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 endedMarch 31, 2008
 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)
 Baltimore, Maryland 21204
 (410) 296-3301
 þ o
  Large accelerated filer
o
    
    Accelerated filer
o
    
    Non-accelerated filer þ
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 o þ
 30




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##### 



PagePART I  FINANCIAL INFORMATIONItem 1. Financial StatementsCondensed Schedules of Investments as of March 31, 2008 (Unaudited)
and December 31, 2007
    
    
    3-6Statements of Financial Condition as of March 31, 2008 (Unaudited)
and December 31, 2007
    
    
    7Statements of Operations for the Three Months Ended
March 31, 2008 and 2007 (Unaudited)
    
    
    8Statements of Cash Flows for the Three Months Ended
March 31, 2008 and 2007 (Unaudited)
    
    
    9Statements of Changes in Unitholders Capital (Net Asset Value)
for the Three Months Ended March 31, 2008 and 2007 (Unaudited)
    
    
    10Financial Highlights for the Three Months Ended March 31, 2008 and
2007 (Unaudited)
    
    
    11Notes to Financial Statements (Unaudited)
    
    
    12Item 2. Managements Discussion and Analysis of Financial Condition and
Results of Operations
    
    
    18Item 3. Quantitative and Qualitative Disclosure About Market Risk
    
    
    22Item 4T. Controls and Procedures
    
    
    28PART II  OTHER INFORMATION
    
    
    29Item 6. Exhibits and Reports on Form 8-K
    
    
    29SIGNATURESCERTIFICATIONS




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##### 



UNITED STATES GOVERNMENT SECURITIES*Maturity
    
    Maturity
    
    
    
    
    
    
    
    % of NetFace Value
    
    Date
    
    Description
    
    
    
    Values ($)
    
    
    Asset Value$
    12,000,000
    
    
    
    05/08/2008
    
    
    U.S. Treasury Bills
    
    
    
    $
    11,975,703
    
    
    32.81%$
    10,000,000
    
    
    
    05/29/2008
    
    
    U.S. Treasury Bills
    
    
    
    $
    9,972,289
    
    
    27.32%$
    6,500,000
    
    
    
    04/03/2008
    
    
    U.S. Treasury Bills
    
    
    
    $
    6,498,866
    
    
    17.81%$
    4,000,000
    
    
    
    04/24/2008
    
    
    U.S. Treasury Bills
    
    
    
    $
    3,994,378
    
    
    10.94%Total United States government securities
(cost, including accrued interest,  $32,441,236)
    
    $
    32,441,236
    
    
    88.88%LONG FUTURES CONTRACTSDescriptionEnergy
    
    $
    (51,574
    )
    
    (0.14)%Metals
    
    $
    (8,339
    )
    
    (0.02)%Stock indices
    
    $
    13,830
    
    
    0.04%Short-term interest rates
    
    $
    (84,472
    )
    
    (0.23)%Long-term interest rates
    
    $
    (106,374
    )
    
    (0.29)%Total long futures contracts
    
    $
    (236,929
    )
    
    (0.64)%SHORT FUTURES CONTRACTSDescriptionEnergy
    
    $
    (12,480
    )
    
    (0.03)%Metals
    
    $
    7,267
    
    
    0.02%Stock indices
    
    $
    (227,558
    )
    
    (0.62)%Short-term interest rates
    
    $
    16,177
    
    
    0.04%Long-term interest rates
    
    $
    14,870
    
    
    0.04%Total short futures contracts
    
    $
    (201,724
    )
    
    (0.55)%Total futures contracts
    
    $
    (438,653
    )
    
    (1.19)%
 See Accompanying Notes to Financial Statements.
 -3-




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##### 



FORWARD CURRENCY CONTRACTS% of NetDescription
    
    Values ($)
    
    
    Asset ValueVarious long forward currency contracts
    
    $
    408,766
    
    
    
    1.12
    %Various short forward currency contracts
    
    $
    (215,786
    )
    
    
    (0.59
    )%Total forward currency contracts
    
    $
    192,980
    
    
    
    0.53
    %PURCHASED OPTIONS ON FORWARD CURRENCY CONTRACTSDescriptionPurchased options on forward currency
contracts (premiums paid  $14,039)
    
    $
    14,711
    
    
    
    0.04
    %WRITTEN OPTIONS ON FORWARD CURRENCY CONTRACTSDescriptionWritten options on forward currency
contracts (premiums received  $9,312)
    
    $
    (8,156
    )
    
    
    (0.02
    )%
 
 *
    
    Pledged as collateral for the trading of futures, forward and option positions. See Accompanying Notes to Financial Statements.
 -4-




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##### 



UNITED STATES GOVERNMENT
SECURITIES*Maturity
    
    Maturity
    
    
    
    
    
    
    
    % of NetFace Value
    
    Date
    
    Description
    
    
    
    Values ($)
    

    Asset Value$
    12,000,000
    
    
    
    02/07/2008
    
    
    U.S. Treasury Bills
    
    
    
    $
    11,953,750
    
    
    32.94%$
    10,000,000
    
    
    
    02/28/2008
    
    
    U.S. Treasury Bills
    
    
    
    $
    9,953,278
    
    
    27.43%$
    8,000,000
    
    
    
    01/03/2008
    
    
    U.S. Treasury Bills
    
    
    
    $
    7,998,289
    
    
    22.04%$
    4,000,000
    
    
    
    01/24/2008
    
    
    U.S. Treasury Bills
    
    
    
    $
    3,990,442
    
    
    11.00%Total United States government securities
(cost, including accrued interest,  $33,895,759)
    
    $
    33,895,759
    
    
    93.41%LONG FUTURES CONTRACTSDescriptionEnergy
    
    $
    89,355
    
    
    0.25%Metals
    
    $
    37,694
    
    
    0.10%Stock indices
    
    $
    105,504
    
    
    0.29%Short-term interest rates
    
    $
    46,265
    
    
    0.13%Long-term interest rates
    
    $
    37,652
    
    
    0.10%Total long futures contracts
    
    $
    316,470
    
    
    0.87%SHORT FUTURES CONTRACTSDescriptionEnergy
    
    $
    (72,904
    )
    
    (0.20)%Metals
    
    $
    (9,992
    )
    
    (0.03)%Stock indices
    
    $
    (4,422
    )
    
    (0.01)%Short-term interest rates
    
    $
    (48,238
    )
    
    (0.13)%Long-term interest rates
    
    $
    16,596
    
    
    0.05%Total short futures contracts
    
    $
    (118,960
    )
    
    (0.32)%Total futures contracts
    
    $
    197,510
    
    
    0.55%
 See Accompanying Notes to Financial Statements.
 -5-




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##### 



FORWARD CURRENCY CONTRACTS
 % of NetDescription
    
    Values ($)
    
    
    Asset ValueVarious long forward currency contracts
    
    $
    (604,943
    )
    
    
    (1.67
    )%Various short forward currency contracts
    
    $
    (205,499
    )
    
    
    (0.57
    )%Total forward currency contracts
    
    $
    (810,442
    )
    
    
    (2.24
    )%PURCHASED
OPTIONS ON FORWARD CURRENCY CONTRACTSDescriptionPurchased options on forward currency
contracts (premiums paid  $74,159)
    
    $
    50,330
    
    
    
    0.14
    %WRITTEN
OPTIONS ON FORWARD CURRENCY CONTRACTSDescriptionWritten options on forward currency
contracts (premiums received  $41,845)
    
    $
    (19,355
    )
    
    
    (0.05
    )%
 
 *
    
    Pledged as collateral for the trading of futures, forward and option positions. See Accompanying Notes to Financial Statements.
 -6-




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##### 



March 31,
    
    
    December 31,2008
    
    
    2007ASSETSEquity in broker trading accountsCash
    
    $
    4,751,076
    
    
    $
    2,538,672United States government securities
    
    
    28,446,858
    
    
    
    29,905,317Net unrealized gain (loss) on open futures contracts
    
    
    (438,653
    )
    
    
    197,510Total equity in broker trading accounts
    
    
    32,759,281
    
    
    
    32,641,499Cash
    
    
    360,326
    
    
    
    1,652,920United States government securities
    
    
    3,994,378
    
    
    
    3,990,442Options purchased, at fair value
(premiums paid  $14,039 and $74,159, respectively)
    
    
    14,711
    
    
    
    50,330Net unrealized gain (loss) on open forward currency contracts
    
    
    192,980
    
    
    
    (810,442
    )Interest receivable
    
    
    5,997
    
    
    
    7,894Subscriptions receivable
    
    
    0
    
    
    
    33,938Total assets
    
    $
    37,327,673
    
    
    $
    37,566,581LIABILITIESAccounts payable
    
    $
    48,166
    
    
    $
    38,549Brokerage fee
    
    
    33,303
    
    
    
    37,041Options written, at fair value
(premiums received  $9,312 and $41,845, respectively)
    
    
    8,156
    
    
    
    19,355Accrued commissions and other trading fees on open contracts
    
    
    6,021
    
    
    
    7,946Offering costs payable
    
    
    10,517
    
    
    
    11,697Redemptions payable
    
    
    724,912
    
    
    
    1,163,237Total liabilities
    
    
    831,075
    
    
    
    1,277,825UNITHOLDERS CAPITAL (Net Asset Value)Managing Owner  1,413.580 units outstanding at
March 31, 2008 and December 31, 2007
    
    
    2,302,326
    
    
    
    2,266,803Other Unitholders  20,994.536 and 21,216.063 units outstanding at
March 31, 2008 and December 31, 2007
    
    
    34,194,272
    
    
    
    34,021,953Total unitholders capital (Net Asset Value)
    
    
    36,496,598
    
    
    
    36,288,756Total liabilities and unitholders capital (Net Asset Value)
    
    $
    37,327,673
    
    
    $
    37,566,581
 See Accompanying Notes to Financial Statements.
 -7-




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##### 



Three Months EndedMarch 31,2008
    
    
    2007TRADING GAINS (LOSSES)Futures trading gains (losses)Realized
    
    $
    1,211,899
    
    
    $
    (222,454
    )Change in unrealized
    
    
    (636,163
    )
    
    
    (869,227
    )Brokerage commissions
    
    
    (14,055
    )
    
    
    (18,823
    )Net gain (loss) from futures trading
    
    
    561,681
    
    
    
    (1,110,504
    )Forward currency and options on forward
currency trading gains (losses)Realized
    
    
    (873,576
    )
    
    
    (287,918
    )Change in unrealized
    
    
    1,006,589
    
    
    
    (1,172,876
    )Brokerage commissions
    
    
    (1,687
    )
    
    
    (9,045
    )Net gain (loss) from forward currency and options on forward currency trading
    
    
    131,326
    
    
    
    (1,469,839
    )Total net trading gain (loss)
    
    
    693,007
    
    
    
    (2,580,343
    )INTEREST INCOME NET OF EXPENSESIncomeInterest income
    
    
    251,541
    
    
    
    506,222ExpensesBrokerage fee
    
    
    263,726
    
    
    
    299,823Performance fee
    
    
    0
    
    
    
    793Operating expenses
    
    
    21,202
    
    
    
    18,801Total expenses
    
    
    284,928
    
    
    
    319,417Interest income net of expenses
    
    
    (33,387
    )
    
    
    186,805NET INCOME (LOSS)
    
    $
    659,620
    
    
    $
    (2,393,538
    )NET INCOME (LOSS) PER MANAGING OWNER
AND OTHER UNITHOLDERS UNIT(based on weighted average number of units outstanding during
the period)
    
    $
    28.97
    
    
    $
    (101.57
    )INCREASE (DECREASE) IN NET ASSET VALUE PER MANAGING OWNER AND
OTHER UNITHOLDERS UNIT
    
    $
    25.13
    
    
    $
    (105.72
    )
 See Accompanying Notes to Financial Statements.
 -8-




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##### 



Three Months EndedMarch 31,2008
    
    
    2007Cash flows from (for) operating activitiesNet income (loss)
    
    $
    659,620
    
    
    $
    (2,393,538
    )Adjustments to reconcile net income (loss) to net cash from
(for) operating activitiesNet change in unrealized
    
    
    (370,426
    )
    
    
    2,042,103(Increase) decrease in option premiums paid
    
    
    60,120
    
    
    
    (7,880
    )Increase (decrease) in option premiums received
    
    
    (32,533
    )
    
    
    4,300(Increase) decrease in interest receivable
    
    
    1,897
    
    
    
    292Increase (decrease) in accounts payable and accrued expenses
    
    
    3,954
    
    
    
    (15,257
    )Net maturities (purchases) of investments in
United States government securities
    
    
    1,454,523
    
    
    
    (793,228
    )Net cash from (for) operating activities
    
    
    1,777,155
    
    
    
    (1,163,208
    )Cash flows from (for) financing activitiesAddition of units
    
    
    1,147,717
    
    
    
    954,824Redemption of units
    
    
    (1,920,601
    )
    
    
    (1,305,167
    )Offering costs paid
    
    
    (84,461
    )
    
    
    (96,536
    )Net cash from (for) financing activities
    
    
    (857,345
    )
    
    
    (446,879
    )Net (increase) decrease in cash
    
    
    919,810
    
    
    
    (1,610,087
    )CashBeginning of period
    
    
    4,191,592
    
    
    
    6,103,050End of period
    
    $
    5,111,402
    
    
    $
    4,492,963End of period cash consists of:Cash in broker trading accounts
    
    $
    4,751,076
    
    
    $
    2,807,228Cash
    
    
    360,326
    
    
    
    1,685,735Total end of period cash
    
    $
    5,111,402
    
    
    $
    4,492,963
 See Accompanying Notes to Financial Statements.
 -9-




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##### 



Unitholders CapitalManaging Owner
    
    
    Other Unitholders
    
    
    TotalUnits
    
    
    Amount
    
    
    Units
    
    
    Amount
    
    
    Units
    
    
    AmountThree Months Ended March 31, 2008Balances at December 31, 2007
    
    
    1,413.580
    
    
    $
    2,266,803
    
    
    
    21,216.063
    
    
    $
    34,021,953
    
    
    
    22,629.643
    
    
    $
    36,288,756Net income (loss) for the three
months ended
March 31, 2008
    
    
    
    
    
    
    40,694
    
    
    
    
    
    
    
    618,926
    
    
    
    
    
    
    
    659,620Additions
    
    
    0.000
    
    
    
    0
    
    
    
    691.119
    
    
    
    1,113,779
    
    
    
    691.119
    
    
    
    1,113,779Redemptions
    
    
    0.000
    
    
    
    0
    
    
    
    (912.646
    )
    
    
    (1,482,276
    )
    
    
    (912.646
    )
    
    
    (1,482,276
    )Offering costs
    
    
    
    
    
    
    (5,171
    )
    
    
    
    
    
    
    (78,110
    )
    
    
    
    
    
    
    (83,281
    )Balances at March 31, 2008
    
    
    1,413.580
    
    
    $
    2,302,326
    
    
    
    20,994.536
    
    
    $
    34,194,272
    
    
    
    22,408.116
    
    
    $
    36,496,598Three Months Ended March 31, 2007Balances at December 31, 2006
    
    
    1,413.580
    
    
    $
    2,566,397
    
    
    
    22,200.336
    
    
    $
    40,305,318
    
    
    
    23,613.916
    
    
    $
    42,871,715Net income (loss) for the three
months ended
March 31, 2007
    
    
    
    
    
    
    (143,765
    )
    
    
    
    
    
    
    (2,249,773
    )
    
    
    
    
    
    
    (2,393,538
    )Additions
    
    
    0.000
    
    
    
    0
    
    
    
    456.793
    
    
    
    808,933
    
    
    
    456.793
    
    
    
    808,933Redemptions
    
    
    0.000
    
    
    
    0
    
    
    
    (649.288
    )
    
    
    (1,146,150
    )
    
    
    (649.288
    )
    
    
    (1,146,150
    )Offering costs
    
    
    
    
    
    
    (5,679
    )
    
    
    
    
    
    
    (89,002
    )
    
    
    
    
    
    
    (94,681
    )Balances at March 31, 2007
    
    
    1,413.580
    
    
    $
    2,416,953
    
    
    
    22,007.841
    
    
    $
    37,629,326
    
    
    
    23,421.421
    
    
    $
    40,046,279
 Net Asset Value per Managing Owner and Other Unitholders UnitMarch 31, 2008
    
    
    
    
    December 31, 2007
    
    
    March 31, 2007
    
    
    December 31, 2006$
    1,628.72
    
    
    
    
    $
    1,603.59
    
    
    $
    1,709.81
    
    
    $
    1,815.53
 See Accompanying Notes to Financial Statements.
 -10-




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##### 



Three Months EndedMarch 31,2008
    
    
    2007Per Unit Performance(for a unit outstanding throughout the entire period)Net asset value per unit at beginning of period
    
    $
    1,603.59
    
    
    $
    1,815.53Income (loss) from operations:Total net trading gains (losses) (1)
    
    
    30.26
    
    
    
    (109.63
    )Interest income net of expenses (1)
    
    
    (1.47
    )
    
    
    7.93Total net income (loss) from operations
    
    
    28.79
    
    
    
    (101.70
    )Offering costs(1)
    
    
    (3.66
    )
    
    
    (4.02
    )Net asset value per unit at end of period
    
    $
    1,628.72
    
    
    $
    1,709.81Total Return(3)
    
    
    1.57
    %
    
    
    (5.82
    )%Supplemental DataRatios to average net asset value:Expenses prior to performance fee (4)
    
    
    3.10
    %
    
    
    3.03
    %Performance fee (3)
    
    
    0.00
    %
    
    
    0.00
    %Total expenses
    
    
    3.10
    %
    
    
    3.03
    %Interest income net of expenses (2),(4),(5)
    
    
    (0.36
    )%
    
    
    1.78
    %
 Total returns are calculated based on the change in value of a unit during the period. An
individual partners total returns and ratios may vary from the above total returns and ratios
based on the timing of additions and redemptions.
 
 (1)
    
    Interest income net of expenses per unit and offering costs per unit are calculated by
dividing the interest income net of expenses and offering costs by the
average number of units outstanding during the period. Total net 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(5)
    
    Interest income net of expenses is shown as a positive amount when interest income exceeds
expenses excluding the performance fee for the period and is shown
as a negative amount when expenses excluding performance fee exceed interest income for the
period. See Accompanying Notes to Financial Statements.
 -11-




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##### 



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, forward currency contracts and options on 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
31,2008 and December 31,2007, the 401(K) Plan held approximately 64% and 60% of the Trusts
outstanding units, respectively.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 accounting principles
generally accepted in the United States of America, which may require the use of certain
estimates made by the Trusts management. Actual results may differ from these estimates.
Investment 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 was
extrapolated on a forward basis from the spot prices quoted as of 3:00 P.M. (E.T.) of the
last business day of the reporting period or based on the market value of its
exchange-traded equivalent.The market value of option (non-exchange traded) contracts is calculated by applying an
industry-standard adaptation of the Black-Scholes options valuation model to foreign
currency options, using as input, the spot prices, interest rates and option implied
volatilities quoted as of 3:00 P.M. (E.T.) on 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.When the Trust writes an option, an amount equal to the premium received by the Trust is
reflected as an asset and an equivalent liability. The amount of the liability is
subsequently marked-to-market to reflect the current market value of option written.
Brokerage commissions include other trading fees and 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 outstanding
units.
 -12-




---



##### 



Fair Value at March 31 , 2008Description
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TotalInvestmentsU.S. Treasury Bills
    
    $
    32,441,236
    
    
    $
    0
    
    
    $
    0
    
    
    $
    32,441,236Other Financial InstrumentsExchange-traded futures contracts
    
    
    (438,653
    )
    
    
    0
    
    
    
    0
    
    
    
    (438,653
    )Forward currency contracts
    
    
    0
    
    
    
    192,980
    
    
    
    0
    
    
    
    192,980Options purchased
    
    
    0
    
    
    
    14,711
    
    
    
    0
    
    
    
    14,711Options written
    
    
    0
    
    
    
    (8,156
    )
    
    
    0
    
    
    
    (8,156
    )Total
    
    $
    32,002,583
    
    
    $
    199,535
    
    
    $
    0
    
    
    $
    32,202,118
 -13-




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##### 



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. No provision for income taxes has been made in the accompanying
financial statements as each unitholder is individually responsible for reporting income or
loss based on such unitholders respective share of the Trusts income and expenses as
reported for income tax purposes.Management has evaluated the application of Financial Accounting Standards Board (FASB)
Interpretation No. 48, Accounting for Uncertainty in Income Taxes  an interpretation of
FASB Statement No. 109 (FIN 48), to the Trust, and has determined that the adoption of FIN
48 did not have a material impact on the Trusts financial statements. The Trust files
federal and state tax returns. The 2004 through 2007 tax years generally remain subject to
examination by the U.S. federal and most state tax authorities.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, 2008 and December 31, 2007, the Trust reflects a liability in the
statement of financial condition for offering costs payable to Campbell & Company of $10,517
and $11,697, respectively.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, 2008 and December 31, 2007, the amount of
unreimbursed offering costs incurred by Campbell & Company is $202,476 and $235,984,
respectively.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.G.
    
    Recently Issued Accounting PronouncementsIn March 2008, the Financial Accounting Standards Board (FASB) issued Statement of Financial
Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging
Activities  an amendment of FASB Statement No. 133 (SFAS 161). SFAS 161 establishes,
amoung other things, the disclosure requirements for derivative instruments and for hedging
activities. SFAS 161 is effective for financial statements issued for fiscal years beginning
after November 15, 2008, and interim periods within those fiscal years. The impact on the
Trusts financial statement disclosures, if any, is currently being assessed.
 -14-




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##### 



Note 2. MANAGING OWNER AND COMMODITY TRADING ADVISOR
     Note 3. TRUSTEE
  Note 4. DEPOSITS WITH BROKER
  Note 5. OPERATING EXPENSES
  Note 6. SUBSCRIPTIONS, DISTRIBUTIONS AND REDEMPTIONS
   -15-




---



##### 



Note 7. TRADING ACTIVITIES AND RELATED RISKS
        Forward Currency andOptions on ForwardFutures Contracts
    
    
    Currency Contracts(exchange traded)
    
    
    (non-exchange traded)March 31, 2008
    
    
    December 31, 2007
    
    
    March 31, 2008
    
    
    December 31, 2007Gross unrealized gains
    
    $
    330,495
    
    
    $
    470,224
    
    
    $
    1,370,609
    
    
    $
    742,233Gross unrealized losses
    
    
    (769,148
    )
    
    
    (272,714
    )
    
    
    (1,175,801
    )
    
    
    (1,554,014
    )Net unrealized gain (loss)
    
    $
    (438,653
    )
    
    $
    197,510
    
    
    $
    194,808
    
    
    $
    (811,781
    )
 -16-




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##### 



Note 8. INDEMNIFICATIONS
  Note 9. INTERIM FINANCIAL STATEMENTS
  -17-




---



##### 



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
           -18-




---



##### 



i.e.
   Results of Operations
  2008
  -19-




---



##### 



Sector
    
    % Gain (Loss)Stock Indices
    
    
    2.85
    %Currencies
    
    
    0.27Commodities
    
    
    (0.10
    )Interest Rates
    
    
    (1.09
    )1.93
    %
    -20-




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##### 



2007
  Sector
    
    % Gain (Loss)Stock Indices
    
    
    0.60
    %Commodities
    
    
    (1.20
    )Interest Rates
    
    
    (2.01
    )Currencies
    
    
    (3.36
    )(5.97
    )%
  Off-Balance Sheet Risk
  -21-




---



##### 



Disclosures About Certain Trading Activities that Include Non-Exchange Traded Contracts
Accounted for at Fair Value
  
 Item 3. Quantitative and Qualitative Disclosures About Market Risk
 Introduction
 Past Results Not Necessarily Indicative of Future Performance
   -22-




---



##### 



Standard of Materiality
  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).
     -23-




---



##### 



The Trusts Trading Value at Risk in Different Market Sectors
  March 31, 2008TradingMarket Sector
    
    Value at Risk*
    
    Gain/(Loss)**Interest Rates
    
    
    0.86
    %
    
    
    (1.09
    )%Currencies
    
    
    0.85
    %
    
    
    0.27
    %Stock Indices
    
    
    0.82
    %
    
    
    2.85
    %Commodities
    
    
    0.16
    %
    
    
    (0.10
    )%Aggregate/Total
    
    
    1.41
    %
    
    
    1.93
    %
 
 * -
 ** -
 -24-




---



##### 



December 31, 2007TradingMarket Sector
    
    Value at Risk*
    
    Gain/(Loss)**Currencies
    
    
    1.48
    %
    
    
    (7.17
    )%Stock Indices
    
    
    0.51
    %
    
    
    (2.53
    )%Interest Rates
    
    
    0.42
    %
    
    
    1.10
    %Commodities
    
    
    0.22
    %
    
    
    (2.72
    )%Aggregate/Total
    
    
    1.72
    %
    
    
    (11.32
    )%
 
 * -
 **
-
 Material Limitations of Value at Risk as an Assessment of Market Risk
  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; and5)
    
    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.
  Non-Trading Risk
  -25-




---



##### 



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.
  Currencies
 i.e.,
 Interest Rates
  Stock Indices
  -26-




---



##### 



Energy
  Metals
  Qualitative Disclosures Regarding Non-Trading Risk Exposure
  Foreign Currency Balances
  Treasury Bill Positions
  Qualitative Disclosures Regarding Means of Managing Risk Exposure
  -27-




---



##### 



General
  
 Item 4T. Controls and Procedures
  -28-




---



##### 



PART II-OTHER INFORMATION
 Item 1. Legal Proceedings.
  Item 2. Changes in Securities and Use of Proceeds
  Item 3. Defaults Upon Senior Securities
  Item 4. Submissions of Matters to a vote of Security Holders.
  Item 5. Other Information
  
 Item 6. Exhibits and Reports on Form 8-K.
 (a)
    
    Exhibits
 ExhibitNumber
    
    Description of Document31.01
    
    Certification of Theresa D. Becks, Chief Executive Officer,
pursuant to Rules 13a-14 and 15d-14 of the Securites Exchange Act of 1934.31.02
    
    Certification of Gregory T. Donovan, Senior Vice President of
Accounting and Finance, pursuant to Rules 13a-14 and 15d-14 of the Securites
Exchange Act of 1934.32.01
    
    Certification of Theresa D. Becks, 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 Gregory T. Donovan, Senior Vice President of
Accounting and Finance, 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-KNone
 -29-




---



##### 



SIGNATURES
  CAMPBELL ALTERNATIVE ASSET TRUST
(Registrant)By:
    
    Campbell & Company, Inc.Managing OwnerDate: May 15, 2008
    
    
    
    By:
    
    /s/ Theresa D. Becks

Theresa D. BecksChief Executive Officer
 -30-




---



##### 



EXHIBIT
INDEX
 PageExhibit Number
    
    Description of Document
    
    Number31.01
    
    Certification by Chief Executive Officer
    
    E 2  E 331.02
    
    Certification by Senior Vice President of Accounting and Finance
    
    E 4  E 532.01
    
    Certification by Chief Executive Officer
    
    E 632.02
    
    Certification by Senior Vice President of Accounting and Finance
    
    E 7
 E 1