LoCorr Futures Portfolio Fund Sees 29.7% Capital Drop Amid Asset Declines

TL;DR

**LoCorr's capital is bleeding, with a nearly 30% drop and surging redemptions – time to bail out!**

AI Summary

LOCORR FUTURES PORTFOLIO FUND L.P. experienced a significant decline in total assets and partners' capital for the quarter ended June 30, 2025. Total assets decreased by $30.54 million, from $109.72 million on December 31, 2024, to $79.17 million on June 30, 2025, representing a 27.8% reduction. Partners' Capital (Net Asset Value) also fell substantially by $32.07 million, from $108.12 million to $76.05 million, a 29.66% decrease. This decline was primarily driven by a $20.94 million reduction in investments in securities, which dropped from $60.61 million to $39.67 million. Equity in broker trading accounts also saw a $14.82 million decrease, from $44.25 million to $29.42 million. Notably, the net unrealized gain on open futures contracts decreased by $546,423, from $1.22 million to $669,707, and on open forward currency contracts by $618,683, from $1.24 million to $618,602. Redemption payable, however, surged by $1.84 million, from $904,899 to $2,741,760, indicating increased investor withdrawals.

Why It Matters

This significant decline in partners' capital and total assets signals a challenging period for LOCORR FUTURES PORTFOLIO FUND L.P., potentially impacting investor confidence and future inflows. The substantial increase in redemption payable suggests that investors are actively withdrawing capital, which could further strain the fund's liquidity and investment capacity. In a competitive landscape where alternative investment funds vie for capital, such a performance could make it harder for LoCorr to attract and retain investors, especially if competitors demonstrate stronger returns or more stable asset bases. Employees and service providers might face pressure if the fund's AUM continues to shrink, potentially leading to reduced fees or operational adjustments.

Risk Assessment

Risk Level: high — The fund exhibits a high risk level due to a 29.66% decrease in Partners' Capital (Net Asset Value) from $108.12 million to $76.05 million, coupled with a 27.8% reduction in total assets from $109.72 million to $79.17 million. Furthermore, redemption payable increased by over 200%, from $904,899 to $2,741,760, indicating significant investor withdrawals and potential liquidity pressures.

Analyst Insight

Investors should carefully review their exposure to LOCORR FUTURES PORTFOLIO FUND L.P. given the substantial decline in net asset value and increased redemptions. Consider re-evaluating the fund's strategy and performance against its peers, and potentially reallocate capital to more stable or higher-performing alternative investments.

Financial Highlights

total Assets

$79,170,652

cash Position

$8,117,618

Key Numbers

• $79.17M — Total assets (Decreased by $30.54 million (27.8%) from $109.72 million on December 31, 2024)
• $76.05M — Partners' Capital (Net Asset Value) (Decreased by $32.07 million (29.66%) from $108.12 million on December 31, 2024)
• $2.74M — Redemption payable (Increased by $1.84 million (203.5%) from $904,899 on December 31, 2024)
• $39.67M — Investments in securities (Decreased by $20.94 million (34.55%) from $60.61 million on December 31, 2024)
• $29.42M — Total equity in broker trading accounts (Decreased by $14.82 million (33.5%) from $44.25 million on December 31, 2024)
• $669,707 — Net unrealized gain on open futures contracts (Decreased by $546,423 (44.93%) from $1.22 million on December 31, 2024)
• $618,602 — Net unrealized gain on open forward currency contracts (Decreased by $618,683 (50.0%) from $1.24 million on December 31, 2024)

Key Players & Entities

• LOCORR FUTURES PORTFOLIO FUND L.P. (company) — Registrant
• Steben & Company, LLC (company) — General Partner's address
• New Hyde Park Alternative Funds, LLC (company) — Sponsor of Galaxy Plus Managed Account Platform
• Galaxy Plus Fund - East Alpha Feeder Fund (548) LLC (company) — Private investment company
• Bloomberg (company) — Financial news organization

FAQ

Risk Factors

• Significant Decline in Assets and Capital [high — financial]: Total assets decreased by $30.54 million (27.8%) from $109.72 million to $79.17 million, and Partners' Capital (Net Asset Value) fell by $32.07 million (29.66%) from $108.12 million to $76.05 million for the period ending June 30, 2025. This substantial reduction indicates a significant outflow of capital or underperformance.
• Reduction in Investment Holdings [high — financial]: Investments in securities decreased by $20.94 million (34.55%) from $60.61 million to $39.67 million. Concurrently, equity in broker trading accounts declined by $14.82 million (33.5%) from $44.25 million to $29.42 million, suggesting a broad liquidation of assets or a strategic deleveraging.
• Increased Investor Withdrawals [high — financial]: Redemption payable surged by $1.84 million (203.5%) from $904,899 to $2,741,760. This sharp increase signals a significant rise in investor demand for redemptions, potentially driven by performance concerns or a shift in investor sentiment.
• Deterioration in Unrealized Gains [medium — financial]: The net unrealized gain on open futures contracts decreased by $546,423 (44.93%) to $669,707, and on open forward currency contracts by $618,683 (50.0%) to $618,602. This decline in unrealized gains on derivative positions contributes to the overall decrease in asset value.
• Complexity of Futures and Forward Contracts [medium — operational]: The fund's performance is heavily influenced by the valuation of open futures and forward currency contracts. Fluctuations in these derivative markets can lead to significant unrealized gains or losses, impacting the fund's net asset value and overall financial condition.

Industry Context

The futures and derivatives market is characterized by high leverage, volatility, and sensitivity to macroeconomic factors. Funds operating in this space, like LoCorr Futures Portfolio Fund, are subject to rapid shifts in asset values due to market movements and investor sentiment. The competitive landscape includes numerous other funds employing similar strategies, making differentiation and consistent performance crucial.

Regulatory Implications

As a futures portfolio fund, LoCorr is subject to regulations governing derivatives trading and investment funds, potentially including those from the CFTC and SEC. Significant declines in assets and increased redemptions could attract regulatory scrutiny regarding fund management, liquidity, and investor disclosures.

What Investors Should Do

1. Review the fund's trading strategy and performance drivers for the period to understand the causes of asset depreciation.
2. Assess the sustainability of the current asset level and the impact of ongoing redemptions on the fund's operational capacity.
3. Evaluate the fund's risk management practices, particularly concerning its exposure to futures and forward currency contracts.
4. Monitor future filings for any signs of stabilization or further deterioration in assets and capital.

Key Dates

• 2025-06-30: Quarterly Financial Statements — Shows a significant decrease in total assets ($79.17M from $109.72M) and partners' capital ($76.05M from $108.12M), driven by reduced investments and increased redemptions.
• 2024-12-31: Previous Financial Statement Date — Represents the baseline from which the significant asset and capital decline occurred in the subsequent period.

Glossary

Net unrealized gain (loss) on open futures contracts

The profit or loss on futures contracts that have not yet been closed out, reflecting the current market value change. (A key component of the fund's performance, directly impacting its net asset value. A decrease indicates market movements unfavorable to the fund's positions.)

Net unrealized gain (loss) on open forward currency contracts

The profit or loss on forward currency contracts that have not yet expired or been settled, based on current exchange rate fluctuations. (Similar to futures, this reflects the fund's exposure to currency markets and its impact on overall asset valuation.)

Redemption payable

The amount owed to investors who have requested to redeem their interests in the fund but have not yet received their payment. (A surge in this liability indicates a significant increase in investor withdrawal requests, potentially signaling a loss of confidence or a need for liquidity.)

Partners' Capital (Net Asset Value)

The total value of the fund attributable to its partners, calculated as total assets minus total liabilities. It represents the per-share value of the fund. (A primary indicator of the fund's overall value and performance. A substantial decrease suggests underperformance or significant capital outflows.)

Equity in broker trading accounts

The cash and securities held by brokers on behalf of the fund, used for trading activities. (A significant decrease suggests the fund is reducing its trading positions or withdrawing funds from brokerage accounts.)

Year-Over-Year Comparison

Compared to the filing for December 31, 2024, LoCorr Futures Portfolio Fund L.P. has experienced a significant contraction. Total assets have fallen by 27.8% ($30.54 million), and Partners' Capital has decreased by 29.66% ($32.07 million). This is accompanied by a substantial increase in redemption payables, up 203.5% ($1.84 million), indicating heightened investor withdrawal activity and a potential loss of investor confidence.

Filing Documents

• lfpf-10q_063025.htm (10-Q) — 1967KB
• ex31-01.htm (EX-31.01) — 19KB
• ex31-02.htm (EX-31.02) — 19KB
• ex32-01.htm (EX-32.01) — 7KB
• ex32-02.htm (EX-32.02) — 6KB
• 0001999371-25-011271.txt ( ) — 7983KB
• fpf-20250630.xsd (EX-101.SCH) — 71KB
• fpf-20250630_cal.xml (EX-101.CAL) — 45KB
• fpf-20250630_def.xml (EX-101.DEF) — 232KB
• fpf-20250630_lab.xml (EX-101.LAB) — 392KB
• fpf-20250630_pre.xml (EX-101.PRE) — 286KB
• lfpf-10q_063025_htm.xml (XML) — 1685KB

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements LoCorr Futures Portfolio Fund, Limited Partnership June 30, 2025 (Unaudited) and December 31, 2024 June 30, 2025 December 31, (Unaudited) 2024 Assets Equity in broker trading accounts Cash (restricted cash of $ 19,342,991 and $ 24,388,209 ) $ 28,135,623 $ 41,794,802 Net unrealized gain (loss) on open futures contracts 669,707 1,216,130 Net unrealized gain (loss) on open forward currency contracts 618,602 1,237,285 Total equity in broker trading accounts 29,423,932 44,248,217 Cash and cash equivalents 8,117,618 2,390,015 Investment in private investment company, at fair value (cost$ 4,237,264 and $ 4,237,264 ) 1,514,700 2,312,982 Investment in securities, at fair value (cost $ 39,276,176 and $ 60,029,157 ) 39,666,118 60,605,106 General Partner 1 % allocation receivable 130,767 — Exchange membership, at fair value (cost $ 189,000 and $ 189,000 ) 313,000 160,000 Dividend receivable 4,517 3 Total assets $ 79,170,652 $ 109,716,323 Liabilities and Partners' Capital (Net Asset Value) Liabilities Trading Advisor management fees payable $ 119,037 $ 128,719 Trading Advisor incentive fees payable 46 202,916 Commissions and other trading fees payable on open contracts 15,766 21,656 Cash Managers fees payable 18,627 21,704 General Partner management and performance fees payable 98,501 136,449 General Partner 1 % allocation payable — 3,923 Selling Agent payable - General Partner 83,118 118,362 Broker dealer servicing fees payable - General Partner 3,916 5,178 Administrative fee payable - General Partner 28,308 39,779 Interest payable 10,083 15,285 Redemption payable 2,741,760 904,899 Total liabilities 3,119,162 1,598,870 Partners' Capital (Net Asset Value) Class A Interests – 13,714.9231 and 17,508.2067 units outstanding at June 30, 2025 and December 31, 2024, respectively 47,890,443 70,212,384 Cla

View Full Filing

View this 10-Q filing on SEC EDGAR