Related Party Transactions

12 Months Ended

Dec. 31, 2011


(3)	Related Party Transactions

A substantial amount of the Master Fund’s assets are held within the OPCA, a related party. For a discussion on the OPCA, refer to Note 5 in the attached Master Fund’s financial statements.

The Sponsor will receive a flat-rate monthly sponsor fee (the “Sponsor’s Fee”) of 0.042 of 1% (a 0.50% annual rate) of the Series’ Net Asset Value after deducting the Management Fee and accrued Performance Fee, if any, from the Series’ month-end net asset value for all other purposes, including interest income, of a Member’s investment in the Series for such month. The Sponsor reserves the right to waive or reduce the fee in its sole discretion.

The Series incurred Sponsor’s fees of $190,081 and $26,697 for the years ended December 31, 2011 and 2010, of which $8,523 and $5,299 is owed to the Sponsor at December 31, 2011 and 2010, respectively.

The Sponsor will receive a monthly service provider fee (the “Service Provider Fee”) equal to 0.025% of 1% (equivalent to an annual rate of approximately 0.30%) of the Net Asset Value of the Series and is reflected on the statements of operations as operating expenses. Operating costs paid for by the Sponsor out of the Service Provider Fee generally include: certain ongoing offering expenses; administrative, transfer, exchange and redemption processing costs; legal, regulatory, reporting, filing, tax, audit, escrow and accounting; the fees of the Master Fund’s directors; and any other operating or administrative expenses related to accounting, research, due diligence or reporting. The Service Provider Fee is charged at the Series level.

Operating costs not covered by the Service Provider Fee and paid for by the Series (including those allocated to the Series by the Master Fund) generally include: execution and clearing brokerage commissions; forward and other over-the-counter (“OTC”) trading spreads; bank wire fees; insurance; and extraordinary expenses such as litigation and indemnification.

The Series will bear all expenses incurred in connection with the organizational and initial offering of the Units at the Series level. For financial reporting purposes in conformity with GAAP, the Series expensed the organizational costs of $119,362 (“net asset value for financial reporting” or the “net asset value per Unit for financial reporting”). For all other purposes, including determining the net asset value per Unit for subscription and redemption purposes, the Series amortizes organizational and initial offering costs over a 60 month period (“net asset value for all other purposes” or the “net asset value per Unit for all other purposes”).

WC Diversified Series Net Asset Values

The quarterly net asset value and net asset value per Unit since commencement of operations are as follows:

B-2 Sub-series


	Net Asset Value						Net Asset Value per Unit

	All Other Purposes		Financial Reporting		Number of Units		All Other Purposes			Financial Reporting

Price at Commencement (January 1, 2010)							$	1,000.000		$	1,000.000
March 31, 2010	$	711,568	$	676,948		702.56		1,012.822			963.546
June 30, 2010		3,545,196		3,491,484		3,473.46		1,020.653			1,005.189
September 30, 2010		4,167,206		4,116,477		4,017.54		1,037.254			1,024.627
December 31, 2010		8,686,430		8,638,686		8,130.00		1,068.441			1,062.568
March 31, 2011		11,718,602		11,673,842		10,882.20		1,076.859			1,072.746
June 30, 2011		18,552,025		18,510,249		17,801.65		1,042.152			1,039.805
September 30, 2011		25,506,034		25,467,241		23,220.46		1,098.429			1,096.758
December 31, 2011		28,671,748		28,635,941		26,369.10		1,087.324			1,085.966

Total return after performance fee, from the commencement of operations through the year ended December 31, 2011								8.73	%		8.60	%

B-0 Sub-series


	Net Asset Value						Net Asset Value per Unit

	All Other Purposes		Financial Reporting		Number of Units		All Other Purposes			Financial Reporting

Price at Commencement (January 1, 2010)							$	1,000.000		$	1,000.000
March 31, 2010	$	204,747	$	170,129		201.42		1,016.543			844.668
June 30, 2010		1,552,311		1,498,597		1,514.35		1,025.067			989.597
September 30, 2010		3,449,930		3,399,202		3,299.18		1,045.693			1,030.317
December 31, 2010		7,609,887		7,562,143		7,030.08		1,082.475			1,075.684
March 31, 2011		14,437,218		14,392,458		13,168.12		1,096.377			1,092.977
June 30, 2011		21,259,372		21,217,596		19,929.06		1,066.753			1,064.656
September 30, 2011		33,859,556		33,820,763		29,987.57		1,129.120			1,127.826
December 31, 2011		39,815,854		39,780,045		35,445.16		1,123.309			1,122.299

Total return after performance fee, from the commencement of operations through the year ended December 31, 2011								12.33	%		12.23	%

AlphaMetrix360, LLC (“AlphaMetrix360”), an affiliate of the Sponsor, acquired the assets of Spectrum Global Fund Services, LLC (“Spectrum US”) as of December 9, 2010. The Sponsor has hired AlphaMetrix360 to provide administration services for the Series and Master Fund.

- Definition

The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(k))

-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Article 3A

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 57

-Paragraph 1-4

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 850

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Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

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Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 850

-SubTopic 10

-Section 50

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-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 850

-SubTopic 10

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-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39622-107864

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 850

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864

+ Details

AlphaMetrix Managed Futures III LLC 10-K