Altegris Winton Futures Fund Plunges to $1M Loss Amid Derivatives Rout

TL;DR

**Altegris Winton Futures Fund is bleeding cash, dump it now as derivatives losses wipe out prior gains.**

AI Summary

Altegris Winton Futures Fund, L.P. experienced a significant decline in financial performance for the six months ended June 30, 2025, reporting a net loss of $1,042,948, a stark contrast to the net income of $1,095,703 for the same period in 2024. This downturn was primarily driven by a substantial net loss from trading of derivatives contracts, which amounted to $(1,045,301) in 2025, compared to a net gain of $1,227,363 in 2024. Total trading gains (losses) plummeted from $1,211,075 in 2024 to $(1,032,381) in 2025. The fund's total assets decreased from $13,053,078 as of December 31, 2024, to $10,798,830 as of June 30, 2025, representing a 17.3% reduction. Partners' capital also saw a considerable drop from $12,894,438 to $10,583,674 over the same period. Interest income declined from $396,551 in 2024 to $239,482 in 2025, while total expenses decreased from $511,923 to $250,049, largely due to the absence of an incentive fee in 2025, which was $204,948 in 2024.

Why It Matters

This significant net loss of $1,042,948 for Altegris Winton Futures Fund, L.P. is a critical red flag for investors, indicating a substantial underperformance compared to the $1,095,703 net income in the prior year. The sharp decline in derivatives trading gains suggests that the fund's speculative strategy, managed by Winton Capital Management Limited, is currently struggling, potentially impacting future returns and investor confidence. For employees of Altegris Advisors, L.L.C. and Winton Capital Management Limited, this performance could lead to reduced incentive fees and pressure on job security. In the broader market, such a downturn in a futures fund highlights the inherent volatility and risks associated with commodity interest trading, potentially influencing investor sentiment towards similar alternative investment vehicles and their competitive positioning against more stable funds.

Risk Assessment

Risk Level: high — The fund exhibits a high risk level due to a dramatic shift from a net income of $1,095,703 in the six months ended June 30, 2024, to a net loss of $1,042,948 for the same period in 2025. This is primarily driven by a net loss from trading of derivatives contracts of $(1,045,301) in 2025, compared to a gain of $1,227,363 in 2024, indicating significant volatility and potential for further losses in its core trading strategy.

Analyst Insight

Investors should consider divesting from Altegris Winton Futures Fund, L.P. given the severe underperformance and substantial net loss of $1,042,948. The significant negative shift in derivatives trading results suggests a fundamental issue with the current strategy or market conditions, warranting a re-evaluation of its role in a diversified portfolio.

Financial Highlights

total Assets

$ 10,798,830

net Income

$ (1,042,948)

cash Position

$ 2,127,443

Key Numbers

• $1,042,948 — Net Loss (For the six months ended June 30, 2025, compared to $1,095,703 net income in 2024.)
• $(1,045,301) — Net loss from trading of derivatives contracts (For the six months ended June 30, 2025, a significant decline from a $1,227,363 gain in 2024.)
• $10,798,830 — Total Assets (As of June 30, 2025, down from $13,053,078 as of December 31, 2024.)
• $10,583,674 — Total Partners' Capital (As of June 30, 2025, down from $12,894,438 as of December 31, 2024.)
• $239,482 — Interest Income (For the six months ended June 30, 2025, a decrease from $396,551 in 2024.)
• $250,049 — Total Expenses (For the six months ended June 30, 2025, a decrease from $511,923 in 2024, partly due to no incentive fee.)
• $204,948 — Incentive Fee (Zero for the six months ended June 30, 2025, compared to this amount in 2024.)
• 17.3% — Decrease in Total Assets (From December 31, 2024, to June 30, 2025.)

Key Players & Entities

• Altegris Winton Futures Fund, L.P. (company) — registrant
• Altegris Advisors, L.L.C. (company) — General Partner of the Partnership
• Winton Capital Management Limited (company) — Advisor to the Partnership
• Commodity Futures Trading Commission (regulator) — regulates the commodity futures industry
• National Futures Association (regulator) — industry self-regulatory organization
• U.S. Securities and Exchange Commission (regulator) — regulates investment advisers
• Douglas C. Grip (person) — owner of Continuum Capital Managers LLC
• Stephen E. Vanourny (person) — owner of Continuum Capital Managers LLC
• Matthew Osborne (person) — General Partner's Chief Executive Officer and Chief Investment Officer
• $1,042,948 (dollar_amount) — Net loss for the six months ended June 30, 2025

FAQ

Risk Factors

• Commodity Futures Trading Volatility [high — market]: The Partnership speculatively trades commodity futures contracts, options on futures contracts, and other commodity interests. The net loss from trading of derivatives contracts was $(1,045,301) for the six months ended June 30, 2025, a significant decline from a $1,227,363 gain in the prior year period. This highlights the inherent volatility and risk associated with these speculative trading activities.
• Investment Securities Valuation Risk [medium — market]: The Partnership holds investment securities valued at fair value, which was $7,377,428 as of June 30, 2025. Fluctuations in market prices can lead to unrealized gains or losses, impacting the overall Net Asset Value. The cost of these securities was $7,363,641, indicating a slight unrealized gain.
• CFTC and NFA Compliance [medium — regulatory]: The Partnership is subject to the regulations of the Commodity Futures Trading Commission (CFTC) and the rules of the National Futures Association (NFA). Non-compliance with these regulations can lead to penalties and operational disruptions.
• Asset and Capital Decline [high — financial]: Total assets decreased by 17.3% from $13,053,078 as of December 31, 2024, to $10,798,830 as of June 30, 2025. Partners' capital also saw a significant drop from $12,894,438 to $10,583,674 in the same period, reflecting the substantial net loss incurred.

Industry Context

The Altegris Winton Futures Fund operates within the highly speculative and volatile commodity futures and derivatives market. This sector is characterized by significant price swings driven by global economic factors, geopolitical events, and supply/demand dynamics. The fund's strategy involves actively trading futures, options, and forward contracts across various asset classes, making it sensitive to market movements and requiring sophisticated risk management.

Regulatory Implications

The fund is subject to stringent regulations by the CFTC and NFA. Compliance with these rules is critical to avoid penalties and maintain operational integrity. Changes in regulatory frameworks or enforcement actions could impact the fund's ability to operate or its trading strategies.

What Investors Should Do

1. Review trading strategy and risk management protocols.
2. Assess the impact of the absence of incentive fees.
3. Monitor asset and capital preservation.

Key Dates

• 2025-06-30: Six months ended June 30, 2025 financial results — Reported a net loss of $1,042,948, driven by trading losses, and a significant decrease in total assets and partners' capital.
• 2024-12-31: Year-end financial position — Total assets were $13,053,078 and partners' capital was $12,894,438, prior to the significant downturn in the first half of 2025.
• 1999-03-01: Partnership organized — Established the legal framework for the Altegris Winton Futures Fund, L.P.

Glossary

Commodity Futures Trading Commission (CFTC)

A U.S. government agency that regulates the commodity futures and options markets. (The Partnership is subject to CFTC regulations, impacting its trading activities and reporting requirements.)

National Futures Association (NFA)

An industry self-regulatory organization for the U.S. derivatives industry. (The Partnership must adhere to NFA rules, which govern the conduct of market participants.)

Forward Contracts

A customized contract between two parties to buy or sell an asset at a specified price on a future date. (The Partnership trades forward contracts, and unrealized gains/losses on these are reported in its financial statements.)

Futures Contracts

Standardized contracts to buy or sell a specific commodity or financial instrument at a predetermined price on a future date. (The Partnership's core trading activity involves futures contracts, which are a primary driver of its financial performance.)

Net Asset Value (NAV)

The total value of a fund's assets minus its liabilities, often expressed per share or unit. (Represents the partners' capital in the fund, which has seen a significant decline.)

Year-Over-Year Comparison

For the six months ended June 30, 2025, Altegris Winton Futures Fund, L.P. experienced a dramatic shift in performance compared to the same period in 2024. Net income of $1,095,703 turned into a net loss of $1,042,948, primarily due to a substantial swing from a $1,227,363 net gain on derivatives trading to a $(1,045,301) net loss. Total assets and partners' capital also declined significantly, by 17.3% and 17.0% respectively, while interest income and total expenses (excluding the incentive fee) decreased.

Filing Documents

• altegris_i10q-063025.htm (10-Q) — 1074KB
• altegris_ex3101.htm (EX-31.1) — 7KB
• altegris_ex3102.htm (EX-31.2) — 7KB
• altegris_ex3201.htm (EX-32.1) — 3KB
• altegris_ex3202.htm (EX-32.2) — 3KB
• 0001683168-25-006099.txt ( ) — 5159KB
• awin-20250630.xsd (EX-101.SCH) — 36KB
• awin-20250630_cal.xml (EX-101.CAL) — 30KB
• awin-20250630_def.xml (EX-101.DEF) — 97KB
• awin-20250630_lab.xml (EX-101.LAB) — 210KB
• awin-20250630_pre.xml (EX-101.PRE) — 188KB
• altegris_i10q-063025_htm.xml (XML) — 1237KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 1 Item 1.

Financial Statements

Financial Statements 1 1 Condensed Schedules of Investments 2 4 5

Notes to Financial Statements

Notes to Financial Statements 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 31 Item 4.

Controls and Procedures

Controls and Procedures 31

– OTHER INFORMATION

PART II – OTHER INFORMATION 32 Item 1.

Legal Proceedings

Legal Proceedings 32 Item 1A.

Risk Factors

Risk Factors 32 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32 Item 3. Defaults Upon Senior Securities 32 Item 4. Mine Safety Disclosure 32 Item 5. Other Information 32 Item 6. Exhibits 33

Signatures

Signatures 34 Rule 13a–14(a)/15d–14(a) Certifications Section 1350 Certifications i

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

: Financial Statements

Item 1: Financial Statements. ALTEGRIS WINTON FUTURES FUND, L.P. JUNE 30, 2025 (Unaudited) AND DECEMBER 31, 2024 (Audited) 2025 2024 ASSETS Equity in commodity broker account: Cash deposit with broker $ 2,127,443 $ 2,588,640 Segregated cash 692,735 1,052,978 Segregated foreign currency (cost - $ 136,552 and $ 81,043 ) 139,984 78,283 Net unrealized gain on open forward contracts 2,688 – Net unrealized gain on open futures contracts 187,839 343,719 Total assets in commodity broker account 3,150,689 4,063,620 Investment securities, at fair value (cost - $ 7,363,641 and $ 8,783,468 ) 7,377,428 8,810,590 Cash 270,713 178,868 Total assets $ 10,798,830 $ 13,053,078 LIABILITIES Equity in commodity broker account: Net unrealized loss on open forward contracts $ – $ 25,307 Total liabilities in commodity broker account – 25,307 Redemptions payable 131,748 21,341 Commissions payable 12,443 15,585 Management fee payable 10,325 12,439 Service fees payable 19,840 22,656 Advisory fee payable 8,150 9,849 Administrative fee payable 2,456 2,975 Other liabilities 30,194 48,488 Total liabilities 215,156 158,640 PARTNERS' CAPITAL (NET ASSET VALUE) General Partner 3,489 3,774 Limited Partners 10,580,185 12,890,664 Total partners' capital (Net Asset Value) 10,583,674 12,894,438 Total liabilities and partners' capital $ 10,798,830 $ 13,053,078 See accompanying notes. 1 ALTEGRIS WINTON FUTURES FUND, L.P. CONDENSED SCHEDULES OF INVESTMENTS JUNE 30, 2025 (Unaudited) Range of Expiration Dates Number of Contracts Fair Value % of Partners' Capital LONG FUTURES CONTRACTS: Agriculture Aug 25 - Mar 26 48 $ 12,184 0.12 % Currencies Sep 25 39 65,970 0.62 % Energies Sep 25 - Nov 25 6 ( 22,292 ) ( 0.21 )% Interest Rates Sep 25 - June 28 95 5,893 0.06 % Metals Aug 25 - Oct 25 32 76,140 0.72 % Stock Indices July 25

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES A. General Description of the Partnership Altegris Winton Futures Fund, L.P. (the "Partnership") was organized as a Colorado limited partnership in March 1999, and will continue until December 31, 2035, unless sooner terminated as provided for in the Agreement of Limited Partnership (the "Agreement"), as amended and restated from time to time. The Partnership's general partner is Altegris Advisors, L.L.C. (the "General Partner"). The General Partner has the overall responsibility for the management, operation and administration of the Partnership, including the selection of its commodity trading adviser. The Partnership's trading activities are conducted pursuant to an advisor contract with Winton Capital Management Limited (the "Advisor"). The Partnership speculatively trades commodity futures contracts, options on futures contracts, forward contracts and other commodity interests. The objective of the Partnership's business is appreciation of its assets. The Partnership is subject to the regulations of the Commodity Futures Trading Commission (the "CFTC"), an agency of the United States ("U.S.") government that regulates most aspects of the commodity futures industry; rules of the National Futures Association, an industry self-regulatory organization; and the requirements of commodity exchanges and futures commission merchants (brokers) through which the Partnership trades. The General Partner is registered with the U.S. Securities and Exchange Commission under the U.S. Investment Advisers Act of 1940, as amended, as an investment adviser and is registered with the Commodity Futures Trading Commission ("CFTC") as a commodity pool operator, and is a member of the National Futures Association, an industry self-regulatory organization. Effective September 27, 2021, as part of an internal reorganization, the General Partner and Altegris Clearing Solutions L.L.C. ("Altegris

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