##### 



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 June 30, 2007
 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
  o o þ
  o þ
   30




---



##### 



PagePART I  FINANCIAL INFORMATIONItem 1. Financial StatementsStatements of Financial Condition as of June 30, 2007 (Unaudited)
and December 31, 2006
    
    
    3Condensed Schedules of Investments as of June 30, 2007 (Unaudited)
and December 31, 2006
    
    
    4-5Statements of Operations for the Three Months and Six Months Ended
June 30, 2007 and 2006 (Unaudited)
    
    
    6Statements of Cash Flows for the Six Months Ended
June 30, 2007 and 2006 (Unaudited)
    
    
    7Statements of Changes in Unitholders Capital (Net Asset Value)
for the Six Months Ended June 30, 2007 and 2006 (Unaudited)
    
    
    8Notes to Financial Statements (Unaudited)
    
    
    9-15Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    16-21Item 3. Quantitative and Qualitative Disclosure About Market Risk
    
    
    21-27Item 4. Controls and Procedures
    
    
    27PART II  OTHER INFORMATION
    
    
    28Item 6. Exhibits and Reports on Form 8-K
    
    
    28SIGNATURESCERTIFICATIONS




---



##### 



CAMPBELL ALTERNATIVE ASSET TRUST
STATEMENTS OF FINANCIAL CONDITION
 June 30,
    
    
    December 31,2007
    
    
    2006ASSETSEquity in broker trading accountsCash
    
    $
    6,185,671
    
    
    $
    3,198,569United States government securities
    
    
    30,862,814
    
    
    
    30,062,122Net unrealized gain on open futures contracts
    
    
    835,268
    
    
    
    1,082,948Total equity in broker trading accounts
    
    
    37,883,753
    
    
    
    34,343,639Cash
    
    
    1,219,314
    
    
    
    2,904,481Options purchased, at fair value
(premiums paid, $66,270 and $29,775)
    
    
    72,792
    
    
    
    35,454United States government securities
    
    
    4,485,500
    
    
    
    4,485,165Net unrealized gain on open forward currency contracts
    
    
    1,238,081
    
    
    
    1,416,954Interest receivable
    
    
    31,169
    
    
    
    20,552Subscriptions receivable
    
    
    102,931
    
    
    
    412,864Prepaid expenses
    
    
    7,500
    
    
    
    0Total assets
    
    $
    45,041,040
    
    
    $
    43,619,109LIABILITIESAccounts payable
    
    $
    30,056
    
    
    $
    67,122Brokerage fee
    
    
    47,136
    
    
    
    50,122Options written, at fair value
(premiums received, $37,962 and $17,336)
    
    
    39,184
    
    
    
    16,186Accrued commissions and other trading fees
on open contracts
    
    
    19,617
    
    
    
    14,948Performance fee payable
    
    
    119,264
    
    
    
    0Offering costs payable
    
    
    14,885
    
    
    
    15,828Redemptions payable
    
    
    296,530
    
    
    
    583,188Total liabilities
    
    
    566,672
    
    
    
    747,394UNITHOLDERS CAPITAL (Net Asset Value)Managing Operator  1,413.580 units outstanding
at June 30, 2007 and December 31, 2006
    
    
    2,719,615
    
    
    
    2,566,397Other Unitholders  21,702.903 and 22,200.336
units outstanding at June 30, 2007 and
December 31, 2006
    
    
    41,754,753
    
    
    
    40,305,318Total unitholders capital
(Net Asset Value)
    
    
    44,474,368
    
    
    
    42,871,715Total liabilities and unitholders capital
(Net Asset Value)
    
    $
    45,041,040
    
    
    $
    43,619,109
  - 3 -




---



##### 



CAMPBELL ALTERNATIVE ASSET TRUST
CONDENSED SCHEDULE OF INVESTMENTS
 UNITED STATES GOVERNMENT SECURITIES*
 % of NetFace Value
    
    
    Maturity Date
    
    Description
    
    Value
    
    
    Asset Value$
    13,000,000
    
    
    08/02/2007
    
    U.S. Treasury Bills
    
    $
    12,945,111
    
    
    
    29.11
    %$
    10,000,000
    
    
    08/30/2007
    
    U.S. Treasury Bills
    
    
    9,922,250
    
    
    
    22.31
    %$
    8,000,000
    
    
    07/05/2007
    
    U.S. Treasury Bills
    
    
    7,995,453
    
    
    
    17.98
    %$
    4,500,000
    
    
    07/26/2007
    
    U.S. Treasury Bills
    
    
    4,485,500
    
    
    
    10.08
    %Total United States government securities
(cost, including accrued interest,  $35,348,314)
    
    $
    35,348,314
    
    
    
    79.48
    %
 LONG FUTURES CONTRACTS
 % of NetDescription
    
    Value
    
    
    Asset ValueMetals
    
    $
    (316
    )
    
    
    (0.00
    )%Stock indices
    
    
    175,206
    
    
    
    0.39
    %Short-term interest rates
    
    
    (936
    )
    
    
    (0.00
    )%Long-term interest rates
    
    
    (12,918
    )
    
    
    (0.03
    )%Total long futures contracts
    
    $
    161,036
    
    
    
    0.36
    %
 SHORT FUTURES CONTRACTS
 % of NetDescription
    
    Value
    
    
    Asset ValueEnergy
    
    $
    (34,261
    )
    
    
    (0.08
    )%Metals
    
    
    6,979
    
    
    
    0.02
    %Stock indices
    
    
    1,251
    
    
    
    0.00
    %Short-term interest rates
    
    
    17,476
    
    
    
    0.04
    %Long-term interest rates
    
    
    682,787
    
    
    
    1.54
    %Total short futures contracts
    
    $
    674,232
    
    
    
    1.52
    %Total futures contracts
    
    $
    835,268
    
    
    
    1.88
    %
 FORWARD CURRENCY CONTRACTS
 % of NetDescription
    
    Value
    
    
    Asset ValueVarious long forward currency contracts
    
    $
    1,873,070
    
    
    
    4.21
    %Various short forward currency contracts
    
    
    (634,989
    )
    
    
    (1.43)
    %Total forward currency contracts
    
    $
    1,238,081
    
    
    
    2.78
    %
 PURCHASED OPTIONS ON FORWARD CURRENCY CONTRACTS
 % of NetDescription
    
    Value
    
    
    Asset ValuePurchased options on forward currency contracts
(premiums paid  $66,270)
    
    $
    72,792
    
    
    
    0.16
    %
 WRITTEN OPTIONS ON FORWARD CURRENCY CONTRACTS
 % of NetDescription
    
    Value
    
    
    Asset ValueWritten options on forward currency contracts
(premiums received  $37,962)
    
    $
    (39,184
    )
    
    
    (0.09
    )%
 
 *
    
    - Pledged as collateral for the trading of futures, forward and options positions.  - 4 -




---



##### 



CAMPBELL ALTERNATIVE ASSET TRUST
CONDENSED SCHEDULE OF INVESTMENTS
 UNITED STATES GOVERNMENT SECURITIES*
 % of NetFace Value
    
    
    Maturity Date
    
    Description
    
    Value
    
    
    Asset Value$
    13,000,000
    
    
    02/01/2007
    
    U.S. Treasury Bills
    
    $
    12,944,980
    
    
    
    30.19
    %$
    10,000,000
    
    
    03/01/2007
    
    U.S. Treasury Bills
    
    
    9,920,022
    
    
    
    23.14
    %$
    7,200,000
    
    
    01/04/2007
    
    U.S. Treasury Bills
    
    
    7,197,120
    
    
    
    16.79
    %$
    4,500,000
    
    
    01/25/2007
    
    U.S. Treasury Bills
    
    
    4,485,165
    
    
    
    10.46
    %Total United States government securities
(cost, including accrued interest,  $34,547,287)
    
    $
    34,547,287
    
    
    
    80.58
    %
 LONG FUTURES CONTRACTS
 % of NetDescription
    
    Value
    
    
    Asset ValueEnergy
    
    $
    (405,662
    )
    
    
    (0.94
    )%Metals
    
    
    (68,317
    )
    
    
    (0.16
    )%Stock indices
    
    
    451,110
    
    
    
    1.05
    %Long-term interest rates
    
    
    (47,968
    )
    
    
    (0.11
    )%Total long futures contracts
    
    $
    (70,837
    )
    
    
    (0.16
    )%
 SHORT FUTURES CONTRACTS
 % of NetDescription
    
    Value
    
    
    Asset ValueEnergy
    
    $
    8,960
    
    
    
    0.02
    %Metals
    
    
    35,389
    
    
    
    0.08
    %Short-term interest rates
    
    
    347,969
    
    
    
    0.81
    %Long-term interest rates
    
    
    761,467
    
    
    
    1.78
    %Total short futures contracts
    
    $
    1,153,785
    
    
    
    2.69
    %Total futures contracts
    
    $
    1,082,948
    
    
    
    2.53
    %
 FORWARD CURRENCY CONTRACTS
 % of NetDescription
    
    Value
    
    
    Asset ValueVarious long forward currency contracts
    
    $
    (792,936
    )
    
    
    (1.84
    )%Various short forward currency contracts
    
    
    2,209,890
    
    
    
    5.15
    %Total forward currency contracts
    
    $
    1,416,954
    
    
    
    3.31
    %
 PURCHASED OPTIONS ON FORWARD CURRENCY CONTRACTS
 % of NetDescription
    
    Value
    
    
    Asset ValuePurchased options on forward currency contracts
(premiums paid  $29,775)
    
    $
    35,454
    
    
    
    0.08
    %
 WRITTEN OPTIONS ON FORWARD CURRENCY CONTRACTS
 % of NetDescription
    
    Value
    
    
    Asset ValueWritten options on forward currency contracts
(premiums received  $17,336)
    
    $
    (16,186
    )
    
    
    (0.03
    )%
 
 *
    
    - Pledged as collateral for the trading of futures, forward and options positions.  - 5 -




---



##### 



CAMPBELL ALTERNATIVE ASSET TRUST
STATEMENTS OF OPERATIONS
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006TRADING GAINS (LOSSES)Futures trading gains (losses)Realized
    
    $
    3,519,671
    
    
    $
    1,622,726
    
    
    $
    3,297,217
    
    
    $
    2,155,144Change in unrealized
    
    
    621,547
    
    
    
    (750,639
    )
    
    
    (247,680
    )
    
    
    593,969Brokerage commissions
    
    
    (27,215
    )
    
    
    (19,322
    )
    
    
    (46,038
    )
    
    
    (40,674
    )Net gain from futures trading
    
    
    4,114,003
    
    
    
    852,765
    
    
    
    3,003,499
    
    
    
    2,708,439Forward currency and options on forward
currency trading gains (losses)Realized
    
    
    71,838
    
    
    
    (2,363,950
    )
    
    
    (216,080
    )
    
    
    (3,723,157
    )Change in unrealized
    
    
    992,474
    
    
    
    (801,602
    )
    
    
    (180,402
    )
    
    
    960,193Brokerage commissions
    
    
    (10,194
    )
    
    
    (5,146
    )
    
    
    (19,239
    )
    
    
    (8,742
    )Net gain (loss) from forward
currency and options on forward
currency trading
    
    
    1,054,118
    
    
    
    (3,170,698
    )
    
    
    (415,721
    )
    
    
    (2,771,706
    )Total net trading gains (losses)
    
    
    5,168,121
    
    
    
    (2,317,933
    )
    
    
    2,587,778
    
    
    
    (63,267
    )INTEREST INCOME OF EXPENSESIncomeInterest income
    
    
    516,061
    
    
    
    485,796
    
    
    
    1,022,283
    
    
    
    921,059ExpensesBrokerage fee
    
    
    306,670
    
    
    
    293,767
    
    
    
    606,493
    
    
    
    590,231Performance fee
    
    
    269,374
    
    
    
    0
    
    
    
    270,167
    
    
    
    370,369Operating expenses
    
    
    34,881
    
    
    
    33,131
    
    
    
    53,682
    
    
    
    58,643Total expenses
    
    
    610,925
    
    
    
    326,898
    
    
    
    930,342
    
    
    
    1,019,243Interest income net of expenses
    
    
    (94,864
    )
    
    
    158,898
    
    
    
    91,941
    
    
    
    (98,184
    )NET INCOME (LOSS)
    
    $
    5,073,257
    
    
    $
    (2,159,035
    )
    
    $
    2,679,719
    
    
    $
    (161,451
    )NET INCOME (LOSS) PER MANAGING
OWNER AND OTHER UNITHOLDERS
UNIT(based on weighted average number
of units outstanding during the period)
    
    $
    218.05
    
    
    $
    (89.15
    )
    
    $
    114.44
    
    
    $
    (6.72
    )INCREASE (DECREASE) IN NET ASSET
VALUE PER MANAGING OWNER
AND OTHER UNITHOLDERS UNIT
    
    $
    214.11
    
    
    $
    (93.11
    )
    
    $
    108.39
    
    
    $
    (13.08
    )
  - 6 -




---



##### 



CAMPBELL ALTERNATIVE ASSET TRUST
STATEMENTS OF CASH FLOWS
 Six Months EndedJune 30,2007
    
    
    2006Cash flows from (for) operating activitiesNet income (loss)
    
    $
    2,679,719
    
    
    $
    (161,451
    )Adjustments to reconcile net income (loss) to net cash
from (for) operating activitiesNet change in unrealized
    
    
    428,082
    
    
    
    (1,554,162
    )Change in option premiums paid
    
    
    (36,495
    )
    
    
    0Change in option premiums received
    
    
    20,626
    
    
    
    11,687Decrease in restricted cash
    
    
    0
    
    
    
    1,873,271Increase (decrease) in accounts payable and accrued expenses
    
    
    83,881
    
    
    
    (93,548
    )Increase in prepaid expense
    
    
    (7,500
    )
    
    
    0(Increase) decrease in interest receivable
    
    
    (10,617
    )
    
    
    123Net purchases of investments in United States
government securities
    
    
    (801,027
    )
    
    
    (6,170,148
    )Net cash from (for) operating activities
    
    
    2,356,669
    
    
    
    (6,094,228
    )Cash flows from (for) financing activitiesAddition of units
    
    
    1,651,219
    
    
    
    1,617,064Redemption of units
    
    
    (2,513,485
    )
    
    
    (367,997
    )Offering costs paid
    
    
    (192,468
    )
    
    
    (186,833
    )Net cash from (for) financing activities
    
    
    (1,054,734
    )
    
    
    1,062,234Net increase (decrease) in cash
    
    
    1,301,935
    
    
    
    (5,031,994
    )CashBeginning of period
    
    
    6,103,050
    
    
    
    9,976,310End of period
    
    $
    7,404,985
    
    
    $
    4,944,316End of period cash consists of:Cash in broker trading accounts
    
    $
    6,185,671
    
    
    $
    2,886,999Cash
    
    
    1,219,314
    
    
    
    2,057,317Total end of period cash
    
    $
    7,404,985
    
    
    $
    4,944,316
  - 7 -




---



##### 



CAMPBELL ALTERNATIVE ASSET TRUST
STATEMENTS OF CHANGES IN UNITHOLDERS CAPITAL (NET ASSET VALUE)
 Unitholders CapitalManaging Owner
    
    
    Other Unitholders
    
    
    TotalUnits
    
    
    Amount
    
    
    Units
    
    
    Amount
    
    
    Units
    
    
    AmountSix Months Ended June 30, 2007Balances at
December 31, 2006
    
    
    1,413.580
    
    
    $
    2,566,397
    
    
    
    22,200.336
    
    
    $
    40,305,318
    
    
    
    23,613.916
    
    
    $
    42,871,715Net income for the six months
ended June 30, 2007
    
    
    
    
    
    
    164,782
    
    
    
    
    
    
    
    2,514,937
    
    
    
    
    
    
    
    2,679,719Additions
    
    
    0.000
    
    
    
    0
    
    
    
    739.939
    
    
    
    1,341,286
    
    
    
    739.939
    
    
    
    1,341,286Redemptions
    
    
    0.000
    
    
    
    0
    
    
    
    (1,237.372
    )
    
    
    (2,226,827
    )
    
    
    (1,237.372
    )
    
    
    (2,226,827
    )Offering costs
    
    
    
    
    
    
    (11,564
    )
    
    
    0
    
    
    
    (179,961
    )
    
    
    
    
    
    
    (191,525
    )Balances at
June 30, 2007
    
    
    1,413.580
    
    
    $
    2,719,615
    
    
    
    21,702.903
    
    
    $
    41,754,753
    
    
    
    23,116.483
    
    
    $
    44,474,368Six Months Ended June 30, 2006Balances at
December 31, 2005
    
    
    1,413.580
    
    
    $
    2,391,693
    
    
    
    22,143.118
    
    
    $
    37,464,774
    
    
    
    23,556.698
    
    
    $
    39,856,467Net (loss) for the six months
ended June 30, 2006
    
    
    
    
    
    
    (7,515
    )
    
    
    
    
    
    
    (153,936
    )
    
    
    
    
    
    
    (161,451
    )Additions
    
    
    0.000
    
    
    
    0
    
    
    
    936.355
    
    
    
    1,617,064
    
    
    
    936.355
    
    
    
    1,617,064Redemptions
    
    
    0.000
    
    
    
    0
    
    
    
    (243.225
    )
    
    
    (413,687
    )
    
    
    (243.225
    )
    
    
    (413,687
    )Offering costs
    
    
    
    
    
    
    (10,975
    )
    
    
    
    
    
    
    (175,414
    )
    
    
    
    
    
    
    (186,389
    )Balances at
June 30, 2006
    
    
    1,413.580
    
    
    $
    2,373,203
    
    
    
    22,836.248
    
    
    $
    38,338,801
    
    
    
    24,249.828
    
    
    $
    40,712,004
 Net Asset Value per Managing Owner and Other Unitholders UnitJune 30,
    
    December 31,
    
    June 30,
    
    December 31,2007
    
    2006
    
    2006
    
    2005$1,923.92
    
    $1,815.53
    
    $1,678.86
    
    $1,691.94
  - 8 -




---



##### 



CAMPBELL ALTERNATIVE ASSET TRUST
NOTES TO FINANCIAL STATEMENTS
 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 June 30, 2007 and December 31, 2006, the 401(K) Plan held approximately 56% and
52% 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. Beginning July 1, 2006, the market value of forward currency (non-exchange
traded) contracts is 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. Prior to July 1, 2006, the market
value of forward currency (non-exchange traded) contracts was 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 or based on the market value of its exchange-traded equivalent.
 - 9 -




---



##### 



CAMPBELL ALTERNATIVE ASSET TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
 Note 1.
    
    ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED)
 C.
    
    Method of Reporting (Continued)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 units
outstanding.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.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 June 30, 2007 and
December 31, 2006, the Trust reflects a liability in the statement of financial
condition for offering costs payable to Campbell & Company of $14,885 and $15,828,
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 June 30, 2007 and December 31, 2006,
the amount of unreimbursed offering costs incurred by Campbell & Company is $314,315
and $403,225, respectively.
 - 10 -




---



##### 



CAMPBELL ALTERNATIVE ASSET TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
 Note 1.
    
    ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED)
 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 July 2006, the Financial Accounting Standards Board (FASB) issued Interpretation
No. 48 (FIN 48) entitled Accounting For Uncertainty in Income Taxes  an
interpretation of FASB Statement No. 109. FIN 48 prescribes the minimum recognition
threshold a tax position must meet in connection with accounting for uncertainties in
income tax positions taken or expected to be taken by an entity before being measured
and recognized in the financial statements. Adoption of FIN 48 is required for
fiscal years beginning after December 15, 2006. The implementation of FIN 48 had no
material impact on the Trusts financial statements.In September 2006, the FASB issued Statement of Financial Accounting Standards No.
157, Fair Value Measurements (FAS 157). FAS 157 defines fair value, establishes a
framework for measuring fair value in accounting principles generally accepted in the
United States of America, and expands disclosures about fair value measurements.
While FAS 157 does not require any new fair value measurements, for some entities,
the application of FAS 157 may change current practice. FAS 157 is effective for
financial statements issued for fiscal years beginning after November 15, 2007, and
interim periods within those fiscal years. The implementation of FAS 157 is not
expected to have a material impact on the Trusts financial statements.H.
    
    ReclassificationCertain amounts in the 2006 financial statements were reclassified to conform with
the 2007 presentation.
 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.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.
 - 11 -




---



##### 



CAMPBELL ALTERNATIVE ASSET TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
 Note 2.
    
    MANAGING OWNER AND COMMODITY TRADING ADVISOR (CONTINUED)
 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 U.S. Bank National Association, a national banking
corporation. The trustee has delegated to the managing operator 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, forward currency and options on 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.
 - 12 -




---



##### 



CAMPBELL ALTERNATIVE ASSET TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
 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
Trusts 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 Trusts 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 June 30, 2007 and December 31, 2006 was $35,348,314
and $34,547,287, respectively, which equals 79% and 81% of Net Asset Value, respectively.
The cash deposited with interbank market makers at June 30, 2007 and December 31, 2006 was
$1,211,344 and $2,900,150, respectively, which equals 3% and 7% of Net Asset Value,
respectively. There were no restricted cash deposits at June 30, 2007 and December 31,
2006.The Trust trades forward currency and options on forward currency contracts in unregulated
markets between principals and assumes the risk of loss from counterparty nonperformance.
Accordingly, the risks associated with forward currency and options on 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 and options on 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. As both a buyer and seller of options, the Trust pays or receives a
premium at the outset and then bears the risk of unfavorable changes in the price of the
contract underlying the option. Written options expose the Trust to potentially unlimited
liability, and purchased options expose the Trust to a risk of loss limited to the
premiums paid.The unrealized gain (loss) on open futures, forward currency and options on forward currency contracts
is comprised of the following:
 Forward Currency and OptionsFutures Contracts
    
    
    on Forward Currency Contracts(exchange traded)
    
    
    (non-exchange traded)June 30,
    
    
    December 31,
    
    
    June 30,
    
    
    December 31,2007
    
    
    2006
    
    
    2007
    
    
    2006Gross unrealized gains
    
    $
    1,213,044
    
    
    $
    1,673,274
    
    
    $
    2,615,636
    
    
    $
    2,735,365Gross unrealized losses
    
    
    (377,776
    )
    
    
    (590,326
    )
    
    
    (1,372,255
    )
    
    
    (1,311,582
    )Net unrealized gain
    
    $
    835,268
    
    
    $
    1,082,948
    
    
    $
    1,243,381
    
    
    $
    1,423,783
 - 13 -




---



##### 



CAMPBELL ALTERNATIVE ASSET TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
 Note 7.
    
    TRADING ACTIVITIES AND RELATED RISKS (CONTINUED)
 Open contracts generally mature within three months; as of June 30, 2007, the latest
maturity date for open futures contracts is March 2008, and the latest maturity date for
open forward currency contracts is September 2007, and the latest expiry date for options
on forward currency contracts is July 2007. However, the Trust intends to close all
futures and forward currency 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.
    
    INDEMNIFICATIONS
 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 June 30, 2007, the statements of
operations for the three months and six months ended June 30, 2007
and 2006, and the statements of cash flows and changes in
unitholders capital (Net Asset Value) for the six months ended
June 30, 2007 and 2006 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 June 30, 2007, and the
results of operations for the three months and six months ended
June 30, 2007 and 2006, and cash flows for the six months ended
June 30, 2007 and 2006.
 - 14 -




---



##### 



CAMPBELL ALTERNATIVE ASSET TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
 Note 10.
    
    FINANCIAL HIGHLIGHTS
 The following information presents per unit operating performance data and other
supplemental financial data for the three months and six months ended June 30, 2007 and
2006. This information has been derived from information presented in the financial
statements.
 Three months ended
    
    
    Six months endedJune 30,
    
    
    June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006(Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)Per Unit Performance
(for a unit outstanding throughout the entire period)Net asset value per unit at beginning of period
    
    $
    1,709.81
    
    
    $
    1,771.97
    
    
    $
    1,815.53
    
    
    $
    1,691.94Income (loss) from operations:Total trading gains (losses) (1)
    
    
    222.35
    
    
    
    (95.84
    )
    
    
    112.64
    
    
    
    (1.23
    )Interest income net of expenses (1)
    
    
    (4.08
    )
    
    
    6.56
    
    
    
    3.93
    
    
    
    (4.09
    )Total income (loss) from operations
    
    
    218.27
    
    
    
    (89.28
    )
    
    
    116.57
    
    
    
    (5.32
    )Offering costs (1)
    
    
    (4.16
    )
    
    
    (3.83
    )
    
    
    (8.18
    )
    
    
    (7.76
    )Net asset value per unit at end of period
    
    $
    1,923.92
    
    
    $
    1,678.86
    
    
    $
    1,923.92
    
    
    $
    1,678.86Total Return(3)
    
    
    12.52
    %
    
    
    (5.25
    )%
    
    
    5.97
    %
    
    
    (0.77)
    %Supplemental DataRatios to average net asset value:Expenses prior to performance fee (4)
    
    
    3.25
    %
    
    
    3.14
    %
    
    
    3.12
    %
    
    
    3.15
    %Performance fee (3)
    
    
    0.64
    %
    
    
    0.00
    %
    
    
    0.64
    %
    
    
    0.90
    %Total expenses
    
    
    3.89
    %
    
    
    3.14
    %
    
    
    3.76
    %
    
    
    4.05
    %Interest income net of expenses (2), (4), (5)
    
    
    1.66
    %
    
    
    1.53
    %
    
    
    1.71
    %
    
    
    1.32
    %
 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)
    
    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 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 percentage when
interest income exceeds expenses excluding the performance fee for the period. - 15 -




---



##### 



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
           i.e.
 - 16 -




---



##### 



Results of Operations
  2007
  Sector
    
    % Gain (Loss)Interest Rates
    
    
    5.02
    %Stock Indices
    
    
    4.13Metals
    
    
    (0.57
    )Currencies
    
    
    (1.01
    )Energy
    
    
    (1.21
    )6.36
    %
  - 17 -




---



##### 



- 18 -




---



##### 



2006
  Sector
    
    % Gain (Loss)Interest Rates
    
    
    2.57
    %Metals
    
    
    2.16Stock Indices
    
    
    0.95Energy
    
    
    0.90Currencies
    
    
    (6.54
    )0.04
    %
    - 19 -




---



##### 



Off-Balance Sheet Risk
  - 20 -




---



##### 



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
  - 21 -




---



##### 



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.
   - 22 -




---



##### 



The Trusts Trading Value at Risk in Different Market Sectors
  June 30, 2007TradingMarket Sector
    
    Value at Risk*
    
    Gain/(Loss)**Interest Rates
    
    
    1.06
    %
    
    
    5.02
    %Currencies
    
    
    0.70
    %
    
    
    (1.01
    )%Stock Indices
    
    
    0.58
    %
    
    
    4.13
    %Metals
    
    
    0.25
    %
    
    
    (0.57
    )%Energy
    
    
    0.09
    %
    
    
    (1.21
    )%Aggregate/Total
    
    
    1.55
    %
    
    
    6.36
    %
 
 *
    
    -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 six months ended June 30, 2007, approximately 6.36% was due to
trading gains (before commissions) and approximately 2.42% due to interest income offset by
approximately 2.81% due to brokerage fees, management fees, performance fees and operating and
offering costs borne by the Trust offset by giving a net return of 5.97%. - 23 -




---



##### 



December 31, 2006TradingMarket Sector
    
    Value at Risk*
    
    Gain/(Loss)**Stock Indices
    
    
    0.75
    %
    
    
    6.98
    %Currencies
    
    
    0.70
    %
    
    
    2.22
    %Interest Rates
    
    
    0.59
    %
    
    
    3.07
    %Energy
    
    
    0.39
    %
    
    
    (6.58
    )%Metals
    
    
    0.17
    %
    
    
    2.07
    %Aggregate/Total
    
    
    1.42
    %
    
    
    7.76
    %
 
 *
    
    -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, 2006, approximately 7.76% was due to
trading gains (before commissions), approximately 4.70% was due interest income offset by
approximately 5.16% due to brokerage fees, performance fees and operating and offering costs
borne by the Trust giving a net return of 7.30%. 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; 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.
 - 24 -




---



##### 



Non-Trading Risk
  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
  - 25 -




---



##### 



Stock Indices
  Energy
  Metals
  Qualitative Disclosures Regarding Non-Trading Risk Exposure
  Foreign Currency Balances
  Treasury Bill Positions
  - 26 -




---



##### 



Qualitative Disclosures Regarding Means of Managing Risk Exposure
   General
  Item 4. Controls and Procedures
  - 27 -




---



##### 



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 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-K
 None
 - 28 -




---



##### 



SIGNATURES
  CAMPBELL ALTERNATIVE ASSET TRUST
(Registrant)By:
    
    Campbell & Company, Inc.Managing OwnerDate: August 14, 2007
    
    
    
    By:
    
    /s/Theresa D. BecksTheresa D. BecksChief Executive Officer
 - 29 -




---



##### 



EXHIBIT INDEX
 PageExhibit Number
    
    Description of Document
    
    Number31.01
    
    Certification by Chief Executive Officer
    
    
    E-231.02
    
    Certification by Senior Vice President of Accounting and Finance
    
    
    E-332.01
    
    Certification by Chief Executive Officer
    
    
    E-432.02
    
    Certification by Senior Vice President of Accounting and Finance
    
    
    E-5
 E 1