The Partnership’s pro-rata share of the results of the Master’s trading activities are shown in the Statements of
Income and Expenses.
The Customer Agreements between the Partnership and CGM and the Master and CGM give the Partnership and the Master,
respectively, the legal right to net unrealized gains and losses on open futures and forward contracts. The Master nets, for financial reporting purposes, the unrealized gains and losses on open futures and forward contracts on the Statements of
Financial Condition as the criteria under ASC 210-20, Balance Sheet, have been met.
Brokerage fees are calculated as a percentage of the
Partnership’s adjusted net asset value on the last day of each month and are affected by trading performance, subscriptions and redemptions.
For disclosures regarding the Master’s trading activities, see Note 4, “Trading Activities”, on the attached Master’s financial statements.