Company Quick10K Filing
Quick10K
Altegris Qim Futures Fund
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2018-08-01 Sale of Shares
8-K 2018-07-01 Sale of Shares
8-K 2018-06-01 Sale of Shares
8-K 2018-05-01 Sale of Shares
8-K 2018-02-01 Sale of Shares
8-K 2018-01-01 Sale of Shares
FMI Foundation Medicine 5,089
VBIO Vitality Biopharma 101
NMUS Nemus Bioscience 38
CTAM Castle A M 7
PCTL PCT 1
WESTG Westgate Acquisitions 0
MYDX MyDx 0
XTRIB Xtribe 0
ALKM Alkame Holdings 0
NUZE Nuzee 0
AQIM 2019-06-30
Part I - Financial Information
Item 1: Financial Statements.
Note 1 - 	Organization and Significant Accounting Policies
Note 2 - 	Partners' Capital
Note 3 -	Related Party Transactions
Note 4 - 	Advisory Contract
Note 5 - 	Service Fees
Note 6 - 	Brokerage Commissions
Note 7 - 	Financial Derivative Instruments
Note 8 -	Financial Instruments, Off-Balance Sheet Risks and Uncertainties
Note 9 - 	Indemnifications
Note 10 -	Financial Highlights
Note 11 - 	Subsequent Events
Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3: Quantitative and Qualitative Disclosures About Market Risk.
Item 4: Controls and Procedures.
Part II - Other Information
Item 1: Legal Proceedings.
Item 1A: Risk Factors.
Item 2: Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3: Defaults Upon Senior Securities.
Item 4: Mine Safety Disclosure.
Item 5: Other Information.
Item 6: Exhibits.
EX-31.1 altegrisqim_ex3101.htm
EX-32.1 altegrisqim_ex3201.htm

Altegris Qim Futures Fund Earnings 2019-06-30

AQIM 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 altegrisqim_10q-063019.htm FORM 10-Q

Table of Contents

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_______________________________

 

FORM 10-Q

_______________________________

 

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

 

For the quarterly period ended June 30, 2019

 

OR

 

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

 

For the transition period from ________ to ___________

 

Commission File Number:  000-53815

_______________________________

 

ALTEGRIS QIM FUTURES FUND, L.P.

(Exact name of registrant as specified in its charter)

_______________________________

 

DELAWARE   27-0473854

(State or other jurisdiction

of incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

c/o ALTEGRIS ADVISORS, L.L.C.

1200 Prospect Street, Suite 400

La Jolla, California 92037

(Address of principal executive offices) (zip code)

 

(858) 459-7040

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act: None

 

Title of each class Trading Symbol(s) Name of each exchange on which registered
None N/A N/A

 

Securities registered pursuant to Section 12(g) of the Act: Limited Partnership Interests

 

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 ý No o

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes ý No o

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer o
 
Non-accelerated filer o Smaller reporting company ý
  Emerging Growth Company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o    No  ý

 

 

   

 

 

TABLE OF CONTENTS
     
    Page
     
PART I – FINANCIAL INFORMATION 1
     
Item 1. Financial Statements 1
     
  Statements of Financial Condition 1
     
  Condensed Schedules of Investments 2
     
  Statements of Income (Loss) 6
     
  Statements of Changes in Partners’ Capital (Net Asset Value) 7
     
  Notes to Financial Statements 8
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 26
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 29
     
Item 4. Controls and Procedures 29
     
     
PART II – OTHER INFORMATION 30
     
Item 1. Legal Proceedings 30
     
Item 1A. Risk Factors 30
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 30
     
Item 3. Defaults Upon Senior Securities 30
     
Item 4. Mine Safety Disclosure 30
     
Item 5. Other Information 30
     
Item 6. Exhibits 31
     
Signatures 32
     
Rule 13a–14(a)/15d–14(a) Certifications  
     
Section 1350 Certifications  

 

 

 

 i 

 

 

PART I – FINANCIAL INFORMATION

 

Item 1:   Financial Statements.

 

ALTEGRIS QIM FUTURES FUND, L.P.

STATEMENTS OF FINANCIAL CONDITION

JUNE 30, 2019 (Unaudited) and DECEMBER 31, 2018 (Audited)

_______________

           

   2019   2018 
ASSETS          
Equity in commodity broker account:          
Cash  $1,199,642   $1,066,881 
Restricted cash   758,736    1,012,429 
Restricted foreign currency (cost - $0 and $103,635)       105,654 
Net unrealized gain on open futures contracts   201,885     
Settled variation margin   33,018     
           
    2,193,281    2,184,964 
           
Cash   1,639,631    3,582,686 
Investment securities at fair value (cost - $11,857,559 and $15,755,364)   11,857,389    15,754,973 
Interest receivable   900    1,271 
           
Total assets  $15,691,201   $21,523,894 
           
LIABILITIES          
Equity in commodity broker account:          
Foreign currency due to broker (proceeds - $16,254 and $0)  $16,008   $ 
Net unrealized loss on open futures contracts       52,017 
Settled variation margin       45,731 
           
    16,008    97,748 
           
Redemptions payable   1,218,221    874,336 
Service fees payable   19,033    30,545 
Management fee payable   15,362    21,180 
Brokerage commissions payable   12,353    19,476 
Incentive fees payable   4,793     
Administrative fee payable   3,968    5,458 
Other liabilities   111,407    125,128 
           
Total liabilities   1,401,145    1,173,871 
           
           
PARTNERS' CAPITAL (NET ASSET VALUE)          
General Partner   755    831 
Limited Partners   14,289,301    20,349,192 
           
Total partners' capital (Net Asset Value)   14,290,056    20,350,023 
           
Total liabilities and partners' capital  $15,691,201   $21,523,894 

 

See accompanying notes.

 

 1 
 

 

ALTEGRIS QIM FUTURES FUND, L.P.

CONDENSED SCHEDULES OF INVESTMENTS

JUNE 30, 2019 (Unaudited)

_______________

                   

INVESTMENT SECURITIES           
Face Value   Maturity Date  Description  Fair Value   % of Partners' Capital 
                
Fixed Income Investments           
                
U.S. Government Agency Bonds and Notes             
$5,907,000   7/1/2019  Federal Home Loan Bank Disc Note, 2.11%*  $5,907,000    41.34% 
 3,000,000   7/17/2019  Federal Home Loan Bank Disc Note, 2.23%*   2,997,066    20.97% 
           
Total U.S. Government Agency Bonds and Notes (cost - $8,904,038)   8,904,066    62.31% 
                   
Certificates of Deposit          
$355,000   7/12/2019  Sumitomo Mitsui Banking Corporation, 2.34%   354,996    2.48% 
 237,000   7/12/2019  Sumitomo Mitsui Trust Bank Ltd., 2.33%   236,995    1.66% 
 250,000   7/11/2019  The Chiba Bank Ltd., 2.40%   249,998    1.75% 
           
Total Certificates of Deposit (cost - $842,000)   841,989    5.89% 
                   
Corporate Notes          
$250,000   7/1/2019  Bridgestone Americas, Inc., 2.34%*   250,000    1.75% 
 430,000   7/1/2019  Cedar Springs Capital Company LLC, 2.49%*   430,000    3.01% 
 470,000   7/17/2019  Chevron Corporation, 2.31%*   469,425    3.29% 
 492,000   7/1/2019  The Bank of New York Mellon Corporation, 2.38%*   492,000    3.44% 
 470,000   7/1/2019  Walmart, Inc., 2.37%*   469,909    3.29% 
           
Total Corporate Notes (cost - $2,111,521)   2,111,334    14.78% 
                   
Total Investment Securities (cost - $11,857,559)  $11,857,389    82.98% 

 

* The rate reported is the effective yield at time of purchase.

 

See accompanying notes.

 

 2 
 

 

ALTEGRIS QIM FUTURES FUND, L.P.

CONDENSED SCHEDULES OF INVESTMENTS (continued)

JUNE 30, 2019 (Unaudited)

_______________

                   

   Range of Expiration Dates  Number of Contracts   Fair Value*   % of Partners' Capital 
                
Long Futures Contracts:                  
Currencies  Sep 19   9   $1,117    0.01% 
Energy  Aug 19   1    450    0.01% 
Interest Rates  Sep 19   3    7,499    0.05% 
Metals  Aug 19 - Sep 19   51    221,495    1.55% 
Stock Indices  Sep 19   62    65,321    0.46% 
                   
Total Long Futures Contracts      126    295,882    2.08% 
                   
Short Futures Contracts:                  
Currencies  Sep 19   21    (1,532)   (0.01)%
Energy  Aug 19 - Sep 19   6    (3,970)   (0.03)%
Interest Rates  Sep 19   41    (17,757)   (0.12)%
Metals  Sep 19   6    491    0.01% 
Stock Indices  Jul 19 - Sep 19   21    (13,851)   (0.10)%
Treasury Rates  Sep 19   84    (24,360)   (0.17)%
                   
Total Short Futures Contracts      179    (60,979)   (0.42)%
                   
Total Futures Contracts          $234,903    1.66% 

 

*Futures include settled variation margin.

 

 

See accompanying notes.

 

 3 
 

 

ALTEGRIS QIM FUTURES FUND, L.P.

CONDENSED SCHEDULES OF INVESTMENTS (continued)

DECEMBER 31, 2018 (Audited)

_______________

 

INVESTMENT SECURITIES        
Face Value   Maturity Date  Description  Fair Value   % of Partners' Capital 
                
Fixed Income Investments        
                
U.S. Government Agency Bonds and Notes          
$4,738,000   1/2/2019  Federal Farm Credit Bank Disc Note, 2.18%*  $4,737,434    23.28% 
 5,000,000   1/9/2019  Federal Home Loan Bank Disc Note, 2.36%*   4,997,685    24.56% 
                   
Total U.S. Government Agency Bonds and Notes (cost - $9,734,853)   9,735,119    47.84% 
                   
Certificates of Deposit          
$521,000   1/4/2019  Banco del Estado de Chile, 2.32%   520,993    2.56% 
 315,000   1/11/2019  The Chiba Bank Ltd., 2.53%   315,008    1.55% 
                   
Total Certificates of Deposit (cost - $836,000)   836,001    4.11% 
                   
Corporate Notes             
$473,000   1/3/2019  Apple Inc., 2.52%*   472,902    2.32% 
 680,000   1/2/2019  Automatic Data Processing, Inc., 2.38%*   679,955    3.34% 
 250,000   1/2/2019  Banco del Estado de Chile, 2.39%*   249,983    1.23% 
 474,000   1/18/2019  Canadian Imperial Holdings, Inc., 2.48%*   473,415    2.33% 
 500,000   1/2/2019  Cedar Springs Capital Company LLC, 2.50%*   499,965    2.46% 
 473,000   1/4/2019  Exxon Mobil Corp Disc Note, 2.43%*   472,874    2.32% 
 316,000   1/15/2019  IBM Credit LLC, 2.42%*   315,681    1.55% 
 473,000   1/16/2019  MetLife Short Term Funding LLC, 2.50%*   472,476    2.32% 
 348,000   1/3/2019  PACCAR Financial Corporation, 2.40%*   347,932    1.71% 
 600,000   1/15/2019  Thunder Bay Funding, LLC, 2.52%*   599,373    2.95% 
 600,000   1/17/2019  Wal-Mart Stores, Inc., 2.50%*   599,297    2.94% 
                   
Total Corporate Notes (cost - $5,184,511)   5,183,853    25.47% 
                   
Total Investment Securities (cost - $15,755,364)  $15,754,973    77.42% 

 

* The rate reported is the effective yield at time of purchase.

 

 

See accompanying notes.

 

 4 
 

 

ALTEGRIS QIM FUTURES FUND, L.P.

CONDENSED SCHEDULES OF INVESTMENTS (continued)

DECEMBER 31, 2018 (Audited)

_______________

 

   Range of Expiration Dates  Number of Contracts   Fair Value*   % of Partners' Capital 
                
Long Futures Contracts:                  
Currencies  Mar 19   12    5,351    0.03% 
Energy  Jan 19   26    (60,238)   (0.30)% 
Interest Rates  Mar 19   79    26,811    0.12% 
Metals  Feb 19 - Mar 19   22    4,167    0.02% 
Stock Indices  Jan 19 - Mar 19   126    (59,855)   (0.29)% 
Treasury Rates  Mar 19   3    402    0.00% 
                   
Total Long Futures Contracts      268    (83,362)   (0.42)% 
                   
Short Futures Contracts:                  
Currencies  Mar 19   35    (6,611)   (0.03)% 
Metals  Mar 19   7    11,143    0.05% 
Stock Indices  Jan 19   5    (10,172)   (0.05)% 
Treasury Rates  Mar 19   13    (8,746)   (0.04)% 
                   
Total Short Futures Contracts      60    (14,386)   (0.07)% 
                   
Total Futures Contracts          $(97,748)   (0.49)% 

 

*Futures include settled variation margin.

 

 

See accompanying notes.

 

 5 
 

 

ALTEGRIS QIM FUTURES FUND, L.P.

STATEMENTS OF INCOME (LOSS)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2019 AND 2018 (Unaudited)

_______________

 

 

   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
   2019   2018   2019   2018 
TRADING GAIN (LOSS)                    
Gain (loss) on trading of futures                    
Net realized  $(487,655)  $661,772   $(1,719,549)  $(865,306)
Net change in unrealized   322,715    779,759    332,651    102,317 
Brokerage Commissions   (57,956)   (104,527)   (128,289)   (217,516)
                     
Net gain (loss) from trading futures   (222,896)   1,337,004    (1,515,187)   (980,505)
                     
Gain (loss) on trading of securities                    
Net realized       85        85 
Net change in unrealized   480    495    221    (106)
                     
Net gain (loss) from trading securities   480    580    221    (21)
                     
Gain (loss) on trading of foreign currency                    
Net realized   3,268    (5,451)   4,239    (11,860)
Net change in unrealized   306    58    (1,773)   8 
                     
Net gain (loss) from trading foreign currency   3,574    (5,393)   2,466    (11,852)
Total trading gain (loss)   (218,842)   1,332,191    (1,512,500)   (992,378)
                     
NET INVESTMENT LOSS                    
Income                    
Interest income   80,859    115,975    181,108    211,242 
                     
Expenses                    
Service fees   51,366    95,582    112,291    193,553 
Management fee   47,531    84,466    105,132    175,559 
Professional fees   47,063    53,703    99,907    108,921 
Administrative fee   12,245    21,253    27,052    44,088 
Out of pocket fees   6,600    6,600    13,200    13,200 
Interest expense   773    3,977    2,681    9,066 
Incentive fees   4,793    1,384    4,793    1,384 
Other expenses   1,996    15,167    3,515    19,692 
                     
Total expenses   172,367    282,132    368,571    565,463 
                     
Net investment loss   (91,508)   (166,157)   (187,463)   (354,221)
                     
NET INCOME (LOSS)  $(310,350)  $1,166,034   $(1,699,963)  $(1,346,599)

 

 

See accompanying notes.

 

 6 
 

 

ALTEGRIS QIM FUTURES FUND, L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (NET ASSET VALUE)

FOR THE SIX MONTHS ENDED JUNE 30, 2019 AND 2018 (Unaudited)

_______________

                             

 

       Limited Partners     
               Institutional   General 
   Total   Class A   Class B   Special Interests   Partner 
                     
Balances at December 31, 2017  $31,350,202   $21,086,218   $7,726,323   $2,536,719   $942 
                          
Capital additions   479,679    335,441    144,238         
                          
Capital withdrawals   (3,460,327)   (1,952,963)   (610,200)   (897,164)    
                          
From operations:                         
Net investment loss   (354,221)   (308,527)   (41,885)   (3,795)   (14)
Net realized loss from investments (net of brokerage commissions)   (1,094,597)   (734,085)   (265,967)   (94,514)   (31)
Net change in unrealized gain from investments   102,219    71,192    25,939    5,084    4 
Net loss   (1,346,599)   (971,420)   (281,913)   (93,225)   (41)
                          
Balances at June 30, 2018  $27,022,955   $18,497,276   $6,978,448   $1,546,330   $901 
                          
Balances at December 31, 2018  $20,350,023   $13,755,422   $5,765,565   $828,205   $831 
                          
Capital additions   500,000        500,000         
                          
Capital withdrawals   (4,860,004)   (3,243,806)   (1,401,249)   (214,949)    
                          
From operations:                         
Net investment loss   (187,463)   (161,440)   (25,925)   (87)   (11)
Net realized loss from investments (net of brokerage commissions)   (1,843,599)   (1,227,615)   (536,003)   (79,898)   (83)
Net change in unrealized gain from investments   331,099    211,061    108,429    11,591    18 
Net loss   (1,699,963)   (1,177,994)   (453,499)   (68,394)   (76)
                          
Balances at June 30, 2019  $14,290,056   $9,333,622   $4,410,817   $544,862   $755 

 

 

See accompanying notes.

 

 7 
 

 

ALTEGRIS QIM FUTURES FUND, L.P.

NOTES TO FINANCIAL STATEMENTS

_______________

 

NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

 

A.General Description of the Partnership

 

Altegris QIM Futures Fund, L.P. (“Partnership”) was organized as a Delaware limited partnership in June 2009. The Partnership's general partner is Altegris Advisors, L.L.C. (the "General Partner"). The General Partner has overall responsibility for the management, operation and administration of the Partnership, including the selection of its commodity trading adviser. The Partnership’s trading activities are conducted pursuant to an advisory contract with Quantitative Investment Management LLC (the “Advisor”). The Partnership speculatively trades commodity futures contracts, and may trade options on futures contracts, forward currency contracts and other commodity interests. The objective of the Partnership’s business is appreciation of its assets. It is subject to the regulations of the Commodity Futures Trading Commission (the “CFTC”), an agency of the United States (“U.S.”) government that regulates most aspects of the commodity futures industry; rules of the National Futures Association, an industry self-regulatory organization; and the requirements of commodity exchanges and futures commission merchants (brokers) through which the Partnership trades.

 

B.Method of Reporting

 

The Partnership’s financial statements are presented in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). Therefore, the Partnership follows the accounting and reporting guidelines for investment companies. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported fair value of assets and liabilities, disclosures of contingent assets and liabilities as of June 30, 2019 and December 31, 2018, and reported amounts of income and expenses for the three and six months ended June 30, 2019 and 2018, respectively. Management believes that the estimates utilized in preparing the Partnership’s financial statements are reasonable; however, actual results could differ from these estimates and it is reasonably possible that the differences could be material.

 

The financial information included herein is unaudited; however, such financial information reflects all adjustments which are, in the opinion of management, necessary for the fair presentation of the financial statements for the interim period.

 

C.Fair Value

 

In accordance with the authoritative guidance under U.S. GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e. the “exit price”) in an orderly transaction between market participants at the measurement date.

 

In determining fair value, the Partnership uses various valuation approaches. The authoritative guidance under U.S. GAAP establishes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Partnership.

 

 

 

 

 8 
 

 

ALTEGRIS QIM FUTURES FUND, L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

_______________

 

NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

C. Fair Value (continued)

 

Unobservable inputs reflect the Partnership’s assumption about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows:

 

Level 1 – Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Partnership has the ability to access at the measurement date;

 

Level 2 – Quoted prices which are not active, or inputs that are observable (either directly or indirectly) for substantially the full term of the asset or liability; and

 

Level 3 – Prices, inputs or exotic modeling techniques which are both significant to the fair value measurement and unobservable (supported by little or no market activity).

 

The availability of valuation techniques and observable inputs can vary among assets and liabilities and is affected by a wide variety of factors, including the type of asset or liability, whether the asset or liability is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the asset or liability existed. Accordingly, the degree of judgment exercised by the Partnership in determining fair value is greatest for assets and liabilities categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined by the lowest level input that is significant to the fair value measurement.

 

Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Partnership’s own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Partnership uses prices and inputs that are current as of the measurement date, including prices and inputs during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many assets and liabilities. This condition could cause an asset or liability to be reclassified to a lower level within the fair value hierarchy.

 

 

 

 

 9 
 

 

ALTEGRIS QIM FUTURES FUND, L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

_______________

 

NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

C. Fair Value (continued)

 

The Partnership values futures contracts at the closing price of the contract’s primary exchange. The Partnership includes futures contracts in Level 1 of the fair value hierarchy, as they are exchange traded derivatives.

 

The fair value of U.S. government agency bonds and notes is generally based on quoted prices in active markets. When quoted prices are not available, fair value is determined based on a valuation model that uses inputs that include interest-rate yield curves, cross-currency-basis index spreads, and country credit spreads similar to the bond in terms of issue, maturity and seniority. U.S. government agency bonds and notes are generally categorized in Level I or Level 2 of the fair value hierarchy. As of June 30, 2019 and December 31, 2018, none of the Partnership’s holdings in U.S. government agency bonds and notes were fair valued using valuation models.

 

The fair value of corporate notes is determined using recently executed transactions, market price quotations (where observable), notes spreads or credit default swap spreads. The spread data used are for the same maturity as that of the notes. If the spread data does not reference the issuer, data that references a comparable issuer is used. When observable price quotations are not available, fair value is determined based on cash flow models with yield curves, bond, or single-name credit default swap spreads and recovery rates based on collateral values as key inputs. These valuation methods represent both a market and income approach to fair value measurement. Corporate notes are categorized in Level 2 of the fair value hierarchy; however, in instances where significant inputs are unobservable, they are categorized in Level 3 of the hierarchy. As of June 30, 2019 and December 31, 2018, none of the Partnership’s holdings in corporate notes were fair valued using valuation models.

 

The fair value of certificates of deposit is determined based on a constant maturity curve for comparable instruments denominated in USD. This valuation method represents both a market and income approach to fair value measurement.  Certificates of deposit are categorized in Level 2 of the fair value hierarchy.

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

There were no changes in the Partnership’s valuation methodology during period ended June 30, 2019 and the year ended December 31, 2018.

 

 

 

 10 
 

 

ALTEGRIS QIM FUTURES FUND, L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

_______________

 

NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

C. Fair Value (continued)

 

The following table presents information about the Partnership’s assets and liabilities measured at fair value as of June 30, 2019 and December 31, 2018:

 

               Balance as of 
June 30, 2019  Level 1   Level 2   Level 3   June 30, 2019 
                 
Assets                    
                     
Futures contracts (1)  $303,759   $   $   $303,759 
U.S. Government agency bonds and notes       8,904,066        8,904,066 
Certificates of deposit       841,989        841,989 
Corporate notes       2,111,334        2,111,334 
                     
Total Assets  $303,759   $11,857,389   $   $12,161,148 
                     
Liabilities                    
                     
Futures contracts (1)  $(68,856)  $   $   $(68,856)

 

December 31, 2018  Level 1   Level 2   Level 3   Balance as of December 31, 2018 
                 
Assets                    
                     
Futures contracts (1)  $69,626   $   $   $69,626 
U.S. Government agency bonds and notes       9,735,119        9,735,119 
Certificates of deposit       836,001        836,001 
Corporate notes       5,183,853        5,183,853 
                     
Total Assets  $69,626   $15,754,973   $   $15,824,599 
                     
Liabilities                    
                     
Futures contracts (1)  $(167,374)  $   $   $(167,374)

 

(1) See Note 7. "Financial Derivative Instruments" for the fair value in each type of contracts within this category.

 

The Partnership’s policy is to recognize any transfers between Level 1 and Level 2 assets as of the Partnership’s fiscal year-end.

 

For the period ended June 30, 2019 and the year ended December 31, 2018, there were no transfers between Level 1 and Level 2 assets and liabilities. For the period ended June 30, 2019 and the year ended December 31, 2018, there were no Level 3 securities.

 

 

 

 11 
 

 

ALTEGRIS QIM FUTURES FUND, L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

_______________

 

NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

D. Recent Accounting Pronouncements

 

In August 2018, the FASB issued an ASU, ASU 2018-13, which reduces the amount of disclosure associated with level 3 investments. This ASU is effective for all entities for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. At this time, management is evaluating the implications of these changes on the financial statements.

 

E. Investment Transactions and Investment Income

 

Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from security transactions are determined using the specific identification cost method. Change in net unrealized gain or loss from the preceding period is reported in the Statements of Income (Loss). Brokerage commissions on securities and other trading fees are reflected as an adjustment to cost or proceeds at the time of the transaction. Interest income is recorded on an accrual basis.

 

Gains or losses on futures contracts are realized when contracts are closed. Net unrealized gains or losses on open contracts (the difference between contract trade price and quoted market price) are reflected in the Statements of Financial Condition. Any change in net unrealized gain or loss from the preceding period is reported in the Statements of Income (Loss). Brokerage commissions on futures contracts include other trading fees and are recognized as trading gains and losses.

 

Net realized gains and losses from foreign currency related transactions represent gains and losses from sales of foreign currencies, currency gains and losses realized between trade and settlement dates on securities transactions, and the difference between the amounts of interest and foreign withholding taxes recorded on the Partnership’s books and the U.S. Dollar equivalent of the amounts actually received or paid. Net unrealized gain (loss) on other assets and other liabilities denominated in foreign currency arise from changes in the value of assets, other than investments in securities, and liabilities at quarter end, resulting from changes in the exchange rates.

 

J.P. Morgan Chase Bank, N.A. (the “Custodian”) is the Partnership’s custodian. SG Americas Securities, LLC (the “Clearing Broker”) is the Partnership’s commodity broker. A portion of the Partnership’s assets are held as initial margin or option premiums (in cash or Treasury securities) in the Partnership’s brokerage accounts at the Clearing Broker. The Clearing Broker may convert the Partnership’s cash in U.S. dollar to foreign currency to facilitate the Partnership’s commodity trading activities. At times, the Partnership may carry foreign cash on loan with the Clearing Broker. Any net foreign currency on loan will be recognized in Foreign Currency Due to Broker on the Statements of Financial Condition. The Partnership’s Clearing Broker holds margin balances in a single currency, in which all margin requirements can be satisfied in U.S. dollars. Foreign currency balances can also be used to satisfy margin requirements. As of June 30, 2019 and December 31, 2018, the Partnership’s restricted cash balance on the Statements of Financial Condition of $758,736 and $1,012,429, respectively, represents the collateral pledged by the Partnership to satisfy the Clearing Broker’s margin requirements in US Dollars. As of December 31, 2018, the Partnership’s restricted foreign currency balance on the

 

 

 

 12 
 

 

ALTEGRIS QIM FUTURES FUND, L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

_______________

 

NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

E. Investment Transactions and Investment Income (continued)

 

Statements of Financial Condition of $105,654, represents the collateral pledged by the Partnership to satisfy the Clearing Broker’s margin requirements in foreign currency. The Partnership’s assets not deposited at the Clearing Broker are deposited with either the Custodian or held in bank cash accounts at Northern Trust Company (and used to pay Partnership operating expenses).  For the Partnership’s cash deposited at the Custodian, the Partnership receives cash management services from J.P. Morgan Investment Management Inc. (“JPMIM”).

 

F. Futures Contracts

 

The Partnership engages in futures contracts as part of its investment strategy. Upon entering into a futures contract, the Partnership is required to deposit with the broker an amount of cash or cash equivalents equal to a certain percentage of the contract amount. This is known as the “initial margin.” Subsequent payments (“variation margin”) are made or received by the Partnership each day, depending on the daily fluctuations in the value of the contract, and are included in unrealized gain (loss) on futures contracts. Due to broker amounts on the Statements of Financial Condition represent the amount of any short fall in the Partnership’s required cash margin. The Partnership recognizes a realized gain or loss when the contract is closed.

 

There are several risks in connection with the use of futures contracts as an investment option. The change in value of futures contracts primarily corresponds with the value of their underlying instruments. In addition, there is the risk that the Partnership may not be able to enter into a closing transaction because of an illiquid secondary market. Open positions in futures contracts at June 30, 2019 and December 31, 2018 are reflected within the Condensed Schedules of Investments.

 

G. 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 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 year.  Gains and losses resulting from the translation to U.S. dollars are reported in the Statements of Income (Loss).

 

H. Cash

 

The Partnership maintains a custody account with JPMorgan Chase Bank, N.A. At times, the Partnership’s cash balance could exceed the insured amount under the Federal Deposit Insurance Corporation (“FDIC”). The Partnership has not experienced any losses in such accounts and believes it is not subject to any significant counterparty risk related to its cash account.

 

Both restricted cash and restricted foreign currency are held as margin collateral deposits for futures transactions.

 

 

 

 

 

 13 
 

 

ALTEGRIS QIM FUTURES FUND, L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

_______________

 

NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

I. Income Taxes

 

The Partnership is treated as a partnership for U.S. federal income tax purposes. As such, the partners are individually liable for their own distributable share of taxable income or loss. No provision has been made in the accompanying financial statements for U.S., federal, state, or local income taxes.

 

The Partnership is required to determine whether its tax positions are more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position.  The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement with the relevant taxing authority.  De-recognition of a tax benefit previously recognized results in the Partnership recording a tax liability that reduces ending partners’ capital. Based on its analysis, the Partnership has determined that it has not incurred any liability for unrecognized tax benefits as of June 30, 2019 and December 31, 2018.  However, the Partnership’s conclusions may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analyses of and changes to tax laws, regulations and interpretations thereof. The Partnership is subject to income tax examinations by major taxing authorities for all tax years since 2015. 

 

The Partnership recognizes interest and penalties related to unrecognized tax benefits in interest expense and other expenses, respectively. No interest expense or penalties have been recognized as of June 30, 2019 and December 31, 2018 or for the three and six months ended June 30, 2019 and 2018.

 

NOTE 2 - PARTNERS’ CAPITAL

 

A. Capital Accounts and Allocation of Income and Loss

 

The Partnership accounts for subscriptions and redemptions on a per partner capital account basis.

 

The Partnership consists of the General Partner’s Interest, Class A Interests, Class B Interests and Institutional Interests (collectively referred to as “Interests”).  Income or loss (prior to management fees, administrative fees, service fees and incentive fees) is allocated pro rata among the Limited Partners (each, a “Limited Partner” and collectively the “Limited Partners”) based on their respective capital accounts as of the end of each month in which the items accrue, pursuant to the terms of the Partnership’s Agreement of Limited Partnership (the “Agreement”), as may be amended and restated from time to time.  Class A Interests, Class B Interests and Institutional Interests are then charged with their applicable management fee, administrative fee, service fee and incentive fee in accordance with the Agreement.

 

 

 

 14 
 

 

ALTEGRIS QIM FUTURES FUND, L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

_______________

 

NOTE 2 - PARTNERS’ CAPITAL (CONTINUED)

 

B. Subscriptions, Distributions and Redemptions

 

No Limited Partner of the Partnership shall be liable for any debts or liabilities of the Partnership or any losses thereof in excess of such Limited Partner's capital contributions, except as may be required by law.

 

Investments in the Partnership are made by subscription agreement, subject to acceptance by the General Partner.

 

The Partnership is not required to make distributions, but may do so at the sole discretion of the General Partner. A Limited Partner may request and receive redemption of capital, subject to restrictions set forth in the Agreement. The General Partner may request and receive redemption of capital, subject to the same terms as any Limited Partner. The partners may withdraw their interests on a monthly basis upon at least 15 days’ prior written notice, subject to the discretion of the General Partner. No distributions were made for the six months ended June 30, 2019 and 2018.

 

NOTE 3 - RELATED PARTY TRANSACTIONS

 

A. General Partner Management Fee

 

The General Partner receives a monthly management fee from the Partnership equal to 0.104% (1.25% annually) for Class A and Class B, and 0.0625% (0.75% annually) for Institutional Interests of the Partnership's net asset value apportioned to each Partner’s capital account at the beginning of the month, before deduction of any accrued incentive fees related to the current quarter (the “management fee net asset value”). The General Partner may declare any Limited Partner a “Special Limited Partner” and the management fees or incentive fees charged to any such partner may be different than those charged to other Limited Partners. For the three and six months ended June 30, 2019 and 2018, there were no Special Limited Partners.

 

Total management fees earned by the General Partner for the three and six months ended June 30, 2019 and 2018 are shown on the Statements of Income (Loss) as Management Fee.

 

B. Administrative Fee

 

The General Partner receives a monthly administrative fee from the Partnership equal to 0.0275% (0.33% annually) of the Partnership's management fee net asset value attributable to Class A and Class B Interests. For the three and six months ended June 30, 2019, administrative fees for Class A Interests were $8,546 and $18,926, respectively, and administrative fees for Class B Interests were $3,699 and $8,126, respectively. For the three and six months ended June 30, 2018, administrative fees for Class A Interests were $15,572 and $32,290, respectively, and administrative fees for Class B Interests were $5,681 and $11,798, respectively.

 

 

 

 15 
 

 

ALTEGRIS QIM FUTURES FUND, L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

_______________

 

NOTE 3 - RELATED PARTY TRANSACTIONS (CONTINUED)

 

C. Altegris Investments, L.L.C. and Altegris Clearing Solutions, L.L.C.

 

Altegris Investments, L.L.C. (“Altegris Investments”), an affiliate of the General Partner, is registered as a broker-dealer with the SEC and a Delaware limited liability company. Altegris Clearing Solutions, L.L.C. (Altegris Clearing Solutions), an affiliate of the General Partner and an introducing broker registered with the CFTC, is the Partnership’s introducing broker.

 

Altegris Investments has entered into a selling agreement with the Partnership whereby it receives 2% per annum as continuing compensation for Class A Interests sold by Altegris Investments that are outstanding at month end. The Partnership’s introducing broker receives a portion of the commodity brokerage commissions paid by the Partnership to the Clearing Broker and interest income retained by the Clearing Broker. Additionally, the Partnership pays to its clearing brokers and its introducing broker, at a minimum, brokerage charges at a flat rate of 0.125% (1.5% annually) of the Partnership’s management fee net asset value. Brokerage charges may exceed the flat rate described above, depending on commission and trading volume levels, which may vary.

 

At June 30, 2019 and December 31, 2018, respectively, the Partnership had charges for brokerage-related services payable to Altegris Clearing Solutions of $10,523 and $17,509, respectively, and service fees payable to Altegris Investments of $2,858 and $3,525, respectively. The following tables show the fees paid to Altegris Investments and Altegris Clearing Solutions for the three and six months ended June 30, 2019 and 2018, respectively:

 

   Three months ended   Six months ended   Three months ended   Six months ended 
   June 30, 2019   June 30, 2019   June 30, 2018   June 30, 2018 
Altegris Clearing Solutions - Brokerage Commission fees  $44,487   $87,053   $52,306   $123,111 
Altegris Investments- Service fees   8,539    18,019    13,189    27,272 
Total  $53,026   $105,072   $65,495   $150,383 

 

The amounts above are included in Brokerage Commissions and Service Fees on the Statements of Income (Loss), respectively. The amounts shown on the Statements of Income (Loss) include fees paid to non-related parties.

 

NOTE 4 - ADVISORY CONTRACT

 

The Partnership pays the Advisor a quarterly incentive fee of 30% of the trading profits.  However, the quarterly incentive fee is payable only on cumulative profits achieved from commodity trading (as defined in the Agreement), calculated separately for each partner’s interest. The incentive fee is accrued on a monthly basis and paid quarterly. Incentive fees are reflected in the Statements of Income (Loss).

 

 

 

 16 
 

 

ALTEGRIS QIM FUTURES FUND, L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

_______________

 

NOTE 5 - SERVICE FEES

 

As compensation for the continuing services of the selling agents to the Class A Limited Partners, Class A Interests pay the selling agents an ongoing monthly payment of 0.166% (2% annually) of the net asset value of interests sold by the agents that are outstanding at month-end. As compensation for the continuing services of the selling agents to the Limited Partners holding Institutional Interests, the selling agents may elect the Institutional Interests to pay the selling agents an ongoing monthly payment of 0.0417% (0.50% annually) of the net asset value of Institutional Interests sold by the agents that are outstanding at month-end. For the three and six months ended June 30, 2019, service fees for Class A Interests were $51,366 and $112,291, respectively. For the three and six months ended June 30, 2018, service fees for Class A Interests were $95,582 and $193,553, respectively. There were no service fees for Institutional Interests for the three and six months ended June 30, 2019 and 2018.

 

NOTE 6 - BROKERAGE COMMISSIONS

 

The Partnership is subject to monthly brokerage charges equal to the greater of: (A) actual commissions and expenses paid to the Clearing Broker by the Partnership; or (B) an amount equal to 0.125% of the management fee net asset value of all Limited Partners’ month-end capital account balances (1.50% annually) (the “Minimum Amount”).

 

If actual commissions and expenses paid to the Clearing Broker in a month (in (A) above) are less than the Minimum Amount, the Partnership will pay to the Introducing Broker the difference as payment for brokerage-related services, including, but not limited to, monitoring trade, execution, clearing, custodial and distribution services provided to the Partnership. If actual commissions and expenses paid to the Clearing Broker in a month (in (A) above) are greater than the Minimum Amount, the Partnership pays only the amounts described in (A) above. The Partnership’s payments of brokerage commissions to the Clearing Broker for clearing trades on its behalf, and payments to the Introducing Broker for brokerage-related services, if any, are reflected in the Statements of Income (Loss) as Brokerage Commissions.

 

NOTE 7 - FINANCIAL DERIVATIVE INSTRUMENTS

 

The Partnership engages in the speculative trading of futures contracts for the purpose of achieving capital appreciation. None of the Partnership’s derivative instruments are designated as hedging instruments, as defined in the Derivatives and Hedging Topic of the Accounting Standards Codification (“ASC”), nor are they used for other risk management purposes. The Advisor and General Partner actively assess, manage and monitor risk exposure on derivatives on a contract basis, a sector basis (e.g., interest rate derivatives, agricultural derivatives, etc.), and on an overall basis in accordance with established risk parameters. Due to the speculative nature of the Partnership’s derivative trading activity, the Partnership is subject to the risk of substantial losses from derivatives trading.

 

 

 

 17 
 

 

ALTEGRIS QIM FUTURES FUND, L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

_______________

 

 NOTE 7 - FINANCIAL DERIVATIVE INSTRUMENTS (CONTINUED)

 

The following presents the fair value of derivative contracts as of June 30, 2019 and December 31, 2018. The fair value of derivative contracts is presented as an asset if in a gain position and a liability if in a loss position. Fair value is presented on a gross basis in the table below even though the derivative contracts qualify for net presentation in the Statements of Financial Condition.

 

June 30, 2019

 

   Asset   Liability     
Type of  Derivatives   Derivatives   Net 
Futured Contracts  Fair Value   Fair Value   Fair Value 
             
Futures Contracts               
               
Currencies  $1,582   $(1,997)  $(415)
Energy   450    (3,970)   (3,520)
Interest Rates   8,664    (18,992)   (10,258)
Metals   227,742    (5,756)   221,986 
Stock Indices   65,321    (13,851)   51,470 
Treasury Rates       (24,360)   (24,360)
                
   $303,759   $(68,856)  $(234,903)

 

December 31, 2018

 

    Asset    Liability      
Type of   Derivatives    Derivatives    Net 
Futured Contracts   Fair Value    Fair Value    Fair Value 
                
Futures Contracts               
                
Currencies  $5,351   $(6,611)  $(1,260)
Energy       (60,238)   (60,238)
Interest Rates   30,959    (4,148)   26,811 
Metals   15,310        15,310 
Stock Indices   17,604    (87,631)   (70,027)
Treasury Rates   402    (8,746)   (8,344)
                
   $69,626   $(167,374)  $(97,748)

 

The following presents the trading results of the Partnership’s derivative trading and information related to the volume of the Partnership’s derivative activity for the three and six months ended June 30, 2019 and 2018.

 

 

 

 

 

 18 
 

 

ALTEGRIS QIM FUTURES FUND, L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

_______________

 

NOTE 7 - FINANCIAL DERIVATIVE INSTRUMENTS (CONTINUED)

 

The below captions of “Realized” and “Change in Unrealized” correspond to the captions in the Statements of Income (Loss) for gain (loss) on trading derivatives contracts.

 

Three Months Ended June 30, 2019
 
Type of      Change in 
Futured Contracts  Realized   Unrealized 
         
Futures Contracts          
Currencies  $6,629   $(44,830)
Energy   (38,368)   10,877 
Interest Rates   (16,728)   (26,976)
Metals   73,470    202,224 
Stock Indices   (426,134)   204,379 
Treasury Rates   (86,524)   (22,959)
           
   $(487,655)  $322,715 

 

For the three months ended June 30, 2019, the number of futures contracts closed was 1,523. These closed contract amounts are representative of the Partnership’s volume of derivative activity during the period.

 

Six Months Ended June 30, 2019
 
Type of      Change in 
Futured Contracts  Realized   Unrealized 
         
Futures Contracts          
Currencies  $(185,483)  $845 
Energy   (27,914)   56,718 
Interest Rates   197,540    (37,069)
Metals   353,856    206,676 
Stock Indices   (2,251,382)   121,497 
Treasury Rates   193,834    (16,016)
           
   $(1,719,549)  $332,651 

 

For the six months ended June 30, 2019, the number of futures contracts closed was 4,467. These closed contract amounts are representative of the Partnership’s volume of derivative activity during the period.

 

 

 

 

 19 
 

 

ALTEGRIS QIM FUTURES FUND, L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

_______________

 

NOTE 7 - FINANCIAL DERIVATIVE INSTRUMENTS (CONTINUED)

 

Three Months Ended June 30, 2018
 
Type of      Change in 
Futured Contracts  Realized   Unrealized 
         
Futures Contracts          
Currencies  $299,434   $55,446 
Energy   91,002    333,529 
Interest Rates   382,578    184,066 
Metals   (85,674)   (29,729)
Stock Indices   95,358 )   56,749 
Treasury Rates   (120,926)   179,698 
           
   $661,772   $779,759 

 

For the three months ended June 30, 2018, the number of futures contracts closed was 5,327. These closed contract amounts are representative of the Partnership’s volume of derivative activity during the period.

 

Six Months Ended June 30, 2018
 
Type of      Change in 
Futured Contracts  Realized   Unrealized 
           
Futures Contracts          
Currencies  $481,558   $(31,637)
Energy   215,789    397,261 
Interest Rates   467,923    79,073 
Metals   355,144    (337,778)
Stock Indices   (2,145,897)   187,440 
Treasury Rates   (239,823)   (192,042)
           
   $(865,306)  $102,317 

 

For the six months ended June 30, 2018, the number of futures contracts closed was 10,083. These closed contract amounts are representative of the Partnership’s volume of derivative activity during the period.

 

With respect to futures contracts and options on futures contracts, the Partnership has entered into an agreement with the Clearing Broker which grants the Clearing Broker the right to offset recognized derivative assets and derivative liabilities if certain conditions exist, which would require the Clearing Broker to liquidate the Partnership’s positions. These events include the following: (i) the Clearing Broker is directed or required by a regulatory or self-regulatory organization, (ii) the Clearing Broker

 

 

 

 20 
 

ALTEGRIS QIM FUTURES FUND, L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

_______________

 

NOTE 7 - FINANCIAL DERIVATIVE INSTRUMENTS (CONTINUED)

 

determines, at its discretion, that the risk in the Partnership’s account must be reduced for protection of the Clearing Broker, (iii) upon the Partnership’s breach or failure to perform on its contractual agreements with the Clearing Broker, (iv) upon the commencement of bankruptcy, insolvency or similar proceeding for the protection of creditors against the Partnership, or (v) upon the dissolution, winding-up, liquidation or merger of the Partnership.

 

The following table summarizes the disclosure requirements for offsetting assets and liabilities:

 

 

Offsetting the Financial Assets and Derivative Assets                  
As of June 30, 2019              

Gross Amounts Not Offset in the

Statements of Financial Condition

     
                                    
Description   Gross Amounts of Recognized Assets     Gross Amounts Offset in the Statements of Financial Condition     

Net Amounts of Assets

Presented in the Statements of Financial Condition

   Financial Instruments   Cash Collateral Received (1)    Net Amount 
                                
Futures Contracts*   241,094     (39,209)     201,885          201,885 

 

Offsetting the Financial Liabilities and Derivative Liabilities               
As of June 30, 2019          

Gross Amounts Not Offset in the

Statements of Financial Condition

    
                        
Description   Gross Amounts of Recognized Liabilities    Gross Amounts Offset in the Statements of Financial Condition    Net Amounts of Liabilities Presented in the Statements of Financial Condition   Financial
Instruments
   Cash Collateral Pledged (1)    Net Amount 
                             
Futures Contracts*   (39,209)   39,209               

 

Offsetting the Financial Assets and Derivative Assets                  
As of December 31, 2018              

Gross Amounts Not Offset in the

Statements of Financial Condition

     
                                    
Description   Gross Amounts of Recognized Assets     Gross Amounts Offset in the Statements of Financial Condition     

Net Amounts of Assets

Presented in the Statements of Financial Condition

   Financial Instruments   Cash Collateral Received (1)    Net Amount 
                                
Futures Contracts*   46,809     (46,809)                 

 

Offsetting the Financial Liabilities and Derivative Liabilities               
As of December 31, 2018          

Gross Amounts Not Offset in the

Statements of Financial Condition

    
                        
Description   Gross Amounts of Recognized Liabilities    Gross Amounts Offset in the Statements of Financial Condition    Net Amounts of Liabilities Presented in the Statements of Financial Condition   Financial
Instruments
   Cash Collateral Pledged (1)    Net Amount 
                             
Futures Contracts*   (98,826)   46,809    (52,017)     52,017     

 

(1) The Partnership posted additional collateral of $758,736 for 2019 and $1,066,066 for 2018 with the Clearing Broker. The Partnership may post collateral due to a variety of factors that may include, without limitation, initial margin or other requirements that are based on notional amounts which may exceed the fair value of the derivative contract.

* Futures contracts excludes settled variation margin.

 

 

 21 
 

 

 

ALTEGRIS QIM FUTURES FUND, L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

_______________

 

NOTE 8 - FINANCIAL INSTRUMENTS, OFF-BALANCE SHEET RISKS AND UNCERTAINTIES

 

The Partnership participates in the speculative trading of commodity futures contracts, substantially all of which are subject to margin requirements. The minimum amount of margin required for each contract is set from time to time in response to various market factors by the respective exchanges and interbank market makers. Further, the Clearing Broker has the right to require margin in excess of the minimum exchange requirement. Risk arises from changes in the value of these contracts (market risk) and the potential inability of brokers or interbank market makers to perform under the terms of their contracts (credit risk).

 

All of the contracts currently traded by the Partnership are exchange traded. The risks associated with exchange-traded contracts are generally perceived to be less than those associated with over-the-counter transactions because, in over-the-counter transactions, the Partnership must rely solely on the credit of its respective individual counterparties. However, in the future, if the Partnership were to enter into non-exchange traded contracts, it would be subject to the credit risk associated with counterparty non-performance. The credit risk from counterparty non-performance associated with such instruments is the net unrealized gain, if any.

 

The Partnership also has credit risk because the sole counterparty to all domestic futures contracts is the exchange clearing corporation. In addition, the Partnership bears the risk of financial failure by the Clearing Broker. The Partnership's policy is to continuously monitor its exposure to market and counterparty risk through the use of a variety of financial position and credit exposure reporting and control procedures. In addition, the Partnership has a policy of reviewing the credit standing of each clearing broker or counterparty with which it conducts business.

 

The Partnership has a substantial portion of its assets on deposit with the Custodian in U.S. government agency bonds and notes, corporate notes and certificates of deposit.  Risks arise from investments in bonds and notes due to possible illiquidity and the potential for default by the issuer or counterparty.  Such instruments are also sensitive to changes in interest rates and economic conditions.

 

NOTE 9 - INDEMNIFICATIONS

 

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

 

 

 

 22 
 

 

ALTEGRIS QIM FUTURES FUND, L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

_______________

 

NOTE 10 - FINANCIAL HIGHLIGHTS

 

The following information presents the financial highlights of the Partnership for the three and six months ended June 30, 2019 and 2018. This information has been derived from information presented in the financial statements.

 

   Three Months ended June 30, 2019 
           Institutional 
   Class A   Class B   Interest 
             
Total return for Limited Partners (2)               
Total return prior to incentive fees   (2.03%)   (1.54%)   (1.33%)
Incentive fees   0.00%    (0.10%)   0.00% 
                
Total return after incentive fees   (2.03%)   (1.64%)   (1.33%)
                
Ratio to average net asset value               
Expenses prior to incentive fees (1)   4.99%    3.04%    2.08% 
Incentive fees (2)   0.00%    0.10%    0.00% 
                
Total expenses   4.99%    3.14%    2.08% 
                
Net investment loss (1) (3)   (2.91%)   (0.95%)   (0.11%)

 

   Six Months ended June 30, 2019 
           Institutional 
   Class A   Class B   Interest 
             
Total return for Limited Partners (2)               
Total return prior to incentive fees   (9.18%)   (8.27%)   (7.89%)
Incentive fees   0.00%    (0.10%)   0.00% 
                
Total return after incentive fees   (9.18%)   (8.37%)   (7.89%)
                
Ratio to average net asset value               
Expenses prior to incentive fees (1)   4.87%    2.94%    2.12% 
Incentive fees (2)   0.00%    0.10%    0.00% 
                
Total expenses   4.87%    3.04%    2.12% 
                
Net investment loss (1) (3)   (2.78%)   (0.85%)   (0.02%)

 

 

 

 23 
 

 

ALTEGRIS QIM FUTURES FUND, L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

_______________

 

NOTE 10 - FINANCIAL HIGHLIGHTS (CONTINUED)

 

   Three Months ended June 30, 2018 
           Institutional 
   Class A   Class B   Interest 
             
Total return for Limited Partners (2)               
Total return prior to incentive fees   4.09%    4.61%    4.83% 
Incentive fees   (0.01%)   0.00%    0.00% 
                
Total return after incentive fees   4.08%    4.61%    4.83% 
                
Ratio to average net asset value               
Expenses prior to incentive fees (1)   4.69%    2.69%    1.79% 
Incentive fees (2)   0.01%    0.00%    0.00% 
                
Total expenses   4.70%    2.69%    1.79% 
                
Net investment loss (1) (3)   (3.07%)   (1.06%)   (0.21%)

 

   Six Months ended June 30, 2018 
           Institutional 
   Class A   Class B   Interest 
             
Total return for Limited Partners (2)               
Total return prior to incentive fees   (4.40%)   (3.45%)   (3.04%)
Incentive fees   (0.01%)   0.00%    0.00% 
                
Total return after incentive fees   (4.41%)   (3.45%)   (3.04%)
                
Ratio to average net asset value               
Expenses prior to incentive fees (1)   4.58%    2.61%    1.76% 
Incentive fees (2)   0.01%    0.00%    0.00% 
                
Total expenses   4.59%    2.61%    1.76% 
                
Net investment loss (1) (3)   (3.14%)   (1.16%)   (0.33%)

 

Total return and the ratios to average net asset value are calculated for each class of Limited Partners’ capital taken as a whole. An individual Limited Partner’s total return and ratios may vary from the above returns and ratios due to the timing of their contributions and withdrawals and differing fee structures.

 

Total return is calculated on a monthly compounded basis.

 

(1)Annualized.
(2)Not annualized.
(3)Excludes incentive fee.

 

 

 

 24 
 

 

ALTEGRIS QIM FUTURES FUND, L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

_______________

 

NOTE 11 - SUBSEQUENT EVENTS

 

Management of the Partnership evaluated subsequent events through the date these financial statements were available to be issued, and concluded that no events subsequent to June 30, 2019 have occurred that would require recognition or disclosure, except as noted below.

 

From July 1, 2019 through August 14, 2019, the Partnership had redemptions of $200,848.

 

 

 

 

 

 

 

 

 

 25 
 

 

Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

Reference is made to “Item 1: Financial Statements.” The information contained therein is essential to, and should be read in conjunction with, the following analysis.

 

Liquidity

 

The Partnership’s assets are generally held as cash or cash equivalents, which are used to margin the Partnership’s futures positions and are sold to pay redemptions and expenses as needed. Other than any potential market-imposed limitations on liquidity, the Partnership’s assets are highly liquid and are expected to remain so. Market-imposed limitations, when they occur, can be due to limited open interest in certain futures markets or to daily price fluctuation limits, which are inherent in the Partnership’s futures trading. A portion of the Partnership’s assets not used for margin and held with the Custodian are invested in liquid, high quality securities. Through March 31st, 2019, the Partnership experienced no meaningful periods of illiquidity in any of the markets traded by the Advisor on behalf of the Partnership.

 

Capital Resources

 

The Partnership raises additional capital only through the sale of Interests and capital is increased through trading profits (if any) and interest income. The Partnership does not engage in borrowing.

 

The amount of capital raised for the Partnership should not have a significant impact on its operations, as the Partnership has no significant capital expenditure or working capital requirements other than for capital to pay trading losses, brokerage commissions and expenses. Within broad ranges of capitalization, the Partnership’s trading positions should increase or decrease in approximate proportion to the size of the Partnership.

 

The Partnership participates in the speculative trading of commodity futures contracts and may trade options on futures contracts and forward contracts, substantially all of which are subject to margin requirements. The minimum amount of margin required for each contract is set from time to time in response to various market factors by the respective exchanges. Further, the Partnership’s futures commission merchants and brokers may require margin in excess of minimum exchange requirements.

 

All of the futures contracts currently traded by the Advisor on behalf of the Partnership are exchange-traded. The risks associated with exchange-traded contracts are generally perceived to be less than those associated with over-the-counter transactions because, in over-the-counter transactions, the Partnership must rely solely on the credit of its trading counterparties, whereas exchange-traded contracts are generally, but not universally, backed by the collective credit of the members of the exchange. In the future, the Partnership anticipates that it will enter into non-exchange-traded foreign currency contracts and be subject to the credit risk associated with counterparty non-performance.

 

The Partnership bears the risk of financial failure by the Clearing Broker and/or other clearing brokers or counterparties with which the Partnership trades.

 

Results of Operations

 

The Partnership’s success depends primarily upon the Advisor’s ability to recognize and capitalize on market trends in the sectors of the global commodity futures markets in which it trades. The Partnership seeks to produce long-term capital appreciation through growth, and not current income. The past performance of the Partnership is not necessarily indicative of future results.

 

Due to the nature of the Partnership’s trading, the results of operations for the interim period presented should not be considered indicative of the results that may be expected for the entire year.

 

 

 

 

 26 
 

 

Performance Summary

 

Three Months Ended June 30, 2019

 

During the second quarter of 2019, the Partnership incurred net realized and unrealized losses of $218,842 from its trading activities, net of brokerage commissions of $57,956. The Partnership accrued total expenses of $172,367, including $47,531 in management fees paid to the General Partner, $4,793 in incentive fees, and $98,429 in service and professional fees. The Partnership earned $80,859 in interest income during the second quarter of 2019. An analysis of the profits and losses generated from the Partnership’s commodity futures trading activities for the second quarter of 2019 is set forth below.

 

Second Quarter 2019: The Partnership’s trading advisor, QIM believes that numerous small inefficiencies exist in financial markets that can be exploited through the prudent use of robust analysis and predictive technologies. The trading program currently employs several thousand quantitative trading models that utilize pattern recognition to predict short-term price movements in global futures markets. All models are tested across large data sets that expose them to a wide range of market, economic, and political environments, as well as a wide range of time frames and interactions. Only those models that prove to be the most robust, statistically significant, and conceptually diverse are used in actual trading. The resultant system of models offers what QIM believes to be reliable signals that guide market timing and trade allocation. Second quarter performance of the Partnership as a result of QIM’s trading program is as follows: The Partnership was negative in April of 2019. Losses were driven primarily by stock index trading, which was significantly the most underperforming sector. Metals were also slightly negative which further detracted from returns. Energy trading contributed to losses, while interest rates were close to flat. Currencies were slightly positive, although gains were not enough to offset overall declines. The Partnership was negative in May of 2019. Trading in stock indices detracted the most from performance. Interest rate trading also added to losses. Metals, currencies, and energies produced slightly positive results, but did not provide a meaningful impact to performance. The Partnership was positive in June of 2019. Positions in stock indices were responsible for the majority of profits. Trading in metals also resulted in meaningful gains. Energies were close to flat, which did not provide a significant effect on aggregate returns. Exposure to currencies and interest rates underperformed, detracting from performance.

 

 

Three Months Ended June 30, 2018

 

During the second quarter of 2018, the Partnership achieved net realized and unrealized gains of $1,332,191 from its trading activities, net of brokerage commissions of $104,527. The Partnership accrued total expenses of $282,132, including $84,466 in management fees paid to the General Partner, $1,384 in incentive fees, and $149,285 in service and professional fees. The Partnership earned $115,975 in interest income during the second quarter of 2018. An analysis of the profits and losses generated from the Partnership’s commodity futures trading activities for the second quarter of 2018 is set forth below.

 

Second Quarter 2018. The Partnership’s trading advisor, QIM believes that numerous small inefficiencies exist in financial markets that can be exploited through the prudent use of robust analysis and predictive technologies. The trading program currently employs several thousand quantitative trading models that utilize pattern recognition to predict short-term price movements in global futures markets. All models are tested across large data sets that expose them to a wide range of market, economic, and political environments, as well as a wide range of time frames and interactions. Only those models that prove to be the most robust, statistically significant, and conceptually diverse are used in actual trading. The resultant system of models offers what QIM believes to be reliable signals that guide market timing and trade allocation. Second quarter performance of the Partnership as a result of QIM’s trading program is as follows: The Partnership was modestly positive in April of 2018. Gains were driven solely by interest rate trading, which was the only positive performing sector. These gains were substantial enough to outperform losses from all other sectors. Each additional sector detracted slightly from performance. Currencies were the worst performing sector, followed closely by equities, energies, and metals to a lesser degree. The Partnership enjoyed positive returns in May of 2018. Gains were driven primarily by interest rate trading, which was significantly the best performing sector once again. Stock index trading was the worst performing sector, detracting the most from aggregate returns. Currencies and energies posted profits that contributed positively to performance. Metals were slightly negative, but did not meaningfully drag overall performance. The Partnership was positive in June of 2018. Profits were led by equities and energies which were the best performing sectors. Interest rate trading resulted in the most significant losses, giving back some of the gains earned earlier in the quarter. Positions in currencies produced favorable returns but were somewhat offset by moderately negative performance from the metals sector.

 

 

 

 27 
 

 

Six Months Ended June 30, 2019

 

During the six months ended June 30, 2019, the Partnership incurred net realized and unrealized losses of $1,512,500 from its trading activities, net of brokerage commissions of $128,289. The Partnership accrued total expenses of $368,571, including $105,132 in management fees paid to the General Partner, $4,793 in incentive fees, and $212,198 in service and professional fees. The Partnership earned $181,108 in interest income during the six months ended June 30, 2019. An analysis of the profits and losses generated from the Partnership’s commodity futures trading activities for the six months ended June 30, 2019 is set forth below.

 

Second Quarter 2019. The Partnership’s trading advisor, QIM believes that numerous small inefficiencies exist in financial markets that can be exploited through the prudent use of robust analysis and predictive technologies. The trading program currently employs several thousand quantitative trading models that utilize pattern recognition to predict short-term price movements in global futures markets. All models are tested across large data sets that expose them to a wide range of market, economic, and political environments, as well as a wide range of time frames and interactions. Only those models that prove to be the most robust, statistically significant, and conceptually diverse are used in actual trading. The resultant system of models offers what QIM believes to be reliable signals that guide market timing and trade allocation. Second quarter performance of the Partnership as a result of QIM’s trading program is as follows: The Partnership was negative in April of 2019. Losses were driven primarily by stock index trading, which was significantly the most underperforming sector. Metals were also slightly negative which further detracted from returns. Energy trading contributed to losses, while interest rates were close to flat. Currencies were slightly positive, although gains were not enough to offset overall declines. The Partnership was negative in May of 2019. Trading in stock indices detracted the most from performance. Interest rate trading also added to losses. Metals, currencies, and energies produced slightly positive results, but did not provide a meaningful impact to performance. The Partnership was positive in June of 2019. Positions in stock indices were responsible for the majority of profits. Trading in metals also resulted in meaningful gains. Energies were close to flat, which did not provide a significant effect on aggregate returns. Exposure to currencies and interest rates underperformed, detracting from performance.

 

First Quarter 2019. The Partnership’s trading advisor, QIM believes that numerous small inefficiencies exist in financial markets that can be exploited through the prudent use of robust analysis and predictive technologies. The trading program currently employs several thousand quantitative trading models that utilize pattern recognition to predict short-term price movements in global futures markets. All models are tested across large data sets that expose them to a wide range of market, economic, and political environments, as well as a wide range of time frames and interactions. Only those models that prove to be the most robust, statistically significant, and conceptually diverse are used in actual trading. The resultant system of models offers what QIM believes to be reliable signals that guide market timing and trade allocation. First quarter performance of the Partnership as a result of QIM’s trading program is as follows: The Partnership was negative in January of 2019. Losses were driven primarily by stock index trading, which was significantly the most underperforming sector. Currencies were also slightly negative which further detracted from returns. Metals were the best performing sector, although gains were not enough to offset overall declines. Energies were also positive, however not significant enough to deter losses while interest rates were flat. The Partnership was negative in February of 2019. Trading in stock indices detracted the most from performance. Metals, currencies, and energies were also underperformers adding to losses. Interest rate trading produced slightly positive results but did not provide a meaningful impact to performance. The Partnership was negative in March of 2019. Positions in stock indices were responsible for the majority of losses. Profits from interest rate trading worked towards minimizing the impact of declines and metals were also slightly positive. Exposure to currencies and energies resulted in moderate declines which contributed to aggregate negative performance.

 

Six Months Ended June 30, 2018

 

During the six months ended June 30, 2018, the Partnership incurred net realized and unrealized losses of $992,378 from its trading activities, net of brokerage commissions of $217,516. The Partnership accrued total expenses of $565,463, including $175,559 in management fees paid to the General Partner, $1,384 in incentive fees, and $302,474 in service and professional fees. The Partnership earned $211,242 in interest income during the six months ended June 30, 2018. An analysis of the profits and losses generated from the Partnership’s commodity futures trading activities for the six months ended June 30, 2018 is set forth below.

 

 

 

 28 
 

 

Second Quarter 2018. The Partnership’s trading advisor, QIM believes that numerous small inefficiencies exist in financial markets that can be exploited through the prudent use of robust analysis and predictive technologies. The trading program currently employs several thousand quantitative trading models that utilize pattern recognition to predict short-term price movements in global futures markets. All models are tested across large data sets that expose them to a wide range of market, economic, and political environments, as well as a wide range of time frames and interactions. Only those models that prove to be the most robust, statistically significant, and conceptually diverse are used in actual trading. The resultant system of models offers what QIM believes to be reliable signals that guide market timing and trade allocation. Second quarter performance of the Partnership as a result of QIM’s trading program is as follows: The Partnership was modestly positive in April of 2018. Gains were driven solely by interest rate trading, which was the only positive performing sector. These gains were substantial enough to outperform losses from all other sectors. Each additional sector detracted slightly from performance. Currencies were the worst performing sector, followed closely by equities, energies, and metals to a lesser degree. The Partnership enjoyed positive returns in May of 2018. Gains were driven primarily by interest rate trading, which was significantly the best performing sector once again. Stock index trading was the worst performing sector, detracting the most from aggregate returns. Currencies and energies posted profits that contributed positively to performance. Metals were slightly negative, but did not meaningfully drag overall performance. The Partnership was positive in June of 2018. Profits were led by equities and energies which were the best performing sectors. Interest rate trading resulted in the most significant losses, giving back some of the gains earned earlier in the quarter. Positions in currencies produced favorable returns but were somewhat offset by moderately negative performance from the metals sector.

 

First Quarter 2018. The Partnership’s trading advisor, QIM believes that numerous small inefficiencies exist in financial markets that can be exploited through the prudent use of robust analysis and predictive technologies. The trading program currently employs several thousand quantitative trading models that utilize pattern recognition to predict short-term price movements in global futures markets. All models are tested across large data sets that expose them to a wide range of market, economic, and political environments, as well as a wide range of time frames and interactions. Only those models that prove to be the most robust, statistically significant, and conceptually diverse are used in actual trading. The resultant system of models offers what QIM believes to be reliable signals that guide market timing and trade allocation. First quarter performance of the Partnership as a result of QIM’s trading program is as follows: The Partnership was negative in January of 2018. Losses were driven primarily by the stock index sector, which was the worst performing sector. Losses from stock indices were somewhat offset by results from the other sectors; however the offsetting performance was insufficient in creating cumulative positive returns. Currencies were the best performing sector, closely followed by metals. Interest rate trading contributed positively to performance ahead of energies which were also positive to a lesser degree. The Partnership suffered losses for the month of February 2018. Losses were driven primarily by the stock index sector, which was significantly the worst performing sector. Currencies were the next underperforming sector detracting from returns, followed by metals which were only slightly negative. Interest rate performance was mixed, and exposures to energy contracts produced insignificant gains that were close to flat. The Partnership enjoyed positive returns for the month of March 2018. Profits were driven primarily by the stock index sector, which was the best performing sector followed by energies. Gains from stock index and energy trading were partially offset by losses in the interest rate sector, which was the worst performing sector. Currencies were mixed, and positions in the metals sector contributed minimal gains.

 

Off-Balance Sheet Arrangements

 

The Partnership does not engage in off-balance sheet arrangements with other entities.

 

Item 3: Quantitative and Qualitative Disclosures About Market Risk.

 

Not required.

 

Item 4: Controls and Procedures.

 

The General Partner, with the participation of the General Partner’s principal executive officer and principal financial officer, has evaluated the effectiveness of the design and operation of its disclosure controls and procedures with respect to the Partnership as of the end of the period covered by this quarterly report, and, based on their evaluation, has concluded that these disclosure controls and procedures are effective. There were no significant changes in the General Partner’s internal controls over financial reporting with respect to the Partnership or in other factors applicable to the Partnership that could significantly affect these controls subsequent to the date of the evaluation.

 

 

 

 29 
 

 

PART II – OTHER INFORMATION

 

Item 1: Legal Proceedings.

 

None.

 

Item 1A: Risk Factors.

 

Not required.

 

Item 2: Unregistered Sales of Equity Securities and Use of Proceeds.

 

(a) None.

 

(b) Not applicable.

 

(c) Limited Partners may redeem some or all of their Interest in the Partnership as of the end of any calendar month upon fifteen (15) days’ prior written notice to the General Partner. The Partnership may declare additional redemption dates upon notice to the Limited Partners. The redemption by a Limited Partner has no impact on the value of the capital accounts of the remaining Limited Partners. The following table summarizes the redemptions by Limited Partners during the second calendar quarter of 2019:

 

Month   Amount Redeemed 
April 30, 2019   $585,550 
May 31, 2019   $413,692 
June 30, 2019   $1,131,997 

 

Item 3: Defaults Upon Senior Securities.

 

(a) None.

 

(b) None.

 

Item 4: Mine Safety Disclosure.

 

Not applicable.

 

Item 5: Other Information.

 

(a) None.

 

(b) Not applicable.

 

 

 

 30 
 

 

Item 6: Exhibits.

 

The following exhibits are incorporated herein by reference from the exhibits of the same numbers and descriptions filed with the registrant’s Registration Statement on Form 10 (File No. 000-53815) filed on November 2, 2009.

 

Exhibit Number Description of Document
3.1 Certificate of Formation of APM – QIM Futures Fund, L.P.
10.1 Agreement with Quantitative Investment Management LLC
10.2 Selling Agency Agreement between APM – QIM Futures Fund, L.P. and Altegris Investments Inc.

 

The following exhibit is incorporated herein by reference from the exhibit of the same number and description filed with the registrant’s Current Report on Form 8-K (File No. 000-53815) filed on August 5, 2010.

 

Exhibit Number Description of Document
3.01 Amendment to the Certificate of Formation of APM – QIM Futures Fund, L.P., changing the registrant’s name to Altegris QIM Futures Fund, L.P.

 

The following exhibit is incorporated herein by reference from the exhibit of the same number and description filed with the registrant’s Annual Report on Form 10-K (File No. 000-53815) filed on March 31, 2015.

 

Exhibit Number Description of Document
4.1 Second Amended and Restated Agreement of Limited Partnership of Altegris QIM Futures Fund, L.P.

 

The following exhibits are included herewith.

 

Exhibit Number Description of Document
31.01 Rule 13a-14(a)/15d-14(a) Certification
32.01 Section 1350 Certification
101.INS XBRL Instance Document
101.SCH XBRL Schema Document
101.CAL XBRL Calculation Linkbase Document
101.DEF XBRL Definition Linkbase Document
101.LAB XBRL Label Linkbase Document
101.PRE XBRL Presentation Linkbase Document

 

 

 

 

 

 

 

 

 

 

 

 

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SIGNATURES

 

 

Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Dated: August 14, 2019

 

ALTEGRIS QIM FUTURES FUND, L.P.

 

By:  ALTEGRIS ADVISORS, L.L.C.,
    its general partner

 

 

 

/s/ Martin Beaulieu                                                                     
Martin Beaulieu, Principal Executive Officer and Principal Financial Officer  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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