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, 2011
 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
522 Fifth Avenue  14th Floor
New York, New York 10036
 
  (212) 296-1999
 
   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, 2011 (unaudited) and
December 31, 2010
    
    3Statements of Income and Expenses and Changes in Partners Capital for the three months ended March 31, 2011 and 2010 (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
    
    2630Exhibits31.1 Certification31.2 Certification32.1 Certification32.2 Certification
  2




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##### 



PART I
 
 Item 1. Financial Statements
 Fairfield Futures Fund L.P. II
 
 Statements of Financial Condition
 (Unaudited)March 31,
    
    
    December 31,2011
    
    
    2010Assets:Investment in Master, at fair value
    
    $
    36,441,079
    
    
    $
    38,570,051Cash
    
    
    221,268
    
    
    
    201,347Total assets
    
    $
    36,662,347
    
    
    $
    38,771,398Liabilities and Partners Capital:Liabilities:Accrued expenses:Brokerage fees
    
    $
    137,484
    
    
    $
    145,393Management fees
    
    
    60,634
    
    
    
    64,178Administrative fees
    
    
    15,158
    
    
    
    16,045Other
    
    
    144,515
    
    
    
    118,947Redemptions payable
    
    
    1,331,677
    
    
    
    469,933Total liabilities
    
    
    1,689,468
    
    
    
    814,496Partners Capital:General Partner, 546.3187 unit equivalents outstanding at
March 31, 2011 and December 31, 2010
    
    
    564,205
    
    
    
    579,475Special Limited Partner, 442.4015 units outstanding at
March 31, 2011 and December 31, 2010
    
    
    456,886
    
    
    
    469,251Limited Partners, 32,875.5567 and 34,796.4209 Redeemable Units
outstanding at March 31, 2011 and December 31, 2010, respectively
    
    
    33,951,788
    
    
    
    36,908,176Total partners capital
    
    
    34,972,879
    
    
    
    37,956,902Total liabilities and partners capital
    
    $
    36,662,347
    
    
    $
    38,771,398Net asset value per unit
    
    $
    1,032.74
    
    
    $
    1,060.69
  3




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##### 



Fairfield Futures Fund L.P. II
 
 Statements of Income and Expenses and Changes in Partners Capital
(Unaudited)
 Three Months EndedMarch 31,2011
    
    
    2010Investment Income:Interest Income allocated from Master
    
    $
    7,283
    
    
    $
    4,827Expenses:Expenses allocated from Master
    
    
    41,099
    
    
    
    28,647Brokerage fees
    
    
    424,974
    
    
    
    454,179Management fees
    
    
    187,468
    
    
    
    200,960Administrative fees
    
    
    46,866
    
    
    
    50,240Other
    
    
    47,279
    
    
    
    41,886Total expenses
    
    
    747,686
    
    
    
    775,912Net investment income (loss)
    
    
    (740,403
    )
    
    
    (771,085
    )Trading Results:Net realized gains (losses) on closed contracts allocated from Master
    
    
    (5,433
    )
    
    
    (1,774,206
    )Change in net unrealized gains (losses) on open contracts allocated
from Master
    
    
    (232,405
    )
    
    
    614,908Total
trading results allocated from Master
    
    
    (237,838
    )
    
    
    (1,159,298
    )Net income (loss)
    
    
    (978,241
    )
    
    
    (1,930,383
    )Subscriptions  Limited Partners
    
    
    
    
    
    
    1,562,000Redemptions  General Partner
    
    
    
    
    
    
    (700,077
    )Redemptions  Limited Partners
    
    
    (2,005,782
    )
    
    
    (1,676,619
    )Net increase (decrease) in Partners Capital
    
    
    (2,984,023
    )
    
    
    (2,745,079
    )Partners Capital, beginning of period
    
    
    37,956,902
    
    
    
    43,365,226Partners Capital, end of period
    
    $
    34,972,879
    
    
    $
    40,620,147Net asset value per unit (33,864.2769 and 39,641.9234
units outstanding at March 31, 2011 and 2010, respectively)
    
    $
    1,032.74
    
    
    $
    1,024.68Net income (loss) per unit*
    
    $
    (27.95
    )
    
    $
    (46.93
    )Weighted average units outstanding
    
    
    35,508.6293
    
    
    
    39,926.3534
    4




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##### 



Fairfield Futures Fund L.P. II
 
 Notes to Financial Statements
March 31, 2011
(Unaudited)
 1.   General:
         5




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##### 



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2011
(Unaudited)
    6




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##### 



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2011
(Unaudited)
  CMF Graham Capital Master Fund L.P.
Statements of Financial Condition
 (Unaudited)March 31,
    
    
    December 31,2011
    
    
    2010Assets:Equity in trading account:Cash
    
    $
    134,428,781
    
    
    $
    151,476,359Cash margin
    
    
    21,613,395
    
    
    
    14,248,524Net unrealized appreciation on open futures contracts
    
    
    2,500,328
    
    
    
    1,429,574Net unrealized appreciation on open forward contracts
    
    
    
    
    
    
    1,819,046Total assets
    
    $
    158,542,504
    
    
    $
    168,973,503Liabilities and Partners Capital:Liabilities:Net unrealized depreciation on open forward contracts
    
    $
    274,210
    
    
    $
    Accrued expenses:Professional fees
    
    
    61,464
    
    
    
    48,832Total liabilities
    
    
    335,674
    
    
    
    48,832Partners Capital:General Partner, 0.0000 unit equivalents at March 31, 2011 and
December 31, 2010
    
    
    
    
    
    
    Limited Partners, 90,873.9466 and 96,248.2420
units outstanding at March 31, 2011 and December 31, 2010,
respectively
    
    
    158,206,830
    
    
    
    168,924,671Total liabilities and partners capital
    
    $
    158,542,504
    
    
    $
    168,973,503Net asset value per unit
    
    $
    1,740.95
    
    
    $
    1,755.09
 7




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##### 



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2011
(Unaudited)
 CMF Graham Capital Master Fund L.P.
Condensed Schedule of Investments
March 31, 2011
 (Unaudited)
 Notional ($)/Number of
    
    
    
    
    
    
    % of PartnersContracts
    
    
    Fair Value
    
    
    CapitalFutures
Contracts PurchasedCurrencies
    
    
    166
    
    
    $
    211,647
    
    
    
    0.13
    %Energy
    
    
    291
    
    
    
    552,163
    
    
    
    0.35Grains
    
    
    245
    
    
    
    261,726
    
    
    
    0.17Indices
    
    
    721
    
    
    
    431,307
    
    
    
    0.27Interest Rates U.S.
    
    
    1,373
    
    
    
    (224,399
    )
    
    
    (0.14
    )Interest Rates Non-U.S.
    
    
    238
    
    
    
    (175,378
    )
    
    
    (0.11
    )Livestock
    
    
    53
    
    
    
    123,655
    
    
    
    0.08Metals
    
    
    96
    
    
    
    511,509
    
    
    
    0.32Softs
    
    
    92
    
    
    
    (219,017
    )
    
    
    (0.14
    )Total futures contracts purchased
    
    
    
    
    
    
    1,473,213
    
    
    
    0.93Futures
Contracts SoldCurrencies
    
    
    164
    
    
    
    132,923
    
    
    
    0.08Energy
    
    
    71
    
    
    
    (55,448
    )
    
    
    (0.03
    )Grains
    
    
    76
    
    
    
    (124,775
    )
    
    
    (0.08
    )Indices
    
    
    104
    
    
    
    (313,055
    )
    
    
    (0.20
    )Interest Rates U.S.
    
    
    491
    
    
    
    94,574
    
    
    
    0.06Interest Rates Non-U.S.
    
    
    2,450
    
    
    
    1,263,035
    
    
    
    0.80Softs
    
    
    24
    
    
    
    29,861
    
    
    
    0.02Total futures contracts sold
    
    
    
    
    
    
    1,027,115
    
    
    
    0.65Unrealized Appreciation on Open Forward ContractsCurrencies
    
    $
    791,015,926
    
    
    
    9,388,021
    
    
    
    5.93Metals
    
    
    115
    
    
    
    355,428
    
    
    
    0.23Total unrealized appreciation on open forward contracts
    
    
    
    
    
    
    9,743,449
    
    
    
    6.16Unrealized Depreciation on Open Forward ContractsCurrencies
    
    $
    781,603,579
    
    
    
    (9,708,776
    )
    
    
    (6.13
    )Metals
    
    
    112
    
    
    
    (308,883
    )
    
    
    (0.20
    )Total unrealized depreciation on open forward contracts
    
    
    
    
    
    
    (10,017,659
    )
    
    
    (6.33
    )Net fair value
    
    
    
    
    
    $
    2,226,118
    
    
    
    1.41
    %
 8




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##### 



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2011
(Unaudited)
 CMF Graham Capital Master Fund L.P.
Condensed Schedule of Investments
December 31, 2010
  Notional ($)/Number of





% of PartnersContracts


Fair Value


CapitalFutures Contracts PurchasedCurrencies


228


$
359,313



0.21
%Energy


283



315,626



0.19Grains


266



558,739



0.33Indices


1,248



(459,198
)


(0.27
)Interest Rates U.S.


504



67,408



0.04Interest Rates
    Non-U.S.


203



53,235



0.03Livestock


40



9,485



0.00
*Metals


116



778,969



0.46Softs


73



266,456



0.16Total futures contracts purchased






1,950,033



1.15Futures Contracts SoldCurrencies


77



29,787



0.02Energy


25



(61,340
)


(0.04
)Grains


10



(33,100
)


(0.02
)Indices


56



15,505



0.01Interest Rates U.S.


308



(68,192
)


(0.04
)Interest Rates
    Non-U.S.


1,570



(394,024
)


(0.23
)Metals


1



(7,875
)


(0.01
)Softs


5



(1,220
)


(0.00
)*Total futures contracts sold






(520,459
)


(0.31
)Unrealized Appreciation on Open Forward ContractsCurrencies

$
437,368,583



6,906,040



4.09Metals


91



653,412



0.39Total unrealized appreciation on open forward contracts






7,559,452



4.48Unrealized Depreciation on Open Forward ContractsCurrencies

$
362,272,604



(5,591,385
)


(3.31
)Metals


23



(149,021
)


(0.09
)Total unrealized depreciation on open forward contracts






(5,740,406
)


(3.40
)Net fair value





$
3,248,620



1.92
% *
    
    Due to rounding.
 9




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##### 



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2011
(Unaudited)
 CMF Graham Capital Master Fund L.P.
Statements of Income and Expenses and Changes in Partners Capital
(Unaudited)
  Three Months EndedMarch 31,2011
    
    
    2010Investment Income:Interest income
    
    $
    31,454
    
    
    $
    20,418Expenses:Clearing fees
    
    
    155,078
    
    
    
    103,022Professional fees
    
    
    22,632
    
    
    
    16,712Total expenses
    
    
    177,710
    
    
    
    119,734Net investment income (loss)
    
    
    (146,256
    )
    
    
    (99,316
    )Trading Results:Net gains (losses) on trading of commodity interests:Net realized gains (losses) on closed contracts
    
    
    (48,218
    )
    
    
    (7,243,824
    )Change in net unrealized gains (losses) on open contracts
    
    
    (1,022,502
    )
    
    
    3,300,638Total
trading results
    
    
    (1,070,720
    )
    
    
    (3,943,186
    )Net income (loss)
    
    
    (1,216,976
    )
    
    
    (4,042,502
    )Subscriptions  Limited Partners
    
    
    
    
    
    
    27,645,697Redemptions  Limited Partners
    
    
    (9,469,411
    )
    
    
    (21,264,114
    )Distribution of interest income to feeder funds
    
    
    (31,454
    )
    
    
    (20,418
    )Net increase (decrease) in Partners Capital
    
    
    (10,717,841
    )
    
    
    2,318,663Partners Capital, beginning of period
    
    
    168,924,671
    
    
    
    171,212,260Partners Capital, end of period
    
    $
    158,206,830
    
    
    $
    173,530,923Net asset value per unit (90,873.9466 and 108,613.7805
units outstanding at March 31, 2011 and 2010, respectively)
    
    $
    1,740.95
    
    
    $
    1,597.69Net income (loss) per unit*
    
    $
    (13.80
    )
    
    $
    (42.53
    )Weighted average units outstanding
    
    
    93,736.6352
    
    
    
    112,101.8549
   10




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##### 



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2011
(Unaudited)
 2.   Financial Highlights:
  Three Months EndedMarch 31,2011
    
    
    2010Net realized and unrealized gains (losses) *
    
    $
    (20.08
    )
    
    $
    (39.62
    )Interest income
    
    
    0.20
    
    
    
    0.12Expenses **
    
    
    (8.07
    )
    
    
    (7.43
    )Increase (decrease) for the period
    
    
    (27.95
    )
    
    
    (46.93
    )Net asset value per unit, beginning of period
    
    
    1,060.69
    
    
    
    1,071.61Net asset value per unit, end of period
    
    $
    1,032.74
    
    
    $
    1,024.68
 *
    
    Includes Partnership brokerage fees and clearing fees allocated from the Master.**
    
    Excludes Partnership brokerage fees and clearing fees allocated from the Master.
 Three Months EndedMarch 31,2011
    
    
    2010Ratios to average net assets:***Net investment income (loss) before allocation to
Special Limited Partner****
    
    
    (8.1
    )%
    
    
    (7.8
    )%Operating expenses
    
    
    8.2
    %
    
    
    7.8
    %Allocation to Special Limited Partner
    
    
    
    %
    
    
    
    %Total expenses
    
    
    8.2
    %
    
    
    7.8
    %Total return:Total return before allocation to Special
Limited Partner
    
    
    (2.6
    )%
    
    
    (4.4
    )%Allocation to Special Limited Partner
    
    
    
    %
    
    
    
    %Total return after allocation to Special
Limited Partner
    
    
    (2.6
    )%
    
    
    (4.4
    )%
 ***
    
    Annualized (except for allocation to Special Limited Partner, if applicable).****
    
    Interest income allocated from the Master less total expenses.
  11




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##### 



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2011
(Unaudited)
  Three Months EndedMarch 31,2011
    
    
    2010Net realized and unrealized gains (losses) *
    
    $
    (13.90
    )
    
    $
    (42.57
    )Interest income
    
    
    0.34
    
    
    
    0.19Expenses **
    
    
    (0.24
    )
    
    
    (0.15
    )Increase (decrease) for the period
    
    
    (13.80
    )
    
    
    (42.53
    )Distribution of interest income to feeder funds
    
    
    (0.34
    )
    
    
    (0.19
    )Net asset value per unit, beginning of period
    
    
    1,755.09
    
    
    
    1,640.41Net asset value per unit, end of period
    
    $
    1,740.95
    
    
    $
    1,597.69
 *
    
    Includes clearing fees.**
    
    Excludes clearing fees.
 Three Months EndedMarch 31,2011
    
    
    2010Ratios to average net assets:***Net investment income (loss)****
    
    
    (0.4
    )%
    
    
    (0.2
    )%Operating expenses
    
    
    0.4
    %
    
    
    0.3
    %Total return
    
    
    (0.8
    )%
    
    
    (2.6
    )%
 ***
    
    Annualized.****
    
    Interest income less total expenses.
  3.   Trading Activities:
    12




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##### 



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2011
(Unaudited)
  March 31, 2011AssetsFutures ContractsCurrencies
    
    $
    351,018Energy
    
    
    564,902Grains
    
    
    333,408Indices
    
    
    531,433Interest Rates U.S.
    
    
    228,642Interest Rates Non-U.S.
    
    
    1,356,610Livestock
    
    
    123,655Metals
    
    
    598,896Softs
    
    
    36,700Total unrealized appreciation on open futures contracts
    
    $
    4,125,264LiabilitiesFutures ContractsCurrencies
    
    $
    (6,448
    )Energy
    
    
    (68,187
    )Grains
    
    
    (196,457
    )Indices
    
    
    (413,181
    )Interest Rates U.S.
    
    
    (358,467
    )Interest Rates Non-U.S.
    
    
    (268,953
    )Metals
    
    
    (87,387
    )Softs
    
    
    (225,856
    )Total unrealized depreciation on open futures contracts
    
    $
    (1,624,936
    )Net unrealized appreciation on open futures contracts
    
    $
    2,500,328
    *AssetsForward ContractsCurrencies
    
    $
    9,388,021Metals
    
    
    355,428Total unrealized appreciation on open forward contracts
    
    $
    9,743,449LiabilitiesForward ContractsCurrencies
    
    $
    (9,708,776
    )Metals
    
    
    (308,883
    )Total unrealized depreciation on open forward contracts
    
    $
    (10,017,659
    )Net unrealized depreciation on open forward contracts
    
    $
    (274,210)
    **
 
 *
    
    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 depreciation on open
forward contracts on the Masters Statements of Financial Condition.
 13




---



##### 



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2011
(Unaudited)
 December 31, 2010AssetsFutures ContractsCurrencies

$
406,727Energy


333,430Grains


560,664Indices


184,453Interest Rates U.S.


145,320Interest Rates
    Non-U.S.


71,168Livestock


9,485Metals


778,969Softs


297,786Total unrealized appreciation on open futures contracts

$
2,788,002LiabilitiesFutures ContractsCurrencies

$
(17,627
)Energy


(79,144
)Grains


(35,025
)Indices


(628,146
)Interest Rates U.S.


(146,104
)Interest Rates
    Non-U.S.


(411,957
)Metals


(7,875
)Softs


(32,550
)Total unrealized depreciation on open futures contracts

$
(1,358,428
)Net unrealized appreciation on open futures contracts

$
1,429,574
*AssetsForward ContractsCurrencies

$
6,906,040Metals


653,412Total unrealized appreciation on open forward contracts

$
7,559,452LiabilitiesForward ContractsCurrencies

$
(5,591,385
)Metals


(149,021
)Total unrealized depreciation on open forward contracts

$
(5,740,406
)Net unrealized appreciation on open forward contracts

$
1,819,046
** 
 *
    
    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 March 31,Sector
    
    2011
    
    
    2010Currencies
    
    $
    (1,718,471
    )
    
    $
    134,058Energy
    
    
    1,146,153
    
    
    
    (9,678
    )Grains
    
    
    (109,559
    )
    
    
    241,683Indices
    
    
    (1,267,640
    )
    
    
    (3,173,756
    )Interest Rates U.S.
    
    
    (1,337,400
    )
    
    
    (871,170
    )Interest Rates Non-U.S.
    
    
    269,082
    
    
    
    2,225,302Livestock
    
    
    132,388
    
    
    
    237,965Metals
    
    
    870,154
    
    
    
    (865,965
    )Softs
    
    
    944,573
    
    
    
    (1,861,625
    )Total
    
    $
    (1,070,720)
    ***
    
    $
    (3,943,186)
    ***
 
 ***
    
    This amount is in Total trading results on the Masters Statements of Income and
Expenses and Changes in Partners Capital. 14




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##### 



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2011
(Unaudited)
 4.   Fair Value Measurement:
 Partnerships Investments.
 Partnerships Fair Value
    Measurements.
    Quoted Prices in
    
    
    
    
    
    
    SignificantActive Markets
    
    
    Significant Other
    
    
    Unobservablefor Identical
    
    
    Observable Inputs
    
    
    InputsMarch
31, 2011
    
    
    Assets (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)AssetsInvestment in MasterNet fair value
    
    $
    36,441,079
    
    
    $
    
    
    
    $
    36,441,079
    
    
    $
    $
    36,441,079
    
    
    $
    
    
    
    $
    36,441,079
    
    
    $
    Quoted Prices inActive Markets
    
    
    Significant Other
    
    
    Significantfor Identical
    
    
    Observable Inputs
    
    
    UnobservableDecember
31, 2010
    
    
    Assets (Level 1)
    
    
    (Level 2)
    
    
    Inputs (Level 3)AssetsInvestment in Master
    
    $
    38,570,051
    
    
    $
    
    
    
    $
    38,570,051
    
    
    $
    Net fair value
    
    $
    38,570,051
    
    
    $
    
    
    
    $
    38,570,051
    
    
    $
    
 15




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##### 



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2011
(Unaudited)
 Masters Investments.
 Masters Fair Value Measurements.
    Quoted Prices inActive Markets
    
    
    Significant Other
    
    
    Significantfor Identical
    
    
    Observable Inputs
    
    
    UnobservableMarch
31, 2011
    
    
    Assets (Level 1)
    
    
    (Level 2)
    
    
    Inputs  (Level 3)AssetsFutures
    
    $
    4,125,264
    
    
    $
    4,125,264
    
    
    $
    
    
    
    $
    Forwards
    
    
    9,743,449
    
    
    
    355,428
    
    
    
    9,388,021
    
    
    
    Total assets
    
    
    13,868,713
    
    
    
    4,480,692
    
    
    
    9,388,021
    
    
    
    LiabilitiesFutures
    
    $
    1,624,936
    
    
    $
    1,624,936
    
    
    $
    
    
    
    $
    Forwards
    
    
    10,017,659
    
    
    
    308,883
    
    
    
    9,708,776
    
    
    
    Total
liabilities
    
    
    11,642,595
    
    
    
    1,933,819
    
    
    
    9,708,776
    
    
    
    Net fair value
    
    $
    2,226,118
    
    
    $
    2,546,873
    
    
    $
    (320,755
    )
    
    $
    
 Quoted Prices inActive Markets
    
    
    Significant Other
    
    
    Significantfor Identical
    
    
    Observable Inputs
    
    
    UnobservableDecember
31, 2010*
    
    
    Assets (Level 1)
    
    
    (Level 2)
    
    
    Inputs (Level 3)AssetsFutures
    
    $
    2,788,002
    
    
    $
    2,788,002
    
    
    $
    
    
    
    $
    Forwards
    
    
    7,559,452
    
    
    
    653,412
    
    
    
    6,906,040
    
    
    
    Total assets
    
    
    10,347,454
    
    
    
    3,441,414
    
    
    
    6,906,040
    
    
    
    LiabilitiesFutures
    
    $
    1,358,428
    
    
    $
    1,358,428
    
    
    $
    
    
    
    $
    Forwards
    
    
    5,740,406
    
    
    
    149,021
    
    
    
    5,591,385
    
    
    
    Total
liabilities
    
    
    7,098,834
    
    
    
    1,507,449
    
    
    
    5,591,385
    
    
    
    Net fair value
    
    $
    3,248,620
    
    
    $
    1,933,965
    
    
    $
    1,314,655
    
    
    $
    
 
 *
    
    The amounts have been reclassified from the December 31, 2010 prior year
financial statements to conform to current year presentation based on new fair value guidance. 16




---



##### 



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2011
(Unaudited)
 5.   Financial Instrument Risks:
       17




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##### 



Fairfield Futures Fund L.P. II

Notes to Financial Statements
March 31, 2011
(Unaudited)
 6.    Critical Accounting Policies
 Use of Estimates
 Partnerships Investments
 Partnerships and Masters Fair Value Measurements
     Futures Contracts
 18




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##### 



Fairfield Futures Fund L.P. II
Notes to Financial Statements
March 31, 2011
(Unaudited)
 Forward Foreign Currency Contracts
  London Metals Exchange Forward Contracts
 Income Taxes
   Subsequent Events.
 Net
Income (Loss) per unit
 19




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##### 



Item 2.
    Managements Discussion and Analysis of Financial Condition and Results of
Operations.
 Liquidity and Capital Resources
      Critical Accounting Policies
   20




---



##### 



Results of Operations
    21




---



##### 



22




---



##### 



Item 3.
    Quantitative and Qualitative Disclosures about Market Risk
       23




---



##### 



March
31, 2011
 Three Months Ended March 31, 2011% of Total
    
    
    High
    
    
    Low
    
    
    AverageMarket Sector
    

Value at Risk
    
    

Capitalization
    
    

Value at Risk
    
    

Value
at Risk
    
    

Value at Risk*Currencies
    
    $
    10,526,667
    
    
    
    6.65
    %
    
    $
    14,645,028
    
    
    $
    5,042,022
    
    
    $
    9,712,741Energy
    
    
    1,121,320
    
    
    
    0.71
    %
    
    
    1,221,130
    
    
    
    430,473
    
    
    
    715,112Grains
    
    
    478,650
    
    
    
    0.30
    %
    
    
    624,700
    
    
    
    436,750
    
    
    
    497,655Indices
    
    
    4,094,626
    
    
    
    2.59
    %
    
    
    11,180,261
    
    
    
    3,276,704
    
    
    
    6,785,775Interest Rates U.S.
    
    
    829,155
    
    
    
    0.52
    %
    
    
    1,205,145
    
    
    
    545,675
    
    
    
    851,529Interest Rates Non-U.S.
    
    
    2,782,686
    
    
    
    1.76
    %
    
    
    3,022,899
    
    
    
    1,439,332
    
    
    
    2,717,692Livestock
    
    
    63,600
    
    
    
    0.04
    %
    
    
    63,600
    
    
    
    38,000
    
    
    
    42,867Metals
    
    
    1,048,048
    
    
    
    0.66
    %
    
    
    1,637,443
    
    
    
    616,825
    
    
    
    1,030,163Softs
    
    
    375,073
    
    
    
    0.24
    %
    
    
    491,327
    
    
    
    241,774
    
    
    
    354,051Total
    
    $
    21,319,825
    
    
    
    13.47
    %
 
 *
    
    Average month-end Values at Risk.  December 31, 2010
 Twelve
Months Ended December 31, 2010% of Total
    
    
    High
    
    
    Low
    
    
    Average*Market Sector
    
    Value at Risk
    
    
    Capitalization
    
    
    Value at Risk
    
    
    Value at Risk
    
    
    Value at RiskCurrencies
    
    $
    6,192,975
    
    
    
    3.67
    %
    
    $
    11,364,239
    
    
    $
    996,231
    
    
    $
    5,226,199Energy
    
    
    1,048,521
    
    
    
    0.62
    %
    
    
    1,989,347
    
    
    
    236,269
    
    
    
    1,000,222Grains
    
    
    448,450
    
    
    
    0.26
    %
    
    
    964,687
    
    
    
    124,875
    
    
    
    411,118Indices
    
    
    5,301,813
    
    
    
    3.14
    %
    
    
    13,726,706
    
    
    
    1,137,775
    
    
    
    5,507,221Interest Rates U.S.
    
    
    161,600
    
    
    
    0.10
    %
    
    
    2,021,410
    
    
    
    68,806
    
    
    
    1,014,515Interest Rates Non-U.S.
    
    
    1,209,918
    
    
    
    0.72
    %
    
    
    4,305,447
    
    
    
    749,055
    
    
    
    2,006,426Livestock
    
    
    40,000
    
    
    
    0.02
    %
    
    
    106,400
    
    
    
    800
    
    
    
    50,304Metals
    
    
    1,012,127
    
    
    
    0.60
    %
    
    
    1,771,142
    
    
    
    494,357
    
    
    
    993,963Softs
    
    
    258,565
    
    
    
    0.15
    %
    
    
    1,144,148
    
    
    
    85,988
    
    
    
    385,351Total
    
    $
    15,673,969
    
    
    
    9.28
    %
 
 *
    
    Annual average of month-end Values at Risk. 24




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##### 



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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##### 



PART II. OTHER INFORMATION
 Item 1.
    Legal Proceedings
    Mutual Funds
    FINRA Settlement
  Auction Rate Securities
   26




---



##### 



Subprime Mortgage-Related Actions
    Credit Crisis Related Matters
    27




---



##### 



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, 2011 January 31, 2011
    
    
    
    198.1316
    
    
    
    $
    1,054.46
    
    
    
    N/A
    
    
    N/AFebruary 1, 2011 February 28, 2011
    
    
    
    433.2721
    
    
    
    $
    1,073.65
    
    
    
    N/A
    
    
    N/AMarch 1, 2011 March 31, 2011
    
    
    

1,289.4605
    
    
    
    $
    1,032.74
    
    
    
    N/A
    
    
    N/A1,920.8642
    
    
    
    $

1,044.21
    
    
    
    N/A
    
    
    N/A
   Item 3.
    Defaults Upon Senior Securities  None.
 Item 4.
    [Removed and Reserved]
 Item 5.
    Other Information  None.
 28




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##### 



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).(d)
    
    Certificate of Amendment of the Certificate of Limited Partnership as filed in the office of the Secretary of State of New York,
 dated June 29, 2010 (filed as Exhibit 3.2(d) to the Form 8-K filed on July 2, 2010 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 2010 (filed as Exhibit 10.4(a) to the Form 10-K filed March 31,
2011 and incorporated herein by reference).
     
 29




---



##### 



SIGNATURES
   FAIRFIELD FUTURES FUND L.P. II
  By:

Ceres Managed Futures LLC(General Partner)By:

/s/ Walter DavisWalter Davis
    President and Director     By:

/s/ Jennifer MagroJennifer Magro
    Chief Financial Officer and Director 
(Principal Accounting Officer)    30