Attached files
file | filename |
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EX-31.01 - EX-31.01 - Campbell Global Trend Fund, L.P. | w82859exv31w01.htm |
EX-31.02 - EX-31.02 - Campbell Global Trend Fund, L.P. | w82859exv31w02.htm |
EX-32.02 - EX-32.02 - Campbell Global Trend Fund, L.P. | w82859exv32w02.htm |
EX-32.01 - EX-32.01 - Campbell Global Trend Fund, L.P. | w82859exv32w01.htm |
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
þ | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the quarterly period ended March 31, 2011
or
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: 333-166321
CAMPBELL GLOBAL TREND FUND, L.P.
(Exact name of registrant as specified in charter)
Delaware | 27-1412568 | |
(State of Organization) | (IRS Employer Identification Number) |
2850 Quarry Lake Drive
Baltimore, Maryland 21209
Baltimore, Maryland 21209
(Address of principal executive offices, including zip code)
(410) 413-2600
(Registrants telephone number, including area code)
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 Web site, 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 þ 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 definition of accelerated
filer, large accelerated filer and smaller reporting company in 12b-2 of the Exchange Act.
(Check one):
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
-2-
Table of Contents
CAMPBELL GLOBAL TREND FUND, L.P.
GLOBAL TREND SERIES (USD)
CONDENSED SCHEDULE OF INVESTMENTS
MARCH 31, 2011 (Unaudited)
GLOBAL TREND SERIES (USD)
CONDENSED SCHEDULE OF INVESTMENTS
MARCH 31, 2011 (Unaudited)
LONG FUTURES CONTRACTS
% of Net | ||||||||
Description | Values ($) | Asset Value | ||||||
Agriculture |
$ | 26,904 | 0.17 | % | ||||
Energy |
$ | 80,744 | 0.50 | % | ||||
Metals |
$ | 49,666 | 0.30 | % | ||||
Stock indices |
$ | 100,063 | 0.61 | % | ||||
Short-term interest rates |
$ | (46,838 | ) | (0.29 | )% | |||
Long-term interest rates |
$ | (103,185 | ) | (0.63 | )% | |||
Total long futures contracts |
$ | 107,354 | 0.66 | % | ||||
SHORT FUTURES CONTRACTS
% of Net | ||||||||
Description | Values ($) | Asset Value | ||||||
Agriculture |
$ | (10,770 | ) | (0.07 | )% | |||
Energy |
$ | (2,850 | ) | (0.02 | )% | |||
Metals |
$ | (42,812 | ) | (0.26 | )% | |||
Stock indices |
$ | (4,213 | ) | (0.03 | )% | |||
Short-term interest rates |
$ | 25,256 | 0.16 | % | ||||
Long-term interest rates |
$ | 17,779 | 0.11 | % | ||||
Total short futures contracts |
$ | (17,610 | ) | (0.11 | )% | |||
Total futures contracts |
$ | 89,744 | 0.55 | % | ||||
FORWARD CURRENCY CONTRACTS
% of Net | ||||||||
Description | Values ($) | Asset Value | ||||||
Various long forward
currency contracts |
$ | 199,353 | 1.22 | % | ||||
Various short forward
currency contracts |
$ | (242,862 | ) | (1.49 | )% | |||
Total forward currency contracts |
$ | (43,509 | ) | (0.27 | )% | |||
See Accompanying Notes to Financial Statements.
-3-
Table of Contents
CAMPBELL GLOBAL TREND FUND, L.P.
GLOBAL TREND SERIES (USD)
CONDENSED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2010 (Unaudited)
GLOBAL TREND SERIES (USD)
CONDENSED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2010 (Unaudited)
LONG FUTURES CONTRACTS
% of Net | ||||||||
Description | Values ($) | Asset Value | ||||||
Agriculture |
$ | 89,031 | 0.53 | % | ||||
Energy |
$ | 37,382 | 0.22 | % | ||||
Metals |
$ | 130,353 | 0.77 | % | ||||
Stock indices |
$ | 16,806 | 0.10 | % | ||||
Short-term interest rates |
$ | 21,390 | 0.13 | % | ||||
Long-term interest rates |
$ | 2,360 | 0.01 | % | ||||
Total long futures contracts |
$ | 297,322 | 1.76 | % | ||||
SHORT FUTURES CONTRACTS
% of Net | ||||||||
Description | Values ($) | Asset Value | ||||||
Agriculture |
$ | (5,040 | ) | (0.03 | )% | |||
Energy |
$ | (25,830 | ) | (0.15 | )% | |||
Metals |
$ | (4,482 | ) | (0.03 | )% | |||
Stock indices |
$ | 4,023 | 0.02 | % | ||||
Short-term interest rates |
$ | (312 | ) | 0.00 | % | |||
Long-term interest rates |
$ | (25,541 | ) | (0.15 | )% | |||
Total short futures contracts |
$ | (57,182 | ) | (0.34 | )% | |||
Total futures contracts |
$ | 240,140 | 1.42 | % | ||||
FORWARD CURRENCY CONTRACTS
% of Net | ||||||||
Description | Values ($) | Asset Value | ||||||
Various long forward
currency contracts |
$ | 563,554 | 3.34 | % | ||||
Various short forward
currency contracts |
$ | (263,756 | ) | (1.56 | )% | |||
Total forward currency contracts |
$ | 299,798 | 1.78 | % | ||||
See Accompanying Notes to Financial Statements.
-4-
Table of Contents
CAMPBELL GLOBAL TREND FUND, L.P.
GLOBAL TREND SERIES (USD)
STATEMENTS OF FINANCIAL CONDITION
March 31, 2011 and December 31, 2010 (Unaudited)
GLOBAL TREND SERIES (USD)
STATEMENTS OF FINANCIAL CONDITION
March 31, 2011 and December 31, 2010 (Unaudited)
March 31, 2011 | December 31, 2010 | |||||||
ASSETS |
||||||||
Equity in broker trading accounts |
||||||||
Cash |
$ | 13,475,574 | $ | 14,365,334 | ||||
Restricted cash |
1,537,256 | 1,098,083 | ||||||
Net unrealized gain (loss) on open futures contracts |
89,744 | 240,140 | ||||||
Total equity in broker trading accounts |
15,102,574 | 15,703,557 | ||||||
Cash and cash equivalents |
1,190,557 | 1,137,076 | ||||||
Net unrealized gain (loss) on open forward currency contracts |
(43,509 | ) | 299,798 | |||||
Interest receivable |
843 | 1,879 | ||||||
Subscriptions receivable |
145,009 | 0 | ||||||
Prepaid expenses |
750 | 0 | ||||||
Other assets |
25,525 | 62,733 | ||||||
Total assets |
$ | 16,421,749 | $ | 17,205,043 | ||||
LIABILITIES |
||||||||
Accounts payable |
29,855 | 30,958 | ||||||
Advisory fee |
27,075 | 28,621 | ||||||
General partner fee |
13,538 | 14,310 | ||||||
Broker-dealer custodial fee |
3,384 | 3,732 | ||||||
Accrued commissions and other trading fees on open contracts |
1,794 | 1,374 | ||||||
Performance fee payable |
0 | 221,369 | ||||||
Offering costs payable |
6,769 | 7,155 | ||||||
Total liabilities |
82,415 | 307,519 | ||||||
PARTNERS CAPITAL (Net Asset Value) |
||||||||
Class A (USD) Units Redeemable |
||||||||
General
Partner 7,500.072 units outstanding at
March 31, 2011 and December 31, 2010 |
8,007,062 | 8,390,835 | ||||||
Limited Partner 157.956 and 13.975 units outstanding at
March 31, 2011 and December 31, 2010 |
168,635 | 15,634 | ||||||
Class C (USD) Units Redeemable |
||||||||
General Partner 7,500.072 units outstanding at
March 31, 2011 and December 31, 2010 |
8,114,463 | 8,464,858 | ||||||
Limited Partner 45.452 and 23.212 units outstanding at
March 31, 2011 and December 31, 2010 |
49,174 | 26,197 | ||||||
Total partners capital (Net Asset Value) |
16,339,334 | 16,897,524 | ||||||
Total liabilities and partners capital (Net Asset Value) |
$ | 16,421,749 | $ | 17,205,043 | ||||
See Accompanying Notes to Financial Statements.
-5-
Table of Contents
CAMPBELL GLOBAL TREND FUND, L.P.
GLOBAL TREND SERIES (USD)
STATEMENT OF OPERATIONS
For the Three Months Ended March 31, 2011 (Unaudited)
GLOBAL TREND SERIES (USD)
STATEMENT OF OPERATIONS
For the Three Months Ended March 31, 2011 (Unaudited)
Three Months Ended | ||||
March 31, 2011(1) | ||||
TRADING GAINS (LOSSES) |
||||
Futures trading gains (losses) |
||||
Realized |
$ | (194,639 | ) | |
Change in unrealized |
(150,396 | ) | ||
Brokerage commissions |
(10,826 | ) | ||
Net gain (loss) from futures trading |
(355,861 | ) | ||
Forward currency trading gains (losses) |
||||
Realized |
171,354 | |||
Change in unrealized |
(343,307 | ) | ||
Brokerage commissions |
(481 | ) | ||
Net gain (loss) from forward currency trading |
(172,434 | ) | ||
Total net trading gain (loss) |
(528,295 | ) | ||
NET INVESTMENT INCOME (LOSS) |
||||
Investment income |
||||
Interest income |
4,150 | |||
Total investment income |
4,150 | |||
Expenses |
||||
Advisory fee |
84,155 | |||
General partner fee |
42,078 | |||
Service fee |
37,608 | |||
Broker-dealer custodial fee |
10,266 | |||
Operating expenses |
18,909 | |||
Total expenses |
193,016 | |||
Net investment income (loss) |
(188,866 | ) | ||
NET INCOME (LOSS) |
$ | (717,161 | ) | |
NET INCOME (LOSS) PER PARTNERS CAPITAL (based on weighted average number of units outstanding during the year) |
||||
Class A |
$ | (49.91 | ) | |
Class C |
$ | (45.41 | ) | |
INCREASE (DECREASE) IN NET ASSET VALUE
PER MANAGING OPERATOR AND OTHER UNITHOLDERS UNIT |
||||
Class A |
$ | (51.17 | ) | |
Class C |
$ | (46.72 | ) | |
(1) | The Fund commenced trading on June 1, 2010; therefore, no information is provided for the three months ended December 31, 2010 |
See Accompanying Notes to Financial Statements.
-6-
Table of Contents
CAMPBELL GLOBAL TREND FUND, L.P.
GLOBAL TREND SERIES (USD)
STATEMENT OF CASH FLOWS
For the Three Months Ended March 31, 2011 (Unaudited)
GLOBAL TREND SERIES (USD)
STATEMENT OF CASH FLOWS
For the Three Months Ended March 31, 2011 (Unaudited)
Three Months Ended | ||||
March 31, 2011(1) | ||||
Cash flows from (for) operating activities |
||||
Net income (loss) |
$ | (717,161 | ) | |
Adjustments to reconcile net income (loss) to net cash from (for) operating activities |
||||
Net change in unrealized |
493,703 | |||
(Increase) decrease in restricted cash |
(439,173 | ) | ||
(Increase) decrease in interest receivable |
1,036 | |||
(Increase) decrease in prepaid expenses |
(750 | ) | ||
(Increase) decrease in other assets |
37,208 | |||
Increase (decrease) in accounts payable and accrued expenses |
(224,718 | ) | ||
Net cash from (for) operating activities |
(849,855 | ) | ||
Cash flows from (for) financing activities |
||||
Addition of units |
35,001 | |||
Offering costs paid |
(21,425 | ) | ||
Net cash from (for) financing activities |
13,576 | |||
Net increase (decrease) in cash and cash equivalents |
(836,279 | ) | ||
Cash and cash equivalents |
||||
Beginning of period |
15,502,410 | |||
End of period |
$ | 14,666,131 | ||
End of period cash and cash equivalents consists of: |
||||
Cash in broker trading accounts |
$ | 13,475,574 | ||
Cash and cash equivalents |
1,190,557 | |||
Total end of period cash and cash equivalents |
$ | 14,666,131 | ||
(1) | The Fund commenced trading on June 1, 2010; therefore, no information is provided for the three months ended December 31, 2010 |
See Accompanying Notes to Financial Statements.
-7-
Table of Contents
CAMPBELL GLOBAL TREND FUND, L.P.
GLOBAL TREND SERIES (USD)
STATEMENTS OF CHANGES IN PARTNERS CAPITAL (NET ASSET VALUE)
For the Three Months Ended March 31, 2011 (Unaudited)
GLOBAL TREND SERIES (USD)
STATEMENTS OF CHANGES IN PARTNERS CAPITAL (NET ASSET VALUE)
For the Three Months Ended March 31, 2011 (Unaudited)
Partners Capital Class A(1) | ||||||||||||||||||||||||
General Partner | Limited Partner | Total | ||||||||||||||||||||||
Units | Amount | Units | Amount | Units | Amount | |||||||||||||||||||
Balances at December 31,
2010 |
7,500.072 | $ | 8,390,835 | 13.975 | $ | 15,634 | 7,514.047 | $ | 8,406,469 | |||||||||||||||
Additions |
0.000 | 0 | 143.981 | 155,009 | 143.981 | 155,009 | ||||||||||||||||||
Net income (loss) |
(373,347 | ) | (1,981 | ) | (375,328 | ) | ||||||||||||||||||
Offering costs |
(10,426 | ) | (27 | ) | (10,453 | ) | ||||||||||||||||||
Balances at March 31, 2011 |
7,500.072 | $ | 8,007,062 | 157.956 | $ | 168,635 | 7,658.028 | $ | 8,175,697 | |||||||||||||||
Net Asset Value per General and Limited Partners Unit Class A | ||
March 31, 2011 | December 31, 2010 | |
$1,067.60 | $1,118.77 | |
Partners Capital Class C(1) | ||||||||||||||||||||||||
General Partner | Limited Partner | Total | ||||||||||||||||||||||
Units | Amount | Units | Amount | Units | Amount | |||||||||||||||||||
Balances at December 31,
2010 |
7,500.072 | $ | 8,464,858 | 23.212 | $ | 26,197 | 7,523.284 | $ | 8,491,055 | |||||||||||||||
Additions |
0.000 | 0 | 22.240 | 25,001 | 22.240 | 25,001 | ||||||||||||||||||
Net income (loss) |
(339,847 | ) | (1,986 | ) | (341,833 | ) | ||||||||||||||||||
Offering costs |
(10,548 | ) | (38 | ) | (10,586 | ) | ||||||||||||||||||
Balances at March 31, 2011 |
7,500.072 | $ | 8,114,463 | 45.452 | $ | 49,174 | 7,545.524 | $ | 8,163,637 | |||||||||||||||
Net Asset Value per General and Limited Partners Unit Class C | ||
March 31, 2011 | December 31, 2010 | |
$1,081.92 | $1,128.64 | |
(1) | Class A Units and Class C Units commenced trading on June 1, 2010; therefore, no information is provided for the three months ended March 31, 2010. |
See Accompanying Notes to Financial Statements.
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Table of Contents
CAMPBELL GLOBAL TREND FUND, L.P.
GLOBAL TREND SERIES (USD)
FINANCIAL HIGHLIGHTS
For the Three Months Ended March 31, 2011 (Unaudited)
GLOBAL TREND SERIES (USD)
FINANCIAL HIGHLIGHTS
For the Three Months Ended March 31, 2011 (Unaudited)
The following information presents per unit operating performance data and other supplemental financial data for Class A units for the three months ended March 31, 2011. This information has been derived from information presented in the unaudited financial statements. |
Class A(5) | ||||
Three Months Ended | ||||
March 31, 2011 | ||||
Per Unit
Performance (for a unit outstanding throughout the entire period) |
||||
Net asset value per unit at beginning of period |
$ | 1,118.77 | ||
Income (loss) from operations: |
||||
Total net trading gains (losses) (1) |
(34.78 | ) | ||
Net investment income (loss)(1) |
(15.00 | ) | ||
Total net income (loss) from operations |
(49.78 | ) | ||
Offering costs (1) |
(1.39 | ) | ||
Net asset value per unit at end of period |
$ | 1,067.60 | ||
Total Return |
(4.57 | )% | ||
Supplemental Data |
||||
Ratios to average net asset value: |
||||
Expenses prior to performance fee (4) |
5.50 | % | ||
Performance fee (3) |
0.00 | % | ||
Total expenses |
5.50 | % | ||
Net investment income (loss) (2,4) |
(5.40 | )% | ||
Total returns are calculated based on the change in value of a unit during the period. An
individual unitholders total returns and ratios may vary from the above total returns and
ratios based on the timing of additions and redemptions.
(1) | Net investment income (loss) per unit and offering costs per unit are calculated by dividing the net investment income (loss) and offering costs by the average number of units outstanding during the period. Total net trading gains (losses) is a balancing amount necessary to reconcile the change in net asset value per unit with the other per unit information. | |
(2) | Excludes performance fee. | |
(3) | Not annualized | |
(4) | Annualized | |
(5) | Class A Units commenced trading on June 1, 2010; therefore, no information is provided for the three months ended December 31, 2010 |
See Accompanying Notes to Financial Statements.
-9-
Table of Contents
CAMPBELL GLOBAL TREND FUND, L.P.
GLOBAL TREND SERIES (USD)
FINANCIAL HIGHLIGHTS
For the Three Months Ended March 31, 2011 (Unaudited)
GLOBAL TREND SERIES (USD)
FINANCIAL HIGHLIGHTS
For the Three Months Ended March 31, 2011 (Unaudited)
The following information presents per unit operating performance data and other supplemental
financial data for Class C units for the three months ended March 31, 2011. This information has
been derived from information presented in the unaudited financial statements.
Class C(5) | ||||
Three Months Ended | ||||
March 31, 2011 | ||||
Per Unit
Performance (for a unit outstanding throughout the entire period) |
||||
Net asset value per unit at beginning of period |
$ | 1,128.64 | ||
Income (loss) from operations: |
||||
Total net trading gains (losses) (1) |
(35.20 | ) | ||
Net investment income (loss)(1) |
(10.11 | ) | ||
Total net income (loss) from operations |
(45.31 | ) | ||
Offering costs (1) |
(1.41 | ) | ||
Net asset value per unit at end of period |
$ | 1,081.92 | ||
Total Return |
(4.14 | )% | ||
Supplemental Data |
||||
Ratios to average net asset value: |
||||
Expenses prior to performance fee (4) |
3.70 | % | ||
Performance fee (3) |
0.00 | % | ||
Total expenses |
3.70 | % | ||
Net investment income (loss) (2,4) |
(3.60 | )% | ||
Total returns are calculated based on the change in value of a unit during the period. An
individual unitholders total returns and ratios may vary from the above total returns and
ratios based on the timing of additions and redemptions.
(1) | Net investment income (loss) per unit and offering costs per unit are calculated by dividing the net investment income (loss) and offering costs by the average number of units outstanding during the period. Total net trading gains (losses) is a balancing amount necessary to reconcile the change in net asset value per unit with the other per unit information. | |
(2) | Excludes performance fee. | |
(3) | Not annualized | |
(4) | Annualized | |
(5) | Class C Units commenced trading on June 1, 2010; therefore, no information is provided for the three months ended December 31, 2010 |
See Accompanying Notes to Financial Statements.
-10-
Table of Contents
CAMPBELL GLOBAL TREND FUND, L.P.
GLOBAL TREND SERIES (USD)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2011 (Unaudited)
GLOBAL TREND SERIES (USD)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2011 (Unaudited)
Note 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. | General Description of the Trust | |
Campbell Global Trend Fund, L.P. (the Fund) was formed as a Delaware series limited partnership pursuant to and in accordance with the provisions of the Delaware Revised Uniform Limited Partnership Act (the Act) on December 1, 2009. The Fund consists of two series (Series) the Global Trend Series (USD) and the Global Trend Series (GLD). The Act provides for the limitation of liability of each Series of the Fund to the debts, liabilities, obligations and expenses of such Series and not those of any other Series or the Fund in general. The Fund operates as a commodity investment pool and engages in the speculative trading of futures and forward currency contracts. | ||
The Global Trend Series (USD) seeks appreciation through trading a diversified portfolio of global futures and currencies pursuant to both traditional trend following and factor based trend following models (the Trend Following Portfolio). | ||
The Global Trend Series (GLD) seeks to provide investors with a gold-denominated exposure to the Trend Following Portfolio. The gold-denominated exposure is achieved by maintaining an exposure to gold by purchasing long positions in gold futures with a value approximately equal to the net asset value of the Series (the Gold Portfolio). The Global Trend Series (GLD) then seeks appreciation through a 100% overlay of the Trend Following Portfolio. | ||
The Global Trend Series (USD) consists of five classes of limited partnership Units: Class A (USD) Units, Class B (USD) Units, Class C (USD) Units, Class D (USD) Units and Class E (USD) Units. Only Class A (USD) Units, Class B (USD) Units, Class C (USD) Units and Class D (USD) Units will be offered. Class E (USD) Units are not being offered for sale but will be issued in exchange for Class A (USD) Units, Class B (USD) Units, Class C (USD) Units and Class D (USD) Units in certain circumstances. | ||
The Global Trend Series (GLD) consists of three classes of limited partnership Units: Class A (GLD) Units, Class B (GLD) Units and Class C (GLD) Units. Only Class A (GLD) Units and Class B (GLD) Units are being offered for sale. Class C (GLD) Units are not being offered for sale but will be issued in exchange for Class A (GLD) Units and Class B (GLD) Units in certain circumstances. | ||
The Fund was initially seeded with $1,000 each in Class A (USD), Class B (USD), Class C (USD), Class D (USD), Class A (GLD) and Class B (GLD) as of April 6, 2010. These amounts were redeemed before the Fund began trading on June 1, 2010. The Global Trend Series (GLD) has yet to commence trading. Therefore, the financial statements presented for the Global Trend Series (USD) are representative of the financial statements of the Campbell Global Trend Fund, L.P. in its entirety, as the Global Trend Series (GLD) has no activity to report as of the date of the financial statements. Refer to Note 10 regarding the Funds filing with Securities and Exchange Commission to merge the Global Trend Series (GLD) into the Global Trend Series (USD). | ||
B. | Regulation | |
As a registrant with the Securities and Exchange Commission, the Fund is subject to the regulatory requirements under the Securities Act of 1933 and the Securities Exchange Act of 1934. As a commodity investment pool, the Fund is subject to the regulations of the Commodity Futures Trading Commission, an agency of the United States (U.S.) government which regulates most aspects of the commodity futures industry; rules of the National Futures Association, an industry self-regulatory organization; and the requirements of the various commodity exchanges where the Fund executes transactions. Additionally, the Fund is subject to the requirements of futures commission merchants (brokers) and interbank market makers through which the Fund trades. | ||
C. | Method of Reporting | |
The Funds financial statements are presented in accordance with accounting principles generally accepted in the United States of America, which may require the use of certain estimates made by the Funds management. Actual results may differ from these estimates. | ||
Investment transactions are accounted for on the trade date. Gains or losses are realized when contracts are liquidated. Unrealized gains and losses on open contracts (the difference between contract trade price and market price) are reported in the statement of financial condition as a net gain or loss, as there exists a right of offset of unrealized gains or losses in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 210-20, Offsetting Balance Sheet. The fair value of futures (exchange-traded) contracts is determined by the various futures exchanges, and reflects the settlement price for each contract as of the close on the last business day of the reporting period. The fair value of forward currency (non-exchange traded) contracts was extrapolated on a forward basis from the spot prices quoted as of 3:00 P.M. (E.T.) on the last business day of the reporting period. | ||
For purposes of both financial reporting and calculation of redemption value, Net Asset Value per unit is calculated by dividing Net Asset Value by the number of outstanding units. | ||
The Fund adopted the provisions of ASC 820, Fair Value Measurements and Disclosures. ASC 820 provides guidance for determining fair value and requires increased disclosure regarding the inputs to valuation techniques used to measure fair value. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | ||
ASC 820 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). |
-11-
Table of Contents
CAMPBELL GLOBAL TREND FUND, L.P.
GLOBAL TREND SERIES (USD)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2011 (Unaudited)
GLOBAL TREND SERIES (USD)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2011 (Unaudited)
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. The value of the Funds exchange-traded futures contracts fall into this category. | ||
Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. This category includes forward currency contracts that the Fund values using models or other valuation methodologies derived from observable market data. This category also includes fixed income investments. | ||
Level 3 inputs are unobservable inputs for an asset or liability (including the Funds own assumptions used in determining the fair value of investments). Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. As of and for the period ended March 31, 2011, the Fund did not have any Level 3 assets or liabilities. | ||
In January 2010, the FASB issued Accounting Standards Update No. 2010-06 (ASU 2010-06) for improving disclosure about fair value measurements. ASU 2010-06 adds new disclosure requirements about transfers into and out of Levels 1 and 2 and separate disclosures about purchases, sales, issuances and settlements in the reconciliation for fair value measurements using significant unobservable inputs (Level 3). It also clarifies existing disclosure requirements relating to the levels of disaggregation for fair value measurement and inputs and valuation techniques used to measure fair value. As of January 1, 2010, the Fund adopted the provisions of ASC 2010-06 except for disclosures about purchases, sales, issuances and settlements in the rollforward of activity in Level 3 fair value measurements, which were adopted as of January 1, 2011. The adoption of the remaining provisions have not had a material impact on the Funds financial statement disclosures. | ||
The following table sets forth by level within the fair value hierarchy the Funds investments accounted for at fair value on a recurring basis as of March 31, 2011 and December 31, 2010. |
Fair Value at March 31, 2011 | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Exchange-traded futures contracts |
$ | 89,744 | $ | 0 | $ | 0 | $ | 89,744 | ||||||||
Forward currency contracts |
0 | (43,509 | ) | 0 | (43,509 | ) | ||||||||||
Total |
$ | 89,744 | $ | (43,509 | ) | $ | 0 | $ | 46,235 | |||||||
Fair Value at December 31, 2010 | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Exchange-traded futures contracts |
$ | 240,140 | $ | 0 | $ | 0 | $ | 240,140 | ||||||||
Forward currency contracts |
0 | 299,798 | 0 | 299,798 | ||||||||||||
Total |
$ | 240,140 | $ | 299,798 | $ | 0 | $ | 539,938 | ||||||||
The gross presentation of the fair value of the Funds derivatives by instrument type is shown in Note 7. See Condensed Schedule of Investments for additional detail categorization. | ||
D. | Cash and Cash Equivalents | |
Cash and cash equivalents includes cash and overnight money market investments at financial institutions. | ||
E. | Income Taxes | |
The Fund will prepare calendar year U.S. federal and applicable state information tax returns and report to the partners their allocable shares of the Funds income, expenses and trading gains or losses. No provision for income taxes has been made in the accompanying financial statements as each partner is individually responsible for reporting income or loss based on such partners respective share of the Funds income and expenses as reported for income tax purposes. | ||
Management has continued to evaluate the application of ASC 740, Income Taxes, to the Fund, and has determined that no reserves for uncertain tax positions were required. There are no tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within twelve months. The 2010 tax year generally remains subject to the examination by the U.S. federal and most state tax authorities. | ||
F. | Organization and Initial Offering Costs | |
Organization and initial offering costs were advanced by Campbell & Company, Inc. (Campbell & Company), the general partner. In addition, the general partner will incur all costs in connection with the continuous offering of units of the Fund. Each Class of Units, excluding Class E (USD) and Class C (GLD) , will be charged a monthly rate of 1/12 of 0.5% (0.5% annualized) of each Class of Units month-end net asset value (as defined in the Amended Agreement of Limited Partnership) until such amounts are fully reimbursed to the general partner. The reimbursement is limited to 2.5% of the total subscriptions accepted by the Fund. The Fund will only liable for payment of offering costs on a monthly basis. |
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CAMPBELL GLOBAL TREND FUND, L.P.
GLOBAL TREND SERIES (USD)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2011 (Unaudited)
GLOBAL TREND SERIES (USD)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2011 (Unaudited)
If the Fund terminates prior to completion of payment of such amounts to Campbell & Company, Campbell & Company will not be entitled to any additional payments and the Fund will have no further obligation. Organizational costs will be charged to expense as incurred and offering costs will be charged directly to partners capital. The amount of unreimbursed offering costs at March 31, 2011 and December 31, 2010 are $548,750 and $546,847, respectively. | ||
G. | Foreign Currency Transactions | |
The Funds functional currency is the U.S. dollar; however, it transacts business in currencies other than the U.S. dollar. Assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the rates in effect at the date of the statement of financial condition. Income and expense items denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the rates in effect during the period. Gains and losses resulting from the translation to U.S. dollars are reported in income. | ||
H. | Allocations | |
Income or loss for each Series (prior to calculation of the advisory fee, general partner fee, organization and offering costs, sales fee, broker-dealer custody fee and performance fee) is allocated pro rata for the each Class within the Series. Each Class of Units is then charged the advisory fee, general partner fee, organization and offering costs, sales fee, broker-dealer custody fee and performance fee applicable to such Class of Units. |
Note 2. | GENERAL PARTNER AND TRADING ADVISOR |
The general partner of the Fund is Campbell & Company, which conducts and manages the business of the Fund. Campbell & Company is also the trading advisor of the Fund. The Amended Agreement of Limited Partnership requires Campbell & Company to maintain a capital account in each Series equal to 1% of the net aggregate capital contributions of all partners in each Series or $25,000 whichever is greater. Additionally, Campbell & Company is required by the Amended Agreement of Limited Partnership to maintain a net worth so long as it acts as general partner equal to at least 5% of the capital contributed by all the limited partnerships for which it acts as general partner, including the Fund. The minimum required net worth shall in no case be less than $50,000 nor shall net worth in excess of $1,000,000 be required. | ||
Each Class of Units will pay a monthly advisory fee of 1/12 of 2% (2% annualized) and a monthly general partner fee of 1/12 of 1% (1% annualized) of such Class month-end net assets to Campbell & Company. | ||
Each Class of Units will pay Campbell & Company a quarterly performance fee equal to 20% of that Class of Units aggregate cumulative appreciation (as defined) in the net asset value per Unit, exclusive of appreciation attributable to interest income allocable to such Class of Units, and as adjusted for subscriptions and redemptions, on a cumulative high water mark basis. In determining the performance fee, net assets shall not be reduced by the performance fee being calculated. The performance fee is paid only on profits attributable to each Class of Units outstanding. The performance fee is accrued monthly, paid quarterly and is not subject to any clawback provisions. |
Note 3. | SALES FEE |
The Fund will pay the selling agents for Class A (USD) Units, Class B (USD) Units, and Class A (GLD) Units a sales fee of 2% of the subscription amount of each subscription for Class A (USD) Units, Class B (USD) Units, and Class A (GLD) Units. In addition, commencing thirteen months after the sale of Units and in return for providing ongoing services to the limited partners, the Fund will pay those selling agents (or their assignees) up to 1/12 of 2% (2% annually) of the month-end net asset value of Class A (USD) Units, Class B (USD) Units, and Class A (GLD) Units. | ||
The amount paid to selling agents on Class A (USD) Units, Class B (USD) Units and Class A (GLD) Units sold will not exceed 8.0% of the gross offering proceeds of the Class A (USD) Units and Class A (GLD) Units and 9.0% of the gross offering proceeds of the Global Trend Fund Class B (USD) Units sold. |
Note 4. | BROKER-DEALER CUSTODY FEE |
Class A (USD) Units, Class C (USD) Units, Class A (GLD) Units, and Class B (GLD) Units will pay a monthly broker-dealer custodial fee of 1/12 of 0.25% (0.25% annually) of each respective Class month-end net asset value (as defined) to the selling agents (the firm and not the individual). The total amount paid to the selling agents for such broker-dealer custodial fees per Unit will not exceed 1.0% of the gross offering proceeds of Class A (USD) of Units and Class A (GLD) Units and 6% of the gross offering proceeds of Class C (USD) Units and Class B (GLD) Units. |
Note 5. | OPERATING EXPENSES |
Operating expenses for each Class of Units in the Fund are restricted by the Amended Agreement of Limited Partnership to 0.50% per annum of the average month-end net asset value (as defined) of each Class of Units. Any operating expense which exceeds the 0.50% expense cap will be reimbursed by Campbell & Company. |
Note 6. | SUBSCRIPTIONS, DISTRIBUTIONS AND REDEMPTIONS |
Investments in the Fund are made by subscription agreement, subject to acceptance by Campbell & Company. | ||
The Fund is not required to make distributions, but may do so at the sole discretion of Campbell & Company. A limited partner may request and receive redemption of units owned, subject to restrictions in the Amended Agreement of Limited Partnership. Units are transferable, but no market exists for their sale and none is expected to develop. Monthly redemptions are permitted upon ten (10) business days advance written notice to Campbell & Company. |
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CAMPBELL GLOBAL TREND FUND, L.P.
GLOBAL TREND SERIES (USD)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2011 (Unaudited)
GLOBAL TREND SERIES (USD)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2011 (Unaudited)
Redemption fees apply to Class A (USD) Units, Class B (USD) Units and Class A (GLD) Units through the first twelve month-ends following purchase as follows: 1.833% of net asset value per redeemed Unit through the second month-end, 1.666% of net asset value per redeemed Unit through the third month-end, 1.500% of net asset value per redeemed Unit through the fourth month-end, 1.333% of net asset value per redeemed Unit through the fifth month-end, 1.167% of net asset value per redeemed Unit through the sixth month-end, 1.000% of net asset value per redeemed Unit through the seventh month-end, 0.833% of net asset value per redeemed Unit through the eighth month-end, 0.667% of net asset value per redeemed Unit through the ninth month-end, 0.500% of net asset value per redeemed Unit through the tenth month-end, 0.333% of net asset value per redeemed Unit through the eleventh month-end, 0.167% of net asset value per redeemed Unit through the twelfth month-end. The month-end as of which the Unit is purchased is counted as the first month-end. After the twelfth month-end following purchase of a Class A (USD) Unit, Class B (USD) Unit or Class A (GLD) Unit, no redemption fees apply. |
Note 7. | TRADING ACTIVITIES AND RELATED RISKS |
The Fund engages in the speculative trading of U.S. and foreign futures contracts and forward currency contracts (collectively, derivatives). Specifically, the Fund trades a portfolio focused on financial futures, which are instruments designed to hedge or speculate on changes in interest rates, currency exchange rates or stock index values, as well as metals, energy and agricultural values. The Fund is exposed to both market risk, the risk arising from changes in the fair value of the contracts, and credit risk, the risk of failure by another party to perform according to the terms of a contract. | ||
Purchase and sale of futures contracts requires margin deposits with the broker. Additional deposits may be necessary for any loss on contract value. The Commodity Exchange Act requires a broker to segregate all customer transactions and assets from such brokers proprietary activities. A customers cash and other property (for example, U.S. Treasury bills) deposited with a broker are considered commingled with all other customer funds subject to the brokers segregation requirements. In the event of a brokers insolvency, recovery may be limited to a pro rata share of segregated funds available. It is possible that the recovered amount could be less than total cash and other property deposited. | ||
The amount of required margin and good faith deposits with the broker and interbank market makers usually range from 10% to 30% of Net Asset Value. The cash deposited with interbank market makers at March 31, 2011 and December 31, 2010 was $1,168,599 and $997,000, respectively, which equals 7% and 6% of Net Asset Value, respectively. These amounts are included in cash and cash equivalents. Included in cash deposits with the broker and interbank market maker at March 31, 2011 and December 31, 2010 was restricted cash for margin requirements of $1,537,256 and $1,098,083 respectively, which equals 9% and 6% of Net Asset Value respectively. | ||
The Fund trades forward currency contracts in unregulated markets between principals and assumes the risk of loss from counterparty nonperformance. Accordingly, the risks associated with forward currency contracts are generally greater than those associated with exchange traded contracts because of the greater risk of counterparty default. Additionally, the trading of forward currency contracts typically involves delayed cash settlement. | ||
The Fund has a substantial portion of its assets on deposit with financial institutions. In the event of a financial institutions insolvency, recovery of Fund assets on deposit may be limited to account insurance or other protection afforded such deposits. | ||
For derivatives, risks arise from changes in the fair value of the contracts. Market movements result in frequent changes in the fair value of the Funds open positions and, consequently, in its earnings and cash flow. The Funds market risk is influenced by a wide variety of factors, including the level and volatility of exchange rates, interest rates, equity price levels, the fair value of financial instruments and contracts, the diversification effects among the Funds open positions and the liquidity of the markets in which it trades. Theoretically, the Fund is exposed to a market risk equal to the notional contract value of futures and forward currency contracts purchased and unlimited liability on such contracts sold short. See Note 1. C. for an explanation of how the Fund determines its valuation for derivatives as well as the netting of derivatives. | ||
The fair value of the Funds derivatives by instrument type, as well as the location of those instruments on the Statement of Financial Condition, as of March 31, 2011 and December 31, 2010 is as follows: |
Asset | Liability | |||||||||||||
Derivatives at | Derivatives at | |||||||||||||
Statement of Financial | March 31, 2011 | March 31, 2011 | ||||||||||||
Type of Instrument * | Condition Location | Fair Value | Fair Value | Net | ||||||||||
Agricultural Contracts | Equity in broker trading accounts |
$ | 56,032 | $ | (39,898 | ) | $ | 16,134 | ||||||
Energy Contracts | Equity in broker trading accounts |
80,744 | (2,850 | ) | 77,894 | |||||||||
Metal Contracts | Equity in broker trading accounts |
71,961 | (65,107 | ) | 6,854 | |||||||||
Stock Indices Contracts | Equity in broker trading accounts |
105,029 | (9,179 | ) | 95,850 | |||||||||
Short-Term Interest Rate Contracts | Equity in broker trading accounts |
25,256 | (46,838 | ) | (21,582 | ) | ||||||||
Long-Term Interest Rate Contracts | Equity in broker trading accounts |
21,168 | (106,574 | ) | (85,406 | ) | ||||||||
Forward Currency Contracts | Net unrealized gain (loss) on open
forward currency contracts |
449,654 | (493,163 | ) | (43,509 | ) | ||||||||
Totals | $ | 809,844 | $ | (763,609 | ) | $ | 46,235 | |||||||
* | Derivatives not designated as hedging instruments under ASC 815 |
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Table of Contents
CAMPBELL GLOBAL TREND FUND, L.P.
GLOBAL TREND SERIES (USD)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2011 (Unaudited)
GLOBAL TREND SERIES (USD)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2011 (Unaudited)
Asset | Liability | |||||||||||||
Derivatives at | Derivatives at | |||||||||||||
Statement of Financial | December 31, 2010 | December 31, 2010 | ||||||||||||
Type of Instrument * | Condition Location | Fair Value | Fair Value | Net | ||||||||||
Agricultural Contracts | Equity in broker trading accounts |
$ | 97,458 | $ | (13,467 | ) | $ | 83,991 | ||||||
Energy Contracts | Equity in broker trading accounts |
49,457 | (37,905 | ) | 11,552 | |||||||||
Metal Contracts | Equity in broker trading accounts |
131,354 | (5,483 | ) | 125,871 | |||||||||
Stock Indices Contracts | Equity in broker trading accounts |
78,515 | (57,686 | ) | 20,829 | |||||||||
Short-Term Interest Rate Contracts | Equity in broker trading accounts |
23,451 | (2,373 | ) | 21,078 | |||||||||
Long-Term Interest Rate Contracts | Equity in broker trading accounts |
15,285 | (38,466 | ) | (23,181 | ) | ||||||||
Forward Currency Contracts | Net unrealized gain (loss) on
open forward
currency contracts |
587,615 | (287,817 | ) | 299,798 | |||||||||
Totals | $ | 983,135 | $ | (443,197 | ) | $ | 539,938 | |||||||
* | Derivatives not designated as hedging instruments under ASC 815 |
The trading revenue of the Funds derivatives by instrument type, as well as the
location of those gains and losses on the Statement of Operations, for the period ended
March 31, 2011 is as follows:
Trading Revenue for | ||||
the Three Months Ended | ||||
Type of Instrument | March 31, 2011 | |||
Agricultural Contracts |
$ | 29,974 | ||
Energy Contracts |
401,652 | |||
Metal Contracts |
(88,434 | ) | ||
Stock Indices Contracts |
(353,856 | ) | ||
Short-Term Interest Rate Contracts |
(154,530 | ) | ||
Long Term Interest Rate Contracts |
(175,287 | ) | ||
Forward Currency Contracts |
(171,953 | ) | ||
Total |
$ | (512,434 | ) | |
Trading Revenue for | ||||
the Three Months Ended | ||||
Line Item in the Statement of Operations | March 31, 2011 | |||
Futures trading gains (losses): |
||||
Realized |
$ | (190,085 | ) | |
Change in unrealized |
(150,396 | ) | ||
Forward currency trading gains (losses): |
||||
Realized |
171,354 | |||
Change in unrealized |
(343,307 | ) | ||
Total |
$ | (512,434 | ) | |
For the three months ended March 31, 2011, the monthly average of futures contracts
bought and sold was approximately 930, and the monthly average of notional value of forward
currency contracts was $51,270,000.
Open contracts generally mature within twelve months; as of March 31, 2011, the latest maturity
date for open futures contracts is June 2012 and the latest maturity date for open forward
currency contracts is June 2011. However, the Fund intends to close all futures and foreign
currency contracts prior to maturity.
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Table of Contents
CAMPBELL GLOBAL TREND FUND, L.P.
GLOBAL TREND SERIES (USD)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2011 (Unaudited)
GLOBAL TREND SERIES (USD)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2011 (Unaudited)
Campbell & Company has established procedures to actively monitor market risk and minimize credit risk, although there can be no assurance that it will, in fact, succeed in doing so. Campbell & Companys basic market risk control procedures consist of continuously monitoring open positions, diversification of the portfolio and maintenance of a margin-to-equity ratio that rarely exceeds 30%. Campbell & Companys attempt to manage the risk of the Funds open positions is essentially the same in all market categories traded. Campbell & Company applies risk management policies to its trading which generally limit the total exposure that may be taken per risk unit of assets under management. In addition, Campbell & Company follows diversification guidelines (often formulated in terms of the balanced volatility between markets and correlated groups), as well as reducing position sizes dynamically in response to trading losses. Campbell & Company controls the risk of the Funds non-trading fixed income instruments by limiting the duration of such instruments and requiring a minimum credit quality of the issuers of those instruments. | ||
Campbell & Company seeks to minimize credit risk primarily by depositing and maintaining the Funds assets at financial institutions and brokers which Campbell & Company believes to be credit worthy. The limited partners bears the risk of loss only to the extent of the market value of their respective investments and, in certain specific circumstances, distributions and redemptions received. |
Note 8. | INDEMNIFICATIONS |
In the normal course of business, the Fund enters into contracts and agreements that contain a variety of representations and warranties which provide general indemnifications. The Funds maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. The Fund expects the risk of any future obligation under these indemnifications to be remote. |
Note 9. | INTERIM FINANCIAL STATEMENTS |
The statement of financial condition, including the condensed schedule of investments, as of March 31, 2011 and December 31, 2010 , and the statement of operations, cash flows, changes in partners capital (Net Asset Value) and financial highlights for the three months ended March 31, 2011 are unaudited. In the opinion of management, such financial statements reflect all adjustments, which were of a normal and recurring nature, necessary for a fair presentation of financial position as of March 31, 2011, and the results of operations, cash flows, changes in partners capital (Net Asset Value) and financial highlights for the three months ended March 31, 2011. |
Note 10. | SUBSEQUENT EVENTS |
Management of the Fund has evaluated subsequent events through the date the financial statements were filed. Other than the following, there are no subsequent events to dislose or record. On March 18, 2011, the Fund filed a registration statement with the Securities and Exchange Commission to merge the Global Trend Series (GLD) into the Global Trend Series (USD). The registration became effective on May 2, 2011. |
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Table of Contents
Item 2. Managements Discussion and Analysis of Financial Condition and
Results of Operations
Introduction
The Campbell Global Trend Fund L.P. (the Registrant or the Fund) was formed as a Delaware
series limited partnership on December 1, 2009. The Registrant operates as a commodity
investment pool, whose purpose is to trade speculatively in the U.S. and international futures
and forward markets. Specifically, the Fund trades a portfolio primarily focused on financial
futures, which are instruments designed to hedge or speculate on changes in interest rates,
currency exchange rates or stock index values. A secondary emphasis is on metals, energy and
agricultural values.
The general partner and trading advisor of the Registrant is Campbell & Company, Inc.
(Campbell & Company). In addition to making all trading decisions in its capacity as trading
advisor, Campbell & Company conducts and manages all aspects of the business and
administration of the Registrant in its role as general partner. Campbell & Company uses a
systematic trading approach combined with quantitative portfolio management analysis and seeks
to identify and profit from price movements in futures and forward markets. Multiple trading
models are utilized across most markets traded. Each model analyzes market movements and
internal market and price configurations in order to generate signals to be executed through a
variety of execution platforms.
As a registrant with the Securities and Exchange Commission, the Fund is subject to the
regulatory requirements under the Securities Act of 1934. As a commodity investment pool, the
Fund is subject to the provisions of the Commodity Exchange Act, regulations of the Commodity
Futures Trading Commission, an agency of the United States (U.S.) government which regulates
most aspects of the commodity futures industry; rules of the National Futures Association, an
industry self-regulatory organization; and the requirements of the various commodity exchanges
where the Fund executes transactions. Additionally, the Fund is subject to the requirements of
futures commission merchants (brokers) and interbank market makers through which the Fund
trades.
The Global Trend Fund currently consists of two series (Series) the Global Trend Series
(USD) and the Global Trend Series (GLD). The general partner has formed the Global Trend Fund
as a series limited partnership pursuant to and in accordance with the provisions of the
Delaware Revised Uniform Limited Partnership Act (6 Del. C. § 17-101 et seq., as amended from
time to time, the Act). The Act provides for the limitation of liability of each Series to
the debts, liabilities, obligations and expenses of such Series and not those of any other
Series or the Global Trend Fund in general. The Global Trend Series (USD) seeks to provide
investors with a U.S. Dollar-denominated exposure to the Campbell Trend Following Portfolio.
The Global Trend Series (USD) will trade pursuant to the Campbell Trend Following Portfolio.
The Trend Following Portfolio includes both traditional trend following and factor based trend
following models. The Campbell Trend Following Portfolio employs the same traditional and
factor-based trend following models that the FME Large Portfolio employs, but does not employ
the macroeconomic-based models employed by the FME Large Portfolio. The Global Trend Series
(GLD) trades the Trend Following (GLD) Portfolio, which seeks to provide investors with a
gold-denominated exposure to the Campbell Trend Following Portfolio.
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Table of Contents
The Global Trend Fund (USD) began trading on June 1, 2010. As of March 31, 2011, the Global
Trend Series (GLD) has not commenced trading and does not have any performance history. On
March 18, 2011, the Fund filed a registration statement with the Securities and Exchange
Commission to merge the Global Trend Series (GLD) into the Global Trend Series (USD). The
registration became effective on May 2, 2011.
As of March 31, 2011, the aggregate capitalization of the Global Trend Fund was $16,339,334
with Class A and Class C comprising $8,175,697 and $8,163,637, respectively, of the total.
The Net Asset Value per Unit was $1,067.60 for Class A and $1,081.92 for Class C. No units
have been issued for Class B, Class D or Class E.
Critical Accounting Policies
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosures of contingent assets and
liabilities at the date of the financial statements and the reported amounts of income and
expense during the reporting period. Management believes that the estimates utilized in
preparing the financial statements are reasonable and prudent; however, actual results could
differ from those estimates. The Funds significant accounting policies are described in Note
1 of the Financial Statements.
The Fund will record all investments at fair value in its financial statements, with changes
in fair value reported as a component of change in unrealized trading gain (loss) in the
Statements of Operations. Generally, fair values are based on market prices; however, in
certain circumstances, estimates are involved in determining fair value in the absence of an
active market closing price (e.g. forward contracts which are traded in the inter-bank
market).
Capital Resources
The selling agents will offer the Fund Units during the initial offering period, and
thereafter through the sale of Units offered pursuant to the continuing offering. The Fund
does not intend to raise any capital through borrowing. 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.
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. Once
the price of a futures contract has reached the daily limit for that day, positions in that
contract can neither be taken nor liquidated. Futures prices have occasionally moved to 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. Other than these limitations on liquidity, which are inherent in the Funds futures
trading operations, the Funds assets are expected to be highly liquid.
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Table of Contents
The entire offering proceeds, without deductions, will be credited to the Funds bank and
brokerage accounts to engage in trading activities and as reserves for that trading. The Fund
will meet margin requirements for its trading activities by depositing cash or U.S. government
securities with the futures broker and the over-the-counter counterparty. In this way,
substantially all (i.e., 95% or more) of the Funds assets, whether used as margin for trading
purposes or as reserves for such trading, can be invested in U.S. government securities and
time deposits with U.S. banks. This does not reduce the risk of loss from trading futures and
forward contracts. The Fund will receive all interest earned on its assets. No other person
shall receive any interest or other economic benefits from the deposit of the Funds assets.
Approximately 10% to 30% of the Funds assets will normally be committed as required margin
for futures contracts and held by the futures broker, although the amount committed may vary
significantly. Such assets will be maintained in the form of cash or U.S. Treasury bills in
segregated accounts with the futures brokers pursuant to the Commodity Exchange Act and
regulations thereunder. Approximately 10% to 30% of the Funds assets will be deposited with
over-the-counter counterparty in order to initiate and maintain forward contracts. Such assets
are not held in segregation or otherwise regulated under the Commodity Exchange Act, unless
such over-the-counter counterparty is registered as a futures commission merchant. These
assets will be held either in U.S. government securities or short-term time deposits with
U.S.-regulated bank affiliates of the over-the-counter counterparty. The remaining 40% to 80%
of the Trusts assets may be invested in cash equivalents, such as U.S. Treasury bills, and
held by the futures broker or the over-the-counter counterparties.
The Trust may occasionally receive margin calls (requests to post more collateral) from its
futures broker or over-the-counter counterparties, which will be met by moving the required
portion of the assets held in bank or other brokerage accounts to the account on margin call.
The Fund has not needed to liquidate any position as a result of a margin call.
The Funds assets will not be, directly or indirectly, commingled with the property of any
other person in violation of law or invested with or loaned to Campbell & Company or any
affiliated entities.
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 future obligation or loss. The
Fund will trade in futures and forward contracts and therefore will be a party to financial
instruments with elements of off-balance sheet market and credit risk. In entering into these
contracts there exists a risk to the Fund, market risk, that such contracts may be
significantly influenced by market 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 the Funds trading advisor was unable
to offset futures interests positions of the Fund, the Fund could lose all of its assets and
the Limited Partners would realize a 100% loss. Campbell & Company, as general partner of the
Fund (who also acts as trading advisor) minimizes market risk through real-time monitoring of
open positions, diversification of the portfolio and maintenance of a margin-to-equity ratio
that rarely exceeds 30%.
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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.
In the case of forward contracts, which are traded on the interbank market rather than on
exchanges, the counterparty is generally a single bank or other financial institution, rather
than a group of financial institutions; thus there may be a greater counterparty credit risk.
Campbell & Company will trade for the Fund only with those counterparties which it believes to
be creditworthy. All positions of the Fund will be valued each day on a mark-to-market basis.
There can be no assurance that any clearing member, clearinghouse or other counterparty will
be able to meet its obligations to the Fund.
Disclosures About Certain Trading Activities that Include Non-Exchange Traded Contracts
Accounted for at Fair Value
The Fund invests in futures and forward currency contracts. The fair value of futures
(exchange-traded) contracts is determined by the various futures exchanges, and reflects the
settlement price for each contract as of the close of the last business day of the reporting
period. The fair value of forward (non-exchange traded) contracts is extrapolated on a forward
basis from the spot prices quoted as of 3:00 P.M. (E.T.) of the last business day of the
reporting period.
Results of Operations
The returns for the three months ending March 31, 2011 for Class A and Class C were (4.57)%
and (4.14)%, respectively. During this period, the Fund accrued advisory and general partner
fees in the amount of $126,233, and paid advisory and general partner fees in the amount of
$128,551. The Fund accrued performance fees in the amount of $0, and paid performance fees in
the amount of $221,369 during this period.
2011
Of the 2011 year-to-date decrease of (4.57)% for Class A, approximately (3.03)% was due to
trading losses (before commissions) and approximately (1.56)% due to brokerage fees,
management fees, selling agent fees, offering costs and operating expenses borne by Class A,
offset by approximately 0.02% due to investment income.
Of the 2011 year-to-date decrease of (4.14)% for Class C, approximately (3.03)% was due to
trading losses (before commissions) and approximately (1.13)% due to brokerage fees,
management fees, offering costs and operating expenses borne by Class C, offset by
approximately 0.02% due to investment income.
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An analysis of the 3.03% trading loss by sector is as follows:
Sector | % Gain (Loss) | |||
Commodities |
2.04 | % | ||
Currencies |
(1.02 | ) | ||
Interest Rates |
(1.95 | ) | ||
Stock Indices |
(2.10 | ) | ||
(3.03) | % | |||
2011 started with global equities trending higher, fueled by improving U.S. labor market
conditions, a pro-business move toward the center by President Obama, stronger corporate
earnings and a general rotation from fixed income into stocks. The Funds long equity
positions made the sector the best performer for the month, in the face of such a rising
global equity environment. Commodity trading also produced gains for the month from the Funds
long positions in agricultural and energy contracts. Most energy contracts exploded to 24
month highs on strong global demand due to cold weather in the U.S. / U.K. and civil unrest in
the Middle East. Cotton started 2011 up over 16% for the month on surging demand from the
worlds biggest consumer, China. Currency trading on the month proved difficult as the Funds
short position in the U.S. Dollar generated losses as emerging market risk aversion was
prompted by the Egyptian anti-government protests. Additional losses were recorded in the
fixed income markets from the Funds long position in short-term European rates. The bond
market was choppy during the first part of January until concerns were raised about Euro-zone
inflation, causing a sell-off in short-term rates as market participants began pricing in
future rate hikes.
In February, geo-political concerns, centering on the growing Middle East/North African (MENA)
populist uprising, overwhelmed commodity markets. This regional tension generated significant
price movements in the energy sector fueling gains for the Fund. Precious Metals, including
gold and silver, were also strong contributors, along with soft commodities such as cotton
(+17% during the month) and coffee as they continued their upward trends. Despite the MENA
unrest, additional gains were recorded in equity trading on improving macroeconomic data
supporting the global recovery theme. Currency trading took its cue from the energy complex
during the month, as investors grew cautious about global monetary policy. While some of the
major currencies rallied during the month, others like the New Zealand Dollar fell
dramatically on the devastation of a massive earthquake in the Christchurch region. In the
aggregate, currency trading was marginally positive on the month for the Fund. Fixed Income
trading finished slightly negative as price action was choppy across the global, mainly from
better economic data in the early part of the month followed by risk aversion in the second
half of the month.
-21-
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The
V-shaped behavior in most sectors during March can be widely attributed to global stock
market volatility compounded by the devastating earthquake and resulting tsunami in Japan,
followed by upside surprises to manufacturing data and other economic activity as the month
came to a close. Global stock markets were extremely volatile as the Middle East/North Africa
(MENA) unrest and Europes sovereign debt crisis both worsened prior to the crisis in Japan
that concluded with threats of a nuclear reactor emergency. While the Nikkei finished down
approximately 8% for March, the U.S. stock market was relatively unchanged despite large
mid-month swings. The Trusts models adjusted to the abrupt price swings by reducing long
equity exposure over 50% (region specific) by mid-month across the U.S., Europe and Asia.
Stock indices trading was the worst performing sector for March. Commodities took their cue
from the Equity markets in reacting to the twin shocks, with particular impact on base metal
prices. Risk-aversion-based gains from long positions in energies and precious metals were not
enough to overcome losses in nickel, copper and corn. Currency trading also proved challenging
as Central Banks intervened, in a resolute way, in response to excess volatility and
disorderly movements in exchange rates that were perceived as having adverse implications for
economic and financial stability. In particular, the Trusts short position in the Japanese
Yen suffered as a result of the repatriation of Yen back to Japan. While risk exposures were
light in fixed income trading, small losses were incurred in both short-term and long-term
rates due to choppy market price action.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Introduction
Past Results Not Necessarily Indicative of Future Performance
The Fund is a speculative commodity pool. The market sensitive instruments held by it are
acquired for speculative trading purposes, and all or a substantial amount of the Funds
assets are subject to the risk of trading loss. Unlike an operating company, the risk of
market sensitive instruments is integral, not incidental, to the Funds main line of business.
Market movements result in frequent changes in the fair market value of the Funds open
positions and, consequently, in its earnings and cash flow. The Funds market risk is
influenced by a wide variety of factors, including the level and volatility of exchange rates,
interest rates, equity price levels, the market value of financial instruments and contracts,
the diversification effects among the Funds open positions and the liquidity of the markets
in which it trades.
The Fund rapidly acquires and liquidates both long and short positions in a wide range of
difference markets. Consequently, it is not possible to predict how a particular future
market scenario will affect performance, and the Funds past performance is not necessarily
indicative of its futures results.
Standard of Materiality
Materiality as used in this section, Quantitative and Qualitative Disclosures About Market
Risk, is based on an assessment of reasonably possible market movements and the potential
losses caused by such movements, taking into account the leverage and multiplier features of
the Funds market sensitive instruments.
Quantifying the Funds Trading Value at Risk
-22-
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Quantitative Forward-Looking Statements
The following quantitative disclosures regarding the Funds market risk exposures contain
forward-looking statements within the meaning of the safe harbor from civil liability
provided for such statements by the Private Securities Litigation Reform Act of 1995 (set
forth in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934). All quantitative disclosures in this section are deemed to be forward-looking
statements for purposes of the safe harbor, except for statements of historical fact (such as
the dollar amount of maintenance margin required for market risk sensitive instruments held at
the end of the reporting period).
The Funds risk exposure in the various market sectors traded is estimated in terms of Value
at Risk (VaR). The Fund estimates VaR using a model based upon historical simulation (with a
confidence level of 97.5%) which involves constructing a distribution of hypothetical daily
changes in the value of a trading portfolio. The VaR model takes into account linear
exposures to risks, including equity and commodity prices, interest rates, foreign exchange
rates, and correlation among these variables. The hypothetical changes in portfolio value are
based on daily percentage changes observed in key market indices or other market factors to
which the portfolio is sensitive. The Funds VaR at a one day 97.5% confidence level of the
Funds VaR corresponds to the negative change in portfolio value that, based on observed
market risk factors, would have been exceeded once in 40 trading days or one day in 40. VaR
typically does not represent the worst case outcome.
The Fund uses approximately one quarter of daily market data and revalues its portfolio for
each of the historical market moves that occurred over this time period. This generates a
probability distribution of daily simulated profit and loss outcomes. The VaR is the 2.5
percentile of this distribution.
The VaR for a sector represents the one day downside risk for the aggregate exposures
associated with this sector. The current methodology used to calculate the aggregate VaR
represents the VaR of the Funds open positions across all market sectors, and is less than
the sum of the VaRs for all such market sectors due to the diversification benefit across
asset classes.
The Funds VaR computations are based on the risk representation of the underlying benchmark
for each instrument or contract and does not distinguish between exchange and non-exchange
dealer-based instruments. It is also not based on exchange and/or dealer-based maintenance
margin requirements.
VaR models, including the Funds, are continually evolving as trading portfolios become
more diverse and modeling techniques and systems capabilities improve. Please note that the
VaR model is used to numerically quantify market risk for historic reporting purposes only and
is not utilized by the Fund in its daily risk management activities. Please further note that
VaR as described above may not be comparable to similarly titled measures used by other
entities.
-23-
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Because the business of the Fund is the speculative trading of futures and forwards, the
composition of the Funds trading portfolio can change significantly over any given time
period, or even within a single trading day, which could positively or negatively materially
impact market risk as measured by VaR.
The Funds Trading Value at Risk in Different Market Sectors
The following table indicates the trading Value at Risk associated with the Funds open
positions by market category as of March 31, 2011 and December 31, 2010 and the trading
gains/losses by market category for the three months ended March 31, 2011 and the period June
1 (commencement of trading) through December 31, 2010.
March 31, 2011 | ||||||||
Trading | ||||||||
Market Sector | Value at Risk* | Gain/(Loss)** | ||||||
Stock Indices |
1.05 | % | (2.10 | )% | ||||
Commodities |
1.02 | % | 2.04 | % | ||||
Currencies |
0.66 | % | (1.02 | )% | ||||
Interest Rates |
0.31 | % | (1.95 | )% | ||||
Aggregate/Total |
2.29 | % | (3.03 | )% | ||||
* | The VaR for a sector represents the one day downside risk for the aggregate exposures associated with this sector. The aggregate VaR represents the VaR of the Funds open positions across all market sectors, and is less than the sum of the VaRs for all such market sectors due to the diversification benefit across asset classes. | |
** | Represents the gross trading for the Trust for the three months ended March 31, 2011. |
Of the 2011 year-to-date decrease of (4.57)% for Class A, approximately (3.03)% was due to
trading losses (before commissions) and approximately (1.56)% due to brokerage fees,
management fees, selling agent fees, offering costs and operating expenses borne by Class A,
offset by approximately 0.02% due to investment income.
Of the 2011 year-to-date decrease of (4.14)% for Class C, approximately (3.03)% was due to
trading losses (before commissions) and approximately (1.13)% due to brokerage fees,
management fees, offering costs and operating expenses borne by Class C, offset by
approximately 0.02% due to investment income.
-24-
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December 31, 2010 | ||||||||
Trading | ||||||||
Market Sector | Value at Risk* | Gain/(Loss)** | ||||||
Commodities |
0.83 | % | 6.08 | % | ||||
Stock Indices |
0.61 | % | 2.66 | % | ||||
Interest Rates |
0.56 | % | 6.28 | % | ||||
Currencies |
0.55 | % | 3.47 | % | ||||
Aggregate/Total |
1.95 | % | 18.49 | % | ||||
* | The VaR for a sector represents the one day downside risk for the aggregate exposures associated with this sector. The aggregate VaR represents the VaR of the Funds open positions across all market sectors, and is less than the sum of the VaRs for all such market sectors due to the diversification benefit across asset classes. | |
** | Represents the gross trading for the Trust for the period June 1 (commencement of trading) through December 31, 2010. |
Of the 11.88% return for the period June 1 (commencement of trading) through December 31, 2010
for Class A, approximately 18.49% was due to trading gains (before commissions) and
approximately 0.04% due to investment income, offset by approximately (6.65)% due to brokerage
fees, management fees, selling agent fees, offering costs and operating expenses borne by
Class A.
Of the 12.86% return for the period June 1 (commencement of trading) through December 31, 2010
for Class C, approximately 18.49% was due to trading gains (before commissions) and
approximately 0.04% due to investment income, offset by approximately (5.67)% due to brokerage
fees, management fees, offering costs and operating expenses borne by Class C.
Material Limitations of Value at Risk as an Assessment of Market Risk
The following limitations of VaR as an assessment of market risk should be noted:
1) | Past changes in market risk factors will not always result in accurate predictions of the distributions and correlations of future market movements; | |
2) | Changes in portfolio value caused by market movements may differ from those of the VaR model; | |
3) | VaR results reflect past trading positions while future risk depends on future positions; | |
4) | VaR using a one day time horizon does not fully capture the market risk of positions that cannot be liquidated or hedged within one day; and | |
5) | The historical market risk factor data for VaR estimation may provide only limited insight into losses that could be incurred under certain unusual market movements. |
VaR is not necessarily representative of historic risk nor should it be used to predict the
Funds future financial performance or its ability to manage and monitor risk. There can be
no assurance that the Funds actual losses on a particular day will not exceed the VaR amounts
indicated or that such losses will not occur more than once in 40 trading days.
-25-
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Non-Trading Risk
The Fund has non-trading market risk on its foreign cash balances not needed for margin.
However, these balances (as well as the market risk they represent) are immaterial. The Fund
may also incur non-trading market risk as a result of investing a portion of its available
assets in U.S. Treasury Bills held at the broker and over-the-counter counterparty. The
market risk represented by these investments is minimal.
Qualitative Disclosures Regarding Primary Trading Risk Exposures
The following qualitative disclosures regarding the Funds market risk exposures except for
(i) those disclosures that are statements of historical fact and (ii) the descriptions of how
the Fund manages its primary market risk exposures constitute forward-looking statements
within the meaning of Section 27A of the Securities Act and Section 21E of the Securities
Exchange Act. The Funds primary market risk exposures as well as the strategies used and to
be used by Campbell & Company for managing such exposures are subject to numerous
uncertainties, contingencies and risks, any one of which could cause the actual results of the
Funds risk controls to differ materially from the objectives of such strategies. Government
interventions, defaults and expropriations, illiquid markets, the emergence of dominant
fundamental factors, political upheavals, changes in historical price relationships, an influx
of new market participants, increased regulation and many other factors could result in
material losses as well as in material changes to the risk exposures and the risk management
strategies of the Fund. There can be no assurance that the Funds current market exposure
and/or risk management strategies will not change materially or that any such strategies will
be effective in either the short- or long-term. Investors must be prepared to lose all or
substantially all of their investment in the Fund.
The following were the primary trading risk exposures of the Fund as of March 31, 2011, by
market sector.
Currencies
Exchange rate risk can be a significant market exposure of the Fund. The Funds currency
exposure is to foreign exchange rate fluctuations, primarily fluctuations which disrupt the
historical pricing relationships between different currencies and currency pairs. These
fluctuations are influenced by interest rate changes as well as political and general economic
conditions. The Fund trades in a large number of currencies, including cross-rates i.e.,
positions between two currencies other than the U.S. Dollar. Campbell & Company does not
anticipate that the risk profile of the Funds currency sector will change significantly in
the future.
-26-
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Interest Rates
Interest rate risk can be a significant market exposure of the Fund. Interest rate movements
directly affect the price of the sovereign bond positions held by the Fund and indirectly the
value of its stock index and currency positions. Interest rate movements in one country as
well as relative interest rate movements between countries materially impact the Funds
profitability. The Funds primary interest rate exposure is to interest rate fluctuations in
the United States and the other G-7 countries. Campbell & Company anticipates that G-7
interest rates will remain the primary rate exposure of the Fund for the foreseeable future.
Changes in the interest rate environment will have the most impact on longer dated fixed
income positions, at points of time throughout the year the majority of the speculative
positions held by the Fund may be held in medium to long-term fixed income positions.
Stock Indices
The Funds primary equity exposure is to equity price risk in the G-7 countries and several
other countries (Hong Kong, Spain, the Netherlands and Taiwan). The stock index futures
traded by the Fund are by law limited to futures on broadly based indices. The Fund is
primarily exposed to the risk of adverse price trends or static markets in the major U.S.,
European and Japanese indices. Markets that trade in a narrow range could result in the
Funds positions being whipsawed into numerous small losses.
Energy
The Funds primary energy market exposure is to natural gas, crude oil and derivative product
price movements, often resulting from international political developments and ongoing
conflicts in the Middle East and the perceived outcome. Oil and gas prices can be volatile
and substantial profits and losses have been and are expected to continue to be experienced in
this market.
Metals
The Funds metals market exposure is to fluctuations in the price of aluminum, platinum, gold,
silver, copper, nickel, and zinc.
Agricultural
The Funds agricultural exposure is to the fluctuations in the price of wheat, corn, coffee,
cocoa, sugar, soy, hogs, cattle, canola oil and cotton.
Qualitative Disclosures Regarding Non-Trading Risk Exposure
The following were the primary non-trading risk exposures of the Fund as of March 31, 2011.
Foreign Currency Balances
The Funds primary foreign currency balances are in Australian Dollar, Japanese Yen, British
Pounds and Euros. The Fund controls the non-trading risk of these balances by regularly
converting these balances back into dollars (no less frequently than twice a month, and more
frequently if a particular foreign currency balance becomes unusually large).
-27-
Table of Contents
Qualitative Disclosures Regarding Means of Managing Risk Exposure
The means by which the Fund and Campbell & Company, severally, attempt to manage the risk of
the Funds open positions is essentially the same in all market categories traded. Campbell &
Company applies risk management policies to its trading which generally limit the total
exposure that may be taken per risk unit of assets under management. In addition, Campbell
& Company follows diversification guidelines (often formulated in terms of the balanced
volatility between markets and correlated groups), as well as reducing position sizes
dynamically in response to trading losses.
General
The Fund is unaware of any (i) anticipated known demands, commitments or capital expenditures;
(ii) material trends, favorable or unfavorable, in its capital resources; or (iii) trends or
uncertainties that will have a material effect on operations. From time to time, certain
regulatory agencies have proposed increased margin requirements on futures contracts. Because
the Fund generally will use a small percentage of assets as margin, the Fund does not believe
that any increase in margin requirements, as proposed, will have a material effect on the
Funds operations.
Item 4. Controls and Procedures
Campbell & Company, Inc., the general partner of the Fund, with the participation of the
general partners Chief Executive Officer and Chief Financial Officer, has evaluated the
effectiveness of the design and operation of its disclosure controls and procedures (as
defined in the Securities Exchange Act of 1934 Rules 13a-15(e) or 15d-15(e)) with respect to
the Fund as of the end of the period covered by this quarterly report. Based on their
evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that these
disclosure controls and procedures are effective. There were no changes in the general
partners internal control over financial reporting applicable to the Fund identified in
connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or
15d-15 that occurred during the last fiscal quarter that have materially affected, or is
reasonably likely to materially affect, internal control over financial reporting applicable
to the Fund.
-28-
Table of Contents
PART II-OTHER INFORMATION
Item 1. Legal Proceedings.
None
Item 1A. Risk Factors.
Note
Item 2. Changes in Securities and Use of Proceeds.
None
Item 3. Defaults Upon Senior Securities.
Not applicable.
Item 4. (Removed and Reserved).
Item 5. Other Information.
None
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
Exhibit | ||
Number | Description of Document | |
31.01
|
Certification of Theresa D. Becks, Chief Executive Officer, pursuant to Rules 13a-14 and 15d-14 of the Securities Exchange Act of 1934. | |
31.02
|
Certification of Gregory T. Donovan, Chief Financial Officer, pursuant to Rules 13a-14 and 15d-14 of the Securities Exchange Act of 1934. | |
32.01
|
Certification of Theresa D. Becks, Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as enacted by Section 906 of The Sarbanes-Oxley Act of 2002. | |
32.02
|
Certification of Gregory T. Donovan, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as enacted by Section 906 of The Sarbanes-Oxley Act of 2002. |
(b) Reports of Form 8-K
None.
-29-
Table of Contents
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.
CAMPBELL GLOBAL TREND FUND, L.P. (Registrant) |
||||
By: | Campbell & Company, Inc. | |||
General Partner | ||||
Date: May 16, 2011 | By: | /s/ Theresa D. Becks | ||
Theresa D. Becks | ||||
Chief Executive Officer |
-30-
Table of Contents
EXHIBIT INDEX
Exhibit Number | Description of Document | Page Number | ||
31.01
|
Certification by Chief Executive Officer | E 2 - E 3 | ||
31.02
|
Certification by Chief Financial Officer | E 4 - E 5 | ||
32.01
|
Certification by Chief Executive Officer | E 6 | ||
32.02
|
Certification by Chief Financial Officer | E 7 |
-E1-