Nestor Partners Company Summary

Business Overview

• Type: Limited partnership organized in 1976 under the New Jersey Uniform Limited Partnership Act.
• Business Activities:
  • Engages in speculative trading via a diversified portfolio of financial and commodity derivatives.
  • Trades futures, forward, swap, spot, and option contracts.
  • Markets traded include currencies, metals, interest rate instruments, stock indices, energy, and agricultural commodities.
• Trading Methodology:
  • Global trading based on proprietary quantitative and systematic models.
  • Trading signals derived from quantitative data analysis.
  • Approximately 20-30% of trading risk involves currency markets.
• Start of Operations: Began trading activities in February 1977.
• Investment Decisions: Made exclusively by the General Partner, which is a Delaware LLC (converted from a corporation as of January 30, 2025).

Assets and Valuations

• Total Net Asset Value as of December 31, 2024: $114,588,861.
• Historical Investment Return:
  • Initial $1,000 investment in 1977 would be valued at approximately $63,870.41 as of December 31, 2024, after net return.
• Assets include:
  • U.S. Treasury securities (notes and bills)
  • Cash, cash equivalents, and money market instruments
  • Derivative contracts (futures, forwards, options)

Trading Details

• Markets Traded:
  • Currencies (especially interbank forward contracts)
  • Metals (e.g., gold, silver, copper, zinc, aluminum)
  • Energy (crude oil, natural gas, refined products)
  • Interest rates (government bonds, Treasury notes)
  • Stock indices (U.S., European, Asian markets)
  • Agricultural commodities (grains, livestock, softs)
• Trading Strategies:
  • Systematic, quantitative models considering risk, liquidity, profitability, and diversification.
  • Portfolio risk managed via position sizing and diversification.
  • Trades are reviewed at least monthly with potential for more frequent adjustments.

Trading and Risk Management Features

• Accounts: Segregated margin accounts with brokers, primarily Deutsche Bank, BofA, and Goldman Sachs.
• Leverage and Positioning: No restrictions on leverage; risk controlled via simulations and position sizing models.
• Operational Approach:
  • Decisions to trade or reduce positions involve human discretion, used rarely and mainly for risk mitigation.
  • Strategies include diversification, margin limits (5-35%), and prohibition of pyramiding.

Revenue and Expenses (2024)

• Net Trading Gains: $8,017,797 (realized and unrealized gains)
• Fees and Expenses:
  • Brokerage and management fees: $2,343,383
  • Administrative expenses: $300,517
  • Custody and other expenses: $22,921
• Profit Share to General Partner: $139,030 (from trading profits)
• Interest Income: $6,058,055
• Net Income: $11,270,001

Customer and Stakeholder Information

• Number of Limited Partners: 277 as of December 31, 2024.
• Customer Base: Investors acquire interests primarily through selling agents or directly via the General Partner.

Management and Officers

• No employees or officers directly employed by the Partnership. Managed entirely by the General Partner.
• Principal Managers: Harvey Beker (Chairman), Gregg Buckbinder (President & COO), Steven Felsenthal (Chief Legal & Compliance), Grant Smith (Co-CEO & CIO), Ilon Wu (CFO), Michael Soss (Chief Investment Officer), Barry Goodman (Co-CEO & Director of Trading), among others.
• Control: The General Partner, a Delaware LLC, manages the partnership with no independent directors.

Legal and Regulatory Status

• Regulated by: Commodity Futures Trading Commission (CFTC), with registration as a CPO and CTA.
• Legal Proceedings: No pending legal actions.
• Internal Controls: Evaluated as effective; no material changes reported.

Key Financial Metrics

• No dividends or distributions; earnings are reinvested or retained.
• Trading results vary yearly, with significant gains in 2024 and losses in 2023.
• No securities are authorized under equity compensation plans.

Note: The provided summary only includes information explicitly given. No details on specific revenue, number of employees, or overall customer demographics beyond the number of investors (277) are provided.