Strong energy and European equity trades powered the managed futures vehicle to a sharp reversal in the first three months of 2026.

May 15, 2026

Trading Gains Drive Quarterly Turnaround

The LoCorr Futures Portfolio Fund, Limited Partnership posted a sharp turnaround in the first quarter of 2026, generating net income of $6.4 million and returns ranging from 9.10 percent to 9.85 percent across its five share classes. The performance marks a striking reversal from the same quarter a year earlier, when the fund lost $4.9 million and posted negative returns between 4.10 and 4.75 percent across share classes.

The Maryland-based limited partnership, which engages in speculative trading of futures and forward currency contracts through multiple professional trading advisors, saw total partners’ capital climb to $72.1 million as of March 31, 2026, up from $69.2 million at year-end 2025. The increase came despite continued redemption activity, with limited partners withdrawing nearly $3.5 million during the quarter against zero new subscriptions.

The fund generated $7.8 million in net realized gains on futures, options, swaps, and forward contracts during the quarter, a dramatic improvement from the $3.3 million realized loss in the comparable 2025 period. Energy trading proved especially profitable, with futures contracts in the sector contributing $3.2 million in realized gains. Metals trading added another $3.3 million in realized gains, though that figure was partially offset by $1.3 million in unrealized mark-to-market declines as positions adjusted.

Currency trading also contributed positively, generating $1.4 million in realized gains and additional unrealized gains. However, equity index futures and interest rate instruments produced modest losses for the quarter. Forward currency contracts added $293,000 in realized gains, and swap contracts contributed $159,000. The fund closed 79,112 futures contracts, 24,734 forward currency contracts, and 4,105 swap contracts during the three-month period.

Sector Positioning and Performance Contribution

The fund’s general partner, Steben & Company, disclosed detailed sector allocations as of quarter-end:

• Energy carried an 8 percent risk allocation with a long net position, contributing 4.21 percent to gross performance — by far the largest positive contributor.
• Metals, with a 21 percent risk allocation in a net short position, detracted 0.87 percent.
• Currencies, representing the largest risk allocation at 25 percent in a short U.S. dollar stance, detracted 0.20 percent.
• Equity indices, at 13 percent risk allocation with a net short position, detracted 3.17 percent from performance.
• Interest rates, at 18 percent risk allocation and net short, contributed a 0.79 percent loss.
• Agricultural commodities, with a 15 percent risk allocation in a net short position, detracted 0.09 percent.

Monthly Performance Tells the Story

January proved to be the strongest month, with the fund’s Class A units gaining 5.24 percent as metals reached new all-time highs and the Bloomberg Commodity Index surged 10.36 percent. The Federal Reserve held rates steady at 3.50 to 3.75 percent during a wait-and-see period, while the U.S. Dollar continued its decline. The fund benefited from gains in metals, currencies, and equities.

February delivered another strong month with Class A units gaining 5.02 percent. Geopolitical tensions in the Middle East and concerns about artificial intelligence valuations drove a rotation out of technology stocks and into cyclicals. Bond markets rallied as the Bloomberg U.S. Aggregate Bond Index rose 1.64 percent, while precious metals again reached record highs.

March brought a setback as equity markets dropped sharply with the S&P 500 falling nearly 5 percent amid escalating tensions related to the Iran conflict. The Bloomberg Commodity Index surged 11.5 percent, led by Brent crude jumping over 52 percent. Despite these dramatic commodity moves, the fund lost between 1.06 and 1.29 percent across share classes as losses in equities, metals, interest rates, currencies, and agricultural commodities outweighed energy gains.

Currency Reversal Proves Challenging

The general partner noted that the sharp reversal in currency markets from the fourth quarter of 2025 created the largest losses for the fund during the first quarter. As the U.S. Dollar weakened and its safe-haven status came into question following tariff policy uncertainty, the fund’s long dollar and short foreign currency positioning was hurt. The largest losses came from European currencies, particularly short positions in the Euro, with additional damage from short positions in the Swedish Krona, British Pound, Japanese Yen, and Australian Dollar.

Equity trading proved profitable overall, led by gains in U.S. and European markets. Long U.S. positions early in the year benefited from continued post-election rally momentum, while strong gains in European indices including the Euro Stoxx 50 and FTSE Index contributed meaningfully. Asian markets produced a slight drag on performance.

In commodities, precious metals stood out as long gold positions proved highly profitable as the metal repeatedly established all-time highs. Energy trading was unprofitable overall, with losses in power, carbon emissions, and heating oil only partially offset by gains from long natural gas positions.

Asset Composition and Investment Portfolio

At quarter-end, the fund held $35.8 million in fixed-income securities, including U.S. Treasury bonds, U.S. and foreign commercial paper, corporate notes, and asset-backed securities. The securities portfolio represented 49.67 percent of partners’ capital. Notable holdings included U.S. Treasury bonds maturing in 2026 and 2028, corporate notes from issuers such as PNC Bank, State Street, AT&T, Oracle, and Salesforce, and asset-backed securities from automotive and credit card trusts.

The fund also maintained $2.0 million in a private investment company through the Galaxy Plus Managed Account Platform, which improved slightly from its $1.9 million valuation at year-end 2025 but remained significantly below its $4.2 million cost basis. The exchange membership in the Chicago Mercantile Exchange was valued at $170,000. Total assets rose to $74.6 million from $70.5 million at the end of 2025, while liabilities increased modestly to $2.5 million, largely due to a doubling of redemptions payable to $2.0 million.

Continued Outflows Despite Strong Performance

Despite the strong quarterly performance, redemption activity continued. The fund’s Class A unit count declined from 12,279 to 11,499 units during the quarter, with smaller reductions in Class B and Class R units. Class A2 and Class I unit counts remained unchanged. Subsequent to quarter-end, the fund noted an additional $1.2 million in redemptions with no new contributions.

The principal of the general partner held approximately 14 Class B units valued at $96,665 at quarter-end, up from $88,204 at year-end 2025, reflecting the strong quarterly performance.

Expense Structure Remains Significant

Total expenses for the quarter were just under $1.0 million, down from $1.2 million in the first quarter of 2025 reflecting the smaller asset base. The fund’s annualized net total expense ratios ranged from 3.18 percent for Class I units to 6.02 percent for Class A units. Trading advisor management fees totaled $257,000, and the general partner received $278,000 in management fees during the quarter. Selling agent fees came to $238,000.

The general partner owed the fund $64,500 under the 1 percent allocation provision, reflecting the quarter’s profitability, compared to a receivable of $49,500 in the prior-year quarter when the fund posted losses. As referenced in prior coverage of the fund’s 2025 annual results, the partnership had posted a nearly 10 percent loss for the full year 2025, making the strong start to 2026 a notable reversal in performance trajectory.

The fund continues to operate under the management of Steben & Company, with Kevin Kinzie serving as Chief Executive Officer and Jon Essen as Chief Financial Officer. The general partner remains a subsidiary of Octavus Group.