Attached files
file | filename |
---|---|
EX-32.1 - EX-32.1 - SUPERFUND GREEN, L.P. | c54683exv32w1.htm |
EX-31.1 - EX-31.1 - SUPERFUND GREEN, L.P. | c54683exv31w1.htm |
EX-32.2 - EX-32.2 - SUPERFUND GREEN, L.P. | c54683exv32w2.htm |
EX-31.2 - EX-31.2 - SUPERFUND GREEN, L.P. | c54683exv31w2.htm |
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2009
OR
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ___________ to _____________
Commission File number: 000-51634
QUADRIGA SUPERFUND, L.P.
Delaware | 98-0375395 | |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
Superfund Office Building P.O. Box 1479 Grand Anse St. Georges, Grenada West Indies |
Not applicable | |
(Address of principal executive offices) | (Zip Code) |
(473) 439-2418
(Registrants telephone number, including area code)
Not applicable
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes þ No o
Indicate by check mark whether the registrant has submitted electronically and posted on its
corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant
to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for
such shorter period that the registrant was required to submit and post such files).
Yes o No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer, or a smaller reporting company. See the definitions of large accelerated
filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer o | Accelerated Filer o | Non-Accelerated Filer o (Do not check if a smaller reporting company) | Smaller Reporting Company þ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act).
Yes o No þ
PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The following financial statements of Quadriga Superfund, L.P. Series A are included in Item 1:
Page | ||||
Financial Statements |
||||
3 | ||||
4 | ||||
5 | ||||
6 | ||||
7 | ||||
8 |
The following financial statements of Quadriga Superfund, L.P. Series B are included in Item 1:
2
Table of Contents
QUADRIGA SUPERFUND, L.P. SERIES A
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 2009 (Unaudited) and December 31, 2008
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 2009 (Unaudited) and December 31, 2008
September 30, 2009 | December 31, 2008 | |||||||
ASSETS |
||||||||
US Government securities, at fair value
(amortized cost of $14,216,725 and $31,494,929 as of
September 30, 2009, and December 31, 2008, respectively) |
$ | 14,216,725 | $ | 31,494,929 | ||||
Due from brokers |
18,687,495 | 4,049,967 | ||||||
Unrealized appreciation on open forward contracts |
281,415 | 11,138 | ||||||
Futures contracts sold |
| 109,330 | ||||||
Futures contracts purchased |
2,380,210 | 735,529 | ||||||
Cash |
355,534 | 810,576 | ||||||
Total assets |
35,921,379 | 37,211,469 | ||||||
LIABILITIES |
||||||||
Unrealized depreciation on open forward contracts |
286,401 | 43,336 | ||||||
Futures contracts sold |
6,196 | | ||||||
Redemptions payable |
289,382 | 1,714,573 | ||||||
Due to affiliate |
| 300,000 | ||||||
Management fees payable |
54,996 | 56,861 | ||||||
Fees payable |
108,881 | 124,365 | ||||||
Total liabilities |
745,856 | 2,239,135 | ||||||
NET ASSETS |
$ | 35,175,523 | $ | 34,972,334 | ||||
Number of Units |
23,688.460 | 18,098.830 | ||||||
Net asset value per Unit |
$ | 1,484.92 | $ | 1,932.30 | ||||
See accompanying notes to financial statements.
3
Table of Contents
QUADRIGA SUPERFUND, L.P. SERIES A
CONDENSED SCHEDULE OF INVESTMENTS
September 30, 2009 (Unaudited)
CONDENSED SCHEDULE OF INVESTMENTS
September 30, 2009 (Unaudited)
Percentage of | ||||||||||||
Face Value | Net Assets | Fair Value | ||||||||||
Debt Securities United States, at fair value |
||||||||||||
United States Treasury Bills due November 27, 2009
(amortized cost $14,216,725), securities are held in
margin accounts as collateral for open futures and
forwards |
$ | 14,220,000 | 40.4 | % | $ | 14,216,725 | ||||||
Forward contracts, at fair value |
||||||||||||
Unrealized appreciation on forward contracts |
||||||||||||
Currency |
0.8 | 281,415 | ||||||||||
Total unrealized appreciation on forward contracts |
0.8 | 281,415 | ||||||||||
Unrealized depreciation on forward contracts |
||||||||||||
Currency |
(0.8 | ) | (286,401 | ) | ||||||||
Total unrealized depreciation on forward contracts |
(0.8 | ) | (286,401 | ) | ||||||||
Total forward contracts, at fair value |
(0.0 | )* | (4,986 | ) | ||||||||
Futures contracts, at fair value |
||||||||||||
Futures Contracts Purchased |
||||||||||||
Currency |
1.6 | 564,073 | ||||||||||
Financial |
3.2 | 1,124,891 | ||||||||||
Food & Fiber |
0.3 | 100,899 | ||||||||||
Indices |
(0.1 | ) | (12,473 | ) | ||||||||
Metals |
1.7 | 602,820 | ||||||||||
Total futures contracts purchased |
6.7 | 2,380,210 | ||||||||||
Futures Contracts Sold |
||||||||||||
Currency |
0.4 | 147,537 | ||||||||||
Energy |
(0.1 | ) | (49,710 | ) | ||||||||
Food & Fiber |
0.7 | 241,216 | ||||||||||
Indices |
0.1 | 43,023 | ||||||||||
Livestock |
0.2 | 55,210 | ||||||||||
Metals |
(1.3 | ) | (443,472 | ) | ||||||||
Total futures contracts sold |
(0.0 | )* | (6,196 | ) | ||||||||
Total futures contracts, at fair value |
6.7 | % | $ | 2,374,014 | ||||||||
Futures and forward contracts by country composition |
||||||||||||
European Monetary Union |
1.4 | % | $ | 510,728 | ||||||||
Great Britain |
1.2 | 443,010 | ||||||||||
Japan |
2.6 | 901,870 | ||||||||||
United States |
1.6 | 554,938 | ||||||||||
Other |
(0.1 | ) | (41,518 | ) | ||||||||
Total futures and forward contracts by country |
6.7 | % | $ | 2,369,028 | ||||||||
* | Due to rounding |
See accompanying notes to financial statements.
4
Table of Contents
QUADRIGA SUPERFUND, L.P. SERIES A
CONDENSED SCHEDULE OF INVESTMENTS
December 31, 2008
CONDENSED SCHEDULE OF INVESTMENTS
December 31, 2008
Percentage of | ||||||||||||
Face Value | Net Assets | Fair Value | ||||||||||
Debt Securities United States, at fair value |
||||||||||||
United States Treasury Bills due February 26, 2009
(amortized cost $31,494,929), securities are held in
margin accounts as collateral for open futures and
forwards |
$ | 31,500,000 | 90.1 | % | $ | 31,494,929 | ||||||
Forward contracts, at fair value |
||||||||||||
Unrealized appreciation on forward contracts |
||||||||||||
Currency |
0.0 | * | 11,138 | |||||||||
Total unrealized appreciation on forward contracts |
0.0 | * | 11,138 | |||||||||
Unrealized depreciation on forward contracts |
||||||||||||
Currency |
(0.1 | ) | (43,336 | ) | ||||||||
Total unrealized depreciation on forward contracts |
(0.1 | ) | (43,336 | ) | ||||||||
Total forward contracts, at fair value |
(0.1 | ) | (32,198 | ) | ||||||||
Futures Contracts, at fair value |
||||||||||||
Futures Contracts Purchased |
||||||||||||
Currency |
0.3 | 101,136 | ||||||||||
Financial |
1.5 | 508,908 | ||||||||||
Food & Fiber |
0.1 | 33,914 | ||||||||||
Indices |
0.0 | * | 22,836 | |||||||||
Metals |
0.2 | 68,735 | ||||||||||
Total futures contracts purchased |
2.1 | 735,529 | ||||||||||
Futures Contracts Sold |
||||||||||||
Currency |
0.1 | 38,025 | ||||||||||
Energy |
0.2 | 88,531 | ||||||||||
Financial |
0.0 | * | 919 | |||||||||
Food & Fiber |
(0.1 | ) | (40,878 | ) | ||||||||
Indices |
(0.0 | )* | (7,067 | ) | ||||||||
Livestock |
0.1 | 23,400 | ||||||||||
Metals |
0.0 | * | 6,400 | |||||||||
Total futures contracts sold |
0.3 | 109,330 | ||||||||||
Total futures contracts, at fair value |
2.4 | % | $ | 844,859 | ||||||||
Futures, swap and forward contracts by country composition |
||||||||||||
European Monetary Union |
0.4 | % | $ | 153,538 | ||||||||
Great Britain |
0.3 | 110,392 | ||||||||||
United States |
1.1 | 369,143 | ||||||||||
Other |
0.5 | 179,588 | ||||||||||
Total futures and forward contracts by country |
2.3 | % | $ | 812,661 | ||||||||
* | Due to rounding |
See accompanying notes to financial statements.
5
Table of Contents
QUADRIGA SUPERFUND, L.P. SERIES A
STATEMENTS OF OPERATIONS
(Unaudited)
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Investment income |
||||||||||||||||
Interest income |
$ | 7,733 | $ | 176,226 | $ | 31,849 | $ | 814,550 | ||||||||
Total income |
7,733 | 176,226 | 31,849 | 814,550 | ||||||||||||
Expenses |
||||||||||||||||
Selling commission |
340,090 | 376,532 | 1,044,317 | 1,380,848 | ||||||||||||
Management fee |
157,292 | 174,146 | 482,997 | 638,642 | ||||||||||||
Ongoing offering expenses |
85,022 | 94,133 | 261,079 | 345,212 | ||||||||||||
Operating expenses |
12,754 | 14,120 | 39,162 | 51,782 | ||||||||||||
Incentive fee |
| | | 1,786,681 | ||||||||||||
Brokerage commissions |
175,399 | 133,131 | 410,850 | 579,785 | ||||||||||||
Other |
3,692 | 7,537 | 13,118 | 11,780 | ||||||||||||
Total expenses |
774,249 | 799,599 | 2,251,523 | 4,794,730 | ||||||||||||
Net investment loss |
(766,516 | ) | (623,373 | ) | (2,219,674 | ) | (3,980,180 | ) | ||||||||
Realized and unrealized gain
(loss) on investments |
||||||||||||||||
Net realized gain (loss) on futures
and forward contracts
|
(1,572,831 | ) | (2,946,421 | ) | (8,566,923 | ) | 11,735,085 | |||||||||
Net change in unrealized
appreciation (depreciation) on
futures and forward contracts |
||||||||||||||||
1,748,399 | (2,452,818 | ) | 1,556,367 | 67,469 | ||||||||||||
Net gain (loss) on investments |
175,568 | (5,399,239 | ) | (7,010,556 | ) | 11,802,554 | ||||||||||
Net increase (decrease) in net assets
from operations |
$ | (590,948 | ) | $ | (6,022,612 | ) | $ | (9,230,230 | ) | $ | 7,822,374 | |||||
Net increase (decrease) in net assets
from operations per unit (based upon
weighted average number of units
outstanding during period) |
$ | (25.22 | ) | $ | (271.05 | ) | $ | (436.83 | ) | $ | 292.31 | |||||
Net increase (decrease) in net assets
from operations per unit (based upon
change in net asset value per unit
during period) |
||||||||||||||||
$ | (29.47 | ) | $ | (270.65 | ) | $ | (447.38 | ) | $ | 188.86 | ||||||
See accompanying notes to financial statements.
6
Table of Contents
QUADRIGA SUPERFUND, L.P. SERIES A
STATEMENTS OF CHANGES IN NET ASSETS
For the Nine Months Ended September 30,
(Unaudited)
STATEMENTS OF CHANGES IN NET ASSETS
For the Nine Months Ended September 30,
(Unaudited)
2009 | 2008 | |||||||
Increase (Decrease) in net assets from operations |
||||||||
Net investment loss |
$ | (2,219,674 | ) | $ | (3,980,180 | ) | ||
Net realized gain (loss) on futures and forward contracts |
(8,566,923 | ) | 11,735,085 | |||||
Net change in unrealized appreciation on futures and
forward contracts |
||||||||
1,556,367 | 67,469 | |||||||
Net increase (decrease) in net assets from operations |
(9,230,230 | ) | 7,822,374 | |||||
Capital share transactions |
||||||||
Issuance of Units |
20,138,149 | 4,768,309 | ||||||
Redemption of Units |
(10,704,730 | ) | (36,477,314 | ) | ||||
Net increase (decrease) in net assets from capital share
transactions |
9,433,419 | (31,709,005 | ) | |||||
Net increase (decrease) in net assets |
203,189 | (23,886,631 | ) | |||||
Net assets, beginning of period |
34,972,334 | 57,934,508 | ||||||
Net assets, end of period |
$ | 35,175,523 | $ | 34,047,877 | ||||
Units, beginning of period |
18,098.830 | 38,975.348 | ||||||
Issuance of Units |
11,938.031 | 2,747.546 | ||||||
Redemption of Units |
(6,348.401 | ) | (21,399.386 | ) | ||||
Units, end of period |
23,688.460 | 20,323.508 | ||||||
See accompanying notes to financial statements.
7
Table of Contents
QUADRIGA SUPERFUND, L.P. SERIES A
STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30,
(Unaudited)
STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30,
(Unaudited)
2009 | 2008 | |||||||
Cash flows from operating activities |
||||||||
Net increase (decrease) in net assets from operations |
$ | (9,230,230 | ) | $ | 7,822,374 | |||
Adjustments to reconcile net increase (decrease) in net assets from
operations to net cash provided by (used in) operating activities: |
||||||||
Changes in operating assets and liabilities: |
||||||||
Gross purchases of U.S. government securities |
(62,907,793 | ) | (120,334,035 | ) | ||||
Gross proceeds from sales of U.S. government securities |
80,158,355 | 143,314,323 | ||||||
Amortization of discounts and premiums |
27,642 | 725,369 | ||||||
Due from brokers |
(14,637,528 | ) | 2,091,441 | |||||
Due to affiliate |
(300,000 | ) | (133,276 | ) | ||||
Unrealized appreciation on open forward contracts |
(270,277 | ) | (22,432 | ) | ||||
Futures contracts purchased |
(1,644,681 | ) | 672,467 | |||||
Unrealized depreciation on open forward contracts |
243,065 | (655,851 | ) | |||||
Futures contracts sold |
115,526 | (61,653 | ) | |||||
Management fees payable |
(1,865 | ) | (38,888 | ) | ||||
Fees payable |
(15,484 | ) | (78,238 | ) | ||||
Net cash provided by (used in) operating activities |
(8,463,270 | ) | 33,301,601 | |||||
Cash flows from financing activities |
||||||||
Subscriptions, net of change in advance subscriptions |
20,138,149 | 4,768,309 | ||||||
Redemptions, net of redemptions payable |
(12,129,921 | ) | (37,678,144 | ) | ||||
Net cash provided by (used in) financing activities |
8,008,228 | (32,909,835 | ) | |||||
Net increase (decrease) in cash |
(455,042 | ) | 391,766 | |||||
Cash, beginning of period |
810,576 | 114,554 | ||||||
Cash, end of period |
$ | 355,534 | $ | 506,320 | ||||
Supplemental disclosure of non-cash financing activities |
||||||||
Redemptions payable |
$ | 289,382 | $ | 1,694,843 | ||||
See accompanying notes to financial statements.
8
Table of Contents
QUADRIGA SUPERFUND, L.P. SERIES B
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 2009 (Unaudited) and December 31, 2008
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 2009 (Unaudited) and December 31, 2008
September 30, 2009 | December 31, 2008 | |||||||
ASSETS |
||||||||
US Government securities, at fair value
(amortized costs of $23,329,592 and $54,825,911 as
of September 30, 2009, and December 31, 2008, respectively) |
$ | 23,329,592 | $ | 54,825,911 | ||||
Due from brokers |
30,074,902 | 5,961,708 | ||||||
Unrealized appreciation on open forward contracts |
762,354 | 44,878 | ||||||
Futures contracts sold |
| 407,977 | ||||||
Futures contracts purchased |
6,014,780 | 1,978,090 | ||||||
Cash |
1,270,008 | 668,701 | ||||||
Total assets |
61,451,636 | 63,887,265 | ||||||
LIABILITIES |
||||||||
Unrealized depreciation on open forward contracts |
745,068 | 163,504 | ||||||
Futures contracts sold |
150,942 | | ||||||
Redemptions payable |
807,363 | 2,767,509 | ||||||
Management fees payable |
93,183 | 98,291 | ||||||
Fees payable |
195,702 | 240,910 | ||||||
Total liabilities |
1,992,258 | 3,270,214 | ||||||
NET ASSETS |
$ | 59,459,378 | $ | 60,617,051 | ||||
Number of Units |
34,977.175 | 23,305.633 | ||||||
Net asset value per Unit |
$ | 1,699.95 | $ | 2,600.96 | ||||
See accompanying notes to financial statements.
9
Table of Contents
QUADRIGA SUPERFUND, L.P. SERIES B
CONDENSED SCHEDULE OF INVESTMENTS
September 30, 2009 (Unaudited)
CONDENSED SCHEDULE OF INVESTMENTS
September 30, 2009 (Unaudited)
Percentage of | ||||||||||||
Face Value | Net Assets | Fair Value | ||||||||||
Debt Securities United States, at fair value |
||||||||||||
United States Treasury Bills due November 27, 2009
(amortized cost $23,329,592), securities are held in
margin accounts as collateral for open futures and
forwards |
$ | 23,335,000 | 39.2 | % | $ | 23,329,592 | ||||||
Forward contracts, at fair value |
||||||||||||
Unrealized appreciation on forward contracts |
||||||||||||
Currency |
1.3 | 762,354 | ||||||||||
Total unrealized appreciation on forward contracts |
1.3 | 762,354 | ||||||||||
Unrealized depreciation on forward contracts |
||||||||||||
Currency |
(1.3 | ) | (745,068 | ) | ||||||||
Total unrealized depreciation on forward contracts |
(1.3 | ) | (745,068 | ) | ||||||||
Total forward contracts, at fair value |
0.0 | * | 17,286 | |||||||||
Futures contracts, at fair value |
||||||||||||
Futures contracts purchased |
||||||||||||
Currency |
2.4 | 1,419,474 | ||||||||||
Financial |
4.8 | 2,839,751 | ||||||||||
Food & Fiber |
0.4 | 265,502 | ||||||||||
Indices |
(0.0) | * | (23,962 | ) | ||||||||
Metals |
2.5 | 1,514,015 | ||||||||||
Total futures contracts purchased |
10.1 | 6,014,780 | ||||||||||
Futures contracts sold |
||||||||||||
Currency |
0.6 | 368,733 | ||||||||||
Energy |
(0.3 | ) | (159,275 | ) | ||||||||
Food & Fiber |
1.1 | 639,494 | ||||||||||
Indices |
0.2 | 109,193 | ||||||||||
Livestock |
0.2 | 139,470 | ||||||||||
Metals |
(2.0 | ) | (1,248,557 | ) | ||||||||
Total futures contracts sold |
(0.2 | ) | (150,942 | ) | ||||||||
Total futures contracts, at fair value |
9.9 | % | 5,863,838 | |||||||||
Futures and forward contracts by country composition |
||||||||||||
European Monetary Community |
2.1 | % | $ | 1,285,247 | ||||||||
Great Britain |
1.9 | 1,131,411 | ||||||||||
Japan |
3.9 | 2,307,253 | ||||||||||
United States |
2.1 | 1,232,868 | ||||||||||
Other |
(0.1 | ) | (75,655 | ) | ||||||||
Total futures and forward contracts by country |
9.9 | % | $ | 5,881,124 | ||||||||
* | Due to rounding |
See accompanying notes to financial statements.
10
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QUADRIGA SUPERFUND, L.P. SERIES B
CONDENSED SCHEDULE OF INVESTMENTS
December 31, 2008
CONDENSED SCHEDULE OF INVESTMENTS
December 31, 2008
Percentage of | ||||||||||||
Face Value | Net Assets | Fair Value | ||||||||||
Debt Securities United States, at fair value |
||||||||||||
United States Treasury Bills due February 26, 2009
(amortized cost $54,825,911), securities are held in
margin accounts as collateral for open futures and
forwards |
$ | 54,835,000 | 90.4 | % | $ | 54,825,911 | ||||||
Forward contracts, at fair value |
||||||||||||
Unrealized appreciation on forward contracts |
||||||||||||
Currency |
0.1 | 44,878 | ||||||||||
Total unrealized appreciation on forward contracts |
0.1 | 44,878 | ||||||||||
Unrealized depreciation on forward contracts |
||||||||||||
Currency |
(0.3 | ) | (163,504 | ) | ||||||||
Total unrealized depreciation on forward contracts |
(0.3 | ) | (163,504 | ) | ||||||||
Total forward contracts, at fair value |
(0.2 | ) | (118,626 | ) | ||||||||
Futures contracts, at fair value |
||||||||||||
Futures contracts purchased |
||||||||||||
Currency |
0.5 | 282,349 | ||||||||||
Financial |
2.5 | 1,535,102 | ||||||||||
Food & Fiber |
0.2 | 91,596 | ||||||||||
Indices |
0.1 | 69,043 | ||||||||||
Total futures contracts purchased |
3.3 | 1,978,090 | ||||||||||
Futures contracts sold |
||||||||||||
Currency |
0.2 | 101,335 | ||||||||||
Energy |
0.5 | 319,932 | ||||||||||
Financial |
(0.1 | ) | (30,335 | ) | ||||||||
Livestock |
0.1 | 64,110 | ||||||||||
Indices |
(0.1 | ) | (85,438 | ) | ||||||||
Food & Fiber |
(0.2 | ) | (144,632 | ) | ||||||||
Metals |
0.3 | 183,005 | ||||||||||
Total futures contracts sold |
0.7 | 407,977 | ||||||||||
Total futures contracts, at fair value |
4.0 | % | 2,386,067 | |||||||||
Futures and forward contracts by country composition |
||||||||||||
European Monetary Union |
0.7 | 425,341 | ||||||||||
Great Britain |
0.5 | 291,376 | ||||||||||
United States |
1.9 | 1,142,037 | ||||||||||
Other |
0.7 | 408,687 | ||||||||||
Total futures and forward contracts by country |
3.8 | % | $ | 2,267,441 | ||||||||
* | Due to rounding |
See accompanying notes to financial statements.
11
Table of Contents
QUADRIGA SUPERFUND, L.P. SERIES B
STATEMENTS OF OPERATIONS
(Unaudited)
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Investment income |
||||||||||||||||
Interest income |
$ | 11,475 | $ | 234,976 | $ | 59,119 | $ | 633,188 | ||||||||
Total income |
11,475 | 234,976 | 59,119 | 633,188 | ||||||||||||
Expenses |
||||||||||||||||
Selling commission |
565,705 | 514,910 | 1,825,381 | 1,382,252 | ||||||||||||
Management fee |
261,638 | 238,146 | 844,238 | 639,292 | ||||||||||||
Ongoing offering expenses |
141,426 | 128,727 | 456,345 | 345,563 | ||||||||||||
Operating expenses |
21,214 | 19,309 | 68,452 | 51,834 | ||||||||||||
Incentive fee |
| | 301,233 | 3,831,165 | ||||||||||||
Brokerage commissions |
460,024 | 294,619 | 1,145,959 | 874,431 | ||||||||||||
Other |
3,013 | 12,815 | 19,024 | 16,661 | ||||||||||||
Total expenses |
1,453,020 | 1,208,526 | 4,660,632 | 7,141,198 | ||||||||||||
Net investment loss |
(1,441,545 | ) | (973,550 | ) | (4,601,513 | ) | (6,508,010 | ) | ||||||||
Realized and unrealized gain
(loss) on investments |
||||||||||||||||
Net realized gain (loss) on futures
and forward contracts
|
(4,459,329 | ) | (6,774,348 | ) | (25,265,671 | ) | 8,513,880 | |||||||||
Net change in unrealized appreciation
(depreciation) on futures and
forward contracts |
4,264,688 | (4,851,385 | ) | 3,613,683 | 1,057,804 | |||||||||||
Net gain (loss) on investments |
(194,641 | ) | (11,625,733 | ) | (21,651,988 | ) | 9,571,684 | |||||||||
Net increase (decrease) in net assets
from operations |
$ | (1,636,186 | ) | $ | (12,599,283 | ) | $ | (26,253,501 | ) | $ | 3,063,674 | |||||
Net increase (decrease) in net assets
from operations per unit (based upon
weighted average number of units
outstanding during period) |
$ | (47.24 | ) | $ | (511.52 | ) | $ | (869.39 | ) | $ | 146.07 | |||||
Net increase (decrease) in net assets
from operations per unit (based upon
change in net asset value per unit
during period) |
$ | (53.76 | ) | $ | (540.12 | ) | $ | (901.01 | ) | $ | 278.51 | |||||
See accompanying notes to financial statements.
12
Table of Contents
QUADRIGA SUPERFUND, L.P. SERIES B
STATEMENTS OF CHANGES IN NET ASSETS
For the Nine Months Ended September 30,
(Unaudited)
STATEMENTS OF CHANGES IN NET ASSETS
For the Nine Months Ended September 30,
(Unaudited)
2009 | 2008 | |||||||
Increase (decrease) in net assets from operations |
||||||||
Net investment loss |
$ | (4,601,513 | ) | $ | (6,508,010 | ) | ||
Net realized gain (loss) on futures and forward contracts |
(25,265,671 | ) | 8,513,880 | |||||
Net change in unrealized appreciation on futures
and forward contracts |
3,613,683 | 1,057,804 | ||||||
Net increase (decrease) in net assets from operations |
(26,253,501 | ) | 3,063,674 | |||||
Capital share transactions |
||||||||
Issuance of Units |
39,218,868 | 30,269,792 | ||||||
Redemption of Units |
(14,123,040 | ) | (6,890,026 | ) | ||||
Net increase in net assets from capital share transactions |
25,095,828 | 23,379,766 | ||||||
Net increase (decrease) in net assets |
(1,157,673 | ) | 26,443,440 | |||||
Net assets, beginning of period |
60,617,051 | 25,855,147 | ||||||
Net assets, end of period |
$ | 59,459,378 | $ | 52,298,587 | ||||
Units, beginning of period |
23,305.633 | 14,568.812 | ||||||
Issuance of Units |
18,082.552 | 14,166.071 | ||||||
Redemption of Units |
(6,411.010 | ) | (3,263.085 | ) | ||||
Units, end of period |
34,977.175 | 25,471.798 | ||||||
See accompanying notes to financial statements.
13
Table of Contents
QUADRIGA SUPERFUND, L.P. SERIES B
STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30,
(Unaudited)
STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30,
(Unaudited)
2009 | 2008 | |||||||
Cash flows from operating activities |
||||||||
Net increase (decrease) in net assets from operations |
$ | (26,253,501 | ) | $ | 3,063,674 | |||
Adjustments to reconcile net increase (decrease) in net assets
from operations to net cash used in operating activities: |
||||||||
Changes in operating assets and liabilities: |
||||||||
Gross purchases of U.S. government securities |
(108,196,503 | ) | (122,002,215 | ) | ||||
Gross sales of U.S. government securities |
139,642,182 | 105,669,394 | ||||||
Amortization of discounts and premiums |
50,640 | 520,274 | ||||||
Due from brokers |
(24,113,194 | ) | (8,461,345 | ) | ||||
Due from affiliate |
| 133,276 | ||||||
Unrealized appreciation on open forward contracts |
(717,476 | ) | (459,962 | ) | ||||
Futures contracts purchased |
(4,036,690 | ) | 877,783 | |||||
Unrealized depreciation on open forward contracts |
581,564 | 43,220 | ||||||
Futures contracts sold |
558,919 | (1,518,845 | ) | |||||
Management fees payable |
(5,108 | ) | 39,315 | |||||
Fees payable |
(45,208 | ) | 192,526 | |||||
Net cash used in operating activities |
(22,534,375 | ) | (21,902,905 | ) | ||||
Cash flows from financing activities |
||||||||
Subscriptions, net of change in advance subscriptions |
39,218,868 | 30,269,792 | ||||||
Redemptions, net of redemptions payable |
(16,083,186 | ) | (7,985,906 | ) | ||||
Net cash provided by financing activities |
23,135,682 | 22,283,886 | ||||||
Net increase in cash |
601,307 | 380,981 | ||||||
Cash, beginning of period |
668,701 | 73,375 | ||||||
Cash, end of period |
$ | 1,270,008 | $ | 454,356 | ||||
Supplemental disclosure of noncash financing activities: |
||||||||
Redemptions payable |
$ | 807,363 | $ | 996,594 | ||||
See accompanying notes to financial statements.
14
Table of Contents
QUADRIGA SUPERFUND, L.P. SERIES A AND B
NOTES TO FINANCIAL STATEMENTS
September 30, 2009
(Unaudited)
NOTES TO FINANCIAL STATEMENTS
September 30, 2009
(Unaudited)
QUADRIGA SUPERFUND, L.P. SERIES A AND B
1. Nature of operations
Organization and Business
Quadriga Superfund, L.P., a Delaware Limited Partnership (the Fund), commenced operations on
November 5, 2002. The Fund was organized to trade speculatively in United States and international
commodity futures markets using a strategy developed by Superfund Capital Management, Inc., the
general partner and trading manager of the Fund (Superfund Capital Management). The Fund has
issued two series of units of limited partnership interest (Units), Series A and Series B (each a
Series). Series A and Series B are traded and managed the same way, with the exception of the
degree of leverage.
The term of the Fund shall continue until December 31, 2050, unless terminated earlier by Superfund
Capital Management or by operation of the law or a decline in the aggregate net assets of such
series to less than $500,000.
2. Basis of presentation and significant accounting policies
Basis of Presentation
The unaudited financial statements have been prepared in accordance with the rules and regulations
of the Securities and Exchange Commission (SEC) and accounting principles generally accepted in
the United States of America with respect to the Form 10-Q and reflect all adjustments which in the
opinion of management are normal and recurring, and which are necessary for a fair statement of the
results of interim periods presented. It is suggested that these financial statements be read in
conjunction with the financial statements and the related notes included in the Funds Annual
Report on Form 10-K for the year ended December 31, 2008. Certain reclassifications of the December
31, 2008, data pertaining to the Statements of Assets and Liabilities have been made to conform to
the September 30, 2009, presentation.
Valuation of Investments in Futures Contracts, Forward Contracts, and U.S Treasury Bills
All commodity interests (including derivative financial instruments and derivative commodity
instruments) are used for trading purposes. The commodity interests are recorded on a trade date
basis and open contracts are recorded in the statements of assets and liabilities at fair value
based upon market quotes on the last business day of the period. Exchange-traded futures contracts
are valued at settlement prices published by the recognized exchange. Any spot and forward foreign
currency contracts held by the Fund will be valued at published settlement prices or at dealers
quotes. The Fund uses the amortized cost method for valuing the U.S. Treasury Bills due to the
short term nature of such investments; accordingly, the cost of securities plus accreted discount,
or minus amortized premium approximates fair value.
Translation of Foreign Currency
Assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at
the period end exchange rates. Purchases and sales of investments and income and expenses that are
denominated in foreign currencies are translated into U.S. dollar amounts on the transaction date.
Adjustments arising from foreign currency transactions are reflected in the statements of
operations.
The Fund does not isolate that portion of the results of operations arising from the effect of
changes in foreign exchange rates on investments from fluctuations from changes in market prices of
investments held. Such fluctuations are included in net gain (loss) on investments in the
statements of operations.
15
Table of Contents
Investment Transactions, Investment Income and Expenses
Investment transactions are accounted for on a trade-date basis. Interest income and expenses are
recognized on the accrual basis.
Income Taxes
The Fund does not record a provision for U.S. income taxes because the partners report their share
of the Funds income or loss on their returns. The financial statements reflect the Funds
transactions without adjustment, if any, required for income tax purposes.
Superfund Capital Management has evaluated the application of Accounting Standards Codification
(ASC) 740 to the Fund, and has determined whether or not there are uncertain tax positions that
require financial statement recognition. Based on this evaluation, the Fund has determined no
reserves for uncertain tax position are required to be recorded as a result of the application of
ASC 740. The Fund is not aware of any tax positions for which it is reasonably possible that the
total amounts of unrecognized tax benefits will change materially in the next twelve months. As a
result, no income tax liability or expense has been recorded in the accompanying financial
statements. The 2006 through 2009 tax years generally remain subject to examination by the U.S.
federal and most state tax authorities.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted
in the United States of America requires Superfund Capital Management to make estimates and
assumptions that affect the assets, liabilities, income and expenses, as well as the other
disclosures in the financial statements. Actual results could differ from those estimates.
Recently Issued Accounting Pronouncements
ASC 105.10.05
In June 2009, the Financial Accounting Standards Board (FASB) issued FASB Accounting Standards
Codification (ASC) 105.10.05, Generally Accepted Accounting Principles (ASC 105.10.05). ASC
105.10.05 establishes the FASB ASC as the single source of authoritative generally accepted
accounting principles (GAAP). Pursuant to the provisions of ASC 105.10.05, the Fund has updated
references to GAAP in its financial statements issued subsequent to September 15, 2009. The
adoption of ASC 105.10.05 did not have any impact on the Funds results of operations, financial
condition or cash flows.
ASC 810
In June 2009, FASB issued ASC 810, Consolidation (ASC 810). ASC 810 changes how a company
determines when an entity that is insufficiently capitalized or is not controlled through voting
rights should be consolidated. The determination of whether a company is required to consolidate an
entity is based on an entitys purpose and design and a companys ability to direct the activities
of the entity that most significantly impact the entitys economic performance. ASC 810 is
effective for annual reporting periods ending after November 15, 2009. Superfund Capital Management
is currently evaluating the impact of ASC 810 on the Funds financial statements.
3. Fair Value Measurements
The Fund follows ASC 820, Fair Value Measurements. ASC 820 establishes a fair value hierarchy that
prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the
highest priority to unadjusted quoted prices in active markets for identical assets or liabilities
(level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The
three levels of the fair value hierarchy under ASC 820 are described below:
16
Table of Contents
Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | ||
Level 2 | Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly; | ||
Level 3 | Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. |
A financial instruments level within the fair value hierarchy is based on the lowest level of any
input that is significant to the fair value measurement. In determining fair value, the Fund
separates its financial instruments into two categories: U.S. government securities and derivative
contracts.
U.S. Government Securities. The Funds only market exposure in instruments held other than for
trading is in its U.S. Treasury Bill portfolio. As the Fund uses the amortized cost method for
valuing its U.S. Treasury Bill portfolio, which approximates fair value, this portfolio is
classified within level 2 of the fair value hierarchy.
Derivative Contracts. Derivative contracts can be exchange-traded or over-the-counter (OTC).
Exchange-traded derivatives typically fall within level 1 or level 2 of the fair value hierarchy
depending on whether they are deemed to be actively traded or not. The Fund has exposure to
exchange-traded derivative contracts through the Funds trading of exchange-traded futures
contracts. The Funds exchange-traded futures contract positions are valued daily at settlement
prices published by the applicable exchanges. In such cases, provided they are deemed to be
actively traded, exchange-traded derivatives are classified within level 1 of the fair value
hierarchy. Less actively traded exchange-traded derivatives fall within level 2 of the fair value
hierarchy.
OTC derivatives are valued using market transactions and other market evidence whenever possible,
including market-based inputs to models, model calibration to market-clearing transactions, broker
or dealer quotations, or alternative pricing sources with reasonable levels of price transparency.
Where models are used, the selection of a particular model to value an OTC derivative depends upon
the contractual terms of, and specific risks inherent in, the instrument as well as the
availability of pricing information in the market. For OTC derivatives that trade in liquid
markets, such as generic forwards and swaps, model inputs can generally be verified and model
selection does not involve significant management judgment. The OTC derivatives held by the Fund
include forwards and swaps. Spot and forward foreign currency contracts held by the Fund are
valued at published daily settlement prices or at dealers quotes. The Funds forward and swap
positions are typically classified within level 2 of the fair value hierarchy. As of and during
the quarter ended September 30, 2009, the Fund held no derivative contracts valued using level 3
inputs.
Certain OTC derivatives trade in less liquid markets with limited pricing information, and the
determination of fair value for these derivatives is inherently more difficult. Such instruments
are classified within level 3 of the fair value hierarchy. Where the Fund does not have
corroborating market evidence to support significant model inputs and cannot verify the model to
market transactions, transaction price is initially used as the best estimate of fair value.
Accordingly, when a pricing model is used to value such an instrument, the model is adjusted so
that the model value at inception equals the transaction price. The valuations of these less liquid
OTC derivatives are typically based on level 1 and/or level 2 inputs that can be observed in the
market, as well as unobservable level 3 inputs. Subsequent to initial recognition, the Fund updates
the level 1 and level 2 inputs to reflect observable market changes, with resulting gains and
losses reflected within level 3. Level 3 inputs are only changed when corroborated by evidence such
as similar market transactions, third-party pricing services and/or broker or dealer quotations, or
other empirical market data. In circumstances where the Fund cannot verify the model value to
market transactions, it is possible that a different valuation model could produce a materially
different estimate of fair value. The Fund attempts to avoid holding less liquid OTC derivatives.
However, once held, the market for any particular derivative contract could become less liquid
during the holding period.
The following tables summarize the valuation of the Funds assets and liabilities by the ASC 820
fair value hierarchy as of December 31, 2008, and September 30, 2009:
17
Table of Contents
Series A:
Balance | ||||||||||||||||
September 30, 2009 | Level 1 | Level 2 | Level 3 | |||||||||||||
ASSETS |
||||||||||||||||
U.S. Government
securities |
$ | 14,216,725 | $ | | $ | 14,216,725 | $ | | ||||||||
Unrealized
appreciation on
open forward
contracts |
281,415 | | 281,415 | | ||||||||||||
Futures contracts
purchased |
2,380,210 | 2,380,210 | | | ||||||||||||
Total Assets
Measured at Fair
Value |
$ | 16,878,350 | $ | 2,380,210 | $ | 14,498,140 | $ | | ||||||||
LIABILITIES |
||||||||||||||||
Unrealized depreciation on
open forward contracts |
$ | 286,401 | $ | | $ | 286,401 | $ | | ||||||||
Futures contracts sold |
6,196 | 6,196 | | | ||||||||||||
Total Liabilities Measured
at Fair Value |
$ | 292,597 | $ | 6,196 | $ | 286,401 | $ | | ||||||||
Series B:
Balance | ||||||||||||||||
September 30, 2009 | Level 1 | Level 2 | Level 3 | |||||||||||||
ASSETS |
||||||||||||||||
U.S. Government
securities |
$ | 23,329,592 | $ | | $ | 23,329,592 | $ | | ||||||||
Unrealized
appreciation on
open forward
contracts |
762,354 | | 762,354 | | ||||||||||||
Futures contracts
purchased |
6,014,780 | 6,014,780 | | | ||||||||||||
Total Assets
Measured at Fair
Value |
$ | 30,106,726 | $ | 6,014,780 | $ | 24,091,946 | $ | | ||||||||
18
Table of Contents
Balance | ||||||||||||||||
September 30, 2009 | Level 1 | Level 2 | Level 3 | |||||||||||||
LIABILITIES |
||||||||||||||||
Unrealized
depreciation on
open forward
contracts |
$ | 745,068 | $ | | $ | 745,068 | $ | | ||||||||
Futures contracts
sold |
150,942 | 150,942 | | | ||||||||||||
Total Liabilities
Measured at Fair
Value |
$ | 896,010 | $ | 150,942 | $ | 745,068 | $ | | ||||||||
Series A:
Balance | ||||||||||||||||
December 31, 2008 | Level 1 | Level 2 | Level 3 | |||||||||||||
ASSETS |
||||||||||||||||
U.S. Government
securities |
$ | 31,494,929 | $ | | $ | 31,494,929 | $ | | ||||||||
Unrealized
appreciation on
open forward
contracts |
11,138 | | 11,138 | | ||||||||||||
Futures contracts
purchased |
735,529 | 735,529 | | | ||||||||||||
Futures contracts
sold |
109,330 | 109,330 | ||||||||||||||
Total Assets
Measured at Fair
Value |
$ | 32,350,926 | $ | 844,859 | $ | 31,506,067 | $ | | ||||||||
LIABILITIES |
||||||||||||||||
Unrealized
depreciation on
open forward
contracts |
$ | 43,336 | $ | | $ | 43,336 | $ | | ||||||||
Total Liabilities
Measured at Fair
Value |
$ | 43,336 | $ | | $ | 43,336 | $ | | ||||||||
19
Table of Contents
Series B:
Balance | ||||||||||||||||
December 31, 2008 | Level 1 | Level 2 | Level 3 | |||||||||||||
ASSETS |
||||||||||||||||
U.S. Government
securities |
$ | 54,825,911 | $ | | $ | 54,825,911 | $ | | ||||||||
Unrealized
appreciation on open
forward contracts |
44,878 | | 44,878 | | ||||||||||||
Futures contracts
purchased |
1,978,090 | 1,978,090 | | | ||||||||||||
Futures contracts sold |
407,977 | 407,977 | ||||||||||||||
Total Assets Measured
at Fair Value |
$ | 57,256,856 | $ | 2,386,067 | $ | 54,870,789 | $ | | ||||||||
LIABILITIES |
||||||||||||||||
Unrealized
depreciation on open
forward contracts |
$ | 163,504 | $ | | $ | 163,504 | $ | | ||||||||
Total Liabilities
Measured at Fair
Value |
$ | 163,504 | $ | | $ | 163,504 | $ | | ||||||||
4. Disclosure of derivative instruments and hedging activities
The Fund follows ASC 815, Disclosures about Derivative Instruments and Hedging Activities (ASC
815). The provisions of ASC 815 are effective for fiscal years beginning after November 15, 2008.
ASC 815 is intended to improve financial reporting for derivative instruments by requiring enhanced
disclosure that enables investors to understand how and why an entity uses derivatives, how
derivatives are accounted for, and how derivative instruments affect an entitys results of
operations and financial position.
Derivative instruments held by the Fund do not qualify as derivative instruments held as hedging
instruments, as defined in ASC 815. Instead, the Fund includes derivative instruments in its
trading activity. Per the requirements of ASC 815, the Fund discloses the gains and losses on its
trading activities for both derivative and nonderivative instruments in the Statement of Operations
for each Series.
The Fund engages in the speculative trading of forward contracts in currency and futures contracts
in a wide range of commodities, including equity markets, interest rates, food and fiber, energy,
livestock and metals. ASC 815 requires entities to recognize all derivatives instruments as either
assets or liabilities at fair value in the statement of financial position. Investments in forward
contracts and commodity futures contracts are recorded in the Statements of Assets and Liabilities
as unrealized appreciation or depreciation on open forward contracts and futures contracts
purchased and futures contracts sold. Since the derivatives held or sold by the Fund are for
speculative trading purposes, the derivative instruments are not designated as hedging instruments
under the provisions of ASC 815. Accordingly, all realized gains and losses, as well as any change
in net unrealized gains or losses on open positions from the preceding period, are recognized as
part of the Funds trading profits and losses in the Statements of Operations.
20
Table of Contents
Superfund Capital Management believes futures and forwards trading activity expressed as a
percentage of net assets is indicative of trading activity. Information concerning the fair value
of the Funds derivatives held long or sold short, including information related to the volume of
the Funds derivative activity, is as follows:
Series A:
As of September 30, 2009 | ||||||||||||||||||||||||||||||||||||
Long Positions Gross Unrealized | Short Position Gross Unrealized | |||||||||||||||||||||||||||||||||||
% of | % of | % of | % of | Net Unrealized | ||||||||||||||||||||||||||||||||
Net | Net | Net | Net | Gain (Loss) on | ||||||||||||||||||||||||||||||||
Gains | Assets | Losses | Assets | Gains | assets | Losses | Assets | Open Positions | ||||||||||||||||||||||||||||
Foreign Exchange |
$ | 245,600 | 0.7 | $ | (9,324 | ) | (0.0) | * | $ | 35,815 | 0.1 | $ | (277,077 | ) | (0.8 | ) | $ | (4,986 | ) | |||||||||||||||||
Currency |
564,185 | 1.6 | (112 | ) | (0.0) | * | 158,588 | 0.5 | (11,051 | ) | (0.0) | * | 711,610 | |||||||||||||||||||||||
Financial |
1,220,494 | 3.5 | (95,603 | ) | (0.3 | ) | | | | | 1,124,891 | |||||||||||||||||||||||||
Food & Fiber |
107,844 | 0.3 | (6,945 | ) | (0.0) | * | 276,827 | 0.8 | (35,611 | ) | (0.1 | ) | 342,115 | |||||||||||||||||||||||
Indices |
19,620 | 0.1 | (32,093 | ) | (0.1 | ) | 54,183 | 0.2 | (11,160 | ) | (0.0) | * | 30,550 | |||||||||||||||||||||||
Metals |
643,700 | 1.8 | (40,880 | ) | (0.1 | ) | | | (443,472 | ) | (1.3 | ) | 159,348 | |||||||||||||||||||||||
Livestock |
| | | | 56,650 | 0.2 | (1,440 | ) | (0.0) | * | 55,210 | |||||||||||||||||||||||||
Energy |
| | | | 195,033 | 0.6 | (244,743 | ) | (0.7 | ) | (49,710 | ) | ||||||||||||||||||||||||
Totals |
$ | 2,801,443 | 8.0 | $ | (184,957 | ) | (0.5 | ) | $ | 777,096 | 2.4 | $ | (1,024,554 | ) | (2.9 | ) | $ | (2,369,028 | ) | |||||||||||||||||
* | Due to rounding |
Series A trading results by market sector
For the three months ended September 30, 2009 | ||||||||||||
Change in Net | ||||||||||||
Net Realized | Unrealized | Net Trading | ||||||||||
Gain (Losses) | Gains (Losses) | Gains (Losses) | ||||||||||
Foreign Exchange |
$ | (403,423 | ) | $ | 76,366 | $ | (327,057 | ) | ||||
Currency |
(761,894 | ) | 733,762 | (28,132 | ) | |||||||
Financial |
657,336 | 408,426 | 1,065,762 | |||||||||
Food & Fiber |
104,660 | 9,777 | 114,437 | |||||||||
Indices |
(1,176,553 | ) | 247,613 | (928,940 | ) | |||||||
Metals |
(800,340 | ) | 643,882 | (156,458 | ) | |||||||
Livestock |
205,680 | (68,350 | ) | 137,330 | ||||||||
Energy |
601,703 | (303,077 | ) | 298,626 | ||||||||
Total net trading gains (losses) |
$ | (1,572,831 | ) | $ | 1,748,399 | $ | 175,568 | |||||
For the nine months ended September 30, 2009 | ||||||||||||
Change in Net | ||||||||||||
Net Realized | Unrealized | Net Trading | ||||||||||
Gain (Losses) | Gains (Losses) | Gains (Losses) | ||||||||||
Foreign Exchange |
$ | (1,103,932 | ) | $ | 27,212 | $ | (1,076,720 | ) | ||||
Currency |
(1,836,866 | ) | 572,449 | (1,264,417 | ) | |||||||
Financial |
(341,791 | ) | 615,063 | 273,272 | ||||||||
Food & Fiber |
(578,613 | ) | 349,080 | (229,533 | ) | |||||||
Indices |
(1,781,985 | ) | 14,781 | (1,767,204 | ) | |||||||
Metals |
(1,320,104 | ) | 84,213 | (1,235,891 | ) | |||||||
Livestock |
185,040 | 31,810 | 216,850 | |||||||||
Energy |
(1,788,672 | ) | (138,241 | ) | (1,926,913 | ) | ||||||
Total net trading gains (losses) |
$ | (8,566,923 | ) | $ | 1,556,367 | $ | (7,010,556 | ) | ||||
21
Table of Contents
Series B:
As of September 30, 2009 | ||||||||||||||||||||||||||||||||||||
Long Positions Gross Unrealized | Short Position Gross Unrealized | |||||||||||||||||||||||||||||||||||
Net | ||||||||||||||||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||||||||||||||||
% of | % of | % of | % of | Gain (Loss) | ||||||||||||||||||||||||||||||||
Net | Net | Net | Net | on Open | ||||||||||||||||||||||||||||||||
Gains | Assets | Losses | Assets | Gains | assets | Losses | Assets | Positions | ||||||||||||||||||||||||||||
Foreign
Exchange |
$ | 667,147 | 1.1 | $ | (28,146 | ) | (0.0) | * | $ | 95,207 | 0.2 | $ | (716,922 | ) | (1.2 | ) | $ | 17,286 | ||||||||||||||||||
Currency |
1,420,136 | 2.4 | (662 | ) | (0.0) | * | 397,463 | 0.7 | (28,730 | ) | (0.0) | * | 1,788,207 | |||||||||||||||||||||||
Financial |
3,084,631 | 5.2 | (244,880 | ) | (0.4 | ) | | | | | 2,839,751 | |||||||||||||||||||||||||
Food & Fiber |
285,632 | 0.5 | (20,130 | ) | (0.0) | * | 728,163 | 1.2 | (88,669 | ) | (0.1 | ) | 904,996 | |||||||||||||||||||||||
Indices |
55,046 | 0.1 | (79,008 | ) | (0.1 | ) | 141,669 | 0.2 | (32,476 | ) | (0.1 | ) | 85,231 | |||||||||||||||||||||||
Metals |
1,619,070 | 2.7 | (105,055 | ) | (0.2 | ) | | | (1,248,557 | ) | (2.1 | ) | 265,458 | |||||||||||||||||||||||
Livestock |
| | | | 141,120 | 0.2 | (1,650 | ) | (0.0) | * | 139,470 | |||||||||||||||||||||||||
Energy |
| | | | 528,568 | 0.9 | (687,843 | ) | (1.2 | ) | (159,275 | ) | ||||||||||||||||||||||||
Totals |
$ | 7,131,662 | 12.0 | $ | (477,881 | ) | (0.7 | ) | $ | 2,032,190 | 3.4 | $ | (2,804,847 | ) | (4.7 | ) | $ | 5,881,124 | ||||||||||||||||||
* | Due to rounding |
Series B trading results by market sector
For the three months ended September 30, 2009 | ||||||||||||
Change in Net | ||||||||||||
Net Realized | Unrealized | Net Trading | ||||||||||
Gain (Losses) | Gains (Losses) | Gains (Losses) | ||||||||||
Foreign Exchange |
$ | (1,093,989 | ) | $ | 235,703 | $ | (858,286 | ) | ||||
Currency |
(2,030,970 | ) | 1,844,372 | (186,598 | ) | |||||||
Financial |
1,713,401 | 946,775 | 2,660,176 | |||||||||
Food & Fiber |
272,848 | 26,738 | 299,586 | |||||||||
Indices |
(3,164,392 | ) | 671,663 | (2,492,729 | ) | |||||||
Metals |
(2,148,270 | ) | 1,554,573 | (593,697 | ) | |||||||
Livestock |
529,620 | (183,800 | ) | 345,820 | ||||||||
Energy |
1,462,423 | (831,336 | ) | 631,087 | ||||||||
Total net trading gains (losses) |
$ | (4,459,329 | ) | $ | 4,264,688 | $ | (194,641 | ) | ||||
For the nine months ended September 30, 2009 | ||||||||||||
Change in Net | ||||||||||||
Net Realized | Unrealized | Net Trading | ||||||||||
Gain (Losses) | Gains (Losses) | Gains (Losses) | ||||||||||
Foreign Exchange |
$ | (3,376,565 | ) | $ | 135,912 | $ | (3,240,653 | ) | ||||
Currency |
(5,145,643 | ) | 1,404,523 | (3,741,120 | ) | |||||||
Financial |
(873,957 | ) | 1,334,984 | 461,027 | ||||||||
Food & Fiber |
(1,850,629 | ) | 958,032 | (892,597 | ) | |||||||
Indices |
(5,281,516 | ) | 101,626 | (5,179,890 | ) | |||||||
Metals |
(3,973,282 | ) | 82,453 | (3,890,829 | ) | |||||||
Livestock |
500,040 | 75,360 | 575,400 | |||||||||
Energy |
(5,264,119 | ) | (479,207 | ) | (5,743,326 | ) | ||||||
Total net trading gains (losses) |
$ | (25,265,671 | ) | $ | 3,613,683 | $ | (21,651,988 | ) | ||||
22
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5. Due from/to brokers
Due from brokers consists of proceeds from securities sold. Amounts due from brokers may be
restricted to the extent that they serve as deposits for securities sold short. Amounts due to
brokers, if any, represent margin borrowings that are collateralized by certain securities.
In the normal course of business, all of the Funds marketable securities transactions, money
balances and marketable security positions are transacted with brokers. The Fund is subject to
credit risk to the extent any broker with whom it conducts business is unable to fulfill
contractual obligations on its behalf. Superfund Capital Management monitors the financial
condition of such brokers and does not anticipate any losses from these counterparties.
6. Allocation of net profits and losses
In
accordance with the Funds Third Amended and Restated Limited Partnership Agreement (the
Limited Partnership Agreement), net profits and losses of the Fund are allocated to partners
according to their respective interests in the Fund as of the beginning of each month.
Advance subscriptions represent cash received prior to the balance sheet date for subscriptions of
the subsequent month and do not participate in the earnings of the Fund until the following month.
7. Related party transactions
Superfund Capital Management shall be paid a management fee equal to one-twelfth of 1.85% of month
end net assets (1.85% per annum), ongoing offering expenses equal to one-twelfth of 1% of month end
net assets (1% per annum), not to exceed the amount of actual expenses incurred, and monthly
operating expenses equal to one-twelfth of 0.15% of month end net assets (0.15% per annum). In
accordance with the Prospectus dated February 9, 2009, included within the Registration Statement
on Form S-1 (File No. 333-136804 as subsequently supplemented), Superfund USA, Inc., an entity
related to Superfund Capital Management by common ownership, shall be paid selling commissions
equal to 4% of the month-end net asset value per Unit (one-twelfth of 4% per month). However, the
maximum cumulative selling commission per Unit is limited to 10% of the initial public offering
price of such Unit.
Superfund Capital Management will also be paid a monthly performance fee equal to 25% of the new
appreciation without respect to interest income. Trading losses will be carried forward and no
further performance fee may be paid until the prior losses have been recovered.
8. Financial highlights
Financial highlights for the period January 1 through September 30 are as follows:
2009 | 2008 | |||||||||||||||
Series A | Series B | Series A | Series B | |||||||||||||
Total return before incentive fees* |
(23.2 | )% | (34.3 | )% | 18.2 | % | 25.3 | % | ||||||||
Incentive fees* |
0.0 | % | 0.03 | % | 5.5 | % | 9.6 | % | ||||||||
Total return after incentive fees* |
(23.2 | )% | (34.6 | )% | 12.7 | % | 15.7 | % | ||||||||
23
Table of Contents
2009 | 2008 | |||||||||||||||
Series A | Series B | Series A | Series B | |||||||||||||
Ratios to average partners capital ** |
||||||||||||||||
Operating expenses before incentive fees |
8.6 | % | 9.5 | % | 8.6 | % | 10.2 | % | ||||||||
Incentive fees |
0.0 | % | 0.7 | % | 3.8 | % | 8.8 | % | ||||||||
Total expenses |
8.6 | % | 10.2 | % | 12.4 | % | 19.0 | % | ||||||||
Net investment loss before incentive fees |
(8.5 | )% | (9.4 | )% | (6.3 | )% | (8.2 | )% | ||||||||
Net asset value per unit, beginning of period |
$ | 1,932.30 | 2,600.96 | $ | 1,486.44 | $ | 1,774.69 | |||||||||
Net investment loss |
(106.20 | ) | (154.92 | ) | (147.95 | ) | (309.47 | ) | ||||||||
Net gain (loss) on investments |
(341.18 | ) | (746.09 | ) | 336.81 | 587.98 | ||||||||||
Net asset value per unit, end of period |
$ | 1,484.92 | $ | 1,699.95 | $ | 1,675.30 | $ | 2,053.20 | ||||||||
* | Not annualized | |
** | Annualized, except for incentive fees |
Financial highlights for the period July 1 through September 30 are as follows:
2009 | 2008 | |||||||||||||||
Series A | Series B | Series A | Series B | |||||||||||||
Total return before incentive fees* |
(1.9 | )% | (3.1 | )% | (13.9 | )% | (20.8 | )% | ||||||||
Incentive fees* |
0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||
Total return after incentive fees* |
(1.9 | )% | (3.1 | )% | (13.9 | )% | (20.8 | )% | ||||||||
Ratios to average partners capital ** |
||||||||||||||||
Operating expenses before incentive fees |
9.1 | % | 10.2 | % | 8.2 | % | 9.1 | % | ||||||||
Incentive fees |
0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||
Total expenses |
9.1 | % | 10.2 | % | 8.2 | % | 9.1 | % | ||||||||
Net investment loss before incentive fees |
(9.0 | )% | (10.2 | )% | (6.4 | )% | (7.3 | )% | ||||||||
Net asset value per unit, beginning of period |
$ | 1,514.39 | $ | 1,753.71 | $ | 1,945.95 | $ | 2,593.32 | ||||||||
Net investment loss |
(33.14 | ) | (42.38 | ) | (28.05 | ) | (39.52 | ) | ||||||||
Net loss on investments |
3.67 | (11.38 | ) | (242.60 | ) | (500.60 | ) | |||||||||
Net asset value per unit, end of period |
$ | 1,484.92 | $ | 1,699.95 | $ | 1,675.30 | $ | 2,053.20 | ||||||||
* | Not annualized | |
** | Annualized, except for incentive fees |
Financial highlights are calculated for each series taken as a whole. An individual partners
return, per unit data, and ratios may vary based on the timing of capital transactions.
9. Financial instrument risk
In the normal course of its business, the Fund is party to financial instruments with off-balance
sheet risk, including derivative financial instruments and derivative commodity instruments. The
term off balance sheet risk refers to an unrecorded potential liability that, even though it does
not appear on the balance sheet, may result in a future obligation or loss. These financial
instruments may include forwards, futures and options, whose values are based upon an underlying
asset, index, or reference rate, and generally represent future commitments to exchange currencies
or cash flows, to purchase or sell other financial instruments at specific terms at specific future
dates, or, in the case of derivative commodity instruments, to have a reasonable possibility to be
settled in cash, through physical delivery or with another financial instrument. These instruments
may be traded on an exchange or OTC. Exchange- traded instruments are standardized and include
futures and certain option contracts. OTC contracts are negotiated
24
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between contracting parties and
include forwards and certain options. Each of these instruments is subject to various risks similar
to those related to the underlying financial instruments including market and credit risk. In
general, the risks associated with OTC contracts are greater than those associated with
exchange-traded instruments because of the greater risk of default by the counterparty to an OTC
contract.
For Series A, gross unrealized gains and losses related to exchange traded futures were $3,297,124
and ($923,110), respectively, and gross unrealized gains and losses related to non-exchange traded
forwards were $281,415 and ($286,401), respectively, at September 30, 2009.
For Series B, gross unrealized gains and losses related to exchange traded futures were $8,401,498
and ($2,537,660), respectively, and gross unrealized gains and losses related to non-exchange
traded forwards were $762,354 and ($745,068), respectively, at September 30, 2009.
Market risk is the potential for changes in the value of the financial instruments traded by the
Fund due to market changes, including interest and foreign exchange rate movements and fluctuations
in commodity or security prices. In entering into these contracts, there exists a market risk that
such contracts may be significantly influenced by conditions, such as interest rate volatility,
resulting in such contracts being less valuable. If the markets should move against all of the
futures interest positions at the same time, and Superfund Capital Management was unable to offset
such positions, the Fund could experience substantial losses.
Credit risk is the possibility that a loss may occur due to the failure of a counterparty to
perform according to the terms of a contract. Credit risk with respect to exchange-traded
instruments is reduced to the extent that an exchange or clearing organization acts as a
counterparty to the transactions. The Funds risk of loss in the event of counterparty default is
typically limited to the amounts recognized in the statements of assets and liabilities and not
represented by the contract or notional amounts of the instruments. As the Funds assets are held
in segregated accounts with futures commission merchants, the Fund has credit risk and
concentration risk. The Funds futures commission merchants are currently ADM Investor Services,
Inc., Barclays Capital Inc., Newedge Alternative Strategies, Inc., and Rosenthal Collins Group LLC.
Superfund Capital Management monitors and controls the Funds risk exposure on a daily basis
through financial, credit and risk management monitoring systems, and accordingly believes that it
has effective procedures for evaluating and limiting the credit and market risks to which the Fund
is subject. These monitoring systems allow Superfund Capital Management to statistically analyze
actual trading results with risk adjusted performance indicators and correlation statistics. In
addition, on-line monitoring systems provide account analysis of futures and forward positions by
sector, margin requirements, gain and loss transactions, and collateral positions.
The majority of these futures and forwards mature within one year of September 30, 2009. However,
due to the nature of the Funds business, these instruments may not be held to maturity.
10. Subscriptions and redemptions
Investors must submit subscriptions at least five business days prior to the applicable month-end
closing date and they will be accepted once payments are received and cleared. All subscriptions
funds are required to be promptly transmitted to HSBC Bank USA, as escrow agent. Subscriptions
must be accepted or rejected by Superfund Capital Management within five business days of receipt,
and the settlement date for the deposit of subscription funds in escrow must be within five
business days of acceptance. No fees or costs will be assessed on any subscription while held in
escrow, irrespective of whether the subscription is accepted or subscription funds returned.
A limited partner of a Series may request any or all of his investment in such Series be redeemed
by such Series at the net asset value of a Unit within such Series as of the end of the month,
subject to a minimum redemption of $1,000 and subject further to such limited partner having an
investment in such Series, after giving effect to the requested redemption, at least equal to the
minimum initial investment amount of $5,000. Limited partners must transmit a written request of
such redemption to Superfund Capital Management not less than five business days prior to the end
of the month (or such shorter period as permitted by Superfund Capital Management) as of which
redemption is to be effective. Redemptions will generally be paid within 20 days after the
effective date of the redemption. However, in special circumstances, including, but not limited
to, inability to liquidate dealers positions as of a redemption date or default or delay in
payments due to each Series from clearing brokers, banks or other persons or
25
Table of Contents
entities, each Series
may in turn delay payment to persons requesting redemption of the proportionate part of the net
assets of each Series represented by the sums that are the subject of such default or delay. The
Funds prospectus provides if the net asset value per Unit within a Series as of the end of any
business day declines by 50% or more from either the prior year-end or the prior month-end Unit
value of such Series, Superfund Capital Management will suspend trading activities, notify all
Limited Partners within such Series of the relevant facts within seven business days and declare a
special redemption period.
11. Subsequent events
Superfund Capital Management has evaluated the impact of all subsequent events on the Fund through
November 16, 2009, the date the financial statements were issued, and has determined that there
were no subsequent events requiring recognition or disclosure in the financial statements other
than the following disclosure:
As discussed in footnote 10, if the net asset value per Unit within a Series as of the end of
any business day declines by 50% or more from either the prior year-end or the prior month-end
Unit value of such Series, Superfund Capital Management will suspend trading activities, notify
all Limited Partners within such Series of the relevant facts within seven business day and
declare a special redemption period. Superfund Capital Management estimated that as of November
16, 2009, the net asset value per unit was $1,536 representing a
decline of 40.94% since the
prior year-end.
ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
INTRODUCTION
The Fund commenced the offering of its Units on October 22, 2002. The initial offering terminated
on October 31, 2002, and the Fund commenced operations on November 5, 2002. The continuing
offering period commenced at the termination of the initial offering period and is ongoing. For
the quarter ended September 30, 2009, subscriptions totaling $14,954,847 have been accepted and
redemptions over the same period totaled $3,659,174.
LIQUIDITY
Most United States commodity exchanges limit fluctuations in futures contracts prices during a
single day by regulations referred to as daily price fluctuation limits or daily limits.
During a single trading day, no trades may be executed at prices beyond the daily limit. This may
affect the Funds ability to initiate new positions or close existing ones or may prevent it from
having orders executed. Futures prices have occasionally moved the daily limit for several
consecutive days with little or no trading. Similar occurrences could prevent the Fund from
promptly liquidating unfavorable positions and subject the Fund to substantial losses, which could
exceed the margin initially committed to such trades. In addition, even if futures prices have not
moved the daily limit, the Fund may not be able to execute futures trades at favorable prices if
little trading in such contracts is taking place.
Trading in forward contracts introduces a possible further impact on liquidity. Because such
contracts are executed off exchange between private parties, the time required to offset or
unwind these positions may be greater than that for regulated instruments. This potential delay
could be exacerbated to the extent a counterparty is not a United States person.
Other than these limitations on liquidity, which are inherent in the Funds futures trading
operations, the Funds assets are expected to be highly liquid.
CAPITAL RESOURCES
The Fund will raise additional capital only through the sale of Units offered pursuant to the
continuing offering and does not intend to raise any capital through borrowings. Due to the nature
of the Funds business, it will make no capital expenditures and will have no capital assets which
are not operating capital or assets.
26
Table of Contents
RESULTS OF OPERATIONS
Three Months ended September 30, 2009
Series A:
Net results for the quarter ended September 30, 2009, were a loss of 1.95% in net asset value
compared to the preceding quarter. In this period, Series A experienced a net decrease in net
assets from operations of $590,948. This loss consisted of interest income of $7,733, trading
gains of $175,568, and total expenses of $774,249. Expenses included $157,292 in management fees,
$85,022 in ongoing offering expenses, $12,754 in operating expenses, $340,090 in selling
commissions, $175,399 in brokerage commissions, and $3,692 in other expenses. At September 30,
2009, and June 30, 2009, the net asset value per Unit of Series A was $1,484.92 and $1,514.39,
respectively.
Series B:
Net results for the quarter ended September 30, 2009, were a loss of 3.07% in net asset value
compared to the preceding quarter. In this period, Series B experienced a net decrease in net
assets from operations of $1,636,186. This decrease consisted of interest income of $11,475,
trading losses of $194,641, and total expenses of $1,453,020. Expenses included $261,638 in
management fees, $141,426 in ongoing offering expenses, $21,214 in operating expenses, $565,705 in
selling commissions, $460,024 in brokerage commissions, and $3,013 in other expenses. At September
30, 2009, and June 30, 2009, the net asset value per Unit of Series B was $1,699.95 and $1,753.17,
respectively.
Fund results for 3rd Quarter 2008:
In September, world bond markets finished on the upside after better than expected economic data
was discounted as several global central banks weighed the withdrawal of economic stimulus
packages. These conditions led the Funds long positions in the bond sector to an overall gain.
Global short-term interest rate futures continued their strong upward trend as inflation fears
weakened and sustainability of the economic recovery came into question. Three month eurodollar
futures extended their upside move after the Federal Open Market Committee kept rates at record
lows in an effort to combat a 26-year high in unemployment. The Funds long positions produced
gains in the interest rates sector. The U.S. dollar established new lows for the year in September,
falling 2.0% as investors around the world aggressively borrowed the low yielding currency to
finance purchases of assets in countries offering higher yields. Emerging South American currencies
continued to shine due to their relatively high yields. The Colombian peso and Brazilian real
finished 6.8% and 6.0% higher, respectively. The Funds short positions in the U.S. dollar led to
gains in the currencies sector. November crude oil contracts finished near unchanged as existing
homes sales and consumer confidence came in well below expectations. Crude inventories continued to
expand as demand remained weak. The Funds short energy positions produced losses on the month.
December gold futures finished 5.9% higher, closing above the significant $1,000 mark. December
silver futures also attracted investment demand, finishing 11.6% higher on the month. The Funds
long metals positions produced an overall gain.
In August, world bond markets moved steadily higher as perceptions surrounding economic data
shifted. U.S. Treasury bonds attracted steady buying in the latter half of the month as retail
sales missed forecasts and producer prices fell more than expected. These developments led the
Funds long positions in the interest rate sector to an overall gain. The U.S. dollar remained near
its lows for the year as risk appetite remained elevated, while the British pound and Canadian
dollar finished down 2.5% and 1.1%, respectively. The Funds short positions in U.S. dollar led to
an overall gain. Crude oil finished down 1.7%, while natural gas lost 23.3%. The Funds short
positions in the energy sector lead to an overall gain. October gold continued to trade sideways
between $900-$1,000, while London copper, nickel and lead finished 12.6%, 6.7% and 12.2% higher,
respectively. The Funds short positions in the metals sector led to an overall loss. Hog futures
continued their steady drive lower, finishing down 10.5%. Sugar and coffee finished 30.1% and 7.6%
higher, respectively. The Funds mix of long and short positions in the agriculture sector resulted
in an overall gain.
In July, global stock markets continued to advance as many markets rose to new multi-month highs.
Chinas Shenzen 300 finished 15.0% higher, while Germanys DAX, Londons FTSE and Frances CAC40
established new highs, rising between 8.0% and 11.0%. Short positions in the stock indices sector
produced relatively large losses for
27
Table of Contents
the month. The Canadian dollar surged, finishing 7.0% higher,
and the Norwegian krona, Brazilian real and Australian dollar finished 5%, 4.4% and 3.6% higher,
respectively. These conditions led the Funds long positions in
the U.S. dollar to an overall loss. Gold gained slightly in July as investors continued to search
for conviction on short-term price action. U.S. dollar weakness combined with an inflationary
Producer Price Index report caused December gold futures to experience a 2.8% gain. Industrial
metals continued to trend higher with London copper leading the way, finishing 15.2% higher. The
Funds short positions in metals led to an overall loss.
For the third quarter of 2009, the most profitable market sector for the Fund on an overall basis
was the interest rates sector, while the greatest losses resulted from the Funds positions in the
stock indices sector.
Three Months ended June 30, 2009
Series A:
Net results for the quarter ended June 30, 2009 were a loss of 20.07% in net asset value compared
to the preceding quarter. In this period, Series A experienced a net decrease in net assets from
operations of $7,923,779. This decrease consisted of interest income of $10,036, trading losses of
$7,142,493, and total expenses of $791,322. The decrease in interest income was the result of low
interest rates combined with a decrease in assets. Expenses included $156,966 in management fees,
$84,846 in ongoing offering expenses, $12,727 in operating expenses, $339,385 in selling
commissions, $191,989 in brokerage commissions, and $5,409 in other expenses. At June 30, 2009 and
March 31, 2009, the net asset value per Unit of Series A was $1,514.39 and $1,894.62, respectively.
Series B:
Net results for the quarter ended June 30, 2009 were a loss of 30.58% in net asset value compared
to the preceding quarter. In this period, Series B experienced a net decrease in net assets from
operations of $22,561,369. This decrease consisted of interest income of $20,765, trading losses of
$21,016,906, and total expenses of $1,565,228. The decrease in interest income was the result of
low interest rates combined with a decrease in assets. Expenses included $268,121 in management
fees, $144,930 in ongoing offering expenses, $21,739 in operating expenses, $579,720 in selling
commissions, $540,489 in brokerage commissions, and $10,229 in other expenses. At June 30, 2009 and
March 31, 2009, the net asset value per Unit of Series B was $1,753.17 and $2,526.24, respectively.
Fund results for 2nd Quarter 2009:
In June, U.S. stock indices finished near unchanged, while most Asian stock indices finished
higher; Hong Kongs Chinese Enterprise Index rose 6.1%. The Funds short positions in the stock
indices sector experienced a loss. World bond markets reversed early month lows by month end,
finishing higher as improving bond yields and a stagnating equity rally attracted buyers. The
Funds long positions in the bonds sector led to a gain. U.S. and European short-term interest rate
futures finished slightly higher in June, recovering from a substantial early month selloff. The
Funds long positions during the earlier part of the month resulted in losses. The Australian
dollar finished the month 1.2% higher, while the British pound finished 2.0% higher. The Funds
long positions in the U.S. dollar led to a loss. December wheat contracts plunged, losing 17.5% as
the global recession continued to destroy demand. The Funds short positions in the grains sector
produced gains. London copper added 3.7%, while lead also rose 8.9% as Chinese auto sales soared.
London nickel finished up 10.0% as Chinese imports for the first 4 months of 2009 exceeded 2008
levels by 16.0%. The Funds short positions in the metals sector resulted in losses. U.S. August
crude oil futures added 4.1% despite rising inventories as Chinese buying supported values. The
Funds short positions in the energy sector produced losses. Other market sectors, relative to the
sectors mentioned above, did not reveal significant trends and did not have a substantial influence
on this months overall negative performance.
In May, world bond markets traded dramatically lower as burgeoning budget deficits led to heavy
bond issuance, foreshadowing long-term inflation. U.S. 30-year bond futures, German Bund futures,
and Japanese 10-year bond futures traded to their lowest levels since November 2008. The Funds
long positions in the bonds sector resulted in losses. Emerging market strength contributed to a
steep selloff in U.S. treasuries, resulting in a 6.2% loss for the U.S. dollar index. The Brazilian
real and the Australian dollar were up 10.0% and 13.2%, respectively, against the U.S. dollar. The
Funds long positions in the U.S. dollar produced losses. Despite crude demand falling more than
7.5% from last year, inventories declined, leading to a 24.8% gain for July crude futures. The
Funds short positions in
28
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this sector incurred relatively large losses. Other market sectors did
not reveal significant trends and did not have a significant influence on this months overall
negative performance.
In April, the S&P 500 Index rose 9.4% led by bank stocks as (i) FAS 157-4 provided guidance for
determining the fair value of assets and liabilities, including guidance on identifying
circumstances that indicate an observed transaction used to determine fair value is not orderly
and, therefore, is not indicative of fair value and (ii) strong earnings from favorable spreads
created by cheap central bank liquidity supported values. The Funds short stock indices positions
led to a relatively large loss. World bond markets tracked steadily lower in April as money flowed
out of low yielding treasuries and into equities. The Funds long positions in the bonds sector
produced an overall loss. The U.S. dollar index finished down 1.2% while the euro moved sideways as
capital moved out of the U.S. and European Union amid unattractive treasury yields. The Hungarian
forint, Polish zloty and Czech koruna gained 6.0%, 4.6% and 2.1%, respectively against the U.S.
dollar, while the Australian dollar, Canadian dollar and Brazilian real finished up 5.0%, 5.5% and
5.7%, respectively against the U.S. dollar. The Funds long positions in the U.S. dollar lead to an
overall loss for the currency sector. Positive economic signals from the G20 meeting and the
resulting rise in world equity markets were offset by rising inventories as global energy demand
continued to contract. June natural gas prices continued lower, posting a 13.8% loss as storage
increased to nearly 34.0% greater than a year ago and 23.0% greater than the five-year moving
average. The Funds short positions in the energy sector produced a relatively large gain. Other
market sectors did not reveal significant trends and did not have a substantial influence on
Aprils overall negative performance.
For the second quarter of 2009, the most profitable market sector for the Fund on an overall basis
was the grains sector, while the greatest losses resulted from the Funds positions in the energy
sector.
Three Months ended March 31, 2009
Series A:
Net results for the quarter ended March 31, 2009, were a loss of 1.95% in net asset value compared
to the preceding quarter end. In this period, Series A experienced a net decrease in net assets
from operations of $715,503. This decrease consisted of interest income of $14,081, trading losses
of $43,631, and total expenses of $685,953. The significant decrease of interest income was the
result of unprecedented changes in interest rates. Expenses included $168,739 in management fees,
$91,210 in ongoing offering expenses, $13,682 in operating expenses, $364,842 in selling
commissions, $43,462 in brokerage commissions, and $4,018 in other expenses. At March 31, 2009,
and December 31, 2008, the net asset value per Unit of Series A was $1,894.62 and 1,932.30,
respectively.
Series B:
Net results for the quarter ended March 31, 2009, were a loss of 2.87% in net asset value compared
to the preceding quarter end. In this period, Series B experienced a net decrease in net assets
from operations of $2,055,946. This decrease consisted of interest income of $26,879, trading
losses of $440,442, and total expenses of $1,642,383. The significant decrease of interest income
was the result of unprecedented changes in interest rates. Expenses included $314,480 in management
fees, $169,989 in ongoing offering expenses, $25,498 in operating expenses, $679,956 in selling
commissions, $301,233 in incentive fees, $145,445 in brokerage commissions, and $5,782 in other
expenses. At March 31, 2009, and December 31, 2008, the net asset value per Unit of Series B was
$2,526.24 and 2,600.96, respectively.
Fund results for 1st Quarter 2009:
In March, global stock indices finished the month with significant gains. On the basis of strong
economic indicators, U.S. indices experienced gains of 7.0% to 10.0%, while Koreas Kospi and the
China-based H-Shares experienced gains of 14.2% and 13.7%, respectively. The Funds short stock
indices positions resulted in losses for the month. Global short-term interest rate futures trended
higher during March as the continuous actions of world central banks attempting to combat the
recession and reverse deflation provided steady support. The Funds long interest rates positions
produced gains. The Australian dollar gained 8.2% against the U.S. dollar, while the Brazilian real
and New Zealand dollar gained 2.6% and 11.7%, respectively against the U.S. dollar, based on strong
relative economic performance bolstered by commodity market strength. The euro added 4.6% against
the U.S. dollar and 6.0% against the Japanese yen, while the Norwegian krone rose 4.4% against the
U.S. dollar. A
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relatively large loss resulted from the Funds short positions in these foreign
currency markets. In March, Australian wheat production estimates grew by 1.4 million tons, while
global 2008-09 total wheat production was projected to be a record 684.4 million tons. May corn
moved 12.7% higher as rising crude oil and fertilizer prices resulted in the United States
Department of Agriculture (USDA) shifting production from corn to soybeans. The Funds short
positions in grain lead to a loss in the sector. May crude oil futures added to Februarys late
month rebound, rising
6.1%, supported by solid U.S. housing and durable goods orders and a weaker U.S. dollar. A
surprisingly dramatic recovery in Chinese demand also provided underlying support. The Funds short
energy sector positions resulted in losses for the month. Gold ETF holdings posted yet another
record high, supporting the market at levels well above $900 per ounce as investors continued to
seek protection from currency debasing moves by central bankers. In London, base metals, led by
copper and zinc, up 19.7% and 21.4%, respectively, moved sharply higher amid widespread evidence
that China is moving to counteract damage to its export-led economic growth by stockpiling
industrial metals to use for vast infrastructure projects. These developments produced losses for
the Funds short positions in the metals sector.
In February, equities continued their collapse as dark economic clouds hung over global markets. In
Asia, major indices lost between 3.0% and 9.0%. The Nikkei Index fell nearly 4.7% amid a startling
84.0% drop in January machine orders (year over year). The Funds short positions in stock indices
produced gains on the month. Front month U.S. 30 year bond futures finished slightly lower as the
unexpected inflation readings and massive debt supply offset the short term inflation outlook.
European bonds returned to recent highs as reports showed economic contraction of 1.5% in the 4th
quarter, the most in 13 years. Japanese bonds also returned to recent highs as gross domestic
product (GDP) shrank at a 12.7% annualized rate in the fourth quarter. The Funds long positions
in the bonds sector produced gains for the month. May soybean futures showed strength early in the
month on concern that dry conditions in Argentina would result in significant production losses.
Nonetheless, soybeans finished over 10.7% lower as the combination of timely rains and persistent
U.S. dollar strength weighed on values. May corn futures finished 8% lower despite the dry weather
in Argentina leading the USDA to lower world production estimates by 4.6 million tons. The Funds
short positions in the grains sector resulted in gains for the month. U.S. crude inventories rose
to 351.3 million barrels versus 299.8 million barrels in February 2009 despite several rounds of
production cuts by the Organization of the Petroleum Exporting Countries (OPEC). Despite the
negative news, April crude managed a late rally of over 20.0% to finish with a loss of 3.3% on the
back of a bullish gasoline inventory report. April gasoline futures rallied over 20.0% from its
lows to finish 1.3% higher as capacity utilization in the refining sector shrank to 81.4%. April
natural gas finished 6.2% lower as supplies stood more than 12.0% above the five-year average. The
Funds short positions in the energy sector resulted in overall gains for the month.
In January, negative news sent equities lower around the world. Asian indices finished lower as the
Nikkei declined 10.0% due to distressed vehicle sales and industrial production, while Hong Kongs
Hang Seng index fell 8.2% on poor export data. In Europe, falling industrial production and bank
sector trouble pressured markets, leading to a 10.2% decline for Germanys DAX. The Funds short
positions in the stock indices sector produced gains for the month. World bond markets gave back
most of Decembers gains as stimulus and bailout package announcements by world governments made
bond investors nervous. In Europe, producer prices fell the most in 27 years and consumer inflation
reached the lowest in more than 2 years. This data propelled front-month Bund futures to a record
high by mid-month, however the market finished near unchanged as the European Central Bank rejected
talk of easing to a 0% target rate. The Funds long positions in the bonds sector resulted in
losses for the month. Crude oil settled near its December low of around $40 per barrel as the
market shrugged off a litany of bullish factors, choosing instead to focus on deteriorating demand,
growing inventories, and the strong U.S dollar. March natural gas futures continued trending lower,
falling 21.8% as inventories remained plentiful despite below average temperatures throughout the
U.S. The Funds short positions in the energy sector produced overall gains for the month.
For the first quarter of 2009, the most profitable market sector was interest rates, while the
largest losses resulted from positions in the currency sector.
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Three Months ended September 30, 2008
Series A:
Net results for the quarter ended September 30, 2008 were a loss of 13.9% in net asset value
compared to the preceding quarter. In this period, Series A experienced a net decrease in net
assets from operations of $6,022,612. This decrease consisted of interest income of $176,226,
trading losses of $5,399,239, and total expenses of $799,599. Expenses included $174,146 in
management fees, $94,133 in ongoing offering expenses, $14,120 in operating expenses, $376,532 in
selling commissions, $133,131 in brokerage commissions, and $7,537 in other expenses. At September
30, 2008 and June 30, 2008, the net asset value per Unit of Series A was $1,675.30 and $1,945.95,
respectively.
Series B:
Net results for the quarter ended September 30, 2008 were a loss of 20.8% in net asset value
compared to the preceding quarter. In this period, Series B experienced a net decrease in net
assets from operations of $12,599,283. This decrease consisted of interest income of $234,976,
trading losses of $11,625,733, and total expenses of $1,208,526. Expenses included $238,146 in
management fees, $128,727 in ongoing offering expenses, $19,309 in operating expenses, $514,910 in
selling commissions, $294,619 in brokerage commissions, and $12,815 in other expenses. At September
30, 2008 and June 30, 2008, the net asset value per Unit of Series B was $2,053.20 and $2,593.32,
respectively.
Fund results for 3rd Quarter 2008:
In September, worldwide stock indices finished the month with significant losses. Major European
indices finished 6.0-19.0% lower, while the Dow Jones and Nasdaq finished 6.3% and 15.6% lower,
respectively. The Funds short positions in stock indices produced gains for the month. Energy
markets continued to drop from record highs three months prior, finishing the month with steep
losses. Despite a short lived rally, crude oil prices finished 13.2% lower on the month, while
natural gas and gasoline futures lost 11.0% and 12.6%, respectively. The Funds long energy
positions resulted in losses for the month.
In August, U.S. dollar index futures surged 5.5% as the EUR/USD declined 8.5%. Recessionary fears
in the United Kingdom led to the GBP/USDs largest decline in two years, while the Australian
dollar declined 8.4% against the U.S. dollar. The Funds short positions in the U.S. dollar
resulted in a relatively large loss for the month. U.S. dollar gains combined with contracting
global demand and record OPEC production contributed to a 7.1% decline in crude oil. Natural gas
also declined, finishing 13.8% lower. The Funds long positions in the energy sector resulted in
losses for the month. Gold dropped to its lowest levels since December, finishing the month 9.4%
lower. Silver and platinum also experienced declines, falling 23.7% and 14.8%, respectively. Nickel
had a surprise gain of 10.2% as key producers announced plans to cut output. The Funds long
positions in the metals sector resulted in a relatively large loss. World bond markets traded
higher as global economic growth concerns widened. U.S. 30-year bond futures traded to a four month
high, while European bond futures rallied as euro zone annual inflation eased to 3.8% and German
GDP contracted by 0.8%. The Funds long positions in the bonds sector resulted in an overall gain.
In July, write-offs continued to plague financials as equities endured heavy selling. The U.S.
government responded by enacting emergency measures to stabilize the financial system. In the
United Kingdom, the FTSE Index finished with a 4.5% loss. The Funds short position in stock
indices resulted in an overall gain. Agricultural futures gave back nearly all of Junes gains as
soybean futures fell 10.8%, corn plummeted 19.7%, and wheat futures fell 8.2% on the month. The
Funds long positions in the agricultural market resulted in a substantial loss. Energy prices fell
sharply in July due to a reduction in geopolitical hostilities and further evidence of overall
reductions in global demand. Both crude oil and gas futures experienced greater than 10.0%
declines. Natural gas plummeted over 30.0% due to inventory gains. The Funds long positions in the
energy sector resulted in significant losses. Gold ultimately finished 1.5% lower after an initial
rally in the first half of July. Platinum also fell over 15.0%, a result of significant declines in
U.S. auto sales. The Funds long positions in the metals sector produced an overall loss.
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For the third quarter of 2008, the most profitable market group overall was stock indices while the
largest losses resulted from positions in the energy sector.
Three Months ended June 30, 2008
Series A:
Net results for the quarter ended June 30, 2008 were a profit of 11.57% in net asset value compared
to the preceding quarter. In this period, Series A experienced a net increase in net assets from
operations of $4,432,744. This increase consisted of interest income of $229,437, trading gains of
$6,534,433, and total expenses of $2,331,126. Expenses included $198,062 in management fees,
$107,061 in organization and offering expenses, $16,059 in operating expenses, $428,243 in selling
commissions, $1,422,166 in incentive fees, $156,476 in brokerage commissions, and $3,059 in other
expenses. At June 30, 2008 and March 31, 2008, the net asset value per Unit of Series A was
$1,945.95 and $1,744.21, respectively.
Series B:
Net results for the quarter ended June 30, 2008 were a profit of 19.34% in net asset value compared
to the preceding quarter. In this period, Series B experienced a net increase in net assets from
operations of $9,389,092. This increase consisted of interest income of $210,065, trading gains of
$13,437,565, and total expenses of $4,258,538. Expenses included $242,922 in management fees,
$131,309 in organization and offering expenses, $19,696 in operating expenses, $525,236 in selling
commissions, $3,050,224 in incentive fees, $286,367 in brokerage commissions, and $2,784 in other
expenses. At June 30, 2008 and March 31, 2008, the net asset value per Unit of Series B was
$2,593.32 and $2,173.02, respectively.
Fund results for 2nd Quarter 2008:
In June, equity markets declined around the globe due to slowing growth and rising unemployment and
commodity prices. Short positions in equity markets produced significant gains. Severe flooding in
the U.S. caused significant delays in the grain planting process, sending prices soaring. Long
positions in the agricultural sector resulted in an overall gain. World energy markets remained
elevated as geopolitical concerns kept oil supply uncertainty high. Crude oil finished with a 9.8%
gain. Long positions in the energy sector resulted in overall gains. Other market sectors, relative
to the sectors mentioned above, did not reveal significant trends and did not have any major
influence on Junes positive performance.
In May, some foreign currencies approached all time highs. Long positions in foreign currencies
resulted in an overall gain for this sector. World energy markets continued their historic advances
in May as crude oil finished 12.9% higher. Heating oil, gasoline, and natural gas all rose sharply
as declining margins continued to result in insufficient distillate fuel production. Long positions
in this sector resulted in a substantial gain. Other market sectors, relative to the sectors
mentioned above, did not reveal significant trends and did not have any major influence on Mays
overall positive performance.
In April, world bond markets moved lower as growing inflation readings added to late Marchs
weakness. U.S. bonds rallied early in the month before values moved lower as consumer prices rose
due to higher fuel and food costs. Long positions in this market sector resulted in a loss. World
energy markets traded higher in April as oil futures moved 12.3%, reaching all time highs. The
ongoing weakness of the U.S. dollar provided early support, while strong demand from developing
nations, bullish domestic inventory reports, and continued geopolitical concerns provided support
throughout the month. Long positions led to an overall gain in the energy sector. Other market
sectors, relative to the bond and energy sector, did not reveal significant trends and did not have
a major influence on Aprils slightly negative performance.
For the second quarter of 2008, the most profitable market sector for the Fund on an overall basis
was the energy sector, while the greatest losses resulted from the Funds positions in the bonds
sector.
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Three Months ended March 31, 2008
Series A:
Net results for the quarter ended March 31, 2008 were a gain of 17.34% in net asset value compared
to the preceding quarter end. In this period, Series A experienced a net increase in net assets
from operations of $9,412,233. This increase consisted of interest income of $408,887, trading
gains (including commissions) of $10,667,361, and total expenses of $1,664,015. Expenses included
$266,434 in management fees, $144,018 in organization and offering expenses, $21,603 in operating
expenses, $576,074 in selling commissions, $364,515 in incentive fees, $290,178 in brokerage
commissions, and $1,193 in other expenses. At March 31, 2008 and December 31, 2007, the net asset
value per Unit of Series A was $1,744.21 and 1,486.44, respectively.
Series B:
Net results for the quarter ended March 31, 2008 were a gain of 22.45% in net asset value compared
to the preceding quarter end. In this period, Series B experienced a net increase in net assets
from operations of $6,273,864. This increase consisted of interest income of $188,147, trading
gains (including commissions) of $7,759,851, and total expenses of $1,674,134. Expenses included
$158,224 in management fees, $85,527 in organization and offering expenses, $12,829 in operating
expenses, $342,107 in selling commissions, $780,941 in incentive fees, $293,444 in brokerage
commissions, and $1,062 in other expenses. At March 31, 2008 and December 31, 2007, the net asset
value per Unit of Series B was $2,173.02 and 1,774.69, respectively.
Fund results for 1st Quarter 2008:
In March, long positions in world bond markets resulted in a gain. Long positions in the currencies
markets resulted in a relatively large gain. The U.S. dollars historic decline accelerated against
most world currencies in March. Long positions in the currencies markets resulted in a relatively
large gain. Long positions in the agricultural markets led to an overall loss for the agricultural
sector. Crude oil rose to record highs with long positions producing gains in the energy sector.
Although gold touched record highs well above $1,000 per ounce, the precious metals markets
reversed. Long positions in the metals sector resulted in a relatively large loss. Other market
sectors, relative to the sectors mentioned above, did not reveal significant trends and did not
have a significant influence on Marchs overall positive performance.
In February, wheat and corn futures posted record highs, with soybeans futures also surging. Long
positions in this sector produced considerable gains. Crude oil futures moved to record highs over
$100 in February, extending a long-standing bull run. A relatively large gain resulted from energy
sector long positions. Gold and platinum futures rose to record highs in February and silver
reached a 28-year high resulting in significant gains from long positions in the metals sector. A
mix of long and short positions produced overall gains in agricultural markets. Other market
sectors did not reveal significant trends and did not have a major influence on Februarys positive
overall performance.
Crude oil futures opened January near all-time highs, but the market moved lower as the month
progressed. Long positions in the energy markets resulted in relatively large losses for the
sector. Gold and platinum futures traded at all-time highs, silver traded at its highest level
since January 1981, and copper rose, resulting in gains in the metal sector. Other market sectors,
relative to the energies and metals, did not reveal significant trends and did not have a major
influence on Januarys overall negative performance.
OFF-BALANCE SHEET RISK
The term off-balance sheet risk refers to an unrecorded potential liability that, even though it
does not appear on the balance sheet, may result in a future obligation or loss. The Fund trades in
futures and forward contracts and is therefore a party to financial instruments with elements of
off-balance sheet market and credit risk. In entering into these contracts, there exists a market
risk that such contracts may be significantly influenced by conditions, such as interest rate
volatility, resulting in such contracts being less valuable. If the markets should move against all
of the futures interests positions of the Fund at the same time, and if Superfund Capital
Management was unable to offset such positions, the Fund could experience substantial losses.
Superfund Capital Management attempts to minimize
33
Table of Contents
market risk through real-time monitoring of open
positions, diversification of the portfolio and maintenance of a margin-to-equity ratio in all but
extreme instances not greater than 50%.
In addition to market risk, in entering into futures and forward contracts there is a credit risk
that a counterparty will not be able to meet its obligations to the Fund. The counterparty for
futures contracts traded in the United States and on most foreign exchanges is the clearinghouse
associated with such exchange. In general, clearinghouses are backed by the corporate members of
the clearinghouse who are required to share any financial burden resulting from the non-performance
by one of their members and, as such, should significantly reduce this credit risk. In cases where
the clearinghouse is not backed by the clearing members, like some foreign exchanges, it is
normally backed by a consortium of banks or other financial institutions.
OFF-BALANCE SHEET ARRANGEMENTS
The Fund does not engage in off-balance sheet arrangements.
CONTRACTUAL OBLIGATIONS
The Fund does not enter into contractual obligations or commercial commitments to make future
payments of a type that would be typical for an operating company. The Funds sole business is
trading futures, currency, forward and certain swap contracts, both long (contracts to buy) and
short (contacts to sell). All such contracts are settled by offset, not delivery. Substantially
all such contracts are for settlement within four months of the trade date and substantially all
such contracts are held by the Fund for less than four months before being offset or rolled over
into new contracts with similar maturities. The Financial Statements of Series A and Series B each
present a Condensed Schedule of Investments setting forth net unrealized appreciation
(depreciation) of such Series open futures and other contracts at September 30, 2009, and December
31, 2008.
CRITICAL ACCOUNTING POLICIES VALUATION OF THE FUNDS POSITIONS
Superfund Capital Management believes that the accounting policies that will be most critical to
the Funds financial condition and results of operations relate to the valuation of the Funds
positions. The Fund uses the amortized cost method for valuing U.S. Treasury Bills, accordingly,
the cost of securities plus accreted discount, or minus amortized premium, approximates fair value.
The majority of the Funds positions will be exchange-traded futures contracts, which will be
valued daily at settlement prices published by the exchanges. Any spot and forward foreign
currency or swap contracts held by the Fund will also be valued at published daily settlement
prices or at dealers quotes. Thus, Superfund Capital Management expects that under normal
circumstances substantially all of the Funds assets will be valued on a daily basis using
objective measures.
RECENTLY ISSUED ACCOUNTING STANDARDS
ASC 105.10.05
In June 2009, FASB issued FASB Accounting Standards Codification (ASC) 105.10.05, Generally
Accepted Accounting Principles (ASC 105.10.05). ASC 105.10.05 establishes the FASB ASC as the
single source of authoritative generally accepted accounting principles (GAAP). Pursuant to the
provisions of ASC 105.10.05, the Fund has updated references to GAAP in its financial statements
issued subsequent to September 15, 2009. The adoption of ASC 105.10.05 did not have any impact on
the Funds results of operations, financial condition or cash flows.
ASC 810
In June 2009, the FASB issued ASC 810. ASC 810 changes how a company determines when an entity that
is insufficiently capitalized or is not controlled through voting rights should be consolidated.
The determination of whether a company is required to consolidate an entity is based on an entitys
purpose and design and a companys ability to direct the activities of the entity that most
significantly impact the entitys economic performance. ASC 810 is effective for annual reporting
periods ending after November 15, 2009. Superfund Capital Management is currently evaluating the
impact of ASC 810 on the Funds financial statements.
34
Table of Contents
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not required.
ITEM 4T. CONTROLS AND PROCEDURES
Superfund Capital Management, the Funds general partner, with the participation of Superfund
Capital Managements principal executive officer and principal financial officer, has evaluated the
effectiveness of the design and operation of its disclosure controls and procedures with respect to
the Fund as of the end of the period covered by this quarterly report, and, based on their
evaluation, have concluded that these disclosure controls and procedures are effective. There were
no formal changes in Superfund Capital Managements internal controls over financial reporting
during the quarter ended September 30, 2009, that have materially affected, or are reasonably
likely to materially affect Superfund Capital Managements internal control over financial
reporting with respect to the Fund.
35
Table of Contents
PART II-OTHER INFORMATION
Item 1. Legal Proceedings.
Superfund Capital Management is not aware of any pending legal proceedings to which either the Fund
is a party or to which any of its assets are subject. The Fund has no subsidiaries.
Item 1A. Risk Factors
Not required.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Pursuant to the Funds Limited Partnership Agreement, investors may redeem their Units at the end
of each calendar month at the then current month-end Net Asset Value per Unit. The redemption of
Units has no impact on the value of Units that remain outstanding, and Units are not reissued once
redeemed.
The following tables summarize the redemptions by investors during the three months ended September
30, 2009:
Series A:
Month | Units Redeemed | NAV per Unit ($) | ||||||
July 31, 2009 |
572.863 | 1,395.29 | ||||||
August 31, 2009 |
322.135 | 1,444.35 | ||||||
September 30, 2009 |
194.880 | 1,484.92 | ||||||
1,089.878 | ||||||||
Series B:
Month | Units Redeemed | NAV per Unit ($) | ||||||
July 31, 2009 |
472.025 | 1,539.06 | ||||||
August 31, 2009 |
460.100 | 1,625.56 | ||||||
September 30, 2009 |
428.227 | 1,699.95 | ||||||
1,360.352 | ||||||||
Item 3. Defaults upon Senior Securities.
Not applicable.
Item 4. Submissions of Matters to a Vote of Security Holders.
None.
Item 5. Other Information.
None.
Item 6. Exhibits.
The following exhibits are included herewith:
31.1 | Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer | |
31.2 | Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer | |
32.1 | Section 1350 Certification of Principal Executive Officer | |
32.2 | Section 1350 Certification of Principal Financial Officer |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: November 16, 2009 | QUADRIGA SUPERFUND, L.P. | |||
(Registrant) |
||||
By: | Superfund Capital Management, Inc. | |||
General Partner | ||||
By: | /s/ Nigel James | |||
Nigel James | ||||
President and Principal Executive Officer | ||||
By: | /s/ Roman Gregorig | |||
Roman Gregorig | ||||
Vice President and Principal Financial Officer | ||||
Table of Contents
EXHIBIT INDEX
Exhibit Number | Description of Document | Page Number | ||
31.1
|
Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer | E-2 | ||
31.2
|
Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer | E-3 | ||
32.1
|
Section 1350 Certification of Principal Executive Officer | E-4 | ||
32.2
|
Section 1350 Certification of Principal Financial Officer | E-5 |
E-1