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 September 30, 2010
 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)
 (Address of principal executive offices, including zip code)
 (Registrants telephone number, including area code)
 þ o
 þ o
  Large accelerate filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ(Do not check if a smaller reporting company)
 o þ




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##### 



PagePART I  FINANCIAL INFORMATIONItem 1. Financial StatementsCondensed Schedules of Investments as of September 30, 2010
and December 31, 2009 (Unaudited)
    
    
    3-6Statements of Financial Condition as of September 30, 2010
and December 31, 2009 (Unaudited)
    
    
    7Statements of Operations for the Three Months and Nine Months Ended
September 30, 2010 and 2009 (Unaudited)
    
    
    8Statements of Cash Flows for the Nine Months Ended
September 30, 2010 and 2009 (Unaudited)
    
    
    9Statements of Changes in Unitholders Capital (Net Asset Value)
for the Nine Months Ended September 30, 2010 and 2009 (Unaudited)
    
    
    10Financial Highlights for the Three Months and Nine Months Ended
September 30, 2010 and 2009 (Unaudited)
    
    
    11Notes to Financial Statements (Unaudited)
    
    
    12-18Item 2. Managements Discussion and Analysis of Financial Condition and
Results of Operations
    
    
    19-27Item 3. Quantitative and Qualitative Disclosure About Market Risk
    
    
    27-33Item 4. Controls and Procedures
    
    
    33PART II  OTHER INFORMATION
    
    
    34Item 6. Exhibits and Reports on Form 8-K
    
    
    34SIGNATURES
    
    
    35CERTIFICATIONS




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##### 



FIXED INCOME SECURITIES
 Maturity
    
    
    
    
    
    
    
    
    % of NetFace Value
    
    
    Description
    
    Values ($)
    
    
    Asset ValueCommercial PaperNetherlandsConsumer Discretionary (cost $511,935)
    
    $
    511,943
    
    
    
    1.82
    %United StatesConsumer Discretionary
    
    $
    2,215,813
    
    
    
    7.86
    %Consumer Staples
    
    $
    1,462,885
    
    
    
    5.19
    %Financials
    
    $
    1,613,818
    
    
    
    5.72
    %Industrials
    
    $
    399,716
    
    
    
    1.42
    %Materials
    
    $
    742,910
    
    
    
    2.63
    %Municipal
    
    $
    430,129
    
    
    
    1.53
    %Services
    
    $
    597,974
    
    
    
    2.12
    %Utilities
    
    $
    3,441,781
    
    
    
    12.21
    %Total United States(cost $10,904,386)
    
    $
    10,905,026
    
    
    
    38.68
    %Total Commercial Paper(cost $11,416,321)
    
    $
    11,416,969
    
    
    
    40.50
    %Corporate BondsUnited StatesFinancials
    
    $
    1,530,751
    
    
    
    5.43
    %Telecommunications
    
    $
    226,183
    
    
    
    0.80
    %Total United States(cost $1,754,038)
    
    $
    1,756,934
    
    
    
    6.23
    %Government And Agency ObligationsUnited StatesUS Government Agency
    
    $
    1,701,025
    
    
    
    6.03
    %US Treasury BillU.S. Treasury Bills *$
    5,000,000
    
    
    Due 10/14/2010
    
    $
    4,999,819
    
    
    
    17.73
    %Total United States(cost $6,699,669)
    
    $
    6,700,844
    
    
    
    23.76
    %Short Term Investment FundsUnited StatesShort Term Investment Funds (cost $915)
    
    $
    915
    
    
    
    0.00
    %Total Fixed Income Securities(cost $19,870,943)
    
    $
    19,875,662
    
    
    
    70.49
    %
 LONG FUTURES CONTRACTS
 % of NetDescription
    
    Values ($)
    
    
    Asset ValueAgriculture
    
    $
    230,184
    
    
    
    0.82
    %Energy
    
    $
    40,635
    
    
    
    0.14
    %Metals
    
    $
    606,172
    
    
    
    2.15
    %Stock indices
    
    $
    44,614
    
    
    
    0.16
    %Short-term interest rates
    
    $
    110,559
    
    
    
    0.39
    %Long-term interest rates
    
    $
    292,486
    
    
    
    1.04
    %Total long futures contracts
    
    $
    1,324,650
    
    
    
    4.70
    %
 See Accompanying Notes to Financial Statements.
 - 3 -




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##### 



SHORT FUTURES CONTRACTS
 % of NetDescription
    
    Values ($)
    
    
    Asset ValueEnergy
    
    $
    (57,710
    )
    
    
    (0.20
    )%Metals
    
    $
    (48,247
    )
    
    
    (0.17
    )%Stock indices
    
    $
    (792
    )
    
    
    0.00
    %Short-term interest rates
    
    $
    (2,399
    )
    
    
    (0.01
    )%Total short futures contracts
    
    $
    (109,148
    )
    
    
    (0.38
    )%Total futures contracts
    
    $
    1,215,502
    
    
    
    4.32
    %
 FORWARD CURRENCY CONTRACTS
 % of NetDescription
    
    Values ($)
    
    
    Asset ValueVarious long forward currency contracts
    
    $
    4,336,405
    
    
    
    15.38
    %Various short forward currency contracts
    
    $
    (3,900,349)
    
    
    
    (13.83
    )%Total forward currency contracts
    
    $
    436,056
    
    
    
    1.55
    %
 PURCHASED OPTIONS ON FORWARD CURRENCY CONTRACTS
 % of NetDescription
    
    Values ($)
    
    
    Asset ValuePurchased options on forward currency contracts (premiums paid  $18,662)
    
    $
    16,974
    
    
    
    0.06
    %
 WRITTEN OPTIONS ON FORWARD CURRENCY CONTRACTS
 % of NetDescription
    
    Values ($)
    
    
    Asset ValueWritten options on forward currency contracts (premiums received  $26,389)
    
    $
    (20,079
    )
    
    
    (0.07
    )%
 
 *
    
    Pledged as collateral for the trading of futures, forward and option positions. See Accompanying Notes to Financial Statements.
 - 4 -




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##### 



FIXED INCOME SECURITIES
 Maturity
    
    
    
    
    
    
    
    
    % of NetFace Value
    
    
    Description
    
    Values ($)
    
    
    Asset ValueBank Deposits
United StatesFinancials (cost $1,100,000)
    
    $
    1,100,627
    
    
    
    3.79
    %Commercial PaperGermanyMaterials (cost $588,603)
    
    $
    588,850
    
    
    
    2.03
    %NetherlandsConsumer Discretionary (cost $827,966)
    
    $
    827,971
    
    
    
    2.85
    %United StatesConsumer Discretionary
    
    $
    2,048,923
    
    
    
    7.06
    %Consumer Staples
    
    $
    1,523,579
    
    
    
    5.25
    %Energy
    
    $
    924,969
    
    
    
    3.19
    %Financials
    
    $
    1,708,792
    
    
    
    5.89
    %IndustrialsAvery Dennison Corporation$
    2,290,000
    
    
    Due 01/04/2010
    
    $
    2,289,921
    
    
    
    7.90
    %Municipal
    
    $
    6,549,496
    
    
    
    22.58
    %Telecommunications
    
    $
    382,987
    
    
    
    1.32
    %Total United States(cost $15,424,662)
    
    $
    15,428,667
    
    
    
    53.19
    %Total Commercial Paper(cost $16,841,231)
    
    $
    16,845,488
    
    
    
    58.07
    %Corporate BondsUnited StatesFinancials (cost $1,395,877)
    
    $
    1,397,647
    
    
    
    4.82
    %Government And Agency ObligationsUnited StatesUS Government Agency
    
    $
    4,249,147
    
    
    
    14.65
    %US Treasury BillU.S. Treasury Bills *$
    5,000,000
    
    
    Due 04/01/2010
    
    $
    4,999,431
    
    
    
    17.24
    %U.S. Treasury Bills *$
    1,650,000
    
    
    Due 03/25/2010
    
    $
    1,649,753
    
    
    
    5.69
    %Total United States(cost $10,896,184)
    
    $
    10,898,331
    
    
    
    37.58
    %Short Term Investment FundsUnited StatesShort Term Investment Funds (cost $34,246)
    
    $
    34,246
    
    
    
    0.12
    %Total Fixed Income Securities (cost $30,267,538)
    
    $
    30,276,339
    
    
    
    104.38
    %
 LONG FUTURES CONTRACTS
 % of NetDescription
    
    Values ($)
    
    
    Asset ValueAgriculture
    
    $
    (3,889
    )
    
    
    (0.01
    )%Energy
    
    $
    18,479
    
    
    
    0.06
    %Long-term interest rates
    
    $
    (252,217
    )
    
    
    (0.87
    )%Metals
    
    $
    163,924
    
    
    
    0.57
    %
 See Accompanying Notes to Financial Statements.
 - 5 -




---



##### 



% of NetDescription
    
    Values ($)
    
    
    Asset ValueShort-term interest rates
    
    $
    (100,836
    )
    
    
    (0.35
    )%Stock indices
    
    $
    213,758
    
    
    
    0.74
    %Total long futures contracts
    
    $
    39,219
    
    
    
    0.14
    %
 SHORT FUTURES CONTRACTS
 % of NetDescription
    
    Values ($)
    
    
    Asset ValueAgriculture
    
    $
    838
    
    
    
    0.00
    %Long-term interest rates
    
    $
    11,956
    
    
    
    0.04
    %Metals
    
    $
    (107,732
    )
    
    
    (0.37
    )%Total short futures contracts
    
    $
    (94,938
    )
    
    
    (0.33
    )%Total futures contracts
    
    $
    (55,719
    )
    
    
    (0.19
    )%
 FORWARD CURRENCY CONTRACTS
 % of NetDescription
    
    Values ($)
    
    
    Asset ValueVarious long forward currency contracts
    
    $
    (1,124,565
    )
    
    
    (3.88
    )%Various short forward currency contracts
    
    $
    859,412
    
    
    
    2.96
    %Total forward currency contracts
    
    $
    (265,153
    )
    
    
    (0.92
    )%
 PURCHASED OPTIONS ON FORWARD CURRENCY CONTRACTS
 % of NetDescription
    
    Values ($)
    
    
    Asset ValuePurchased options on forward currency contracts (premiums paid  $70,105)
    
    $
    70,935
    
    
    
    0.24
    %
 WRITTEN OPTIONS ON FORWARD CURRENCY CONTRACTS
 % of NetDescription
    
    Values ($)
    
    
    Asset ValueWritten options on forward currency contracts (premiums received  $21,883)
    
    $
    (19,069
    )
    
    
    (0.07
    )%
 
 *
    
    Pledged as collateral for the trading of futures, forward and option positions. See Accompanying Notes to Financial Statements.
 - 6 -




---



##### 



September 30,
    
    
    December 31,2010
    
    
    2009ASSETSEquity in broker trading accountsCash
    
    $
    2,735,042
    
    
    $
    695,155Fixed income securities (cost $4,999,819 and $4,999,431,
respectively)
    
    
    4,999,819
    
    
    
    4,999,431Net unrealized gain (loss) on open futures contracts
    
    
    1,215,502
    
    
    
    (55,719
    )Total equity in broker trading accounts
    
    
    8,950,363
    
    
    
    5,638,867Cash
    
    
    3,862,275
    
    
    
    279,164Restricted cash deposits with forwards broker
    
    
    390,146
    
    
    
    0Fixed income securities (cost $14,871,124 and $25,268,107,
respectively)
    
    
    14,875,843
    
    
    
    25,276,908Options purchased, at fair value (premiums paid  $18,662
and $70,105, respectively)
    
    
    16,974
    
    
    
    70,935Net unrealized gain (loss) on open forward currency contracts
    
    
    436,056
    
    
    
    (265,153
    )Interest receivable
    
    
    9,906
    
    
    
    7,530Prepaid expenses
    
    
    5,039
    
    
    
    1,218Total assets
    
    $
    28,546,602
    
    
    $
    31,009,469LIABILITIESAccounts payable
    
    $
    35,596
    
    
    $
    31,880Brokerage fee
    
    
    13,992
    
    
    
    18,138Options written, at fair value (premiums received  $26,389
and $21,883, respectively)
    
    
    20,079
    
    
    
    19,069Accrued commissions and other trading fees on open contracts
    
    
    3,972
    
    
    
    4,701Offering costs payable
    
    
    0
    
    
    
    5,727Redemptions payable
    
    
    274,149
    
    
    
    1,927,892Total liabilities
    
    
    347,788
    
    
    
    2,007,407UNITHOLDERS CAPITAL (Net Asset Value)Managing Owner - 741.284 and 1,413.580 redeemable units
outstanding at September 30, 2010 and December 31, 2009
    
    
    1,202,785
    
    
    
    2,173,492Other Unitholders - 16,637.801 and 17,448.570 redeemable
units outstanding at September 30, 2010 and December 31,
2009
    
    
    26,996,029
    
    
    
    26,828,570Total unitholders capital (Net Asset Value)
    
    
    28,198,814
    
    
    
    29,002,062Total liabilities and unitholders capital (Net Asset Value)
    
    $
    28,546,602
    
    
    $
    31,009,469
 See
Accompanying Notes to Financial Statements.
 - 7 -




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##### 



Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009TRADING GAINS (LOSSES)Futures trading gains (losses)Realized
    
    $
    1,227,546
    
    
    $
    273,937
    
    
    $
    619,290
    
    
    $
    (1,530,131
    )Change in unrealized
    
    
    886,551
    
    
    
    44,044
    
    
    
    1,271,221
    
    
    
    72,717Brokerage commissions
    
    
    (19,800
    )
    
    
    (10,748
    )
    
    
    (57,387
    )
    
    
    (36,627
    )Net gain (loss) from futures trading
    
    
    2,094,297
    
    
    
    307,233
    
    
    
    1,833,124
    
    
    
    (1,494,041
    )Forward currency and options on forward
currency trading gains (losses)Realized
    
    
    (242,079
    )
    
    
    (69,988
    )
    
    
    (400,697
    )
    
    
    (209,179
    )Change in unrealized
    
    
    726,578
    
    
    
    1,081,275
    
    
    
    702,187
    
    
    
    961,710Brokerage commissions
    
    
    (1,906
    )
    
    
    (1,508
    )
    
    
    (5,582
    )
    
    
    (3,817
    )Net gain (loss) from forward currency and options on
forward currency trading
    
    
    482,593
    
    
    
    1,009,779
    
    
    
    295,908
    
    
    
    748,714Total net trading gain (loss)
    
    
    2,576,890
    
    
    
    1,317,012
    
    
    
    2,129,032
    
    
    
    (745,327
    )NET INVESTMENT INCOME (LOSS)Investment incomeInterest income
    
    
    31,335
    
    
    
    9,044
    
    
    
    70,582
    
    
    
    16,195Realized gain (loss) on fixed income securities
    
    
    3,380
    
    
    
    0
    
    
    
    6,365
    
    
    
    0Change in unrealized gain (loss) on fixed income securities
    
    
    7,755
    
    
    
    6,136
    
    
    
    (4,082
    )
    
    
    6,136Total investment income
    
    
    42,470
    
    
    
    15,180
    
    
    
    72,865
    
    
    
    22,331ExpensesBrokerage fee
    
    
    192,751
    
    
    
    222,091
    
    
    
    589,817
    
    
    
    719,246Operating expenses
    
    
    20,169
    
    
    
    31,315
    
    
    
    77,162
    
    
    
    78,943Total expenses
    
    
    212,920
    
    
    
    253,406
    
    
    
    666,979
    
    
    
    798,189Net investment income (loss)
    
    
    (170,450
    )
    
    
    (238,226
    )
    
    
    (594,114
    )
    
    
    (775,858
    )NET INCOME (LOSS)
    
    $
    2,406,440
    
    
    $
    1,078,786
    
    
    $
    1,534,918
    
    
    $
    (1,521,185
    )NET INCOME (LOSS) PER MANAGING OWNER
AND OTHER UNITHOLDERS UNIT (based on weighted average number
of units outstanding during the period)
    
    $
    137.75
    
    
    $
    52.82
    
    
    $
    83.60
    
    
    $
    (70.94
    )INCREASE (DECREASE) IN NET ASSET VALUE PER MANAGING OWNER
AND OTHER UNITHOLDERS UNIT
    
    $
    137.72
    
    
    $
    49.41
    
    
    $
    84.99
    
    
    $
    (76.86
    )
 See
Accompanying Notes to Financial Statements.
 - 8 -




---



##### 



Nine Months EndedSeptember 30,2010
    
    
    2009Cash flows from (for) operating activitiesNet income (loss)
    
    $
    1,534,918
    
    
    $
    (1,521,185
    )Adjustments to reconcile net income (loss) to net cash from
(for) operating activitiesNet change in unrealized
    
    
    (1,969,326
    )
    
    
    (1,040,563
    )(Increase) decrease in restricted cash
    
    
    (390,146
    )
    
    
    1,180,793(Increase) decrease in option premiums paid
    
    
    51,443
    
    
    
    (24,695
    )Increase (decrease) in option premiums received
    
    
    4,506
    
    
    
    (26,317
    )(Increase) decrease in interest receivable
    
    
    (2,376
    )
    
    
    (3,538
    )(Increase) decrease in prepaid expenses
    
    
    (3,821
    )
    
    
    (1,565
    )Increase (decrease) in accounts payable and accrued expenses
    
    
    (1,159
    )
    
    
    (10,658
    )Purchases of investments in fixed income securities
    
    
    (224,468,057
    )
    
    
    (390,373,571
    )Sales/maturities of investments in fixed income securities
    
    
    234,864,652
    
    
    
    361,971,652Net cash from (for) operating activities
    
    
    9,620,634
    
    
    
    (29,849,647
    )Cash flows from (for) financing activitiesAddition of units
    
    
    1,757,349
    
    
    
    1,460,338Redemption of units
    
    
    (5,673,028
    )
    
    
    (4,401,868
    )Offering costs paid
    
    
    (81,957
    )
    
    
    (229,633
    )Net cash from (for) financing activities
    
    
    (3,997,636
    )
    
    
    (3,171,163
    )Net increase (decrease) in cash
    
    
    5,622,998
    
    
    
    (33,020,810
    )Unrestricted cashBeginning of period
    
    
    974,319
    
    
    
    34,224,210End of period
    
    $
    6,597,317
    
    
    $
    1,203,400End of period cash consists of:Cash in broker trading accounts
    
    $
    2,735,042
    
    
    $
    924,047Cash
    
    
    3,862,275
    
    
    
    279,353Total end of period cash
    
    $
    6,597,317
    
    
    $
    1,203,400
 See
Accompanying Notes to Financial Statements.
 - 9 -




---



##### 



Unitholders CapitalManaging Owner
    
    
    Other Unitholders
    
    
    TotalUnits
    
    
    Amount
    
    
    Units
    
    
    Amount
    
    
    Units
    
    
    AmountNine Months Ended September 30, 2010Balances at December 31, 2009
    
    
    1,413.580
    
    
    $
    2,173,492
    
    
    
    17,448.570
    
    
    $
    26,828,570
    
    
    
    18,862.150
    
    
    $
    29,002,062Net income (loss) for the nine
months ended
September 30, 2010
    
    
    
    
    
    
    34,922
    
    
    
    
    
    
    
    1,499,996
    
    
    
    
    
    
    
    1,534,918Additions
    
    
    0.000
    
    
    
    0
    
    
    
    1,196.111
    
    
    
    1,757,349
    
    
    
    1,196.111
    
    
    
    1,757,349Redemptions
    
    
    (672.296
    )
    
    
    (1,000,000
    )
    
    
    (2,006.880
    )
    
    
    (3,019,285
    )
    
    
    (2,679.176
    )
    
    
    (4,019,285
    )Offering costs
    
    
    
    
    
    
    (5,629
    )
    
    
    
    
    
    
    (70,601
    )
    
    
    
    
    
    
    (76,230
    )Balances at September 30, 2010
    
    
    741.284
    
    
    $
    1,202,785
    
    
    
    16,637.801
    
    
    $
    26,996,029
    
    
    
    17,379.085
    
    
    $
    28,198,814Nine Months Ended September 30, 2009Balances at December 31, 2008
    
    
    1,413.580
    
    
    $
    2,306,948
    
    
    
    20,544.542
    
    
    $
    33,528,535
    
    
    
    21,958.122
    
    
    $
    35,835,483Net income (loss) for the nine
months ended
September 30, 2009
    
    
    
    
    
    
    (93,690
    )
    
    
    
    
    
    
    (1,427,495
    )
    
    
    
    
    
    
    (1,521,185
    )Additions
    
    
    0.000
    
    
    
    0
    
    
    
    916.784
    
    
    
    1,460,338
    
    
    
    916.784
    
    
    
    1,460,338Redemptions
    
    
    0.000
    
    
    
    0
    
    
    
    (2,677.074
    )
    
    
    (4,137,290
    )
    
    
    (2,677.074
    )
    
    
    (4,137,290
    )Offering costs
    
    
    
    
    
    
    (14,958
    )
    
    
    
    
    
    
    (212,172
    )
    
    
    
    
    
    
    (227,130
    )Balances at September 30, 2009
    
    
    1,413.580
    
    
    $
    2,198,300
    
    
    
    18,784.252
    
    
    $
    29,211,916
    
    
    
    20,197.832
    
    
    $
    31,410,216
 Net Asset Value per Managing Owner and Other Unitholders UnitSeptember 30, 2010
    
    December 31, 2009
    
    
    September 30, 2009
    
    
    December 31, 2008$              1,622.57
    
    $
    1,537.58
    
    
    $
    1,555.13
    
    
    $
    1,631.99
 See Accompanying Notes to Financial Statements.
 - 10 -




---



##### 



Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Per Unit
Performance (for a unit outstanding throughout the entire
period)Net asset value per unit at beginning of period
    
    $
    1,484.85
    
    
    $
    1,505.72
    
    
    $
    1,537.58
    
    
    $
    1,631.99Income (loss) from operations:Total net trading gains (losses) (1)
    
    
    147.48
    
    
    
    64.50
    
    
    
    121.50
    
    
    
    (30.09
    )Net investment income (loss)(1)
    
    
    (9.76
    )
    
    
    (11.66
    )
    
    
    (32.36
    )
    
    
    (36.18
    )Total net income (loss) from operations
    
    
    137.72
    
    
    
    52.84
    
    
    
    89.14
    
    
    
    (66.27
    )Offering costs (1)
    
    
    0.00
    
    
    
    (3.43
    )
    
    
    (4.15
    )
    
    
    (10.59
    )Net asset value per unit at end of period
    
    $
    1,622.57
    
    
    $
    1,555.13
    
    
    $
    1,622.57
    
    
    $
    1,555.13Total Return(3)
    
    
    9.28
    %
    
    
    3.28
    %
    
    
    5.53
    %
    
    
    (4.71
    )%Supplemental DataRatios to average net asset value:Expenses prior to performance fee (4)
    
    
    3.19
    %
    
    
    3.27
    %
    
    
    3.24
    %
    
    
    3.17
    %Performance fee (3)
    
    
    0.00
    %
    
    
    0.00
    %
    
    
    0.00
    %
    
    
    0.00
    %Total expenses
    
    
    3.19
    %
    
    
    3.27
    %
    
    
    3.24
    %
    
    
    3.17
    %Net investment income (loss)(2),(4)
    
    
    (2.55
    )%
    
    
    (3.07
    )%
    
    
    (2.89
    )%
    
    
    (3.08
    )%
 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)
    
    Net investment income (loss) per unit and offering costs per unit are calculated by dividing
the net investment income (loss) 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 See Accompanying Notes to Financial Statements.
 - 11 -




---



##### 



Note 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 A.
    
    General Description of the Trust
 Campbell 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 September 30, 2010
and December 31, 2009, the 401(K) Plan held approximately 80% and 74% of the Trusts outstanding
units, respectively.
 B.
    
    Regulation
 As 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 Reporting
 The 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 (FASB) Accounting Standards Codification (ASC) 210-20,
Offsetting  Balance Sheet. The fair 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 on the last business day of the reporting period. The fair 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.) on the last business day of the
reporting period.
 The fair 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 inputs 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 fair value of option written. Brokerage commissions
include other trading fees and are charged to expense when contracts are opened.
 The fixed income investments, other than U.S. Treasury bills, are held at the custodian and
marked to market on the last business day of the reporting period by the custodian who utilizes
a third party vendor hierarchy of pricing providers who specialize in such markets. The prices
furnished by the providers consider the yield or price of bonds of comparable quality, coupon,
maturity, and type, as well as prices quoted by dealers who make markets in such securities.
U.S. Treasury bills are held at the brokers or interbank market makers and are stated at cost
plus accrued interest, which approximates fair value. Premiums and discounts on fixed income
securities are amortized at cost for financial reporting purposes.
 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.
 The Trust adopted the provisions of ASC 820, Fair Value Measurements and Disclosures as of
January 1, 2008. ASC 820 provides guidance for determining fair value and requires increased
disclosure regarding the inputs to valuation techniques used to measure fair value. ASC 820
defines fair value as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date.
 ASC 820 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques
used to measure fair value into three broad levels. The fair value hierarchy gives the highest
priority to quoted prices (unadjusted) in active markets for identical assets or liabilities
(Level 1) and the lowest priority to unobservable inputs (Level 3).
 Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities that the Trust has the ability to access at the measurement date. An active market
for the asset or liability is a market in which transactions for the asset or liability occur
with sufficient frequency and volume to provide pricing information on an ongoing basis. The
value of the Trusts exchange-traded futures contracts fall into this category.
 Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for
the asset or liability, either directly or indirectly. This category includes forward currency
contracts and options on forward currency contracts that the Trust values using models or other
valuation methodologies derived from observable market data. This category also includes fixed
income investments.
 - 12 -




---



##### 



Level 3 inputs are unobservable inputs for an asset or liability (including the Trusts own
assumptions used in determining the fair value of investments). Unobservable inputs shall be used
to measure fair value to the extent that observable inputs are not available, thereby allowing for
situations in which there is little, if any, market activity for the asset or liability at the
measurement date. As of and for the period ended September 30, 2010, the Trust did not have any
Level 3 assets or liabilities.In January 2010, the FASB issued Accounting Standards update No. 2010-06 (ASU 2010-06) for
improving disclosure about fair value measurements. ASU 2010-06 adds new disclosure requirements
about transfers into and out of Levels 1 and 2 and separate disclosures about purchases, sales,
issuances and settlements in the reconciliation for fair value measurements using significant
unobservable inputs (Level 3). It also clarifies existing disclosure requirements relating to the
levels of disaggregation for fair value measurement and inputs and valuation techniques used to
measure fair value. As of January 1, 2010, the Trust adopted the provisions of ASC 2010-06 except
for disclosures about purchases, sales, issuances and settlements in the rollforward of activity in
Level 3 fair value measurements, which are effective for fiscal
years beginning after December 15, 2010 and for interim periods
within those fiscal years. The adoption of this guidance did
not have a material impact on the Trusts financial
statements.The following tables set forth by level within the fair value hierarchy the Trusts investments
accounted for at fair value on a recurring basis as of September 30, 2010 and December 31, 2009.
 Fair Value at September 30, 2010Description
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TotalInvestmentsFixed income securities
    
    $
    0
    
    
    $
    19,875,662
    
    
    $
    0
    
    
    $
    19,875,662Other Financial InstrumentsExchange-traded futures contracts
    
    
    1,215,502
    
    
    
    0
    
    
    
    0
    
    
    
    1,215,502Forward currency contracts
    
    
    0
    
    
    
    436,056
    
    
    
    0
    
    
    
    436,056Options purchased
    
    
    0
    
    
    
    16,974
    
    
    
    0
    
    
    
    16,974Options written
    
    
    0
    
    
    
    (20,079
    )
    
    
    0
    
    
    
    (20,079
    )Total
    
    $
    1,215,502
    
    
    $
    20,308,613
    
    
    $
    0
    
    
    $
    21,524,115
 Fair Value at December 31, 2009Description
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TotalInvestmentsFixed income securities
    
    $
    0
    
    
    $
    30,276,339
    
    
    $
    0
    
    
    $
    30,276,339Other Financial InstrumentsExchange-traded futures contracts
    
    
    (55,719
    )
    
    
    0
    
    
    
    0
    
    
    
    (55,719
    )Forward currency contracts
    
    
    0
    
    
    
    (265,153
    )
    
    
    0
    
    
    
    (265,153
    )Options purchased
    
    
    0
    
    
    
    70,935
    
    
    
    0
    
    
    
    70,935Options written
    
    
    0
    
    
    
    (19,069
    )
    
    
    0
    
    
    
    (19,069
    )Total
    
    $
    (55,719
    )
    
    $
    30,063,052
    
    
    $
    0
    
    
    $
    30,007,333
 D.
    
    Income TaxesThe Trust prepares calendar year U.S. federal 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 continued to evaluate the application of ASC 740, Income Taxes to the Trust, and
has determined that no reserves for uncertain tax positions were required. The Trust files
federal and state tax returns. The 2006 through 2009 tax years generally remain subject to
examination by the U.S. federal and most state tax authorities.
 - 13 -




---



##### 



E.
    
    Offering Costs
 Campbell & 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 September 30, 2010 and December 31, 2009, the Trust reflects a liability in the statement of
financial condition for offering costs payable to Campbell & Company of $0 and $5,727,
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.
 Effective May 2010, the Trust has reimbursed Campbell & Company for all offering costs incurred
in the initial and continuing offering of the Trust. Additional offering costs with regard to
the Trusts continued offering will be incurred by Campbell & Company. Campbell & Company will
not be reimbursed by the Trust for these costs. At September 30, 2010 and December 31, 2009, the
amount of unreimbursed offering costs incurred by Campbell & Company is $0 and $25,094,
respectively.
 F.
    
    Foreign Currency Transactions
 The 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.
    
    Reclassification
 Certain 2009 amounts in the Statement of Cash Flows were reclassified to conform with the 2010
presentation. Specifically, purchases and sales/maturities of fixed income securities are
presented on a gross basis as components of cash flow from (for) operating activities.
 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 $4 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. More
specifically, the performance fee is paid on the cumulative increase, if any, in the Net Asset
Value per Unit over the highest previous cumulative Net Asset Value per Unit (commonly referred
to as a High Water Mark) adjusting for investment income. In determining the brokerage and
performance fees, adjustments shall be made for capital additions and withdrawals and Net Assets
shall not be reduced by the fees being calculated for such current period. The performance fee
is not subject to any clawback provisions. The brokerage fee and performance fee are typically
paid in the month following the month in which they are
earned. The brokerage fee and performance fee are paid from the available cash at the Trusts
bank, broker or cash management accounts.
 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. CASH MANAGER AND CUSTODIAN
 The Trust has appointed Wilmington Trust Investment Management LLC, a wholly owned subsidiary of
Wilmington Trust Corporation, as cash manager under the Non-Custody Investment Advisory
Agreement dated July 8, 2009, to manage and control the liquid assets of the Trust. The cash
manager is registered as an investment adviser with the Securities and Exchange Commission of
the United States under the Investment Advisers Act of 1940.
 The Trust opened a custodial account at The Northern Trust Company (the custodian) and has
granted the cash manager authority to make certain investments on behalf of the Trust provided
such investments are consistent with the investment guidelines created by the managing operator.
All securities purchased by the cash manager on behalf of the Trust will be held in its custody
account at the custodian. The cash manager will have no beneficial or other interest in the
securities and cash in such custody account. The cash manager began trading on behalf of the
Trust in August 2009.
 - 14 -




---



##### 



Note 5. 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 typically earns interest
income on its assets deposited with the broker.
 Note 6. 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 7. 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 Declaration of Trust and Trust Agreement. Units are transferable, but no
market exists for their sale and none is expected to develop. Monthly redemptions are permitted
upon ten (10) business days advance written notice to Campbell & Company.
 Note 8. TRADING ACTIVITIES AND RELATED RISKS
 The Trust engages in the speculative trading of U.S. and foreign futures contracts, forward
currency contracts and options on forward currency contracts (collectively, derivatives).
Specifically, the Fund trades a portfolio primarily focused on financial futures, which are
instruments designed to hedge or speculate on changes in interest rates, currency exchange rates
or stock index values. A secondary emphasis is on metals, energy and agriculture values. 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.
 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 September 30, 2010 and December 31, 2009 was $4,999,819 and
$6,649,184, respectively, which equals 18% and 23% of Net Asset Value, respectively. The cash
deposited with interbank market makers at September 30, 2010 and December 31, 2009 was
$4,152,462 and $102,855, respectively, which equals 15% and 0% of Net Asset Value, respectively.
These amounts are included in cash and cash equivalents. Included in cash deposits with
interbank market makers at September 30, 2010 was restricted cash for margin requirements of
$360,146 which equals 1% of Net Asset Value. There was no restricted cash at December 31, 2009.
 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 foreign 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. See Note 1. C. for an
explanation of how the Trust determines its valuation for derivatives as well as the netting of
derivatives.
 The unrealized gain (loss) on open futures, forward currency and options on forward currency
contracts is comprised of the following:
 Forward Currency andOptions on ForwardFutures Contracts
    
    
    Currency Contracts(exchange traded)
    
    
    (non-exchange traded)September 30,2010
    
    
    December 31,2009
    
    
    September 30,2010
    
    
    December 31, 2009Gross unrealized gains
    
    $
    1,549,200
    
    
    $
    529,851
    
    
    $
    4,412,288
    
    
    $
    1,199,815Gross unrealized losses
    
    
    (333,698
    )
    
    
    (585,570
    )
    
    
    (3,971,610
    )
    
    
    (1,461,324
    )Net unrealized gain (loss)
    
    $
    1,215,502
    
    
    $
    (55,719
    )
    
    $
    440,678
    
    
    $
    (261,509
    )
 - 15 -




---



##### 



Asset
    
    
    LiabilityDerivatives at
    
    
    Derivatives atStatement of Financial
    
    September 30, 2010
    
    
    September 30, 2010Type of Instrument *
    
    Condition Location
    
    Fair Value
    
    
    Fair Value
    
    
    NetAgricultural Contracts
    
    Equity in broker trading accounts
    
    $
    312,982
    
    
    $
    (82,798
    )
    
    $
    230,184Energy Contracts
    
    Equity in broker trading accounts
    
    
    41,465
    
    
    
    (58,540
    )
    
    
    (17,075
    )Metal Contracts
    
    Equity in broker trading accounts
    
    
    608,121
    
    
    
    (50,196
    )
    
    
    557,925Stock Indices Contracts
    
    Equity in broker trading accounts
    
    
    105,234
    
    
    
    (61,412
    )
    
    
    43,822Short-Term Interest Rate Contracts
    
    Equity in broker trading accounts
    
    
    144,979
    
    
    
    (36,819
    )
    
    
    108,160Long Term Interest Rate Contracts
    
    Equity in broker trading accounts
    
    
    336,419
    
    
    
    (43,933
    )
    
    
    292,486Forward Currency Contracts
    
    Net unrealized gain (loss) on forward currency contracts
    
    
    4,336,405
    
    
    
    (3,900,349
    )
    
    
    436,056Purchased Options on Forward Currency Contracts
    
    Options purchased, at fair value
    
    
    16,974
    
    
    
    0
    
    
    
    16,974Written Options on Forward Currency Contracts
    
    Options written, at fair value
    
    
    0
    
    
    
    (20,079
    )
    
    
    (20,079
    )Totals
    
    
    
    $
    5,902,579
    
    
    $
    (4,254,126
    )
    
    $
    1,648,453
 
 *
    
    Derivatives not designated as hedging instruments under ASC 815 Asset
    
    
    LiabilityDerivatives at
    
    
    Derivatives atStatement of Financial
    
    December 31, 2009
    
    
    December 31, 2009Type of Instrument *
    
    Condition Location
    
    Fair Value
    
    
    Fair Value
    
    
    NetAgricultural Contracts
    
    Equity in broker trading accounts
    
    $
    12,155
    
    
    $
    (15,206
    )
    
    $
    (3,051
    )Energy Contracts
    
    Equity in broker trading accounts
    
    
    19,804
    
    
    
    (1,325
    )
    
    
    18,479Metal Contracts
    
    Equity in broker trading accounts
    
    
    223,512
    
    
    
    (167,320
    )
    
    
    56,192Stock Indices Contracts
    
    Equity in broker trading accounts
    
    
    231,004
    
    
    
    (17,246
    )
    
    
    213,758Short-Term Interest Rate Contracts
    
    Equity in broker trading accounts
    
    
    0
    
    
    
    (100,836
    )
    
    
    (100,836
    )Long Term Interest Rate Contracts
    
    Equity in broker trading accounts
    
    
    43,376
    
    
    
    (283,637
    )
    
    
    (240,261
    )Forward Currency Contracts
    
    Net unrealized gain (loss) on  forward currency contracts
    
    
    1,170,194
    
    
    
    (1,435,347
    )
    
    
    (265,153
    )Purchased Options on Forward Currency Contracts
    
    Options purchased, at fair value
    
    
    70,935
    
    
    
    0
    
    
    
    70,935Written Options on Forward Currency Contracts
    
    Options written, at fair value
    
    
    0
    
    
    
    (19,069
    )
    
    
    (19,069
    )Totals
    
    
    
    $
    1,770,980
    
    
    $
    (2,039,986
    )
    
    $
    (269,006
    )
 
 *
    
    Derivatives not designated as hedging instruments under ASC 815 - 16 -




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##### 



Trading Revenue for
    
    
    Trading Revenue forthe Three Months Ended
    
    
    the Three Months EndedType of Instrument
    
    September 30, 2010
    
    
    September 30, 2009Agricultural Contracts
    
    $
    809,450
    
    
    $
    (54,066
    )Energy Contracts
    
    
    (387,140
    )
    
    
    (348,610
    )Metal Contracts
    
    
    412,389
    
    
    
    323,513Stock Indices Contracts
    
    
    203,227
    
    
    
    573,997Short-Term Interest Rate Contracts
    
    
    168,479
    
    
    
    68,625Long Term Interest Rate Contracts
    
    
    912,696
    
    
    
    (246,329
    )Forward Currency Contracts
    
    
    525,615
    
    
    
    988,246Purchased Options on Forward Currency Contracts
    
    
    (149,660
    )
    
    
    (193,462
    )Written Options on Forward Currency Contracts
    
    
    108,544
    
    
    
    216,503Total
    
    $
    2,603,600
    
    
    $
    1,328,417
 Trading Revenue for
    
    
    Trading Revenue forthe Nine Months Ended
    
    
    the Nine Months EndedType of Instrument
    
    September 30, 2010
    
    
    September 30, 2009Agricultural Contracts
    
    $
    780,627
    
    
    $
    (54,066
    )Energy Contracts
    
    
    (1,454,799
    )
    
    
    (318,926
    )Metal Contracts
    
    
    104,457
    
    
    
    13,348Stock Indices Contracts
    
    
    (1,572,962
    )
    
    
    (477,865
    )Short-Term Interest Rate Contracts
    
    
    1,878,969
    
    
    
    (144,120
    )Long Term Interest Rate Contracts
    
    
    2,162,181
    
    
    
    (488,244
    )Forward Currency Contracts
    
    
    489,656
    
    
    
    277,613Purchased Options on Forward Currency Contracts
    
    
    (677,262
    )
    
    
    (371,356
    )Written Options on Forward Currency Contracts
    
    
    489,096
    
    
    
    846,274Total
    
    $
    2,199,963
    
    
    $
    (717,342
    )
 Trading Revenue for
    
    
    Trading Revenue forthe Three Months Ended
    
    
    the Three Months EndedLine Item in the Statement of Operations
    
    September 30, 2010
    
    
    September 30, 2009Futures trading gains (losses):Realized
    
    $
    1,232,550
    
    
    $
    273,086Change in unrealized
    
    
    886,551
    
    
    
    44,044Forward currency and options on forward currency trading gains (losses):Realized
    
    
    (242,079
    )
    
    
    (69,988
    )Change in unrealized
    
    
    726,578
    
    
    
    1,081,275Total
    
    $
    2,603,600
    
    
    $
    1,328,417
 Trading Revenue for
    
    
    Trading Revenue forthe Nine Months Ended
    
    
    the Nine Months EndedLine Item in the Statement of Operations
    
    September 30, 2010
    
    
    September 30, 2009Futures trading gains (losses):Realized
    
    $
    627,252
    
    
    $
    (1,542,590
    )Change in unrealized
    
    
    1,271,221
    
    
    
    72,717Forward currency and options on forward currency trading gains (losses):Realized
    
    
    (400,697
    )
    
    
    (209,179
    )Change in unrealized
    
    
    702,187
    
    
    
    961,710Total
    
    $
    2,199,963
    
    
    $
    (717,342
    )
 - 17 -




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##### 



For the three months ended September 30, 2010 and 2009, the monthly average of futures
contracts bought and sold was approximately 1,650 and 1,000 respectively, and the monthly
average of notional value of forward currency and options on forward currency contracts was
$243,300,000 and $186,300,000 respectively.
 For the nine months ended September 30, 2010 and 2009, the monthly average of futures contracts
bought and sold was approximately 1,750 and 800 respectively, and the monthly average of
notional value of forward currency and options on forward currency contracts was $218,500,000
and $158,300,000 respectively.
 Open contracts generally mature within twelve months; as of September 30, 2010, the latest
maturity date for open futures contracts is December 2011, the latest maturity date for open
forward currency contracts is December 2010, and the latest expiry date for options on forward
currency contracts is October 2010. However, the Trust intends to close all futures and foreign
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s attempt 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 precalculating stop-loss points at which systems will
signal to close open positions.
Campbell & Company controls the risk of the Trusts non-trading fixed income
instruments by limiting the duration of such instruments and requiring a minimum credit quality
of the issuers of those instruments.
 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
credit worthy. The unitholder bears 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 9. INDEMNIFICATIONS
 In the normal course of business, the Trust enters into contracts and agreements that contain a
variety of representations and warranties 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 10. INTERIM FINANCIAL STATEMENTS
 The statements of financial condition, including the condensed schedules of investments, as of
September 30, 2010 and December 31, 2009, the statements of operations and financial highlights
for the three months and nine months ended September 30, 2010 and 2009, and the statements of
cash flows and changes in unitholders capital (Net Asset Value) for the nine months ended
September 30, 2010 and 2009 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 September 30, 2010, and the results of operations
and financial highlights for the three months and nine months ended September 30, 2010 and 2009,
and cash flows and changes in unitholders capital (Net Asset Value) for the nine months ended
September 30, 2010 and 2009.
 Note 11. SUBSEQUENT EVENTS
 Management of the Trust has evaluated subsequent events through the date the financial
statements were filed. There are no subsequent events to disclose or record.
 - 18 -




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##### 



Item 2.
    
    Managements Discussion and Analysis of Financial Condition and
Results of Operations
 Introduction
   Critical Accounting Policies
   Capital Resources
   - 19 -




---



##### 



Liquidity
      - 20 -




---



##### 



Off-Balance Sheet Risk
    Disclosures About Certain Trading Activities that Include Non-Exchange Traded Contracts Accounted
for at Fair Value
  - 21 -




---



##### 



Results of Operations
  2010
  Sector
    
    % Gain (Loss)Interest Rates
    
    
    14.96
    %Currencies
    
    
    1.05Commodities
    
    
    (1.92
    )Stock Indices
    
    
    (5.89
    )8.20
    %
   - 22 -




---



##### 



- 23 -




---



##### 



- 24 -




---



##### 



2009
  Sector
    
    % Gain (Loss)Interest Rates
    
    
    2.57
    %Currencies
    
    
    (1.01
    )Commodities
    
    
    (1.09
    )Stock Indices
    
    
    (2.07
    )(1.60
    )%
   - 25 -




---



##### 



- 26 -




---



##### 



Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk
 Introduction
 Past Results Not Necessarily Indicative of Future Performance
   - 27 -




---



##### 



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).
     - 28 -




---



##### 



The Trusts Trading Value at Risk in Different Market Sectors
  September 30, 2010TradingMarket Sector
    
    Value at Risk*
    
    
    Gain/(Loss)**Interest Rates
    
    
    1.31
    %
    
    
    14.96
    %Stock Indices
    
    
    0.55
    %
    
    
    (5.89
    )%Commodities
    
    
    0.64
    %
    
    
    (1.92
    )%Currencies
    
    
    0.46
    %
    
    
    1.05
    %Aggregate/Total
    
    
    1.68
    %
    
    
    8.20
    %
 
 *
    
    -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 2010 year-to-date increase of 5.53%, approximately (2.94)% was due to brokerage fees,
operating costs and offering costs borne by the Trust, approximately 8.20% was due to trading gains
(before commissions) and approximately 0.27% was due to investment income. December 31, 2009TradingMarket Sector
    
    Value at Risk*
    
    
    Gain/(Loss)**Currencies
    
    
    0.90
    %
    
    
    3.41
    %Interest Rates
    
    
    0.68
    %
    
    
    (4.15
    )%Stock Indices
    
    
    0.45
    %
    
    
    (0.68
    )%Commodities
    
    
    0.41
    %
    
    
    (0.32
    )%Aggregate/Total
    
    
    1.62
    %
    
    
    (1.74
    )%
 - 29 -




---



##### 



*
    
    - 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, 2009, approximately (1.74)% was due to trading
losses (before commissions) and approximately 0.15% due to investment income offset by
approximately (4.19)% due to brokerage fees, operating costs and offering costs borne by the Trust
offset by giving a net return of (5.78)%. 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.
  Non-Trading Risk
  - 30 -




---



##### 



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
  Energy
  - 31 -




---



##### 



Metals
  Agricultural
  Qualitative Disclosures Regarding Non-Trading Risk Exposure
  Foreign Currency Balances
  Fixed Income Securities
  Treasury Bill Positions Held for Margin Purposes
  Qualitative Disclosures Regarding Means of Managing Risk Exposure
  - 32 -




---



##### 



General
  Item 4. Controls and Procedures
  - 33 -




---



##### 



PART II-OTHER INFORMATION
 Item 1. Legal Proceedings.
  Item 1A. Risk Factors.
  Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
  Item 3. Defaults Upon Senior Securities.
  Item 4. (Removed and Reserved).
 Item 5. Other Information.
  Item 6. Exhibits and Reports on Form 8-K.
  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, Chief Financial Officer,
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, Chief Financial Officer,
pursuant to 18 U.S.C. Section 1350, as enacted by Section 906 of The
Sarbanes-Oxley Act of 2002.
   - 34 -




---



##### 



SIGNATURES
  CAMPBELL ALTERNATIVE ASSET TRUST
(Registrant)By:
    Campbell & Company, Inc.Managing OwnerDate:  November 15, 2010
    By:

/s/ Theresa D. BecksTheresa D. BecksChief Executive Officer - 35 -




---



##### 



EXHIBIT INDEX
 PageExhibit Number
    
    Description of Document
    
    Number31.01
    
    Certification by Chief Executive Officer
    
    E 2  E 331.02
    
    Certification by Chief Financial Officer
    
    E 4  E 532.01
    
    Certification by Chief Executive Officer
    
    E 632.02
    
    Certification by Chief Financial Officer
    
    E 7
 E 1