##### 



SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-K
  þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE
REQUIRED]
 For the Fiscal Year Ended December 31, 2007
 Commission
File Number 0-33311 and 2-84126
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
 For the transition period from  to
 CAMPBELL ALTERNATIVE ASSET TRUST
  DELAWARE
    
    52-2238521(State or other jurisdiction of
    
    (IRS Employer Identification Number)incorporation or organization)210 W. Pennsylvania AvenueTowson, Maryland
    
    21204Registrants
telephone number, including area code: (410) 296-3301
 None
  Units of Beneficial Interest
  o þ
 o þ
 þ o
 þ
  Large accelerated filer o
    
    Accelerated filer
o
    
    Non-accelerated filer
þ
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 o þ




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TABLE OF CONTENTS
 PagePART IITEM 1.
    
    BUSINESS
    
    1-2ITEM 1A.
    
    RISK FACTORS
    
    3-9ITEM 1B.
    
    UNRESOLVED STAFF COMMENTS
    
    
    10ITEM 2.
    
    PROPERTIES
    
    
    10ITEM 3.
    
    LEGAL PROCEEDINGS
    
    
    10ITEM 4.
    
    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
    
    
    10PART IIITEM 5.
    
    MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER OF PURCHASES OF EQUITY SECURITIES
    
    
    10ITEM 6.
    
    SELECTED FINANCIAL DATA
    
    10-11ITEM 7.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
    
    12-19ITEM 7A.
    
    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
    
    19-24ITEM 8.
    
    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
    
    
    24ITEM 9.
    
    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
    
    
    24ITEM 9A.
    
    CONTROLS AND PROCEDURES
    
    
    25ITEM 9A(T).
    
    CONTROLS AND PROCEDURES
    
    24-25ITEM 9B.
    
    OTHER INFORMATION
    
    
    25PART IIIITEM 10.
    
    DIRECTORS AND EXECUTIVE OFFICERS OF AND CORPORATE GOVERANCE
    
    26-28ITEM 11.
    
    EXECUTIVE COMPENSATION
    
    
    28ITEM 12.
    
    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
    
    
    28ITEM 13.
    
    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
    
    
    29ITEM 14.
    
    PRINCIPAL ACCOUNTANT FEES AND SERVICES
    
    
    29PART IVITEM 15.
    
    EXHIBITS, FINANCIAL STATEMENT SCHEDULES
    
    29-30SIGNATURESCERTIFICATIONSDOCUMENTS INCORPORATED BY REFERENCE  Prospectus dated March 17, 2008 included within the
Registration Statement on Post-Effective Amendment No. 10 to Form S-1 (File No. 333-74014),
incorporated by reference into Parts I, II, III and IV.
 i




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PART I
 Item 1.
    
    Business
       Regulation
  1




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##### 



Operations
     http://www.sec.gov
 2




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##### 



Item 1A. Risk Factors
 Market Risks
 You Could Possibly Lose Your Total Investment in the Trust
  The Trust Is Highly Leveraged
  Your Investment Could Be Illiquid
     Forward and Option Transactions are Over-the-Counter, are Not Regulated and are Subject to Credit
Risk
 3




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Options on Futures and Over-the-Counter Contracts are Speculative and Highly Leveraged
  An Investment in the Trust May Not Diversify an Overall Portfolio
  Trading Risks
 Campbell & Company Analyzes Primarily Technical Market Data
  4




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Increased Competition from Other Trend-Following Traders Could Reduce Campbell & Companys
Profitability
  Speculative Position Limits May Alter Trading Decisions for the Trust
  Increase in Assets Under Management May Make Profitable Trading More Difficult
  Investors Will Not Be Able to Review the Trusts Holdings on a Daily Basis
 i.e.
 5




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Tax Risks
 Investors are Taxed Based on Their Share of Trust Income and Gain
   Tax Could be Due from Investors on Their Share of the Trusts Ordinary Income Despite Overall
Losses
  There Could be a Limit on the Deductibility of Management and Performance Fees
  Other Risks
 Fees and Commissions are Charged Regardless of Profitability and are Subject to Change
  The Futures Broker Could Fail and Has Been Subject to Disciplinary Action
  6




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Investors Must Not Rely on the Past Performance of Either Campbell & Company or the Trust in
Deciding Whether to Buy Units
  Parties to the Trust Have Conflicts of Interest
     There Are No Independent Experts Representing Investors
  The Trust Places Significant Reliance on Campbell & Company
  The Trust Could Terminate Before Expiration of its Stated Term
  7




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##### 



The Trust Is Not a Regulated Investment Company
  Proposed Regulatory Change Is Impossible to Predict
  Forwards, Options, Swaps, Hybrids and Other Derivatives Are Not Subject to CFTC Regulation
  The Trust is Subject to Foreign Market Credit and Regulatory Risk
  The Trust is Subject to Foreign Exchange Risk
  8




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##### 



Transfers Could be Restricted
  A Single-Advisor Fund May Be More Volatile Than a Multi-Advisor Fund
  The Performance Fee Could be an Incentive to Make Riskier Investments
  The Trust May Distribute Profits to Unitholders at Inopportune Times
  Potential Inability to Trade or Report Due to Systems Failure
  Potential Disruption or Inability to Trade Due to a Failure to Receive Timely and Accurate Market
Data from Third Party Vendors
   9




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##### 



Item 1B. Unresolved Staff Comments
  Item 2. Properties
  Item 3. Legal Proceedings
  Item 4. Submission of Matters to a Vote of Security Holders
  PART II
 Item 5.
    
    Market for Registrants Common Equity , Related Stockholder Matters and Issuer
Purchases of Equity Securities
    Item 6. Selected Financial Data
  For the Years Ended December 31,2007
    
    2006
    
    2005
    
    2004
    
    2003Total Assets
    
    $
    37,566,581
    
    
    $
    43,619,109
    
    
    $
    40,221,009
    
    
    $
    35,225,567
    
    
    $
    33,165,538Total Unitholders Capital
    
    
    36,288,756
    
    
    
    42,871,715
    
    
    
    39,856,467
    
    
    
    34,955,385
    
    
    
    32,821,418Total Net Trading Gain (Loss)
(includes of brokerage commissions)
    
    
    (4,880,807
    )
    
    
    2,971,747
    
    
    
    5,125,300
    
    
    
    5,125,392
    
    
    
    9,269,009Net Income (Loss)
    
    
    (4,555,069
    )
    
    
    3,250,791
    
    
    
    4,799,375
    
    
    
    3,249,651
    
    
    
    7,263,843Net Income (Loss) Per Managing
Owner and Other
Unitholder Unit*
    
    
    (195.52
    )
    
    
    135.31
    
    
    
    204.75
    
    
    
    135.90
    
    
    
    292.55Increase (Decrease) in Net Asset Value
per Managing Owner and
Other Unitholder Unit
    
    
    (211.94
    )
    
    
    123.59
    
    
    
    190.55
    
    
    
    123.76
    
    
    
    253.05
 
 *
    
    - Based on weighted average number of units outstanding during the period. 10




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##### 



1st Qtr.
    
    2nd Qtr.
    
    3rd Qtr.
    
    4th Qtr.2007
    
    2007
    
    2007
    
    2007Total Net Trading
Gain (Loss)
(net of brokerage
commissions)
    
    $
    (2,580,343
    )
    
    $
    5,168,121
    
    
    $
    (6,436,720
    )
    
    $
    (1,031,865
    )Net Income (Loss)
    
    
    (2,393,538
    )
    
    
    5,073,257
    
    
    
    (6,263,229
    )
    
    
    (971,559
    )Net Income (Loss)
per Managing Owner
and Other Unitholder
Unit *
    
    
    (101.57
    )
    
    
    218.05
    
    
    
    (270.61
    )
    
    
    (41.85
    )Increase (Decrease) in
Net Asset Value per
Managing Owner and
Other Unitholder Unit
    
    
    (105.72
    )
    
    
    214.11
    
    
    
    (274.75
    )
    
    
    (45.58
    )Net Asset Value per
Managing Owner and
Other Unitholder Unit
at the End of the Period
    
    
    1,709.81
    
    
    
    1,923.92
    
    
    
    1,649.17
    
    
    
    1,603.59
 1st Qtr.
    
    2nd Qtr.
    
    3rd Qtr.
    
    4th Qtr.2006
    
    2006
    
    2006
    
    2006Total Net Trading
Gain (Loss)
(net of brokerage
commissions)
    
    $
    2,254,666
    
    
    $
    (2,317,933
    )
    
    $
    (1,229,377
    )
    
    $
    4,264,391Net Income (Loss)
    
    
    1,997,584
    
    
    
    (2,159,035
    )
    
    
    (1,034,081
    )
    
    
    4,446,323Net Income (Loss)
per Managing Owner
and Other Unitholder
Unit *
    
    
    83.93
    
    
    
    (89.15
    )
    
    
    (42.70
    )
    
    
    186.33Increase (Decrease) in
Net Asset Value per
Managing Owner and
Other Unitholder Unit
    
    
    80.03
    
    
    
    (93.11
    )
    
    
    (46.52
    )
    
    
    183.19Net Asset Value per
Managing Owner and
Other Unitholder Unit
at the End of the Period
    
    
    1,771.97
    
    
    
    1,678.86
    
    
    
    1,632.34
    
    
    
    1,815.53
 
 *
    
    - Based on weighted average number of units outstanding during the period. 11




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##### 



Item 7.
    
    Managements Discussion and Analysis of Financial Condition and
Results of Operations.
 Introduction
  Critical Accounting Policies
   Capital Resources
  Liquidity
  12




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##### 



i.e.
   Results of Operations
  2007
  Sector
    
    % Gain (Loss)Interest Rates
    
    
    1.10
    %Metals
    
    
    (0.73
    )Energy
    
    
    (1.99
    )Stock Indices
    
    
    (2.53
    )Currencies
    
    
    (7.17
    )(11.32)
    %
  13




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14




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2006
  Sector
    
    % Gain (Loss)Stock Indices
    
    
    6.98
    %Interest Rates
    
    
    3.07Currencies
    
    
    2.22Metals
    
    
    2.07Energy
    
    
    (6.58
    )7.76
    %
    15




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##### 



2005
  Sector
    
    % Gain (Loss)Interest Rates
    
    
    6.65
    %Currencies
    
    
    6.12Energy
    
    
    3.31Metals
    
    
    1.12Stock Indices
    
    
    (2.73
    )14.47
    %
   16




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17




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Off-Balance Sheet Risk
   18




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##### 



Disclosures About Certain Trading Activities that Include Non-Exchange Traded Contracts
Accounted for at Fair Value
  Item 7A. Quantitative and Qualitative Disclosures About Market Risk
 Introduction
 Past Results Not Necessarily Indicative of Future Performance
    Standard of Materiality
  19




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##### 



Quantifying the Trusts Trading Value at Risk
 Quantitative Forward-Looking Statements
 The following quantitative disclosures regarding the Trusts market risk exposures
contain forward-looking statements within the meaning of the safe harbor from civil
liability provided for such statements by the Private Securities Litigation Reform Act of 1995
(set forth in Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934). All quantitative disclosures in this section are deemed to be
forward-looking statements for purposes of the safe harbor, except for statements of
historical fact (such as the dollar amount of maintenance margin required for market risk
sensitive instruments held at the end of the reporting period).
       The Trusts Trading Value at Risk in Different Market Sectors
  20




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December 31, 2007TradingMarket Sector
    
    Value at Risk*
    
    Gain/(Loss)**Currencies
    
    
    1.48
    %
    
    
    (7.17
    )%Stock Indices
    
    
    0.51
    %
    
    
    (2.53
    )%Interest Rates
    
    
    0.42
    %
    
    
    1.10
    %Metals
    
    
    0.14
    %
    
    
    (0.73
    )%Energy
    
    
    0.08
    %
    
    
    (1.99
    )%Aggregate/Total
    
    
    1.72
    %
    
    
    (11.32
    )%
 
 *
    
    -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, 2007, approximately 11.32% was due to
trading losses (before commissions) and approximately (4.91)% due to brokerage fees, performance
fees and operating and offering costs borne by the Trust offset by approximately 4.56% of
interest income giving a net return of (11.67)%. December 31, 2006TradingMarket Sector
    
    Value at Risk*
    
    Gain/(Loss)**Stock Indices
    
    
    0.75
    %
    
    
    6.98
    %Currencies
    
    
    0.70
    %
    
    
    2.22
    %Energy
    
    
    0.39
    %
    
    
    (6.58
    )%Interest Rates
    
    
    0.59
    %
    
    
    3.07
    %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%. 21




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##### 



December 31, 2005TradingMarket Sector
    
    Value at Risk*
    
    Gain/(Loss)**Currencies
    
    
    1.48
    %
    
    
    6.12
    %Long-Term Interest Rates
    
    
    0.79
    %
    
    
    1.89
    %Energy
    
    
    0.64
    %
    
    
    3.31
    %Short-Term Interest Rates
    
    
    0.62
    %
    
    
    4.76
    %Stock Indices
    
    
    0.38
    %
    
    
    (2.73
    )%Metals
    
    
    0.06
    %
    
    
    1.12
    %Aggregate/Total
    
    
    2.47
    %
    
    
    14.47
    %
 
 *
    
    -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, 2005, approximately 14.47% was due to
trading gains (before commissions), approximately 2.94% was due interest income offset by
approximately 4.72% due to brokerage fees, performance fees and operating and offering costs
borne by the Trust giving a net return of 12.69%. Material Limitations of Value at Risk as an Assessment of Market Risk
  1)
    
    Past changes in market risk factors will not always result in accurate predictions of
the distributions and correlations of future market movements;2)
    
    Changes in portfolio value caused by market movements may differ from those of the VaR
model;3)
    
    VaR results reflect past trading positions while future risk depends on future
positions;4)
    
    VaR using a one day time horizon does not fully capture the market risk of positions
that cannot be liquidated or hedged within one day; and5)
    
    The historical market risk factor data for VaR estimation may provide only limited
insight into losses that could be incurred under certain unusual market movements.
  Non-Trading Risk
  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.
 22




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Currencies
 i.e.,
 Interest Rates
  Stock Indices
  Energy
  Metals
  Qualitative Disclosures Regarding Non-Trading Risk Exposure
  23




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Foreign Currency Balances
  Treasury Bill Positions
  Qualitative Disclosures Regarding Means of Managing Risk Exposure
   General
  Item 8. Financial Statements and Supplementary Data
  Item 9.
    
    Changes in and Disagreements with Accountants on Accounting and Financial
Disclosure
  Item 9A.
    
    Controls and Procedures
  24




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Item 9A (T).
    
    Controls and Procedures
 Managements Annual Report on Internal Control over Financial Reporting
   
    
    Pertain to the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the Trust;
    
    Provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that the partnerships transactions are being made only in accordance with
authorizations of Management and;
    
    Provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of the Trusts assets that could have a material effect on
the financial statements.
    Item 9B.
    
    Other Information
  25




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PART III
 Item 10. Directors and Executive Officers of the Registrant
  G. William Andrews Vice
President: Director of Operations
 Theresa D. Becks President and Chief Executive Officer Chief Financial Officer, Treasurer Secretary Director
 D. Keith Campbell Chairman of the Board of Directors
 Bruce L. Cleland Vice Chairman of the Board of Directors President
 26




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##### 



Gregory T. Donovan Senior Vice President of Accounting and Finance
 Michael S. Harris Vice President and Director
of Trading
 Michael J. Hebrank Chief Technology Officer
 Kevin M. Heerdt Chief
Investment Officer and Director of Research
 James M. Little Executive Vice President-Business Development Director The Handbook of Financial Futures,
 27




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##### 



Thomas P. Lloyd General Counsel Executive Vice President-Legal and Compliance
 Audit Committee Financial Expert
  Code of Ethics
  Item 11. Executive Compensation
  Item 12.
    
    Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
 (a)
    
    Security Ownership of Certain Beneficial Owners. As of December 31, 2007, no
Units of Beneficial Interest are owned or held by an officer of Campbell & Company. As
of December 31, 2007, the following beneficial owners owned more than five percent of
the Units:
 Name of Beneficial
    
    Number of Units
    
    Percentage ofOwner
    
    Owned
    
    TrustCampbell & Company, Inc. 401(k) Plan
    
    
    13,567.544
    
    
    
    59.95
    %Campbell & Company, Inc.
    
    
    1,413.580
    
    
    
    6.25
    %
 (b)
    
    Security Ownership of Management. As of December 31, 2007, Campbell & Company
owned 1,413.580 Units of Managing Owner Interest having a value of $2,266,803. Units
of Managing Owner Interest will always be owned by Campbell & Company in its capacity
as managing owner.
 28




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##### 



Item 13. Certain Relationships and Related Transactions
  Item 14. Principal Accounting Fees and Services
  (a)
    
    Audit FeesThe aggregate fees billed for professional services rendered by the principle accountant
for the audit of the Trusts annual financial statements, for review of financial
statements included in the Trusts Forms 10-Q and other services normally provided in
connection with regulatory filings for the years ended December 31, 2007 and 2006 were
$64,000 and $66,115, respectively.(b)
    
    Audit Related FeesNone.(c)
    
    Tax FeesNone.(d)
    
    All Other FeesNone.(e)
    
    The Board of Directors of Campbell & Company approved all of the services
described above. The Board of Directors has determined that the payments made to its
independent accountants for these services are compatible with maintaining such
auditors independence. The Board of Directors explicitly pre-approves all audit and
non-audit services and all engagement fees and terms.
 PART IV
 Item 15. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
 (a)
    
    The Following documents are filed as part of this report:
 (1)
    
    See Financial Statements beginning on page 32 hereof.(2)
    
    Schedules:Financial statement schedules have been omitted because they are not
included in the financial statements or notes hereto applicable or because
equivalent information has been included in the financial statements or
notes thereto.
 29




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##### 



(3)
    
    Exhibit
 Exhibit Number
    
    Description of Document1.01
    
    Selling Agreement among the Registrant, Campbell & Company,
PaineWebber Incorporated and the Selling Agent. (Incorporated by reference to
the respective exhibit to the Pre-Effective Amendment No. 2 to the Registrants
Registration Statement on Form S-1 (No. 333-37548) filed on February 26, 2001).1.02
    
    Additional Selling Agreement among the Registrant, Campbell &
Company and the Additional Selling Agent. (Incorporated by reference to the
respective exhibit to the Pre-Effective Amendment No. 2 to the Registrants
Registration Statement on Form S-1 (No. 333-37548) filed on February 26, 2001).3.01
    
    Declaration of Trust and Trust Agreement of the Registrant
dated May 1, 2000. (Incorporated by reference to the respective exhibit to the
Registrants Registration Statement on Form S-1 (No. 333-37548) filed on May
22, 2000).3.02
    
    Certificate of Trust of the Registrant. (Incorporated by
reference to the respective exhibit to the Pre-Effective Amendment No. 1 to the
Registrants Registration Statement on Form S-1 (No. 333-37548) filed on
November 9, 2000).3.03
    
    Amended and Restated Declaration of Trust and Trust Agreement
of the Registrant. (Incorporated by reference to the respective exhibit to the
Registrants Registration Statement on Post-Effective Amendment No. 10 to Form
S-1 (No. 333-74014) filed on March 17, 2008).10.01
    
    Customer Agreement between the Registrant and Paine Webber
Incorporated. (Incorporated by reference to the respective exhibit to the
Pre-Effective Amendment No. 2 to the Registrants Registration Statement on
Form S-1 (No. 333-37548) filed on February 26, 2001).10.02
    
    Subscription Agreement and Power of Attorney. (Incorporated
by reference to the respective exhibit to the Registrants Registration
Statement on Post-Effective Amendment No. 10 to Form S-1 (No. 333-74014) filed
on March 17, 2008).10.03
    
    Escrow Agreement between the Registrant and Mercantile Safe
Deposit & Trust Company. (Incorporated by reference to the respective exhibit
to the Pre-Effective Amendment No. 2 to the Registrants Registration Statement
on Form S-1 (No. 333-37548) filed on February 26, 2001).10.04
    
    International Swap Dealers Association, Inc. Master Agreement
between the Registrant and ABN AMRO Bank, N.V., Chicago Branch. (Incorporated
by reference to the respective exhibit to the Registrants Registration
Statement on Post-Effective Amendment No. 1 to Form S-1 (No. 333-74014) filed
on December 12, 2002).10.05
    
    International Swap Dealers Association, Inc. Master Agreement
between the Registrant and Deutsche Bank AG. (Incorporated by reference to the
respective exhibit to the Pre-Effective Amendment No. 2 to the Registrants
Registration Statement on Form S-1 (No. 333-37548) filed on February 26, 2001.)31.01
    
    Certification of Theresa D. Becks, Chief Executive Officer,
pursuant to Rules 13a-14 and 15d-14 of the Securities 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 Securities
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 on Form 8-K
  30




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##### 



SIGNATURES
  CAMPBELL ALTERNATIVE ASSET TRUSTBy:
    CAMPBELL & COMPANY, INC.Managing OwnerBy:
    /s/ Theresa D. BecksTheresa D. BecksChief Executive Officer, President, Chief Financial Officer,
Secretary, Treasurer and Director  Signature
    
    Capacity/s/ D. Keith CampbellD. Keith Campbell
    
    Chairman of the Board of Directors/s/ Bruce L. ClelandBruce L. Cleland
    
    Vice Chairman of the Board of Directors/s/ Theresa D. BecksTheresa D. Becks
    
    Chief Executive Officer, President, Chief Financial
Officer, Secretary, Treasurer and Director/s/ James M. LittleJames M. Little
    
    Executive Vice President and Director/s/ Gregory T. DonovanGregory T. Donovan
    
    Senior Vice President of Accounting and Finance
 31




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CAMPBELL ALTERNATIVE ASSET TRUST
 ANNUAL REPORT
  32




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##### 



CAMPBELL ALTERNATIVE ASSET TRUST
  PAGESReports of Independent Registered Public Accounting FirmsDeloitte & Touche LLP
    
    
    34Financial StatementsCondensed Schedules of Investments
December 31, 2007 and 2006
    
    35-38Statements of Financial Condition
December 31, 2007 and 206
    
    
    39Statements of Operations For the Years
Ended December 31, 2007, 2006 and 2005
    
    
    40Statements of Cash Flows For the Years
Ended December 31, 2007, 2006 and 2005
    
    
    41Statements of Changes in Unitholders Capital (Net Asset Value)
For the Years Ended December 31, 2007, 2006 and 2005
    
    
    42Financial Highlights For the Years Ended December 31, 2007, 2006 and 2005
    
    
    43Notes to Financial Statements
    
    44-48
 33




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
     
 34




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##### 



Campbell Alternative Asset Trust
 Condensed Schedule of Investments
 December
 UNITED STATES GOVERNMENT SECURITIES*Maturity
    
    Maturity
    
    
    
    
    
    
    
    % of NetFace Value
    
    Date
    
    Description
    
    Values ($)
    
    
    Asset Value$12,000,000
    
    02/07/2008
    
    U.S. Treasury Bills
    
    $
    11,953,750
    
    
    
    32.94
    %$10,000,000
    
    02/28/2008
    
    U.S. Treasury Bills
    
    $
    9,953,278
    
    
    
    27.43
    %$  8,000,000
    
    01/03/2008
    
    U.S. Treasury Bills
    
    $
    7,998,289
    
    
    
    22.04
    %$  4,000,000
    
    01/24/2008
    
    U.S. Treasury Bills
    
    $
    3,990,442
    
    
    
    11.00
    %Total United States government securities 
(cost, including accrued interest,  $33,895,759)
    
    $
    33,895,759
    
    
    
    93.41
    %LONG FUTURES CONTRACTSDescriptionEnergy
    
    
    
    
    
    $
    89,355
    
    
    
    0.25
    %Metals
    
    
    
    
    
    $
    37,694
    
    
    
    0.10
    %Stock indices

    
    $
    105,504
    
    
    
    0.29
    %Short-term interest rates
    
    $
    46,265
    
    
    
    0.13
    %Long-term interest rates
    
    $
    37,652
    
    
    
    0.10
    %Total long futures contracts
    
    $
    316,470
    
    
    
    0.87
    %SHORT FUTURES CONTRACTSDescriptionEnergy
    
    
    
    
    
    $
    (72,904
    )
    
    
    (0.20
    )%Metals
    
    
    
    
    
    $
    (9,992
    )
    
    
    (0.03
    )%Stock indices
    
    $
    (4,422
    )
    
    
    (0.01
    )%Short-term interest rates
    
    $
    (48,238
    )
    
    
    (0.13
    )%Long-term interest rates
    
    $
    16,596
    
    
    
    0.05
    %Total short futures contracts
    
    $
    (118,960
    )
    
    
    (0.32
    )%Total futures contracts
    
    $
    197,510
    
    
    
    0.55
    %
 See Accompanying Notes to Financial Statements.




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##### 



Campbell Alternative Asset Trust  Condensed Schedule of Investments  December
 % of NetValues ($)
    
    
    Asset ValueFORWARD CURRENCY CONTRACTSDescriptionVarious long forward currency contracts
    
    $
    (604,943
    )
    
    
    (1.67
    )%Various short forward currency contracts
    
    $
    (205,499
    )
    
    
    (0.57
    )%Total forward currency contracts
    
    $
    (810,442
    )
    
    
    (2.24
    )%PURCHASED OPTIONS ON FORWARD CURRENCY CONTRACTSDescriptionPurchased options on forward currency contracts

(premiums paid  $74,159)
    
    $
    50,330
    
    
    
    0.14
    %WRITTEN OPTIONS ON FORWARD CURRENCY CONTRACTDescriptionWritten options on forward currency contracts

(premiums received  $41,845)
    
    $
    (19,355
    )
    
    
    (0.05
    )%
 
 *
    
    Pledged as collateral for the trading of futures, forward and option positions. See Accompanying Notes to Financial Statements.




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##### 



Campbell Alternative Asset Trust
 Condensed Schedule of Investments
 December
 UNITED STATES GOVERNMENT SECURITIES*Maturity
    
    Maturity
    
    
    
    
    
    
    
    % of NetFace Value
    
    Date
    
    Description
    
    Values ($)
    
    
    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 CONTRACTSDescriptionEnergy
    
    
    
    
    
    $
    (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 CONTRACTSDescriptionEnergy
    
    
    
    
    
    $
    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
    %
 See Accompanying Notes to Financial Statements.




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##### 



Campbell Alternative Asset Trust  Condensed Schedule of Investments  December
 % of NetValues ($)
    
    
    Asset ValueFORWARD CURRENCY CONTRACTSDescriptionVarious 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 CONTRACTSDescriptionPurchased options on forward currency contracts

(premiums paid  $29,775)
    
    $
    35,454
    
    
    
    0.08
    %WRITTEN OPTIONS ON FORWARD CURRENCY CONTRACTSDescriptionWritten options on forward currency
contracts 
(premiums received 
$17,336)
    
    $
    (16,186
    )
    
    
    (0.03
    )%
 
 *
    
    Pledged as collateral for the trading of futures, forward and option positions. See Accompanying Notes to Financial Statements.




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##### 



Campbell Alternative Asset Trust  Statements of Financial Condition  December
 2007
    
    
    2006ASSETSEquity in broker trading accountsCash
    
    $
    2,538,672
    
    
    $
    3,198,569United States government securities
    
    
    29,905,317
    
    
    
    30,062,122Net unrealized gain on open futures contracts
    
    
    197,510
    
    
    
    1,082,948Total equity in broker trading accounts
    
    
    32,641,499
    
    
    
    34,343,639Cash
    
    
    1,652,920
    
    
    
    2,904,481United States government securities
    
    
    3,990,442
    
    
    
    4,485,165Options purchased, at fair value

(premiums paid $74,159 and $29,775, respectively)
    
    
    50,330
    
    
    
    35,454Net unrealized gain (loss) on open forward
currency contracts
    
    
    (810,442
    )
    
    
    1,416,954Interest receivable
    
    
    7,894
    
    
    
    20,552Subscriptions receivable
    
    
    33,938
    
    
    
    412,864Total assets
    
    $
    37,566,581
    
    
    $
    43,619,109LIABILITIESAccounts payable
    
    $
    38,549
    
    
    $
    67,122Brokerage fee
    
    
    37,041
    
    
    
    50,122Options written, at fair value

(premiums received $41,845 and $17,336, respectively)
    
    
    19,355
    
    
    
    16,186Accrued commissions and other trading fees
on open contracts
    
    
    7,946
    
    
    
    14,948Offering costs payable
    
    
    11,697
    
    
    
    15,828Redemptions payable
    
    
    1,163,237
    
    
    
    583,188Total liabilities
    
    
    1,277,825
    
    
    
    747,394UNITHOLDERS CAPITAL (Net Asset Value)Managing Owner  1,413.580 units outstanding at
December 31, 2007 and December 31, 2006
    
    
    2,266,803
    
    
    
    2,566,397Other Unitholders  21,216.063 and 22,200.336 units outstanding at
December 31, 2007 and December 31, 2006
    
    
    34,021,953
    
    
    
    40,305,318Total unitholders capital (Net Asset Value)
    
    
    36,288,756
    
    
    
    42,871,715Total liabilities and unitholders capital (Net Asset Value)
    
    $
    37,566,581
    
    
    $
    43,619,109
 See Accompanying Notes to Financial Statements.




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##### 



Campbell Alternative Asset Trust  Statements of Operations  For the Years Ended December
 2007
    
    
    2006
    
    
    2005TRADING GAINS (LOSSES)Futures trading gains (losses)Realized
    
    $
    (784,118
    )
    
    $
    1,005,543
    
    
    $
    3,728,183Change in unrealized
    
    
    (885,438
    )
    
    
    1,243,608
    
    
    
    (676,070
    )Brokerage commissions
    
    
    (72,611
    )
    
    
    (76,571
    )
    
    
    (110,081
    )Net gain (loss) from futures trading
    
    
    (1,742,167
    )
    
    
    2,172,580
    
    
    
    2,942,032Forward currency and options on forward
currency trading gains (losses)Realized
    
    
    (874,349
    )
    
    
    (1,928,500
    )
    
    
    2,977,676Change in unrealized
    
    
    (2,235,565
    )
    
    
    2,748,647
    
    
    
    (783,292
    )Brokerage commissions
    
    
    (28,726
    )
    
    
    (20,980
    )
    
    
    (11,116
    )Net gain (loss) from forward currency and
options on forward currency trading
    
    
    (3,138,640
    )
    
    
    799,167
    
    
    
    2,183,268Total net trading gain (loss)
    
    
    (4,880,807
    )
    
    
    2,971,747
    
    
    
    5,125,300INTEREST INCOME NET OF EXPENSESIncomeInterest income
    
    
    1,850,313
    
    
    
    1,921,132
    
    
    
    1,086,132ExpensesBrokerage fee
    
    
    1,157,288
    
    
    
    1,171,323
    
    
    
    1,064,610Performance fee
    
    
    270,167
    
    
    
    370,369
    
    
    
    257,993Operating expenses
    
    
    97,120
    
    
    
    100,396
    
    
    
    89,454Total expenses
    
    
    1,524,575
    
    
    
    1,642,088
    
    
    
    1,412,057Interest income net of expenses
    
    
    325,738
    
    
    
    279,044
    
    
    
    (325,925
    )NET INCOME (LOSS)
    
    $
    (4,555,069
    )
    
    $
    3,250,791
    
    
    $
    4,799,375NET INCOME (LOSS) PER MANAGING OWNER AND OTHER
UNITHOLDERS UNIT (based on weighted average number
of units outstanding during the year)
    
    $
    (195.52
    )
    
    $
    135.31
    
    
    $
    204.75INCREASE (DECREASE) IN NET ASSET VALUE PER MANAGING
OWNER AND OTHER UNITHOLDERS UNIT
    
    $
    (211.94
    )
    
    $
    123.59
    
    
    $
    190.55
 See Accompanying Notes to Financial Statements.




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##### 



Campbell Alternative Asset Trust  Statements of Cash Flows  For the Years Ended December
 2007
    
    
    2006
    
    
    2005Cash flows from (for) operating activitiesNet income (loss)
    
    $
    (4,555,069
    )
    
    $
    3,250,791
    
    
    $
    4,799,375Adjustments to reconcile net income (loss) to
net cash from (for) operating activitiesNet change in unrealized
    
    
    3,121,003
    
    
    
    (3,992,255
    )
    
    
    1,459,362(Increase) decrease in restricted cash
    
    
    0
    
    
    
    1,873,271
    
    
    
    1,902,751(Increase) decrease in option premiums paid
    
    
    (44,384
    )
    
    
    (29,775
    )
    
    
    0Increase (decrease) in option premiums received
    
    
    24,509
    
    
    
    17,336
    
    
    
    0(Increase) decrease in interest receivable
    
    
    12,658
    
    
    
    6,124
    
    
    
    (4,820
    )Increase (decrease) in accounts payable and
accrued expenses
    
    
    (48,656
    )
    
    
    (60,394
    )
    
    
    97,365Net maturities (purchases) of investments in
United States government securities
    
    
    651,527
    
    
    
    (4,717,011
    )
    
    
    (6,624,807
    )Net cash from (for) operating activities
    
    
    (838,412
    )
    
    
    (3,651,913
    )
    
    
    1,629,226Cash flows from (for) financing activitiesAddition of units
    
    
    2,880,078
    
    
    
    2,123,429
    
    
    
    2,050,730Redemption of units
    
    
    (3,583,534
    )
    
    
    (1,974,504
    )
    
    
    (1,616,559
    )Offering costs paid
    
    
    (369,590
    )
    
    
    (370,272
    )
    
    
    (335,469
    )Net cash from (for) financing activities
    
    
    (1,073,046
    )
    
    
    (221,347
    )
    
    
    98,702Net (increase) decrease in cash
    
    
    (1,911,458
    )
    
    
    (3,873,260
    )
    
    
    1,727,928Unristricted cashBeginning of year
    
    
    6,103,050
    
    
    
    9,976,310
    
    
    
    8,248,382End of year
    
    $
    4,191,592
    
    
    $
    6,103,050
    
    
    $
    9,976,310End of year cash consists of:Cash in broker trading accounts
    
    $
    2,538,672
    
    
    $
    3,198,569
    
    
    $
    2,607,477Cash
    
    
    1,652,920
    
    
    
    2,904,481
    
    
    
    7,368,833Total end of year cash
    
    $
    4,191,592
    
    
    $
    6,103,050
    
    
    $
    9,976,310
 See Accompanying Notes to Financial Statements.




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##### 



Campbell Alternative Asset Trust  Statements of Changes in Unitholders Capital net Asset Value  For the Years Ended December
 Unitholders CapitalManaging Owner
    
    
    Other Unitholders
    
    
    TotalUnits
    
    
    Amount
    
    
    Units
    
    
    Amount
    
    
    Units
    
    
    AmountBalances at
December 31,
2004
    
    
    1,413.580
    
    
    $
    2,122,335
    
    
    
    21,868.461
    
    
    $
    32,833,050
    
    
    
    23,282.041
    
    
    $
    34,955,385Net income (loss)
for the year
ended
December 31,
2005
    
    
    
    
    
    
    289,635
    
    
    
    
    
    
    
    4,509,740
    
    
    
    
    
    
    
    4,799,375Additions
    
    
    0.000
    
    
    
    0
    
    
    
    1,303.001
    
    
    
    2,050,730
    
    
    
    1,303.001
    
    
    
    2,050,730Redemptions
    
    
    0.000
    
    
    
    0
    
    
    
    (1,028.344
    )
    
    
    (1,612,829
    )
    
    
    (1,028.344
    )
    
    
    (1,612,829
    )Offering costs
    
    
    
    
    
    
    (20,277
    )
    
    
    
    
    
    
    (315,917
    )
    
    
    
    
    
    
    (336,194
    )Balances at
December 31,
2005
    
    
    1,413.580
    
    
    
    2,391,693
    
    
    
    22,143.118
    
    
    
    37,464,774
    
    
    
    23,556.698
    
    
    
    39,856,467Net income (loss)
for the year
ended
December 31,
2006
    
    
    
    
    
    
    196,472
    
    
    
    
    
    
    
    3,054,319
    
    
    
    
    
    
    
    3,250,791Additions
    
    
    0.000
    
    
    
    0
    
    
    
    1,463.895
    
    
    
    2,536,293
    
    
    
    1,463.895
    
    
    
    2,536,293Redemptions
    
    
    0.000
    
    
    
    0
    
    
    
    (1,406.677
    )
    
    
    (2,401,944
    )
    
    
    (1,406.677
    )
    
    
    (2,401,944
    )Offering costs
    
    
    
    
    
    
    (21,768
    )
    
    
    
    
    
    
    (348,124
    )
    
    
    
    
    
    
    (369,892
    )Balances at
December 31,
2006
    
    
    1,413.580
    
    
    
    2,566,397
    
    
    
    22,200.336
    
    
    
    40,305,318
    
    
    
    23,613.916
    
    
    
    42,871,715Net income (loss)
for the year
ended
December 31,
2007
    
    
    
    
    
    
    (277,422
    )
    
    
    
    
    
    
    (4,277,647
    )
    
    
    
    
    
    
    (4,555,069
    )Additions
    
    
    0.000
    
    
    
    0
    
    
    
    1,444.335
    
    
    
    2,501,152
    
    
    
    1,444.335
    
    
    
    2,501,152Redemptions
    
    
    0.000
    
    
    
    0
    
    
    
    (2,428.608
    )
    
    
    (4,163,583
    )
    
    
    (2,428.608
    )
    
    
    (4,163,583
    )Offering costs
    
    
    
    
    
    
    (22,172
    )
    
    
    
    
    
    
    (343,287
    )
    
    
    
    
    
    
    (365,459
    )Balances at
December 31,
2007
    
    
    1,413.580
    
    
    $
    2,266,803
    
    
    
    21,216.063
    
    
    $
    34,021,953
    
    
    
    22,629.643
    
    
    $
    36,288,756
 Net Asset Value per Managing Owner and Other Unitholders Unit
December 31,
 2007
    
    2006
    
    
    2005$1,603.59
    
    $
    1,815.53
    
    
    $
    1,691.94
 See Accompanying Notes to Financial Statements.




---



##### 



Campbell Alternative Asset Trust  Financial Highlights  For The Years Ended December and
  2007
    
    
    2006
    
    
    2005Per Unit Performance(for a unit outstanding throughout the entire year)Net asset value per unit at beginning of year
    
    $
    1,815.53
    
    
    $
    1,691.94
    
    
    $
    1,501.39Income (loss) from operations:Total net trading gains (losses)(1)
    
    
    (210.23
    )
    
    
    127.38
    
    
    
    218.79Interest income net of expenses(1)
    
    
    13.98
    
    
    
    11.61
    
    
    
    (13.90
    )Total net income (loss) from operations
    
    
    (196.25
    )
    
    
    138.99
    
    
    
    204.89Offering costs(1)
    
    
    (15.69
    )
    
    
    (15.40
    )
    
    
    (14.34
    )Net asset value per unit at end of year
    
    $
    1,603.59
    
    
    $
    1,815.53
    
    
    $
    1,691.94Total Return
    
    
    (11.67
    )%
    
    
    7.30
    %
    
    
    12.69
    %Supplemental DataRatios to average net asset value:Expenses prior to performance fee
    
    
    3.09
    %
    
    
    3.11
    %
    
    
    3.12
    %Performance fee
    
    
    0.67
    %
    
    
    0.91
    %
    
    
    0.70
    %Total expenses
    
    
    3.76
    %
    
    
    4.02
    %
    
    
    3.82
    %Interest income net of expenses(2,3)
    
    
    1.47
    %
    
    
    1.59
    %
    
    
    (0.18
    )%
 Total returns are calculated based on the change in value of a unit during the year. An
individual partners total returns and ratios may vary from the above total returns and
ratios based on the timing of additions and redemptions.
 
 (1)
    
    Interest income net of expenses per unit and offering costs per unit are
calculated by dividing the interest income net
of expenses and offering costs by the average number of units outstanding during the
year. 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)
    
    Interest income net of expenses is shown as a positive amount when the interest income
exceeds expenses for the year. See Accompanying Notes to Financial Statements.




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Campbell Alternative Asset Trust  Notes To Financial Statements  December
 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
December 31, 2007 and December 31, 2006, the 401(K) Plan held approximately 60% 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.The market value of option (non-exchange traded) contracts is calculated by applying an
industry-standard adaptation of the Black-Scholes options valuation model to foreign
currency options, using as input, the spot prices, interest rates and option implied
volatilities quoted as of 3:00 P.M. (E.T.) on the last business day of the reporting period.
Any change in net unrealized gain or loss from the preceding period is reported in the
statement of operations.When the Trust writes an option, an amount equal to the premium received by the Trust is
reflected as an asset and an equivalent liability. The amount of the liability is
subsequently marked-to-market to reflect the current market value of option written.
Brokerage commissions include other trading fees and are charged to expense when contracts
are opened. United States government securities are stated at cost plus accrued interest,
which approximates market value.For purposes of both financial reporting and calculation of redemption value, Net Asset
Value per unit is calculated by dividing Net Asset Value by the number of outstanding
units.




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Campbell Alternative Asset Trust  Notes To Financial Statements  December
 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 December 31, 2007 and December 31, 2006, the Trust reflects a liability in the
statement of financial condition for offering costs payable to Campbell & Company of $11,697
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 December 31, 2007 and December 31, 2006, the amount of
unreimbursed offering costs incurred by Campbell & Company is $235,984 and $403,225,
respectively.F.
    
    Foreign Currency TransactionsThe Trusts functional currency is the U.S. dollar; however, it transacts business in
currencies other than the U.S. dollar. Assets and liabilities denominated in currencies
other than the U.S. dollar are translated into U.S. dollars at the rates in effect at the
date of the statement of financial condition. Income and expense items denominated in
currencies other than the U.S. dollar are translated into U.S. dollars at the rates in
effect during the period. Gains and losses resulting from the translation to U.S. dollars
are reported in income.G.
    
    Recently Issued Accounting PronouncementsEffective January 1, 2007, the Trust implemented Financial Accounting Standards Board (FASB)
Interpretation No. 48, Accounting for Uncertainty in Income Taxes  an interpretation of
FASB Statement No. 109 (FIN 48). 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, including investment companies, before being
measured and recognized in the financial statements. Management has evaluated the
application of FIN 48 to the Trust, and has determined that the adoption of FIN 48 does not
have a material impact on the Trusts financial statements. The Trust files federal and
state tax returns. The 2004 through 2007 tax years generally remain subject to examination
by U.S. federal and most state tax authorities.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. FAS 157 is effective for
financial statements issued for fiscal years beginning after November 15, 2007, and interim
periods within those fiscal years. The impact on the Trusts financial statement
disclosures, if any, is currently being assessed.




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Campbell Alternative Asset Trust  Notes To Financial Statements  December
 Note 2.
    
    MANAGING OWNER AND COMMODITY TRADING ADVISORThe 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.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.
    
    TRUSTEEThe 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 BROKERThe 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 EXPENSESOperating 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 REDEMPTIONSInvestments 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 RISKSThe Trust engages in the speculative trading of U.S. and foreign futures contracts, forward
currency contracts 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.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.




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Campbell Alternative Asset Trust  Notes To Financial Statements  December
      Forward Currency andOptions on ForwardFutures Contracts
    
    
    Currency Contracts(exchange traded)
    
    
    (non- exchange traded)December 31, 2007
    
    

December 31, 2006
    
    
    December 31, 2007
    
    
    December 31, 2006Gross
unrealized
gains
    
    $
    470,224
    
    
    $
    1,673,274
    
    
    $
    742,233
    
    
    $
    2,735,365Gross
unrealized
losses
    
    
    (272,714
    )
    
    
    (590,326
    )
    
    
    (1,554,014
    )
    
    
    (1,311,582
    )Net
unrealized
gain
    
    $
    197,510
    
    
    $
    1,082,948
    
    
    $
    (811,781
    )
    
    $
    1,423,783




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##### 



Campbell Alternative Asset Trust  Notes To Financial Statements  December
 Note 8.
    
    INDEMNIFICATIONSIn 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.




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EXHIBIT INDEX
 Exhibit Number
    
    Description of Document
    
    Page 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