Graham Alternative Fund Swings to Loss Amid Realized Investment Declines
| Field | Detail |
|---|---|
| Company | Graham Alternative Investment Fund I LLC |
| Form Type | 10-Q |
| Filed Date | Nov 14, 2025 |
| Risk Level | medium |
| Pages | 15 |
| Reading Time | 18 min |
| Sentiment | bearish |
Sentiment: bearish
Topics: Alternative Investments, Hedge Fund Performance, Net Loss, Investment Management, Commodity Pool, Macro Strategy, SEC Filings
TL;DR
**Graham Alternative Fund's macro strategy is bleeding cash, signaling a tough environment for its global market bets.**
AI Summary
GRAHAM ALTERNATIVE INVESTMENT FUND I LLC (the "Fund") reported a net loss of $169,877 for the nine months ended September 30, 2025, a significant decline from the net income of $815,851 reported for the same period in 2024. This shift was primarily driven by a net realized loss on investment of $527,601 in 2025, compared to a loss of $58,631 in 2024, and a net decrease in unrealized appreciation of $88,002 for the three months ended September 30, 2025. Total assets increased to $30,494,181 at September 30, 2025, from $29,602,130 at December 31, 2024, largely due to an increase in the investment in Graham Alternative Investment Trading LLC (GAIT) to $29,845,924 from $28,370,643. Members' capital also saw an increase to $29,845,924 from $28,370,643 over the same period, despite the net loss, supported by $4,593,977 in subscriptions for the nine months ended September 30, 2025. The Fund's cash and cash equivalents rose to $275,000 at September 30, 2025, from $130,000 at December 31, 2024. The Fund, which invests all its trading assets in GAIT, owned 45.00% of GAIT at September 30, 2025, up from 42.76% at December 31, 2024.
Why It Matters
This filing reveals a significant performance downturn for Graham Alternative Investment Fund I LLC, shifting from a substantial net income in 2024 to a net loss in 2025. For investors, this indicates potential underperformance in its core macro strategy, which seeks long-term capital appreciation through global financial markets. The competitive landscape for alternative investment funds is fierce, and sustained losses could impact investor confidence and future capital inflows. Employees of Graham Capital Management, L.P., the fund's manager, may face pressure to improve trading results. Customers, particularly those invested in Class 2 Units, saw a decrease in units outstanding and a lower unit value, signaling a negative impact on their holdings.
Risk Assessment
Risk Level: medium — The Fund reported a net loss of $169,877 for the nine months ended September 30, 2025, a stark contrast to the $815,851 net income in the prior year, indicating a significant decline in profitability. This is primarily driven by a net realized loss on investment of $527,601 and a net decrease in unrealized appreciation of $88,002 for the three months ended September 30, 2025, highlighting market volatility and potential strategy underperformance.
Analyst Insight
Investors should scrutinize the underlying performance of Graham Alternative Investment Trading LLC (GAIT) and its Master Funds, as the Fund's performance is directly tied to GAIT. Consider re-evaluating exposure to this macro strategy given the recent net losses and increased realized losses, and potentially diversify into other alternative investments with stronger recent performance.
Financial Highlights
- debt To Equity
- N/A
- revenue
- N/A
- operating Margin
- N/A
- total Assets
- $30,494,181
- total Debt
- N/A
- net Income
- -$169,877
- eps
- N/A
- gross Margin
- N/A
- cash Position
- $275,000
- revenue Growth
- N/A
Key Numbers
- $169,877 — Net Loss (For the nine months ended September 30, 2025, a significant decrease from $815,851 net income in 2024.)
- $527,601 — Net Realized Loss on Investment (For the nine months ended September 30, 2025, indicating poor trading performance compared to a $58,631 loss in 2024.)
- $30,494,181 — Total Assets (At September 30, 2025, an increase from $29,602,130 at December 31, 2024, despite net losses.)
- $29,845,924 — Investment in Graham Alternative Investment Trading LLC (At September 30, 2025, representing the majority of the Fund's assets and an increase from $28,370,643.)
- $4,593,977 — Subscriptions (Net of subscriptions received in advance for the nine months ended September 30, 2025, contributing to capital growth despite losses.)
- 45.00% — Ownership of GAIT (At September 30, 2025, an increase from 42.76% at December 31, 2024, indicating increased exposure to GAIT's performance.)
- $275,000 — Cash and Cash Equivalents (At September 30, 2025, an increase from $130,000 at December 31, 2024.)
- $857,934 — Net Loss for Q3 2025 (For the three months ended September 30, 2025, a significant loss compared to $1,372,475 loss in Q3 2024.)
Key Players & Entities
- GRAHAM ALTERNATIVE INVESTMENT FUND I LLC (company) — registrant and commodity pool
- Graham Alternative Investment Trading LLC (company) — entity where the Fund invests all its trading assets
- Graham Capital Management, L.P. (company) — manager and sole investment advisor of GAIT and the Fund
- U.S. Commodity Futures Trading Commission (regulator) — oversight body for the Fund as a commodity pool
- SEI Global Services, Inc. (company) — Fund's independent administrator and transfer agent
- Brian Douglas (person) — contact person for the registrant
- $169,877 (dollar_amount) — net loss for the nine months ended September 30, 2025
- $815,851 (dollar_amount) — net income for the nine months ended September 30, 2024
- $527,601 (dollar_amount) — net realized loss on investment for the nine months ended September 30, 2025
- 45.00% (dollar_amount) — percentage of GAIT owned by the Fund at September 30, 2025
FAQ
What was the net income or loss for Graham Alternative Investment Fund I LLC for the nine months ended September 30, 2025?
Graham Alternative Investment Fund I LLC reported a net loss of $169,877 for the nine months ended September 30, 2025. This contrasts sharply with a net income of $815,851 for the same period in 2024.
How did the investment in Graham Alternative Investment Trading LLC change for the Fund?
The Fund's investment in Graham Alternative Investment Trading LLC (GAIT) increased to $29,845,924 at fair value as of September 30, 2025, from $28,370,643 at December 31, 2024. The Fund owned 45.00% of GAIT at September 30, 2025, up from 42.76% at December 31, 2024.
What were the primary drivers of the net loss for Graham Alternative Investment Fund I LLC?
The primary drivers of the net loss were a net realized loss on investment of $527,601 for the nine months ended September 30, 2025, and a net decrease in unrealized appreciation on investment of $88,002 for the three months ended September 30, 2025.
What is the role of Graham Capital Management, L.P. in relation to the Fund?
Graham Capital Management, L.P. is the manager and the sole investment advisor of both Graham Alternative Investment Trading LLC (GAIT) and Graham Alternative Investment Fund I LLC. They are responsible for managing and administering the affairs of the Fund and directing investment strategies.
How much cash and cash equivalents did Graham Alternative Investment Fund I LLC hold?
As of September 30, 2025, Graham Alternative Investment Fund I LLC held $275,000 in cash and cash equivalents. This is an increase from $130,000 held at December 31, 2024.
What is the investment objective of Graham Alternative Investment Fund I LLC?
The investment objective of the Fund is to achieve long-term capital appreciation through professionally managed trading in both U.S. and foreign markets. This is primarily done through futures contracts, forwards contracts, spot currency contracts, and associated derivative instruments via its investment in GAIT.
What is the significance of the Fund being a Series Limited Liability Company?
As a Series Limited Liability Company, each series, including the Core Macro Portfolio, is legally segregated. This means that the debts and liabilities of one series are enforceable only against the assets of that specific series, and not against the assets of GAIF I generally or any other series.
How did members' capital change for Graham Alternative Investment Fund I LLC?
Total members' capital for Graham Alternative Investment Fund I LLC increased to $29,845,924 at September 30, 2025, from $28,370,643 at December 31, 2024. This increase occurred despite a net loss, supported by $4,593,977 in subscriptions during the nine-month period.
What accounting standards does Graham Alternative Investment Fund I LLC follow?
The Fund prepares its financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) and applies specialized accounting guidance as outlined in FASB Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
What is the risk associated with the Fund's cash holdings?
Cash deposited with a bank is subject to credit risk. In the event of the bank's insolvency, recovery of the Fund's cash would be limited to account insurance or other protection, which could be substantially less than the $275,000 deposited at September 30, 2025.
Risk Factors
- Investment Performance Decline [high — financial]: The Fund reported a net loss of $169,877 for the nine months ended September 30, 2025, a significant reversal from a net income of $815,851 in the prior year. This was driven by a substantial net realized loss on investment of $527,601 in 2025, compared to a loss of $58,631 in 2024, and a net decrease in unrealized appreciation of $88,002 in Q3 2025.
- Concentration Risk in GAIT [high — financial]: The Fund's assets are heavily concentrated in its investment in Graham Alternative Investment Trading LLC (GAIT), amounting to $29,845,924, or approximately 98% of total assets as of September 30, 2025. The Fund's ownership stake in GAIT increased to 45.00% from 42.76%, increasing its exposure to GAIT's performance and operational risks.
- Market Volatility Impact [medium — market]: The significant net realized loss of $527,601 and the net decrease in unrealized appreciation of $88,002 for the nine months and three months ended September 30, 2025, respectively, highlight the Fund's sensitivity to market fluctuations. The performance of GAIT, which the Fund invests all its trading assets in, is directly impacted by market volatility.
- Dependence on GAIT Performance [high — operational]: The Fund's financial results are entirely dependent on the performance of Graham Alternative Investment Trading LLC (GAIT), as all trading assets are invested in GAIT. Any underperformance or operational issues at GAIT directly translate to the Fund's financial outcomes.
- Capital Subscriptions Masking Losses [medium — financial]: Despite a net loss of $169,877 for the nine months ended September 30, 2025, members' capital increased to $29,845,924 due to $4,593,977 in subscriptions. This indicates that capital inflows are currently offsetting realized and unrealized investment losses, a trend that may not be sustainable if investment performance does not improve.
Industry Context
The alternative investment fund industry is characterized by complex strategies and often high concentration in specific assets or entities. Funds like GRAHAM ALTERNATIVE INVESTMENT FUND I LLC typically aim for uncorrelated returns but are susceptible to market volatility and the performance of their underlying investments. The trend towards increased investment in specialized trading vehicles like GAIT reflects a strategy to leverage specific trading expertise, but also concentrates risk.
Regulatory Implications
As an alternative investment fund, the Fund is subject to various regulatory frameworks governing investment management and disclosure. The significant shift in performance and increased concentration in GAIT may attract scrutiny regarding risk management practices and the adequacy of disclosures to investors about the risks associated with its investment strategy and its reliance on GAIT.
What Investors Should Do
- Review the performance of Graham Alternative Investment Trading LLC (GAIT) in detail, as the Fund's results are entirely dependent on it.
- Assess the sustainability of capital growth, given that increased members' capital is currently driven by subscriptions rather than investment gains.
- Understand the risks associated with the high concentration of assets in GAIT and the Fund's increased ownership stake.
- Evaluate the Fund's cash position and liquidity relative to potential redemption requests, considering the recent increase in cash.
Key Dates
- 2025-09-30: Nine months ended September 30, 2025 — Reported a net loss of $169,877, a significant decline from the prior year's net income, driven by investment losses.
- 2025-09-30: Total Assets as of September 30, 2025 — Increased to $30,494,181, primarily due to increased investment in GAIT.
- 2025-09-30: Investment in GAIT as of September 30, 2025 — Rose to $29,845,924, representing 98% of total assets and an increased ownership stake in GAIT (45.00%).
- 2025-09-30: Cash and Cash Equivalents as of September 30, 2025 — Increased to $275,000, indicating improved liquidity.
- 2024-12-31: Total Assets as of December 31, 2024 — Stood at $29,602,130, serving as the prior year's benchmark.
- 2024-09-30: Nine months ended September 30, 2024 — Reported a net income of $815,851, providing a strong comparative performance metric.
Glossary
- Net realized loss on investment
- The total loss incurred from selling investments during a period, after accounting for any gains or losses from closing out positions. (A key driver of the Fund's net loss in 2025, indicating poor trading outcomes.)
- Net decrease in unrealized appreciation
- The reduction in the estimated fair value of investments that are still held, meaning their value has decreased since the last reporting period. (Contributed to the net loss in Q3 2025, reflecting a decline in the value of the Fund's holdings.)
- Investment in Graham Alternative Investment Trading LLC (GAIT)
- The value of the Fund's investment in its subsidiary or affiliated trading entity, GAIT. (Represents the vast majority of the Fund's assets and its primary source of performance.)
- Members' capital
- The total equity investment made by the Fund's investors. (Shows the net worth of the Fund belonging to its investors, which increased despite losses due to subscriptions.)
- Subscriptions
- Capital contributed by investors into the Fund. (These inflows helped to increase members' capital, offsetting some of the investment losses.)
- Cash and cash equivalents
- Highly liquid investments that are readily convertible to cash, including money market accounts and short-term government bonds. (Indicates the Fund's immediate liquidity, which has increased.)
Year-Over-Year Comparison
Compared to the nine months ended September 30, 2024, GRAHAM ALTERNATIVE INVESTMENT FUND I LLC has experienced a dramatic shift from a net income of $815,851 to a net loss of $169,877. This reversal is primarily due to a significant increase in net realized losses on investments, from $58,631 to $527,601. While total assets have grown to $30,494,181 from $29,602,130, this growth is largely attributed to increased investment in GAIT and capital subscriptions, masking the underlying decline in investment performance.
Filing Stats: 4,555 words · 18 min read · ~15 pages · Grade level 11 · Accepted 2025-11-14 11:16:30
Filing Documents
- ef20054995_10q.htm (10-Q) — 4014KB
- ef20054995_ex31-1.htm (EX-31.1) — 10KB
- ef20054995_ex31-2.htm (EX-31.2) — 9KB
- ef20054995_ex32-1.htm (EX-32.1) — 4KB
- 0001140361-25-042162.txt ( ) — 6847KB
- gaif-20250930.xsd (EX-101.SCH) — 24KB
- gaif-20250930_def.xml (EX-101.DEF) — 79KB
- gaif-20250930_lab.xml (EX-101.LAB) — 153KB
- gaif-20250930_pre.xml (EX-101.PRE) — 91KB
- gaif-20250930_cal.xml (EX-101.CAL) — 18KB
- ef20054995_10q_htm.xml (XML) — 714KB
- Financial Information
PART I - Financial Information: Item 1.
Financial Statements
Financial Statements: Graham Alternative Investment Fund I LLC Core Macro Portfolio 1 Unaudited Statements of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 2 Unaudited Statements of Changes in Members' Capital for the Three and Nine Months Ended September 30, 2025 and 2024 3 Unaudited Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 5 Notes to Unaudited Financial Statements 6 Graham Alternative Investment Trading LLC 16 Condensed Schedules of Investments at September 30, 2025 (Unaudited) and December 31, 2024 (Audited) 17 Unaudited Statements of Operations and Incentive Allocation for the Three and Nine Months Ended September 30, 2025 and 2024 18 Unaudited Statements of Changes in Members' Capital for the Three and Nine Months Ended September 30, 2025 and 2024 19 Unaudited Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 23 Notes to Unaudited Financial Statements 24 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 72 Item 3.
Quantitative and Qualitative Disclosures about Market Risk
Quantitative and Qualitative Disclosures about Market Risk 81 Item 4.
Controls and Procedures
Controls and Procedures 82
- Other Information
PART II - Other Information 83 Item 1.
Legal Proceedings
Legal Proceedings Item 1A.
Risk Factors
Risk Factors Item 2. Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Purchases of Equity Item 3. Defaults Upon Senior Securities Item 4. Mine Safety Disclosures Item 5. Other Information Item 6. Exhibits 84 EX - 31.1 Certification EX - 31.2 Certification EX - 32.1 Certification Index PART I
Financial Statements
Item 1. Financial Statements Graham Alternative Investment Fund I LLC Core Macro Portfolio September 30, 2025 (Unaudited) December 31, 2024 (Audited) Assets Investment in Graham Alternative Investment Trading LLC, at fair value $ 29,845,924 $ 28,370,643 Redemptions receivable from Graham Alternative Investment Trading LLC 373,257 1,101,487 Cash and cash equivalents 275,000 130,000 Total assets $ 30,494,181 $ 29,602,130 Liabilities and members' capital Liabilities: Redemptions payable $ 373,257 $ 1,101,487 Subscriptions received in advance 275,000 130,000 Total liabilities 648,257 1,231,487 Members' capital: Class 0 Units ( 74,354.429 and 70,588.714 units issued and outstanding at $ 234.57 and $ 235.13 , respectively) 17,441,282 16,597,335 Class 2 Units ( 45,079.683 and 51,013.097 units issued and outstanding at $ 163.38 and $ 164.69 , respectively) 7,365,025 8,401,324 Class 3-A Units ( 13,208.543 and 5,611.660 units issued and outstanding at $ 97.42 and $ 97.68 , respectively) 1,286,821 548,137 Class 3-B Units ( 39,608.907 and 29,565.170 units issued and outstanding at $ 94.75 and $ 95.51 , respectively) 3,752,796 2,823,847 Total members' capital 29,845,924 28,370,643 Total liabilities and members' capital $ 30,494,181 $ 29,602,130 See accompanying notes and the attached financial statements of Graham Alternative Investment Trading LLC. 1 Index Graham Alternative Investment Fund I LLC Core Macro Portfolio Unaudited Statements of Operations Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net (loss) gain allocated from investment in Graham Alternative Investment Trading LLC: Net realized loss on investment $ ( 810,356 ) $ ( 1,498,300 ) $ ( 527,601 ) $ ( 58,631 ) Net (decrease) increase in unrealized appreciation on investment ( 88,002 ) 54,284 266,323 751,825 Broke