trading days. Non-Trading Risk The Trust has non-trading market risk on its foreign cash balances not needed for margin.
However, these balances (as well as the market risk they represent) are immaterial. The
Trust also has non-trading market risk as a result of investing a substantial portion of its
available assets in U.S. Treasury Bills. The market risk represented by these investments is
immaterial. -22-




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##### 



Qualitative Disclosures Regarding Primary Trading Risk Exposures The following qualitative disclosures regarding the Trusts market risk exposures 
except for (i) those disclosures that are statements of historical fact and (ii) the
descriptions of how the Trust manages its primary market risk exposures  constitute
forward-looking statements within the meaning of Section 27A of the Securities Act and Section
21E of the Securities Exchange Act. The Trusts primary market risk exposures as well as the
strategies used and to be used by Campbell & Company for managing such exposures are subject
to numerous uncertainties, contingencies and risks, any one of which could cause the actual
results of the Trusts risk controls to differ materially from the objectives of such
strategies. Government interventions, defaults and expropriations, illiquid markets, the
emergence of dominant fundamental factors, political upheavals, changes in historical price
relationships, an influx of new market participants, increased regulation and many other
factors could result in material losses as well as in material changes to the risk exposures
and the risk management strategies of the Trust. There can be no assurance that the Trusts
current market exposure and/or risk management strategies will not change materially or that
any such strategies will be effective in either the short- or long-term. Investors must be
prepared to lose all or substantially all of their investment in the Trust. The following were the primary trading risk exposures of the Trust as of March 31, 2005,
by market sector. Currencies Exchange rate risk is the principal market exposure of the Trust. The Trusts currency
exposure is to exchange rate fluctuations, primarily fluctuations which disrupt the historical
pricing relationships between different currencies and currency pairs. These fluctuations are
influenced by interest rate changes as well as political and general economic conditions. The
Trust trades in a large number of currencies, including cross-rates  i.e.,positions between
two currencies other than the U.S. Dollar. Campbell & Company does not anticipate that the
risk profile of the Trusts currency sector will change significantly in the future. Interest Rates Interest rate risk is a significant market exposure of the Trust. Interest rate
movements directly affect the price of the sovereign bond positions held by the Trust 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 materially impact
the Trusts profitability. The Trusts primary interest rate exposure is to interest rate
fluctuations in the United States and the other G-7 countries. Additionally, the Trust takes
positions in the government debt of Switzerland. Campbell & Company anticipates that G-7
interest rates will remain the primary market exposure of the Trust for the foreseeable
future. The changes in interest rates which have the most effect on
the Trust are changes in long-term, as opposed to short-term rates. Most of the
speculative positions held by the Trust are in medium- to long-term instruments.
Consequently, even a material change in short-term rates would have little effect on the Trust
were the medium- to long-term rates to remain steady. -23-




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Stock Indices The Trusts primary equity exposure is to equity price risk in the G-7 countries and
several other countries (Hong Kong, Spain and Taiwan). The stock index futures traded by the
Trust are by law limited to futures on broadly based indices. The Trust is primarily exposed
to the risk of adverse price trends or static markets in the major U.S., European and Japanese
indices. (Static markets would not cause major market changes but would make it difficult for
the Trust to avoid being whipsawed into numerous small losses.) Energy The Trusts primary energy market exposure is to gas and oil price movements, often
resulting from political developments and ongoing conflicts in the Middle East. Oil and gas
prices can be volatile and substantial profits and losses have been and are expected to
continue to be experienced in this market. Metals The Trusts metals market exposure is to fluctuations in the price of aluminum, copper,
gold, nickel and zinc. Qualitative Disclosures Regarding Non-Trading Risk Exposure The following were the only non-trading risk exposures of the Trust as of March 31, 2005. Foreign Currency Balances The Trusts primary foreign currency balances are in Japanese Yen, British Pounds and
Euros. The Trust controls the non-trading risk of these balances by regularly converting
these balances back into dollars (no less frequently than twice a month, and more frequently
if a particular foreign currency balance becomes unusually large). Treasury Bill Positions The Trusts only market exposure in instruments held other than for trading is in its
Treasury Bill portfolio. The Trust holds Treasury Bills (interest bearing and credit
risk-free) with durations no longer than six months. Violent fluctuations in prevailing
interest rates could cause immaterial mark-to-market losses on the Trusts Treasury Bills,
although substantially all of these short-term investments are held to maturity. Qualitative Disclosures Regarding Means of Managing Risk Exposure The means by which Campbell & Company attempts to manage the risk of the Trusts open
positions is essentially the same in all market categories traded. Campbell & Company applies
risk management policies to its trading which generally limit the total exposure that may be
taken per risk unit of assets under management. In addition, Campbell & Company follows
diversification guidelines (often formulated in terms of the balanced volatility between
markets and correlated groups), as well as imposing stop-loss points at which open positions
must be closed out. -24-




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Campbell & Company controls the risk of the Trusts non-trading instruments (Treasury
Bills held for cash management purposes) by limiting the duration of such instruments to no
more than six months. General The Trust is unaware of any (i) anticipated known demands, commitments or capital
expenditures; (ii) material trends, favorable or unfavorable, in its capital resources; or
(iii) trends or uncertainties that will have a material effect on operations. From time to
time, certain regulatory agencies have proposed increased margin requirements on futures
contracts. Because the Trust generally will use a small percentage of assets as margin, the
Trust does not believe that any increase in margin requirements, as proposed, will have a
material effect on the Trusts operations. Item 4. Controls and Procedures Campbell & Company, Inc., the managing owner of the Trust, with the participation of
the managing owners chief executive officer and chief financial officer, has evaluated the
effectiveness of the design and operation of its disclosure controls and procedures (as
defined in the Securities Exchange Act of 1934 Rules 13a-15(e) or 15d-15(e)) with respect to
the Trust as of the end of the period covered by this quarterly report. Based on their
evaluation, the chief executive officer and chief financial officer have concluded that these
disclosure controls and procedures are effective. There were no changes in the managing
owners internal control over financial reporting applicable to the Trust identified in
connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or
15d-15 that occurred during the last fiscal quarter that have materially affected, or is
reasonably likely to materially affect, internal control over financial reporting applicable
to the Trust. -25-




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PART II-OTHER INFORMATION Item 1. Legal Proceedings. None Item 2. Changes in Securities and Use of Proceeds None Item 3. Defaults Upon Senior Securities Not applicable. Item 4. Submissions of Matters to a vote of Security Holders. None Item 5. Other Information None Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits ExhibitNumber
    
    Description of Document31.01
    
    Certification of Bruce L. Cleland, Chief Executive Officer, pursuant to
Rules 13a-14 and 15d-14 of the Securites Exchange Act of 1934.31.02
    
    Certification of Theresa D. Becks, Chief Financial Officer,
pursuant to Rules 13a-14 and 15d-14 of the Securites Exchange Act of 1934.32.01
    
    Certification of Bruce L. Cleland, Chief Executive Officer,
pursuant to 18 U.S.C. Section 1350, as enacted by Section 906 of The
Sarbanes-Oxley Act of 2002.32.02
    
    Certification of Theresa D. Becks, Chief Financial Officer,
pursuant to 18 U.S.C. Section 1350, as enacted by Section 906 of The
Sarbanes-Oxley Act of 2002.
 (b) Reports of Form 8-K None -26-




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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. CAMPBELL ALTERNATIVE ASSET TRUST(Registrant)By:
    
    Campbell & Company, Inc.Managing OwnerDate: May 13, 2005
    
    
    
    By:
    
    /s/Theresa D. BecksTheresa D. BecksChief Financial
Officer/Treasurer/Director
 -27-




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EXHIBIT INDEX Exhibit Number
    
    Description of Document
    
    Page Number31.01
    
    Certification by Chief Executive Officer
    
    E 2- E331.02
    
    Certification by Chief Financial Officer
    
    E 4 E532.01
    
    Certification by Chief Executive Officer
    
    E 632.02
    
    Certification by Chief Financial Officer
    
    E 7
 E 1