| x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|--------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------|

| DELAWARE(State or other jurisdiction ofincorporation or organization) |   | 75-2197831(I.R.S. EmployerIdentification No.) |
|-----------------------------------------------------------------------|--------|-----------------------------------------------|
|                                                                  |   |                                          |

----

| Large accelerated filer   o | Accelerated filer    o |
|---------------------------------------|---------------------------------------|
| Non-accelerated filer   o   | Smaller reporting company  x     |

----

----

----

----

----

| Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |
|---------|---------------------------------------------------------------------------------------------------------------------|

| Item 6.  | Selected Financial Data. |
|---------------|--------------------------|

| Item 7.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
|---------------|----------------------------------------------------------------------------------------------|

----

----

----

----

----

----

| Item 7A. | Quantitative and Qualitative Disclosures About Market Risk |
|----------|------------------------------------------------------------|

| Item 8.  | Financial Statements and Supplementary Data. |
|---------------|----------------------------------------------|

| Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. |
|---------|---------------------------------------------------------------------------------------|

|   | None. |
|--------|-------|

| Item 9A(T).  | Controls and Procedures. |
|-------------------|--------------------------|

----

| Item 9B.  | Other Information. |
|----------------|--------------------|

|   | None. |
|--------|-------|

| Item 10. | Directors, Executive Officers and Corporate Governance. |
|----------|---------------------------------------------------------|

----

| Item 11.  | Executive Compensation. |
|----------------|-------------------------|

| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. |
|----------|-------------------------------------------------------------------------------------------------|

|   | (c) | Changes in control.  None have occurred and none are expected. |
|--------|-----|--------------------------------------------------------------------------|

| Item 13.  | Certain Relationships and Related Transactions, and Director Independence. |
|----------------|----------------------------------------------------------------------------|

| Item 14.  | Principal Accounting Fees and Services. |
|----------------|-----------------------------------------|

|   |       | 2009                      | 2008   |
|--------|------------|---------------------------|--------|
|   |       |                      |   |
|   | Audit Fees | $     | 84,500 | $      | 63,500 |

|   | Audit fees relate to the annual audit, quarterly reviews, and services normally provided by the independent accountant in connection with statutory and regulatory filings. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | Financial Statements. |
|--------|-----|-----------------------|

|   | (b) | Exhibits. |
|--------|-----|-----------|

| *1.1 | Form of Selling Agreement between the Partnership and ProFutures Financial Group, Inc.                                       |
|------|-----------------------------------------------------------------------------------------------------------------------------------|
| *1.2 | Form of Additional Selling Agents Agreement between ProFutures Financial Group, Inc. and certain Additional Selling Agents.  |
| *3.1 | Agreement of Limited Partnership (attached to the Prospectus as Exhibit A).                                                  |
| *3.2 | Subscription Agreement and Power of Attorney (attached to the Prospectus as Exhibit B).                                      |
| *3.3 | Request for Redemption Form (attached to the Prospectus as Exhibit C).                                                       |
| *5.1 | Opinion of Counsel as to the legality of the Units.                                                                          |

----

| *8.1   | Tax Opinion of Counsel.                                                                                                                               |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.4   | Form of Amended and Restated Consulting Agreement between the Registrant and Altegris Investments, Inc.                                               |
| 10.6   | Form of Stock Subscription Agreement by and between Man Financial Inc. (now MF Global Inc.) and ProFutures, Inc.                                      |
| 31.01  | Certification of Gary D. Halbert, President, pursuant to Rules 13a-14 and 15d-14 of the Securities Exchange Act of 1934.                              |
| 31.02  | Certification of Debi B. Halbert, Chief Financial Officer, pursuant to Rules 13a-14 and 15d-14 of the Securities Exchange Act of 1934.                |
| 32.01  | Certification of Gary D. Halbert, President, pursuant to 18 U.S.C. Section 1350 as enacted by Section 906 of The Sarbanes-Oxley Act of 2002.          |
| 32.02  | Certification of Debi B. Halbert, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350 as enacted by Section 906 of The Sarbanes-Oxley Act of 2002. |
|   |                                                                                                                                                       |

|   | (c) | Financial Statement Schedules. |
|--------|-----|--------------------------------|

|   | Not applicable or information included in the financial statements. |
|--------|---------------------------------------------------------------------|

----

|                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|----------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                             |   | PROFUTURES DIVERSIFIED FUND, L.P.                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                             |   | (Partnership)                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| April 15, 2010                         |   | By /s/ GARY D. HALBERT                                                                                 |
| Date                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Gary D. Halbert, President and Director |
|                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | ProFutures, Inc. |
|                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | General Partner |
|                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
| April 15, 2010                    |   | By /s/ DEBI B. HALBERT                                                                            |
| Date                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Debi B. Halbert, Chief Financial Officer, |
|                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |     Treasurer and Director |
|                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | ProFutures, Inc. |
|                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | General Partner |
|                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |

----

|                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| April 15, 2010                     |   | By /s/ GARY D. HALBERT                                                                            |
| Date                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Gary D. Halbert, President and Director |
|                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | ProFutures, Inc. |
|                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | General Partner |
|                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
| April 15, 2010                               |   | By /s/ DEBI B. HALBERT                                                                                 |
| Date                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Debi B. Halbert, Chief Financial Officer, |
|                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |     Treasurer and Director |
|                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | ProFutures, Inc. |
|                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | General Partner |
|                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |

----

----

|   | PAGES  |
|--------|--------|
|   |   |

| Report of Independent Registered Public Accounting Firm | F-3    |
|---------------------------------------------------------|--------|
|                                                    |   |
| Financial Statements                                    |   |
|                                                    |   |

|      Statements of Financial Condition  | F-4    |
|------------------------------------------------------------------|--------|
|                                                             |   |

|      Condensed Schedules of Investments  | F-5 – F-9 |
|-------------------------------------------------------------------|-----------------|
|                                                              |            |

|      Statements of Operations  | F-10 –F- 11 |
|---------------------------------------------------------|-------------------|
|                                                    |              |

|      Statements of Changes in Partners’ Capital (Net Asset Value) | F-12   |
|---------------------------------------------------------------------------------------------|--------|
|                                                                                        |   |

|      Statements of Cash Flows  | F-13   |
|---------------------------------------------------------|--------|
|                                                    |   |

|      Notes to Financial Statements    | F-14 – F-31 |
|--------------------------------------------------------------------------|-------------------|
|                                                                     |              |

----

----

----

|                                                       |   | 2009   |       |   | 2008   |   |
|------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| ASSETS                                                     |   |   |       |   |   |   |
| Equity in broker trading accounts                          |   |   |       |   |   |   |
| Cash                                                       |   | $      | 4,181,743  |   |   | $      | 6,035,775 |   |
| Net unrealized gain (loss) on open futures contracts       |   |   | 267,330    |   |   |   | 289,265 |   |
|  Deposits with broker                                 |   |   | 4,449,073  |   |   |   | 6,325,040 |   |
|                                                       |   |   |       |   |   |   |   |   |
| Cash                                                       |   |   | 577        |   |   |   | 3,533 |   |
| Investment in other commodity pools                        |   |   | 9,275,174  |   |   |   | 12,583,933 |   |
| Redemption receivable from other commodity pools           |   |   | 600,000    |   |   |   | 1,315,742 |   |
|                                                       |   |   |       |   |   |   |   |   |
| Total assets                                               |   | $      | 14,324,824 |   |   | $      | 20,228,248 |   |
|                                                       |   |   |       |   |   |   |   |   |
| LIABILITIES                                                |   |   |       |   |   |   |   |   |
| Accounts payable                                           |   | $      | 43,635     |   |   | $      | 40,823 |   |
| Commissions and other trading fees payable                 |   |   | 1,524      |   |   |   | 1,576 |   |
| Incentive fee payable                                      |   |   | 0          |   |   |   | 185,497 |   |
| Management fees payable (includes $44,594 and              |   |   |       |   |   |   |   |   |
| $129,324 payable to the General Partner at                 |   |   |       |   |   |   |   |   |
| December 31, 2009 and 2008, respectively)                  |   |   | 70,642     |   |   |   | 156,423 |   |
| Redemptions payable                                        |   |   | 532,984    |   |   |   | 342,900 |   |
|                                                       |   |   |       |   |   |   |   |   |
| Total liabilities                                          |   |   | 648,785    |   |   |   | 727,219 |   |
|                                                       |   |   |       |   |   |   |   |   |
| PARTNER’S CAPITAL (Net Asset Value)                  |   |   |       |   |   |   |   |   |
| Partners’ Capital (Non-restricted units):            |   |   |       |   |   |   |   |   |
| General Partner – 184 and 173 units outstanding      |   |   |       |   |   |   |   |   |
| at December 31, 2009 and 2008, respectively                |   |   | 464,548    |   |   |   | 543,779 |   |
| Limited Partners – 5,225 and 5,686 units outstanding |   |   |       |   |   |   |   |   |
| at December 31, 2009 and 2008, respectively                |   |   | 13,211,491 |   |   |   | 17,851,493 |   |
| Partners’ Capital (Side pocket/restricted units):    |   |   |       |   |   |   |   |   |
| General Partner – 0 and 12 units outstanding         |   |   |       |   |   |   |   |   |
| at December 31, 2009 and 2008, respectively                |   |   | 0          |   |   |   | 32,232 |   |
| Limited Partners – 0 and 403 units outstanding       |   |   |       |   |   |   |   |   |
| at December 31, 2009 and 2008, respectively                |   |   | 0          |   |   |   | 1,073,525 |   |
|                                                       |   |   |       |   |   |   |   |   |
| Total partners’ capital (Net Asset Value)            |   |   | 13,676,039 |   |   |   | 19,501,029 |   |
|                                                       |   |   |       |   |   |   |   |   |
|                                                       |   | $      | 14,324,824 |   |   | $      | 20,228,248 |   |
|                                                       |   |   |       |   |   |   |   |   |

----

|   | 2009 |   | 2008 |
|--------|------|--------|------|

|                                                                          |   | Fair Value |    |   | % of Net Asset Value |   |   | Fair Value |   |   | % of Net Asset Value |   |
|-------------------------------------------------------------------------------|--------|------------|---------|--------|----------------------|--------|--------|------------|--------|--------|----------------------|--------|
|                                                                          |   |       |    |   |                 |   |   |       |   |   |                 |   |
| LONG FUTURES CONTRACTS(1)                                                     |   |       |    |   |                 |   |   |       |   |   |                 |   |
| Description                                                                   |   |       |    |   |                 |   |   |       |   |   |                 |   |
| U.S.                                                                          |   |       |    |   |                 |   |   |       |   |   |                 |   |
| Agricultural                                                                  |   | $          | 138,381 |   |                 |   | 1.01   | %          |   | $      | 67,037               |   |   |   | 0.34 | % |
| Currency                                                                      |   |       | 42,046  |   |                 |   | 0.31   | %          |   |   | 0                    |   |   |   | 0.00 | % |
| Energy                                                                        |   |       | 1,740   |   |                 |   | 0.01   | %          |   |   | 20,667               |   |   |   | 0.10 | % |
| Interest rate                                                                 |   |       | (716    | )      |                 |   | (0.01  | )%         |   |   | 188,883              |   |   |   | 0.97 | % |
| Metal                                                                         |   |       | 7,675   |   |                 |   | 0.06   | %          |   |   | 0                    |   |   |   | 0.00 | % |
| Stock index                                                                   |   |       | 6,475   |   |                 |   | 0.05   | %          |   |   | 33,545               |   |   |   | 0.17 | % |
|   Total U.S. long futures contracts                                      |   | $          | 195,601 |   |                 |   | 1.43   | %          |   | $      | 310,132              |   |   |   | 1.58 | % |
|                                                                          |   |       |    |   |                 |   |   |       |   |   |                 |   |   |   |   |   |
| Foreign                                                                       |   |       |    |   |                 |   |   |       |   |   |                 |   |   |   |   |   |
| Agricultural                                                                  |   | $          | 15,597  |   |                 |   | 0.11   | %          |   | $      | 1,226                |   |   |   | 0.01 | % |
| Interest rate                                                                 |   |       | (34,360 | )      |                 |   | (0.25  | )%         |   |   | 18,911               |   |   |   | 0.10 | % |
| Stock index                                                                   |   |       | 14,396  |   |                 |   | 0.11   | %          |   |   | 0                    |   |   |   | 0.00 | % |
|       Total foreign long futures contracts |   | $          | (4,367  | )      |                 |   | (0.03  | )%         |   | $      | 20,137               |   |   |   | 0.11 | % |
|                                                                          |   |       |    |   |                 |   |   |       |   |   |                 |   |   |   |   |   |
|                                                                          |   |       |    |   |                 |   |   |       |   |   |                 |   |   |   |   |   |
| SHORT FUTURES CONTRACTS(1)                                                    |   |       |    |   |                 |   |   |       |   |   |                 |   |   |   |   |   |
| Description                                                                   |   |       |    |   |                 |   |   |       |   |   |                 |   |   |   |   |   |
| U.S.                                                                          |   |       |    |   |                 |   |   |       |   |   |                 |   |   |   |   |   |
| Agricultural                                                                  |   | $          | (330    | )      |                 |   | 0.00   | %(2)       |   | $      | (45,260              | )      |   |   | (0.23 | )% |
| Currency                                                                      |   |       | 8,650   |   |                 |   | 0.06   | %          |   |   | 101                  |   |   |   | 0.00 | %(2) |
| Energy                                                                        |   |       | 17,045  |   |                 |   | 0.12   | %          |   |   | 6,870                |   |   |   | 0.04 | % |
| Interest rate                                                                 |   |       | 20,125  |   |                 |   | 0.15   | %          |   |   | 20,969               |   |   |   | 0.11 | % |
| Stock index                                                                   |   |       | 26,390  |   |                 |   | 0.19   | %          |   |   | (22,085              | )      |   |   | (0.12 | )% |
| Total U.S short futures contracts                                             |   | $          | 71,880  |   |                 |   | 0.52   | %          |   | $      | (39,405              | )      |   |   | (0.20 | )% |
| Foreign                                                                       |   |       |    |   |                 |   |   |       |   |   |                 |   |   |   |   |   |
| Interest rate                                                                 |   | $          | 0       |   |                 |   | 0.00   | %          |   | $      | 2,654                |   |   |   | 0.01 | % |
| Stock index                                                                   |   |       | 4,216   |   |                 |   | 0.03   | %          |   |   | (4,253               | )      |   |   | (0.02 | )% |
| Total foreign short futures contracts                                         |   | $          | 4,216   |   |                 |   | 0.03   | %          |   | $      | (1,599               | )      |   |   | (0.01 | )% |
|   Total futures contracts                                                |   | $          | 267,330 |   |                 |   | 1.95   | %          |   | $      | 289,265              |   |   |   | 1.48 | % |

| (1) | No individual futures contract position constitutes greater than 5% of the Partnership’s Net Asset Value at December 31, 2009 or 2008.  Accordingly, the number of contracts and expiration dates are not presented. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents less than 0.01% of the Partnership’s Net Asset Value. |
|-----|------------------------------------------------------------------------|

----

|                                                                                                |   | 2009      |      |   | 2008                |   |
|-----------------------------------------------------------------------------------------------------|--------|-----------|-----------|--------|---------------------|--------|
|                                                                                                |   | FairValue |      |   | % of NetAsset Value |   |   | FairValue |   |   | % of NetAsset Value |   |
| INVESTMENTS IN OTHER COMMODITY POOLS                                                           |   |      |      |   |                |   |   |   |   |   |   |   |
| SHK Diversified LLC(1)                                                                              |   |      |      |   |                |   |   |   |   |   |   |   |
| Investment Objective                                                                                |   |      |      |   |                |   |   |   |   |   |   |   |
| To achieve capital appreciation by trading U.S. and Non U.S. futures and forward currency contracts |   | $         | 0         |   |                |   | 0.00 | % |   | $ | 1,315,743 |   |   |   | 6.75 | % |
|                                                                                                |   |      |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Valhalla Synergy Fund LLC                                                                           |   |      |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Investment Objective                                                                                |   |      |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| To achieve capital appreciation by trading U.S. andNon U.S. futures and forward currency contracts  |   |      |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Redemption Provisions                                                                               |   |      |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Quarterly, with 45 days notice                                                                      |   |      | 2,097,074 |   |                |   | 15.33 | % |   |   | 2,740,835 |   |   |   | 14.05 | % |
|                                                                                                |   |      |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Winton Futures Fund, L.P. (US) – Institutional Interests(2)                                   |   |      |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Investment Objective                                                                                |   |      |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| To achieve capital appreciation by trading U.S. andNon U.S. futures and forward currency contracts  |   |      |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Redemption Provisions                                                                               |   |      |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Monthly, with 15 days notice                                                                        |   |      | 7,178,100 |   |                |   | 52.49 | % |   |   | 8,527,355 |   |   |   | 43.73 | % |
|                                                                                                |   |      |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Total investments in other commodity pools                                                          |   | $         | 9,275,174 |   |                |   | 67.82 | % |   | $ | 12,583,933 |   |   |   | 64.53 | % |

----

| (1) | As of January 31, 2008, the managing member of SHK Diversified LLC (SHK) temporarily suspended future redemptions from this fund.  This action was taken by the managing member due to a decline in the liquidity of the markets traded by this fund combined with a significant number of requests for redemptions from this fund.  On April 28, 2008, the Partnership submitted a request for full redemption from SHK.  Effective December 31, 2008, the managing member of SHK distributed approximately half of the Partnership’s investment in SHK to the Partnership, which was paid to the Partnership on January 15, 2009.  Effective February 28, 2009, the managing member of SHK distributed the remaining portion of the Partnership’s investment in SHK to the Partnership, which was paid to the Partnership on March 16, 2009. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The General Partner of Winton Futures Fund, L.P. (US) is Altegris Portfolio Management, Inc., an affiliate of Altegris Investments, Inc. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|

----

| Proportional Share of Investments of Other Commodity Pools as of December 31, 2009(1) |
|---------------------------------------------------------------------------------------|
| Description                                                                           | Investment Objective | Redemption Provisions | FairValue | % of NetAsset Value |
|                                                                                  |   |   |   |   |
| Valhalla SynergyMaster Fund Ltd.                                                      | To achieve capital appreciation through the speculative trading of commodities, commodity futures contracts, options on futures contracts and commodities, and spot and forward contracts traded in U.S. and non-U.S. markets. | Quarterly - withno minimumnotice period | $2,066,615 | 15.11% |
|                                                                                  |   |   |   |
| U.S. Government Agency Bonds and Notes                                                |   |   |   |
|                                                                                  |   |   |   |   |
| FaceValue                                                                             | Description | Range ofMaturity Dates | FairValue | % of NetAsset Value |
|                                                                                  |   |   |   |   |
| $1,177,398                                                                            | Federal Home Loan Bank (1.05 – 1.50%) | 08/2010 to 12/2011 | $1,180,073 | 8.63% |
| $1,061,817                                                                            | Federal National Mortgage Association(1.20 – 2.00%) | 07/2010 to 12/2011 | $1,063,867 | 7.78% |
|                                                                                  |   |   |   |   |
| Open Long and Short Futures Contracts                                                 |   |   |   |
|                                                                                  |   |   |   |   |
| No. ofContracts                                                                       | Description | Range ofExpiration Dates | FairValue | % of NetAsset Value |
|                                                                                  |   |   |   |   |
|                                                                                  | Long Futures Contracts |   |   |   |
|                                                                                  | U.S.Metals |   |   |   |
| 142                                                                                   | Aluminum | 01/2010 to 12/2011 | $2,375,053 | 17.37% |
| 244                                                                                   | Copper | 01/2010 to 12/2011 | $11,279,002 | 82.47% |
|                                                                                  |   |   |   |   |
|                                                                                  | Short Futures Contracts |   |   |   |
|                                                                                  | U.S.Metals |   |   |   |
| 160                                                                                   | Aluminum | 01/2010 to 12/2011 | $(2,572,554) | (18.81)% |
| 284                                                                                   | Copper | 01/2010 to 12/2011 | $(11,679,752) | (85.40)% |
|                                                                                  |   |   |   |   |
| Purchased Options on Futures Contracts                                                |   |   |   |
|                                                                                  |   |   |   |   |
| No. ofContracts                                                                       | Description | Expiration Date | FairValue | % of NetAsset Value |
|                                                                                  |   |   |   |   |
|                                                                                  | U.S.Metals |   |   |   |
| 9                                                                                     | Aluminum | 02/2010 | $42,523 | 0.31% |
| 4                                                                                     | Copper | 02/2010 | $50,854 | 0.37% |
|                                                                                  |   |   |   |   |
| Written Options on Futures Contracts                                                  |   |   |   |
|                                                                                  |   |   |   |   |
| No. ofContracts                                                                       | Description | Expiration Date | FairValue | % of NetAsset Value |
|                                                                                  |   |   |   |   |
|                                                                                  | U.S.Metals |   |   |   |
| 9                                                                                     | Aluminum | 02/2010 | $(39,157) | (0.29)% |
| 4                                                                                     | Copper | 02/2010 | $(46,121) | (0.34)% |
|                                                                                  |   |   |   |   |
| Physical Inventory                                                                    |   |   |   |   |
|                                                                                  | Description |   | FairValue | % of NetAsset Value |
|                                                                                  |   |   |   |   |
|                                                                                  | Metals |   |   |   |
|                                                                                  | Aluminum |   | $983,804 | 7.19% |

----

| (1) | Represents the Partnership’s proportional share of other commodity pool’s individual underlying investments and open futures contracts and options on futures contracts which exceed 5% of the Partnership’s Net Asset Value at December 31, 2009.  In certain situations, open futures contracts and options on futures contracts that are less than 5% of the Partnership’s Net Asset Value at December 31, 2009 may be presented to better indicate the Partnership’s net exposure to a particular underlying commodity. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Investment Objective                                                                                                                                                                                                           | Redemption Provisions                      | FairValue                                                    | % of NetAsset Value |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|--------------------------------------------------------------|---------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                           |                                       |                                                         |                |
| Valhalla Synergy Master Fund Ltd.                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | To achieve capital appreciation through the speculative trading of commodities, commodity futures contracts, options on futures contracts and commodities, and spot and forward contracts traded in U.S. and non-U.S. markets. | Monthly – with30 days written notice | $   2,734, 502                                | 14.02%              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                           |                                       |                                                         |
| Money Market Mutual Fund Investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                           |                                       |                                                         |
| Shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Description                                                                                                                                                                                                                    | Cost                                       | FairValue                                                    | % of NetAsset Value |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                           |                                       |                                                         |
| 1,121,826                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | UBS Select Prime Institutional Fund                                                                                                                                                                                            | $   1,121,826               | $   1,121,826                                 | 5.75%               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                           |                                       |                                                         |
| U.S. Government Agency Bonds and Notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                           |                                       |                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                           |                                       |                                                         |
| FaceValue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Description                                                                                                                                                                                                                    | Range ofMaturity Dates                     | FairValue                                                    | % of NetAsset Value |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                           |                                       |                                                         |                |
| $1,278,210                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Federal Home Loan Bank (0.03 – 4.35%)                                                                                                                                                                                    | 01/2009 to 12/2010                         | $   1,281,568                                 | 6.57%               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                           |                                       |                                                         |                |
| Open Long and Short Futures Contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                           |                                       |                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                           |                                       |                                                         |
| No. ofContracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Description                                                                                                                                                                                                                    | Range ofExpiration Dates                   | FairValue                                                    | % of NetAsset Value |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                           |                                       |                                                         |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Long Futures Contracts                                                                                                                                                                                                         |                                       |                                                         |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | U.S.                                                                                                                                                                                                                           |                                       |                                                         |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Metals                                                                                                                                                                                                                         |                                       |                                                         |                |
| 3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Copper                                                                                                                                                                                                                         | 01/2009 to 5/2009                          | $         9,130 | 0.05%               |
| 519                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Gold                                                                                                                                                                                                                           | 04/2009 to 12/2010                         | $  1,747,460                                       | 8.96%               |
| 88                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Silver                                                                                                                                                                                                                         | 05/2009 to 07/2011                         | $    (593,490)                           | (3.04)%             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                           |                                       |                                                         |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Short Futures Contracts                                                                                                                                                                                                        |                                       |                                                         |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | U.S.Metals                                                                                                                                                                                                                     |                                       |                                                         |                |
| 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Copper                                                                                                                                                                                                                         | 02/2009 to 5/2009                          | $       (65,331)          | (0.34)%             |
| 519                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Gold                                                                                                                                                                                                                           | 02/2009 to 6/2012                          | $  (2,537,283)                                     | (13.01)%            |
| 88                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Silver                                                                                                                                                                                                                         | 03/2009 to 12/2011                         | $       (75,238)          | (0.39)%             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                           |                                       |                                                         |                |
| Open Long and Short Forward Contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                           |                                       |                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                           |                                       |                                                         |
| No. ofContracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Description                                                                                                                                                                                                                    | Range ofExpiration Dates                   | FairValue                                                    | % of NetAsset Value |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                           |                                       |                                                         |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Long Forward Contracts                                                                                                                                                                                                         |                                       |                                                         |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | U.S.Metals                                                                                                                                                                                                                     |                                       |                                                         |                |
| 394                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Aluminum                                                                                                                                                                                                                       | 01/2009 to 12/2012                         | $   5,470,495                                 | 28.05%              |
| 121                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Copper                                                                                                                                                                                                                         | 01/2009 to 12/2011                         | $   4,836,078                                 | 24.80%              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                           |                                       |                                                         |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Short Forward Contracts                                                                                                                                                                                                        |                                       |                                                         |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | U.S.Metals                                                                                                                                                                                                                     |                                       |                                                         |                |
| 349                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Aluminum                                                                                                                                                                                                                       | 01/2009 to 12/2012                         | $(4,626,265)                                                 | (23.72)%            |
| 114                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Copper                                                                                                                                                                                                                         | 01/2009 to 12/2011                         | $(4,446,044)                                                 | (22.80)%            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                           |                                       |                                                         |                |
| (1) Represents the Partnership’s proportional share of other commodity pool’s individual underlying investments and open futures contracts which exceed 5% of the Partnership’s Net Asset Value at December 31, 2008.  In certain situations, open futures contracts that are less than 5% of the Partnership’s Net Asset Value at December 31, 2008 may be presented to better indicate the Partnership’s net exposure to a particular underlying commodity. |

----

| No. ofContracts                      | Description        | Range of Expiration Dates | Fair Value | % of NetAsset Value |
|--------------------------------------|--------------------|---------------------------|-----------------|---------------------|
|                                 |               |                      |            |                |
| 14                                   | U.S.MetalsAluminum | 01/2009 to 12/2011        | $126,957        | 0.65%               |
| 14                                   | Copper             | 01/2009 to 12/2010        | $235,909        | 1.21%               |
|                                 |               |                      |            |                |
| Written Options on Futures Contracts |               |                      |            |
|                                 |               |                      |            |                |
| No. ofContracts                      | Description        | Range of Expiration Dates | Fair Value | % of NetAsset Value |
|                                 |               |                      |            |                |
| 29                                   | U.S.MetalsAluminum | 01/2009 to 12/2011        | $(105,759)      | (0.54)%             |
| 14                                   | Copper             | 01/2009 to 12/2010        | $(346,786)      | (1.78)%             |
|                                 |               |                      |            |                |
|  Physical Inventory             |               |                      |            |                |
|                                 | Description        |                      | Fair Value | % of NetAsset Value |
|                                 |               |                      |            |                |
|                                 | MetalsAluminum     |                      |  $32,010   | 0.16%               |
|                                 | Copper             |                      | $1,639,383      | 8.41%               |

----

| (1) | Represents the Partnership’s proportional share of other commodity pool’s individual underlying investments and open futures contracts which exceed 5% of the Partnership’s Net Asset Value at December 31, 2008.  In certain situations, open futures contracts that are less than 5% of the Partnership’s Net Asset Value at December 31, 2008 may be presented to better indicate the Partnership’s net exposure to a particular underlying commodity |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                  |   | 2009Non-restricted |       |   | 2009Side pocket/ restricted |   |    | 2009Total |   |
|-------------------------------------------------------------------------------------------------------|--------|--------------------|------------|--------|-----------------------------|--------|---------|-----------|--------|
| TRADING AND INVESTING GAINS (LOSSES):                                                                 |   |               |       |   |                        |   |    |      |   |
| Net gain (loss) from futures trading                                                                  |   |               |       |   |                        |   |    |      |   |
| Realized                                                                                              |   | $                  | (1,217,351 | )      |                        | $      | 0       |      |   | $ | (1,217,351 | ) |
| Change in unrealized                                                                                  |   |               | (21,935    | )      |                        |   | 0       |      |   |   | (21,935 | ) |
| Brokerage commissions                                                                                 |   |               | (216,068   | )      |                        |   | 0       |      |   |   | (216,068 | ) |
| Gain (loss) from futures and optionson futures trading                                                |   |               | (1,455,354 | )      |                        |   | 0       |      |   |   | (1,455,354 | ) |
| Income (loss) from investments in othercommodity pools                                                |   |               | (848,016   | )      |                        |   | 19,515  |      |   |   | (828,501 | ) |
| Total trading and investing gains (losses)                                                            |   |               | (2,303,370 | )      |                        |   | 19,515  |      |   |   | (2,283,855 | ) |
|                                                                                                  |   |               |       |   |                        |   |    |      |   |   |   |   |
| NET INVESTMENT INCOME (LOSS):                                                                         |   |               |       |   |                        |   |    |      |   |   |   |   |
| Income                                                                                                |   |               |       |   |                        |   |    |      |   |   |   |   |
| Interest income                                                                                       |   |               | 1,230      |   |                        |   | 0       |      |   |   | 1,230 |   |
| Expenses                                                                                              |   |               |       |   |                        |   |    |      |   |   |   |   |
| Incentive fees                                                                                        |   |               | 136,617    |   |                        |   | 0       |      |   |   | 136,617 |   |
| Management fees (includes $633,652 charged by the      General Partner)           |   |               | 846,564    |   |                        |   | 7,714   |      |   |   | 854,278 |   |
| Operating Expenses                                                                                    |   |               | 390,812    |   |                        |   | 3,707   |      |   |   | 394,519 |   |
|                                                                                                  |   |               |       |   |                        |   |    |      |   |   |   |   |
| Total expenses                                                                                        |   |               | 1,373,993  |   |                        |   | 11,421  |      |   |   | 1,385,414 |   |
|                                                                                                  |   |               |       |   |                        |   |    |      |   |   |   |   |
| Net investment income (loss)                                                                          |   |               | (1,372,763 | )      |                        |   | (11,421 | )         |   |   | (1,384,184 | ) |
|                                                                                                  |   |               |       |   |                        |   |    |      |   |   |   |   |
| NET INCOME (LOSS)                                                                                     |   | $                  | (3,676,133 | )      |                        | $      | 8,094   |      |   | $ | (3,668,039 | ) |
|                                                                                                  |   |               |       |   |                        |   |    |      |   |   |   |   |
| NET INCOME (LOSS) PER GENERAL AND LIMITED PARTNER UNIT                                                |   |               |       |   |                        |   |    |      |   |   |   |   |
| (based on weighted average number of units outstandingduring the year of 5,962 and 462, respectively) |   | $                  | (616.55    | )      |                        | $      | 17.52   |      |   |   | N/A |  (1) |
|                                                                                                  |   |               |       |   |                        |   |    |      |   |   |   |   |
| INCREASE (DECREASE) IN NET VALUEPER GENERAL AND LIMITED PARTNER UNIT                                  |   | $                  | (611.25    | )      |                        | $      | 17.54   |      |   |   | N/A |  (1) |

----

| (1) | A total net income (loss) per general and limited partner Unit and a total for the increase (decrease) in Net Asset Value per general and limited partner Unit are not presented as the amounts are instead shown for each separate class of Units. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                   |   | 2008Non-restricted |       |   | 2008Side pocket/ restricted |   |     | 2008Total |   |
|--------------------------------------------------------------------------------------------------------|--------|--------------------|------------|--------|-----------------------------|--------|----------|-----------|--------|
| TRADING AND INVESTING GAINS (LOSSES):                                                                  |   |               |       |   |                        |   |     |      |   |
| Net gain (loss) from futures trading                                                                   |   |               |       |   |                        |   |     |      |   |
| Realized                                                                                               |   | $                  | 1,061,006  |   |                        | $      | 0        |      |   | $ | 1,061,006 |   |
| Change in unrealized                                                                                   |   |               | 283,530    |   |                        |   | 0        |      |   |   | 283,530 |   |
| Brokerage commissions                                                                                  |   |               | (116,150   | )      |                        |   | 0        |      |   |   | (116,150 | ) |
| Gain (loss) from futures and options     on futures trading                             |   |               | 1,228,386  |   |                        |   | 0        |      |   |   | 1,228,386 |   |
| Income (loss) from investments in othercommodity pools                                                 |   |               | 1,452,633  |   |                        |   | (104,924 | )         |   |   | 1,347,709 |   |
| Total trading and investing gains (losses)                                                             |   |               | 2,681,019  |   |                        |   | (104,924 | )         |   |   | 2,576,095 |   |
|                                                                                                   |   |               |       |   |                        |   |     |      |   |   |   |   |
| NET INVESTMENT INCOME (LOSS):                                                                          |   |               |       |   |                        |   |     |      |   |   |   |   |
| Income                                                                                                 |   |               |       |   |                        |   |     |      |   |   |   |   |
| Interest income                                                                                        |   |               | 37,120     |   |                        |   | 0        |      |   |   | 37,120 |   |
| Expenses                                                                                               |   |               |       |   |                        |   |     |      |   |   |   |   |
| Incentive fees                                                                                         |   |               | 383,650    |   |                        |   | 0        |      |   |   | 383,650 |   |
| Management fees (includes $683,889 charged by the     General Partner)             |   |               | 796,035    |   |                        |   | 74,671   |      |   |   | 870,706 |   |
| Operating Expenses                                                                                     |   |               | 344,501    |   |                        |   | 96,860   |      |   |   | 441,361 |   |
|                                                                                                   |   |               |       |   |                        |   |     |      |   |   |   |   |
| Total expenses                                                                                         |   |               | 1,524,186  |   |                        |   | 171,531  |      |   |   | 1,695,717 |   |
|                                                                                                   |   |               |       |   |                        |   |     |      |   |   |   |   |
| General Partner management fees waived                                                                 |   |               | (77,739    | )      |                        |   | 0        |      |   |   | (77,739 | ) |
|                                                                                                   |   |               |       |   |                        |   |     |      |   |   |   |   |
| Net expenses                                                                                           |   |               | 1,446,447  |   |                        |   | 171,531  |      |   |   | 1,617,978 |   |
|                                                                                                   |   |               |       |   |                        |   |     |      |   |   |   |   |
| Net investment income (loss)                                                                           |   |               | (1,409,327 | )      |                        |   | (171,531 | )         |   |   | (1,580,858 | ) |
|                                                                                                   |   |               |       |   |                        |   |     |      |   |   |   |   |
| NET INCOME (LOSS)                                                                                      |   | $                  | 1,271,692  |   |                        | $      | (276,455 | )         |   | $ | 995,237 |   |
|                                                                                                   |   |               |       |   |                        |   |     |      |   |   |   |   |
| NET INCOME (LOSS) PER GENERAL ANDLIMITED PARTNER UNIT                                                  |   |               |       |   |                        |   |     |      |   |   |   |   |
| (based on weighted average number of units outstanding during the year of 6,189 and 924, respectively) |   | $                  | 205.48     |   |                        | $      | (299.19  | )         |   |   | N/A |  (1) |
|                                                                                                   |   |               |       |   |                        |   |     |      |   |   |   |   |
| INCREASE (DECREASE) IN NET VALUEPER GENERAL AND LIMITED PARTNER UNIT                                   |   | $                  | 223.08     |   |                        | $      | (299.36  | )         |   |   | N/A |  (1) |

----

| (1) | A total net income (loss) per general and limited partner Unit and a total for the increase (decrease) in Net Asset Value per general and limited partner Unit are not presented as the amounts are instead shown for each separate class of Units. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                               |   | Total Number |              |   | Partners’ Capital |   |
|----------------------------------------------------|--------|--------------|-------------------|--------|-------------------------|--------|
| Non-restricted units                               |   | of Units     |              |   | General                 |   |   | Limited |   |   | Total |   |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |
| Balances at                                        |   |         |              |   |                    |   |   |   |   |   |   |   |
| December 31, 2007                                  |   |         | 7,345             |   |                    | $      | 545,791 |   |   | $ | 20,878,036 |   |   | $ | 21,423,827 |   |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Transfer to side pocket/restricted                 |   |         | (923              | )      |                    |   | (71,709 | ) |   |   | (2,664,700 | ) |   |   | (2,736,409 | ) |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Net income for the year                            |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| ended December 31, 2008                            |   |         |              |   |                    |   | 37,465 |   |   |   | 1,234,227 |   |   |   | 1,271,692 |   |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Redemptions                                        |   |         | (916              | )      |                    |   | 0 |   |   |   | (2,671,425 | ) |   |   | (2,671,425 | ) |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Transfer from side pocket/restricted(3)            |   |         |     353 |   |                    |   |     32,232 |   |   |   |   1,075,355 |   |   |   | 1,107,587 |   |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Balances at                                        |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2008                                  |   |         | 5,859             |   |                    |   | 543,779 |   |   |   | 17,851,493 |   |   |   | 18,395,272 |   |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) for the year                            |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| ended December 31, 2009                            |   |         |              |   |                    |   | (111,675 | ) |   |   | (3,564,458 | ) |   |   | (3,676,133 | ) |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Redemptions                                        |   |         |   (811       | )      |                    |   |   0 |   |   |   | (2,153,879 | ) |   |   | (2,153,879 | ) |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Transfer from side pocket/restricted(4)            |   |         | 361               |   |                    |   | 32,444 |   |   |   | 1,078,335 |   |   |   | 1,110,779 |   |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Balances at                                        |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2009                                  |   |         |   5,409 |   |                    | $      | 464,548 |   |   |   | 13,211,491 |   |   | $ | 13,676,039 |   |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Side pocket/restricted units                       |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Balances at                                        |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2007                                  |   |         | 0                 |   |                    | $      | 0 |   |   | $ | 0 |   |   | $ | 0 |   |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Transfer from non-restricted                       |   |         | 923               |   |                    |   | 71,709 |   |   |   | 2,664,700 |   |   |   | 2,736,409 |   |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) for the year                            |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| ended December 31, 2008                            |   |         |              |   |                    |   | (7,245 | ) |   |   | (269,210 | ) |   |   | (276,455 | ) |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Redemptions(1)                                     |   |         | (92               | )      |                    |   | 0 |   |   |   | (246,610 | ) |   |   | (246,610 | ) |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Transfer to non-restricted(3)                      |   |         | (416              | )      |                    |   | (32,232 | ) |   |   | (1,075,355 | ) |   |   | (1,107,587 | ) |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Balances at                                        |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2008                                  |   |         | 415               |   |                    |   | 32,232 |   |   |   | 1,073,525 |   |   |   | 1,105,757 |   |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Net income for the year                            |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| ended December 31, 2009                            |   |         |              |   |                    |   | 212 |   |   |   | 7,882 |   |   |   | 8,094 |   |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Redemptions(2)                                     |   |         | (1                | )      |                    |   | 0 |   |   |   |   (3,072 | ) |   |   | (3,072 | ) |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Transfer to non-restricted(4)                      |   |         | (414              | )      |                    |   | (32,444 | ) |   |   | (1,078,335 | ) |   |   | (1,110,779 | ) |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Balances at                                        |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2009(5)                               |   |         | 0                 |   |                    | $      |  0 |   |   | $ |  0 |   |   | $ |  0 |   |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Total Partners’ Capital (Net Value Asset) at |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2007                                  |   |         |              |   |                    | $      | 545,791 |   |   | $ | 20,878,036 |   |   | $ | 21,423,827 |   |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Total Partners’ Capital (Net Asset Value) at |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2008                                  |   |         |              |   |                    | $      | 576,011 |   |   | $ | 18,925,018 |   |   | $ | 19,501,029 |   |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Total Partners’ Capital (Net Asset Value) at |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2009                                  |   |         |              |   |                    | $      | 464,548 |   |   | $ | 13,211,491 |   |   | $ | 13,676,039 |   |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |         |              |   |                    |   |   |   |   |   |   |   |   |   |   |   |

|   | Net Asset Value Per Unit |     |
|--------|--------------------------|----------|
|   | Non-restricted           |     |   | Side pocket/restricted |   |
|   |                     |     |   |   |   |
|   | December 31,             |     |   | December 31, |   |
|   | 2009                     |     |   | 2008 |   |   | 2007 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|   |                     |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | $                        | 2,528.61 |   |   | $ | 3,139.86 |   |   | $ | 2,916.78 |   |   | $ | N/A | (5) |   | $ | 2,663.73 |   |   | $ | N/A |   |
|   |                     |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| (1) | Side pocket/restricted unit redemptions have been recorded in accordance with the Distinguishing Liabilities from Equity Topic of the FASB Codification (formerly SFAS No. 150). Redemptions approved by the General Partner prior to the period end, that are not effective until subsequent periods are recorded in the current period as redemptions payable.  Also includes the portion of the December 31, 2008 distribution from SHK Diversified LLC (SHK) related to partners who completely redeemed from the Partnership and did not hold non-restricted units. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents the portion of the February 28, 2009 distribution from SHK related to partners who completely redeemed from the Partnership and did not hold non-restricted units. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | As of December 31, 2008, the Partnership recorded a redemption receivable from other commodity pools in the statement of financial condition for proceeds subsequently received in January 2009 from its investment in SHK that is held in side pocket/restricted units.  As a result, half of the units held in the side pocket/restricted units were transferred and converted to non-restricted units at the December 31, 2008 non-restricted net asset value per unit. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Effective February 28, 2009, the managing member of SHK distributed the remaining portion of the Partnership's investment in SHK to the Partnership, which was paid to the Partnership on March 16, 2009.  As a result, the remaining units held in the side pocket/restricted unit class were transferred and converted to non-restricted units at the February 28, 2009 non-restricted net asset value per unit. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | The side pocket/restricted unit class was terminated effective February 28, 2009.  The side pocket/restricted net asset value per unit at February 28, 2009, prior to termination, was $2,681.27. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                        |   | 2009   |       |   | 2008   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| OPERATING ACTIVITIES                                                                                                                        |   |   |       |   |   |   |
| Net income (loss)                                                                                                                           |   | $      | (3,668,039 | )      |   | $      | 995,237 |   |
| Adjustments to reconcile net income (loss) to net cash       provided by (used in) operating activities: |   |   |       |   |   |   |   |   |
|         Change in unrealized gain (loss) on open futures contracts                                       |   |   | 21,935     |   |   |   | (283,530 | ) |
|          (Income) Loss from investments in other commodity pools                                    |   |   | 828,501    |   |   |   | (1,347,709 | ) |
| Change in operating assets and liabilities                                                                                                  |   |   |       |   |   |   |   |   |
| (Increase) decrease in cash deposits with broker                                                                                            |   |   | 1,854,032  |   |   |   | (4,602,149 | ) |
| (Increase) decrease in option premiums paid (received)                                                                                      |   |   | 0          |   |   |   | (34,500 | ) |
| Additions to investments in other commodity pools                                                                                           |   |   | (1,000,000 | )      |   |   | (10,690,000 | ) |
| Redemptions from other commodity pools                                                                                                      |   |   | 4,196,000  |   |   |   | 19,527,493 |   |
| (Decrease) increase in accounts payable                                                                                                     |   |   | 2,812      |   |   |   | (56,719 | ) |
| (Decrease) increase in commissions and other             trading fees payable   |   |   | (52        | )      |   |   | 1,310 |   |
| (Decrease) increase in incentive fees payable                                                                                               |   |   | (185,497   | )      |   |   | 185,497 |   |
| (Decrease) increase in management fees payable                                                                                              |   |   | (85,781    | )      |   |   | 85,665 |   |
|                                                                                                                                        |   |   |       |   |   |   |   |   |
| Net cash provided by (used in) Operating Activities                                                                                         |   |   | 1,963,911  |   |   |   | 3,780,595 |   |
|  FINANCING ACTIVITIES                                                                                                                  |   |   |       |   |   |   |   |   |
| Redemptions paid                                                                                                                            |   |   | (1,966,867 | )      |   |   | (3,780,449 | ) |
| Net cash provided by (used in) Financing Activities                                                                                         |   |   | (1,966,867 | )      |   |   | (3,780,449 | ) |
| Net cash increase (decrease) for the year                                                                                                   |   |   | (2,956     | )      |   |   | 146 |   |
| Cash at beginning of year                                                                                                                   |   |   | 3,533      |   |   |   | 3,387 |   |
| Cash at end of year                                                                                                                         |   | $      | 577        |   |   | $      | 3,533 |   |

----

|   | ProFutures Diversified Fund, L.P. (the Partnership) is a Delaware limited partnership, which operates as a commodity investment pool.  The Partnership engages in the speculative trading of futures contracts, options on futures contracts, physical commodities, interbank forward currency contracts, options on interbank forward currency contracts, United States (U.S.) Government agency obligations, corporate notes and repurchase agreements, directly and through its investments in other commodity pools.  The Partnership closed to investors in 1995 and will terminate at the end of December 2012, at which time the remaining net assets will be distributed. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Regulation |
|--------|------------|

|   | As a registrant with the Securities and Exchange Commission, the Partnership is subject to the regulatory requirements under the Securities Act of 1933 and the Securities Exchange Act of 1934.  As a commodity investment pool, the Partnership is subject to the regulations of the Commodity Futures Trading Commission, an agency of the U.S. Government which regulates most aspects of the commodity futures industry; rules of the National Futures Association, an industry self-regulatory organization; and the requirements of commodity exchanges, futures commission merchants (brokers), and interbank market makers through which the Partnership trades. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Method of Reporting |
|--------|---------------------|

|   | For purposes of both financial reporting and calculation of redemption value, Net Asset Value per Unit is calculated by dividing Net Asset Value by the total number of units outstanding. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Effective July 1, 2009, the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC), referred to as FASB ASC or the Codification, became the single source of U.S. generally accepted accounting principles (U.S. GAAP) for interim and annual periods ending after September 15, 2009.  Existing accounting standards are incorporated into the Codification and standards not incorporated into the Codification are considered nonauthoritative. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Use of Estimates |
|--------|------------------|

|   | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods.  Actual results could differ from the estimates and assumptions utilized. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Substantially all of the Partnership’s assets and liabilities are considered financial instruments and are reflected at fair value, or at carrying amounts that approximate fair value because of the short maturity of the instruments. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Fair Value of Financial Instruments (Continued) |
|--------|-------------------------------------------------|

|   | Fair value, as defined in the Fair Value Measurements and Disclosures Topic of the Codification, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and sets out a fair value hierarchy.  The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).  Inputs are broadly defined under the Fair Value Measurements and Disclosures Topic of the Codification as assumptions market participants would use in pricing an asset or liability.  The three levels of the fair value hierarchy are described below: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 1. | Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 2. | Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly.  A significant adjustment to a Level 2 input could result in the Level 2 measurement becoming a Level 3 measurement. |
|--------|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 3. | Inputs are unobservable for the asset or liability. |
|--------|----------|-----------------------------------------------------|

|   | The Partnership uses futures contracts as part of its trading activities.  The fair values of futures contracts are based upon exchange settlement prices.  These contracts are classified as Level 1 of the fair value hierarchy.  The fair values of Level 1 financial instruments at December 31, 2009 and 2008, consisted of the following: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                          |   | December 31, |    |   | December 31, |   |
|-------------------------------|--------|--------------|---------|--------|--------------|--------|
|                          |   | 2009         |    |   | 2008         |   |
|  Futures contracts  |   | $            | 267,330 |   |         | $      | 289,265 |   |
|                          |   |         |    |   |         |   |   |   |

|   | The Partnership’s investments in other commodity pools are reported in the statement of financial condition at fair value.  Fair value ordinarily represents the Partnership’s proportionate share of each other commodity pool’s net asset value determined for each commodity pool in accordance with such commodity pool’s valuation policies and as reported by their management at the time of the Partnership’s valuation.  Generally, the fair value of the Partnership’s investment in a commodity pool represents the amount that the Partnership could reasonably expect to receive from such commodity pool if the Partnership’s investment was redeemed at the time of valuation (generally the net asset value of the commodity pool), based on information reasonably available at the time the valuation is made and that the Partnership believes to be reliable.  The Partnership records its proportionate share of other commodity pools’ income or loss in the statement of operations. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Fair Value of Financial Instruments (Continued) |
|--------|-------------------------------------------------|

|   | During September 2009, Accounting Standards Update No. 2009-12 (ASU 2009-12), Fair Value Measurements and Disclosures (Topic 820), Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent), was issued by the FASB and is effective for interim and annual periods ending after December 15, 2009.  ASU 2009-12 amends the Codification and provides that if the reporting entity has the ability to redeem its investment in another commodity pool at net asset value at the measurement date, the investment shall be categorized as a Level 2 fair value measurement, and if the reporting entity cannot redeem its investment in another commodity pool at net asset value at the measurement date but the investment may be redeemable at a future date, the reporting entity shall consider the length of time until the investment will be redeemable in determining whether it will be categorized as a Level 2 or Level 3 fair value measurement.  Accordingly, in accordance with the provisions of ASU 2009-12, effective January 1, 2009, the Partnership’s investments in other commodity pools are categorized as Level 2 fair value measurements.  At December 31, 2008, all of the Partnership’s investments in other commodity pools were categorized as Level 3 fair value measurements in accordance with then existing U.S. GAAP. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The following summarizes the Partnership’s investments in other commodity pools accounted for at fair value at December 31, 2009 and 2008 using the fair value hierarchy: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 |   | December 31, 2009 |   |
|--------------------------------------|--------|-------------------|--------|
|                                 |   | Level 1           |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                                 |   |              |   |   |   |   |   |   |   |   |   |   |
| Investments in other commodity pools |   | $                 | 0      |   |   | $ | 9,275,174 |   |   | $ | 0 |   |   | $ | 9,275,174 |   |
|                                 |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   | December 31, 2008 |   |
|                                 |   | Level 1           |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                                 |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investments in other commodity pools |   | $                 | 0      |   |   | $ | 0 |   |   | $ | 12,583,933 |   |   | $ | 12,583,933 |   |

|   | The following table presents a reconciliation of the activity for the investments in other commodity pools measured at fair value on a recurring basis using significant Level 3 inputs during 2009 and 2008: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                        |   |   |        |
|---------------------------------------------|--------|--------|-------------|
| Balance at January 1, 2008:                 |   | $      | 16,889,459  |   |
| Income from investments in                  |   |   |        |   |
| other commodity pools                       |   |   | 1,347,709   |   |
| Additions and redemptions, net              |   |   | (5,653,235  | ) |
| Transfers in and/or out of Level 3          |   |   | 0           |   |
| Balance at December 31, 2008:               |   |   | 12,583,933  |   |
| Reclassification of categorization of level |   |   |        |   |
| of fair value hierarchy                     |   |   | (12,583,933 | ) |
| Income from investments                     |   |   |        |   |
| in other commodity pools                    |   |   | 0           |   |
| Additions and redemptions, net              |   |   | 0           |   |
| Transfers in and/or out of Level 3          |   |   | 0           |   |
| Balance at December 31, 2009                |   | $      | 0           |   |

----

|   | Note 1. | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|--------|---------|-------------------------------------------------------------------------|

|   | Fair Value of Financial Instruments (Continued) |
|--------|-------------------------------------------------|

|   | Income (loss) from investments in other commodity pools includes $780,220 attributable to the change in unrealized gain (loss) on the Partnership’s investments in other commodity pools held at December 31, 2008. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The amount of income from investments in other commodity pools included in net income (loss) for the year ended December 31, 2008 is reported as income (loss) from investments in other commodity pools as a single amount in the statement of operations, as the Partnership accounts for its investments in other commodity pools pursuant to the equity method of accounting. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Futures and Forward Currency Contracts |
|--------|----------------------------------------|

|   | Transactions are accounted for on the trade date.  Gains or losses are realized when contracts are liquidated.  Net unrealized gains or losses on open contracts (the difference between contract trade price and quoted market price) are reflected in the statement of financial condition as a net gain or loss, as there exists a right of offset of unrealized gains or losses.  Any change in net unrealized gain or loss from the preceding period is reported in the statement of operations.  Brokerage commissions on futures contracts and options on futures contracts include other trading fees and are charged to expense when contracts are opened.  Fair value of exchange-traded contracts is based upon exchange settlement prices. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Income Taxes |
|--------|--------------|

|   | The Partnership is not subject to federal income taxes.  The Partnership prepares and files calendar year U.S. and applicable state information tax returns and reports to the partners their allocable shares of the Partnership’s income, expenses and trading and investing gains or losses.  The Partnership has elected an accounting policy to classify interest and penalties, if any, as interest expense.  Management has determined there are no material uncertain income tax positions through December 31, 2009.  The 2006 through 2008 tax years generally remain subject to examination by U.S. federal and most state tax authorities. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Foreign Currency Transactions |
|--------|-------------------------------|

|   | The Partnership’s functional currency is the U.S. dollar; however, it transacts business in currencies other than the U.S. dollar.  Assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the rates in effect at the date of the statement of financial condition.  Income and expense items denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the rates in effect during the period.  Gains and losses resulting from the translation to U.S. dollars are reported in trading and investing in gains (losses) in the statements of operations. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Redemptions of Units |
|--------|----------------------|

|   | Redemptions payable represent redemptions approved by the General Partner prior to the period end, including those that are not effective until subsequent periods.  These redemptions have been recorded as redemptions and redemptions payable, using the period end Net Asset Value per unit, in accordance with the provisions of the Distinguishing Liability fromEquity Topic of the Codification.  Redemptions that are not effective until subsequent periods are treated as next month’s redemption using the net asset value of the following month end.  The change in redemptions payable from the previous reporting period due to change in net asset value is reported in net income and then allocated.  Redemptions payable related to side pocket/restricted units at December 31, 2009 and 2008 are $0 and $124,216, respectively. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Note 1. | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|--------|---------|-------------------------------------------------------------------------|

|   | Derivative Instruments |
|--------|------------------------|

|   | The Partnership’s business is the speculative trading of U.S. and foreign futures contracts and options on U.S. and foreign futures contracts and other commodity-related contracts, (collectively, derivatives) pursuant to the trading and investment methodology of the General Partner.  The Partnership also invests in other commodity pools and is indirectly exposed to the speculative trading of U.S. and foreign futures contracts, physical commodities and securities within those other commodity pools.  The Partnership does not designate any derivative instruments as hedging instruments under the Derivatives and Hedging Topic of the Codification nor are the derivative instruments used for other risk management purposes.  Due to the speculative nature of the Partnership’s derivative trading activity, the Partnership is subject to the risk of substantial losses from derivatives trading. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The following tables summarize quantitative information required by the Derivatives and Hedging Topic of the Codification.  The fair value of derivative contracts is presented as an asset if in a net gain position and a liability if in a net loss position.  Fair value is presented on a gross basis in the table below even though the derivative contracts qualify for net presentation in the statement of financial condition: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                    |   Derivatives not designed as hedging instruments as of December 31, 2009: |
|-------------------------|--------------------------------------------------------------------------------------|
|                    |                                                                                 |
| Type of Contract        | Assets Derivatives*Fair Value                                                        |   |   | Liability Derivatives*Fair Value |   |   | Net |   |
|                    |                                                                                 |   |   |   |   |   |   |   |
| Agricultural contracts  | $                                                                                    | 168,857 |   |   | $ | (15,209 | ) |   | $ | 153,648 |   |
| Currency contracts      |                                                                                 | 57,146 |   |   |   | (6,450 | ) |   |   | 50,696 |   |
| Energy contracts        |                                                                                 | 19,325 |   |   |   | (540 | ) |   |   | 18,785 |   |
| Interest rate contracts |                                                                                 | 24,242 |   |   |   | (39,193 | ) |   |   | (14,951 | ) |
| Metal contracts         |                                                                                 | 38,200 |   |   |   | (30,525 | ) |   |   | 7,675 |   |
| Stock index contracts   |                                                                                 | 52,282 |   |   |   | (805 | ) |   |   | 51,477 |   |
|                    |                                                                                 |   |   |   |   |   |   |   |   |   |   |
|                    | $                                                                                    | 360,052 |   |   | $ | (92,722 | ) |   | $ | 267,330 |   |

|   |            * | The fair values of all asset and liability derivatives, including agricultural, currency, energy, interest rate and stock index contracts, are included in equity in broker trading accounts on the statement of financial condition. |
|--------|---------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Trading Revenue for the                         Year Ended December 31, 2009                         |   | Trading Revenue for the                        Year Ended December 31, 2009                         |       |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
|     Type of Contract                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                                                                                                                                                                                                                                           |       | Line Item inStatement of     Operations      |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                           |       |   |   |   |   |
| Agricultural contracts                                                                                                                                                                                                                                                                                                                               |   | $                                                                                                                                                                                                                                                                                                                                              | (452,829   | ) | Realized |   | $ | (1,217,351 | ) |
| Currency contracts                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                           | (233,198   | ) |   |   |   |   |   |
| Energy contracts                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                           | 130,184    |   | Change in unrealized |   |   | (21,935 | ) |
| Interest rate contracts                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                                                                                                                                                           | (758,852   | ) |   |   |   |   |   |
| Metal contracts                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                                                                                                                                                                                                                                                           | (56,003    | ) |   |   |   |   |   |
| Stock index contracts                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                           | 131,412    |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                 |   | $                                                                                                                                                                                                                                                                                                                                              | (1,239,286 | ) |   |   | $ | (1,239,286 | ) |

|   | For the year ended December 31, 2009, the monthly average number of futures contracts bought and sold was approximately 3,300. |
|--------|--------------------------------------------------------------------------------------------------------------------------------|

----

| Note 1. | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|---------|-------------------------------------------------------------------------|

| Note 2. | GENERAL PARTNER |
|---------|-----------------|

----

|   | The Partnership maintains a consulting agreement with Altegris Investments, Inc. (the CTA Consultant) and Altegris Portfolio Management, Inc. (the CPO Consultant), collectively (the Consultants), whereby the Consultants recommend the selection and termination of the Partnership’s trading advisors and other commodity pools and the allocation and reallocation of the Partnership’s assets.  The CPO Consultant is the general partner of Winton Futures Fund, L.P. (US).  Pursuant to the consulting agreement, the Consultants receive a monthly consulting fee equal to .0208% (.25% annually) of the Partnership’s month-end Net Asset Value (as defined in the Consulting Agreement).  Certain net assets of the Partnership invested with managers affiliated with the Consultants are excluded from the month-end Net Asset Value when computing the consulting fees due to the Consultants.  In addition, the net assets of the Partnership invested with a certain commodity trading advisor are excluded from the month-end Net Asset Value when computing the consulting fees due to the Consultants since the Consultants earn a percentage of such commodity trading advisor’s incentive fee. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Partnership has trading advisory contracts with commodity trading advisors to furnish investment management services to the Partnership.  These trading advisors typically receive management fees ranging from 0% to 2% annually of Allocated Net Asset Value (as defined in each respective trading advisory agreement).  In addition, the commodity trading advisors typically receive quarterly incentive fees ranging from 20% to 25% of Trading Profits (as defined).  Total management fees earned by the trading advisors amounted to $210,507 and $98,395 for the years ended December 31, 2009 and 2008, respectively.  Total incentive fees earned by the trading advisors amounted to $136,617 and $383,650 for the years ended December 31, 2009 and 2008, respectively. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note 5. | SUBSCRIPTIONS, DISTRIBUTIONS AND REDEMPTIONS |
|---------|----------------------------------------------|

| Note 6. | DEPOSITS WITH BROKER |
|---------|----------------------|

----

|  Note 7. |   | INVESTMENTS IN OTHER COMMODITY POOLS |
|---------------|--------|--------------------------------------|

|   | The Partnership invests in other commodity pools, which are subject to the terms of the respective limited partnership agreements and offering memoranda of such other commodity pools, which may, among other things, delay or suspend withdrawal rights under certain circumstances. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                            |   | ProFuturesStrategicAllocation Trust |        |   | SHKDiversified LLC |   |       | ValhallaSynergyFund LLC |   |   | WintonFutures Fund, L.P. (US) |   |   | Totals |       |
|-----------------------------------------------------------------|--------|-------------------------------------|-------------|--------|--------------------|--------|------------|-------------------------|--------|--------|-------------------------------|--------|--------|--------|------------|
|                                                            |   |                                |        |   |               |   |       |                    |   |   |                          |   |   |   |       |
| Net Asset Value      December 31, 2007 |   | $                                   | 5,495,004   |   |               | $      | 3,117,286  |                    |   | $      | 4,419,668                     |   |   | $      | 3,857,501  |   |   | $ | 16,889,459 |   |
|                                                            |   |                                |        |   |               |   |       |                    |   |   |                          |   |   |   |       |   |   |   |   |   |
| Additions                                                       |   |                                | 4,500,000   |   |               |   | 0          |                    |   |   | 0                             |   |   |   | 6,190,000  |   |   |   | 10,690,000 |   |
|                                                            |   |                                |        |   |               |   |       |                    |   |   |                          |   |   |   |       |   |   |   |   |   |
| Income (loss)                                                   |   |                                | 567,489     |   |               |   | (385,801   | )                       |   |   | 421,167                       |   |   |   | 744,854    |   |   |   | 1,347,709 |   |
|                                                            |   |                                |        |   |               |   |       |                    |   |   |                          |   |   |   |       |   |   |   |   |   |
| Redemptions                                                     |   |                                | (10,562,493 | )      |               |   | (1,415,742 | )                       |   |   | (2,100,000                    | )      |   |   | (2,265,000 | ) |   |   | (16,343,235 | ) |
|                                                            |   |                                |        |   |               |   |       |                    |   |   |                          |   |   |   |       |   |   |   |   |   |
| Net Asset Value      December 31, 2008 |   |                                | 0           |   |               |   | 1,315,743  |                    |   |   | 2,740,835                     |   |   |   | 8,527,355  |   |   |   | 12,583,933 |   |
|                                                            |   |                                |        |   |               |   |       |                    |   |   |                          |   |   |   |       |   |   |   |   |   |
| Additions                                                       |   |                                | 0           |   |               |   | 0          |                    |   |   | 0                             |   |   |   | 1,000,000  |   |   |   | 1,000,000 |   |
|                                                            |   |                                |        |   |               |   |       |                    |   |   |                          |   |   |   |       |   |   |   |   |   |
| Income (loss)                                                   |   |                                | 0           |   |               |   | 19,515     |                    |   |   | (143,761                      | )      |   |   | (704,255   | ) |   |   | (828,501 | ) |
|                                                            |   |                                |        |   |               |   |       |                    |   |   |                          |   |   |   |       |   |   |   |   |   |
| Redemptions                                                     |   |                                | 0           |   |               |   | (1,335,258 | )                       |   |   | (500,000                      | )      |   |   | (1,645,000 | ) |   |   | (3,480,258 | ) |
|                                                            |   |                                |        |   |               |   |       |                    |   |   |                          |   |   |   |       |   |   |   |   |   |
| Net Asset Value      December 31, 2009 |   | $                                   | 0           |   |               | $      | 0          |                    |   | $      | 2,097,074                     |   |   | $      | 7,178,100  |   |   | $ | 9,275,174 |   |

|   | The Partnership’s investment in ProFutures Strategic Allocation Trust (the Trust) is subject to an administration fee, charged by ProFutures, Inc., of 2.00% per annum, monthly management fees, charged by the commodity trading advisors, of 2.00% per annum, and quarterly incentive fees, charged by the commodity trading advisors, of 20% of trading profits.  The Partnership fully redeemed from the Trust on May 31, 2008.  For the year ended December 31, 2008, the Partnership’s proportionate share of administration fees, management fees and incentive fees charged by the Trust were approximately $77,900, $42,700 and $0, respectively. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Note 7. | INVESTMENTS IN OTHER COMMODITY POOLS (CONTINUED) |
|--------|---------|--------------------------------------------------|

|   | Condensed financial information for the five month period ended May 31, 2008 is as follows (the Partnership fully redeemed from the Trust as of May 31, 2008): |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Statement of OperationsTrading and investing gains (losses) |   | Five Months EndedMay 31, 2008 |      |
|-------------------------------------------------------------|--------|-------------------------------|-----------|
| Realized                                                    |   | $                             | (101,694  | ) |
| Change in unrealized                                        |   |                          | 456,850   |   |
| Brokerage commissions                                       |   |                          | (12,745   | ) |
|                                                        |   |                          |      |   |
| Total trading gains                                         |   |                          | 342,411   |   |
|                                                        |   |                          |      |   |
| Income from investment in Winton Futures Fund, L.P. (US)    |   |                          | 981,259   |   |
|                                                        |   |                          |      |   |
| Total trading and investing gains                           |   |                          | 1,323,670 |   |
|                                                        |   |                          |      |   |
| Net investment income (loss)                                |   |                          |      |   |
| Interest income                                             |   |                          | 47,506    |   |
|                                                        |   |                          |      |   |
| Expenses                                                    |   |                          |      |   |
| Incentive fees                                              |   |                          | 0         |   |
| Management and other fees                                   |   |                          | 217,083   |   |
| Operating expenses                                          |   |                          | 63,591    |   |
|                                                        |   |                          |      |   |
| Total expenses                                              |   |                          | 280,674   |   |
|                                                        |   |                          |      |   |
| Net investment (loss)                                       |   |                          | (233,168  | ) |
|                                                        |   |                          |      |   |
| Net income                                                  |   | $                             | 1,090,502 |   |

|   | Management of the Partnership believes the accounting principles utilized by the Trust are consistent in all material respects with those utilized by the Partnership. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As of January 31, 2008, the managing member of SHK Diversified LLC (SHK) temporarily suspended future redemptions.  SHK’s managing member indicated to investors that this action was taken due to a decline in the liquidity of the markets traded by SHK combined with a significant number of requests for redemptions.  On April 28, 2008, the Partnership submitted a request for full redemption from SHK.  Effective December 31, 2008, SHK declared for distribution approximately half ($1,315,742) of the Partnership’s investment in SHK to the Partnership which was paid to the Partnership on January 15, 2009.  Effective February 28, 2009, SHK declared for distribution the remaining portion ($1,335,258) of the Partnership’s investment in SHK to the Partnership which was paid to the Partnership on March 16, 2009. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Partnership’s investment in SHK is stated at $0 and $1,315,743 at December 31, 2009 and 2008, respectively, and its proportionate share in the earnings (losses) of this investment for the years then ended of $19,515 and $(385,801), respectively, is included in net income (loss) for the years then ended. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note 7. | INVESTMENTS IN OTHER COMMODITY POOLS (CONTINUED) |
|---------|--------------------------------------------------|

|                                     |   | December 31,2008 |        |
|------------------------------------------|--------|------------------|-------------|
| Statement of Financial Condition         |   |             |        |
|                                     |   |             |        |
| Assets                                   |   |             |        |
| Money market funds                       |   | $                | 34,078,075  |   |
| Equity in broker trading accounts        |   |             |        |   |
| Cash (due to broker)                     |   |             | 58,214,842  |   |
| Unrealized gain (loss) on open contracts |   |             | (33,879,348 | ) |
|                                     |   |             |        |   |
| Deposits with broker                     |   |             | 58,413,569  |   |
|                                     |   |             |        |   |
| Other assets                             |   |             | 22,000      |   |
|                                     |   |             |        |   |
| Total assets                             |   | $                | 58,435,569  |   |
|                                     |   |             |        |   |
| Liabilities                              |   |             |        |   |
| Accounts payable                         |   | $                | 55,534      |   |
| Commissions payable                      |   |             | 54,229      |   |
| Management fee payable                   |   |             | 124,048     |   |
| Incentive fee payable                    |   |             | 4,686       |   |
| Redemptions payable                      |   |             | 29,098,536  |   |
|                                     |   |             |        |   |
| Total liabilities                        |   |             | 29,337,033  |   |
|                                     |   |             |        |   |
| Total Capital (Net Asset Value)          |   |             | 29,098,536  |   |
|                                     |   |             |        |   |
|                                     |   | $                | 58,435,569  |   |
|                                     |   |             |        |   |

----

|   | SHK Diversified LLC (Continued) |
|--------|---------------------------------|

|                         |   | Two Months EndedFebruary 28,2009 |        |   | For the Year EndedDecember 31,2008 |   |
|------------------------------|--------|----------------------------------|-------------|--------|------------------------------------|--------|
| Statement of Operations      |   |                             |        |   |                               |   |
|                         |   |                             |        |   |                               |   |
| Trading gains (losses)       |   |                             |        |   |                               |   |
| Realized                     |   | $                                | (10,063,882 | )      |                               | $      | 158,094,631 |   |
| Change in unrealized         |   |                             | 10,768,533  |   |                               |   | (162,223,165 | ) |
| Brokerage commissions        |   |                             | (89,581     | )      |                               |   | (3,565,740 | ) |
|                         |   |                             |        |   |                               |   |   |   |
| Total trading gains (losses) |   |                             | 615,070     |   |                               |   | (7,694,274 | ) |
|                         |   |                             |        |   |                               |   |   |   |
| Net investment income (loss) |   |                             |        |   |                               |   |   |   |
| Interest and dividend income |   |                             | 13,459      |   |                               |   | 1,206,272 |   |
|                         |   |                             |        |   |                               |   |   |   |
| Expenses                     |   |                             |        |   |                               |   |   |   |
| Incentive fees               |   |                             | 0           |   |                               |   | 0 |   |
| Management and other fees    |   |                             | 126,078     |   |                               |   | 1,531,615 |   |
| Operating expenses           |   |                             | 48,631      |   |                               |   | 217,444 |   |
|                         |   |                             |        |   |                               |   |   |   |
| Total expenses               |   |                             | 174,709     |   |                               |   | 1,749,059 |   |
|                         |   |                             |        |   |                               |   |   |   |
| Net investment (loss)        |   |                             | (161,250    | )      |                               |   | (542,787 | ) |
|                         |   |                             |        |   |                               |   |   |   |
| Net income (loss)            |   | $                                | 453,820     |   |                               | $      | (8,237,061 | ) |

|   | Management of the Partnership believes the accounting policies utilized by SHK are consistent in all material respects with those utilized by the Partnership. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Partnership’s investment in SHK represents approximately 0.00% and 4.50% of the investee fund’s net asset value as of December 31, 2009 and 2008, respectively. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Valhalla Synergy Fund LLC |
|--------|---------------------------|

|   | Valhalla Synergy Fund LLC invests substantially all of its assets through a “master-feeder” structure into Valhalla Synergy Master Fund Ltd. (the Master Fund), a Cayman Islands exempted company.  Valhalla Synergy Fund LLC pays to the manager of the Master Fund a management fee of 2.00% per annum and an annual profit participation allocation of 20% of trading profits.  For the years ended December 31, 2009 and 2008, the Partnership’s proportionate share of management fees charged by the Master Fund were approximately $55,000 and $70,000, respectively.  For the years ended December 31, 2009 and 2008, the Partnership’s proportionate share of profit allocation charged by the Master Fund were approximately $0 and $105,292, respectively. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Valhalla Synergy Fund LLC’s condensed financial information primarily consists of their investment in the Master Fund and income allocated from the Master Fund to Valhalla Synergy Fund LLC. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Valhalla Synergy Fund LLC’s net assets at December 31, 2009 and 2008 are $35,682,748 and $48,707,147, respectively.  Total net income (loss) for the years ended December 31, 2009 and 2008 is $(2,144,686) and $6,597,373, respectively. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Note 7. | INVESTMENTS IN OTHER COMMODITY POOLS (CONTINUED) |
|--------|---------|--------------------------------------------------|

|   | Valhalla Synergy Fund LLC (Continued) |
|--------|---------------------------------------|

|   | Management of the Partnership believes the accounting principles utilized by Valhalla Synergy Fund LLC are consistent in all material respects with those utilized by the Partnership. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Partnership’s investment in Valhalla Synergy Fund LLC represents approximately 5.88% and 5.63% of the investee fund’s net asset value as of December 31, 2009 and 2008, respectively. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Winton Futures Fund, L.P. (US) – Institutional Interests |
|--------|----------------------------------------------------------------|

|   | Institutional Interests of Winton Futures Fund, L.P. (US) (formerly Class B Interests through May 2008) are charged management fees of 1.75% annually and incentive fees of 20% of trading profits.  For the years ended December 31, 2009 and 2008, the Partnership’s proportionate share of management fees charged by Winton Futures Fund, L.P. (US) were approximately $147,000 and $90,000, respectively.  For the years ended December 31, 2009 and 2008, the Partnership’s proportionate share of incentive fees charged by Winton Futures Fund, L.P. (US) were approximately $0 and $191,000, respectively. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The CPO Consultant is the General Partner of Winton Futures Fund, L.P. (US). |
|--------|------------------------------------------------------------------------------|

|   | Condensed financial information as of December 31, 2009 and 2008 and for the years then ended is as follows: |
|--------|--------------------------------------------------------------------------------------------------------------|

|                                                                |   | December 31,2009 |        |   | December 31,2008 |   |
|---------------------------------------------------------------------|--------|------------------|-------------|--------|------------------|--------|
| Statement of Financial Conditions                                   |   |             |        |   |             |   |
| Assets                                                              |   |             |        |   |             |   |
| Equity in Newedge USA, LLC account                                  |   |             |        |   |             |   |
| Cash                                                                |   | $                | 57,157,995  |   |             | $      | 154,396,738 |   |
| Unrealized gain on open commodity futures contracts                 |   |             | 2,751,248   |   |             |   | 4,174,311 |   |
| Long options (cost - $31,080 and $0)                                |   |             | 15,760      |   |             |   | 0 |   |
| Unrealized gain on open forward contracts                           |   |             | 3,227       |   |             |   | 0 |   |
|                                                                |   |             |        |   |             |   |   |   |
|                                                                |   |             | 59,928,230  |   |             |   | 158,571,049 |   |
|                                                                |   |             |        |   |             |   |   |   |
| Cash and cash equivalents                                           |   |             | 3,733,271   |   |             |   | 3,384,626 |   |
| Investment securities at value (cost $469,559,059 and $132,744,996) |   |             | 469,934,981 |   |             |   | 132,860,018 |   |
| Other assets                                                        |   |             | 719,323     |   |             |   | 175,971 |   |
|                                                                |   |             |        |   |             |   |   |   |
| Total assets                                                        |   | $                | 534,315,805 |   |             | $      | 294,991,664 |   |
|                                                                |   |             |        |   |             |   |   |   |
| Liabilities                                                         |   |             |        |   |             |   |   |   |
| Short options (proceeds – $68,320 and $0)                     |   | $                | 36,220      |   |             | $      | 0 |   |
| Payable for securities purchased                                    |   |             | 0           |   |             |   | 5,000,000 |   |
| Accounts payable                                                    |   |             | 249,209     |   |             |   | 176,744 |   |
| Commissions payable                                                 |   |             | 611,622     |   |             |   | 30,216 |   |
| Management fee payable                                              |   |             | 822,084     |   |             |   | 314,556 |   |
| Administrative fee payable                                          |   |             | 77,788      |   |             |   | 16,198 |   |
| Service fees payable                                                |   |             | 420,136     |   |             |   | 229,428 |   |
| Incentive fee  payable                                    |   |             | 249,171     |   |             |   | 3,053,989 |   |
| Redemptions payable                                                 |   |             | 3,504,884   |   |             |   | 4,043,596 |   |
| Subscriptions received in advance                                   |   |             | 12,878,915  |   |             |   | 23,079,459 |   |
|                                                                |   |             |        |   |             |   |   |   |
| Total liabilities                                                   |   |             | 18,850,029  |   |             |   | 35,944,186 |   |
|                                                                |   |             |        |   |             |   |   |   |
| Total partners’ capital (Net Asset Value)                     |   |             | 515,465,776 |   |             |   | 259,047,478 |   |
|                                                                |   |             |        |   |             |   |   |   |
|                                                                |   | $                | 534,315,805 |   |             | $      | 294,991,664 |   |

----

|   | Note 7. | INVESTMENTS IN OTHER COMMODITY POOLS (CONTINUED) |
|--------|---------|--------------------------------------------------|

|   | Winton Futures Fund, L.P. (US) – Institutional Interests (Continued) |
|--------|----------------------------------------------------------------------------|

|                                             |   | For the      |        |   | For the     |   |
|--------------------------------------------------|--------|--------------|-------------|--------|-------------|--------|
|                                             |   | Year Ended   |        |   | Year Ended  |   |
|                                             |   | December 31, |        |   | December 31 |   |
|                                             |   | 2009         |        |   | 2008        |   |
| Statements of Operations                         |   |         |        |   |        |   |
| Gains (loss) on trading of derivatives contracts |   |         |        |   |        |   |
| Realized                                         |   | $            | (15,500,903 | )      |        | $      | 39,466,146 |   |
| Changes in  unrealized                 |   |         | (1,403,056  | )      |        |   | 2,819,778 |   |
| Brokerage commissions                            |   |         | (5,636,378  | )      |        |   | (499,445 | ) |
| Gain (loss) from trading derivatives             |   |         | (22,540,337 | )      |        |   | 41,786,479 | ) |
|                                             |   |         |        |   |        |   |   |   |
| Gain (loss) on trading of securities             |   |         |        |   |        |   |   |   |
| Realized                                         |   | $            | (1,633      | )      |        | $      | 5,605 |   |
| Change in unrealized                             |   |         | 260,900     |   |        |   | 115,022 |   |
| Gain from trading securities                     |   |         | 259,267     |   |        |   | 120,627 |   |
| Total trading gains (losses)                     |   |         | (22,281,070 | )      |        |   | 41,907,106 |   |
|                                             |   |         |        |   |        |   |   |   |
| Net investment income (loss)                     |   |         |        |   |        |   |   |   |
| Interest income                                  |   |         | 3,044,150   |   |        |   | 3,801,283 |   |
|                                             |   |         |        |   |        |   |   |   |
| Expenses                                         |   |         |        |   |        |   |   |   |
| Incentive fee                                    |   |         | 546,869     |   |        |   | 8,685,185 |   |
| Management and other fees                        |   |         | 11,940,521  |   |        |   | 4,388,824 |   |
| Operating expenses                               |   |         | 1,169,523   |   |        |   | 515,291 |   |
|                                             |   |         |        |   |        |   |   |   |
| Total expenses                                   |   |         | 13,656,913  |   |        |   | 13,589,300 |   |
|                                             |   |         |        |   |        |   |   |   |
| Net investment (loss0                            |   |         | (10,612,763 | )      |        |   | (9,788,017 | ) |
|                                             |   |         |        |   |        |   |   |   |
| Net income (loss)                                |   | $            | (32,893,833 | )      |        | $      | 32,119,089 |   |
|                                             |   |         |        |   |        |   |   |   |

|   | Management of the Partnership believes the accounting principles utilized by Winton Futures Fund, L.P. (US) are consistent in all material respects with those utilized by the Partnership. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Partnership’s investment in Winton Futures Fund, L.P. (US) represents approximately 1.39% and 3.29% of the investee fund’s net asset value as of December 31, 2009 and 2008, respectively. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As of June 1, 2008, the Partnership’s “Class B Interest” in Winton Futures Fund, L.P. (US) was reclassified as an “Institutional Interest” in Winton Futures Fund, L.P. (US).  This is a reclassification for Winton Futures Fund, L.P. (US) administrative purposes only.  There was no change to the management and incentive fees charged the Partnership, or the Partnership’s rights as a limited partner in Winton Futures Fund, L.P. (US). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note 8. | MARKET AND CREDIT RISKS |
|---------|-------------------------|

| Broker |   | December 31, 2009 |      |   | December 31, 2008 |   |
|--------|--------|-------------------|-----------|--------|-------------------|--------|
|   |   |              |      |   |              |   |
| MFG    |   | $                 | 4,541,795 |   |              | $      | 6,423,863 |   |

----

| Note 8. | MARKET AND CREDIT RISKS (CONTINUED) |
|---------|-------------------------------------|

|   | The Partnership has a portion of its assets on deposit with a financial institution in connection with its cash management activities.  In the event of a financial institution’s insolvency, recovery of Partnership assets on deposit may be limited to account insurance or other protection afforded such deposits. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Partnership’s investments in other commodity pools are subject to the market and credit risks of futures contracts, forward currency contracts and other investment and derivative contracts held or sold short by these commodity pools.  The Partnership bears the risk of loss only to the extent of the fair value of its respective investment and, in certain specific circumstances, distributions and redemptions received. The General Partner has established risk management procedures to monitor investments in other commodity pools and seeks to minimize risk primarily by investing in commodity pools, which the General Partner and the CPO Consultant believe are reliable and creditworthy.  However, there can be no assurance that any commodity pool invested in will be able to meet its obligations to the Partnership. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The General Partner has established procedures to actively monitor market risk and minimize credit risk, although there can be no assurance that it will, in fact, succeed in doing so.  The General Partner’s basic market risk control procedures consist of continuously monitoring the trading activity of the various commodity trading advisors, with the actual market risk controls being applied by the CTA Consultant and the advisors themselves.  The General Partner seeks to minimize credit risk primarily by depositing and maintaining the Partnership’s assets at financial institutions and brokers, which the General Partner believes to be creditworthy. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Limited Partners bear the risk of loss only to the extent of the fair value of their respective investments and, in certain specific circumstances, distributions and redemptions received. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 9. | INDEMNIFICATIONS |
|---------|------------------|

|   | In the normal course of business, the Partnership enters into contracts and agreements that contain a variety of representations and warranties and which provide general indemnifications.  The Partnership’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Partnership that have not yet occurred.  The Partnership expects the risk of any future obligation under these indemnifications to be remote. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 10.  | SUBSEQUENT EVENTS |
|----------------|-------------------|

|   | Effective January 29, 2010, the Partnership terminated its advisory agreement with one of its commodity trading advisors.  Effective February 1, 2010, the Partnership submitted a full redemption request for its investment in Valhalla Synergy Fund LLC to be effective March 31, 2010.  Effective March 1, 2010, the Partnership made an initial investment of $1,500,000 in APM – QIM Futures Fund, L.P., a commodity pool. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The General Partner has evaluated subsequent events through the date the financial statements were issued. |
|--------|------------------------------------------------------------------------------------------------------------|

----

|   | The following information presents non-restricted per unit operating performance data and other supplemental financial data for the years ended December 31, 2009 and 2008.  This information has been derived from information presented in the financial statements. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                  |   | 2009   |     |   | 2008   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Per Unit Performance – Non-restricted units                                                                                                                                                                                     |   |   |     |   |   |   |
| (for a unit outstanding throughout the entire year)                                                                                                                                                                                   |   |   |     |   |   |   |
|                                                                                                                                                                                                                                  |   |   |     |   |   |   |
| Net asset value per unit at beginning of year                                                                                                                                                                                         |   | $      | 3,139.86 |   |   | $      | 2,916.78 |   |
|                                                                                                                                                                                                                                  |   |   |     |   |   |   |   |   |
| Income (loss) from operations:                                                                                                                                                                                                        |   |   |     |   |   |   |   |   |
| Total trading and investing gains (losses)(1)                                                                                                                                                                                         |   |   | (381.01  | )      |   |   | 450.78 |   |
| Net investment income (loss)(1)                                                                                                                                                                                                       |   |   | (230.24  | )      |   |   | (227.70 | ) |
|                                                                                                                                                                                                                                  |   |   |     |   |   |   |   |   |
| Total income (loss) from operations                                                                                                                                                                                                   |   |   | (611.25  | )      |   |   | 223.08 |   |
|                                                                                                                                                                                                                                  |   |   |     |   |   |   |   |   |
| Net asset value per unit at end of year                                                                                                                                                                                               |   | $      | 2,528.61 |   |   | $      | 3,139.86 |   |
|                                                                                                                                                                                                                                  |   |   |     |   |   |   |   |   |
| Total Return                                                                                                                                                                                                                          |   |   | (19.47   | )%     |   |   | 7.65 | % |
|                                                                                                                                                                                                                                  |   |   |     |   |   |   |   |   |
| Supplement Data                                                                                                                                                                                                                       |   |   |     |   |   |   |   |   |
|                                                                                                                                                                                                                                  |   |   |     |   |   |   |   |   |
| Ratios to average net asset value: (2), (3)                                                                                                                                                                                           |   |   |     |   |   |   |   |   |
| Expenses prior to incentive fees(5)                                                                                                                                                                                                   |   |   | 7.32     | %      |   |   | 5.86 | % |
| Incentive fees                                                                                                                                                                                                                        |   |   | 0.81     | %      |   |   | 2.12 | % |
|                                                                                                                                                                                                                                  |   |   |     |   |   |   |   |   |
| Total expenses                                                                                                                                                                                                                        |   |   | 8.13     | %      |   |   | 7.98 | % |
|                                                                                                                                                                                                                                  |   |   |     |   |   |   |   |   |
| Net investment income (loss)(4), (5)                                                                                                                                                                                                  |   |   | (7.31    | )%     |   |   | (5.65 | )% |
|                                                                                                                                                                                                                                  |   |   |     |   |   |   |   |   |
|                                                                                                                                                                                                                                  |   |   |     |   |   |   |   |   |
| Total returns are calculated based on the change in value of a unit during the year. An individual partner’s total returns and ratios may vary from the above total returns and ratios based on the timing of redemptions. |   |

----

|   | (1) | The net investment income (loss) per unit is calculated by dividing the net investment income (loss) by the average number of units outstanding during the year.  Total trading and investing gains (losses) is a balancing amount necessary to reconcile the change in net asset value per unit with the other per unit information.  Such balancing amount may differ from the calculation of total trading and investing gains (losses) per unit due to the timing of trading and investing gains and losses during the year relative to the number of units outstanding. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Excludes the Partnership’s proportionate share of expenses and net investment income (loss) from investments in other commodity pools. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Ratios for the years ended December 31, 2009 and 2008, are after the waiver of management fees by the General Partner, equal to 0.00% and 0.43%, respectively, of average net asset value. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Excludes incentive fees. |
|--------|-----|--------------------------|

|   | (5) | Excludes brokerage commissions. |
|--------|-----|---------------------------------|

----

|   | The following information presents side pocket/restricted per unit operating performance data and other supplemental financial data for the period January 1, 2009 to February 28, 2009 (termination of side pocket/restricted units) and for the  period April 1, 2008 (inception of side pocket/restricted units) to December 31, 2008.  This information has been derived from information presented in the financial statements. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                | Two Months EndedFebruary 28,2009 |   | Nine Months EndedDecember 31,2009 |   |
|---------------------------------------------------------------------------------------------------------------------|----------------------------------|--------|-----------------------------------|--------|
| Per Unit Performance – Side Pocket/Restructed units(for a unit outstanding throughout the entire period) |                             |   |                              |   |
|                                                                                                                |                             |   |                              |   |
| Net asset value per unit at beginning of period                                                                     |   $2,663.73                 |   |   $2,963.09                  |   |
|                                                                                                                |                             |   |                              |   |
| Income (loss) from operations:                                                                                      |                             |   |                              |   |
| Total trading and investing gains (losses)(1)                                                                       |    42.27          |   |   (113.62                    | )      |
| Net investment income (loss)(1)                                                  |   (24.73                    | )      |   (185.74                    | )      |
|                                                                                                                |                             |   |                              |   |
| Total income (loss) from operations                                              |   17.54                     |   |   (299.36                    | )      |
|                                                                                                                |                             |   |                              |   |
| Net asset value per unit at end of period                                                                           |   $2,681.27                 | (7)    |   $2,663.73                  |   |
|                                                                                                                |                             |   |                              |   |
| Total Return(4)                                                                                 |    0.66           | %      |   (10.10)                    | %      |
|                                                                                                                |                             |   |                              |   |
| Supplemental Data                                                                                                   |                             |   |                              |   |
|                                                                                                                |                             |   |                              |   |
| Ratios to average net asset value:(2)                                                                               |                             |   |                              |   |
| Expenses prior to incentive fees(3), (6)                                                                       |   5.53                      | %      |   8.62                       | %      |
| Incentive fees(4)                                                                          |   0.00                      | %      |   0.00                       | %      |
| Total expenses                                                              |   5.53                      | %      |   8.62                       | %      |
|                                                                                                                |                             |   |                              |   |
| Net investment income (loss)(3), (5), (6)                                                       |   (5.53                     | )%     |   (8.62                      | )%     |
|                                                                                                                |                             |   |                              |   |

----

|   | (1) | The net investment income (loss) per unit is calculated by dividing the net investment income (loss) by the average number of units outstanding during the period.  Total trading and investing gains (losses) is a balancing amount necessary to reconcile the change in net asset value per unit with the other per unit information.  Such balancing amount may differ from the calculation of total trading and investing gains (losses) per unit due to the timing of trading and investing gains and losses during the period relative to the number of units outstanding. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Excludes the Partnership’s proportionate share of expenses and net investment income (loss) from investments in other commodity pools. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Annualized. |
|--------|-----|-------------|

|   | (4) | Not annualized. |
|--------|-----|-----------------|

|   | (5) | Excludes incentive fees. |
|--------|-----|--------------------------|

|   | (6) | Excludes brokerage commissions. |
|--------|-----|---------------------------------|

|   | (7) | Prior to termination of the side pocket/restricted unit class effective February 28, 2009. |
|--------|-----|--------------------------------------------------------------------------------------------|

----

----

|                                                                     | PAGES                   |
|--------------------------------------------------------------------------|-------------------------|
|                                                                     |                    |
| Report of Independent Registered Public Accounting Firm             | F-34                    |
|                                                                     |                    |
| Financial Statements                                                     |                    |
|                                                                     |                    |
| Statements of Financial Condition                                        | F-35                    |
|                                                                     |                    |
| Condensed Schedules of Investments                             | F-36 – F-40       |
|                                                                     |                    |
| Statements of Operations                                                 | F-41                    |
|                                                                     |                    |
| Statements of Changes in Partners’ Capital (Net Asset Value)  |  F-42              |
|                                                                     |                    |
| Notes to Financial Statements                                       |  F-43 – F-56 |

----

----

|                                                |   | 2009   |        |   | 2008   |   |
|-----------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                                |   |   |        |   |   |   |
| ASSETS                                              |   |   |        |   |   |   |
| Equity in Newedge USA, LLC account:                 |   |   |        |   |   |   |
| Cash                                                |   | $      | 57,157,995  |   |   | $      | 154,396,738 |   |
| Unrealized gain on open commodity futures contracts |   |   | 2,751,248   |   |   |   | 4,174,311 |   |
| Long options (cost $31,080 and $0)                  |   |   | 15,760      |   |   |   | - |   |
| Unrealized gain on open forward contracts           |   |   | 3,227       |   |   |   | - |   |
| Interest receivable                                 |   |   | -           |   |   |   | 14,426 |   |
|                                                |   |   |        |   |   |   |   |   |
|                                                |   |   | 59,928,230  |   |   |   | 158,585,475 |   |
|                                                |   |   |        |   |   |   |   |   |
|                                                |   |   |        |   |   |   |   |   |
| Cash and cash equivalents                           |   |   | 3,733,271   |   |   |   | 3,384,626 |   |
| Investment securities at value                      |   |   |        |   |   |   |   |   |
|   (cost -$469,559,059 and $132,744,996)   |   |   | 469,934,981 |   |   |   | 132,860,018 |   |
| Interest receivable                                 |   |   | 719,323     |   |   |   | 161,545 |   |
|                                                |   |   |        |   |   |   |   |   |
| Total assets                                        |   | $      | 534,315,805 |   |   | $      | 294,991,664 |   |
|                                                |   |   |        |   |   |   |   |   |
| LIABILITIES                                         |   |   |        |   |   |   |   |   |
| Short options (proceeds $68,320 and $0)             |   | $      | 36,220      |   |   | $      | - |   |
| Payable for securities purchased                    |   |   | -           |   |   |   | 5,000,000 |   |
| Commissions payable                                 |   |   | 611,622     |   |   |   | 30,216 |   |
| Management fee payable                              |   |   | 822,084     |   |   |   | 314,556 |   |
| Administrative fee payable                          |   |   | 77,788      |   |   |   | 16,198 |   |
| Services fees payable                               |   |   | 420,136     |   |   |   | 229,428 |   |
| Incentive fee payable                               |   |   | 249,171     |   |   |   | 3,053,989 |   |
| Redemptions payable                                 |   |   | 3,504,884   |   |   |   | 4,043,596 |   |
| Subscriptions received in advance                   |   |   | 12,878,915  |   |   |   | 23,079,459 |   |
| Other liabilities                                   |   |   | 249,209     |   |   |   | 176,744 |   |
|                                                |   |   |        |   |   |   |   |   |
| Total liabilities                                   |   |   | 18,805,029  |   |   |   | 35,944,186 |   |
|                                                |   |   |        |   |   |   |   |   |
| PARTNER’S CAPITAL (NET ASSET VALUE)           |   |   |        |   |   |   |   |   |
| General Partner                                     |   |   | 3,198       |   |   |   | 3,491 |   |
| Limited Partners                                    |   |   | 515,462,578 |   |   |   | 259,043,987 |   |
|                                                |   |   |        |   |   |   |   |   |
| Total partners’ capital (Net Asset Value)     |   |   | 515,465,776 |   |   |   | 259,047,478 |   |
|                                                |   |   |        |   |   |   |   |   |
| Total liabilities and partners’ capital       |   | $      | 534,315,805 |   |   | $      | 294,991,664 |   |

----

| Face Value                                                         |   |   Maturity Date |   |   Description                            |   | Value      |   | % of PartnersCapital |
|--------------------------------------------------------------------|--------|----------------------|--------|-----------------------------------------------|--------|------------|--------|----------------------|
|                                                               |   |                 |   |                                          |   |       |   |                 |
| Fixed Income Investments – United States                     |   |                 |   |                                          |   |
|                                                               |   |                 |   |                                          |   |       |   |                 |
| U.S. Government Agency Bonds and Notes                             |   |                 |   |                                          |   |       |
|                                                               |   |                 |   |                                          |   |       |   |                 |
| $ 5,000,000                                                   |   | 3/18/2010            |   | Federal Farm Credit Bank, 1.05%               |   | $5,009,400 |   | 0.97                 |
|  8,000,000                                                    |   | 6/17/2011            |   | Federal Farm Credit Bank, 1.2%                |   | 8,020,000  |   | 1.56                 |
|  5,000,000                                                    |   | 9/23/2011            |   | Federal Farm Credit Bank, 1.2%                |   | 4,987,500  |   | 0.97                 |
|  5,000,000                                                    |   | 10/13/2011           |   | Federal Farm Credit Bank, 1.2%                |   | 4,998,450  |   | 0.97                 |
|  10,000,000                                                   |   | 11/4/2011            |   | Federal Farm Credit Bank, 1.24%               |   | 9,981,300  |   | 1.94                 |
|  5,000,000                                                    |   | 5/5/2011             |   | Federal Farm Credit Bank, 1.375%              |   | 5,017,200  |   | 0.97                 |
|  5,000,000                                                    |   | 3/23/2011            |   | Federal Farm Credit Bank, 1.85%               |   | 5,012,500  |   | 0.97                 |
|  1,035,000                                                    |   | 8/5/2011             |   | Federal Home Loan  Bank, 1.375%     |   | 1,041,148  |   | 0.20                 |
|  2,720,000                                                    |   | 12/9/2011            |   | Federal Home Loan Bank, 1.05%                 |   | 2,702,157  |   | 0.52                 |
|  11,165,000                                                   |   | 7/18/2011            |   | Federal Farm Credit Bank, 1.125%              |   | 11,175,495 |   | 2.17                 |
|  10,000,000                                                   |   | 9/30/2010            |   | Federal Home Loan Bank, 1.25%                 |   | 10,050,000 |   | 1.95                 |
|  1,500,000                                                    |   | 10/19/2011           |   | Federal Home Loan Bank, 1.25%                 |   | 1,496,715  |   | 0.29                 |
|  8,130,000                                                    |   | 10/21/2011           |   | Federal Home Loan Bank, 1.25%                 |   | 8,145,284  |   | 1.58                 |
|  5,000,000                                                    |   | 11/23/2011           |   | Federal Home Loan Bank, 1.25%                 |   | 4,992,200  |   | 0.97                 |
|  15,000,000                                                   |   | 6/15/2011            |   | Federal Home Loan Bank, 1.3%                  |   | 15,046,950 |   | 2.92                 |
|  10,000,000                                                   |   | 10/14/2011           |   | Federal Home Loan Bank, 1.3%                  |   | 9,978,100  |   | 1.94                 |
|  10,000,000                                                   |   | 8/27/2010            |   | Federal Home Loan Bank, 1.375%                |   | 10,053,100 |   | 1.95                 |
|  5,000,000                                                    |   | 9/10/2010            |   | Federal Home Loan Bank, 1.4%                  |   | 5,028,150  |   | 0.98                 |
|  5,000,000                                                    |   | 9/13/2010            |   | Federal Home Loan Bank, 1.5%                  |   | 5,032,800  |   | 0.98                 |
|  5,950,000                                                    |   | 11/10/2011           |   | Federal Home Loan Mortgage Corporation, 1.2%  |   | 5,926,379  |   | 1.15                 |
|  3,225,000                                                    |   | 12/30/2011           |   | Federal Home Loan Mortgage Corporation, 1.3%  |   | 3,203,134  |   | 0.62                 |
|  4,175,000                                                    |   | 11/18/2011           |   | Federal Home Loan Mortgage Corporation, 1.5%  |   | 4,162,976  |   | 0.81                 |
|  5,000,000                                                    |   | 2/9/2011             |   | Federal Home Loan Mortgage Corporation, 1.75% |   | 5,006,000  |   | 0.97                 |
|  10,000,000                                                   |   | 3/16/2011            |   | Federal Home Loan Mortgage Corporation, 2%    |   | 10,024,900 |   | 1.94                 |
|  15,000,000                                                   |   | 5/27/2011            |   | Federal National Mortgage Association, 1.35%  |   | 15,042,150 |   | 2.92                 |
|  5,000,000                                                    |   | 9/30/2010            |   | Federal National Mortgage Association, 1.2%   |   | 5,023,450  |   | 0.97                 |
|  10,000,000                                                   |   | 9/28/2011            |   | Federal National Mortgage Association, 1.25%  |   | 9,971,900  |   | 1.93                 |
|  2,000,000                                                    |   | 9/29/2011            |   | Federal National Mortgage Association, 1.25%  |   | 1,996,260  |   | 0.39                 |
|  6,250,000                                                    |   | 12/30/2011           |   | Federal National Mortgage Association, 1.25%  |   | 6,218,750  |   | 1.21                 |
|  10,000,000                                                   |   | 5/27/2011            |   | Federal National Mortgage Association, 1.5%   |   | 10,034,400 |   | 1.95                 |
|  5,000,000                                                    |   | 7/6/2010             |   | Federal National Mortgage Association, 1.50%  |   | 5,032,800  |   | 0.98                 |
|  10,000,000                                                   |   | 4/8/2011             |   | Federal National Mortgage Association, 1.875% |   | 10,031,300 |   | 1.95                 |
|  3,000,000                                                    |   | 2/11/2011            |   | Federal National Mortgage Association, 2%     |   | 3,005,640  |   | 0.58                 |
|  10,000,000                                                   |   | 4/1/2011             |   | Federal National Mortgage Association, 2%     |   | 10,040,600 |   | 1.95                 |
|                                                               |   |                 |   |                                          |
| Total U.S. Government Agency Bonds and Notes (cost - $232,113,166) |   | $232,489,088         |   | 45.10                                         |

----

|          Face Value          |           Maturity Date          |                                        Description                                       |   |           Value          |   |   | % of Partners          Capital          |   |
|-------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|--------|

|   |   |   |   |   |   |   |   |   |
|--------|--------|--------|--------|--------|--------|--------|--------|--------|

| Fixed Income Investments – United States (continued)            |       |   |        |                                                   |   |   |
|-----------------------------------------------------------------------|------------|--------|-------------|--------------------------------------------------------|--------|--------|
|                                                                  |       |   |        |                                                   |   |   |   |   |
| Corporate Notes and Repurchase Agreement                              |       |   |        |                                                   |   |   |
| $                                                                     | 23,350,000 |   | 1/6/2010    | American Honda Finance Corp Disc Note, .15%            |   | $      | 23,347,179 |   |   |   | 4.53 |   |
|                                                                  | 21,900,000 |   | 1/4/2010    | Avery Dennison Corp Disc Note, 0.15%                   |   |   | 21,899,635 |   |   |   | 4.25 |   |
|                                                                  | 22,900,000 |   | 1/4/2010    | BMW US Capital Disc Note, .30%                         |   |   | 22,989,855 |   |   |   | 4.44 |   |
|                                                                  | 22,995,000 |   | 1/12/2010   | BNP Paribas Financial Inc Disc Note, .14%              |   |   | 22,993,122 |   |   |   | 4.46 |   |
|                                                                  | 2,370,000  |   | 1/13/2010   | Chevron Corp Note, .07%                                |   |   | 2,370,000 |   |   |   | 0.46 |   |
|                                                                  | 21,910,000 |   | 1/4/2010    | Devon Energy Corp Disc Note, .18%                      |   |   | 21,909,577 |   |   |   | 4.25 |   |
|                                                                  | 1,175,000  |   | 1/11/2010   | Dexia Delaware LLC Disc Note, .29%                     |   |   | 1,174,735 |   |   |   | 0.23 |   |
|                                                                  | 23,175,000 |   | 1/8/2010    | Dexia Delaware LLC Disc Note, .30%                     |   |   | 23,169,493 |   |   |   | 4.49 |   |
|                                                                  | 3,300,000  |   | 1/6/2010    | Public Svc Co of NC Disc Note, .30%                    |   |   | 3,299,807 |   |   |   | 0.64 |   |
|                                                                  | 30,100,000 |   | 1/4/2010    | Societe General North America Inc Disc Note, .08% |   |   | 30,099,594 |   |   |   | 5.84 |   |
|                                                                  | 2,300,000  |   | 1/15/2010   | Toyota Motor Credit Corp Disc Note, .15%               |   |   | 2,299,712 |   |   |   | 0.45 |   |
|                                                                  | 22,900,000 |   | 1/15/2010   | Vodafone Group P/c disc Note, .23%                     |   |   | 22,898,976 |   |   |   | 4.44 |   |
|                                                                  | 20,000,000 |   | 1/5/2010    | Volkswagen of America Disc Note, .27%                  |   |   | 19,998,950 |   |   |   | 3.88 |   |
|                                                                  | 19,087,000 |   | 1/4/2010    | Wellpoint Inc DTD, .20%                                |   |   | 19,086,258 |   |   |   | 3.70 |   |
|                                                                  |       |   |        |                                                   |   |   |   |   |   |   |   |   |
| Total Corporate Notes and Repurchase Agreements (cost - $237,445,893) |       |   | 237,445,893 |                                                   |   |   | 46.06 |   |
|                                                                  |       |   |        |                                                   |   |   |   |   |   |   |   |   |
| Total investment securities - United States (cost $469,559,059)  |       | $      | 469,934,981 |                                                   |   |   | 91.16 |   |
|                                                                  |       |   |        |                                                   |   |   |   |   |   |   |   |   |

| (1) | Represents the U.S. dollar equivalent of the notional amount bought or sold. |
|-----|------------------------------------------------------------------------------|

----

|   |   |   |   Range of                    Expiration Dates                    |   |   Number ofContractsfor Notional Value |   |   |              Value          |   |   | % of Partners  |   |
|--------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------|--------|

| LONG FUTURES CONTRACTS:             |                  |   |   |    |   |   |   |      |       |   |
|-------------------------------------|-----------------------|--------|--------|---------|--------|--------|--------|-----------|------------|--------|
| Agriculture                         | Feb 10 – Oct 10 |   |   | 751     |   |   |   | $         | 739,441    |   |   | $ | 0.14 |   |
| Currencies                          | Mar 10                |   |   | 1,962   |   |   |   |      | (1,739,750 | )      |   |   | (0.34 | ) |
| Energy                              | Feb 10 – Mar 12 |   |   | 73      |   |   |   |      | 94,634     |   |   |   | 0.02 |   |
| Interest Rates                      | Jan 10 – Mar 12 |   |   | 4,877   |   |   |   |      | 69,583     |   |   |   | 0.01 |   |
| Metals                              | Jan 10 – Dec 10 |   |   | 962     |   |   |   |      | 1,890,916  |   |   |   | 0.37 |   |
| Stock Indices                       | Jan 10 – Mar 10 |   |   | 3,281   |   |   |   |      | 3,443,054  |   |   |   | 0.67 |   |
| Treasury Rates                      | Mar 10                |   |   | 301     |   |   |   |      | (477,078   | )      |   |   | (0.09 | ) |
| Total Long Futures Contracts        |                  |   | 12,747 |    |   |   |   | 4,020,800 |       |   |   | 0.78 |   |
|                                |                  |   |   |    |   |   |   |      |       |   |   |   |   |
| SHORT FUTURES CONTRACTS:            |                  |   |   |    |   |   |   |      |       |   |
| Agriculture                         | Jan 10 – May 10 |   |   | 668     |   |   |   |      | (169,625   | )      |   |   | (0.03 | ) |
| Currencies                          | Jan 10 – Mar 10 |   |   | 926     |   |   |   |      | (104,602   | )      |   |   | (0.02 | ) |
| Energy                              | Jan 10 – Mar 10 |   |   | 174     |   |   |   |      | (440,113   | )      |   |   | (0.09 | ) |
| Interest Rates                      | Mar 10 – Jun 10 |   |   | 149     |   |   |   |      | (26,810    | )      |   |   | (0.01 | ) |
| Metals                              | Jan 10                |   |   | 68      |   |   |   |      | (560,248   | )      |   |   | (0.11 | ) |
| Stock Indices                       | Mar 10                |   |   | 11      |   |   |   |      | (9,154     | )      |   |   | - |   |
| Treasury Rates                      | Mar 10                |   |   | 163     |   |   |   |      | 41,000     |   |   |   | 0.01 |   |
|                                |                  |   |   |    |   |   |   |      |       |   |   |   |   |   |
| Total short futures contracts       |                  |   |   | 2,159   |   |   |   |      | (1,269,552 | )      |   |   | (0.25 | ) |
|                                |                  |   |   |    |   |   |   |      |       |   |   |   |   |   |
| Total futures contracts             |                  |   |   | 14,906  |   |   |   | $         | 2,751,248  |   |   |   | 0.53 |   |
|                                |                  |   |   |    |   |   |   |      |       |   |   |   |   |   |
| LONG OPTIONS CONTRACTS:             |                  |   |   |    |   |   |   |      |       |   |   |   |   |   |
| Stock Indices (cost of $31,080)     | Jan 10 – Mar 10 |   |   | 58      |   |   |   | $         | 15,760     |   |   |   | - |   |
|                                |                  |   |   |    |   |   |   |      |       |   |   |   |   |   |
| SHORT OPTIONS CONTRACTS:            |                  |   |   |    |   |   |   |      |       |   |   |   |   |   |
| Stock Indices (proceeds of $68,320) | Jan 10 – Mar 10 |   |   | 58      |   |   |   | $         | 36,220     |   |   |   | 0.01 |   |
|                                |                  |   |   |    |   |   |   |      |       |   |   |   |   |   |
| SHORT FORWARD CURRENT CONTRACTS:    |                  |   |   |    |   |   |   |      |       |   |   |   |   |   |
| Brazilian Real                      | Jan 10                |   | $      | 200,850 |   | (1)    |   | $         | (4,233     | )      |   |   | - |   |
|                                |                  |   |   |    |   |   |   |      |       |   |   |   |   |   |
| SHORT FORWARD CURRENT CONTRACTS:    |                  |   |   |    |   |   |   |      |       |   |   |   |   |   |
| Brazilian Real                      | Jan 10 – Feb 10 |   | $      | 400,000 |   | (1)    |   | $         | 7,460      |   |   |   | - |   |
|                                |                  |   |   |    |   |   |   |      |       |   |   |   |   |   |
| Total forward currency contracts    |                  |   |   |    |   |   |   | $         | 3,227      |   |   |   | - |   |

| (1) | Represents the U.S. dollar equivalent of the notional amount bought or sold. |
|-----|------------------------------------------------------------------------------|

----

| INVESTMENT SECURITIES                                                |       |                |        |        |                                                 |   |   |       |
|----------------------------------------------------------------------|------------|---------------------|-------------|-------------|------------------------------------------------------|--------|--------|------------|
| Face Value                                                           |       |  Maturity Date |        | Description |                                                 | Value  |   |       | % of Partners Capital |   |
|                                                                 |       |                |        |        |                                                 |   |   |       |   |   |
| Fixed Income Investments - United States                             |       |                |        |        |                                                 |   |   |       |
|                                                                 |       |                |        |        |                                                 |   |   |       |   |   |
| U.S. Government Agency Bonds and Notes                               |       |                |        |        |                                                 |   |
| $                                                                    | 3,000,000  |                | 11/17/2009  |        |  Federal Farm Credit Bank, 2.05%                |   | $      | 3,005,640  |   |   |   | 1.16 |   |
|                                                                 | 6,000,000  |                | 12/23/2010  |        |  Federal Farm Credit Bank, 2.37%                |   |   | 6,011,280  |   |   |   | 2.32 |   |
|                                                                 | 4,000,000  |                | 7/10/2009   |        |  Federal Home Loan Bank, 4.35%                  |   |   | 4,002,280  |   |   |   | 1.54 |   |
|                                                                 | 3,250,000  |                | 5/1/2009    |        |  Federal Home Loan Bank, 3.00%                  |   |   | 3,253,998  |   |   |   | 1.26 |   |
|                                                                 | 3,600,000  |                | 5/20/2009   |        |  Federal Home Loan Bank, 2.04%                  |   |   | 3,603,744  |   |   |   | 1.39 |   |
|                                                                 | 2,800,000  |                | 11/20/2009  |        |  Federal Home Loan Bank, 2.04%                  |   |   | 2,802,128  |   |   |   | 1.08 |   |
|                                                                 | 5,000,000  |                | 12/29/2010  |        |  Federal Home Loan Bank, 2.05%                  |   |   | 5,018,750  |   |   |   | 1.94 |   |
|                                                                 | 5,000,000  |                | 8/21/2009   |        |  Federal Home Loan Bank, 0.44%                  |   |   | 4,994,250  |   |   |   | 1.93 |   |
|                                                                 | 5,000,000  |                | 4/28/2009   |        |  Federal Home Loan Bank, 2.50%                  |   |   | 5,007,800  |   |   |   | 1.93 |   |
|                                                                 | 5,000,000  |                | 4/29/2010   |        |  Federal Home Loan Bank, 3.05%                  |   |   | 5,039,050  |   |   |   | 1.95 |   |
|                                                                 | 4,000,000  |                | 4/30/2009   |        |  Federal Home Loan Bank, 2.60%                  |   |   | 4,030,000  |   |   |   | 1.56 |   |
|                                                                 | 5,000,000  |                | 12/30/2009  |        |  Federal Home Loan Mortgage Corporation, 1.00%  |   |   | 4,993,750  |   |   |   | 1.93 |   |
|                                                                 | 4,000,000  |                | 11/10/2009  |        |  Federal Home Loan Mortgage Corporation, 2.05%  |   |   | 4,005,040  |   |   |   | 1.55 |   |
|                                                                 | 5,000,000  |                | 7/6/2010    |        |  Federal Home Loan Mortgage Corporation, 1.50%  |   |   | 5,000,000  |   |   |   | 1.93 |   |
|                                                                 | 1,180,000  |                | 1/7/2009    |        |  Federal Home Loan Bank Disc Note, 0.03%        |   |   | 1,179,993  |   |   |   | 0.46 |   |
|                                                                 | 6,600,000  |                | 2/4/2009    |        |  Federal Home Loan Mortgage Corp Disc, 0.05%    |   |   | 6,599,670  |   |   |   | 2.55 |   |
|                                                                 |       |                |        |        |                                                 |   |   |       |   |   |   |   |   |
| Total U.S. Government Agency Bonds and Notes (cost - $68,432,351)    |       |                | 68,547,373  |        |                                                 |   | 26.48  |       |
|                                                                 |       |                |        |        |                                                 |   |   |       |   |   |   |   |   |
| Corporate Notes and Repurchase Agreements                            |       |                |        |        |                                                 |   |   |       |
| $                                                                    | 27,893,000 |                | 1/2/2009    |        |  Bank of America Repo, 0.01%                    |   | $      | 27,893,000 |   |   |   | 10.77 |   |
|                                                                 | 6,000,000  |                | 1/6/2009    |        |  Chevron Corp Note, 0.02%                       |   |   | 6,000,000  |   |   |   | 2.32 |   |
|                                                                 | 2,124,000  |                | 1/5/2009    |        |  Hershey Foods Corp Disc Note, 0.15%            |   |   | 2,123,947  |   |   |   | 0.82 |   |
|                                                                 | 896,000    |                | 1/2/2009    |        |  L'Oreal USA Inc Disc Note, 0.15%               |   |   | 895,974    |   |   |   | 0.31 |   |
|                                                                 | 6,000,000  |                | 1/5/2009    |        |  Nestle Capital Disc Note, 0.01%                |   |   | 5,999,991  |   |   |   | 2.32 |   |
|                                                                 | 6,000,000  |                | 1/5/2009    |        |  Northern Illinois Gas Disc Note, 0.07%         |   |   | 5,999,930  |   |   |   | 2.32 |   |
|                                                                 | 6,000,000  |                | 1/6/2009    |        |  Rabobank USA Financial Corp Disc Note, 0.05%   |   |   | 5,999,942  |   |   |   | 2.32 |   |
|                                                                 | 3,400,000  |                | 1/2/2009    |        |  Societe General North America Disc Note, 0.21% |   |   | 3,399,861  |   |   |   | 1.31 |   |
|                                                                 | 6,000,000  |                | 1/2/2009    |        |  Toyota Financial Service Puerto Rico, 0.10%    |   |   | 6,000,000  |   |   |   | 2.32 |   |
|                                                                 |       |                |        |        |                                                 |   |   |       |
| Total Corporate Notes and Repurchase Agreements (cost - $64,312,645) |       |                | 64,312,645  |        |                                                 |   | 24.81  |       |
|                                                                 |       |                |        |        |                                                 |   |   |       |   |   |   |   |   |
|                                                                 |       |                |        |        |                                                 |   |   |       |   |   |   |   |   |
| Total investment securities - United States (cost - $132,744,996)    |       | $                   | 132,860,018 |        |                                                 |   | 51.29  |       |
|                                                                 |       |                |        |        |                                                 |   |   |       |   |   |   |   |   |
|                                                                 |       |                |        |        |                                                 |   |   |       |   |   |   |   |   |

----

|                          |   Range ofExpiration Dates     |   | Number ofContracts |   |   | Value  |   |       | % of Partners Capital |   |
|-------------------------------|---------------------------------------------------------|--------|--------------------|--------|--------|--------|--------|------------|-----------------------|--------|
|                          |                                                    |   |               |   |   |   |   |       |                  |   |
| LONG FUTURES CONTRACTS:       |                                                    |   |               |   |   |   |   |       |                  |   |
| Agriculture                   | Feb - Jun 09                                            |   |               | 60     |   |   | $      | 120,994    |                  |   |   | 0.05 |   |
| Currencies                    |   Mar 09 - Jun 10                                  |   |               | 1,439  |   |   |   | 1,600,723  |                  |   |   | 0.61 |   |
| Interest Rates                | Jan 09 - Jun 10                                         |   |               | 1,533  |   |   |   | 2,662,065  |                  |   |   | 1.03 |   |
| Metals                        | Jan 09                                                  |   |               | 75     |   |   |   | (205,661   | )                     |   |   | (0.08 | ) |
| Stock Indices                 | Mar 09                                                  |   |               | 2      |   |   |   | 875        |                  |   |   | - |   |
| Treasury Rates                | Mar 09 - Dec 09                                         |   |               | 563    |   |   |   | 1,542,447  |                  |   |   | 0.59 |   |
|                          |                                                    |   |               |   |   |   |   |       |                  |   |   |   |   |
| Total long futures contracts  |                                                    |   |               | 3,672  |   |   |   | 5,721,443  |                  |   |   | 2.20 |   |
|                          |                                                    |   |               |   |   |   |   |       |                  |   |   |   |   |
| SHORT FUTURES CONTRACTS:      |                                                    |   |               |   |   |   |   |       |                  |   |   |   |   |
| Agriculture                   | Feb 09 - Nov 10                                         |   |               | 667    |   |   |   | (1,242,086 | )                     |   |   | (0.48 | ) |
| Currencies                    | Mar 09                                                  |   |               | 441    |   |   |   | (1,489,992 | )                     |   |   | (0.58 | ) |
| Energy                        | Jan 09 - Dec 10                                         |   |               | 94     |   |   |   | 302,182    |                  |   |   | 0.12 |   |
| Metals                        | Jan - Apr 09                                            |   |               | 175    |   |   |   | 998,975    |                  |   |   | 0.39 |   |
| Stock Indices                 | Jan - Mar 09                                            |   |               | 119    |   |   |   | (112,475   | )                     |   |   | (0.04 | ) |
| Treasury Rates                | Mar 09                                                  |   |               | 18     |   |   |   | (3,736     | )                     |   |   | - |   |
|                          |                                                    |   |               |   |   |   |   |       |                  |   |   |   |   |
| Total short futures contracts |                                                    |   |               | 1,514  |   |   |   | (1,547,132 | )                     |   |   | (0.59 | ) |
|                          |                                                    |   |               |   |   |   |   |       |                  |   |   |   |   |
| Total futures contracts       |                                                    |   |               | 5,186  |   |   | $      | 4,174,311  |                  |   |   | 1.61 |   |
|                          |                                                    |   |               |   |   |   |   |       |                  |   |   |   |   |
|                          |                                                    |   |               |   |   |   |   |       |                  |   |   |   |   |

----

|                                                                                                                                 |   |   |        |   |   |   |       |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|------------|--------|--------|
|                                                                                                                                 |   |   |        |   |   |   |       |   |   |
|                                                                                                                                 |   | 2009   |        |   | 2008   |   |       | 2007   |   |
| TRADING GAINS (LOSSES):                                                                                                              |   |   |        |   |   |   |       |   |   |
|     Gain (loss) on trading of                                                                                    |   |   |        |   |   |   |       |   |   |
|     derivatives contracts                                                                                        |   |   |        |   |   |   |       |   |   |
| Realized                                                                                                                             |   | $      | (15,134,007 | )      |   | $      | 39,189,837 |   |   | $ | 15,016,680 |   |
| Change in unrealized                                                                                                                 |   |   | (1,403,056  | )      |   |   | 2,819,778  |   |   |   | (739,757 | ) |
| Brokerage commissions                                                                                                                |   |   | (5,636,378  | )      |   |   | (499,445   | )      |   |   | (673,161 | ) |
|                                                                                                                                 |   |   |        |   |   |   |       |   |   |   |   |   |
|                 Gain (loss) from trading derivatives |   |   | (22,173,441 | )      |   |   | 41,510,170 |   |   |   | 13,603,762 |   |
|                                                                                                                                 |   |   |        |   |   |   |       |   |   |   |   |   |
|     Gain (loss) on trading of securities                                                                         |   |   |        |   |   |   |       |   |   |   |   |   |
| Realized                                                                                                                             |   |   | (1,633      | )      |   |   | 5,605      |   |   |   | - |   |
| Change in unrealized                                                                                                                 |   |   | 260,900     |   |   |   | 115,022    |   |   |   | - |   |
|                                                                                                                                 |   |   |        |   |   |   |       |   |   |   |   |   |
|                 Gain from trading securities         |   |   | 259,267     |   |   |   | 120,627    |   |   |   | - |   |
|                                                                                                                                 |   |   |        |   |   |   |       |   |   |   |   |   |
|     Foreign currency translation gains (losses)                                                                  |   |   | (366,896    | )      |   |   | 276,309    |   |   |   | 133,655 |   |
|                                                                                                                                 |   |   |        |   |   |   |       |   |   |   |   |   |
|                 Total trading gains (losses)         |   |   | (22,281,070 | )      |   |   | 41,907,106 |   |   |   | 13,737,417 |   |
|                                                                                                                                 |   |   |        |   |   |   |       |   |   |   |   |   |
| NET INVESTMENT INCOME (LOSS):                                                                                                        |   |   |        |   |   |   |       |   |   |   |   |   |
|     Income                                                                                                       |   |   |        |   |   |   |       |   |   |   |   |   |
|         Interest income                                                                      |   |   | 3,044,150   |   |   |   | 3,801,283  |   |   |   | 3,810,719 |   |
|                                                                                                                                 |   |   |        |   |   |   |       |   |   |   |   |   |
|     Expenses                                                                                                     |   |   |        |   |   |   |       |   |   |   |   |   |
| Management fee                                                                                                                       |   |   | 7,310,067   |   |   |   | 2,474,653  |   |   |   | 1,170,329 |   |
| Administrative fee                                                                                                                   |   |   | 616,020     |   |   |   | 49,259     |   |   |   | - |   |
| Service fees                                                                                                                         |   |   | 4,014,434   |   |   |   | 1,864,912  |   |   |   | 536,306 |   |
| Incentive fee                                                                                                                        |   |   | 546,869     |   |   |   | 8,685,185  |   |   |   | 2,765,664 |   |
| Professional fees                                                                                                                    |   |   | 1,169,523   |   |   |   | 515,291    |   |   |   | 214,484 |   |
|                                                                                                                                 |   |   |        |   |   |   |       |   |   |   |   |   |
|                 Total expenses                       |   |   | 13,656,913  |   |   |   | 13,589,300 |   |   |   | 4,686,783 |   |
|                                                                                                                                 |   |   |        |   |   |   |       |   |   |   |   |   |
|                                                                                                                                 |   |   |        |   |   |   |       |   |   |   |   |   |
|                 Net investment (loss)                |   |   | (10,612,763 | )      |   |   | (9,788,017 | )      |   |   | (876,064 | ) |
|                                                                                                                                 |   |   |        |   |   |   |       |   |   |   |   |   |
|                                                                                                                                 |   |   |        |   |   |   |       |   |   |   |   |   |
|                 NET INCOME (LOSS)                    |   | $      | (32,893,833 | )      |   | $      | 32,119,089 |   |   | $ | 12,861,353 |   |
|                                                                                                                                 |   |   |        |   |   |   |       |   |   |   |   |   |
|                                                                                                                                 |   |   |        |   |   |   |       |   |   |   |   |   |
|                                                                                                                                 |   |   |        |   |   |   |       |   |   |   |   |   |
|                                                                                                                                 |   |   |        |   |   |   |       |   |   |   |   |   |
|                                                                                                                                 |   |   |        |   |   |   |       |   |   |   |   |   |

----

|                          |   |         |        |   |   Limited Partners |   |        |            |   |
|-------------------------------|--------|--------------|-------------|--------|-------------------------|--------|-------------|-----------------|--------|
|                          |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                          |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                          |   |   Total |        |   | OriginalClass A         |   |        | OriginalClass B |   |   | SpecialSpecial Interests |   |   |   Class A |   |   |   Class B |   |   | Institutional Interests |   |   | GeneralPartner |   |
|                          |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances at December 31, 2006 |   | $            | 57,161,095  |   |                    | $      | 16,714,934  |            |   | $ | 31,527,995 |   |   | $ | 8,915,623 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 2,543 |   |
|                          |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transfers                     |   |         | -           |   |                    |   | (1,127,544  | )               |   |   | 1,127,544 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                          |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital additions             |   |         | 41,661,121  |   |                    |   | 18,167,321  |            |   |   | 22,673,800 |   |   |   | 820,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                          |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital withdrawals           |   |         | (16,152,642 | )      |                    |   | (2,299,027  | )               |   |   | (12,633,615 | ) |   |   | (1,220,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                          |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income for the year       |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ended December 31, 2006       |   |         | 12,861,353  |   |                    |   | 4,051,251   |            |   |   | 7,557,205 |   |   |   | 1,252,541 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 356 |   |
|                          |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Offering costs                |   |         | (16,066     | )      |                    |   | (5,436      | )               |   |   | (9,077 | ) |   |   | (1,553 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                          |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances at December 31, 2007 |   |         | 95,514,861  |   |                    |   | 35,501,499  |            |   |   | 50,243,852 |   |   |   | 9,766,611 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,899 |   |
|                          |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transfers                     |   |         | -           |   |                    |   | (3,428,705  | )               |   |   | (63,946,413 | ) |   |   | - |   |   |   | (262,983 | ) |   |   | 260,072 |   |   |   | 67,378,029 |   |   |   | - |   |
|                          |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital additions             |   |         | 178,574,330 |   |                    |   | 64,322,008  |            |   |   | 32,627,859 |   |   |   | - |   |   |   | 29,770,930 |   |   |   | 26,373,531 |   |   |   | 25,480,002 |   |   |   | - |   |
|                          |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital withdrawals           |   |         | (47,036,859 | )      |                    |   | (3,474,589  | )               |   |   | (14,264,716 | ) |   |   | (8,174,000 | ) |   |   | (113,314 | ) |   |   | (54,100 | ) |   |   | (20,956,140 | ) |   |   | - |   |
|                          |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income for the year       |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ended December 31, 2008       |   |         | 32,119,089  |   |                    |   | 13,188,377  |            |   |   | 11,614,186 |   |   |   | 1,563,864 |   |   |   | 1,779,682 |   |   |   | 1,685,068 |   |   |   | 2,287,318 |   |   |   | 594 |   |
|                          |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Offering costs                |   |         | (123,943    | )      |                    |   | (61,913     | )               |   |   | (28,720 | ) |   |   | (5,995 | ) |   |   | (2,994 | ) |   |   | (2,145 | ) |   |   | (22,174 | ) |   |   | (2 | ) |
|                          |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances at December 31, 2008 |   |         | 259,047,478 |   |                    |   | 106,046,677 |            |   |   | 16,246,048 |   |   |   | 3,150,480 |   |   |   | 31,171,321 |   |   |   | 28,262,426 |   |   |   | 74,167,035 |   |   |   | 3,491 |   |
|                          |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transfers                     |   |         | -           |   |                    |   | (1,619,578  | )               |   |   | 918,871 |   |   |   | - |   |   |   | (584,077 | ) |   |   | 92,967 |   |   |   | 1,191,817 |   |   |   | - |   |
|                          |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital additions             |   |         | 341,256,824 |   |                    |   | 169,092     |            |   |   | 1,121 |   |   |   | 37,650,000 |   |   |   | 154,019,760 |   |   |   | 85,850,610 |   |   |   | 63,566,241 |   |   |   | - |   |
|                          |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital withdrawals           |   |         | (51,787,951 | )      |                    |   | (16,975,386 | )               |   |   | (1,277,714 | ) |   |   | (8,581,457 | ) |   |   | (7,082,968 | ) |   |   | (3,645,724 | ) |   |   | (14,224,702 | ) |   |   | - |   |
|                          |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss for the year         |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ended December 31, 2009       |   |         | (32,893,833 | )      |                    |   | (8,460,393  | )               |   |   | (1,146,642 | ) |   |   | (1,785,361 | ) |   |   | (9,287,406 | ) |   |   | (5,305,870 | ) |   |   | (6,907,869 | ) |   |   | (292 | ) |
|                          |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Offering costs                |   |         | (156,742    | )      |                    |   | (37,727     | )               |   |   | (6,117 | ) |   |   | (6,107 | ) |   |   | (40,512 | ) |   |   | (27,680 | ) |   |   | (38,598 | ) |   |   | (1 | ) |
|                          |   |         |        |   |                    |   |        |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances at December 31, 2009 |   | $            | 515,465,776 |   |                    | $      | 79,122,685  |            |   | $ | 14,735,567 |   |   | $ | 30,427,555 |   |   | $ | 168,196,118 |   |   | $ | 105,226,729 |   |   | $ | 117,753,924 |   |   | $ | 3,198 |   |

----

| The Partnership follows accounting standards set by the Financial Accounting Standards Board, commonly referred to as the “FASB.” The FASB sets generally accepted accounting principles (GAAP) that the Partnership follows to ensure consistent reporting of the Partnership’s financial condition, results of operations, and changes in partners’ capital. References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification referred to as “ASC”. The FASB finalized the ASC effective for periods ending on or after September 15, 2009. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The Partnership’s financial statements are presented in accordance with accounting principles generally accepted in the United States of America, which require the use of certain estimates made by the Partnership’s management.  Actual results could differ from those estimates. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Pursuant to the Cash Flows Topic of the Codification, the Fund qualifies for an exemption from the requirement to provide a statement of cash flows and has elected not to provide a statement of cash flows. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Cash and Cash Equivalents |
|---------------------------|

----

| NOTE 1 - | ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|----------|--------------------------------------------------------------|

----

| NOTE 1 - | ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|----------|--------------------------------------------------------------|

----

| NOTE 1 - | ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|----------|--------------------------------------------------------------|

|         |                                     |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |        |   | Significant Other Observable Inputs (Level 2) |   |        | Significant Unobservable Inputs (Level 3) |   |   | Balance as of December 31, 2009 |   |
|--------------|------------------------------------------|--------|----------------------------------------------------------------|-------------|--------|-----------------------------------------------|--------|-------------|-------------------------------------------|--------|--------|---------------------------------|--------|
| Assets:      |                                     |   |                                                           |        |   |                                          |   |        |                                      |   |   |                            |   |
|         | Futures contracts                        |   | $                                                              | 2,751,248   |   |                                          | $      | -           |                                      |   | $      | -                               |   |   | $ | 2,751,248 |   |
|         | Options contracts                        |   |                                                           | 15,760      |   |                                          |   | -           |                                      |   |   | -                               |   |   |   | 15,760 |   |
|         | Forward currency contracts               |   |                                                           | -           |   |                                          |   | 3,227       |                                      |   |   | -                               |   |   |   | 3,227 |   |
|         | US Government agencyobligations          |   |                                                           | 232,489,088 |   |                                          |   | -           |                                      |   |   | -                               |   |   |   | 232,489,088 |   |
|         | Corporate notes andrepurchase agreements |   |                                                           | -           |   |                                          |   | 237,445,893 |                                      |   |   | -                               |   |   |   | 237,445,893 |   |
|         |                                     |   |                                                           |        |   |                                          |   |        |                                      |   |   |                            |   |   |   |   |   |
|         |                                     |   | $                                                              | 235,256,096 |   |                                          | $      | 237,449,120 |                                      |   | $      | -                               |   |   | $ | 472,705,216 |   |
|         |                                     |   |                                                           |        |   |                                          |   |        |                                      |   |   |                            |   |   |   |   |   |
| Liabilities: |                                     |   |                                                           |        |   |                                          |   |        |                                      |   |   |                            |   |   |   |   |
|         | Options contracts                        |   | $                                                              | 36,220      |   |                                          | $      | -           |                                      |   | $      | -                               |   |   | $ | 36,220 |   |

----

| NOTE 1 - | ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|----------|--------------------------------------------------------------|

|    |                                     |   |                                                           |       |   |                                          |   |       |                                      |   |   |                            |   |   |   |        |   |
|---------|------------------------------------------|--------|----------------------------------------------------------------|------------|--------|-----------------------------------------------|--------|------------|-------------------------------------------|--------|--------|---------------------------------|--------|--------|--------|-------------|--------|
|    |                                     |   |                                                           |       |   |                                          |   |       |                                      |   |   |                            |   |   |   |        |   |
|    |                                     |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |       |   | Significant Other Observable Inputs (Level 2) |   |       | Significant Unobservable Inputs (Level 3) |   |   | Balance as of December 31, 2008 |   |
| Assets: |                                     |   |                                                           |       |   |                                          |   |       |                                      |   |   |                            |   |   |   |        |   |
|    | Futures contracts                        |   | $                                                              | 4,174,311  |   |                                          | $      | -          |                                      |   | $      | -                               |   |   | $      | 4,174,311   |   |
|    | US Government agencyobligations          |   |                                                           | 68,547,373 |   |                                          |   | -          |                                      |   |   | -                               |   |   |   | 68,547,373  |   |
|    | Corporate notes andrepurchase agreements |   |                                                           | -          |   |                                          |   | 64,312,645 |                                      |   |   | -                               |   |   |   | 64,312,645  |   |
|    |                                     |   |                                                           |       |   |                                          |   |       |                                      |   |   |                            |   |   |   |        |   |
|    |                                     |   | $                                                              | 72,721,684 |   |                                          | $      | 64,312,645 |                                      |   | $      | -                               |   |   | $      | 137,034,329 |   |

----

| NOTE 1 - | ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|----------|--------------------------------------------------------------|

| The Partnership classifies interest and penalties, if any, as interest expense.  The Partnership files U.S. federal and state tax returns.  The 2006 through 2009 tax years generally remain subject to examination by U.S. federal and most state tax authorities. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| NOTE 1 - | ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|----------|--------------------------------------------------------------|

|   | December 31, 2009 |
|--------|-------------------|

|                                  |                                                  |   |                                                                                                                    |                           |                                                                                        |   |                                                                                                                    |   |
|---------------------------------------|-------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------|--------|
|   Futures Contracts         |                                                  |   | AssetDerivativesFair Value                                                                                              | LiabilityDerivativesFair Value |  NetFair Value                                                                         |
|   Agriculture               |                                                  |   |  $        1,170,985                                                        |                           |  $      (601,169)                                        |   |  $            569,816                                  |   |
|   Currencies                |                                                  |   |                387,606                       |                           |       (2,231,958)                                             |   |           (1,844,352)                                                 |   |
|   Energy                    |                                                  |   |                119,033                       |                           |           (464,512)                       |   |              (345,479)                                 |   |
|   Interest Rates            |                                                  |   |             1,809,953                                       |                           |       (1,767,180)                                             |   |                  42,773            |   |
|   Metals                    |                                                  |   |             2,938,456                                       |                           |       (1,607,878)                                             |   |             1,330,668                                       |   |
|   Stock Indices             |                                                  |   |             3,749,160                                       |                           |           (315,260)                       |   |             3,433,900                                       |   |
|   Treasury Rates            |                                                  |   |                  57,594            |                           |           (493,672)                       |   |              (436,078)                                 |   |
|                                  |                                                  |   |          10,232,877                                                        |                           |       (7,481,629)                                             |   |             2,751,248                                       |   |
|                                  |                                                  |   |                                                                                                                    |                           |                                                                                        |   |                                                                                                                    |   |
| Options on Futures Contracts          |                                                  |   |                                                                                                                    |                           |                                                                                        |   |
|   Stock Indices             |                                                  |   |                  15,760            |                           |             (36,220)            |   |                 (20,460)                |   |
|                                  |                                                  |   |                                                                                                                    |                           |                                                                                        |   |                                                                                                                    |   |
| Forward  Currency Contracts |                                                  |   |                                                                                                                    |                           |                                                                                        |   |
|   Currencies                |                                                  |   |                    7,460 |                           |               (4,233) |   |                    3,227 |   |
|                                  |                                                  |   |                                                                                                                    |                           |                                                                                        |   |                                                                                                                    |   |
| Total Gross Fair Value of Derivatives |  $      10,256,097 |   |  $   (7,522,082)                                                                                    |                           |  $        2,734,015                            |   |
|                                  |                                                  |   |                                                                                                                    |                           |                                                                                        |   |                                                                                                                    |   |

----

| NOTE 1 - | ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|----------|--------------------------------------------------------------|

|                                                                             |                                                          |                                                                     |                                                                                                                                                                      |                                                              |                                                                                                        |                                                                                                                     |                                                                                                                                                |   |
|----------------------------------------------------------------------------------|---------------------------------------------------------------|--------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                             |                                                          |                                                                     | Year Ended December 31, 2009                                                                                                                                              |                                                              |                                                                                                        |                                                                                                                     |
|  Futures Contracts                                                          |                                                          |                                                                     |  Realized                                                                                                                                                            |                                                              | Change inUnrealized                                                                                         | Number ofContracts Closed                                                                                                |
|   Agriculture                                                          |                                                          |                                                                     |  $         (1,573,442)                                                                                                  |                                                              |  $       1,690,908                                                  |                                                                                                                     |                      2,838                 |   |
|   Currencies                                                           |                                                          |                                                                     |             (1,811,907)                                                                                       |                                                              |          (1,955,084)                                           |                                                                                                                     |                      6,820                 |   |
|   Energy                                                               |                                                          |                                                                     |             (7,203,938)                                                                                       |                                                              |             (647,661)                           |                                                                                                                     |                      1,676                 |   |
|   Interest Rates                                                       |                                                          |                                                                     |               4,429,561                                                                             |                                                              |          (2,618,822)                                           |                                                                                                                     |                      6,524                 |   |
|   Metals                                                               |                                                          |                                                                     |               3,183,739                                                                             |                                                              |              537,355                       |                                                                                                                     |                      1,034                 |   |
|   Stock Indices                                                        |                                                          |                                                                     |             (6,947,020)                                                                                       |                                                              |           3,545,500                                       |                                                                                                                     |                      6,816                 |   |
|   Treasury Rates                                                       |                                                          |                                                                     |             (5,360,121)                                                                                       |                                                              |          (1,975,259)                                           |                                                                                                                     |                      3,833                 |   |
|   Total futures contracts                                              |                                                          |           (15,283,128) |                                                                                                                                                                      |          (1,423,063) |                                                                                                        |                    29,541 |                                                                                                                                                |
|                                                                             |                                                          |                                                                     |                                                                                                                                                                      |                                                              |                                                                                                        |                                                                                                                     |                                                                                                                                                |   |
| Options on Futures Contracts                                                     |                                                          |                                                                     |                                                                                                                                                                      |                                                              |                                                                                                        |                                                                                                                     |                                                                                                                                                |
|   Stock Indices                                                        |                                                          |                                                                     |                  149,121                                                             |                                                              |                16,780            |                                                                                                                     |                         386 |   |
|                                                                             |                                                          |                                                                     |                                                                                                                                                                      |                                                              |                                                                                                        |                                                                                                                     |                                                                                                                                                |   |
| Forward Currency Contracts                                                       |                                                          |                                                                     |                                                                                                                                                                      |                                                              |                                                                                                        |                                                                                                                     |                                                                                                                                                |
|   Currencies                                                           |                                                          |                                                                     |                             - |                                                              |                  3,227 |                                                                                                                     |  $              200,000                                                  | (1)    |
|   Total gains from derivatives trading                                 |  $       (15,134,007) |                                                                     |  $      (1,403,056)                                                                                                                    |                                                              |                                                                                                        |                                                                                                                     |
|                                                                             |                                                          |                                                                     |                                                                                                                                                                      |                                                              |                                                                                                        |                                                                                                                     |                                                                                                                                                |   |
| (1) Represents the U.S. dollar equivalent of the notional amount bought or sold. |                                                          |                                                                     |                                                                                                                                                                      |

----

| NOTE 1 - | ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|----------|--------------------------------------------------------------|

----

----

----

----

|                                                 |   | December 31, 2009 |   |     |
|------------------------------------------------------|--------|-------------------|--------|----------|
|                                                 |   | Original          |   | Original |   | Special |   | (5) |   | (5) |   | (5)Institutional |
|                                                 |   | Class A           |   | Class B  |   | Interests |   | Class A |   | Class B |   | Interests |
|                                                 |   |              |   |     |   |   |   |   |   |   |   |   |
| Total return for Limited Partners (4)                |   | (8.39)%           |   | (7.46)%  |   | (7.38)% |   | (10.28)% |   | (8.41)% |   | (7.56)% |
|                                                 |   |              |   |     |   |   |   |   |   |   |   |   |
| Ratio to average net asset value                     |   |              |   |     |   |   |   |   |   |   |   |   |
|   Expenses prior to incentive fees (1)     |   | 3.06%             |   | 2.07%    |   | 1.83% |   | 4.88% |   | 2.89% |   | 2.07% |
|   Incentive fees (4)                       |   | 0.00%             |   | 0.01%    |   | 0.11% |   | 0.25% |   | 0.19% |   | 0.09% |
|                                                 |   |              |   |     |   |   |   |   |   |   |   |   |
|     Total expenses               |   | 3.06%             |   | 2.08%    |   | 1.94% |   | 5.13% |   | 3.08% |   | 2.16% |
|                                                 |   |              |   |     |   |   |   |   |   |   |   |   |
|   Net investment (loss) (1) (2)            |   | (2.36)%           |   | (1.36)%  |   | (1.08)% |   | (4.14)% |   | (2.16)% |   | (1.35)% |
|                                                 |   |              |   |     |   |   |   |   |   |   |   |   |
|                                                 |   |              |   |     |   |   |   |   |   |   |   |   |
|                                                 |   | December 31, 2008 |   |     |
|                                                 |   | Original          |   | Original |   | Special |   | (5) |   | (5) |   | (5)Institutional |
|                                                 |   | Class A           |   | Class B  |   | Interests |   | Class A |   | Class B |   | Interests |
|                                                 |   |              |   |     |   |   |   |   |   |   |   |   |
| Total return for Limited Partners (4)                |   | 20.33%            |   | 21.58%   |   | 21.93% |   | 1.29% |   | 2.16% |   | 3.52% |
|                                                 |   |              |   |     |   |   |   |   |   |   |   |   |
| Ratio to average net asset value                     |   |              |   |     |   |   |   |   |   |   |   |   |
|   Expenses prior to incentive fees (1) (3) |   | 3.13%             |   | 1.97%    |   | 1.77% |   | 5.08% |   | 3.06% |   | 2.18% |
|   Incentive fees (4)                       |   | 4.27%             |   | 6.70%    |   | 5.07% |   | 2.95% |   | 3.32% |   | 1.22% |
|                                                 |   |              |   |     |   |   |   |   |   |   |   |   |
|     Total expenses               |   | 7.40%             |   | 8.67%    |   | 6.84% |   | 8.03% |   | 6.38% |   | 3.40% |
|                                                 |   |              |   |     |   |   |   |   |   |   |   |   |
|   Net investment income (loss) (1) (2) (3) |   | (1.09)%           |   | 0.54%    |   | 0.56% |   | (3.65)% |   | (1.70)% |   | (0.49)% |
|                                                 |   |              |   |     |   |   |   |   |   |   |   |   |

----

|   | (1) | Includes offering costs, if any. |
|--------|-----|----------------------------------|

|   | (2) | Excludes incentive fee. |
|--------|-----|-------------------------|

|   | (3) | Annualized only for Class A, Class B and Institutional Interests. |
|--------|-----|-------------------------------------------------------------------|

|   | (4) | Not annualized. |
|--------|-----|-----------------|

|   | (5) | Class A, Class B and Institutional Interests were first issued effective July 1, 2008. |
|--------|-----|----------------------------------------------------------------------------------------|

----

|   |   |
|--------|--------|

|                                             |   |              |   |
|--------------------------------------------------|--------|-------------------|--------|
|                                             |   | December 31, 2007 |   |
|                                             |   |              |   |
|                                             |   | Original          |   | Original |   | Special |   |
|                                             |   | Class A           |   | Class B |   | Interests |   |
|                                             |   |              |   |   |   |   |   |
| Total return for Limited Partners (4)            |   | 13.61%            |   | 14.97% |   | 15.45% |   |
|                                             |   |              |   |   |   |   |   |
| Ratio to average net asset value                 |   |              |   |   |   |   |   |
|   Expenses prior to incentive fees (1) |   | 3.05%             |   | 2.03% |   | 1.77% |   |
|   Incentive fees (4)                   |   | 3.46%             |   | 3.33% |   | 2.87% |   |
|                                             |   |              |   |   |   |   |   |
|     Total expenses           |   | 6.51%             |   | 5.36% |   | 4.64% |   |
|                                             |   |              |   |   |   |   |   |
|   Net investment income (1) (2)        |   | 1.51%             |   | 2.56% |   | 2.79% |   |
|                                             |   |              |   |   |   |   |   |

----

|   | (1) | Includes offering costs, if any. |
|--------|-----|----------------------------------|

|   | (2) | Excludes incentive fee. |
|--------|-----|-------------------------|

|   | (3) | Annualized. |
|--------|-----|-------------|

|   | (4) | Not annualized. |
|--------|-----|-----------------|

|   | (5) | Class A, Class B and Institutional Interests were first issued effective July 1, 2008. |
|--------|-----|----------------------------------------------------------------------------------------|

----