##### Table of Contents



UNITED STATES
 SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
  FORM 10-Q
  (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR
    15(d)
 OF THE SECURITIES EXCHANGE ACT OF 1934
  For the Quarterly Period ended September 30, 2009
  OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR
    15(d)
 OF THE SECURITIES EXCHANGE ACT OF 1934
   
   000-51282
   FAIRFIELD FUTURES FUND L.P. II
    New York

56-2421596(State or other jurisdiction of
    incorporation or organization)

(I.R.S. Employer
    Identification No.)   c/o Ceres
    Managed Futures LLC
 55 East 59th Street  10th Floor
 New York, New York 10022
    (212) 559-2011
      Yes X    No
   Yes     No
  Rule 12b-2
  Large accelerated filer

Accelerated filer

Non-accelerated filerX

Smaller reporting company   rule 12b-2
  Yes     No X




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##### 



FAIRFIELD FUTURES FUND L.P. II
  FORM 10-Q
  INDEX
  PART I - Financial Information:

Page
    NumberItem 1.


Financial Statements:Statements of Financial Condition
    at September 30, 2009 and December 31, 2008 (unaudited)

3Statements of Income and Expenses
    and Changes in Partners Capital for the three and nine months ended
    September 30, 2009 and 2008 (unaudited)

4Notes to Financial Statements,
    including the Financial Statements
    of CMF Graham Capital Master Fund L.P. (unaudited)

5  15Item 2.


Managements Discussion and
    Analysis of Financial Condition
    and Results of Operations

16  19Item 3.


Quantitative and Qualitative
    Disclosures about Market Risk

20Item 4.


Controls and Procedures

21PART II - Other Information

22  25Exhibits     31.1 Certification
 31.2 Certification
 32.1 Certification
 32.2 Certification
  2




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##### Table of Contents



PART I Item 1.  Financial
    Statements


    Fairfield Futures Fund L.P. II
    Statements of Financial Condition

    (Unaudited)  September 30,
    
    
    December 31,2009
    
    
    2008Assets:Investment in Master, at fair value
    
    $
    43,660,589
    
    
    $
    60,716,373Cash
    
    
    99,393
    
    
    
    171,400Total assets
    
    $
    43,759,982
    
    
    $
    60,887,773Liabilities and Partners Capital:Liabilities:Accrued expenses:Brokerage commissions
    
    $
    164,100
    
    
    $
    228,329Management fees
    
    
    72,629
    
    
    
    100,972Administrative fees
    
    
    18,157
    
    
    
    25,243Other
    
    
    18,641
    
    
    
    76,417Redemptions payable
    
    
    151,782
    
    
    
    7,655,240Total liabilities
    
    
    425,309
    
    
    
    8,086,201Partners Capital:General Partner, 1,250.2679 Unit equivalents outstanding at
September 30, 2009 and December 31, 2008
    
    
    1,353,578
    
    
    
    1,345,551Special Limited Partner, 442.4015 and 1,544.1797 Redeemable Units of Limited
Partnership Interest outstanding at September 30, 2009 and December 31, 2008, respectively
    
    
    478,957
    
    
    
    1,661,862Limited Partners, 38,334.6890 and 46,268.2719 Redeemable Units of Limited
Partnership Interest outstanding at September 30, 2009 and December 31, 2008, respectively
    
    
    41,502,138
    
    
    
    49,794,159Total partners capital
    
    
    43,334,673
    
    
    
    52,801,572Total liabilities and partners capital
    
    $
    43,759,982
    
    
    $
    60,887,773
  3




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##### Table of Contents



Fairfield Futures Fund L.P. IIStatements of Income and Expenses and Changes in Partners Capital

(Unaudited)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Income:Net realized gains (losses) on closed contracts allocated from Master
    
    $
    2,388,238
    
    
    $
    1,196,824
    
    
    $
    2,087,765
    
    
    $
    11,582,700Change in net unrealized gains (losses) on open contracts allocated from Master
    
    
    1,366,465
    
    
    
    (3,891,584
    )
    
    
    741,038
    
    
    
    (2,241,817
    )Interest income allocated from Master
    
    
    9,332
    
    
    
    187,302
    
    
    
    28,752
    
    
    
    670,006Expenses allocated from Master
    
    
    (54,634
    )
    
    
    (77,861
    )
    
    
    (129,505
    )
    
    
    (282,623
    )Total income (loss)
    
    
    3,709,401
    
    
    
    (2,585,319
    )
    
    
    2,728,050
    
    
    
    9,728,266Expenses:Brokerage commissions
    
    
    490,169
    
    
    
    707,884
    
    
    
    1,543,758
    
    
    
    2,279,496Management fees
    
    
    216,968
    
    
    
    312,843
    
    
    
    682,783
    
    
    
    1,007,481Administrative fees
    
    
    54,242
    
    
    
    78,212
    
    
    
    170,695
    
    
    
    251,872Other
    
    
    35,694
    
    
    
    50,065
    
    
    
    97,945
    
    
    
    146,054Total expenses
    
    
    797,073
    
    
    
    1,149,004
    
    
    
    2,495,181
    
    
    
    3,684,903Net income (loss) before allocation to Special Limited Partner
    
    
    2,912,328
    
    
    
    (3,734,323
    )
    
    
    232,869
    
    
    
    6,043,363Allocation to Special Limited Partner
    
    
    (64,276
    )
    
    
    
    
    
    
    (64,276
    )
    
    
    (517,496
    )Net income  (loss)  after allocation to Special Limited Partner
    
    
    2,848,052
    
    
    
    (3,734,323
    )
    
    
    168,593
    
    
    
    5,525,867Additions  Limited Partners
    
    
    1,155,000
    
    
    
    1,145,000
    
    
    
    2,401,000
    
    
    
    4,079,000Additions  General Partner
    
    
    
    
    
    
    500,000
    
    
    
    
    
    
    
    500,000Additions  Special Limited Partner
    
    
    64,276
    
    
    
    
    
    
    
    64,276
    
    
    
    517,496Redemptions  Limited Partners
    
    
    (2,390,685
    )
    
    
    (5,573,095
    )
    
    
    (10,850,768
    )
    
    
    (20,029,590
    )Redemptions  Special Limited Partner
    
    
    
    
    
    
    
    
    
    
    (1,250,000
    )
    
    
    Net increase (decrease) in Partners Capital
    
    
    1,676,643
    
    
    
    (7,662,418
    )
    
    
    (9,466,899
    )
    
    
    (9,407,227
    )Partners Capital, beginning of period
    
    
    41,658,030
    
    
    
    66,211,579
    
    
    
    52,801,572
    
    
    
    67,956,388Partners Capital, end of period
    
    $
    43,334,673
    
    
    $
    58,549,161
    
    
    $
    43,334,673
    
    
    $
    58,549,161Net Asset Value per Unit
(40,027.3584 and 61,663.4138 Units outstanding at September 30, 2009 and 2008, respectively)
    
    $
    1,082.63
    
    
    $
    949.50
    
    
    $
    1,082.63
    
    
    $
    949.50Net income (loss) per Redeemable Unit of Limited Partnership Interest
and General Partner Unit equivalent
    
    $
    69.79
    
    
    $
    (55.94
    )
    
    $
    6.42
    
    
    $
    70.60Weighted average units outstanding
    
    
    41,070.2700
    
    
    
    65,808.3360
    
    
    
    43,125.8429
    
    
    
    70,655.6730
  4




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##### Table of Contents



Fairfield Futures Fund L.P. IINotes to Financial Statements
September 30, 2009
    (Unaudited)
  1.
    General:                Form 10-K
           5




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##### Table of Contents



Fairfield Futures Fund L.P. II
    Notes to Financial Statements
    September 30, 2009
    (Unaudited)
     CMF
    Graham Capital Master Fund L.P.
    Statements of Financial Condition
    (Unaudited)
 September 30,
    
    
    December 31,2009
    
    
    2008Assets:Equity in trading account:Cash
    
    $
    134,922,848
    
    
    $
    214,551,266Cash margin
    
    
    29,475,819
    
    
    
    9,073,580Net unrealized appreciation on open futures contracts
    
    
    2,293,209
    
    
    
    1,162,793Net
unrealized depreciation on open forward contracts
    
    
    1,345,511
    
    
    
    Total assets
    
    $
    168,037,387
    
    
    $
    224,787,639Liabilities and Partners Capital:Liabilities:Net unrealized depreciation on open forward contracts
    
    $
    
    
    
    $
    279,957Accrued expenses:Professional fees
    
    
    14,694
    
    
    
    16,740Total liabilities
    
    
    14,694
    
    
    
    296,697Partners Capital:General Partner, 0.0000 Unit equivalents at September
30, 2009 and
December 31, 2008
    
    
    
    
    
    
    Limited Partners, 103,297.2785
and 146,784.8652 Redeemable
Units of Limited Partnership Interest
outstanding at September 30, 2009
and December 31, 2008, respectively
    
    
    168,022,693
    
    
    
    224,490,942Total liabilities and partners capital
    
    $
    168,037,387
    
    
    $
    224,787,639
 6




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##### Table of Contents



Fairfield Futures Fund L.P. II
    Notes to Financial Statements
September 30, 2009
    (Unaudited)
   CMF
    Graham Capital Master Fund L.P.
    Schedule of Investments
September 30, 2009
    (Unaudited)
   Notional ($)/Number of

    
    
    
    
    
    
    % of PartnersContracts
    
    
    Fair Value
    
    
    CapitalFutures
Contracts PurchasedCurrencies
    
    
    15
    
    
    $
    3,160
    
    
    
    0.00
    %*Energy
    
    
    204
    
    
    
    502,854
    
    
    
    0.30Grains
    
    
    150
    
    
    
    (285,589
    )
    
    
    (0.17
    )Indices
    
    
    1,677
    

    
    
    (115,911
    )
    
    
    (0.07
    )Interest Rates U.S.
    
    
    1,352
    

    
    
    296,960
    
    
    
    0.18Interest Rates Non-U.S.
    
    
    4,361
    

    
    
    1,204,496
    
    
    
    0.72Livestock
    
    
    67
    
    
    
    (15,917
    )
    
    
    (0.01
    )Metals
    
    
    171
    

    
    
    173,398
    
    
    
    0.10Softs
    
    
    576
    

    
    
    725,803
    
    
    
    0.43Total futures contracts purchased
    
    
    
    

    
    
    2,489,254
    
    
    
    1.48Futures
Contracts SoldCurrencies
    
    
        106
    
    
    
        55,136
    
    
    
      0.03Energy
    
    
    292
    

    
    
    (806,648
    )
    
    
    (0.48
    )Grains
    
    
    803
    

    
    
    561,045
    
    
    
    0.33Indices
    
    
    3
    

    
    
    (1,787
    )
    
    
    (0.00
    )*Interest Rates Non-U.S.
    
    
    213
    

    
    
    (3,791
    )
    
    
    (0.00
    )*Total futures contracts sold
    
    
    
    
    
    
    (196,045
    )
    
    
    (0.12
    )Unrealized
Appreciation on Open Forward ContractsCurrencies
    
    
    736,657,473
    
    
    
    10,005,369
    
    
    
    5.96Metals
    
    
    313
    
    
    
    706,595
    
    
    
    0.42Total unrealized appreciation on open forward contracts
    
    
    
    
    
    
    10,711,964
    
    
    
    6.38Unrealized
Depreciation on Open Forward ContractsCurrencies
    
    
    691,383,422
    

    
    
    (8,635,629
    )
    
    
    (5.14
    )Metals
    
    
    259
    
    
    
    (730,824
    )
    
    
    (0.43
    )Total unrealized depreciation on open forward contracts
    
    
    
    
    
    
    (9,366,453
    )
    
    
    (5.57
    )Total fair value
    
    
    
    
    
    $
    3,638,720
    
    
    
    2.17
    %
  *
    
    Due to rounding. 7




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##### Table of Contents



Fairfield Futures Fund L.P. II
    Notes to Financial Statements
September 30, 2009
    (Unaudited)
   CMF
    Graham Capital Master Fund L.P.
    Schedule of Investments
December 31, 2008
    (Unaudited)
  Notional ($)/Number of





% of PartnersContracts



Fair Value



CapitalFutures Contracts PurchasedCurrencies


14


$
1,840




0.00
%*Energy


96



325,615




0.15Grains


52



13,370




0.01Indices


5




(19,645
)



(0.01
)Interest Rates U.S.


564




507,653





0.23Interest Rates Non-U.S.


1,235




947,609




0.42Metals


52




33,132




0.01Softs


13




3,251




0.00
*Total futures contracts purchased







1,812,825





0.81Futures Contracts SoldCurrencies


14




8,038




0.00
*Energy


159




(266,237
)




(0.12
)Grains


53




(207,227
)



(0.09
)Indices


87




(86,831
)



(0.04
)Interest Rates Non-U.S.


17




(9,163
)




(0.00
)*Livestock


11




25,220



0.01Metals


16




(35,970
)




(0.02
)Softs


99




(77,862
)



(0.03
)Total futures contracts sold







(650,032
)




(0.29
)Unrealized
Appreciation on Open Forward ContractsCurrencies


87,112,212



2,398,640




1.07Metals


59



297,268




0.13Total unrealized appreciation on open forward contracts






2,695,908




1.20Unrealized
Depreciation on Open Forward ContractsCurrencies


86,429,816



(2,764,819
)



(1.23
)Metals


96



(211,046
)



(0.10
)Total unrealized depreciation on open forward contracts






(2,975,865
)



(1.33
)Total fair value




$

882,836




0.39
% *
    
    Due to rounding. 8




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##### Table of Contents



Fairfield Futures Fund L.P. II
    Notes to Financial Statements
    September 30, 2009
    (Unaudited)
   CMF
    Graham Capital Master Fund L.P.
    Statements of Income and Expenses and Changes in Partners Capital
    (Unaudited)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Income:Net gains (losses) on trading of commodity
interests:Net realized gains (losses) on closed contracts
    
    $
    9,133,036
    
    
    $
    3,975,482
    
    
    $
    8,070,799
    
    
    $
    36,571,783Change in net unrealized gains (losses) on
open contracts
    
    
    5,280,884
    
    
    
    (12,809,411
    )
    
    
    2,755,884
    
    
    
    (7,468,054
    )Gain (loss) from trading, net
    
    
    14,413,920
    
    
    
    (8,833,929
    )
    
    
    10,826,683
    
    
    
    29,103,729Interest
income
    
    
    35,768
    
    
    
    617,423
    
    
    
    115,570
    
    
    
    2,132,568Total income
(loss)
    
    
    14,449,688
    
    
    
    (8,216,506
    )
    
    
    10,942,253
    
    
    
    31,236,297Expenses:Clearing fees
    
    
    199,492
    
    
    
    250,384
    
    
    
    485,767
    
    
    
    880,058Professional fees
    
    
    10,003
    
    
    
    6,591
    
    
    
    26,779
    
    
    
    23,465Total expenses
    
    
    209,495
    
    
    
    256,975
    
    
    
    512,546
    
    
    
    903,523Net income (loss)
    
    
    14,240,193
    
    
    
    (8,473,481
    )
    
    
    10,429,707
    
    
    
    30,332,774Additions  Limited Partners
    
    
    1,160,932
    
    
    
    2,162,496
    
    
    
    3,407,251
    
    
    
    5,096,496Redemptions  Limited Partners
    
    
    (13,332,649
    )
    
    
    (12,542,154
    )
    
    
    (70,189,637
    )
    
    
    (41,975,782
    )Distribution
of interest income to feeder funds
    
    
    (35,768
    )
    
    
    (617,423
    )
    
    
    (115,570
    )
    
    
    (2,132,568
    )Net increase (decrease) in Partners Capital
    
    
    2,032,708
    
    
    
    (19,470,562
    )
    
    
    (56,468,249
    )
    
    
    (8,679,080
    )Partners Capital, beginning of period
    
    
    165,989,985
    
    
    
    224,385,869
    
    
    
    224,490,942
    
    
    
    213,594,387Partners Capital, end of period
    
    $
    168,022,693
    
    
    $
    204,915,307
    
    
    $
    168,022,693
    
    
    $
    204,915,307Net Asset Value per Redeemable Unit
(103,297.2785 and 156,990.7273
Redeemable Units outstanding
at September 30, 2009 and 2008, respectively)
    
    $
    1,626.59
    
    
    $
    1,305.27
    
    
    $
    1,626.59
    
    
    $
    1,305.27Net income (loss) per
Redeemable Unit of Limited
Partnership
Interest
    
    $
    135.03
    
    
    $
    (52.04
    )
    
    $
    98.19
    
    
    $
    171.49Weighted average units outstanding
    
    
    108,885.8333
    
    
    
    162,427.2015
    
    
    
    123,360.1094
    
    
    
    172,790.0203
 9




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##### Table of Contents



Fairfield Futures Fund L.P. II
    Notes to Financial Statements
September 30, 2009
    (Unaudited)
  2.
    Financial
    Highlights:    Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    

September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Net realized and unrealized gains (losses) *
    
    $
    78.71
    
    
    $
    (52.05
    )
    
    $
    29.50
    
    
    $
    88.82Interest income
    
    
    0.23
    
    
    
    2.84
    
    
    
    0.68
    
    
    
    9.39Expenses **
    
    
    (9.15
    )
    
    
    (6.73
    )
    
    
    (23.76
    )
    
    
    (27.61
    )Increase
(decrease) for the period
    
    
    69.79
    
    
    
    (55.94
    )
    
    
    6.42
    
    
    
    70.60Net Asset
Value per Redeemable Unit, beginning of period
    
    
    1,012.84
    
    
    
    1,005.44
    
    
    
    1,076.21
    
    
    
    878.90Net Asset
Value per Redeemable Unit, end of period
    
    $
    1,082.63
    
    
    $
    949.50
    
    
    $
    1,082.63
    
    
    $
    949.50*    Includes Partnership brokerage
    commissions and expenses allocated from Master.**  Excludes Partnership brokerage commissions and
    expenses allocated from Master.Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    

September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Ratios to
average net assets:***Net
investment income (loss) before allocation to Special Limited Partner****
    
    
    (7.9
    )%
    
    
    (6.7
    )%
    
    
    (7.7
    )%
    
    
    (6.7
    )%Operating
expenses
    
    
    8.0
    %
    
    
    7.8
    %
    
    
    7.8
    %
    
    
    8.1
    %Allocation
to Special Limited Partner
    
    
    0.2
    %
    
    
    
    %
    
    
    0.1
    %
    
    
    0.8
    %Total
expenses and allocation to Special Limited Partner
    
    
    8.2
    %
    
    
    7.8
    %
    
    
    7.9
    %
    
    
    8.9
    %Total return:Total return
before allocation to Special Limited Partner
    
    
    7.1
    %
    
    
    (5.6
    )%
    
    
    0.8
    %
    
    
    9.0
    %Allocation
to Special Limited Partner
    
    
    (0.2
    )%
    
    
    
    %
    
    
    (0.2
    )%
    
    
    (1.0
    )%Total return after allocation
to Special Limited Partner
    
    
    6.9
    %
    
    
    (5.6
    )%
    
    
    0.6
    %
    
    
    8.0
    %    ***
    
    Annualized (except for allocation to Special Limited Partner, if
    applicable).****
    
    Interest income allocated from Master less total expenses.   10




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##### Table of Contents



Fairfield Futures Fund L.P. II
    Notes to Financial Statements
September 30, 2009
    (Unaudited)
  2.
    Financial
    Highlights (continued):  Financial
    Highlights of the Master:
  Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Net realized and unrealized gains (losses) *
    
    $
    134.78
    
    
    $
    (55.87
    )
    
    $
    97.43
    
    
    $
    159.11Interest income
    
    
    0.34
    
    
    
    3.87
    
    
    
    0.99
    
    
    
    12.51Expenses **
    
    
    (0.09
    )
    
    
    (0.04
    )
    
    
    (0.23
    )
    
    
    (0.13
    )Increase
(decrease) for the period
    
    
    135.03
    
    
    
    (52.04
    )
    
    
    98.19
    
    
    
    171.49Distribution
of interest income to feeder funds
    
    
    (0.34
    )
    
    
    (3.87
    )
    
    
    (0.99
    )
    
    
    (12.51
    )Net Asset
Value per Redeemable Unit, beginning of period
    
    
    1,491.90
    
    
    
    1,361.18
    
    
    
    1,529.39
    
    
    
    1,146.29Net Asset
Value per Redeemable Unit, end of period
    
    $
    1,626.59
    
    
    $
    1,305.27
    
    
    $
    1,626.59
    
    
    $
    1,305.27*    Includes brokerage commissions.**  Excludes brokerage commissions.Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Ratios to average net assets:***Net investment income (loss) ****

    
    (0.4
    )%
    
    
    0.7
    %
    
    
    (0.3
    )%
    
    
    0.8
    %Operating expenses

    
    0.5
    %
    
    
    0.5
    %
    
    
    0.4
    %
    
    
    0.6
    %Total return

    
    9.0
    %
    
    
    (3.8
    )%
    
    
    6.4
    %
    
    
    15.0
    %    ***
    
    Annualized.****
    
    Interest income less total expenses.    3.
    Trading
    Activities:       11




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##### Table of Contents



Fairfield Futures Fund L.P. II
    Notes to Financial Statements
September 30, 2009
    (Unaudited)
     September 30, 2009
    
    
    
    
    September 30, 2009Assets
    
    
    
    
    
    AssetsFutures Contracts
    
    
    
    
    
    Forward ContractsCurrencies
    
    $
    65,279
    
    
    Currencies
    
    $
    10,005,369Energy
    
    
    572,989
    
    
    Metals
    
    
    706,595Grains
    
    
    851,745Indices
    
    
    584,253Interest Rates U.S.
    
    
    331,524Interest Rates Non-U.S.
    
    
    1,369,649Livestock
    
    
    2,320Metals
    
    
    233,075Softs
    
    
    820,923Total unrealized appreciation on open futures contracts
    
    $
    4,831,757
    
    
    Total unrealized appreciation on open forward contracts
    
    $
    10,711,964Liabilities
    
    
    
    
    
    LiabilitiesFutures Contracts
    
    
    
    
    
    Forward ContractsCurrencies
    
    $
    (6,983
    )
    
    Currencies
    
    $
    (8,635,629
    )Energy
    
    
    (876,783
    )
    
    Metals
    
    
    (730,824
    )Grains
    
    
    (576,289
    )Indices
    
    
    (701,951
    )Interest Rates U.S.
    
    
    (34,564
    )Interest Rates Non-U.S.
    
    
    (168,944
    )Livestock
    
    
    (18,237
    )Metals
    
    
    (59,678
    )Softs
    
    
    (95,119
    )Total unrealized depreciation on open futures contracts
    
    $
    (2,538,548
    )
    
    Total unrealized depreciation on open forward contracts
    
    $
    (9,366,453
    )Net unrealized appreciation on open futures contracts
    
    $
    2,293,209
    *
    
    Net unrealized appreciation on open forward contracts
    
    $
    1,345,511
    **
 
 *
    
    This amount is included in Net unrealized appreciation on open futures contracts on the
Statements of Financial Condition.**
    
    This amount is included in Net unrealized appreciation on open forward contracts on the
Statements of Financial Condition. 12




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##### Table of Contents



Fairfield Futures Fund L.P. II
    Notes to Financial Statements
September 30, 2009
    (Unaudited)
  Three Months Ended
    
    
    Nine Months EndedSeptember 30, 2009
    
    
    September 30, 2009Sector
    
    Gain (loss) from trading
    
    
    Gain (loss) from tradingCurrencies
    
    $
    2,213,542
    
    
    $
    2,159,237Energy
    
    
    (1,878,912
    )
    
    
    (2,370,625
    )Grains
    
    
    827,204
    
    
    
    165,543Indices
    
    
    12,194,323
    
    
    
    12,164,274Interest Rates U.S.
    
    
    (1,012,589
    )
    
    
    (1,130,233
    )Interest Rates Non-U.S.
    
    
    (1,597,156
    )
    
    
    (1,475,093
    )Livestock
    
    
    (87,234
    )
    
    
    60,384Softs
    
    
    2,036,334
    
    
    
    1,029,899Metals
    
    
    1,718,408
    
    
    
    223,297Total
    
    $
    14,413,920
    
    
    $
    10,826,683
  4.
    Fair
    Value Measurement:  Investments.
    Quoted Prices in





SignificantActive Markets


Significant Other


Unobservablefor Identical


Observable Inputs


Inputs9/30/2009


Assets (Level 1)


(Level 2)


(Level 3)AssetsInvestment in Master

$
43,660,589


$



$
43,660,589


$
Total fair value

$
43,660,589


$



$
43,660,589


$
Quoted Prices inActive Markets


Significant Other


Significantfor Identical


Observable Inputs


Unobservable12/31/2008


Assets (Level 1)


(Level 2)


Inputs (Level 3)AssetsInvestment in Master
    
    $
    60,716,373
    
    
    $
    
    
    
    $
    60,716,373
    
    
    $
    Total fair value
    
    $
    60,716,373
    
    
    $
    
    
    
    $
    60,716,373
    
    
    $
     13




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##### Table of Contents



Fairfield Futures Fund L.P. II
    Notes to Financial Statements
September 30, 2009
    (Unaudited)
 Investments.
 Fair Value Measurements.
  Quoted Prices inActive Markets


Significant Other


Significantfor Identical


Observable Inputs


Unobservable9/30/2009


Assets (Level 1)


(Level 2)


Inputs (Level 3)AssetsFutures
    
    $
    2,293,209
    
    
    $
    2,293,209
    
    
    $
    
    
    
    $
    Forwards
    
    
    1,369,740
    
    
    
    
    
    
    
    1,369,740
    
    
    
    Total assets
    
    
    3,662,949
    
    
    
    2,293,209
    
    
    
    1,369,740
    
    
    
    LiabilitiesForwards
    
    $
    24,229
    
    
    $
    24,229
    
    
    $
    
    
    
    $
    Total liabilites
    
    
    24,229
    
    
    
    24,229
    
    
    
    
    
    
    
    Total fair value
    
    $
    3,638,720
    
    
    $
    2,268,980
    
    
    $
    1,369,740
    
    
    $
    Quoted Prices inActive Markets


Significant Other


Significantfor Identical


Observable Inputs


Unobservable12/31/2008


Assets (Level 1)


(Level 2)


Inputs (Level 3)AssetsFutures
    
    $
    1,162,793
    
    
    $
    1,162,793
    
    
    $
    
    
    
    $
    Forwards
    
    
    86,222
    
    
    
    86,222
    
    
    
    
    
    
    
    Total assets
    
    
    1,249,015
    
    
    
    1,249,015
    
    
    
    
    
    
    
    LiabilitiesForwards
    
    $
    366,179
    
    
    $
    
    
    
    $
    366,179
    
    
    $
    Total liabilites
    
    
    366,179
    
    
    
    
    
    
    
    366,179
    
    
    
    Total fair value
    
    $
    882,836
    
    
    $
    1,249,015
    
    
    $
    (366,179
    )
    
    $
    
 14




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##### Table of Contents



5.
    Financial
    Instrument Risks:      15




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##### Table of Contents



Item 2.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations.  Liquidity
    and Capital Resources
           Critical
    Accounting Policies
  Use of Estimates
  Statement of Cash Flows
  Investments
  Fair Value Measurements
     16




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##### Table of Contents



Futures Contracts
 Forward
Foreign Currency Contracts
  London Metals Exchange Forward Contracts
 Income Taxes
   Recent Accounting Pronouncements
 Subsequent Events
 17




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##### Table of Contents



Results
    of Operations
         30-day 3-month and/or 90-day
 18




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##### Table of Contents



19




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##### Table of Contents



Item 3.
    Quantitative
    and Qualitative Disclosures about Market Risk           one-day
  Form 10-K
    September 30, 2009
    (Unaudited)
 Three Months Ended September 30, 2009% of Total


High


Low


AverageMarket Sector

Value at Risk


Capitalization


Value at Risk


Value at Risk


Value at Risk*Currencies
    
    $
    6,395,662
    
    
    
    3.81
    %
    
    $
    8,136,447
    
    
    $
    3,040,693
    
    
    $
    5,464,391Energy
    
    
    678,527
    
    
    
    0.41
    %
    
    
    1,774,426
    
    
    
    484,382
    
    
    
    1,096,708Grains
    
    
    1,411,794
    
    
    
    0.84
    %
    
    
    1,846,996
    
    
    
    215,255
    
    
    
    1,126,000Interest Rates U.S.
    
    
    2,238,368
    
    
    
    1.33
    %
    
    
    2,365,808
    
    
    
    87,777
    
    
    
    682,461Interest Rates Non-U.S.
    
    
    8,320,518
    
    
    
    4.95
    %
    
    
    8,320,518
    
    
    
    471,498
    
    
    
    2,721,058Livestock
    
    
    36,180
    
    
    
    0.02
    %
    
    
    48,263
    
    
    
    15,660
    
    
    
    26,831Metals
    
    
    1,596,936
    
    
    
    0.95
    %
    
    
    1,806,942
    
    
    
    488,247
    
    
    
    1,265,220Softs
    
    
    1,479,945
    
    
    
    0.88
    %
    
    
    1,479,945
    
    
    
    511,314
    
    
    
    883,086Indices
    
    
    9,707,902
    
    
    
    5.78
    %
    
    
    12,019,804
    
    
    
    3,419,163
    
    
    
    8,269,216Total
    
    $
    31,865,832
    
    
    
    18.97
    %
 
  20




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##### Table of Contents



Item 4.
    Controls
    and Procedures      Rules 13a-15(e) 15d-15(e)
  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 Partnership;
    provide reasonable assurance that (i) transactions are
    recorded as necessary to permit preparation of financial
    statements in accordance with GAAP, and (ii) the Partnerships
    receipts are handled and expenditures are made only pursuant to
    authorizations of the General Partner; and
    provide reasonable assurance regarding prevention or timely
    detection of unauthorized acquisition, use or disposition of the
    Partnerships assets that could have a material effect on
    the financial statements.   21




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##### Table of Contents



PART II.
    OTHER INFORMATION  Item 1.
    Legal
    Proceedings  Form 10-K
 Subprime Mortgage-Related Litigation
 Asher, et al. v. Citigroup Inc., et al. Pellegrini v. Citigroup Inc.,
et al. In re Citigroup Inc. Bond Litigation
 Utah Retirement Systems v. Strauss, et al.
 In Re American Home Mortgage Securities Litigation
 In Re American International Group, Inc. 2008 Securities
Litigation
 Auction Rate SecuritiesRelated Litigation and Other Matters
 K-V Pharmaceutical Co. v. CGMI In Re Citigroup Auction Rate Securities Litigation
 In Re Citigroup Auction Rate Securities Litigation
 Ocwen Financial
Corp., et al. v. CGMI In Re Citigroup Auction Rate Securities Litigation
 Other Matters
 ECA
Acquisitions, Inc., et al. v. MAT Three LLC, et al.
 Adelphia Communications Corporation
  IPO Securities Litigation
  Other Matters
 Terra Securities Asa
Konkursbo, et al. v. Citigroup Inc., et al
 22




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##### Table of Contents



Item 1A.
    Risk
    Factors  Speculative position and trading limits may reduce profitability.
 Regulatory changes could restrict the Partnerships operations.
  Item 2.
    Unregistered
    Sales of Equity Securities and Use of Proceeds        (d) Maximum Number(or Approximate(c) Total Number



Dollar Value) of(b) Average



of Redeemable Units



Redeemable Units that(a) Total Number



Price Paid



Purchased as Part



May Yet Beof Redeemable



per Redeemable



of Publicly Announced



Purchased Under thePeriod


Units Purchased*



Unit*



Plans or Programs



Plans or ProgramsJuly 1, 2009 
    July 31, 2009



358.2036



$
1,033.22




N/A




N/AAugust 1, 2009 
    August 31, 2009



1,782.9848



$
1,048.13




N/A




N/ASeptember 1, 2009 
    September 30, 2009



140.1973



$
1,082.63




N/A




N/A2,281.3857



$
1,047.91




N/A




N/A       Item 3.
    Defaults
    Upon Senior Securities  None.  Item 4.
    Submission
    of Matters to a Vote of Security Holders  None.  Item 5.
    Other
    Information  None. 23




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##### Table of Contents



Item 6.
    Exhibits 3.1
    
    Limited Partnership Agreement (filed as Exhibit 3.1 to the Registration
Statement on Form 10 filed on April 29, 2005 and incorporated herein by reference).3.2
    
    Certificate of Limited Partnership of the Partnership as filed in the office
of the Secretary of State of the State of New York (filed as Exhibit 3.2 to the
Registration Statement on Form 10 filed on April 29, 2005 and incorporated herein by
reference).
 (a)
    
    Certificate of Amendment to the Certificate of Limited Partnership as
filed in the office of the Secretary of State of New York, dated September 21,
2005 (filed herein).(b)
    
    Certificate of Amendment to the Certificate of Limited Partnership as
filed in the office of the Secretary of State of New York, dated September 19,
2008 (filed herein).(c)
    
    Certificate of Amendment to the Certificate of Limited Partnership as
filed in the office of the Secretary of State of New York, dated September 28,
2009 (filed as Exhibit 99.1 to the Form 8-K filed on September 30, 2009 and
incorporated herein by reference).
 10.1
    
    Customer Agreement between the Partnership and CGM (filed as Exhibit 10.2 to
the Registration Statement on Form 10 filed on April 29, 2005 and incorporated herein
by reference).10.2
    
    Form of Subscription Agreement (filed herein).10.3
    
    Escrow Instructions relating to escrow of subscription funds (filed as
Exhibit 10.3 to the Registration Statement on Form 10 filed on April 29, 2005 and
incorporated herein by reference).10.4
    
    Agency Agreement among the Partnership, the General Partner and Citigroup
Global Markets Inc. (filed as Exhibit 10.3 to the Registration Statement on Form 10
filed on April 29, 2005 and incorporated herein by reference).
 (a)
    
    Joinder Agreement among the Partnership, the General Partner,
Citigroup Global Markets Inc. and Morgan Stanley Smith Barney LLC, dated June 1,
2009 (filed as Exhibit 10 to the Form 10-Q filed on August 14, 2009 and
incorporated herein by reference).
 10.5
    
    Management Agreement among the Partnership, the General Partner and Graham
Capital Management (filed as Exhibit 10.1 to the Registration Statement on Form 10
filed on April 29, 2005 and incorporated herein by reference).
 (a)
    
    Letter extending the Management Agreement between the General Partner
and Graham Capital Management L.P. for 2008 (filed as Exhibit 10.9 to the Form
10-K filed March 31, 2009 and incorporated herein by reference).
 23.1
    
    Consent from KPMG LLP dated March 26, 2009 (filed as Exhibit 23.1 to the Form
10-K filed on March 31, 2009 and incorporated herein by reference).
   
  24




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##### Table of Contents



SIGNATURES
    FAIRFIELD FUTURES FUND L.P. II
  By:

Ceres Managed Futures LLC(General Partner)By:

/s/ Jerry PascucciJerry Pascucci
    President and Director   November 16, 2009
  By:

/s/ Jennifer MagroJennifer Magro
    Chief Financial Officer and Director 
(Principal Accounting Officer)   November 16, 2009