##### 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 March 31, 2010
 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
    
    (I.R.S. Employerincorporation or organization)
    
    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
  Large accelerated filer
    
    Accelerated filer
    
    Non-accelerated filer X
    
    Smaller reporting company
  Yes  No X




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##### 



FAIRFIELD FUTURES FUND L.P. II
 FORM 10-Q
 INDEX
 PagePART I - Financial Information:
    
    NumberItem 1.
    
    Financial Statements:Statements of Financial Condition at March 31, 2010 and December 31, 2009 (unaudited)
    
    3Statements of Income and Expenses and Changes in Partners Capital for the three
months ended March 31, 2010 and 2009 (unaudited)
    
    4Notes to Financial Statements, including the Financial Statements of CMF Graham
Capital Master Fund L.P. (unaudited)
    
    519Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    2022Item 3.
    
    Quantitative and Qualitative Disclosures about Market Risk
    
    2324Item 4.
    
    Controls and Procedures
    
    25PART II - Other Information
    
    26Exhibits31.1 Certification31.2 Certification32.1 Certification32.2 CertificationEX-31.1EX-31.2EX-32.1EX-32.2
  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)
 March 31,
    
    
    December 31,2010
    
    
    2009Assets:Investment in Master, at fair value
    
    $
    40,877,952
    
    
    $
    44,070,980Cash
    
    
    108,336
    
    
    
    103,564Total assets
    
    $
    40,986,288
    
    
    $
    44,174,544Liabilities and Partners Capital:Liabilities:Accrued expenses:Brokerage fees
    
    $
    153,699
    
    
    $
    165,655Management fees
    
    
    68,010
    
    
    
    73,303Administrative fees
    
    
    17,002
    
    
    
    18,326Other
    
    
    26,593
    
    
    
    27,194Redemptions payable
    
    
    100,837
    
    
    
    524,840Total liabilities
    
    
    366,141
    
    
    
    809,318Partners Capital:General Partner, 546.3187 and 1,250.2679 Unit
equivalents outstanding at March 31, 2010 and
December 31, 2009, respectively
    
    
    559,802
    
    
    
    1,339,800Special Limited Partner, 442.4015 Redeemable
Units of Limited Partnership Interest
outstanding at March 31, 2010 and December 31,
2009
    
    
    453,320
    
    
    
    474,082Limited Partners, 38,653.2032 and 38,774.5548
Redeemable Units of Limited Partnership Interest
outstanding at March 31, 2010 and December 31,
2009, respectively
    
    
    39,607,025
    
    
    
    41,551,344Total partners capital
    
    
    40,620,147
    
    
    
    43,365,226Total liabilities and partners capital
    
    $
    40,986,288
    
    
    $
    44,174,544Net Asset Value per Unit
    
    $
    1,024.68
    
    
    $
    1,071.61
  3




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##### Table of Contents



Fairfield Futures Fund L.P. II
Statements of Income and Expenses and Changes in Partners Capital
(Unaudited)
 Three Months EndedMarch 31,2010
    
    

2009Income:Net realized gains (losses) on closed contracts allocated
from Master
    
    $
    (1,774,206
    )
    
    $
    209,572Change in net unrealized gains (losses) on open contracts
allocated from Master
    
    
    614,908
    
    
    
    (585,551
    )Interest income allocated from Master
    
    
    4,827
    
    
    
    10,591Expenses allocated from Master
    
    
    (28,647
    )
    
    
    (31,830
    )Total income (loss)
    
    
    (1,183,118
    )
    
    
    (397,218
    )Expenses:Brokerage fees
    
    
    454,179
    
    
    
    558,746Management fees
    
    
    200,960
    
    
    
    247,032Administrative fees
    
    
    50,240
    
    
    
    61,758Other
    
    
    41,886
    
    
    
    33,501Total expenses
    
    
    747,265
    
    
    
    901,037Net income (loss) before allocation to Special Limited Partner
    
    
    (1,930,383
    )
    
    
    (1,298,255
    )Allocation to Special Limited Partner
    
    
    
    
    
    
    Net income (loss) after allocation to Special Limited
Partner
    
    
    (1,930,383
    )
    
    
    (1,298,255
    )Additions  Limited Partners
    
    
    1,562,000
    
    
    
    605,000Redemptions  General Partner
    
    
    (700,077
 )
    
    
    Redemptions  Limited Partners
    
    
    (1,676,619
    )
    
    
    (6,145,906
    )Redemptions  Special Limited Partner
    
    
    
    
    
    
    (1,250,000
    )Net increase (decrease) in Partners Capital
    
    
    (2,745,079
    )
    
    
    (8,089,161
    )Partners Capital, beginning of period
    
    
    43,365,226
    
    
    
    52,801,572Partners Capital, end of period
    
    $
    40,620,147
    
    
    $
    44,712,411Net Asset Value per Unit (39,641.9234 and 42,736.8632 Units
outstanding at March 31, 2010 and 2009, respectively)
    
    $
    1,024.68
    
    
    $
    1,046.23Net income (loss) per Redeemable Unit of Limited Partnership
Interest and General Partner Unit equivalent
    
    $
    (46.93
    )
    
    $
    (29.98
    )Weighted average units outstanding
    
    
    39,926.3534
    
    
    
    46,011.4381
  4




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##### Table of Contents



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2010
(Unaudited)
 1.   General:
         5




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##### Table of Contents



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2010
(Unaudited)
      6




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##### Table of Contents



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2010
(Unaudited)
  CMF Graham Capital Master Fund L.P.
Statements of Financial Condition
(Unaudited)
 March 31,
    
    
    December 31,2010
    
    
    2009Assets:Equity in trading account:Cash
    
    $
    137,401,197
    
    
    $
    153,765,196Cash margin
    
    
    30,868,219
    
    
    
    15,503,558Net unrealized appreciation on open futures contracts
    
    
    3,990,467
    
    
    
    406,652Net
unrealized appreciation on open forward contracts
    
    
    1,279,616
    
    
    
    1,562,793Total assets
    
    $
    173,539,499
    
    
    $
    171,238,199Liabilities and Partners Capital:Liabilities:Accrued expenses:Professional fees
    
    $
    8,576
    
    
    $
    25,939Total liabilities
    
    
    8,576
    
    
    
    25,939Partners Capital:General Partner, 0.0000 Unit equivalents at March 31, 2010 and December 31, 2009
    
    
    
    
    
    
    Limited Partners, 108,613.7805 and 104,371.4673 Redeemable Units of Limited
Partnership Interest outstanding at March 31, 2010 and December 31, 2009,
respectively
    
    
    173,530,923
    
    
    
    171,212,260Total liabilities and partners capital
    
    $
    173,539,499
    
    
    $
    171,238,199Net Asset Value per Redeemable Unit
    
    $
    1,597.69
    
    
    $
    1,640.41
 7




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##### Table of Contents



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2010
(Unaudited)
 CMF Graham Capital Master Fund L.P.
Condensed Schedule of Investments
March 31, 2010
 (Unaudited)
 Notional ($)/ Number of
    
    
    
    
    
    
    % of PartnersContracts
    
    
    Fair Value
    
    
    CapitalFutures Contracts PurchasedCurrencies
    
    
    109
    
    
    $
    21,323
    
    
    
    0.01
    %Energy
    
    
    697
    
    
    
    1,359,272
    
    
    
    0.78Grains
    
    
    134
    
    
    
    (36,408
    )
    
    
    (0.02
    )Indices
    
    
    2,987
    
    
    
    1,137,681
    
    
    
    0.66Interest Rates U.S.
    
    
    854
    
    
    
    (131,134
    )
    
    
    (0.08
    )Interest Rates Non-U.S.
    
    
    3,153
    
    
    
    356,744
    
    
    
    0.21Livestock
    
    
    122
    
    
    
    134,391
    
    
    
    0.08Metals
    
    
    145
    
    
    
    254,465
    
    
    
    0.15Softs
    
    
    158
    
    
    
    38,168
    
    
    
    0.02Total futures contracts purchased
    
    
    
    
    
    
    3,134,502
    
    
    
    1.81Futures Contracts SoldCurrencies
    
    
    15
    
    
    
    (22,175
    )
    
    
    (0.01
    )Energy
    
    
    673
    
    
    
    9,422
    
    
    
    0.01Grains
    
    
    743
    
    
    
    993,532
    
    
    
    0.57Indices
    
    
    13
    
    
    
    (19,181
    )
    
    
    (0.01
    )Interest Rates U.S.
    
    
    121
    
    
    
    (45,262
    )
    
    
    (0.03
    )Interest Rates Non-U.S.
    
    
    757
    
    
    
    100,543
    
    
    
    0.06Metals
    
    
    25
    
    
    
    (11,988
    )
    
    
    (0.01
    )Softs
    
    
    119
    
    
    
    (148,926
    )
    
    
    (0.09
    )Total futures contracts sold
    
    
    
    
    
    
    855,965
    
    
    
    0.49Unrealized Appreciation on Open Forward ContractsCurrencies
    
    $
    582,900,624
    
    
    
    7,029,635
    
    
    
    4.05Metals
    
    
    145
    
    
    
    355,293
    
    
    
    0.21Total unrealized appreciation on open forward contracts
    
    
    
    
    
    
    7,384,928
    
    
    
    4.26Unrealized Depreciation on Open Forward ContractsCurrencies
    
    $
    480,371,238
    
    
    
    (5,955,270
    )
    
    
    (3.43
    )Metals
    
    
    48
    
    
    
    (150,042
    )
    
    
    (0.09
    )Total unrealized depreciation on open forward contracts
    
    
    
    
    
    
    (6,105,312
    )
    
    
    (3.52
    )Total fair value
    
    
    
    
    
    $
    5,270,083
    
    
    
    3.04
    %
 8




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##### Table of Contents



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2010
(Unaudited)
 CMF Graham Capital Master Fund L.P.
Condensed Schedule of Investments
December 31, 2009
(Unaudited)
  Notional ($)/Number of





% of PartnersContracts


Fair Value


CapitalFutures Contracts PurchasedCurrencies


2


$
360



0.00
%*Energy


449



242,192



0.14Grains


286



34,342



0.02Indices


1,065



633,603



0.37Interest Rates U.S.


233



(94,262
)


(0.06
)Interest Rates
    Non-U.S.


1,523



(996,822
)


(0.58
)Livestock


74



20,482



0.01Metals


78



(100,473
)


(0.06
)Softs


589



556,321



0.33Total futures contracts purchased






295,743



0.17Futures Contracts SoldCurrencies


69



11,480



0.01Energy


308



(40,301
)


(0.02
)Grains


275



57,491



0.03Indices


7



6,437



0.00
*Interest Rates U.S.


50



(406
)


(0.00
)*Interest Rates
    Non-U.S.


451



57,808



0.03Metals


10



18,400



0.01Total futures contracts sold






110,909



0.06Unrealized Appreciation on Open Forward ContractsCurrencies

$
550,199,867



7,739,782



4.52Metals


429



2,324,147



1.36Total unrealized appreciation on open forward contracts






10,063,929



5.88Unrealized Depreciation on Open Forward ContractsCurrencies

$
551,949,465



(7,486,471
)


(4.37
)Metals


285



(1,014,665
)


(0.59
)Total unrealized depreciation on open forward contracts






(8,501,136
)


(4.96
)Total fair value





$
1,969,445



1.15
% *
    
    Due to rounding.
 9




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##### Table of Contents



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2010
(Unaudited)
 CMF Graham Capital Master Fund L.P.
Statements of Income and Expenses and Changes in Partners Capital
(Unaudited)
  Three Months EndedMarch 31,2010
    
    
    2009Income:Net gains (losses) on trading of commodity interests:Net realized gains (losses) on closed contracts
    
    $
    (7,243,824
    )
    
    $
    1,019,322Change in net unrealized gains (losses) on open
contracts
    
    
    3,300,638
    
    
    
    (2,397,781
    )Gain (loss) from trading, net
    
    
    (3,943,186
    )
    
    
    (1,378,459
    )Interest income
    
    
    20,418
    
    
    
    44,764Total income (loss)
    
    
    (3,922,768
    )
    
    
    (1,333,695
    )Expenses:Clearing fees
    
    
    103,022
    
    
    
    124,195Professional fees
    
    
    16,712
    
    
    
    8,055Total expenses
    
    
    119,734
    
    
    
    132,250Net income (loss)
    
    
    (4,042,502
    )
    
    
    (1,465,945
    )Additions  Limited Partners
    
    
    27,645,697
    
    
    
    1,605,319Redemptions  Limited Partners
    
    
    (21,264,114
    )
    
    
    (35,023,076
    )Distribution of interest income to feeder funds
    
    
    (20,418
    )
    
    
    (44,764
    )Net increase (decrease) in Partners Capital
    
    
    2,318,663
    
    
    
    (34,928,466
    )Partners Capital, beginning of period
    
    
    171,212,260
    
    
    
    224,490,942Partners Capital, end of period
    
    $
    173,530,923
    
    
    $
    189,562,476Net Asset Value per Redeemable Unit (108,613.7805 and
125,235.7645 Redeemable Units outstanding at March 31,
2010 and 2009, respectively)
    
    $
    1,597.69
    
    
    $
    1,513.64Net income (loss) per Redeemable Unit of Limited
Partnership Interest
    
    $
    (42.53
    )
    
    $
    (15.41
    )Weighted average units outstanding
    
    
    112,101.8549
    
    
    
    141,232.1007
 10




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##### Table of Contents



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2010
(Unaudited)
 2.   Financial Highlights:
  Three Months EndedMarch 31,2010
    
    
    2009Net realized and unrealized gains (losses) *
    
    $
    (39.62
    )
    
    $
    (22.81
    )Interest income
    
    
    0.12
    
    
    
    0.24Expenses **
    
    
    (7.43
    )
    
    
    (7.41
    )Increase (decrease) for the period
    
    
    (46.93
    )
    
    
    (29.98
    )Net Asset Value per Redeemable Unit, beginning of period
    
    
    1,071.61
    
    
    
    1,076.21Net Asset Value per Redeemable Unit, end of period
    
    $
    1,024.68
    
    
    $
    1,046.23
 *
    
    Includes Partnership brokerage fees and clearing fees allocated from Master.**
    
    Excludes Partnership brokerage fees and clearing fees allocated from Master.
 Three Months EndedMarch 31,2010
    
    
    2009Ratios to average net assets:***Net investment income (loss) before allocation to Special Limited Partner****
    
    
    (7.8
    )%
    
    
    (7.7
    )%Operating expenses
    
    
    7.8
    %
    
    
    7.8
    %Allocation to Special Limited Partner
    
    
    
    %
    
    
    
    %Total expenses
    
    
    7.8
    %
    
    
    7.8
    %Total return:Total return before allocation to Special Limited Partner
    
    
    (4.4
    )%
    
    
    (2.8
    )%Allocation to Special Limited Partner
    
    
    
    %
    
    
    
    %Total return after allocation to Special Limited Partner
    
    
    (4.4
    )%
    
    
    (2.8
    )%
 ***
    
    Annualized (except for allocation to Special Limited Partner, if applicable).****
    
    Interest income allocated from Master less total expenses.
  11




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##### Table of Contents



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2010
(Unaudited)
  Three Months EndedMarch 31,2010
    
    
    2009Net realized and unrealized gains (losses) *
    
    $
    (42.57
    )
    
    $
    (15.69
    )Interest income
    
    
    0.19
    
    
    
    0.34Expenses **
    
    
    (0.15
    )
    
    
    (0.06
    )Increase (decrease) for the period
    
    
    (42.53
    )
    
    
    (15.41
    )Distribution of interest income to feeder funds
    
    
    (0.19
    )
    
    
    (0.34
    )Net Asset Value per Redeemable Unit, beginning of period
    
    
    1,640.41
    
    
    
    1,529.39Net Asset Value per Redeemable Unit, end of period
    
    $
    1,597.69
    
    
    $
    1,513.64
 *
    
    Includes clearing fees.**
    
    Excludes clearing fees.
 Three Months EndedMarch
31,2010
    
    

2009Ratios to average net assets:***Net investment income (loss) ****
    
    
    (0.2
    )%
    
    
    (0.2
    )%Operating expenses
    
    
    0.3
    %
    
    
    0.3
    %Total return
    
    
    (2.6
    )%
    
    
    (1.0
    )%
 ***
    
    Annualized.****
    
    Interest income less total expenses.
  3.   Trading Activities:
    12




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##### Table of Contents



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2010
(Unaudited)
  March 31, 2010AssetsFutures
ContractsCurrencies
    
    $
    48,568Energy
    
    
    2,256,049Grains
    
    
    1,003,873Indices
    
    
    1,650,745Interest Rates U.S.
    
    
    29,268Interest Rates Non-U.S.
    
    
    951,375Livestock
    
    
    137,371Metals
    
    
    266,727Softs
    
    
    169,000Total unrealized appreciation on open futures contracts
    
    $
    6,512,976LiabilitiesFutures
ContractsCurrencies
    
    $
    (49,420
    )Energy
    
    
    (887,355
    )Grains
    
    
    (46,749
    )Indices
    
    
    (532,245
    )Interest Rates U.S.
    
    
    (205,664
    )Interest Rates Non-U.S.
    
    
    (494,088
    )Livestock
    
    
    (2,980
    )Metals
    
    
    (24,250
    )Softs
    
    
    (279,758
    )Total unrealized depreciation on open futures contracts
    
    $
    (2,522,509
    )Net unrealized appreciation on open futures contracts
    
    $
    3,990,467
    *March 31, 2010AssetsForward
ContractsCurrencies
    
    $
    7,029,635Metals
    
    
    355,293Total unrealized appreciation on open forward contracts
    
    $
    7,384,928LiabilitiesForward
ContractsCurrencies
    
    $
    (5,955,270
    )Metals
    
    
    (150,042
    )Total unrealized depreciation on open forward contracts
    
    $
    (6,105,312
    )Net unrealized appreciation on open forward contracts
    
    $
    1,279,616
    **
 
 *
    
    This amount is in Net unrealized appreciation on open
futures contracts on the Masters Statements of Financial Condition.**
    
    This amount is in Net unrealized appreciation on open
forward contracts on the Masters Statements of Financial Condition.
 13




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##### Table of Contents



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2010
(Unaudited)
 December 31, 2009AssetsFutures ContractsCurrencies

$
29,498Energy


357,695Grains


223,296Indices


871,966Interest Rates U.S.


10,273Interest Rates
    Non-U.S.


169,828Livestock


20,482Metals


93,687Softs


810,673Total unrealized appreciation on open futures contracts

$
2,587,398LiabilitiesFutures ContractsCurrencies

$
(17,658
)Energy


(155,804
)Grains


(131,463
)Indices


(231,926
)Interest Rates U.S.


(104,941
)Interest Rates
    Non-U.S.


(1,108,842
)Metals


(175,760
)Softs


(254,352
)Total unrealized depreciation on open futures contracts

$
(2,180,746
)Net unrealized appreciation on open futures contracts

$
406,652
*AssetsForward ContractsCurrencies

$
7,739,782Metals


2,324,147Total unrealized appreciation on open forward contracts

$
10,063,929LiabilitiesForward ContractsCurrencies

$
(7,486,471
)Metals


(1,014,665
)Total unrealized depreciation on open forward contracts

$
(8,501,136
)Net unrealized appreciation on open forward contracts

$
1,562,793
** 
 *
    
    This amount is in Net unrealized appreciation on open
    futures contracts on the Masters Statements of
    Financial Condition.**
    
    This amount is in Net unrealized appreciation on open
    forward contracts on the Masters Statements of
    Financial Condition.  Three Months Ended
    
    
    Three Months EndedMarch 31, 2010
    
    
    March 31, 2009Sector
    
    Gain (loss) from trading
    
    
    Gain (loss) from tradingCurrencies
    
    $
    134,058
    
    
    $
    (1,441,645
    )Energy
    
    
    (9,678
    )
    
    
    715,890Grains
    
    
    241,683
    
    
    
    (512,858
    )Indices
    
    
    (3,173,756
    )
    
    
    929,326Interest Rates U.S.
    
    
    (871,170
    )
    
    
    (602,408
    )Interest Rates Non-U.S.
    
    
    2,225,302
    
    
    
    877,979Livestock
    
    
    237,965
    
    
    
    125,556Metals
    
    
    (865,965
    )
    
    
    (1,027,106
    )Softs
    
    
    (1,861,625
    )
    
    
    (443,193
    )Total
    
    $
    (3,943,186
    )***
    
    $
    (1,378,459
    )***
 
 ***
    
    This amount is in Gain (loss) from trading, net on the Masters Statements of Income and
Expenses and Changes in Partners Capital. 14




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##### Table of Contents



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2010
(Unaudited)
 4.   Fair Value Measurement:
 Partnerships Investments.
 Partnerships Fair Value Measurements.
   15




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##### Table of Contents



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2010
(Unaudited)
 Quoted Prices in
    
    
    
    
    
    
    SignificantActive Markets
    
    
    Significant Other
    
    
    Unobservablefor Identical
    
    
    Observable Inputs
    
    
    Inputs3/31/2010
    
    
    Assets (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)AssetsInvestment in MasterTotal fair value
    
    $
    40,877,952
    
    
    $
    
    
    
    $
    40,877,952
    
    
    $
    $
    40,877,952
    
    
    $
    
    
    
    $
    40,877,952
    
    
    $
    Quoted Prices inActive Markets
    
    
    Significant Other
    
    
    Significantfor Identical
    
    
    Observable Inputs
    
    
    Unobservable12/31/2009
    
    
    Assets (Level 1)
    
    
    (Level 2)
    
    
    Inputs (Level 3)AssetsInvestment in Master
    
    $
    44,070,980
    
    
    $
    
    
    
    $
    44,070,980
    
    
    $
    Total fair value
    
    $
    44,070,980
    
    
    $
    
    
    
    $
    44,070,980
    
    
    $
    
 Masters Investments.
 Masters Fair Value Measurements.
 16




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##### Table of Contents



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2010
(Unaudited)
  Quoted Prices inActive Markets
    
    
    Significant Other
    
    
    Significantfor Identical
    
    
    Observable Inputs
    
    
    Unobservable3/31/2010
    
    

Assets (Level 1)
    
    

(Level 2)
    
    

Inputs (Level 3)AssetsFutures
    
    $
    3,990,467
    
    
    $
    3,990,467
    
    
    $
    
    
    
    $
    Forwards
    
    
    1,279,616
    
    
    
    205,251
    
    
    
    1,074,365
    
    
    
    Total assets
    
    
    5,270,083
    
    
    
    4,195,718
    
    
    
    1,074,365
    
    
    
    Total fair value
    
    $
    5,270,083
    
    
    $
    4,195,718
    
    
    $
    1,074,365
    
    
    $
    Quoted Prices inActive Markets
    
    
    Significant Other
    
    
    Significantfor Identical
    
    
    Observable Inputs
    
    
    Unobservable12/31/2009
    
    

Assets (Level 1)
    
    

(Level
2)
    
    

Inputs (Level 3)AssetsFutures
    
    $
    406,652
    
    
    $
    406,652
    
    
    $
    
    
    
    $
    Forwards
    
    
    1,562,793
    
    
    
    1,309,482
    
    
    
    253,311
    
    
    
    Total assets
    
    
    1,969,445
    
    
    
    1,716,134
    
    
    
    253,311
    
    
    
    Total fair value
    
    $
    1,969,445
    
    
    $
    1,716,134
    
    
    $
    253,311
    
    
    $
    
 5.   Financial Instrument Risks:
      17




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##### Table of Contents



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2010
(Unaudited)
 6.    Critical Accounting Policies
 Use of Estimates
 Statement of Cash Flows
 Partnerships Investments
 Partnerships and the Masters Fair Value Measurements
   Futures Contracts
 Forward Foreign Currency Contracts
  18




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##### Table of Contents



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2010
(Unaudited)
 London Metals Exchange Forward Contracts
 Income Taxes
   Subsequent Events
 Recent Accounting Pronouncements
  Net Income (Loss) per Redeemable Unit
 19




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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
 Partnerships Investments
 Partnerships and the Masters Fair Value Measurements
   Futures Contracts
 20




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##### Table of Contents



Forward Foreign Currency Contracts
  London Metals Exchange Forward Contracts
 Results of Operations
      21




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22




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Item 3.
    Quantitative and Qualitative Disclosures about Market Risk
       23




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##### Table of Contents



March 31, 2010
(Unaudited)
 Three Months Ended March 31, 2010% of Total
    
    
    High
    
    
    Low
    
    
    AverageMarket Sector
    

Value at Risk
    
    

Capitalization
    
    

Value at Risk
    
    

Value
at Risk
    
    

Value at Risk*Currencies
    
    $
    5,908,731
    
    
    
    3.40
    %
    
    $
    6,008,186
    
    
    $
    1,372,618
    
    
    $
    3,215,427Energy
    
    
    1,646,017
    
    
    
    0.95
    %
    
    
    1,646,017
    
    
    
    236,269
    
    
    
    977,806Grains
    
    
    842,890
    
    
    
    0.49
    %
    
    
    964,687
    
    
    
    449,250
    
    
    
    716,901Interest Rates U.S.
    
    
    548,097
    
    
    
    0.32
    %
    
    
    1,192,375
    
    
    
    68,806
    
    
    
    657,819Interest Rates Non-U.S.
    
    
    3,802,830
    
    
    
    2.19
    %
    
    
    4,305,447
    
    
    
    757,824
    
    
    
    2,799,663Livestock
    
    
    97,600
    
    
    
    0.06
    %
    
    
    106,400
    
    
    
    60,000
    
    
    
    89,067Metals
    
    
    1,201,963
    
    
    
    0.69
    %
    
    
    1,504,876
    
    
    
    494,357
    
    
    
    912,735Softs
    
    
    436,174
    
    
    
    0.25
    %
    
    
    1,144,148
    
    
    
    436,174
    
    
    
    700,338Indices
    
    
    11,617,981
    
    
    
    6.69
    %
    
    
    11,617,981
    
    
    
    1,646,140
    
    
    
    5,650,039Total
    
    $
    26,102,283
    
    
    
    15.04
    %
 
 *
    
    Average month end Values at Risk. 24




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##### Table of Contents



Item 4.
    Controls and Procedures
    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.
  25




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##### Table of Contents



PART II. OTHER INFORMATION
 Item 1.
    Legal Proceedings
  Credit Crisis Related Matters
   26




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##### Table of Contents



Item 1A.
    Risk Factors
  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 ProgramsJanuary 1, 2010 January 31, 2010
    
    
    
    1,357.1915
    
    
    
    $
    994.50
    
    
    
    N/A
    
    
    N/AFebruary 1, 2010 February 28, 2010
    
    
    
    227.2734
    
    
    
    $
    994.64
    
    
    
    N/A
    
    
    N/AMarch 1, 2010 March 31, 2010
    
    
    
    98.4086
    
    
    
    $
    1,024.68
    
    
    
    N/A
    
    
    N/A1,682.8735
    
    
    
    $
    996.28
    
    
    
    N/A
    
    
    N/A
   Item 3.
    Defaults Upon Senior Securities  None.
 Item 4.
    [Removed and Reserved]
 Item 5.
    Other Information  None.
 27




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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 3.1 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 as Exhibit 3.2A to the Form 10-Q filed on November 16, 2009 and incorporated herein by reference).(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 as Exhibit 3.2B to the Form 10-Q filed on November 16, 2009 and incorporated herein by reference).(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 as Exhibit 10.4 to the Partnerships Form 10 filed on April 29, 2005 and incorporated herein by reference).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 CGM  (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, CGM 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
(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
 for 2008 (filed as Exhibit 10.9 to the Form 10-K filed March 31,
2009 and incorporated herein by reference).
     
 28




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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   May 17, 2010
  By:

/s/ Jennifer MagroJennifer Magro
    Chief Financial Officer and Director 
(Principal Accounting Officer)   May 17, 2010
 29