UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
 þ
    
    Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the quarterly period ended June 30, 2008
 or
 o
    
    Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the transition period from  to
 Commission File number: 0-50264
 THE CAMPBELL FUND TRUST
  Delaware
    
    94-6260018(State of Organization)
    
    (IRS Employer Identification Number)
 (Address of principal executive offices, including zip code)
 (Registrants telephone number, including area code)
 þ o
  Large accelerated filer
o
    
    Accelerated filer o
    
    Non-accelerated filer  
þ
(Do not check if a smaller reporting company)
    
    Smaller reporting company o
 o þ
 30




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##### 



PagePART I  FINANCIAL INFORMATIONItem 1. Financial StatementsCondensed Schedules of Investments as of June 30, 2008
(Unaudited) and December 31, 2007
    
    
    3-6Statements of Financial Condition as of June 30, 2008 (Unaudited)
and December 31, 2007
    
    
    7Statements of Operations for the Three Months and Six Months Ended
June 30, 2008 and 2007 (Unaudited)
    
    
    8Statements of Cash Flows for the Six Months Ended
June 30, 2008 and 2007 (Unaudited)
    
    
    9Statements of Changes in Unitholders Capital (Net Asset Value)
for the Six Months Ended June 30, 2008 and 2007 (Unaudited)
    
    
    10Financial Highlights for the Three Months and Six Months Ended
June 30, 2008 and 2007 (Unaudited)
    
    
    11Notes to Financial Statements (Unaudited)
    
    
    12-16Item 2. Managements Discussion and Analysis of Financial Condition and
Results of Operations
    
    
    17-22Item 3. Quantitative and Qualitative Disclosure About Market Risk
    
    
    22-28Item 4T. Controls and Procedures
    
    
    28PART II  OTHER INFORMATION
    
    
    29Item 6. Exhibits and Reports on Form 8-K
    
    
    29SIGNATURESCERTIFICATIONS




---



##### 



UNITED STATES GOVERNMENT SECURITIES*
 Maturity
    
    
    Maturity
    
    
    
    
    
    
    
    
    % of NetFace Value
    
    
    Date
    
    
    Description
    
    Values ($)
    
    
    Asset Value$
    270,000,000
    
    
    
    07/17/2008
    
    
    U.S. Treasury Bills
    
    $
    269,811,000
    
    
    
    43.75
    %$
    170,000,000
    
    
    
    07/10/2008
    
    
    U.S. Treasury Bills
    
    $
    169,920,950
    
    
    
    27.55
    %$
    110,000,000
    
    
    
    07/03/2008
    
    
    U.S. Treasury Bills
    
    $
    109,989,339
    
    
    
    17.84
    %Total United States government securities
(cost, including accrued interest, - $549,721,289)
    
    $
    549,721,289
    
    
    
    89.14
    %LONG FUTURES CONTRACTSDescriptionAgricultural
    
    $
    (168,256
    )
    
    
    (0.03
    )%Energy
    
    $
    1,985,190
    
    
    
    0.32
    %Metals
    
    $
    105,023
    
    
    
    0.02
    %Stock indices
    
    $
    (814,653
    )
    
    
    (0.13
    )%Short-term interest rates
    
    $
    (22,400
    )
    
    
    0.00
    %Long-term interest rates
    
    $
    1,904,752
    
    
    
    0.31
    %Total long futures contracts
    
    $
    2,989,656
    
    
    
    0.49
    %SHORT FUTURES CONTRACTSDescriptionAgricultural
    
    $
    176,380
    
    
    
    0.03
    %Energy
    
    $
    (20,958
    )
    
    
    0.00
    %Metals
    
    $
    (743,864
    )
    
    
    (0.12
    )%Stock indices
    
    $
    17,907,086
    
    
    
    2.90
    %Short-term interest rates
    
    $
    2,828,111
    
    
    
    0.46
    %Long-term interest rates
    
    $
    (463,762
    )
    
    
    (0.08
    )%Total short futures contracts
    
    $
    19,682,993
    
    
    
    3.19
    %Total futures contracts
    
    $
    22,672,649
    
    
    
    3.68
    %
 See Accompanying Notes to Financial Statements.
 - 3 -




---



##### 



% of NetValues ($)
    
    
    Asset ValueFORWARD CURRENCY CONTRACTSDescriptionVarious long forward currency contracts
    
    $
    7,205,204
    
    
    
    1.17
    %Various short forward currency contracts
    
    $
    (4,416,648
    )
    
    
    (0.72
    )%Total forward currency contracts
    
    $
    2,788,556
    
    
    
    0.45
    %PURCHASED OPTIONS ON FORWARD CURRENCY CONTRACTSDescriptionPurchased options on forward currency contracts
(premiums paid - $182,562)
    
    $
    206,733
    
    
    
    0.03
    %WRITTEN OPTIONS ON FORWARD CURRENCY CONTRACTSDescriptionWritten options on forward currency contracts
(premiums received - $108,132)
    
    $
    (113,543
    )
    
    
    (0.02
    )%
 
 *
    
    Pledged as collateral for the trading of futures, forward and option positions. See Accompanying Notes to Financial Statements.
 - 4 -




---



##### 



UNITED STATES GOVERNMENT SECURITIES*
 Maturity
    
    
    Maturity
    
    
    
    
    
    
    
    
    % of NetFace Value
    
    
    Date
    
    
    Description
    
    Values ($)
    
    
    Asset Value$
    250,000,000
    
    
    
    02/14/2008
    
    
    U.S. Treasury Bills
    
    $
    248,977,917
    
    
    
    32.14
    %$
    150,000,000
    
    
    
    02/21/2008
    
    
    U.S. Treasury Bills
    
    $
    149,351,875
    
    
    
    19.28
    %$
    150,000,000
    
    
    
    03/06/2008
    
    
    U.S. Treasury Bills
    
    $
    149,213,681
    
    
    
    19.26
    %$
    120,000,000
    
    
    
    03/20/2008
    
    
    U.S. Treasury Bills
    
    $
    119,294,266
    
    
    
    15.40
    %$
    100,000,000
    
    
    
    01/10/2008
    
    
    U.S. Treasury Bills
    
    $
    99,901,000
    
    
    
    12.89
    %Total United States government securities
(cost, including accrued interest, - $766,738,739)
    
    $
    766,738,739
    
    
    
    98.97
    %LONG FUTURES CONTRACTSDescriptionAgricultural
    
    $
    208,881
    
    
    
    0.03
    %Energy
    
    $
    1,983,507
    
    
    
    0.26
    %Metals
    
    $
    863,517
    
    
    
    0.11
    %Stock indices
    
    $
    2,858,185
    
    
    
    0.37
    %Short-term interest rates
    
    $
    986,581
    
    
    
    0.13
    %Long-term interest rates
    
    $
    620,877
    
    
    
    0.08
    %Total long futures contracts
    
    $
    7,521,548
    
    
    
    0.98
    %SHORT FUTURES CONTRACTSDescriptionAgricultural
    
    $
    (88,450
    )
    
    
    (0.01
    )%Energy
    
    $
    (1,404,946
    )
    
    
    (0.18
    )%Metals
    
    $
    188,030
    
    
    
    0.02
    %Stock indices
    
    $
    (412,102
    )
    
    
    (0.05
    )%Short-term interest rates
    
    $
    (1,087,610
    )
    
    
    (0.14
    )%Long-term interest rates
    
    $
    (86,951
    )
    
    
    (0.01
    )%Total short futures contracts
    
    $
    (2,892,029
    )
    
    
    (0.37
    )%Total futures contracts
    
    $
    4,629,519
    
    
    
    0.61
    %
 See Accompanying Notes to Financial Statements.
 - 5 -




---



##### 



% of NetValues ($)
    
    
    Asset ValueFORWARD CURRENCY CONTRACTSDescriptionVarious long forward currency contracts
    
    $
    (8,804,549
    )
    
    
    (1.14
    )%Various short forward currency contracts
    
    $
    (5,418,230
    )
    
    
    (0.70
    )%Total forward currency contracts
    
    $
    (14,222,779
    )
    
    
    (1.84
    )%PURCHASED OPTIONS ON FORWARD CURRENCY CONTRACTSDescriptionPurchased options on forward currency contracts
(premiums paid - $1,639,099)
    
    $
    1,111,729
    
    
    
    0.14
    %WRITTEN OPTIONS ON FORWARD CURRENCY CONTRACTSDescriptionWritten options on forward currency contracts
(premiums received - $920,640)
    
    $
    (429,067
    )
    
    
    (0.06
    )%
 
 *
    
    Pledged as collateral for the trading of futures, forward and option positions. See Accompanying Notes to Financial Statements.
 - 6 -




---



##### 



June 30,
    
    
    December 31,2008
    
    
    2007ASSETSEquity in broker trading accountsCash
    
    $
    37,786,032
    
    
    $
    31,596,452United States government securities
    
    
    329,805,200
    
    
    
    468,028,947Net unrealized gain (loss) on open futures contracts
    
    
    22,672,649
    
    
    
    4,629,519Total equity in broker trading accounts
    
    
    390,263,881
    
    
    
    504,254,918Cash and cash equivalents
    
    
    27,715,974
    
    
    
    42,940,668United States government securities
    
    
    219,916,089
    
    
    
    298,709,792Options purchased, at fair value
(premiums paid - $182,562 and $1,639,099, respectively)
    
    
    206,733
    
    
    
    1,111,729Net unrealized gain (loss) on open forward currency contracts
    
    
    2,788,556
    
    
    
    (14,222,779
    )Interest receivable
    
    
    87,207
    
    
    
    97,231Subscriptions receivable
    
    
    0
    
    
    
    39,248Other assets
    
    
    0
    
    
    
    648Total assets
    
    $
    640,978,440
    
    
    $
    832,931,455LIABILITIESAccounts payable
    
    $
    69,089
    
    
    $
    100,748Management fee
    
    
    2,135,720
    
    
    
    2,772,355Options written, at fair value
(premiums received - $108,132 and $920,640, respectively)
    
    
    113,543
    
    
    
    429,067Accrued commissions and other trading fees on open contracts
    
    
    49,888
    
    
    
    76,863Redemptions payable
    
    
    21,936,278
    
    
    
    54,813,646Total liabilities
    
    
    24,304,518
    
    
    
    58,192,679UNITHOLDERS CAPITAL (Net Asset Value)Managing Operator - 20.360 units outstanding at
June 30, 2008 and December 31, 2007
    
    
    54,069
    
    
    
    50,838Other Unitholders - 232,193.419 and 310,254.708 units outstanding at
June 30, 2008 and December 31, 2007
    
    
    616,619,853
    
    
    
    774,687,938Total unitholders capital (Net Asset Value)
    
    
    616,673,922
    
    
    
    774,738,776Total liabilities and unitholders capital (Net Asset Value)
    
    $
    640,978,440
    
    
    $
    832,931,455
 See Accompanying Notes to Financial Statements.
 - 7 -




---



##### 



Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2008
    
    
    2007
    
    
    2008
    
    
    2007TRADING GAINS (LOSSES)Futures trading gains (losses)Realized
    
    $
    (12,447,662
    )
    
    $
    90,848,535
    
    
    $
    11,940,661
    
    
    $
    81,794,125Change in unrealized
    
    
    32,214,213
    
    
    
    13,966,535
    
    
    
    18,043,130
    
    
    
    (9,738,246
    )Brokerage commissions
    
    
    (230,143
    )
    
    
    (673,338
    )
    
    
    (506,538
    )
    
    
    (1,134,686
    )Net gain (loss)
from futures trading
    
    
    19,536,408
    
    
    
    104,141,732
    
    
    
    29,477,253
    
    
    
    70,921,193Forward currency and options on
forward currency trading gains
(losses)Realized
    
    
    15,025,450
    
    
    
    934,427
    
    
    
    (1,104,392
    )
    
    
    (4,555,042
    )Change in unrealized
    
    
    (991,566
    )
    
    
    24,816,537
    
    
    
    17,065,893
    
    
    
    (7,759,613
    )Brokerage commissions
    
    
    (19,259
    )
    
    
    (300,438
    )
    
    
    (56,081
    )
    
    
    (554,928
    )Net gain (loss) from forward
currency and options on
forward currency trading
    
    
    14,014,625
    
    
    
    25,450,526
    
    
    
    15,905,420
    
    
    
    (12,869,583
    )Total net trading gain (loss)
    
    
    33,551,033
    
    
    
    129,592,258
    
    
    
    45,382,673
    
    
    
    58,051,610INTEREST INCOME NET OF EXPENSESIncomeInterest income
    
    
    2,715,136
    
    
    
    13,329,941
    
    
    
    7,864,265
    
    
    
    26,772,269ExpensesManagement fee
    
    
    6,518,085
    
    
    
    11,266,833
    
    
    
    14,027,829
    
    
    
    22,513,368Performance fee
    
    
    0
    
    
    
    3,897,273
    
    
    
    0
    
    
    
    3,914,241Operating expenses
    
    
    57,814
    
    
    
    54,507
    
    
    
    109,959
    
    
    
    100,785Total expenses
    
    
    6,575,899
    
    
    
    15,218,613
    
    
    
    14,137,788
    
    
    
    26,528,394Interest income net of expenses
    
    
    (3,860,763
    )
    
    
    (1,888,672
    )
    
    
    (6,273,523
    )
    
    
    243,875NET INCOME (LOSS)
    
    $
    29,690,270
    
    
    $
    127,703,586
    
    
    $
    39,109,150
    
    
    $
    58,295,485NET INCOME (LOSS) PER MANAGING OPERATOR
AND OTHER UNITHOLDERS UNIT
(based on weighted average number of
units outstanding during the period)
    
    $
    116.15
    
    
    $
    328.77
    
    
    $
    141.60
    
    
    $
    147.94INCREASE (DECREASE) IN NET ASSET VALUE
PER MANAGING OPERATOR AND OTHER
UNITHOLDERS UNIT
    
    $
    127.73
    
    
    $
    329.71
    
    
    $
    158.69
    
    
    $
    154.84
 See Accompanying Notes to Financial Statements.
 - 8 -




---



##### 



Six Months EndedJune 30,2008
    
    
    2007Cash flows from (for) operating activitiesNet income (loss)
    
    $
    39,109,150
    
    
    $
    58,295,485Adjustments to reconcile net income (loss) to net cash from
(for) operating activitiesNet change in unrealized
    
    
    (35,109,023
    )
    
    
    17,497,859(Increase) decrease in option premiums paid
    
    
    1,456,537
    
    
    
    (870,735
    )Increase (decrease) in option premiums received
    
    
    (812,508
    )
    
    
    489,468(Increase) decrease in interest receivable
    
    
    10,024
    
    
    
    (273,277
    )(Increase) decrease in prepaid expenses
    
    
    0
    
    
    
    (5,000
    )(Increase) decrease in other assets
    
    
    648
    
    
    
    (4,117
    )Increase (decrease) in accounts payable and accrued expenses
    
    
    (695,269
    )
    
    
    3,876,958Net maturities (purchases) of investments in
United States government securities
    
    
    217,017,451
    
    
    
    (165,211
    )Net cash from (for) operating activities
    
    
    220,977,010
    
    
    
    78,841,430Cash flows from (for) financing activitiesAddition of units
    
    
    5,685,816
    
    
    
    19,556,404Redemption of units
    
    
    (235,697,940
    )
    
    
    (100,140,790
    )Net cash from (for) financing activities
    
    
    (230,012,124
    )
    
    
    (80,584,386
    )Net increase (decrease) in cash and cash equivalents
    
    
    (9,035,114
    )
    
    
    (1,742,956
    )Cash and cash equivalentsBeginning of period
    
    
    74,537,120
    
    
    
    185,973,590End of period
    
    $
    65,502,006
    
    
    $
    184,230,634End of period cash and cash equivalents consists of:Cash in broker trading accounts
    
    $
    37,786,032
    
    
    $
    171,132,750Cash and cash equivalents
    
    
    27,715,974
    
    
    
    13,097,884Total end of period cash and cash equivalents
    
    $
    65,502,006
    
    
    $
    184,230,634
 See Accompanying Notes to Financial Statements.
 - 9 -




---



##### 



Unitholders CapitalManagingOperator
    
    
    Other Unitholders
    
    
    TotalUnits
    
    
    Amount
    
    
    Units
    
    
    Amount
    
    
    Units
    
    
    AmountSix Months Ended June 30, 2008Balances at December 31, 2007
    
    
    20.360
    
    
    $
    50,838
    
    
    
    310,254.708
    
    
    $
    774,687,938
    
    
    
    310,275.068
    
    
    $
    774,738,776Net income (loss) for the six
months ended June 30, 2008
    
    
    
    
    
    
    3,231
    
    
    
    
    
    
    
    39,105,919
    
    
    
    
    
    
    
    39,109,150Additions
    
    
    0.000
    
    
    
    0
    
    
    
    2,255.229
    
    
    
    5,646,568
    
    
    
    2,255.229
    
    
    
    5,646,568Redemptions
    
    
    0.000
    
    
    
    0
    
    
    
    (80,316.518
    )
    
    
    (202,820,572
    )
    
    
    (80,316.518
    )
    
    
    (202,820,572
    )Balances at June 30, 2008
    
    
    20.360
    
    
    $
    54,069
    
    
    
    232,193.419
    
    
    $
    616,619,853
    
    
    
    232,213.779
    
    
    $
    616,673,922Six Months Ended June 30, 2007Balances at December 31, 2006
    
    
    20.360
    
    
    $
    58,374
    
    
    
    402,479.470
    
    
    $
    1,153,940,424
    
    
    
    402,499.830
    
    
    $
    1,153,998,798Net income (loss) for the six
months ended June 30, 2007
    
    
    
    
    
    
    3,152
    
    
    
    
    
    
    
    58,292,333
    
    
    
    
    
    
    
    58,295,485Additions
    
    
    0.000
    
    
    
    0
    
    
    
    6,966.517
    
    
    
    19,556,404
    
    
    
    6,966.517
    
    
    
    19,556,404Redemptions
    
    
    0.000
    
    
    
    0
    
    
    
    (32,892.050
    )
    
    
    (93,872,773
    )
    
    
    (32,892.050
    )
    
    
    (93,872,773
    )Balances at June 30, 2007
    
    
    20.360
    
    
    $
    61,526
    
    
    
    376,553.937
    
    
    $
    1,137,916,388
    
    
    
    376,574.297
    
    
    $
    1,137,977,914
 Net Asset Value per Managing Operator and Other Unitholders UnitJune 30, 2008
    
    
    December 31,2007
    
    
    June 30, 2007
    
    
    December 31,2006$
    2,655.63
    
    
    $
    2,496.94
    
    
    $
    3,021.92
    
    
    $
    2,867.08
 See Accompanying Notes to Financial Statements.
 - 10 -




---



##### 



Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2008
    
    
    2007
    
    
    2008
    
    
    2007Per Unit Performance(for a unit outstanding throughout the entire period)Net asset value per unit at beginning of period
    
    $
    2,527.90
    
    
    $
    2,692.21
    
    
    $
    2,496.94
    
    
    $
    2,867.08Income (loss) from operations:Total net
trading gains (losses) (1)
    
    
    142.83
    
    
    
    334.57
    
    
    
    181.40
    
    
    
    154.22Interest income net of expenses (1)
    
    
    (15.10
    )
    
    
    (4.86
    )
    
    
    (22.71
    )
    
    
    0.62Total net income (loss) from operations
    
    
    127.73
    
    
    
    329.71
    
    
    
    158.69
    
    
    
    154.84Net asset value per unit at end of period
    
    $
    2,655.63
    
    
    $
    3,021.92
    
    
    $
    2,655.63
    
    
    $
    3,021.92Total Return(3)
    
    
    5.05
    %
    
    
    12.25
    %
    
    
    6.36
    %
    
    
    5.40
    %Supplemental DataRatios to average net asset value:Expenses prior to performance fee (4)
    
    
    4.11
    %
    
    
    4.13
    %
    
    
    4.13
    %
    
    
    4.05
    %Performance fee (3)
    
    
    0.00
    %
    
    
    0.36
    %
    
    
    0.00
    %
    
    
    0.35
    %Total expenses
    
    
    4.11
    %
    
    
    4.49
    %
    
    
    4.13
    %
    
    
    4.40
    %Interest income net of expenses (2),(4),(5)
    
    
    (2.42
    )%
    
    
    0.73
    %
    
    
    (1.83
    )%
    
    
    0.74
    %
 Total returns are calculated based on the change in value of a unit during the period. An
individual partners total returns and ratios may vary from the above total returns and ratios
based on the timing of additions and redemptions.
 
 (1)
    
    Interest income net of expenses per unit per unit are calculated by
dividing the interest income net of expenses by the average number of
units outstanding during the period. Total net trading gains (losses)
is a balancing amount necessary to reconcile the change in net asset
value per unit with the other per unit information.(2)
    
    Excludes performance fee.(3)
    
    Not annualized(4)
    
    Annualized(5)
    
    Interest income net of expenses are shown as a positive percentage
when interest income exceeds expenses excluding the performance fee
for the period and negative number when expenses exceed interest
income for the period. See Accompanying Notes to Financial Statements.
 - 11 -




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##### 



Note 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 A.
    
    General Description of the TrustThe Campbell Fund Trust (the Trust) is a Delaware statutory trust which operates as a
commodity investment pool. The Trust engages in the speculative trading of futures
contracts, forward currency contracts and options on forward currency contracts.B.
    
    RegulationThe Trust is a registrant with the Securities and Exchange Commission (SEC) pursuant to the
Securities Exchange Act of 1934 (the Act). As a registrant, the Trust is subject to the
regulations of the SEC and the informational requirements of the Act. As a commodity
investment pool, the Trust is subject to the regulations of the Commodity Futures Trading
Commission, an agency of the United States (U.S.) government which regulates most aspects of
the commodity futures industry; rules of the National Futures Association, an industry
self-regulatory organization; and the requirements of the various commodity exchanges where
the Trust executes transactions. Additionally, the Trust is subject to the requirements of
futures commission merchants (brokers) and interbank market makers through which the Trust
trades.C.
    
    Method of ReportingThe Trusts financial statements are presented in accordance with accounting principles
generally accepted in the United States of America, which may require the use of certain
estimates made by the Trusts management. Actual results may differ from these estimates.
Investment transactions are accounted for on the trade date. Gains or losses are realized
when contracts are liquidated. Unrealized gains and losses on open contracts (the difference
between contract trade price and market price) are reported in the statement of financial
condition as a net gain or loss, as there exists a right of offset of unrealized gains or
losses in accordance with Financial Accounting Standards Board
Interpretation No. 39 
Offsetting of Amounts Related to Certain Contracts. The market value of futures
(exchange-traded) contracts is determined by the various futures exchanges, and reflects the
settlement price for each contract as of the close of the last business day of the reporting
period. The market value of forward currency (non-exchange traded) contracts was
extrapolated on a forward basis from the spot prices quoted as of 3:00 P.M. (E.T.) of the
last business day of the reporting period or based on the market value of its
exchange-traded equivalent.The market value of option (non-exchange traded) contracts is calculated by applying an
industry-standard adaptation of the Black-Scholes options valuation model to foreign
currency options, using as input, the spot prices, interest rates and option implied
volatilities quoted as of 3:00 P.M. (E.T.) on the last business day of the reporting period.
Any change in net unrealized gain or loss from the preceding period is reported in the
statement of operations.When the Trust writes an option, an amount equal to the premium received by the Trust is
reflected as an asset and an equivalent liability. The amount of the liability is
subsequently marked-to-market to reflect the current market value of option written.
Brokerage commissions include other trading fees and are charged to expense when contracts
are opened. United States government securities are stated at cost plus accrued interest,
which approximates market value.For purposes of both financial reporting and calculation of redemption value, Net Asset
Value per unit is calculated by dividing Net Asset Value by the number of outstanding
units.The Trust adopted the provisions of Statement of Financial
Accounting Statement No. 157 
Fair Value Measurement, or SFAS 157, as of January 1, 2008. SFAS 157 provides guidance for
determining fair value and requires increased disclosure regarding the inputs to valuation
techniques used to measure fair value. SFAS 157 defines fair value as the price that would
be received to sell an asset or paid to transfer a liability in
 - 12 -




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##### 



an orderly transaction between market participants at the measurement date.SFAS No. 157 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 quotes 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 in this
category.Level 2 inputs are inputs other than quotes 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 Trust values using models
or other valuation methodologies derived from observable market data.Level 3 inputs are unobservable inputs for an asset or liability (including the Fund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 six-month period ended June 30, 2008,
the Trust did not have any Level 3 assets or liabilities.The following table sets forth by level within the fair value hierarchy the Trusts
investments accounted for at fair value on a reoccurring basis as of June 30, 2008.
 Fair Value at June 30, 2008Description
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TotalInvestmentsU.S. Treasury Bills
    
    $
    0
    
    
    $
    549,721,289
    
    
    $
    0
    
    
    $
    549,721,289Other Financial InstrumentsExchange-traded futures contracts
    
    
    22,672,649
    
    
    
    0
    
    
    
    0
    
    
    
    22,672,649Forward currency contracts
    
    
    0
    
    
    
    2,788,556
    
    
    
    0
    
    
    
    2,788,556Options purchased
    
    
    0
    
    
    
    206,733
    
    
    
    0
    
    
    
    206,733Options written
    
    
    0
    
    
    
    (113,543
    )
    
    
    0
    
    
    
    (113,543
    )Total
    
    $
    22,672,649
    
    
    $
    552,603,035
    
    
    $
    0
    
    
    $
    575,275,684
 D.
    
    Cash and Cash EquivalentsCash and cash equivalents includes cash and short-term investments in fixed income
securities held at financial institutions.E.
    
    Income Taxes
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The Trust prepares calendar year U.S. and applicable state information tax returns and
reports to the unitholders their allocable shares of the Trusts income, expenses and
trading gains or losses. No provision for income taxes has been made in the accompanying
financial statements as each unitholder is individually responsible for reporting income or
loss based on such unitholders respective share of the Trusts income and expenses as
reported for income tax purposes.Management has continued to evaluate the application of Financial Accounting Standards Board
(FASB) Interpretation No. 48, Accounting for Uncertainty in Income Taxes  an
interpretation of FASB Statement No. 109 (FIN 48), to the Trust, and has determined that
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 the U.S. federal and most state tax authorities.F.
    
    Foreign Currency TransactionsThe Trusts functional currency is the U.S. dollar; however, it transacts business in
currencies other than the U.S. dollar. Assets and liabilities denominated in currencies
other than the U.S. dollar are translated into U.S. dollars at the rates in effect at the
date of the statement of financial condition. Income and expense items denominated in
currencies other than the U.S. dollar are translated into U.S. dollars at the rates in
effect during the period. Gains and losses resulting from the translation to U.S. dollars
are reported in income.G.
    
    Recently Issued Accounting PronouncementsIn March 2008, the Financial Accounting Standards Board (FASB) issued Statement of Financial
Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging
Activities  an amendment of FASB Statement No. 133 (SFAS 161). SFAS 161 establishes,
amoung other things, the disclosure requirements for derivative instruments and for hedging
activities. SFAS 161 is effective for financial statements issued for fiscal years beginning
after November 15, 2008, and interim periods within those fiscal years. The impact on the
Trusts financial statement disclosures, if any, is currently being assessed.
 Note 2. MANAGING OPERATOR AND COMMODITY TRADING ADVISOR
 The managing operator of the Trust is Campbell & Company, Inc., (Campbell & Company) which
conducts and manages the business of the Trust. Campbell & Company is also the commodity
trading advisor of the Trust.The Trust pays the managing operator a monthly management fee equal to 1/3 of 1% (4%
annually) of the Net Assets (as defined in the Declaration of Trust and Trust Agreement) of
the Trust as of the end of each month and a quarterly performance fee equal to 20% of the
aggregate cumulative appreciation in Net Asset Value per Unit (as defined) exclusive of
appreciation attributable to interest income.
 Note 3. TRUSTEE
 The trustee of the Trust is U.S. Bank National Association, a national banking corporation.
The trustee has delegated to the managing operator the duty and authority to manage the
business and affairs of the Trust and has only nominal duties and liabilities with respect
to the Trust.
 Note 4. DEPOSITS WITH BROKER
 The Trust deposits assets with UBS Securities LLC to act as 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. SUBSCRIPTIONS, DISTRIBUTIONS AND REDEMPTIONS
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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.
 Note 6. 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).
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 funds
subject to the brokers segregation requirements. In the event of a brokers insolvency,
recovery may be limited to a pro rata share of segregated Trusts available. It is possible
that the recovered amount could be less than total cash and other property deposited.The amount of required margin and good faith deposits with the broker and interbank market
makers usually range from 10% to 30% of Net Asset Value. The market value of securities held
to satisfy such requirements at June 30, 2008 and December 31, 2007 was $549,721,289 and
$766,738,739, respectively, which equals 89% and 99% of Net Asset Value, respectively. The
cash deposited with interbank market makers at June 30, 2008 and December 31, 2007 was
$27,656,978 and $42,358,497, respectively, which equals 4% and 5% of Net Asset Value,
respectively. These amounts are included in cash and cash equivalents. There was no
restricted cash at June 30, 2008 or December 31, 2007.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.The unrealized gain (loss) on open futures, forward currency and options on forward
currency contracts is comprised of the following:
 - 15 -




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Forward Currency andOptions on ForwardFutures Contracts
    
    
    Currency Contracts(exchange traded)
    
    
    (non-exchange traded)June 30, 2008
    
    

December 31, 2007
    
    
    June 30, 2008
    
    

December 31, 2007Gross unrealized gains
    
    $
    27,380,693
    
    
    $
    12,382,973
    
    
    $
    11,617,467
    
    
    $
    16,549,821Gross unrealized losses
    
    
    (4,708,044
    )
    
    
    (7,753,454
    )
    
    
    (8,810,151
    )
    
    
    (30,808,397
    )Net unrealized gain (loss)
    
    $
    22,672,649
    
    
    $
    4,629,519
    
    
    $
    2,807,316
    
    
    $
    (14,258,576
    )
 Open contracts generally mature within three months; as of June 30, 2008, the latest
maturity date for open futures contracts is March 2009, the latest maturity date for open
forward currency contracts is September 2008, and the latest expiry date for options on
forward currency contracts is July 2008. However, the Trust intends to close all futures and
forward currency contracts prior to maturity.Campbell & Company has established procedures to actively monitor market risk and minimize
credit risk, although there can be no assurance that it will, in fact, succeed in doing so.
Campbell & Companys basic market risk control procedures consist of continuously monitoring
open positions, diversification of the portfolio and maintenance of a margin-to-equity ratio
that rarely exceeds 30%. Campbell & Company seeks to minimize credit risk primarily by
depositing and maintaining the Trusts assets at financial institutions and brokers which
Campbell & Company believes to be creditworthy. The unitholder bear the risk of loss only to
the extent of the market value of their respective investments and, in certain specific
circumstances, distributions and redemptions received.
 Note 7. INDEMNIFICATIONS
 In the normal course of business, the Trust enters into contracts and agreements that
contain a variety of representations and warranties and which provide general
indemnifications. The Trusts maximum exposure under these arrangements is unknown, as this
would involve future claims that may be made against the Trust that have not yet occurred.
The Trust expects the risk of any future obligation under these indemnifications to be
remote.
 Note 8. INTERIM FINANCIAL STATEMENTS
 The statement of financial condition, including the condensed schedule of investments, as of
June 30, 2008, the statements of operations and financial highlights for the three months
and six months ended June 30, 2008 and 2007, and the statements of cash flows and changes in
unitholders capital (Net Asset Value) for the six months ended June 30, 2008 and 2007 are
unaudited. In the opinion of management, such financial statements reflect all adjustments,
which were of a normal and recurring nature, necessary for a fair presentation of financial
position as of June 30, 2008, and the results of operations and financial highlights for the
three months and six months ended June 30, 2008 and 2007, and cash flows and changes in
unitholders capital for the six months ended June 30, 2008 and 2007.
 - 16 -




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##### 



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
          - 17 -




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##### 



i.e.
   Results of Operations
  - 18 -




---



##### 



2008
  Sector
    
    % Gain (Loss)Stock Indices
    
    
    4.70
    %Currencies
    
    
    2.48Commodities
    
    
    2.73Interest Rates
    
    
    (2.55
    )7.36
    %
    - 19 -




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- 20 -




---



##### 



2007
  Sector
    
    % Gain (Loss)Interest Rates
    
    
    4.71
    %Stock Indices
    
    
    3.88Currencies
    
    
    (1.09
    )Commodities
    
    
    (1.97
    )5.53
    %
   Off-Balance Sheet Risk
  - 21 -




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##### 



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




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##### 



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 the maintenance margin required for market risk
sensitive instruments held at the end of the reporting period).
     - 23 -




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##### 



The Trusts Trading Value at Risk in Different Market Sectors
  June 30, 2008
 TradingMarket Sector
    
    Value at Risk*
    
    Gain/(Loss)**Stock Indices
    
    
    0.56
    %
    
    
    4.70
    %Interest Rates
    
    
    0.49
    %
    
    
    (2.55
    )%Currencies
    
    
    0.48
    %
    
    
    2.48
    %Commodities
    
    
    0.32
    %
    
    
    2.73
    %Aggregate/Total
    
    
    0.76
    %
    
    
    7.36
    %
 
 *
    
    -The VaR for a sector represents the one day downside risk for the aggregate exposures
associated with this sector. The aggregate VaR represents the VaR of the Trusts open
positions across all market sectors, and is less than the sum of the VaRs for all such market
sectors due to the diversification benefit across asset classes.**
    
    -Of the return for the three months ended June 30, 2008, approximately 7.36% was due to
trading gains (before commissions) and approximately 1.15% was due to interest income offset
approximately 2.15% due to brokerage fees, management fees and operating costs borne by the
Trust giving a net return of 6.36%. - 24 -




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##### 



December 31, 2007
 TradingMarket Sector
    
    Value at Risk*
    
    Gain/(Loss)**Currencies
    
    
    1.44
    %
    
    
    (7.94
    )%Stock Indices
    
    
    0.50
    %
    
    
    (2.90
    )%Interest Rates
    
    
    0.40
    %
    
    
    0.80
    %Commodities
    
    
    0.24
    %
    
    
    (2.75
    )%Aggregate/Total
    
    
    1.68
    %
    
    
    (12.79
    )%
 
 *
    
    -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 12.79% was due to
trading losses (before commissions) and approximately 4.69% due to brokerage fees, management
fees, performance fees and operating costs borne by the Trust offset by approximately 4.57%
due to interest income giving a net return of (12.91)%. Material Limitations on 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
  - 25 -




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##### 



Qualitative Disclosures Regarding Primary Trading Risk Exposures
 The following qualitative disclosures regarding the Trusts market risk exposures 
except for (i) those disclosures that are statements of historical fact and (ii) the
descriptions of how the
Trust manages its primary market risk exposures  constitute forward-looking statements within
the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange
Act. The Trusts primary market risk exposures as well as the strategies used and to be used
by Campbell & Company for managing such exposures are subject to numerous uncertainties,
contingencies and risks, any one of which could cause the actual results of the Trusts risk
controls to differ materially from the objectives of such strategies. Government
interventions, defaults and expropriations, illiquid markets, the emergence of dominant
fundamental factors, political upheavals, changes in historical price relationships, an influx
of new market participants, increased regulation and many other factors could result in
material losses as well as in material changes to the risk exposures and the risk management
strategies of the Trust. There can be no assurance that the Trusts current market exposure
and/or risk management strategies will not change materially or that any such strategies will
be effective in either the short- or long-term. Investors must be prepared to lose all or
substantially all of their investment in the Trust.
  Currencies
 i.e.,
 Interest Rates
  Stock Indices
  - 26 -




---



##### 



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




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##### 



General
  
 Item 4T. Controls and Procedures
  - 28 -




---



##### 



PART II-OTHER INFORMATION
 Item 1. Legal Proceedings.
  Item 2. Changes in Securities and Use of Proceeds
  Item 3. Defaults Upon Senior Securities
  Item 4. Submissions of Matters to a vote of Security Holders.
  Item 5. Other Information
  
 Item 6. Exhibits and Reports on Form 8-K.
  ExhibitNumber
    
    Description of Document31.01
    
    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.
   - 29 -




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##### 



SIGNATURES
  THE CAMPBELL FUND TRUST(Registrant)By:
    
    Campbell & Company, Inc.Managing OperatorDate: August 14, 2008
    
    
    
    By:
    
    /s/ Theresa D. Becks

Theresa D. BecksChief Executive Officer
 - 30 -




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##### 



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