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UNITED STATES
 
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
 
FORM 10-Q/A
(Amendment No. 1)
 
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
 
SECURITIES EXCHANGE ACT OF 1934
 
For the Quarterly Period Ended June 30, 2011
 
( ) TRANSITION REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE
 
SECURITIES EXCHANGE ACT OF 1934
 
For the Transition Period From ____ T O___
 
Commission File No. 000-53118
 
BRIDGETON GLOBAL DIRECTIONAL FUND, LP
 
Delaware
20-8870560
(a Delaware Partnership)
(I.R.S. Employer
 
Identification No.)
 
7535 Windsor Drive, Suite A205
Allentown, PA 18195
(610) 366-3922
 
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
     X       
NO ____
 
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 ( No
 
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 definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
 
Large Accelerated Filer______
Accelerated Filer ______
Non-accelerated filer   ______
                                    (do not check if a Smaller reporting company)
Smaller Reporting Company    X 
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
 
YES
____
NO    X      
 
 

 
EXPLANATORY NOTE

BRIDGETON GLOBAL DIRECTIONAL FUND, LP is filing this Amendment No. 1 (the "Form 10-Q/A") to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2011 (the "Form 10-Q"), filed with the Securities and Exchange Commission ("SEC") on August 15, 2011, for the sole purpose of furnishing the XBRL Interactive Data Files as Exhibit 101.
 
No other changes have been made to the Form 10-Q. This Form 10-Q/A continues to speak as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update any related disclosures made in the Form 10-Q.
 
 

 
 
1

 

BRIDGETON GLOBAL DIRECTIONAL FUND, LP
 
INDEX TO FORM 10-Q
 
PART I – FINANCIAL INFORMATION
 
 
Page
Item 1.
Condensed Financial Statements
  3
 
Condensed Statements of Financial Condition
  3
 
Condensed Schedules of Investments
  4
 
Condensed Statements of Income (Loss) and General Partner Incentive Allocation
  6
 
Condensed Statements of Changes in Partners’ Capital (Net Asset Value)
  7
 
Notes to Condensed Financial Statements
  9
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
  24
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
  27
Item 4.
Controls and Procedures
  27
 
PART II – OTHER INFORMATION
 
Item 1.
Legal Proceedings
  27
Item 1A.
Risk Factors
  27
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
  27
Item 3.
Defaults Upon Senior Securities
  27
Item 4.
Removed and Reserved
  28
Item 5.
Other Information
  28
Item 6.
Exhibits
  28
 
 
2

 

 
PART I - FINANCIAL INFORMATION
Item 1. Condensed Financial Statements
 

BRIDGETON GLOBAL DIRECTIONAL FUND, LP
CONDENSED STATEMENTS OF FINANCIAL CONDITION
As of June 30, 2011 (Unaudited) and December 31, 2010
_______________
 
   
June 30,
   
December 31,
 
   
2011
   
2010
 
ASSETS
           
EQUITY IN COMMODITY TRADING ACCOUNTS:
           
Due from brokers and forward currency dealer (including margin deposits of $6,134,928 for 2011 and $4,927,385 for 2010)
 
$
14,774,710
   
$
18,208,550
 
Net unrealized gains (losses) on open futures positions
   
(802,606
)
   
3,334,386
 
Net unrealized gains on open forward currency contracts
   
106,892
     
0
 
     
14,078,996
     
21,542,936
 
CASH AND CASH EQUIVALENTS
   
28,762,699
     
24,203,397
 
DUE FROM GENERAL PARTNER
   
60,125
     
62,876
 
TOTAL ASSETS
 
$
42,901,820
   
$
45,809,209
 
LIABILITIES AND PARTNERS’ CAPITAL (NET ASSET VALUE)
               
LIABILITIES:
               
Prepaid subscriptions
 
$
11,500
   
$
342,500
 
Redemptions payable
   
705,517
     
1,063,391
 
Other accrued expenses
   
18,051
     
57,813
 
Accrued management fees
   
223,459
     
258,425
 
TOTAL LIABILITIES
   
958,527
     
1,722,129
 
PARTNERS’ CAPITAL (NET ASSET VALUE)
               
Limited partners – Investor Class (37,166.7029 and 35,222.9640 fully redeemable units at June 30, 2011 and December 31, 2010, respectively)
   
38,960,839
     
40,903,285
 
Limited partners – Institutional Class – Series 1 (1,096.2885 and 949.7838 fully redeemable units at June 30, 2011 and December 31, 2010, respectively)
   
1,362,986
     
1,281,885
 
Limited partners – Institutional Class – Series 2 (1,373.1283 and 1,400.9530 fully redeemable units at June 30, 2011 and December 31, 2010, respectively)
   
1,618,593
     
1,801,910
 
General partner – Institutional Class – Series 3 (0.2057 and 21.6686 fully redeemable units at June 30, 2011 and December 31, 2010, respectively)
   
875
     
100,000
 
TOTAL PARTNERS’ CAPITAL (NET ASSET VALUE)
   
41,943,293
     
44,087,080
 
TOTAL LIABILITIES AND PARTNERS’ CAPITAL (NET ASSET VALUE)
 
$
42,901,820
   
$
45,809,209
 



See Notes to Condensed Financial Statements.
 
 
3

 
 
BRIDGETON GLOBAL DIRECTIONAL FUND, LP
CONDENSED SCHEDULES OF INVESTMENTS
As of June 30, 2011 (Unaudited)
_______________

LONG FUTURES CONTRACTS

Commodity Futures Industry Sector
 
Unrealized
Gain
(Loss), Net
   
% of
Partners’
Capital*
 
Currencies
 
$
274,706
     
0.654
%
Energy
   
(215,671
)
   
(0.514
)%
Grains
   
(174,828
)
   
(0.417
)%
Interest rates
   
(92,481
)
   
(0.220
)%
Livestock
   
(30,050
)
   
(0.072
)%
Metals
   
(1,347,619
)
   
(3.213
)%
Stock indices
   
28,757
     
0.069
%
Tropical products
   
9,870
     
0.024
%
Total long futures contracts
 
$
(1,547,316
)
   
(3.689
)%

SHORT FUTURES CONTRACTS
 
Commodity Futures Industry Sector
 
Unrealized
Gain
(Loss), Net
   
% of
Partners’
Capital*
 
Currencies
 
$
34,395
     
0.082
%
Energy
   
52,567
     
0.125
%
Grains
   
399,609
     
0.953
%
Interest Rates
   
(1,775
)
   
(0.004
)%
Livestock
   
4,200
     
0.010
%
Metals
   
440,270
     
1.050
%
Stock indices
   
(175,506
)
   
(0.418
)%
Tropical Products
   
(9,050
)
   
(0.022
)%
Total short futures contracts
 
$
744,710
     
1.776
%
Total futures contracts
 
$
(802,606
)
   
(1.913
)%

LONG FORWARD CURRENCY CONTRACTS
 
Description
 
Unrealized
Gain
(Loss), Net
   
% of
Partners’
Capital*
 
Various forward currency contracts
   
77,605
     
0.185
%
Total long forward currency contracts
 
$
77,605
     
0.185
%


SHORT FORWARD CURRENCY CONTRACTS
 
Description
 
Unrealized
Gain
(Loss), Net
   
% of
Partners’
Capital*
 
Various forward currency contracts
   
29,287
     
0.070
%
Total short forward currency contracts
 
$
29,287
     
0.070
%
Total forward currency contracts
 
$
106,892
     
0.255
%

*No single contract’s value exceeds 5% of Partners’ Capital


See Notes to Condensed Financial Statements.
 
 
4

 

BRIDGETON GLOBAL DIRECTIONAL FUND, LP
CONDENSED SCHEDULES OF INVESTMENTS (CONTINUED)
As of December 31, 2010
_______________

LONG FUTURES CONTRACTS
 
No. of
Contracts
Range of
Expiration
Dates
Commodity Futures Industry Sector
 
Unrealized
Gain
(Loss), Net
   
% of
Partners’
Capital*
 
   
Currencies
 
$
628,348
     
1.425
%
   
Energy
   
629,734
     
1.428
%
   
Grains
   
506,137
     
1.148
%
   
Interest rates
   
411,355
     
0.933
%
   
Livestock
   
209,800
     
0.476
%
   
Metals
               
     98           03/16/11 – 06/15/11
London Copper
   
2,946,275
     
6.683
%
   
Other
   
2,790,085
     
6.329
%
   
Stock indices
   
(82,854
)
   
(0.188
)%
   
Tropical products
   
368,120
     
0.835
%
   
Total long futures contracts
 
$
8,407,000
     
19.069
%

SHORT FUTURES CONTRACTS
 
No. of
Contracts
Range of
Expiration
Dates
Commodity Futures Industry Sector
 
Unrealized
Gain
(Loss), Net
   
% of
Partners’
Capital*
 
   
Currencies
 
$
(44,697
)
   
(0.101
)%
   
Energy
   
(344,100
)
   
(0.781
)%
   
Interest rates
   
(255,169
)
   
(0.579
)%
   
Metals
               
    75           03/16/11-06/15/11  
London Copper
   
(1,545,620
)
   
(3.506
)%
   
Other
   
(2,883,028
)
   
(6.539
)%
   
Total short futures contracts
 
$
(5,072,614
)
   
(11.506
)%
   
Total futures contracts
 
$
3,334,386
     
7.563
%
 
*Except for London Copper, no single contract’s value exceeds 5% of Partners’ Capital
 


See Notes to Condensed Financial Statements.

 
5

 


BRIDGETON GLOBAL DIRECTIONAL FUND, LP
CONDENSED STATEMENTS OF INCOME (LOSS) AND GENERAL PARTNER INCENTIVE ALLOCATION
For the Three and Six Months Ended June 30, 2011 and 2010
(Unaudited)
_______________



   
Three Months Ended
   
Six Months Ended
 
   
June 30,
   
June 30,
 
   
2011
   
2010
   
2011
   
2010
 
NET INVESTMENT (LOSS)
                       
Income:
                       
Interest income
 
$
0
   
$
8,397
   
$
7,014
   
$
12,278
 
                                 
Expenses:
                               
Brokerage commissions
   
788,403
     
687,417
     
1,583,081
     
1,370,398
 
Management fees
   
337,540
     
342,270
     
707,449
     
690,090
 
Professional fees
   
14,036
     
19,986
     
47,352
     
73,229
 
Accounting, administrative fees and other expenses
   
55,893
     
45,844
     
110,535
     
91,105
 
                                 
Total expenses
   
1,195,872
     
1,095,517
     
2,448,417
     
2,224,822
 
                                 
Net investment (loss)
   
(1,195,872
)
   
(1,087,120
)
   
(2,441,403
)
   
(2,212,544
)
                                 
TRADING PROFITS (LOSSES)
                               
Profits (losses) on trading of commodity futures and forwards:
                               
Net realized gains (losses) on closed positions
   
(1,317,760
)
   
506,234
     
1,901,129
     
(958,818
)
Change in net unrealized gains (losses) on open positions
   
(2,379,633
)
   
480,081
     
(4,030,100
)
   
1,749,204
 
                                 
Net trading profits (losses)
   
(3,697,393
)
   
986,315
     
(2,128,971
)
   
790,386
 
                                 
NET (LOSS)
 
$
(4,893,265
)
 
$
(100,805
)
   
(4,570,374
)
 
$
(1,422,158
)
                                 
NET (LOSS) PER UNIT
                               
(based on weighted average number of units outstanding during the period)
                               
Investor Class
 
$
(121.93
)
 
$
(3.16
)
 
$
(116.50
)
 
$
(36.19
)
                                 
Institutional Class – Series 1
 
$
(128.89
)
 
$
3.25
   
$
(117.60
)
 
$
(22.74
)
                                 
Institutional Class – Series 2
 
$
(124.60
)
 
$
4.60
   
$
(104.84
)
 
$
(25.57
)
                                 
Institutional Class – General Partner – Series 3
 
$
(448.21
)
 
$
25.38
   
$
801.19
   
$
(52.48
)

 
See Notes to Condensed Financial Statements.
 
 
6

 

BRIDGETON GLOBAL DIRECTIONAL FUND, LP
CONDENSED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (NET ASSET VALUE)
For the Six Months Ended June 30, 2011
(Unaudited)
_______________

 
   
                                       Partners' Capital
 
               
Institutional Class
       
   
Investor Class
   
Series 1
   
Series 2
   
Series 3
General Partner
       
   
Units
   
Amount
   
Units
   
Amount
   
Units
   
Amount
   
Units
   
Amount
   
Total
 
                                                       
Balances at
January 1, 2011
   
35,222.9640
   
$
40,903,285
     
949.7838
   
$
1,281,885
     
1,400.9530
   
$
1,801,910
     
21.6686
   
$
100,000
   
$
44,087,080
 
Additions
   
3,370.9896
     
3,954,394
     
184.0728
     
250,499
     
45.2674
     
58,250
     
0.5659
     
2,674
     
4,265,817
 
Redemptions
   
(1,427.2507
)
   
(1,587,762
)
   
(37.5681
)
   
(48,244
)
   
(73.0921
)
   
(95,438
)
   
(22.0288
)
   
(107,786
)
   
(1,839,230
)
Net income (loss):
                                                                       
General partner incentive allocation
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
      -  
Allocation to all partners
 
-
     
(4,309,078
)
 
-
     
(121,154
)
 
-
     
(146,129
)
 
-
     
5,987
     
(4,570,374
)
                                                                         
Balances at
June 30, 2011
   
37.166.7029
   
$
38,960,839
     
1,096.2885
   
$
1,362,986
     
1,373.1283
   
$
1,618,593
     
0.2057
   
$
875
   
$
41,943,293
 
 
   
Net Asset Value Per Unit
 
         
Institutional Class
 
                     
Series 3
 
   
Investor Class
   
Series 1
   
Series 2
   
General Partner
 
                         
January 1, 2011
 
$
1,161.27
   
$
1,349.66
   
$
1,286.20
   
$
4,614.97
 
                                 
June 30, 2011
 
$
1,048.27
   
$
1,243.27
   
$
1,178.76
   
$
4,253.77
 

See Notes to Condensed Financial Statements.
 
 
7

 



BRIDGETON GLOBAL DIRECTIONAL FUND, LP
CONDENSED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (NET ASSET VALUE) (CONTINUED)
For the Six Months Ended June 30, 2010
(Unaudited)
_______________


   
                                    Partners' Capital (Net Asset Value)
 
               
Institutional Class
       
   
Investor Class
   
Series 1
   
Series 2
   
Series 3
General Partner
       
   
Units
   
Amount
   
Units
   
Amount
   
Units
   
Amount
   
Units
   
Amount
   
Total
 
Balances at
January 1, 2010
   
38,486.0252
   
$
38,976,534
     
1,493.4694
   
$
1,689,632
     
1,413.4121
   
$
1,539,004
     
188.4717
   
$
729,101
   
$
42,934,271
 
Additions
   
2,164.0800
     
2,086,213
     
12.9641
     
14,239
     
19.4621
     
20,000
     
2.2460
     
8,437
     
2,128,889
 
Redemptions
   
(4,790.3834
)
   
(4,618,632
)
   
(564.5572
)
   
(622,650
)
   
(126.2969
)
   
(128,898
)
 
-
   
-
     
(5,370,180
)
Net (loss):
                                                                       
General partner incentive allocation
 
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Allocation to all partners
 
-
     
(1,347,450
)
 
-
     
(30,367
)
 
-
     
(34,390
)
 
-
     
(9,951
)
   
(1,422,158
)
                                                                         
Balances at
June 30, 2010
   
35,859.7218
   
$
35,096,665
     
941.8763
   
$
1,050,854
     
1,306.5773
   
$
1,395,716
     
190.7177
   
$
727,587
   
$
38,270,822
 


   
Net Asset Value Per Unit
 
         
Institutional Class
 
                     
Series 3
 
   
Investor Class
   
Series 1
   
Series 2
   
General Partner
 
                         
January 1, 2010
 
$
1,012.75
   
$
1,131.35
   
$
1,088.86
   
$
3,868.49
 
                                 
June 30, 2010
 
$
978.72
   
$
1,115.70
   
$
1,068.22
   
$
3,814.99
 

 
 
 
See Notes to Condensed Financial Statements.
 
 
8

 

BRIDGETON GLOBAL DIRECTIONAL FUND, LP
NOTES TO CONDENSED FINANCIAL STATEMENTS
For the Three and Six Months Ended June 30, 2011 and 2010
(Unaudited)
_______________

1.             BASIS OF PRESENTATION
 
 
The interim condensed financial statements of Bridgeton Global Directional Fund, LP formerly RFMC Global Directional Fund, LP. (the “Partnership”), included herein, have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and Rule 8-03 of Regulation S-X.  Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete annual financial statements.  These condensed financial statements are unaudited and should be read in conjunction with the audited financial statements and notes thereto included in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2010.  The Partnership follows the same accounting policies in the preparation of interim reports as set forth in the annual report.  In the opinion of management, the financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations and changes in partners’ capital for the interim periods presented and are not necessarily indicative of a full year’s results.
 
2.             PARTNERSHIP ORGANIZATION
 
 
The Partnership, a Delaware limited partnership, was organized on March 19, 2007 and commenced trading operations on August 1, 2007.  The Partnership’s business is to trade, buy, sell or otherwise acquire, hold or dispose of commodity futures contracts, options on physical commodities and on commodity futures contracts, forward contracts, and instruments that may be subject of a futures contract, including equities, indices and sectors ("Commodity and Futures Contracts"), and any rights pertaining thereto and to engage in all activities incident thereto.  The Partnership may also invest in entities (including without limitation other partnerships, separate managed accounts, exchange traded funds or other types of funds) that primarily trade in exchange traded securities, options on exchange traded securities, exchange traded funds, and Commodity and Futures Contracts. The objective of the Partnership is the appreciation of its assets through speculative trading.
 
 
From the Partnership’s start until February 1, 2011, Ruvane Fund Management Corporation, a Delaware corporation (“Ruvane”, or the "General Partner" for periods prior to March 1, 2011), was the sole general partner of the Partnership.  From that date until March 1, 2010, Bridgeton Fund Management, LLC (“Bridgeton”, or the "General Partner" for periods on or after March 1, 2011) was a co-general partner of the Partnership with Ruvane.  Effective March 1, 2011, Bridgeton is the sole general partner of the Partnership.  Bridgeton has been registered with the Commodity Futures Trading Commission (“CFTC”) pursuant to the Commodity Exchange Act (“CEA”) as a Commodity Pool Operator (“CPO”) since January 11, 2011 and has been a member of the National Futures Association (“NFA”) since January 11, 2011.
 
 
In accordance with the Agreement, the Partnership offers limited partnership interests through a private offering pursuant to Regulation D as adopted under section 4(2) of the Securities Act of 1933, as amended.  The Partnership will offer limited partnership interests up to an aggregate of $100,000,000; provided that the General Partner may increase the amount of interests that will be offered in increments of $10,000,000, after notice to the limited partners.
 
 
The Partnership offers two classes of limited partnership interests; the Institutional Class and the Investor Class. Commission charges, General Partner management fees and incentive allocations to the General Partner will differ between Classes and/or Series, but in all other respects the Institutional Class interests and the Investor Class interests will be identical. The Institutional Class and Investor Class interests will also be traded pursuant to the same trading program and at the same Trading Level (as defined in the Confidential Offering Memorandum).
 
 
9

 
 
BRIDGETON GLOBAL DIRECTIONAL FUND, LP
NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)
For the Three and Six Months Ended June 30, 2011 and 2010
 (Unaudited)
  _______________
 
2.             PARTNERSHIP ORGANIZATION (CONTINUED)
 
 
The General Partner has selected Welton Investment Corporation (the “Advisor”) as the Partnership’s trading advisor.  All of the Partnership’s assets are traded pursuant to the Advisor’s Global Directional Portfolio, which follows a proprietary quantitative trading strategy.  The General Partner, in the future, may allocate the Partnership’s assets to other trading strategies and investment programs.
 
 
The Partnership shall end upon the withdrawal, insolvency or dissolution of the General Partner or a decline of greater than fifty percent of the net assets of the Partnership as defined in the Agreement, or the occurrence of any event which shall make it unlawful for the existence of the Partnership to be continued.
 
3.             SIGNIFICANT ACCOUNTING POLICIES
 
 
A.
Method of Reporting
 
 
The Partnership’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).  The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income (loss) and expenses during the reporting period.  Actual results could differ from these estimates.
 
 
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), referred to as ASC or the Codification, is the single source of U.S. GAAP.
 
 
The Partnership has elected not to provide a statement of cash flows as permitted under ASC Topic 230, Statement of Cash Flows.
 
B.         Cash and Cash Equivalents
 
 
The Partnership has defined cash and cash equivalents as cash and short-term, highly liquid investments with maturities of three months or less when acquired.  Money market mutual funds, which are included in cash equivalents, are classified as Level 1 fair value estimates (unadjusted quoted prices in active markets for identical assets) under the fair value hierarchy provisions as described in ASC Topic 820 Fair Value Measurements and Disclosures.  At June 30, 2011 and December 31, 2010, the Partnership had investments in money market mutual funds of $24,254,069 and $21,243,750, respectively.  Interest received on cash deposits and dividends received from money market mutual funds are included in interest income and recognized on an accrual basis.
 
 
C.
Due from Brokers and Forward Currency Dealer
 
 
Due from brokers and forward currency dealer represents deposits required to meet margin requirements and excess funds not required for margin.  Due from brokers and forward currency dealer at June 30, 2011 and December 31, 2010 consisted of cash on deposit with brokers of $9,956,466 and $18,208,550, respectively and cash on deposit with the forward currency dealer of $4,818,244 and $0, respectively.  The Partnership is subject to credit risk to the extent any broker or forward currency dealer with whom the Partnership conducts business is unable to deliver cash balances or securities, or clear securities transactions on the Partnership’s behalf.  The General Partner monitors the financial condition of the brokers and forward currency dealer with which the Partnership conducts business and believes that the likelihood of loss under the aforementioned circumstances is remote.
 
 
10

 
 
BRIDGETON GLOBAL DIRECTIONAL FUND, LP
NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)
For the Three and Six Months Ended June 30, 2011 and 2010
 (Unaudited)
  _______________
 
3.              SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 
 
D.
Investments in Commodity Futures and Forward Currency Contracts
 
 
Investments in commodity futures and forward currency contracts are recorded on the trade date and open contracts are recorded in the financial statements at their fair value on the last business day of the reporting period, based on market prices.  The value of commodity 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.  Accordingly, such contracts are classified as Level 1 fair value estimates under the fair value hierarchy as described within ASC Topic 820, Fair Value Measurements and Disclosures.  The fair value of forward currency (non-exchange traded) contracts is determined based on the interpolation of mid spot rates and forward points, as provided by a leading data provider.  Such valuation technique for forward currency contracts represents both a market approach and an income approach to fair value measurements, and accordingly, forward currency contracts are categorized as level 2 fair value estimates under ASC Topic 820.

 
Gains or losses are realized when contracts are liquidated, on a first-in-first-out basis.  Realized gains are netted with realized losses for financial reporting purposes and shown under the caption “Net realized gains (losses) on closed positions” in the Condensed Statements of Income (Loss) and General Partner Incentive Allocation.
 
As each broker has the individual right of offset, the Partnership presents the aggregate net unrealized gains with such brokers as “Net unrealized gains on open futures positions” and the aggregate net unrealized losses with such brokers as “Net unrealized losses on open futures positions” in the Condensed Statements of Financial Condition.  The net unrealized gains on open positions from one broker are not offset against net unrealized losses on open positions from another broker in the Condensed Statements of Financial Condition.  The unrealized gains or losses on open contracts is the difference between contract trade price and quoted market price.
 
Any change in unrealized gain or loss from the preceding period is reported in the Condensed Statements of Income (Loss) and General Partner Incentive Allocation under the caption “Change in net unrealized gains (losses) on open positions.”

 
11

 
 
BRIDGETON GLOBAL DIRECTIONAL FUND, LP
NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)
For the Three and Six Months Ended June 30, 2011 and 2010
 (Unaudited)
_______________

3.              SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 
 
E.
Brokerage Commissions
 
 
Investor Class interests will pay the General Partner a monthly flat-rate brokerage commission of up to approximately 0.583% of the net asset value of such interests as of the beginning of each month (an annual rate of 7.00%).  The General Partner will pay from this amount up to 3% per annum to properly registered selling agents as compensation for their ongoing services to the Partnership.  To the extent the General Partner pays less than 3% to a selling agent with respect to any limited partnership interests sold by such selling agent, the brokerage commission charged with respect to those limited partnership interests will be reduced accordingly.  A separate series of Investor Class interests will be established for differing brokerage commission rates charged.  During the three and six months ended June 30, 2011 and June 30, 2010, all Investor Class interests were charged a flat rate brokerage commission equal to an annual rate of 7.00%.
 
 
Institutional Class interests pay the General Partner a monthly flat-rate brokerage commission of 0.333% of the net asset value of such interests as of the beginning of each month (a 4.00% annual rate).
 
 
In addition to any applicable selling agent fees, the General Partner will also pay from its brokerage commission all actual trading commissions incurred by the Partnership, exclusive of give-up charges and service fees assessed by certain brokers.  Such execution costs totaled $153,250 and $322,910 for the three and six months ended June 30, 2011, respectively, and $164,213 and $340,167 for the three and six months ended June 30 2010, respectively.  Approximately 35% to 45% of the actual trading commissions incurred by the Partnership are remitted by the brokers to an Introducing Broker affiliated with Bridgeton.
 
Commissions and execution costs charged to each Class or Series were as follows:
 

   
For the Three Months Ended
June 30,
   
For the Six Months Ended
June 30,
 
   
2011
   
2010
   
2011
   
2010
 
                         
Investor Class
 
$
755,930
   
$
650,459
   
$
1,517,575
   
$
1,295,976
 
Institutional Class - Series 1
   
14,561
     
14,907
     
28,319
     
31,129
 
Institutional Class - Series 2
   
17,902
     
14,647
     
36,484
     
28,883
 
Institutional Class -
                               
General Partner - Series 3
   
10
     
7,404
     
703
     
14,410
 
Total
 
$
788,403
   
$
687,417
   
$
1,583,081
   
$
1,370,398
 
 
 
 
As of June 30, 2011 and December 31, 2010, $60,125 and $62,876, respectively, was due from the General Partner for reimbursement on broker commissions advanced by the Partnership.
 
 
F.
Allocation of Income (Loss)
 
 
Net realized and unrealized trading profits and losses, interest income and other operating income and expenses, prior to flat-rate brokerage commissions, management fees and incentive allocations, are allocated to the partners monthly in proportion to their capital account balances, as defined in the Agreement.  Each partner is then charged its applicable Class and/or Series flat-rate brokerage commission, management fees and incentive allocations.
 
 
12

 
 
BRIDGETON GLOBAL DIRECTIONAL FUND, LP
NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)
For the Three and Six Months Ended June 30, 2011 and 2010
 (Unaudited)
_______________

3.              SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 
 
G.
Incentive Allocation
 
 
The General Partner is entitled to a quarterly incentive allocation equal to 20% of New Profits (as defined in the Confidential Offering Memorandum), if any.  The term “New Profits” for the purpose of calculating the General Partner's incentive allocation only, is defined as the excess (if any) of (A) the net asset value of the Partnership as of the last day of any calendar quarter (before deduction of incentive allocations made or accrued for such quarter), over (B) the net asset value of the Partnership as of the last day of the most recent quarter for which an incentive allocation was paid or payable (after deduction of such incentive allocation).  In computing New Profits, the difference between (A) and (B) above shall be (i) increased by the amount of any distributions or redemptions paid or accrued by the Partnership as of or subsequent to the date in (B) through the date in (A), (ii) adjusted (either decreased or increased, as the case may be) to reflect the amount of any additional allocations or negative reallocations of Partnership assets from the date in (B) to the last day of the quarter as of which the current incentive allocation calculation is made, and (iii) increased by the amount of any losses attributable to redemptions.  For the three and six months ended June 30, 2011 and June 30, 2010, the General Partner earned no incentive allocations.
 
 
The General Partner will pay three-fourths of any incentive allocation it receives to the Advisor, and the General Partner may distribute a portion of its share of the incentive allocation to properly registered selling agents as compensation for their ongoing services to the Partnership.
 
H.        Management Fees
 
 
Investor Class and Institutional Class – Series 2 interests pay the General Partner a quarterly management fee equal to ¼ of 1% (1% annually) of the net assets of the Partnership (as defined in the Agreement) as of the beginning of each calendar quarter before deducting accrued ordinary legal, accounting and auditing fees and before any incentive allocation to the General Partner.  Institutional Class Series 1 and Series 3 interests are not assessed a management fee by the General Partner.  Management fees earned by the General Partner were as follows:
 

   
For the Three Months Ended
June 30,
   
For the Six Months Ended
June 30,
 
   
2011
   
2010
   
2011
   
2010
 
Investor Class
 
$
109,465
   
$
91,369
   
$
212,580
   
$
189,318
 
Institutional Class - Series 2
   
4,616
     
3,570
     
9,121
     
7,417
 
Total
 
$
114,081
   
$
94,939
   
$
221,701
   
$
196,735
 
 
 
 
As of June 30, 2011 and December 31, 2010, no management fees were due to the General Partner.
 
 
13

 
 
BRIDGETON GLOBAL DIRECTIONAL FUND, LP
NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)
For the Three and Six Months Ended June 30, 2011 and 2010
 (Unaudited)
_______________

3.              SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 
H.        Management Fees (continued)
 
 
In addition to the management fee paid to the General Partner, the Advisor also assesses each Class and Series of interests a management fee equal to 1/12 of 2% (2% per annum) of the month-end Trading Level for each month during such quarter.  Trading level shall mean the Partnership’s net assets allocated to the Advisor times the leverage to be employed by the Advisor from time to time upon the discretion of the General Partner.  From the start of the Partnership through February 28, 2011, the leverage employed on behalf of the Partnership was 1.2, or 20% higher than the actual funds allocated to the Advisor.  Effective March 1, 2011, the Trading Level was reduced to 1.0.  As such, prior to March 1, 2011, the Advisor’s management fee approximated 2.4% per annum of the Partnership’s net assets.  The management fees earned by the Advisor were as follows:
 

   
For the Three Months Ended
   
For the Six Months Ended
 
   
June 30,
   
June 30,
 
   
2011
   
2010
   
2011
   
2010
 
Investor Class
 
$
207,872
   
$
225,062
   
$
451,696
   
$
448,464
 
Institutional Class - Series 1
   
6,988
     
8,979
     
14,643
     
18,779
 
Institutional Class - Series 2
   
8,594
     
8,828
     
18,986
     
17,417
 
Institutional Class -
                               
General Partner - Series 3
   
5
     
4,462
     
423
     
8,695
 
Total
 
$
223,459
   
$
247,331
   
$
485,748
   
$
493,355
 
 
 
As of June 30, 2011 and December 31, 2010, $223,459 and $258,425, respectively, was due to the Advisor for management fees.
 
 
 
I.
Income Taxes
 
 
No provision for income taxes has been provided in the accompanying financial statements as each partner is individually liable for taxes, if any, on his or her share of the Partnership’s profits.
 
 
The Partnership applies the provisions of Codification Topics 740, Income Taxes and 835, Interest, which prescribes the minimum recognition threshold a tax position must meet in connection with accounting for uncertainties in income tax positions taken or expected to be taken by an entity before being measured and recognized in the financial statements.  This accounting standard requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Partnership’s financial statements to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority.  Tax positions with respect to tax at the Partnership level not deemed to meet the “more-likely-than-not” threshold would be recorded as an expense in the current period.  The Partnership has elected an accounting policy to classify interest and penalties, if any, as interest expense.  The General Partner has concluded there is no tax expense or interest expense related to uncertainties in income tax positions for the three and six months ended June 30, 2011 and June 30, 2010.
 
 
The Partnership files U.S. federal and state tax returns.  The 2008 through 2010 tax years generally remain subject to examination by U.S. federal and most state authorities.
 
 
14

 
 
BRIDGETON GLOBAL DIRECTIONAL FUND, LP
NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)
For the Three and Six Months Ended June 30, 2011 and 2010
 (Unaudited)
_______________

3.              SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 
 
J.
Subscriptions
       
 
Partnership units may be purchased on the first day of each month at the net asset value per unit determined on the last business day of the previous month.  Partners’ contributions received in advance for subscriptions are recorded as “prepaid subscriptions” in the Condensed Statements of Financial Condition.
 
 
K.
Redemptions
 
 
Limited partners may redeem some or all of their units at net asset value per unit as of the last business day of each month with at least ten days written notice to the General Partner.
 
 
L.
Foreign Currency Transactions
 
 
The Partnership’s functional currency is the U.S. dollar; however, it transacts business in currencies other than the U.S. dollar.  Assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the rates in effect at the date of the Condensed Statements 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.  Realized gains (losses) resulting from the translation to U.S. dollars totaled $6,071 and $(241) for the three and six months ended June 30, 2011, respectively, and $(68,608) and $(38,894) for the three and six months ended June 30, 2010, respectively, and are reported as a component of “Net realized gains (losses) on closed positions” in the Condensed Statements of Income (Loss) and General Partner Incentive Allocation.
 
 
M.
Recently Issued Accounting Pronouncements
 
In May 2011, FASB issued Accounting Standards Update 2011-04, Fair Value Measurements (“ASU 2011-04”).  ASU 2011-04 amends ASC Topic 820, Fair Value Measurements and Disclosures, to clarify certain provisions of Topic 820 but also includes some instances where a particular principle or requirement for measuring fair value or disclosing information about fair value measurements has changed.  This ASU results in common principles and requirements for measuring fair value and for disclosing information about fair value and measurements in accordance with U.S. GAAP and International Financial Reporting Standards.  The amendments in ASU 2011-04 are to be applied prospectively and will become effective during the interim and annual periods beginning after December 15, 2011.  The Partnership will adopt the methodologies prescribed in ASU 2011-04 by the date required and does not anticipate that this ASU will have material effect on its financial position or results of operations.
 
 
N.
Indemnifications
 
The Partnership has entered into agreements, which provide for the indemnifications against losses, costs, claims and liabilities arising from the performance of their individual obligations under such agreements, except for gross negligence or bad faith.  The Partnership has had no prior claims or payments pursuant to these agreements.  The Partnership’s individual maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Partnership that have not yet occurred. However, based on previous experience, the Partnership expects the risk of loss to be remote.

 
15

 
 
BRIDGETON GLOBAL DIRECTIONAL FUND, LP
NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)
For the Three and Six Months Ended June 30, 2011 and 2010
 (Unaudited)
_______________

4.
FAIR VALUE
 
 
Fair value of an investment is the amount that would be received to sell the investment in an orderly transaction between market participants at the measurement date (i.e. the exit price).
 
 
The fair value hierarchy, as more fully described in ASC Topic 820, Fair Value Measurements and Disclosures, prioritizes and ranks the level of market price observability used in measuring investments at fair value.  Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the investment.  Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.
 
 
Investments measured and reported at fair value are classified and disclosed in one of the following categories:
 
 
Level 1 – Quoted prices are available in active markets for identical investments as of the reporting date.  The type of investments included in Level 1 are publicly traded investments.  As required by ASC Topic 820, Fair Value Measurements and Disclosures, the Partnership does not adjust the quoted price for these investments even in situations where the Partnership holds a large position and a sale could reasonably impact the quoted price.
 
 
Level 2 – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies.  Investments which are generally included in this category are investments valued using market data.
 
 
Level 3 – Pricing inputs are unobservable and include situations where there is little, if any, market activity for the investment.  Fair value for these investments are determined using valuation methodologies that consider a range of factors, including but not limited to the price at which the investment was acquired, the nature of the investment, local market conditions, trading values on public exchanges for comparable securities, current and projected operating performance and financing transactions subsequent to the acquisition of the investment.  The inputs into the determination of fair value require significant management judgment.  Due to the inherent uncertainty of these estimates, these values may differ materially from the values that would have been used had a ready market for these investments existed.  Investments that are included in this category generally are privately held debt and equity securities.
 
 
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy.  In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.  The General Partner’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment.  The Partnership recognizes transfers, if any, between fair value hierarchy levels at the beginning of the reporting period.
 
 
16

 
 
BRIDGETON GLOBAL DIRECTIONAL FUND, LP
NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)
For the Three and Six Months Ended June 30, 2011 and 2010
 (Unaudited)
_______________

 
4.                FAIR VALUE (CONTINUED)
 
 
The following table summarizes the valuation of the Partnership’s investments by the above fair value hierarchy levels:
 

   
As of June; 30, 2011
 
   
Total
   
Level 1
   
Level 2
   
Level 3
 
Assets
                       
Futures contracts
 
$
4,739,582
   
$
4,739,582
     
N/A
     
N/A
 
Forward currency contracts
   
188,810
     
N/A
   
$
188,810
     
N/A
 
Money market mutual funds
   
24,254,069
     
24,254,069
     
N/A
     
N/A
 
Total investment assets
 
$
29,182,461
   
$
28,993,651
   
$
188,810
         
                                 
Liabilities
                               
Futures contracts
 
$
(5,542,188
)
 
$
(5,542,188
)
   
N/A
     
N/A
 
Forward contracts
   
(81,918
)
   
N/A
   
$
(81,918
)
   
N/A
 
Total investment liabilities
 
$
(5,624,106
)
 
$
(5,542,188
)
 
$
(81,918
)
       
                                 
 
   
As of December 31, 2010
 
   
Total
   
Level 1
   
Level 2
   
Level 3
 
Assets
                               
Futures contracts
 
$
8,802,183
   
$
8,802,183
     
N/A
     
N/A
 
Money market mutual funds
   
21,243,750
     
21,243,750
     
N/A
     
N/A
 
Total investment assets
 
$
30,045,933
   
$
30,045,933
                 
                                 
Liabilities
                               
Futures contracts
 
$
(5,467,797
)
 
$
(5,467,797
)
   
N/A
     
N/A
 
Total investment liabilities
 
$
(5,467,797
)
 
$
(5,467,797
)
               
 
 
17

 
 
BRIDGETON GLOBAL DIRECTIONAL FUND, LP
NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)
For the Three and Six Months Ended June 30, 2011 and 2010
 (Unaudited)
_______________

5.             DERIVATIVE INSTRUMENTS
 
 
The Partnership engages in the speculative trading of forward currency and futures contracts in currencies, interest rates, stock indices and a wide range of commodities, including energy and metals (collectively, “derivatives”) for the purpose of achieving capital appreciation.  Since the derivatives held or sold by the Partnership are for speculative trading purposes, the derivative instruments are not designated as hedging instruments as defined in ASC Topic 815, Derivatives and Hedging.
 
 
Under provisions of ASC Topic 815, Derivatives and Hedging, entities are required to recognize all derivative instruments as either assets or liabilities at fair value in the statement of financial condition.  Investments in futures contracts are reported in the Condensed Statements of Financial Condition as either “Net unrealized gains on open futures positions” or “Net unrealized losses on open futures positions”, while investments in forward currency contracts are reported as either “Net unrealized gains on open forward currency contracts” or “Net unrealized losses on open forward currency contracts.”
 
 
The fair value of the Partnership’s derivative contracts is presented below on a gross basis as an asset if in a gain position and a liability if in a loss position.
 

   
As of June 30, 2011
 
   
Assets
   
Liabilities
   
Net
 
Currencies
 
$
325,800
   
$
(16,699
)
 
$
309,101
 
Energy
   
190,439
     
(353,543
)
   
(163,104
)
Grains
   
399,609
     
(174,828
)
   
224,781
 
Interest rates
   
354,207
     
(448,463
)
   
(94,256
)
Livestock
   
4,800
     
(30,650
)
   
(25,850
)
Metals
   
3,399,281
     
(4,306,630
)
   
(907,349
)
Stock indices
   
28,907
     
(175,656
)
   
(146,749
)
Tropical products
   
36,539
     
(35,719
)
   
820
 
                         
Total futures contracts
   
4,739,582
     
(5,542,188
)
   
(802,606
)
                         
Forward currency contracts
   
188,810
     
(81,918
)
   
106,892
 
                         
Total derivative contracts
 
$
4,928,392
   
$
(5,624,106
)
 
$
(695,714
)
 
   
As of December 31, 2010
 
   
Assets
   
Liabilities
   
Net
 
Currencies
 
$
759,820
   
$
(176,169
)
 
$
583,651
 
Energy
   
629,734
     
(344,100
)
   
285,634
 
Grains
   
506,137
     
0
     
506,137
 
Interest rates
   
442,801
     
(286,615
)
   
156,186
 
Livestock
   
209,800
     
0
     
209,800
 
Metals
   
5,829,566
     
(4,521,854
)
   
1,307,712
 
Stock indices
   
38,413
     
(121,267
)
   
(82,854
)
Tropical products
   
385,912
     
(17,792
)
   
368,120
 
                         
Total futures contracts
 
$
8,802,183
   
$
(5,467,797
)
 
$
3,334,386
 

 
 
18

 

 
BRIDGETON GLOBAL DIRECTIONAL FUND, LP
NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)
For the Three and Six Months Ended June 30, 2011 and 2010
 (Unaudited)
_______________

5.             DERIVATIVE INSTRUMENTS (CONTINUED)
 
 
Realized gains and losses, as well as any change is net unrealized gains or losses on open positions from the preceding period, are recognized as part of the Partnership’s trading profits and losses in the Condensed Statements of Income (Loss) and General Partner Incentive Allocation.
 
 
The Partnership’s trading results and information related to volume of the Partnership’s derivative activity by market sector were as follows:
 

   
For the Three Months Ended June 30, 2011
 
   
Net Realized
Gains
(Losses)
   
Change in
Net Unrealized
Gains (Losses)
   
Net
Trading
Profits (Losses)
   
Number of
Closed
Contracts
 
Currencies
 
$
130,543
   
$
(223,019
)
 
$
(92,476
)
   
2,268
 
Energy
   
(661,171
)
   
(647,418
)
   
(1,308,589
)
   
2,402
 
Grains
   
(107,437
)
   
158,535
     
51,098
     
1,498
 
Interest rates
   
1,141,578
     
228,610
     
1,370,188
     
8,942
 
Livestock
   
(672,900
)
   
(244,680
)
   
(917,580
)
   
1,134
 
Metals
   
348,572
     
(1,572,963
)
   
(1,224,391
)
   
1,444
 
Stock indices
   
(562,468
)
   
(74,384
)
   
(636,852
)
   
8,700
 
Tropical products
   
(654,860
)
   
(12,690
)
   
(667,550
)
   
814
 
Total futures contracts
   
(1,038,143
)
   
(2,388,009
)
   
(3,426,152
)
   
27,202
 
                               
                               
                           
Notional Value
of Contracts
Closed
 
Forward currency contracts
   
(279,617
)
   
8,376
     
(271,241
)
   
180,071,040
 
                                 
Total gain (loss) from derivative trading
 
$
(1,317,760
)
 
$
(2,379,633
)
 
$
(3,697,393
)
       
 
   
For the Six Months Ended June 30, 2011
 
   
Net Realized
Gains
(Losses)
   
Change in
Net Unrealized
Gains (Losses)
   
Net
Trading
Profits (Losses)
   
Number of
Closed
Contracts
 
Currencies
 
$
339,201
   
$
(274,550
)
 
$
64,651
     
3,200
 
Energy
   
992,937
     
(448,738
)
   
544,199
     
3,556
 
Grains
   
281,152
     
(281,356
)
   
(204
)
   
2,352
 
Interest rates
   
(126,817
)
   
(250,442
)
   
(377,259
)
   
14,713
 
Livestock
   
351,610
     
(235,650
)
   
115,960
     
2,046
 
Metals
   
809,222
     
(2,215,061
)
   
(1,405,839
)
   
2,428
 
Stock indices
   
(1,115,136
)
   
(63,895
)
   
(1,179,031
)
   
13,391
 
Tropical products
   
703,073
     
(367,300
)
   
335,773
     
1,290
 
Total futures contracts
   
2,235,242
     
(4,136,992
)
   
(1,901,750
)
   
42,976
 
                               
                               
                           
Notional Value
of Contracts
Closed
 
Forward currency contracts
   
(334,113
)
   
106,892
     
(227,221
)
   
219,249,876
 
                                 
Total gain (loss) from derivative trading
 
$
1,901,129
   
$
(4,030,100
)
 
$
(2,128,971
)
       
 
 
 
 
19

 
 
BRIDGETON GLOBAL DIRECTIONAL FUND, LP
NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)
For the Three and Six Months Ended June 30, 2011 and 2010
 (Unaudited)
_______________

5.              DERIVATIVE INSTRUMENTS (CONTINUED)



   
For the three months ended June 30, 2010
 
   
Net Realized
Gains
(Losses)
   
Change in
Net Unrealized
Gains (Losses)
   
Net
Trading
Profits (Losses)
   
Number of
Closed
Contracts
 
Currencies
 
$
(300,873
)
 
$
(230,407
)
 
$
(531,280
)
   
2,616
 
Energy
   
(200,939
)
   
(554,742
)
   
(755,681
)
   
2,470
 
Grains
   
(153,488
)
   
(87,975
)
   
(241,463
)
   
2,048
 
Interest rates
   
2,764,029
     
1,489,152
     
4,253,181
     
8,220
 
Livestock
   
(161,820
)
   
(214,710
)
   
(376,530
)
   
2,064
 
Metals
   
(221,463
)
   
571,152
     
349,689
     
1,472
 
Stock indices
   
(1,439,831
)
   
(448,871
)
   
(1,888,702
)
   
11,308
 
Tropical products
   
220,619
     
(43,518
)
   
177,101
     
1,818
 
                                 
Total gain (loss) from derivative trading
 
$
506,234
   
$
480,081
   
$
986,315
     
32,016
 
 
   
For the six months ended June 30, 2010
 
   
Net Realized
Gains
(Losses)
   
Change in
Net Unrealized
Gains (Losses)
   
Net
Trading
Profits (Losses)
   
Number of
Closed
Contracts
 
Currencies
 
$
(724,916
)
 
$
(74,872
)
 
$
(799,788
)
   
5,512
 
Energy
   
(1,057,234
)
   
(48,317
)
   
(1,105,551
)
   
5,320
 
Grains
   
(743,150
)
   
(143,525
)
   
(886,675
)
   
3,648
 
Interest rates
   
4,012,531
     
1,442,345
     
5,454,876
     
18,048
 
Livestock
   
3,200
     
(32,420
)
   
(29,220
)
   
3,488
 
Metals
   
(1,101,497
)
   
1,085,109
     
(16,388
)
   
3,192
 
Stock indices
   
(1,759,732
)
   
(343,082
)
   
(2,102,814
)
   
20,840
 
Tropical products
   
411,980
     
(136,034
)
   
275,946
     
3,294
 
                                 
Total gain (loss) from derivative trading
 
$
(958,818
)
 
$
1,749,204
   
$
790,386
     
63,342
 


 
 
The number of contracts closed for futures contracts represents the number of contract half-turns during the three and six months ended June 30, 2011 and June 30, 2010.  The notional value of contracts closed represents the U.S. dollar notional value of forward currency contracts closed during the period.
 
 
20

 
 
BRIDGETON GLOBAL DIRECTIONAL FUND, LP
NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)
For the Three and Six Months Ended June 30, 2011 and 2010
 (Unaudited)
______________

5.              DERIVATIVE INSTRUMENTS (CONTINUED)
 
A.       Market Risk
 
 
Derivative financial instruments involve varying degrees of off-balance sheet market risk whereby changes in the level of volatility of interest rates, foreign currency exchange rates or market values of the underlying financial instruments or commodities may result in cash settlements in excess of the amounts recognized in the Condensed Statements of Financial Condition.  The Partnership’s exposure to market risk is directly influenced by a number of factors, including the volatility of the markets in which the financial instruments are traded and the liquidity of those markets.
 
B.        Fair Value
 
 
The derivative instruments used in the Partnership’s trading activities are reported at fair value with the resulting unrealized gains (losses) recorded in the Condensed Statements of Financial Condition and the related trading profits (losses) reflected in “Trading (Losses)” in the Condensed Statements of Income (Loss) and General Partner Incentive Allocation.  Open contracts generally mature within 90 days; as of June 30, 2011 and December 31, 2010, the latest maturity dates for open contracts are June 2013 and December 2011, respectively.
 
C.        Credit Risk
 
 
Futures are contracts for delayed delivery of financial interests in which the seller agrees to make delivery at a specified future date of a specified financial instrument at a specified price or yield.  Risk arises from changes in the fair value of the underlying instruments.  Credit risk due to counterparty nonperformance associated with these instruments is reflected in the net unrealized gain on open positions, if any, included in the Condensed Statements of Financial Condition.  The Partnership’s counterparties are major brokerage firms and banks located in the United States, or their foreign affiliates.
 
 
The risks associated with exchange-traded contracts are typically perceived to be less than those associated with over-the-counter transactions, because exchanges typically (but not universally) provide clearing house arrangements in which the collective credit (in some cases limited in amount, in some cases not) of the members of the exchange is pledged to support the financial integrity of the exchange, whereas in over-the-counter transactions, traders must rely solely on the credit of their respective individual counterparties.  Margins, which may be subject to loss in the event of a default, are generally required in exchange trading, and counterparties may require margin in the over-the-counter markets.
 
D.  
Risk Monitoring
 
Due to the speculative nature of the Partnership’s derivatives trading, the Partnership is subject to the risk of substantial losses from derivatives trading.  The General Partner actively assesses, manages, and monitors risk exposure on derivatives on a contract basis, a market sector basis, and on an overall basis in accordance with established risk parameters.
 
 
21

 
 
BRIDGETON GLOBAL DIRECTIONAL FUND, LP
NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)
For the Three and Six Months Ended June 30, 2011 and 2010
 (Unaudited)
_______________

6.              FINANCIAL HIGHLIGHTS
 
 
The following information presents per unit operating performance data and other supplemental financial data for the three and six months ended June 30, 2011 and June 30, 2010.  The information has been derived from information presented in the financial statements.
 

   
Three Months Ended June 30, 2011
 
   
Investor
Class
   
Institutional
Class
Series - 1
   
Institutional
Class
Series - 2
 
Per Unit Operating Performance
                 
(for a Unit outstanding for the entire period)
                 
Net Asset Value, beginning of the period
 
$
1,170.21
   
$
1,373.51
   
$
1,305.75
 
                         
(Loss) from operations
                       
Net investment (loss)
   
(30.45
)
   
(22.11
)
   
(24.29
)
Net trading (loss)
   
(91.49
)
   
(108.13
)
   
(102.70
)
                         
Net (loss)
   
(121.94
)
   
(130.24
)
   
(126.99
)
                         
Net Asset Value, end of the period
 
$
1,048.27
   
$
1,243.27
   
$
1,178.76
 
Total Return(1) (3)
   
(10.42
)%
   
(9.48
)%
   
(9.73
)%
Supplemental Data
                       
Ratios to average net asset value