The managed futures fund saw heavy redemptions compound a difficult year of trading losses across currencies, energy, and rates.

March 26, 2026

Performance Deteriorates Sharply

The LoCorr Futures Portfolio Fund, a Maryland-based limited partnership that trades speculatively in global futures and forward currency markets, reported a net loss of $10.1 million for the fiscal year ended December 31, 2025. The result marked a sharp reversal from the modest $388,000 gain recorded in 2024. The fund’s flagship Class A units declined 9.87 percent for the year, while even the best-performing share class, Class I, fell 7.38 percent.

The results cap a difficult three-year stretch for the fund, which has now posted negative annual returns in two of the last three years. Class A units have declined in three of the past four calendar years, with only 2022 delivering a meaningful positive result when the fund gained roughly 8 percent during a period of elevated commodity and currency volatility.

Shrinking Asset Base

Perhaps more concerning than the performance shortfall is the accelerating erosion of the fund’s capital base. Total partners’ capital fell to approximately $69.2 million at year-end 2025, down from $108.1 million a year earlier and roughly $151.8 million at the end of 2022. The decline reflects both investment losses and substantial net redemptions. During 2025, limited partners withdrew nearly $28.8 million from the fund while new subscriptions totaled just $33,000.

The number of Class A unitholders stood at 660 as of late February 2026, while Class B had 353 holders and Class R had 62. Total assets dropped to $70.5 million from $109.7 million at the prior year-end, continuing a steady downward trajectory from nearly $179 million at the close of 2021.

Trading Losses Across Most Sectors

The fund generated a net trading loss of $9.5 million in 2025, compared to a $2.2 million trading gain in 2024. Monthly commentary from the fund’s general partner, Steben & Company, paints a picture of persistent challenges throughout the year. The first half proved especially difficult, with the fund posting losses in five of the first six months as tariff uncertainty, shifting Federal Reserve expectations, and geopolitical tensions — including a brief conflict between Iran and Israel — whipsawed markets.

Losses were concentrated in currencies, energy products, and interest rate instruments, while metals and equities provided occasional bright spots. The fund managed a modest recovery in the third quarter, gaining ground in July through September as metals rallied to all-time highs and equities continued their advance. However, the fourth quarter was mixed, with October and November losses nearly offsetting a positive December.

Expense Drag Compounds Challenges

The fund’s total expenses fell to $4.0 million from $7.0 million in 2024, largely reflecting the smaller asset base rather than any reduction in fee rates. However, the expense burden relative to assets remained substantial. Class A units bore an expense ratio of 5.39 percent of average net asset value, while even the institutional Class I units faced a 2.63 percent ratio. These costs include trading advisor management and incentive fees, general partner management fees, selling agent fees, administrative charges, and brokerage commissions.

Interest income provided some offset, totaling $3.4 million, though this was down significantly from $5.2 million in 2024 as the fund’s investable asset base contracted. The fund’s cash and fixed income holdings — including U.S. Treasury securities, commercial paper, corporate notes, and asset-backed securities — generated steady income but could not overcome the trading losses and fee burden.

Multi-Manager Structure Under Pressure

The fund employs a multi-manager approach, allocating assets among several professional trading advisors. As of late February 2026, Crabel Capital Management held the largest allocation at 33.4 percent, followed by Millburn Ridgefield Corporation at 17.5 percent and Graham Capital Management at 14.9 percent. Transtrend, R.G. Niederhoffer Capital Management, and East X rounded out the active allocations, while Fulcrum Asset Management held a zero percent allocation.

The general partner maintained a notional trading level of approximately $1.60 for every dollar of equity throughout 2025, meaning the fund’s effective market exposure exceeded its actual capital. While this leverage is designed to enhance returns, it also amplifies losses during difficult periods. The fund acknowledged in its risk disclosures that the multi-trader structure carries inherent disadvantages, including the possibility of paying incentive fees to profitable advisors even when the fund as a whole loses money.

Investment Portfolio and Market Positioning

At year-end, the fund’s securities portfolio was valued at approximately $34.5 million, consisting of U.S. Treasury bonds, commercial paper from issuers such as Brown-Forman and Intercontinental Exchange, corporate notes from companies including Bank of America and AT&T, and various asset-backed securities. The fund also held a $1.9 million investment in a private investment company through the Galaxy Plus Managed Account Platform, which had declined substantially from its $4.2 million cost basis.

Open futures positions at year-end showed notable concentration in metals, with long U.S. metals futures carrying $9.0 million in unrealized gains largely offset by $8.0 million in unrealized losses on short metals positions. Forward currency contracts showed a modest net unrealized gain of approximately $380,000.

Outlook and Governance

The fund noted that its positioning changes dynamically based on opportunities identified by its systematic trading programs, and that current positioning has shifted substantially from year-end levels. The general partner stated it intends to continue raising capital through unit sales and does not plan to borrow funds.

Steben & Company, led by Chief Executive Officer Kevin Kinzie and Chief Financial Officer Jon Essen, continues to manage all aspects of the fund’s operations. The firm is a wholly owned subsidiary of Octavus Group, which also operates the LoCorr family of alternative investment mutual funds. A principal of the general partner held approximately $88,000 in Class B units as of late February 2026, while no person or group owned more than five percent of the fund’s outstanding units. The fund’s financial statements were audited by RSM US LLP, which issued a clean opinion with no critical audit matters identified.