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Cavendish Futures Fund LLC – ‘10-Q’ for 9/30/19

On: Thursday, 11/14/19, at 11:14am ET · For: 9/30/19 · Accession #: 1104659-19-63940 · File #: 0-55213

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

11/14/19  Cavendish Futures Fund LLC        10-Q        9/30/19   39:5.8M                                   Toppan Merrill/FA

Quarterly Report — Form 10-Q — Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        Quarterly Report                                    HTML    587K 
 2: EX-31.1     Certification -- §302 - SOA'02                      HTML     20K 
 3: EX-31.2     Certification -- §302 - SOA'02                      HTML     20K 
 4: EX-32.1     Certification -- §906 - SOA'02                      HTML     15K 
 5: EX-32.2     Certification -- §906 - SOA'02                      HTML     15K 
18: R1          Document and Entity Information                     HTML     40K 
29: R2          Statements of Financial Condition                   HTML     54K 
39: R3          Statements of Financial Condition (Parenthetical)   HTML     19K 
24: R4          Statements of Operations and Changes in Members'    HTML     63K 
                Capital                                                          
17: R5          Statements of Operations and Changes in Members'    HTML     17K 
                Capital (Parenthetical)                                          
28: R6          General                                             HTML    401K 
38: R7          Financial Highlights                                HTML    173K 
23: R8          Trading Activities                                  HTML    155K 
19: R9          Fair Value Measurements                             HTML    125K 
35: R10         Financial Instrument Risks                          HTML     21K 
31: R11         Significant Accounting Policies                     HTML     23K 
13: R12         Subsequent Events                                   HTML     17K 
25: R13         Significant Accounting Policies (Policies)          HTML     36K 
36: R14         General (Tables)                                    HTML    393K 
32: R15         Financial Highlights (Tables)                       HTML    173K 
14: R16         Trading Activities (Tables)                         HTML    153K 
26: R17         Fair Value Measurements (Tables)                    HTML    114K 
34: R18         General - Statements of Financial Condition         HTML     73K 
                (Details)                                                        
33: R19         General - Condensed Schedule of Investments         HTML    113K 
                (Details)                                                        
15: R20         General - Statements of Operations and Changes in   HTML     69K 
                Member's Capital (Details)                                       
21: R21         Financial Highlights (Details)                      HTML     48K 
37: R22         Trading Activities (Details)                        HTML     83K 
27: R23         Fair Value Measurements (Details)                   HTML     42K 
16: R24         Significant Accounting Policies (Details)           HTML     21K 
22: R25         Subsequent Events (Details)                         HTML     20K 
30: XML         IDEA XML File -- Filing Summary                      XML     61K 
12: EXCEL       IDEA Workbook of Financial Reports                  XLSX     39K 
 6: EX-101.INS  XBRL Instance -- cavf-20190930                       XML   2.28M 
 8: EX-101.CAL  XBRL Calculations -- cavf-20190930_cal               XML     95K 
11: EX-101.DEF  XBRL Definitions -- cavf-20190930_def                XML    266K 
 9: EX-101.LAB  XBRL Labels -- cavf-20190930_lab                     XML    510K 
10: EX-101.PRE  XBRL Presentations -- cavf-20190930_pre              XML    378K 
 7: EX-101.SCH  XBRL Schema -- cavf-20190930                         XSD     98K 
20: ZIP         XBRL Zipped Folder -- 0001104659-19-063940-xbrl      Zip    101K

‘10-Q’ — Quarterly Report
Document Table of Contents

Page	(sequential)	(alphabetic)	↑Top
		Alternative Formats (Word, et al.) Controls and Procedures Financial Information Financial Statements Item 1 Item 2 Item 3 Item 4 Management's Discussion and Analysis of Financial Condition and Results of Operations Notes to Financial Statements, including the Financial Statements of Sydling WNT Master Fund LLC (unaudited) Other Information Part I -- Financial Information Part II -- Other Information Quantitative and Qualitative Disclosures about Market Risk Statements of Financial Condition at September 30, 2019 (unaudited) and December 31, 2018 Statements of Operations and Changes in Members' Capital for the three and nine months ended September 30, 2019 and 2018 (unaudited) Table of Contents
1	1st Page – Filing Submission
"	Table of Contents
"	Part I -- Financial Information
"	Item 1
"	Financial Statements
"	Statements of Financial Condition at September 30, 2019 (unaudited) and December 31, 2018
"	Statements of Operations and Changes in Members' Capital for the three and nine months ended September 30, 2019 and 2018 (unaudited)
"	Notes to Financial Statements, including the Financial Statements of Sydling WNT Master Fund LLC (unaudited)
"	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

This is an HTML Document rendered as filed. [ Alternative Formats ]

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 September 30, 2019

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

For the transition period from to .

Commission File Number 000-55213

CAVENDISH FUTURES FUND LLC

(Exact name of registrant as specified in its charter)

Delaware		38-3849454
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

c/o UBS Alternatives LLC

1285 Avenue of the Americas, 20th Floor

New York, New York 10019

(Address of principal executive offices) (Zip Code)

(212) 713-3234

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x 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 the chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x 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. (Check one):

Large accelerated filer o		Accelerated filer o

Non-accelerated filer x		Smaller reporting company o

Emerging Growth company o

If an emerging growth company, indicate by checkmark 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.

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

As of October 31, 2019, 92,580.635 Limited Liability Company Redeemable Units were outstanding.

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

Title of eacth class		Trading Symbol(s)		Name of each exchange on which registered
N/A		N/A		N/A

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CAVENDISH FUTURES FUND LLC

Form 10-Q

Index

				Page
				Number

PART I — Financial Information:
		Item 1.	Financial Statements:

			Statements of Financial Condition at September 30, 2019 (unaudited) and December 31, 2018	3

			Statements of Operations and Changes in Members’ Capital for the three and nine months ended September 30, 2019 and 2018 (unaudited)	4

			Notes to Financial Statements, including the Financial Statements of Sydling WNT Master Fund LLC (unaudited)	5 – 18

		Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19 – 22

		Item 3.	Quantitative and Qualitative Disclosures about Market Risk	23 – 24

		Item 4.	Controls and Procedures	25

PART II — Other Information				26 – 28

Exhibits
	Exhibit 31.1 — Certification

	Exhibit 31.2 — Certification

	Exhibit 32.1 — Certification

	Exhibit 32.2 — Certification

	Exhibit 101.INS — XBRL Instance Document

	Exhibit 101.SCH — XBRL Taxonomy Extension Schema Document.

	Exhibit 101.CAL — XBRL Taxonomy Extension Calculation Linkbase Document.

	Exhibit 101.LAB — XBRL Taxonomy Extension Label Linkbase Document.

	Exhibit 101.PRE — XBRL Taxonomy Extension Presentation Linkbase Document.

	Exhibit 101.DEF — XBRL Taxonomy Extension Definition Document.

Table of Contents

PART I

Item 1. Financial Statements

Cavendish Futures Fund LLC

Statements of Financial Condition

	(Unaudited)
	September 30, 2019		December 31, 2018
ASSETS

Investment in Sydling WNT Master Fund LLC, at fair value	$	109,282,243	$	162,308,934
Cash	398,622		1,513,137
Receivable from Sydling WNT Master Fund LLC	1,907,688		4,774,709
Total Assets	$	111,588,553	$	168,596,780

LIABILITIES

Subscriptions received in advance	$	325,000	$	1,425,000
Redemptions payable	1,672,573		4,467,098
Accrued expenses:
Advisory fees	138,925		208,818
Administrative fees	46,308		69,606
Professional fees and other expenses	123,504		117,324
Total Liabilities	2,306,310		6,287,846

MEMBERS’ CAPITAL

Member Designee (25.000 Redeemable Units)	29,116		28,165
Non-managing Members (93,809.364 and 144,042.770 Redeemable Units)	109,253,127		162,280,769

Total Members’ Capital	109,282,243		162,308,934
Total Liabilities and Members’ Capital	$	111,588,553	$	168,596,780
Members’ Capital per Redeemable Unit (based on 93,834.364 and 144,067.770 Redeemable Units)	$	1,164.63	$	1,126.62

See accompanying notes to financial statements and attached financial statements of Sydling WNT Master Fund LLC.

Table of Contents

Cavendish Futures Fund LLC

Statements of Operations and Changes in Members’ Capital

(Unaudited)

	Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended
	September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018

INVESTMENT INCOME

Interest allocated from Sydling WNT Master Fund LLC	$	571,015		$	896,854		$	2,312,625		$	2,322,287

EXPENSES

Expenses allocated from Sydling WNT Master Fund LLC	1,069,719			1,656,514			3,646,729			5,000,751
Incentive fees	—			311,386			—			311,386
Advisory fees	432,501			681,344			1,482,401			2,050,872
Administrative fees	144,167			227,115			494,134			683,624
Professional fees and other expenses	105,113			95,324			261,446			272,840
Total Expenses	1,751,500			2,971,683			5,884,710			8,319,473

NET INVESTMENT (LOSS)	(1,180,485		)	(2,074,829		)	(3,572,085		)	(5,997,186		)

TRADING RESULTS

Net realized gain/(loss) allocated from Sydling WNT Master Fund LLC	9,143,321			6,419,631			319,922			9,320,562
Net change in unrealized appreciation/(depreciation) allocated from Sydling WNT Master Fund LLC	(717,035		)	(2,774,847		)	6,217,499			(3,224,543		)
Total Trading Results	8,426,286			3,644,784			6,537,421			6,096,019

Net income/(loss)	7,245,801			1,569,955			2,965,336			98,833

Subscriptions — 849.732, 1,576.925, 3,670.612 and 9,476.901 units of non-managing member interest, respectively	971,000			1,855,500			4,134,500			11,110,100
Redemptions — 7,787.526, 3,729.473, 53,904.019 and 12,873.122 units of non-managing member interest, respectively	(9,029,545		)	(4,406,042		)	(60,126,527		)	(15,106,054		)

Net increase/(decrease) in Members’ Capital	(812,744		)	(980,587		)	(53,026,691		)	(3,897,121		)

Members’ Capital, beginning of period	$	110,094,987		$	180,434,341		$	162,308,934		$	183,350,875

Members’ Capital, end of period	$	109,282,243		$	179,453,754		$	109,282,243		$	179,453,754

Net income/(loss) per Redeemable Unit *	$	72.12		$	10.25		$	38.01		$	0.85

Weighted average Redeemable Units outstanding	95,495.541			151,730.362			117,734.715			154,302.899

See accompanying notes to financial statements and attached financial statements of Sydling WNT Master Fund LLC.

* Represents the changes in Members’ Capital per unit

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Cavendish Futures Fund LLC

Notes to Financial Statements

September 30, 2019

(Unaudited)

1. General

Cavendish Futures Fund LLC (the “Fund”) is a Delaware limited liability company formed on August 7, 2012. Trading operations of the Fund commenced on February 19, 2013. The Fund’s investment objective is to achieve capital appreciation through speculative trading in U.S. and international futures, options on futures and forward markets. The Fund may also engage in swap and other derivative transactions upon approval of Sydling Futures Management LLC (“Sydling”). The Fund privately and continuously offers redeemable units of limited liability company interest in the Fund (“Redeemable Units”) to qualified investors and subscriptions are generally accepted monthly. There is no maximum number of Redeemable Units that may be sold by the Fund. The Fund invests substantially all of its assets in the Sydling WNT Master Fund LLC (“Master Fund”), also a Delaware limited liability company, which has the same investment objective as the Fund. The Master Fund’s Statements of Financial Condition, including Condensed Schedules of Investments and Statements of Operations and Changes in Member’s Capital are included herein. The percentage of the Master Fund’s capital owned by the Fund at September 30, 2019 and December 31, 2018 was 100%. The performance of the Fund is directly affected by the performance of the Master Fund.

The Fund is member managed for purposes of Delaware law. Pursuant to the Fund’s limited liability company agreement, as may be amended from time to time (the “LLC Agreement”), the members of the Fund (each, a “Member” and collectively, the “Members”) have appointed Sydling to act as the Fund’s commodity pool operator and trading manager. Sydling is registered with the Commodity Futures Trading Commission (“CFTC”) as a commodity pool operator and a commodity trading advisor and is a member of the National Futures Association (“NFA”) effective August 10, 2011. Sydling, a wholly owned subsidiary of UBS Alternatives LLC, was formed on August 4, 2011. UBS Alternatives LLC is a wholly owned subsidiary of UBS Americas Inc.

In the normal course of business, the Fund may enter into contracts that contain a variety of representations that provide indemnification for certain liabilities. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund has not had any prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

Sydling, on behalf of the Fund, has entered into a selling agreement appointing UBS Financial Services Inc. (“UBS Financial Services”) as selling agent to the Fund.

The Master Fund has entered into a customer agreement appointing UBS Securities LLC (“UBS Securities”) as commodity broker to the Master Fund.

The Fund pays (or causes the Master Fund to pay on its behalf) an ongoing selling agent fee to UBS Financial Services equal to 3.5% per year of the adjusted month-end net assets of the Fund.

BNY Mellon Investment Servicing (US) Inc. serves as administrator of the Fund (the “Administrator”).

Winton Capital Management Limited (the “Advisor”) serves as the trading advisor to the Fund and the Master Fund.

Sydling and each Member share in the profits and losses of the Fund in proportion to the amount of limited liability company interest owned by each except that no Member shall be liable for obligations of the Fund in excess of such member’s capital contribution and profits, if any, net of distributions and losses, if any.

Management has evaluated relevant conditions and events, which are known and reasonably knowable, and has determined that there are no conditions and events that raise substantial doubt about the Fund’s ability to continue as a going concern.

The accompanying financial statements and notes are unaudited and are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). These financial statements present the results of interim periods and do not include all disclosures normally provided in annual financial statements. These financial statements should be read in conjunction with the financial statements and notes included in the Fund’s Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission (the “SEC”).

Table of Contents

The preparation of financial statements and accompanying notes in conformity with U.S. GAAP requires Sydling to make estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses, and related disclosures of contingent assets and liabilities in the financial statements and accompanying notes. As a result, actual results could differ from these estimates.

Due to the nature of commodity trading, the results of operations for the interim periods presented should not be considered indicative of the results that may be expected for the entire year.

The Master Fund’s Statements of Financial Condition and Condensed Schedules of Investments as of September 30, 2019 and December 31, 2018 and Statements of Operations and Changes in Member’s Capital for the three and nine months ended September 30, 2019 and 2018 are presented below:

Table of Contents

Sydling WNT Master Fund LLC

Statements of Financial Condition

	(Unaudited)
	September 30, 2019		December 31, 2018

ASSETS

Investment in U.S. Treasury Bills, at fair value (cost $84,522,229 and $0, respectively)	$	84,517,249	$	—
Cash (including restricted cash of $12,668,206 and $15,356,440, respectively)	24,367,398		171,222,974
Net unrealized appreciation on open futures contracts	2,236,549		—
Interest receivable	448,649		375,668
Total Assets	$	111,569,845	$	171,598,642

LIABILITIES AND MEMBER’S CAPITAL

Net unrealized depreciation on open futures contracts	$	—	$	3,985,930
Redemptions payable	1,907,688		4,774,709
Accrued expenses:
Selling agent fees	325,253		488,753
Professional fees and other expenses	54,661		40,316
Total Liabilities	2,287,602		9,289,708

MEMBER’S CAPITAL

Member’s Capital	109,282,243		162,308,934
Total Liabilities and Member’s Capital	$	111,569,845	$	171,598,642

Table of Contents

Sydling WNT Master Fund LLC

Condensed Schedule of Investments

September 30, 2019

(Unaudited)

						Percent of
Number of						Member’s
Contracts			Fair Value			Capital
		FUTURES CONTRACTS OWNED
351		CURRENCIES	$	(99,751	)	(0.09	)%
88		ENERGY	(270,477		)	(0.25	)%
5,374		FINANCIALS	661,824			0.61	%
63		GRAINS	23,539			0.02	%
542		INDEX	(90,434		)	(0.08	)%
4		MEATS	7,240			0.01	%
626		METALS	(628,422		)	(0.58	)%
		TOTAL FUTURES CONTRACTS OWNED	(396,481		)	(0.36	)%

		FUTURES CONTRACTS SOLD
(1,016	)	CURRENCIES	1,264,208			1.16	%
(581	)	ENERGY	1,133,258			1.04	%
(239	)	FINANCIALS	154,180			0.14	%
(1,176	)	GRAINS	(793,833		)	(0.73	)%
(190	)	INDEX	483,385			0.44	%
(48	)	MATERIALS	104,640			0.10	%
(85	)	MEATS	(241,845		)	(0.22	)%
(309	)	METALS	529,037			0.48	%
		TOTAL FUTURES CONTRACTS SOLD	2,633,030			2.41	%
		TOTAL FUTURES CONTRACTS	2,236,549			2.05	%
		U.S. GOVERNMENT SECURITIES
		U.S. TREASURY BILLS, 1.775%, DUE 1/23/2020 (COST, $84,522,229)	84,517,249			77.34	%
		OTHER ASSETS IN EXCESS OF OTHER LIABILITIES	22,528,445			20.61	%
		TOTAL MEMBER’S CAPITAL	$	109,282,243		100.00	%

Percentages shown represent a percentage of member’s capital as of September 30, 2019.

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Sydling WNT Master Fund LLC

Condensed Schedule of Investments

December 31, 2018

						Percent of
Number of						Member’s
Contracts			Fair Value			Capital
		FUTURES CONTRACTS OWNED
214		CURRENCIES	$	149,610		0.09	%
387		ENERGY	(3,697,024		)	(2.27	)%
3,150		FINANCIALS	1,939,185			1.19	%
11		GRAINS	686			0.00	%
286		INDEX	(738,566		)	(0.45	)%
37		MATERIALS	(126,320		)	(0.08	)%
12		MEATS	5,250			0.00	%
378		METALS	(2,016,857		)	(1.24	)%
		TOTAL FUTURES CONTRACTS OWNED	(4,484,036		)	(2.76	)%

		FUTURES CONTRACTS SOLD
(1,271	)	CURRENCIES	(933,928		)	(0.57	)%
(400	)	ENERGY	1,838,934			1.13	%
(467	)	FINANCIALS	(660,228		)	(0.41	)%
(1,786	)	GRAINS	606,608			0.37	%
(223	)	INDEX	345,081			0.21	%
(1	)	INDUSTRIALS	(55		)	0.00	%
(87	)	MEATS	60,248			0.04	%
(590	)	METALS	(758,554		)	(0.47	)%
		TOTAL FUTURES CONTRACTS SOLD	498,106			0.30	%
		TOTAL FUTURES CONTRACTS	(3,985,930		)	(2.46	)%
		OTHER ASSETS IN EXCESS OF OTHER LIABILITIES	166,294,864			102.46	%
		TOTAL MEMBER’S CAPITAL	$	162,308,934		100.00	%

Percentages shown represent a percentage of member’s capital as of December 31, 2018.

Table of Contents

Sydling WNT Master Fund LLC

Statements of Operations and Changes in Member’s Capital

(Unaudited)

	Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended
	September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018

INVESTMENT INCOME

Interest income	$	571,015		$	896,854		$	2,312,625		$	2,322,287

EXPENSES

Brokerage, clearing and transaction fees	34,842			37,907			109,565			128,961
Selling agent fees	1,012,428			1,594,732			3,469,818			4,800,165
Professional fees	22,449			23,875			67,346			71,625
Total Expenses	1,069,719			1,656,514			3,646,729			5,000,751

NET INVESTMENT (LOSS)	(498,704		)	(759,660		)	(1,334,104		)	(2,678,464		)

NET REALIZED AND UNREALIZED GAIN/(LOSS) FROM DERIVATIVE INSTRUMENTS AND SECURITIES

Net realized gain/(loss) from futures and foreign currency	9,143,778			6,419,631			320,379			9,320,562
Net realized gain/(loss) from securities	(457		)	—			(457		)	—
Net change in unrealized appreciation/(depreciation) on futures and foreign currency	(706,725		)	(2,774,847		)	6,222,479			(3,224,543		)
Net change in unrealized appreciation/(depreciation) on securities	(10,310		)	—			(4,980		)	—
Net Realized and Unrealized Gain/(Loss) from Derivative Instruments and Securities	8,426,286			3,644,784			6,537,421			6,096,019

Net income/(loss)	7,927,582			2,885,124			5,203,317			3,417,555

INCREASE/(DECREASE) IN MEMBER’S CAPITAL FROM CAPITAL TRANSACTIONS

Subscriptions	971,000			1,855,500			4,134,500			11,110,100
Redemptions	(9,711,326		)	(5,721,211		)	(62,364,508		)	(18,424,776		)

Net Increase/(Decrease) in Member’s Capital Derived from Capital Transactions	(8,740,326		)	(3,865,711		)	(58,230,008		)	(7,314,676		)
Net Increase/(Decrease) in Member’s Capital	(812,744		)	(980,587		)	(53,026,691		)	(3,897,121		)
Member’s Capital, Beginning of Period	110,094,987			180,434,341			162,308,934			183,350,875
Member’s Capital, End of Period	$	109,282,243		$	179,453,754		$	109,282,243		$	179,453,754

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2. Financial Highlights

Changes in the net asset value per Redeemable Unit for the three and nine months ended September 30, 2019 and 2018 are as follows:

Financial Highlights of the Fund:

	(Unaudited)
	Three Months Ended September 30, 2019			Three Months Ended September 30, 2018			Nine Months Ended September 30, 2019			Nine Months Ended September 30, 2018
Per share operating performance: (a)
Members’ capital per Redeemable Unit, beginning of period	$	1,092.51		$	1,175.96		$	1,126.62		$	1,185.36
Income/(loss) from investment operations:
Net investment (loss) including incentive fee	(11.93		)	(13.57		)	(30.99		)	(38.69		)
Net realized and unrealized gain/(loss) from investment activities	84.05			23.82			69.00			39.54
Total from investment operations	72.12			10.25			38.01			0.85
Members’ capital per Redeemable Unit, end of period	$	1,164.63		$	1,186.21		$	1,164.63		$	1,186.21

Ratio/Supplemental Data: (b)
Ratio of net investment loss to average Members’ capital	(4.24		)%	(4.61		)%	(3.71		)%	(4.43		)%
Ratio of total expenses to average Members’ capital	6.29		%	5.92		%	6.11		%	5.92		%
Ratio of incentive fee to average Members’ capital	—		%	0.69		%	—		%	0.23		%
Ratio of total expenses and incentive fee to average Members’ capital	6.29		%	6.61		%	6.11		%	6.15		%

Total return before incentive fee (c)	6.60		%	1.04		%	3.37		%	0.24		%
Incentive fee	—		%	(0.17		)%	—		%	(0.17		)%
Total return after incentive fee (c)	6.60		%	0.87		%	3.37		%	0.07		%

Members’ capital at end of period	$	109,282,243		$	179,453,754		$	109,282,243		$	179,453,754

Total return and the ratios to average Member’s capital are calculated for investor’s capital taken as a whole. An individual investor’s capital may vary from these ratios and total return based on the timing of capital transactions.

(a) Per share operating performance is calculated on a monthly basis by dividing each line item by the outstanding units at month-end prior to the reduction of redeemed units.

(b) The ratios to average Members’ capital are annualized. The average Members’ capital used in the above ratios is an average of each month-end Members’ capital during the period. Ratios include the Fund’s share of income and expense allocated from the Master Fund.

(c) Total return assumes a purchase of an interest in the Fund at the beginning of the period and a sale of the interest on the last day of the period noted. Total return is reflected after all investment-related and operating expenses, including the advisory and administrative fees. Total return is not annualized.

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Financial Highlights of the Master Fund:

	(Unaudited)
	Three Months Ended September 30, 2019			Three Months Ended September 30, 2018			Nine Months Ended September 30, 2019			Nine Months Ended September 30, 2018

Ratio/Supplemental Data: (a)
Ratio of net investment loss to average Member’s capital	(1.79		)%	(1.69		)%	(1.38		)%	(1.98		)%
Ratio of total expenses to average Member’s capital	3.83		%	3.68		%	3.78		%	3.69		%
Total return (b)	7.22		%	1.60		%	5.14		%	1.91		%
Member’s capital at end of period	$	109,282,243		$	179,453,754		$	109,282,243		$	179,453,754

(a) The ratios to average Member’s capital are annualized. The average Member’s capital used in the above ratios is an average of each month-end member’s capital during the period.

(b) Total return is calculated based on a time-weighted rate of return methodology. Monthly rates of return are compounded to derive the total return reflected above. Total return is reflected after all investment-related and operating expenses. Total return is not annualized.

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3. Trading Activities

The Fund was formed for the purpose of trading contracts in a variety of commodity interests, including derivative financial instruments and derivative commodity instruments. The Fund invests substantially all of its assets through a “master/feeder” structure. The Fund’s pro rata share of the results of the Master Fund’s trading activities is shown in the Fund’s Statements of Operations and Changes in Members’ Capital.

The customer agreement between the Master Fund and UBS Securities gives the Master Fund the legal right to net unrealized gains and losses on open futures contracts. Futures contracts are executed on exchanges and are typically liquidated by entering into offsetting contracts. The Master Fund nets, for financial reporting purposes, the unrealized gains and losses on open futures contracts on the Master Fund’s Statements of Financial Condition.

All of the commodity interests owned by the Master Fund are held for trading purposes. The average number of futures contracts traded for the three months ended September 30, 2019 and 2018, based on a monthly calculation, was 3,510 and 4,343, respectively. The average number of futures contracts traded for the nine months ended September 30, 2019 and 2018, based on a monthly calculation, was 3,790 and 5,150, respectively.

The following tables indicate the gross fair values of derivative instruments of the Master Fund’s futures contracts as separate assets and liabilities as of September 30, 2019 and December 31, 2018.

	September 30, 2019			December 31, 2018
ASSETS
Futures Contracts
Currencies	$	1,264,207		$	492,370
Energy	1,149,558			1,840,834
Financials	2,496,560			1,941,354
Grains	37,061			1,096,951
Index	672,995			360,510
Materials	104,640			—
Meats	7,240			93,928
Metals	1,218,663			88,368
Total unrealized appreciation on open futures contracts	$	6,950,924		$	5,914,315

LIABILITIES
Futures Contracts
Currencies	$	(99,751	)	$	(1,276,688	)
Energy	(286,777		)	(3,698,924		)
Financials	(1,680,556		)	(662,396		)
Grains	(807,356		)	(489,657		)
Index	(280,044		)	(753,994		)
Industrials	—			(55		)
Materials	—			(126,320		)
Meats	(241,845		)	(28,430		)
Metals	(1,318,046		)	(2,863,781		)
Total unrealized depreciation on open futures contracts	$	(4,714,375	)	$	(9,900,245	)

Net unrealized appreciation (depreciation) on open futures contracts*	$	2,236,549		$	(3,985,930	)

* These amounts are presented as Net unrealized appreciation or (depreciation) on open futures contracts on the Master Fund’s Statements of Financial Condition.

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The following table indicates the trading gains and losses, by market sector, on the Master Fund’s derivative instruments for the three and nine months ended September 30, 2019 and 2018.

	Three months ended September 30, 2019			Three months ended September 30, 2018			Nine months ended September 30, 2019			Nine months ended September 30, 2018
Sector	Gain/(loss) from trading			Gain/(loss) from trading			Gain/(loss) from trading			Gain/(loss) from trading
Currencies	$	3,276,730		$	1,146,568		$	1,881,400		$	(2,422,554	)
Energy	(853,820		)	(1,016,000		)	(6,847,285		)	4,362,594
Financials	5,511,297			(1,571,544		)	11,505,323			155,161
Grains	620,865			1,958,902			714,516			2,582,723
Index	434,282			608,500			2,709,353			(934,901		)
Industrials	—			(40,326		)	(8,932		)	20,240
Materials	115,250			(253,570		)	282,805			(53,385		)
Meats	(284,960		)	30,953			(1,755,513		)	(474,163		)
Metals	(382,591		)	2,781,301			(1,938,809		)	2,860,304
U.S. Treasury bills	(10,767		)	—			(5,437		)	—
	$	8,426,286	**	$	3,644,784	**	$	6,537,421	**	$	6,096,019	**

** These amounts are presented as “Net Realized and Change in Unrealized Gain/(Loss) from Derivative Instruments and Securities” on the Master Fund’s Statements of Operations and Changes in Member’s Capital.

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4. Fair Value Measurements

Fund’s Investments. The Fund values its investment in the Master Fund at fair value and is represented by the Fund’s proportionate interest in the member’s capital of the Master Fund.

Fund’s and Master Fund’s Fair Value Measurements. Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements” (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. Valuation techniques, as specified by ASC 820, are used to measure fair value.

All financial instruments at fair value are categorized into one of three fair value hierarchy levels, based upon the lowest level input that is significant to the financial instrument’s fair value measurement in its entirety:

Level 1—Quoted market prices (unadjusted) in active markets for identical assets or liabilities.

Level 2—Valuation techniques for which all significant inputs are market observable, either directly or indirectly.

Level 3—Valuation techniques which include significant inputs that are not based on observable market data.

In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820) — Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU 2018-13 would be effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Fund early adopted ASU 2018-13 effective December 31, 2018. The impact of the Fund’s adoption was limited to changes in the Fund’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

U.S. GAAP provides guidance in determining whether there has been a significant decrease in the volume and level of activity for an asset or liability when compared with normal market activity for such asset or liability (or similar assets or liabilities). U.S. GAAP also provides guidance on identifying circumstances that indicate a transaction with regards to such an asset or liability is not orderly. In its consideration, the Master Fund must consider inputs and valuation techniques used for each class of assets and liabilities. Judgment is used to determine the appropriate classes of assets and liabilities for which disclosures about fair value measurements are provided.

Fair value measurement disclosure for each class of assets and liabilities requires greater disaggregation than the Master Fund’s line items in the Statement of Financial Condition. The Master Fund determines the appropriate classes for those disclosures on the basis of the nature and risks of the assets and liabilities and their classification in the fair value hierarchy (i.e., Level 1, Level 2, and Level 3).

For assets and liabilities measured at fair value on a recurring basis during the period, the Master Fund provides quantitative disclosures about the fair value measurements separately for each class of assets and liabilities, as well as a reconciliation of beginning and ending balances of Level 3 assets and liabilities broken down by class.

The Master Fund considers prices for exchange-traded commodity futures, forwards and options contracts to be based on unadjusted quoted prices in active markets for identical assets (Level 1). The values of U.S. Treasury bills, non-exchange-traded forward, swap and certain options contracts for which market quotations are not readily available are priced by broker-dealers who derive fair values for those assets from observable inputs (Level 2) and for those contracts that are priced using unobservable inputs through the application of management’s assumptions and internal valuation pricing models (Level 3). As of and for the periods ended September 30, 2019 and December 31, 2018, the Master Fund did not hold any derivative instruments for which market quotations are not readily available and which are priced by broker-dealers who derive fair values for these assets from observable inputs (Level 2) or that are priced at fair value using unobservable inputs through the application of management’s assumptions and internal valuation pricing models (Level 3).

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The following is a summary of the Master Fund’s investments at fair value. The inputs or methodology used for valuing derivative instruments are not necessarily an indication of the risk associated with investing in those derivative instruments.

ASSET TABLE (Unaudited)

Description	Total Fair Value at September 30, 2019		Level 1		Level 2		Level 3
Futures Contracts	$	6,950,924	$	6,950,924	$	—	$	—
U.S. Treasury bills	84,517,249		—		84,517,249		—
Total Assets	$	91,468,173	$	6,950,924	$	84,517,249	$	—

LIABILITIES TABLE (Unaudited)

Description	Total Fair Value at September 30, 2019		Level 1		Level 2		Level 3
Futures Contracts	$	4,714,375	$	4,714,375	$	—	$	—
Total Liabilities	$	4,714,375	$	4,714,375	$	—	$	—
Net Assets and (Liabilities)	$	86,753,798	$	2,236,549	$	84,517,249	$	—

ASSET TABLE

Description	Total Fair Value at December 31, 2018		Level 1		Level 2		Level 3
Futures Contracts	$	5,914,315	$	5,914,315	$	—	$	—
Total Assets	$	5,914,315	$	5,914,315	$	—	$	—

LIABILITIES TABLE

Description	Total Fair Value at December 31, 2018			Level 1			Level 2		Level 3
Futures Contracts	$	9,900,245		$	9,900,245		$	—	$	—
Total Liabilities	$	9,900,245		$	9,900,245		$	—	$	—
Net Assets and (Liabilities)	$	(3,985,930	)	$	(3,985,930	)	$	—	$	—

5. Financial Instrument Risks

In the normal course of business, the Master Fund is party to financial instruments with off-balance sheet risk, including derivative financial instruments and derivative commodity instruments. These financial instruments may include futures, forwards and options on futures whose values are based upon an underlying asset, index, or reference rate, and generally represent future commitments to exchange currencies or cash balances, or to purchase or sell other financial instruments at specific terms at specified future dates, or, in the case of derivative commodity instruments, to have a reasonable possibility to be settled in cash, through physical delivery or with another financial instrument. These instruments may be traded on an exchange, a swap execution facility (“SEF”), or over-the-counter (“OTC”). Exchange-traded instruments are standardized and include futures and certain forward and options contracts. OTC contracts are negotiated between contracting parties and include certain forward, option and swap contracts. Certain

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swap contracts may also be traded on a SEF. Specific market movements of commodities or futures contracts underlying an option cannot accurately be predicted. The purchaser of an option may lose the entire premium paid for the option. The writer, or seller, of an option has unlimited risk. Each of these instruments is subject to various risks similar to those related to the underlying financial instruments including market and credit risk. In general, the risks associated with OTC contracts are greater than those associated with exchange-traded or SEF traded instruments because of the greater risk of default by the counterparty to an OTC contract. For the nine months ended September 30, 2019 and 2018 the Master Fund traded futures contracts only.

The risk to the members that have purchased interests in the Master Fund is limited to the amount of their capital contributions to the Master Fund and their share of the Master Fund’s assets and undistributed profits. This limited liability is a consequence of the organization of the Master Fund as a limited liability company under applicable law.

Market risk is the potential for changes in the value of the financial instruments traded by the Master Fund due to market changes, including interest and foreign exchange rate movements and fluctuations in commodity or security prices. Market risk is directly impacted by the volatility and liquidity in the markets in which the related underlying assets are traded. The Master Fund is exposed to a market risk equal to the value of futures contracts purchased and unlimited liability on such contracts sold short.

Credit risk is the possibility that a loss may occur due to the failure of a counterparty to perform according to the terms of a contract. The Master Fund’s risk of loss in the event of a counterparty default is typically limited to the amounts recognized in the Statements of Financial Condition and not represented by the contract or notional amounts of the instruments. The Master Fund has credit risk and concentration risk because the sole counterparty or broker with respect to the Master Fund’s assets is UBS Securities or a UBS affiliate. Credit risk with respect to exchange-traded instruments is reduced to the extent that through UBS Securities, the Master Fund’s counterparty is an exchange or clearing organization. Futures contracts are conducted through regulated exchanges which have margin requirements, and are settled in cash on a daily basis, thereby minimizing credit risk.

6. Significant Accounting Policies

The Fund’s and the Master Fund’s accounting policies are the same and are consistent with the accounting policies in the Fund’s financial statements on Form 10-K for the year ended December 31, 2018.

The Fund and the Master Fund have determined their status as investment companies and as such, follow the accounting and reporting requirements of ASC 946, Financial Services — Investment Companies.

Statement of Cash Flows. The Fund is not required to provide a Statement of Cash Flows in accordance with ASC 230 — Statement of Cash Flows.

Investment in Master Fund. The Fund records its investment in the Master Fund at fair value and is represented by the Fund’s proportionate interest in the capital of the Master Fund at September 30, 2019 and December 31, 2018. Valuation of securities held by the Master Fund is discussed in the Notes to the Master Fund’s financial statements on Form 10-K for the year ended December 31, 2018. The Fund records its pro rata share of the Master Fund’s income, expenses and realized and unrealized gains and losses. The performance of the Fund is directly attributable to the performance of the Master Fund. The Fund records its subscription and withdrawal of the capital account related to its investment in the Master Fund on the transaction date. The Master Fund will adjust the capital account of the Fund. Brokerage, clearing and transaction fees are incurred by the Master Fund and are reflected in the pro rata allocation received by the Fund from the Master Fund.

Subscriptions Received in Advance. Subscriptions received in advance represent amounts paid by the non-managing Members for a percentage ownership into the Fund which have not yet been added as Members’ capital as of September 30, 2019 and December 31, 2018. The amount paid is held as cash in the Fund’s escrow account and represents the majority of the cash on the Fund’s Statements of Financial Condition.

Redemptions Payable. Pursuant to ASC Topic 480, Distinguishing Liabilities from Equity, capital withdrawals effective September 30, 2019 and December 31, 2018 have been reflected as redemptions payable in the Statements of Financial Condition.

Income Taxes. The Fund is classified as a partnership for U.S. federal income tax purposes, and the Fund will not pay U.S. federal income tax. As a result, no income tax liability or expense has been recorded in the financial statements. Each member will be subject to taxation on its share of the Fund’s ordinary income, capital gains and losses.

U.S. GAAP provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements and requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Master Fund’s financial statements to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority.

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Tax positions with respect to tax at the Master Fund level not deemed to meet the “more-likely-than-not” threshold would be recorded as a tax benefit or expense in the current year. Sydling has analyzed the Master Fund’s tax positions for the open tax period and has concluded that no provision is required in the Master Fund’s financial statements. The Master Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in its Statements of Operations and Changes in Member’s Capital. For the periods ended September 30, 2019 and December 31, 2018, the Master Fund did not incur any interest or penalties.

The Master Fund earns interest income on 100% of the average daily equity in the Master Fund’s brokerage account at a rate equal to the monthly average 30-day U.S. Treasury bill rate. Beginning June 1, 2019, the Master Fund placed the majority of its cash in U.S. Treasury bills. The Master Fund receives 100% of the interest earned on U.S. Treasury bills.

7. Subsequent Events

Sydling has evaluated the impact of all subsequent events on the Fund through the date of the filing. Subsequent to September 30, 2019, additional subscriptions were received from the non-managing Members totaling $1,028,500. Subsequent to September 30, 2019, redemptions of $1,722,958 will be paid to the non-managing Members. Sydling has determined that there were no additional subsequent events requiring recognition or disclosure in the financial statements.

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

Liquidity and Capital Resources

The Fund does not engage in sales of goods or services. Its only assets are its investment in the Master Fund, cash and receivables from the Master Fund. The Master Fund does not engage in the sale of goods or services. The Master Fund’s only assets are its equity in its trading accounts, consisting of cash, net unrealized appreciation/(depreciation) on open futures contracts, interest receivable and U.S. Treasury bills. Because of the low margin deposits normally required in commodity futures trading, relatively small price movements may result in substantial losses to the Fund, through its investment in the Master Fund. While substantial losses could lead to a material decrease in liquidity, no such illiquidity occurred during the third quarter of 2019.

For the nine months ended September 30, 2019 and 2018, the Master Fund’s average margin to equity ratio was 8.88% and 7.25%, respectively.

The Fund’s capital consists of the capital contributions of the Members as increased or decreased by income/(loss) from its investment in the Master Fund and by expenses, interest income, redemptions of Redeemable Units and distributions of profits, if any.

For the nine months ended September 30, 2019, the Fund’s capital decreased 32.67 % from $162,308,934 to $109,282,243. This decrease was attributable to redemptions of Redeemable Units resulting in an outflow of $60,126,527, which was partially offset by subscriptions for Redeemable Units totaling $4,134,500, coupled with a net gain from operations of $2,965,336. Future redemptions from the Fund could impact the amount of funds available for investment in the Master Fund in subsequent periods.

The Master Fund’s capital consists of the capital contributions of the investors of the Master Fund as increased or decreased by realized and/or unrealized gains or losses on trading and by expenses, interest income, withdrawals of interest from the Master Fund and distributions of profits, if any.

For the nine months ended September 30, 2019, the Master Fund’s capital decreased 32.67% from $162,308,934 to $109,282,243. This decrease was attributable to the withdrawal of interest in the Master Fund resulting in an outflow of $62,364,508, which was partially offset by subscriptions for interest in the Master Fund totaling $4,134,500, coupled with a net gain from operations of $5,203,317. Future withdrawals from the Master Fund can impact the amount of funds available for investments in commodity contract positions in subsequent periods.

Critical Accounting Policies

The preparation of financial statements in conformity with U.S. GAAP requires Sydling to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Sydling believes that the estimates and assumptions utilized in preparing the financial statements are reasonable. Actual results could differ from those estimates. The Fund’s significant accounting policies are described in detail in Note 6. “Significant Accounting Policies.”

The Fund records all investments at fair value in its financial statements, with changes in fair value reported as a component of net realized gains/(losses) and change in net unrealized gains/(losses) in the Statements of Operations and Changes in Members’ Capital.

Results of Operations

During the Fund’s third quarter of 2019, the net asset value per Redeemable Unit increased 6.60% from $1,092.51 to $1,164.63. The Fund, for its own account, through its investment in the Master Fund, experienced a net trading gain before brokerage fees and related fees in the third quarter of 2019 of $8,426,286. Gains were primarily attributable to the Master Fund’s trading of commodity futures in currencies, U.S. and non-U.S. interest rates, indices and softs and were partially offset by losses in metals, energy, livestock and grains.

Long positions in U.S. Treasury bonds, ultra-long bonds, Italian BTPs and Euro-dollar futures ranked among the top contributors within the fixed income sector. The Federal Reserve cut its policy rate twice during the quarter and injected money in overnight repo markets for the first time since the financial crisis. The European Central Bank (“ECB”) also cut rates and announced a new round of bond purchases which would start in November. Most other central banks around the world pursued easing policies. The Fund maintained long positions in most fixed income markets during this favorable period, while finishing the quarter with some short positions in U.S. 2-Year and 5-Year Treasury notes.

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The Fund maintained small long positions in most equity index futures markets, however short positions in U.S. Russell 2000 Index futures were the most profitable during this period. Slowing economic growth, ongoing U.S.-China trade war tensions and a presidential impeachment inquiry in the U.S. resulted in losses in August which were recovered in September. The Fund did not have much conviction in equities, even as major indices managed to finish positively.

In foreign exchange, most gains came from short positions in the Euro, British Pound and Australian Dollar, which were partially offset by losses in Canadian Dollar and Japanese Yen. The Euro weakened through the quarter as the ECB contemplated the scope and magnitude of a new quantitative easing program. The British Pound weakened due to concerns about a hard Brexit as Boris Johnson was selected to lead the country. The Aussie dollar weakened as investors expected additional easing beyond the two rate cuts year-to-date.

Among soft commodities, coffee, sugar and cotton ranked among the top contributors for this period. Better weather in coffee growing regions in Brazil raised expectations for a large harvest which dampened prices. Other grain prices seesawed due to weather conditions, limited progress in trade talks and currency moves.

Crude prices were volatile as Saudi Arabia’s largest Abqaiq refinery was hit by drones in September. Prices rallied sharply in the immediate aftermath, however gave back those gains on a faster-than-expected recovery in Saudi output. Natural gas prices reacted opposite to that of crude oil in the aftermath of the attack in Saudi Arabia. Brent and gasoline futures ranked among the worst detractors, while shorts in natural gas were marginally profitable.

The Fund held high conviction in metals markets, which experienced sizable price moves. Nickel gained the most among commodities year-to-date due to the upcoming ban on exports by Indonesia. Nickel and copper ranked among the top contributors, while long positions in gold and silver scored among the detractors.

During the Fund’s third quarter of 2018, the net asset value per Redeemable Unit increased 0.87% from $1,175.96 to $1,186.21. The Fund, for its own account, through its investment in the Master Fund, experienced a net trading gain before brokerage fees and related fees in the third quarter of 2018 of $3,644,784. Gains were primarily attributable to the Master Fund’s trading of commodity futures in metals, softs, currencies, indices, grains and livestock and were partially offset by losses in non-U.S. and U.S. interest rates, energy and lumber.

Most of the trading gains for the quarter came from commodity and currency sectors while interest rates and equity index sectors generated modest losses. During the quarter, the Fund generally increased long positions in U.S. dollars against several other developed markets, increased long positions in non-U.S. interest rate markets and increased short positions in soft commodities such as cocoa, coffee and sugar. The Fund reduced risk in industrial metals and grains, while it maintained net long exposures in equity indices and energy markets.

Near the end of the quarter, the U.S. Federal Reserve (the “Fed”) raised interest rates by 25 bps, which was the eighth rate hike since 2015. The Fed expected U.S. GDP to increase, as unemployment remained low, and signaled another rate hike in December 2018. The Fund held short positions in rate sensitive Eurodollar, U.S. 2 Year and 5 Year Treasury note futures markets, which ranked among the top contributors for the quarter.

U.S. equity indices finished higher in the third quarter of 2018, driven by gains from the health care, industrial, information technology and communication services sectors. Japanese equities rallied later in the quarter, driven by strong GDP growth, stable monetary policy and the Yen weakening to its lowest level this year. Offsetting gains from long U.S. and Japanese equity index positions were smaller losses from positions in Australia, Germany, Canada, China and South Korea.

Within foreign exchange sector, short positions in the Japanese Yen were profitable as the Bank of Japan held interest rates steady, even as inflation rose to the highest level in six months. The Fund increased short exposures in the Japanese Yen during the third quarter of 2018. On the other hand, short positions in the Swiss Franc and British Pound were unprofitable.

Gold and silver were the two top contributors for the Fund as prices continued to weaken in the third quarter of 2018. Higher U.S. bond yields and stronger U.S. dollar reduced the safe haven demand for precious metals. Industrial metal prices experienced choppiness, driven by Chinese growth concerns and global trade disputes. Aluminum and nickel were among the notable detractors for the Fund.

During the third quarter of 2018, WTI and Brent crude prices were volatile even as they closed at new three-year highs driven by potential Iranian supply losses and continued increase in demand. The amount of U.S. natural gas in storage was 20% below 2017 levels, which resulted in prices shooting up more than 10% in the last two weeks of the quarter. The Fund reduced long positions in some of the energy markets which resulted in some losses in this sector.

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Commodity futures markets are highly volatile. Broad and rapid price fluctuations and rapid inflation increase the risks involved in commodity trading, but also increase the possibility for profit or loss. The profitability of the Fund (and the Master Fund) depends on the existence of major price trends and the ability of the Advisor to correctly identify those price trends. Price trends are influenced by, among other things, changing supply and demand relationships, weather, governmental, agricultural, commercial and trade programs and policies, national and international political and economic events and changes in interest rates. To the extent that market trends exist and the Advisor is able to identify them, the Fund (and the Master Fund) expects to increase capital through operations.

Clearing and transaction fees are based on the number of round turns made in the Master Fund’s account. Clearing and transaction fees of the Master Fund for the three months ended September 30, 2019 and 2018 were $34,842 and $37,907. The decrease in clearing and transaction fees for the three months ended September 30, 2019 as compared to the corresponding period in 2018 is a result of a decrease in the number of futures contracts traded in the three months ended September 30, 2019 as compared to the corresponding period in 2018.

Clearing and transaction fees of the Master Fund for the nine months ended September 30, 2019 and 2018 were $109,565 and $128,961. The decrease in clearing and transaction fees for the nine months ended September 30, 2019 as compared to the corresponding period in 2018 is a result of a decrease in the number of futures contracts traded in the nine months ended September 30, 2019 as compared to the corresponding period in 2018.

Ongoing selling agent fees are calculated as a percentage of the Fund’s capital account balance at the Master Fund as of the end of each month and are affected by trading performance, subscriptions and redemptions.

Ongoing selling agent fees of the Fund for the three months ended September 30, 2019 and 2018 were $1,012,428 and $1,594,732, respectively. The decrease in selling agent fees in the three months ended September 30, 2019 as compared to the corresponding period in 2018 is due to a decrease in the Fund’s average capital account balance at the Master Fund.

Ongoing selling agent fees of the Fund for the nine months ended September 30, 2019 and 2018 were $3,469,818 and $4,800,165, respectively. The decrease in selling agent fees in the nine months ended September 30, 2019 as compared to the corresponding period in 2018 is due to a decrease in the Fund’s average capital account balance at the Master Fund.

Advisory fees are calculated as a percentage of the Fund’s adjusted net asset value as of the end of each month and are affected by trading performance, subscriptions and redemptions.

Advisory fees of the Fund for the three months ended September 30, 2019 and 2018 were $432,501 and $681,344, respectively. The calculation of advisory fees for the three months ended September 30, 2019 and 2018 was based on a monthly average net asset value of $115,333,452 and $181,691,779, respectively. The decrease in advisory fees for the three months ended September 30, 2019 as compared to the corresponding period in 2018 is due to a decrease in the average net assets.

Advisory fees of the Fund for the nine months ended September 30, 2019 and 2018 were $1,482,401 and $2,050,872, respectively. The calculation of advisory fees for the nine months ended September 30, 2019 and 2018 was based on a monthly average net asset value of $131,768,943 and $182,299,763, respectively. The decrease in advisory fees for the nine months ended September 30, 2019 as compared to the corresponding period in 2018 is due to a decrease in the average net assets.

Administrative fees are paid to Sydling for administering the business and affairs of the Fund. Sydling pays a portion of the administrative fee to the Administrator. These fees are calculated as a percentage of the Fund’s adjusted net asset value as of the end of each month and are affected by trading performance, subscriptions and redemptions.

Administrative fees of the Fund for the three months ended September 30, 2019 and 2018 were $144,167 and $227,115, respectively. The calculation of administrative fees for the three months ended September 30, 2019 and 2018 was based on a monthly average net asset value of $115,333,452 and $181,691,779, respectively. The decrease in administrative fees for the three months ended September 30, 2019 as compared to the corresponding period in 2018 is due to a decrease in the average net assets.

Administrative fees of the Fund for the nine months ended September 30, 2019 and 2018 were $494,134 and $683,624, respectively. The calculation of administrative fees for the nine months ended September 30, 2019 and 2018 was based on a monthly average net asset value of $131,768,943 and $182,299,763, respectively. The decrease in administrative fees for the nine months ended September 30, 2019 as compared to the corresponding period in 2018 is due to a decrease in the average net assets.

Incentive fees to the Advisor are based on the new trading profits generated by the Advisor, paid at the end of each quarter, as defined in the Trading Advisory Agreement among the Master Fund, the Fund, Sydling and the Advisor. There were no incentive fees earned

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during the nine months ended September 30, 2019. Incentive fees earned for the three and nine months ended September 30, 2018 were $311,386.

In allocating substantially all of the assets of the Fund to the Master Fund, Sydling considers the Advisor’s past performance, trading style, volatility of markets traded and fee requirements. Sydling may modify or terminate the allocation of assets to the Advisor at any time.

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

All of the Fund’s assets are subject to the risk of trading loss through its investment in the Master Fund.

The Master Fund is a speculative commodity pool. The market sensitive instruments held by the Master Fund are acquired for speculative trading purposes, and all or substantially all of the Fund’s capital is subject to the risk of trading loss through its investment in the Master Fund. Unlike an operating company, the risk of market sensitive instruments is integral, not incidental, to the Master Fund’s and the Fund’s main line of business.

The risk to the Members that have purchased Redeemable Units is limited to the amount of their capital contributions to the Fund and their share of Fund assets and undistributed profits. This limited liability is a consequence of the organization of the Fund as a limited liability company under Delaware law.

Market movements result in frequent changes in the fair value of the Master Fund’s open positions and, consequently, in its earnings and cash balances. The Master Fund’s and the Fund’s market risk is influenced by a wide variety of factors, including the level and volatility of interest rates, exchange rates, equity price levels, the market value of financial instruments and contracts, the diversification effects among the Master Fund’s open contracts and the liquidity of the markets in which the Master Fund trades.

The Master Fund rapidly acquires and liquidates both long and short positions in a range of different markets. Consequently, it is not possible to predict how a particular future market scenario will affect performance, and the Master Fund’s past performance is not necessarily indicative of its future results.

Quantifying the Fund’s Trading Value at Risk

The following quantitative disclosures regarding the Master Fund’s and the Fund’s market risk exposures contain “forward-looking statements” within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). All quantitative disclosures in this section are deemed to be forward-looking statements for purposes of the safe harbor except for statements of historical fact (such as the terms of particular contracts and the number of market risk sensitive instruments held during or at the end of the reporting period).

“Value at Risk” is a measure of the maximum amount which the Master Fund could reasonably be expected to lose in a given market sector. However, the inherent uncertainty of the Master Fund’s speculative trading and the recurrence in the markets traded by the Master Fund of market movements far exceeding expectations could result in actual trading or non-trading losses far beyond the indicated Value at Risk or the Master Fund’s experience to date (i.e., “risk of ruin”). In light of the foregoing, as well as the risks and uncertainties intrinsic to all future projections, the inclusion of the quantification in this section should not be considered to constitute any assurance or representation that the Master Fund’s losses in any market sector will be limited to Value at Risk or by the Master Fund’s attempts to manage its market risk.

Exchange maintenance margin requirements have been used by the Master Fund as the measure of its Value at Risk. Maintenance margin requirements are set by exchanges to equal or exceed the maximum losses reasonably expected to be incurred in the fair value of any given contract in 95%-99% of any one-day interval. Maintenance margin has been used rather than the more generally available initial margin, because initial margin includes a credit risk component, which is not relevant to Value at Risk.

Value at Risk tables represent a probabilistic assessment of the risk of loss in market risk sensitive instruments. The following tables indicate the trading Value at Risk associated with the Master Fund’s open positions by market category as of September 30, 2019 and December 31, 2018, and the highest, lowest and average value during the three months ended September 30, 2019 and the twelve months ended December 31, 2018. All open position trading risk exposures of the Master Fund have been included in calculating the figures set forth below. There has been no material change in the trading Value at Risk information previously disclosed in the Fund’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018.

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As of September 30, 2019, the Master Fund’s total capitalization was $109,282,243, and the Fund owned 100% of the Master Fund. The Fund invests substantially all of its assets in the Master Fund. The Master Fund’s Value at Risk as of September 30, 2019 was as follows:

					Three Months ended September 30, 2019 (unaudited)
Market Sector	Value at Risk		% of Total Capitalization		High Value at Risk		Low Value at Risk		Average Value at Risk*
Currencies	$	2,101,897	1.92	%	$	2,653,167	$	1,843,944	$	2,242,354
Energy	$	856,559	0.78	%	$	856,559	$	358,190	$	669,235
Grains	$	875,206	0.80	%	$	1,038,625	$	666,090	$	829,753
Index	$	1,194,192	1.09	%	$	1,197,518	$	915,564	$	1,037,636
Interest Rate Non-U.S.	$	3,025,689	2.77	%	$	3,043,133	$	1,950,988	$	2,419,141
Interest Rate U.S.	$	2,587,229	2.37	%	$	2,614,439	$	1,487,726	$	2,189,080
Livestock	$	124,224	0.12	%	$	132,027	$	46,664	$	97,757
Metals	$	887,970	0.81	%	$	969,377	$	669,863	$	830,455
Softs	$	1,015,240	0.93	%	$	1,101,493	$	832,701	$	966,234
Total	$	12,668,206	11.59	%

*Average daily Value at Risk.

** Due to rounding

As of December 31, 2018, the Master Fund’s total capitalization was $162,308,934 and the Fund owned 100% of the Master Fund. The Fund invests substantially all of its assets in the Master Fund. The Master Fund’s Value at Risk as of December 31, 2018 was as follows:

December 31, 2018

(unaudited)

Market Sector	Value at Risk		% of Total Capitalization		High Value at Risk		Low Value at Risk		Average Value at Risk*
Currencies	$	3,679,519	2.27	%	$	7,678,536	$	1,052,854	$	2,355,627
Energy	$	1,896,258	1.17	%	$	3,831,662	$	251,729	$	1,084,131
Grains	$	2,089,419	1.29	%	$	3,957,304	$	794,125	$	1,315,748
Index	$	1,247,579	0.77	%	$	7,090,936	$	411,920	$	1,758,613
Interest Rate Non-U.S.	$	1,725,235	1.06	%	$	3,594,919	$	599,498	$	1,812,433
Interest Rate U.S.	$	1,184,166	0.73	%	$	4,139,754	$	1,184,166	$	2,691,708
Livestock	$	185,800	0.11	%	$	352,49	$	11,197	$	201,074
Lumber	$	2,477	—	% **	$	5,382	$	—	$	2,980
Metals	$	1,154,438	0.71	%	$	2,653,592	$	643,221	$	1,341,207
Softs	$	2,191,549	1.35	%	$	4,549,259	$	883,348	$	1,484,954

Total	$	15,356,440	9.46	%

*Average daily Value at Risk.

** Due to rounding

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Item 4. Controls and Procedures

The Fund’s disclosure controls and procedures are designed to ensure that information required to be disclosed by the Fund on the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods expected in the SEC’s rules and forms. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed by the Fund in the reports it files is accumulated and communicated to Sydling, including the President and Chief Financial Officer (“CFO”) of Sydling, to allow for timely decisions regarding required disclosure and appropriate SEC filings.

Sydling is responsible for ensuring that there is an adequate and effective process for establishing, maintaining and evaluating disclosure controls and procedures for the Fund’s external disclosures.

Sydling’s President and CFO have evaluated the effectiveness of the Fund’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of September 30, 2019 and, based on that evaluation, Sydling’s President and CFO have concluded that, at that date, the Fund’s disclosure controls and procedures were effective.

The Fund’s internal control over financial reporting is a process under the supervision of Sydling’s President and CFO to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with U.S. GAAP. These controls include policies and procedures that:

· pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Fund;

· provide reasonable assurance that (i) transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP, and (ii) the Fund’s receipts are handled and expenditures are made only pursuant to authorizations of Sydling; and

· provide reasonable assurance regarding prevention or timely detection and correction of unauthorized acquisition, use or disposition of the Fund’s assets that could have a material effect on the financial statements.

There were no changes in the Fund’s internal control over financial reporting process during the fiscal quarter ended September 30, 2019 that materially affected, or are reasonably likely to materially affect, the Fund’s internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

There are no material changes to the discussion set forth under Item 3. “Legal Proceedings” in the Fund’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 as updated by the Fund’s Quarterly Report on Form 10-Q for the quarters ended March 31, 2019 and June 30, 2019. There are no material legal proceedings pending against the Fund and Sydling.

Item 1A. Risk Factors

There have been no material changes to the risk factors set forth under Part 1, Item 1A. “Risk Factors” in the Fund’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and under Part II, Item 1A. “Risk Factors” in the Fund’s Quarterly Report on Form 10-Q for the quarters ended March 31, 2019 and June 30, 2019.

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

For the three months ended September 30, 2019, there were additional subscriptions of 849.732 Redeemable Units totaling $971,000. The Redeemable Units were issued in reliance upon applicable exemptions from registration under Section 4(a)(2) of the Securities Act and Section 506 of Regulation D promulgated thereunder. These Redeemable Units were purchased by accredited investors as defined in Regulation D. In determining the applicability of the exemption, Sydling relied on the fact that the Redeemable Units were purchased by accredited investors in a private offering.

Proceeds of net offering were used for the trading of commodity interests, including futures and option contracts.

The following chart sets forth the purchases of Redeemable Units by the Fund.

Period	(a) Total Number of Redeemable Units Purchased*	(b) Average Price Paid per Redeemable Unit**		(c) Total Number of Redeemable Units Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number (or Approximate Dollar Value) of Redeemable Units that May Yet Be Purchased Under the Plans or Programs
July 1, 2019 – July 31, 2019	4,720.796	$	1,134.56	N/A	N/A
August 1, 2019 – August 31, 2019	1,630.589	$	1,227.13	N/A	N/A
September 1, 2019 – September 30, 2019	1,436.141	$	1,164.63	N/A	N/A
Total	7,787.526	$	1,175.44

* Generally, Members are permitted to redeem their Redeemable Units as of the end of each month on five business days’ notice to Sydling. Under certain circumstances, Sydling can compel redemption, although to date, it has not exercised this right. Purchases of Redeemable Units by the Fund reflected in the chart above were made in the ordinary course of the Fund’s business in connection with effecting redemptions for Members.

** Redemptions of Redeemable Units are effected as of the end of each month at the net asset value per Redeemable Unit as of that day.

Item 3. Defaults Upon Senior Securities — None

Item 4. Mine Safety Disclosures — Not Applicable

Item 5. Other Information — None

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Item 6. Exhibits

Exhibit 3.1		Certificate of Formation (filed as Exhibit 3.1 to the general form for registration of securities on Form 10 filed on May 29, 2014 and incorporated herein by reference).

	(a)	Certificate of Amendment of the Certificate of Formation (filed as Exhibit 3.1(a) to the general form for registration of securities on Form 10 filed on May 29, 2014 and incorporated herein by reference).

Exhibit 3.2		Application for Authority (filed as Exhibit 3.2 to the general form for registration of securities on Form 10 filed on May 29, 2014 and incorporated herein by reference).

Exhibit 3.3		Limited Liability Company Agreement (filed as Exhibit 3.3 to the general form for registration of securities on Form 10 filed on May 29, 2014 and incorporated herein by reference).

	(a)	Amended and Restated Limited Liability Company Agreement (filed as Exhibit 3.3 to the Current Report on Form 8-K filed on July 9, 2018 and incorporated herein by reference).

Exhibit 10.1		Customer Agreement between the Master Fund and UBS Securities (filed as Exhibit 10.1 to the general form for registration of securities on Form 10 filed on May 29, 2014 and incorporated herein by reference).

Exhibit 10.2		Selling Agent Agreement between the Fund and UBS Financial Services (filed as Exhibit 10.2 to the general form for registration of securities on Form 10 filed on May 29, 2014 and incorporated herein by reference).

	(a)	Amended and Restated Selling Agent Agreement between the Fund and UBS Financial Services (filed as Exhibit 10.2 to the Current Report on Form 8-K filed on July 12, 2016 and incorporated herein by reference).

	(b)	Second Amended and Restated Selling Agent Agreement between the Fund and UBS Financial Services (filed as exhibit 10.2(b) to the Form 10-Q filed on November 14, 2016 and incorporated herein by reference).

Exhibit 10.3		Trading Manager Agreement among the Fund, the Master Fund and Sydling (filed as Exhibit 10.3 to the general form for registration of securities on Form 10 filed on May 29, 2014 and incorporated herein by reference).

Exhibit 10.4		Trading Advisory Agreement among the Master Fund, the Fund, Sydling and the Advisor (filed as Exhibit 10.4 to the general form for registration of securities on Form 10 filed on May 29, 2014 and incorporated herein by reference).

	(a)	Letter from Sydling extending the Trading Advisory Agreement until June 30, 2015, dated June 29, 2014 (filed as Exhibit 10.4(a) to the Form 10-Q filed on August 14, 2014 and incorporated herein by reference).

	(b)	Letter from Sydling extending the Trading Advisory Agreement until June 30, 2016, dated June 26, 2015 (filed as Exhibit 10.4(b) to the Form 10-Q filed on August 14, 2015 and incorporated herein by reference).

	(c)	Letter from Sydling extending the Trading Advisory Agreement until June 30, 2017, dated June 16, 2016 (filed as Exhibit 10.4(c) to the Form 10-Q filed on November 14, 2016 and incorporated herein by reference).

	(d)	Letter from Sydling extending the Trading Advisory Agreement until June 30, 2018, dated July 6, 2017 (filed as Exhibit 10.4(d) to the Form 10-Q filed on November 14, 2017 and incorporated herein by reference).

	(e)	Amendment Agreement to the Trading Advisory Agreement, dated December 13, 2018 (filed as Exhibit 10.1 to the Current Report on Form 8-K filed on December 17, 2018 and incorporated herein by reference).

Exhibit 10.5		Fee Arrangement Agreement among Sydling, the Master Fund and UBS Securities (filed as Exhibit 10.5 to the general form for registration of securities on Form 10 filed on May 29, 2014 and incorporated herein by reference).

	(a)	First Amended and Restated Fee Arrangement Agreement among Sydling, the Master Fund and UBS Securities (filed as Exhibit 10.5 to the Form 10-Q filed on August 15, 2016 and incorporated herein by reference).

Exhibit 31.1		Rule 13a-14(a)/15d-14(a) Certification (Certification of President and Director filed herewith).

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Exhibit 31.2			Rule 13a-14(a)/15d-14(a) Certification (Certification of Chief Financial Officer filed herewith).

Exhibit 32.1			Section 1350 Certification (Certification of President and Director filed herewith).

Exhibit 32.2			Section 1350 Certification (Certification of Chief Financial Officer filed herewith).

Exhibit 99.1			Annual Report of the Fund for the period ended December 31, 2013 (filed as Exhibit 99.1 to the general form for registration of securities on Form 10 filed on May 29, 2014 and incorporated herein by reference).

Exhibit 99.2			Organization Chart (filed as Exhibit 99.2 to the amended general form for registration of securities on Form 10 filed on May 29, 2014 and incorporated herein by reference).

Exhibit 101.INS			XBRL Instance Document.

Exhibit 101.SCH			XBRL Taxonomy Extension Schema Document.

Exhibit 101.CAL			XBRL Taxonomy Extension Calculation Linkbase Document.

Exhibit 101.LAB			XBRL Taxonomy Extension Label Linkbase Document.

Exhibit 101.PRE			XBRL Taxonomy Extension Presentation Linkbase Document.

Exhibit 101.DEF			XBRL Taxonomy Extension Definition Document.

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SIGNATURES

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

CAVENDISH FUTURES FUND LLC
(Registrant)


By:	Sydling Futures Management LLC


By:	/s/ *Jerry Pascucci*
	Jerry Pascucci
	President and Director

Date:	November 14, 2019

Dates Referenced Herein and Documents Incorporated by Reference

This ‘10-Q’ Filing	Date	Other Filings

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Filed on:	11/14/19
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Cavendish Futures Fund LLC – ‘10-Q’ for 9/30/19

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