Graham Fund Posts Loss

Despite strong investor interest and steady capital inflows, returns across all unit classes declined in Q3.

November 17, 2025

Performance Overview

Graham Alternative Investment Fund I’s Core Macro Portfolio saw its third-quarter performance dip into negative territory, posting a net loss of $857,934. The results were driven by market conditions that made it harder for the Fund’s trading strategies to gain ground—despite consistent investor activity and a slight increase in overall assets.

Every unit class in the Fund experienced a decline in returns over the quarter. Although interest income was positive, realized and unrealized losses from the Fund’s investment in Graham Alternative Investment Trading LLC (GAIT) pushed overall results lower.

Total assets climbed to $30.5 million at the end of September, up from $29.6 million at year-end 2024. That growth came from net new subscriptions rather than investment performance. Redemptions slowed, helping the Fund maintain a stable capital base through the quarter.

Strategy and Exposure

The Fund is fully allocated to GAIT, which invests across multiple Master Funds and a cash management vehicle. These underlying strategies span futures, forwards, spot currencies, and derivatives—covering U.S. and international markets. While the strategy remains diversified, losses in the Master Funds weighed on quarterly performance.

GAIT’s total losses from Master Fund allocations reached $638,833 for the year-to-date period. That marks a significant shift from the $1.4 million gain reported over the same period in 2024, highlighting how current market dynamics have shifted the risk/reward landscape.

Fee Structure and Costs

Fees are allocated at the GAIT level. Investors indirectly incur advisory and sponsor fees, along with any incentive allocations. Advisory fees for the Fund reached $353,417 during the nine-month period. Sponsor fees were $138,351, both trending slightly below last year’s figures. Incentive allocation was limited—just over $20,000 year-to-date—due to lower trading gains.

Cash Flow and Capital Activity

Subscriptions continued to outpace redemptions during the quarter. Net operating outflows totaled $916,928, but financing activity (primarily subscriptions) brought in $1.06 million. That kept cash levels healthy, with cash and equivalents ending the quarter at $275,000—more than double the balance at the start of the year.

Investor interest remained steady. All four unit classes—Class 0, Class 2, and the recently launched Class 3-A and 3-B—recorded inflows. Total members’ capital rose to $29.85 million from $28.37 million at the start of the year.

Looking Ahead

Graham Capital Management continues to oversee investment strategy and risk allocation. The Fund’s structure gives it the flexibility to deploy capital across global macro and systematic strategies, while the multi-manager approach provides exposure to a broad set of instruments and asset classes.

From October 1 through mid-November, the Fund brought in another $500,000 in subscriptions and processed $200,000 in redemptions. That activity reflects continued investor engagement—even in a volatile backdrop—while positioning the Fund to respond to upcoming opportunities.