LoCorr Futures Fund Leverages $1.60 for Every $1 in Equity

TL;DR

**LoCorr's high leverage and hefty fees make it a high-stakes bet on its trading advisors' ability to consistently outperform, otherwise, limited partners will be left holding the bag.**

AI Summary

LOCORR FUTURES PORTFOLIO FUND L.P., a Maryland limited partnership formed in 1989, engages in speculative trading of futures and forward currency contracts across seven market sectors including agricultural commodities, currencies, and energy products. As of December 31, 2025, the Fund's total capitalization stood at $69,181,111, with Class A Units representing the largest portion at $44,383,536 and a Net Asset Value per Unit of $3,614.53. The Fund utilizes multiple professional trading advisors, with Crabel Capital Management, LLC holding the largest allocation at 33.4% as of February 27, 2026. The General Partner, Steben & Company, LLC, manages all aspects of the Fund, including advisor selection and asset allocation. A key risk highlighted is the potential for increased leverage through notional funds, with the Fund maintaining a notional trading level of approximately $1.60 for every $1 of equity throughout 2025, which amplifies both profit potential and risk of loss. Substantial expenses, including trading advisor management fees ranging from 0% to 3% annually and incentive fees up to 30%, necessitate significant trading profits to avoid asset depletion.

Why It Matters

LoCorr Futures Portfolio Fund's reliance on a multi-manager approach and significant notional leverage, at $1.60 for every $1 of equity, means investors face amplified risk and reward. The Fund's substantial fee structure, including up to 30% incentive fees for trading advisors, demands exceptional performance to generate net profits for limited partners. This competitive landscape, where the Fund vies with other commodity pools for capital, underscores the critical role of the General Partner's advisor selection and asset allocation in driving investor returns. Employees of the General Partner and trading advisors are directly impacted by the Fund's performance-based fees, while customers seeking diversified futures exposure must weigh the high expense ratios against potential gains.

Risk Assessment

Risk Level: high — The Fund's risk level is high due to its use of notional funds, maintaining a notional trading level of approximately $1.60 for every $1 of equity throughout 2025, which significantly increases the risk of loss. Additionally, the Fund's substantial expenses, including trading advisor incentive fees up to 30% and General Partner management fees up to 1.5% annually, mean it requires substantial trading profits to avoid asset depletion, further elevating risk.

Analyst Insight

Investors should scrutinize the Fund's historical performance net of its substantial fees and consider the implications of its 1.6x notional leverage. Given the high expense structure and reliance on trading advisor performance, a deep dive into the General Partner's due diligence process for selecting and monitoring advisors is crucial before committing capital.

Key Numbers

• $69,181,111 — Total Capitalization (as of December 31, 2025)
• $44,383,536 — Class A Capitalization (largest class of units as of December 31, 2025)
• $3,614.53 — Class A Net Asset Value per Unit (as of December 31, 2025)
• 33.4% — Crabel Capital Management, LLC Allocation (largest trading advisor allocation as of February 27, 2026)
• 1.60 — Notional Trading Level (for every $1 of equity throughout 2025, indicating leverage)
• 0% to 3% — Trading Advisor Management Fees (annual range)
• 0% to 30% — Trading Advisor Incentive Fees (range for Net New Trading Profits)
• $2.61 — Average Brokerage Commissions and Trading Expenses (per round-turn futures transaction on U.S. exchanges)
• 1.5% — General Partner Management Fee (Class A, A2, B, R) (annual rate on month-end net asset value)
• 7.5% — General Partner Performance Fee (Class I) (of Net Profits of Class I Units, calculated monthly)

Key Players & Entities

• LOCORR FUTURES PORTFOLIO FUND L.P. (company) — registrant
• Steben & Company, LLC (company) — General Partner and commodity pool operator
• Crabel Capital Management, LLC (company) — Trading Advisor with 33.4% allocation
• Principal Global Investors, LLC (company) — Cash Manager
• CFTC (regulator) — regulates commodity futures industry
• SEC (regulator) — regulates securities
• NFA (regulator) — self-regulatory organization for commodities professionals
• SG Americas Securities, LLC (company) — futures broker
• Goldman Sach & Company, LLC (company) — futures broker
• Deutsche Bank Securities, Inc. (company) — futures broker

FAQ

Risk Factors

• Leverage Amplifies Risk [high — financial]: The Fund utilizes significant leverage, maintaining a notional trading level of approximately $1.60 for every $1 of equity throughout 2025. This leverage amplifies both potential profits and the risk of substantial losses, making the Fund highly sensitive to market movements.
• High Fees Impact Returns [high — financial]: Substantial expenses, including trading advisor management fees (0% to 3% annually) and incentive fees (up to 30% of Net New Trading Profits), are charged. These fees require significant trading profits to offset, increasing the risk of asset depletion if performance is not strong.
• Dependence on Trading Advisors [medium — operational]: The Fund relies on multiple professional trading advisors, with Crabel Capital Management, LLC holding the largest allocation at 33.4% as of February 27, 2026. The performance and actions of these advisors directly impact the Fund's results.
• Speculative Trading Risks [high — market]: The Fund engages in speculative trading of futures and forward currency contracts across diverse sectors like agricultural commodities, currencies, and energy products. This inherently involves a high degree of risk due to price volatility and market uncertainty.
• General Partner Control [medium — operational]: Steben & Company, LLC, as the General Partner, manages all aspects of the Fund, including advisor selection and asset allocation. This concentration of control means investor outcomes are heavily dependent on the General Partner's decisions and expertise.

Industry Context

The Fund operates in the highly competitive and volatile futures and forward currency contract markets. It competes with numerous other managed futures funds and proprietary trading firms. Key industry trends include increasing use of quantitative strategies, algorithmic trading, and the ongoing search for alpha in diverse commodity and currency markets.

Regulatory Implications

As a limited partnership trading futures, the Fund is subject to regulations by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). Compliance with reporting requirements, capital adequacy rules, and anti-fraud provisions is critical. Changes in regulatory frameworks could impact trading strategies and operational costs.

What Investors Should Do

1. Review Trading Advisor Performance
2. Assess Leverage Impact
3. Factor in High Fees
4. Understand General Partner's Role

Glossary

Notional Trading Level

The total value of contracts or positions held by a fund, expressed as a multiple of its equity. It indicates the degree of leverage employed. (Highlights the Fund's use of leverage, with a ratio of 1.60 for every $1 of equity, amplifying both potential gains and losses.)

Net New Trading Profits

Profits generated from trading activities after accounting for all trading-related expenses and fees, typically used as the basis for calculating incentive fees. (Crucial for understanding the calculation of incentive fees, which can be up to 30% of these profits, significantly impacting investor returns.)

Round-Turn Futures Transaction

A complete futures contract transaction, involving both the opening (buying or selling) and closing (selling or buying) of a position. (Used to calculate brokerage commissions and trading expenses, with an average cost of $2.61 per transaction on U.S. exchanges.)

Net Asset Value per Unit

The value of a fund's assets minus its liabilities, divided by the number of outstanding units. It represents the per-share market value of the fund. (Indicates the per-unit worth of the Fund, with Class A Units having a Net Asset Value of $3,614.53 as of December 31, 2025.)

Year-Over-Year Comparison

Information comparing key metrics to the previous year, such as revenue growth, margin changes, or new risks, is not available in the provided text excerpt. The filing focuses on the current state as of December 31, 2025, and February 27, 2026, without direct year-over-year comparisons.

Key Financial Figures

• $2.61 — U.S. futures exchanges at an average of $2.61 per "round-turn" futures transaction (i
• $1 — e General Partner will allocate between $1 and $2 to the Trading Advisors for ever
• $2 — al Partner will allocate between $1 and $2 to the Trading Advisors for every $1 of
• $1.60 — notional trading level of approximately $1.60 for every $1 of equity in the Fund. V

Filing Documents

• locorr_10k-123125.htm (10-K) — 2317KB
• ex31-01.htm (EX-31.01) — 17KB
• ex31-02.htm (EX-31.02) — 17KB
• ex32-01.htm (EX-32.01) — 5KB
• ex32-02.htm (EX-32.02) — 5KB
• 0001999371-26-006903.txt ( ) — 9057KB
• fpf-20251231.xsd (EX-101.SCH) — 72KB
• fpf-20251231_cal.xml (EX-101.CAL) — 46KB
• fpf-20251231_def.xml (EX-101.DEF) — 226KB
• fpf-20251231_lab.xml (EX-101.LAB) — 471KB
• fpf-20251231_pre.xml (EX-101.PRE) — 329KB
• locorr_10k-123125_htm.xml (XML) — 1877KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 7 Item 1B. Unresolved Staff Comments 12 Item 2.

Properties

Properties 12 Item 3.

Legal Proceedings

Legal Proceedings 12 Item 4. Mine Safety Disclosures 12 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 12 Item 6.

Selected Financial Data

Selected Financial Data 13 Item 7.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 17 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 26 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 29 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.. 29 Item 9A.

Controls and Procedures

Controls and Procedures 29 Item 9B. Other Information 29 Part III Item 10. Directors, Executive Officers, and Corporate Governance 30 Item 11.

Executive Compensation

Executive Compensation 31 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 32 Item 13. Certain Relationships and Related Transactions, and Director Independence 32 Item 14. Principal Accountant Fees and Services 32 Part IV Item 15. Exhibits and Financial Statement Schedules 33

Signatures

Signatures 34 PART I Item 1. Business LoCorr Futures Portfolio Fund, Limited Partnership ("Fund") is a Maryland limited partnership, was formed on May 11, 1989 and began trading on January 2, 1990. Using professional trading advisors, the Fund engages in the speculative trading of futures contracts, forward currency contracts and other financial instruments traded in the United States ("U.S.") and internationally. The Fund primarily trades within seven market sectors: agricultural commodities, currencies, energy products, equity indices, interest rate instruments, metals and single stock futures. The Fund's fiscal year ends each December 31 unless terminated earlier as provided in the Seventh Amended and Restated Limited Partnership Agreement ("Partnership Agreement"). At December 31, 2025, the capitalization of the Fund and net asset value per limited partner interest ("Units") was as follows: Class of Units Capitalization Net Asset Value per Unit Class A $ 44,383,536 $ 3,614.53 Class A2 8,895 1,014.85 Class B 19,411,434 6,301.31 Class I 274,413 1,110.24 Class R 5,102,833 1,060.43 Total $ 69,181,111 The Fund's assets are allocated among professional trading advisors ("Trading Advisors"). Portions of the Fund's assets may be allocated to other investment funds or pools at the discretion of Steben & Company, LLC ("General Partner"). The General Partner is responsible for selecting and monitoring the Trading Advisors, and the General Partner may add new Trading Advisors in the future, terminate the current Trading Advisors, and will, in general, allocate and reallocate the Fund's assets among the Trading Advisors as it deems is in the best interests of the Fund and without prior notice to investors. The Fund maintains margin deposits and reserves in cash, U.S. Treasury securities, registered U.S. money market funds, commercial paper, certificates of deposit, asset backed securities and corporate notes in accordance with Commodity

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View this 10-K filing on SEC EDGAR