UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the quarter ended:		September 30, 2010

¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the transition period from				to


Commission File Number:		333-08869

KENMAR GLOBAL TRUST

(Exact name of registrant as specified in its charter)


Delaware		06-6429854
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


900 King Street, Suite 100, Rye Brook, New York		10573
(Address of principal executive offices)		(Zip Code)

(914) 307-7000

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ¨ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “accelerated filer”, “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer ¨		Accelerated filer ¨
Non-accelerated filer x		Smaller Reporting Company ¨

Indicate by check mark whether Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨ No x

KENMAR GLOBAL TRUST

INDEX TO QUARTERLY REPORT ON FORM 10-Q

SEPTEMBER 30, 2010


		Page

PART I – FINANCIAL INFORMATION			4

Item 1.	Financial Statements		5

	Kenmar Global Trust

	Condensed Statements of Financial Condition as of September 30, 2010 (Unaudited) and December 31, 2009		6

	Condensed Schedules of Investments as of September 30, 2010 (Unaudited) and December 31, 2009		7

	Condensed Statements of Operations (Unaudited) For the Three Months and Nine Months Ended September 30, 2010 and 2009		8

	Condensed Statements of Changes in Unitholders’ Capital (Unaudited) For the Nine Months Ended September 30, 2010 and 2009		9

	Notes to Condensed Financial Statements (Unaudited)		10

	KMP Futures Fund I LLC (formerly known as WCM Pool LLC)

	Condensed Statements of Financial Condition as of September 30, 2010 (Unaudited) and December 31, 2009		26

	Condensed Schedules of Investments as of September 30, 2010 (Unaudited) and December 31, 2009		27

	Condensed Statements of Operations (Unaudited) For the Three Months and Nine Months Ended September 30, 2010 and 2009		28

	Condensed Statements of Changes in Members’ Capital (Unaudited) For the Nine Months Ended September 30, 2010 and 2009		29

	Notes to Condensed Financial Statements (Unaudited)		30

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		43

Item 3.	Quantitative and Qualitative Disclosures About Market Risk		52

Item 4.	Controls and Procedures		52

PART II – OTHER INFORMATION			53

Item 1.	Legal Proceedings		53

Item 1.A.	Risk Factors		53

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		53

Item 3.	Defaults Upon Senior Securities		53

Item 5.	Other Information		53

Item 6.	Exhibits:		53

PART I – FINANCIAL INFORMATION

Item 1.

Financial Statements

KENMAR GLOBAL TRUST

CONDENSED FINANCIAL STATEMENTS

September 30, 2010

KENMAR GLOBAL TRUST

CONDENSED STATEMENTS OF FINANCIAL CONDITION

September 30, 2010 (Unaudited) and December 31, 2009


	September 30, 2010		December 31, 2009
ASSETS
Equity in broker trading accounts:
Cash (See Note 1)	$	1,768,596	$	1,548,812
Unrealized gain on open futures contracts, net		323,138		72,225

Total equity in broker trading accounts		2,091,734		1,621,037
Cash and cash equivalents		1,744,310		2,454,265
Interest receivable, net		1,585		1,226
Note receivable, Managing Owner		585,193		585,193
Unrealized gain on open forward currency contracts, net		0		6,328


Total assets	$	4,422,822	$	4,668,049


LIABILITIES
Unrealized loss on open forward currency contracts, net	$	20	$	0
Accounts payable and other		108,388		98,659
Managing Owner brokerage commissions and other transaction fees payable		31,147		37,210
Redemptions payable		24,430		91,171


Total liabilities		163,985		227,040


UNITHOLDERS’ CAPITAL (Net Asset Value)
Managing Owner – none and none Units outstanding at September 30, 2010 and December 31, 2009, respectively
Other Unitholders – 35,063.7709 and 36,868.1703 Units outstanding at September 30, 2010 and December 31, 2009, respectively		4,258,837		4,441,009


Total unitholders’ capital (Net Asset Value)		4,258,837		4,441,009


Total liabilities and unitholders’ capital	$	4,422,822	$	4,668,049

Net Asset Value per Other Unitholders Unit

See accompanying notes.

-2-

KENMAR GLOBAL TRUST

CONDENSED SCHEDULES OF INVESTMENTS

September 30, 2010 (Unaudited) and December 31, 2009


	September 30, 2010						December 31, 2009
	Net Unrealized Gain (Loss) as a % of Unitholders’ Capital			Net Unrealized Gain (Loss)			Net Unrealized Gain (Loss) as a % of Unitholders’ Capital			Net Unrealized Gain (Loss)
OPEN FUTURES CONTRACTS
OPEN LONG FUTURES CONTRACTS
Description

Commodities		0.74	%	$	31,312			0.38	%	$	16,964
Currency		0.76	%		32,438			(0.38	)%		(16,696	)
Energy		0.13	%		5,376			(0.07	)%		(3,297	)
Interest rates		0.89	%		38,025			(0.86	)%		(38,042	)
Metals		3.33	%		141,889			1.57	%		69,632
Stock index		0.65	%		27,846			0.84	%		37,382
Other		(0.01	)%		(314	)		0.00	%		0


Unrealized gain on open long futures contracts		6.49	%	$	276,572			1.48	%	$	65,943


OPEN SHORT FUTURES CONTRACTS
Description

Commodities		(0.02	)%	$	(817	)		(0.09	)%	$	(3,894	)
Currency		0.61	%		26,072			0.87	%		38,763
Energy		1.86	%		79,267			0.00	%		0
Interest rates		(0.01	)%		(474	)		0.27	%		12,135
Metals		(1.34	)%		(57,139	)		(1.02	)%		(45,602	)
Stock index		(0.01	)%		(343	)		0.10	%		4,350
Other		0.00	%		0			0.01	%		530


Unrealized gain on open short futures contracts		1.09	%	$	46,566			0.14	%	$	6,282


Unrealized gain on open futures contracts, net		7.58	%	$	323,138			1.62	%	$	72,225


OPEN FORWARD CURRENCY CONTRACTS

Description
Long forward currency contracts		0.00	%	$	(20	)		(0.16	)%	$	(7,146	)
Short forward currency contracts		0.00	%		0			0.30	%		13,474


Unrealized gain (loss) on open forward currency contracts, net		0.00	%	$	(20	)		0.14	%	$	6,328

See accompanying notes.

-3-

KENMAR GLOBAL TRUST

CONDENSED STATEMENTS OF OPERATIONS

For the Three Months and Nine Months Ended September 30, 2010 and 2009

(Unaudited)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
NET INCOME (LOSS) FROM TRUST OPERATIONS
TRADING GAINS (LOSSES)
Realized	$	45,216		$	(247,315	)	$	247,148		$	(252,868	)
Change in unrealized		269,599			85,753			244,565			(73,961	)
Brokerage commissions		(7,631	)		(9,188	)		(25,123	)		(24,616	)


Net gain (loss) from trading		307,184			(170,750	)		466,590			(351,445	)


NET INVESTMENT LOSS
INCOME
Interest income		4,980			4,545			15,037			14,895


EXPENSES
Managing Owner brokerage commissions		94,678			120,831			297,416			391,906
Operating expenses		49,991			60,642			153,481			159,380

Total expenses		144,669			181,473			450,897			551,286

Net investment loss		(139,689	)		(176,928	)		(435,860	)		(536,391	)

NET INCOME (LOSS) FROM TRUST OPERATIONS		167,495			(347,678	)		30,730			(887,836	)


NET LOSS ALLOCATED FROM KMP FUTURES FUND I LLC:
REVENUES
Realized		0			(3,155	)		0			(15,088	)
Change in unrealized		0			1,760			0			(8,259	)
Interest income		0			1			0			37

Total losses		0			(1,394	)		0			(23,310	)


EXPENSES
Brokerage commissions and other transaction fees		0			29			0			279
Advisor profit shares		0			0			0			201
Management fees		0			429			0			4,592
Operating expenses		0			242			0			1,949

Total expenses		0			700			0			7,021

NET LOSS ALLOCATED FROM KMP FUTURES FUND I LLC		0			(2,094	)		0			(30,331	)

NET INCOME (LOSS)	$	167,495		$	(349,772	)	$	30,730		$	(918,167	)

NET INCOME (LOSS) PER WEIGHTED AVERAGE UNITHOLDERS UNIT
Net income (loss) per weighted average
Unitholders Unit	$	4.75		$	(9.20	)	$	0.85		$	(23.86	)

Weighted average number of Unitholders Units outstanding		35,235			38,015			36,051			38,480

See accompanying notes.

-4-

KENMAR GLOBAL TRUST

CONDENSED STATEMENTS OF CHANGES IN UNITHOLDERS’ CAPITAL

For the Nine Months Ended September 30, 2010 and 2009

(Unaudited)


	Total Number of Units			Unitholders’ Capital
				Managing Owner			Other Unitholders			Total
				Managing Owner			Other Unitholders			Total
Nine Months Ended September 30, 2010

Balances at December 31, 2009		36,868.1703		$	0		$	4,441,009		$	4,441,009
Redemptions		(1,804.3994	)		0			(212,902	)		(212,902	)
Net income for the nine months ended September 30, 2010					0			30,730			30,730

Balances at September 30, 2010		35,063.7709		$	0		$	4,258,837		$	4,258,837


Nine Months Ended September 30, 2009

Balances at December 31, 2008		39,218.9799		$	64,598		$	6,057,357		$	6,121,955
Redemptions		(1,510.5630	)		(60,418	)		(154,001	)		(214,419	)
Net loss for the nine months ended September 30, 2009					(4,180	)		(913,987	)		(918,167	)

Balances at September 30, 2009		37,708.4169		$	0		$	4,989,369		$	4,989,369

See accompanying notes.

-5-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

Note 1.

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

General Description of the Fund

Kenmar Global Trust (the “Fund”) is a Delaware business trust. The Fund will terminate on December 31, 2026 unless terminated sooner as provided in the Fifth Amended and Restated Declaration of Trust and Trust Agreement (the “Trust Agreement”). The Fund is a multi-strategy commodity pool which trades in United States (“U.S.”) and foreign futures, options, forward currency and related markets. Since September 30, 2009, the Fund’s assets have been managed solely by Transtrend B.V. (“Transtrend”) as a managed account via their Diversified Trend Program.

Effective January 1, 2007, the Fund contributed a portion of its net assets to KMP Futures Fund I LLC (formerly known as WCM Pool LLC) (the “Company”) and received a voting membership interest in the Company. The Company was formed to function as an aggregate trading vehicle and engages in the speculative trading of futures, forward and option contracts. Effective September 30, 2009, the Fund fully redeemed its membership interest from the Company (See Note 9).

Effective May 5, 2009, Preferred Investment Solutions Corp. changed its name to Kenmar Preferred Investments Corp. (“Kenmar Preferred” or the “Managing Owner”). Kenmar Preferred or Managing Owner refers to either Preferred Investment Solutions Corp. or Kenmar Preferred Investments Corp., depending on the applicable period discussed. As the Fund’s Managing Owner, Kenmar Preferred conducts and manages the business of the Fund. Kenmar Preferred also had been delegated administrative authority over the operations of the Company. The financial statements of the Company, including the condensed schedules of investments, are included in Section II of these financial statements and should be read in conjunction with the Fund’s financial statements.

Should the Managing Owner make a determination that the Fund’s aggregate net assets in relation to its operating expenses make it unreasonable or imprudent to continue the business of the Fund, or, in exercise of its reasonable discretion, if the aggregate Net Asset Value of the fund as of the close of business on any business day declines below $250,000, the Managing Owner may dissolve the Fund.

Regulation

As a registrant with the Securities and Exchange Commission (“SEC”), the Fund is subject to the regulatory requirements under the Securities Act of 1933 and the Securities Exchange Act of 1934. As a commodity pool, the Fund is subject to the regulations of the Commodity Futures Trading Commission (“CFTC”), an independent agency of the U.S. government which regulates most aspects of the commodity futures industry; rules of the National Futures Association (“NFA”), an industry self-regulatory organization; and the requirements of the various commodity exchanges where the Fund and Company execute or executed transactions. Additionally, the Fund and Company are subject to the requirements of the Futures Commission Merchants and interbank market makers through which the Fund and Company trade or traded.

-6-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 1.

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Accounting

The condensed statements of financial condition, including the condensed schedules of investments, as of September 30, 2010, the condensed statements of operations for the three months ended September 30, 2010 (“Third Quarter 2010”), and for the nine months ended September 30, 2010 (“Year-To-Date 2010”) and for the three months ended September 30, 2009 (“Third Quarter 2009”) and for the nine months ended September 30, 2009 (“Year-To-Date 2009”), and the condensed statements of changes in unitholders’ capital for the Year-To-Date 2010 and Year-To-Date 2009, are unaudited. In the opinion of the Managing Owner, the condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the condensed statements of financial position of the Fund as of September 30, 2010 and the results of its operations for the Third Quarter 2010, Third Quarter 2009, Year-To-Date 2010 and Year-To-Date 2009. The operating results for these interim periods may not be indicative of the results expected for a full year.

Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted. It is suggested that these condensed financial statements be read in conjunction with the condensed financial statements and notes thereto included in the Fund’s annual report on Form 10-K filed with the SEC for the year ended December 31, 2009.

The condensed financial statements of the Fund are prepared in accordance with U.S. GAAP. Such principles require Kenmar Preferred to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Commodity futures and forward transactions are reflected in the accompanying condensed statements of financial condition on the trade date. Net unrealized gain or loss on open contracts (the difference between contract trade price and market price) is offset when reflected in the condensed financial statements since the contracts are executed with the same counter party under a master netting arrangement. The market value of each contract is based upon the closing quotation on the exchange, clearing firm or bank on, or through, which the contract is traded. Any change in net unrealized gain or loss during the current period is reported in the statement of operations. Realized gains and losses on commodity transactions are recognized in the period in which the contracts are closed. Brokerage commissions paid directly to brokers are reflected as “brokerage commissions” in the condensed statements of operations, include exchange and other trading fees, and are charged to expense when incurred.

The weighted average number of Units outstanding was computed for purposes of disclosing net income (loss) per weighted average Unit. The weighted average number of Units is equal to the number of Units outstanding during the period, adjusted proportionately for Units subscribed and redeemed based on their respective time outstanding during the period.

For the Third Quarter and Year-to-Date 2009, the Fund indirectly earned income or loss through its investment in the Company (See Note 5).

-7-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 1.

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Accounting (Continued)

The Fund has elected not to provide a condensed statements of cash flows since substantially all of the Fund’s investments are highly liquid and carried at fair value, the Fund has little or no debt and a condensed statements of changes in unitholders’ capital is provided.

Consistent with standard business practices in the normal course of business, the Fund has provided general indemnifications to the Managing Owner, its commodity trading advisors and others when they act, in good faith, in the best interests of the Fund. The Fund is unable to develop an estimate of the maximum potential amount of future payments that could potentially result from any hypothetical future claim, but expects the risk of having to make any payments under these general business indemnifications to be remote.

The Fund accounts for financial assets and liabilities using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels: quoted market prices in active markets for identical assets and liabilities (Level 1), inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly (Level 2), and unobservable inputs for the asset or liability (Level 3).

The Fund considers prices for exchange-traded commodity futures and options contracts to be based on quoted prices in active markets for identical assets (Level 1) and reflects the settlement price for each contract as of the close on the last business day of the reporting period. The market values of forward currency (non-exchange traded) contracts was extrapolated on a forward basis from the spot prices quoted as of 4:00 P.M. (EST) on the last business day of the reporting period obtained from third-party data providers such as Bloomberg and Interactive Data Corporation (Level 2). There are no Level 3 investments on September 30, 2010 or December 31, 2009.

The following table summarizes the assets and liabilities measured at fair value using the fair value hierarchy:


September 30, 2010	Level 1		Level 2			Level 3		Total
Assets:
Unrealized gain on open futures contracts, net	$	323,138	$	0		$	0	$	323,138

Liabilities:
Unrealized loss on open forward currency contracts, net	$	0	$	(20	)	$	0	$	(20	)

December 31, 2009	Level 1		Level 2			Level 3		Total
Assets:
Unrealized gain on open futures contracts, net	$	72,225	$	0		$	0	$	72,225
Unrealized gain on open forward currency contracts, net	$	0	$	6,328		$	0	$	6,328

-8-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 1.

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Recent Accounting Pronouncements

In January 2010, the FASB amended the existing disclosure guidance on fair value measurements, which was effective January 1, 2010, except for disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements, which is effective January 1, 2011. Among other things, the updated guidance requires additional disclosure for the amounts of significant transfers in and out of Level 1 and Level 2 measurements and requires certain Level 3 disclosures on a gross basis. Additionally, the updates amend existing guidance to require a greater level of disaggregated information and more robust disclosures about valuation techniques and inputs to fair value measurements. Since the amended guidance requires only additional disclosures, the adoption of the provisions effective January 1, 2011 will not impact the Fund’s financial position or results of operations. The implementation of this guidance, for the provisions effective January 1, 2010, did not have a material impact on the Fund’s financial statements.

Cash and Cash Equivalents

Cash represents amounts deposited with a bank and clearing brokers, a portion of which is restricted for purposes of meeting margin requirements, which typically range from 0% to 35% of the notional amounts of the derivatives traded. A substantial portion of the cash deposited with a bank is deposited in an off-shore sweep account facility daily. As of September 30, 2010 and December 31, 2009, restricted cash totaled $714,879 and $493,598, respectively. The Fund receives interest on all cash balances held by the bank and clearing brokers at prevailing rates. In addition, the Fund was allocated its pro-rata share of interest from the Company for the Third Quarter 2009 and Year-to-Date 2009.

Income Taxes

The Fund is treated as a partnership for U.S. federal income tax purposes. As such, the Fund is not required to provide for, or pay, any Federal or state income taxes. Income tax attributes that arise from its operations are passed directly to the individual Unitholders including the Managing Owner. The Fund may be subject to other state and local taxes in jurisdictions in which it operates.

The Fund recognizes tax benefits or expenses of uncertain tax positions in the year such determination is made when the positions are “more likely than not” to be sustained assuming examination by tax authorities. The Managing Owner has reviewed the Fund’s tax positions for all open years (after December 31, 2006) and concluded that no provision for unrecognized tax benefits or expense is required in these condensed financial statements. The Fund has elected an accounting policy to classify interest and penalties related to unrecognized tax benefits as interest or other expense. The 2006 through 2009 tax years generally remain subject to examination by U.S. federal and most state tax authorities.

-9-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 1.

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Investment in KMP Futures Fund I LLC

Through September 30, 2009, the investment in the Company was reported in the Fund’s condensed statements of financial condition at the Net Asset Value as reported by the Company, which the Managing Owner considered an appropriate estimate of fair value. The Fund recorded its proportionate share of the Company’s income or loss in the condensed statements of operations. Valuation of futures, forward and option contracts by the Company is discussed in the notes to the Company’s financial statements included in Section II of this report. Through its investment in the Company, the Fund paid its pro-rata share of the 2% annual management fee (accrued and paid monthly) and a 20% incentive fee on “New High Net Trading Profits” (accrued monthly and paid quarterly) as defined in the advisory agreement through September 30, 2009.

Profit and Loss Allocations, Distributions and Redemptions

The Fund allocates profits and losses for both financial and tax-reporting purposes to its Unitholders monthly on a pro rata basis based on each Unitholder’s number of Units outstanding during the month. Distributions (other than redemptions of Units) may be made at the sole discretion of the Managing Owner on a pro rata basis in accordance with the respective capital balances of the Unitholders. The Managing Owner has not made any distributions since inception and does not presently intend to make any distributions in the future.

Redemptions are permitted as of the last day of each month, on at least 10 days prior written notice. Redemptions are at the then current Net Asset Value per Unit. Partial redemptions are permitted.

Foreign Currency Transactions

The Fund’s functional currency is the U.S. dollar; however, it transacts business in currencies other than the U.S. dollar. Assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the rates in effect at the date of the condensed statements of financial condition. Income and expense items denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the rates in effect during the period. Gains and losses resulting from the translation to U.S. dollars are reported in the condensed statements of operations under the caption realized.

Interest Income

Interest income is recorded on an accrual basis.

Redemptions Payable

For purposes of both financial reporting and calculation of redemption value, Net Asset Value per Unit is calculated by dividing Net Asset Value by the number of outstanding Unitholders’ Units.

-10-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 2.

MANAGING OWNER

The Managing Owner conducts and manages the business of the Fund. Effective December 1, 2008, the Trust Agreement no longer requires the Managing Owner to maintain a capital account equal to 1% of the total capital accounts of the Fund. As such, the Managing Owner redeemed all its Units in the Fund in 2009.

The Managing Owner is paid monthly brokerage commissions (“Managing Owner Brokerage Commissions”) equal to 1/12 of 10% (10% annually) of the Fund’s beginning of month Net Asset Value on the first $25 million of Net Asset Value and 1/12 of 9% (9% annually) of the Fund’s beginning of month Net Asset Value in excess of $25 million. The Managing Owner, in turn, pays substantially all actual costs of executing the Fund’s trades, selling commissions and trailing commissions to selling agents, and fees to the commodity trading advisors. Managing Owner Brokerage Commissions are reduced by brokerage commissions and other trading fees paid directly to brokers by the Fund, as well as management fees allocated from the Company. Excluded from the Managing Owner Brokerage Commissions are the Transtrend or Company incentive fee payments.

The Managing Owner is paid an incentive fee equal to 5% of “New Overall Appreciation” (which is defined in the Trust Agreement and excludes interest income) as of each fiscal year-end and upon redemption of Units. The Managing Owner earned no incentive fees during the Third Quarter 2010 and 2009 and Year-to-Date 2010 and 2009.

Note 3.

RELATED PARTIES

The Fund reimburses the Managing Owner for services it performs for the Fund, which include, but are not limited to: management, accounting, registrar, legal, transfer and assignment functions, investor communications, printing, and other administrative services.

The expenses incurred by the Fund for services performed by the Managing Owner for the Fund were:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
Commissions	$	94,678	$	120,831	$	297,416	$	391,906
General and administrative		17,085		14,842		47,864		37,082

Total	$	111,763	$	135,673	$	345,280	$	428,988

Expenses payable to the Managing Owner and its affiliates (which are included in accounts payable and other and Managing Owner brokerage commissions and other transaction fees payable on the condensed statements of financial condition) as of September 30, 2010 and December 31, 2009 were $40,695 and $42,818, respectively.

-11-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 3.

RELATED PARTIES (CONTINUED)

On September 24, 2007, the Fund and the Managing Owner entered into a Purchase Agreement (the “Purchase Agreement”), effective as of August 10, 2007, whereby the Managing Owner acquired all the Fund’s rights, title and interest to the Investment Advisory Agreement (“Advisory Agreement”) dated February 11, 2004, by and between the Fund and Sentinel Management Group, Inc. (“Sentinel”), an SEC-registered investment adviser and a CFTC-registered futures commission merchant, and to the Fund’s right, title and interest to the Fund’s deposits in an account (the “Account”) managed by Sentinel, including the Fund’s rights to the funds in the Account, including all claims related thereto against Sentinel (the “Asset”). The purchase price for the Asset was $1,685,193 (the “Purchase Price”), which represented the recorded value of the Fund’s deposit in the Account as reported to the Fund by Sentinel at the close of business on August 10, 2007, the business day immediately preceding the day on which withdrawals from the Account were suspended by Sentinel. The payment of the Purchase Price by the Managing Owner to the Fund was paid by a secured Demand Promissory Note (the “Note”) made by the Managing Owner in favor of the Fund. The interest rate on the Note is the Wall Street Journal Prime Rate (3.25% at September 30, 2010) and resets monthly. Interest is payable monthly no later than the first business day of the subsequent month. The Note was secured by a Security Agreement whereby the Managing Owner granted the Fund a first priority interest in the Asset to secure payment of the Note.

On June 23, 2008, the Managing Owner sold the Asset to an unrelated third party and applied the proceeds of the sale of the Asset to pay down a portion of the Note. As part of that transaction, the Fund and the Managing Owner entered into a Release and Setoff Agreement whereby (i) the Fund released its security interest in the Asset and any appreciation and (ii) the Managing Owner agreed that in the event the Fund demands payment of all amounts outstanding under the Note and the Managing Owner fails to pay such amount, the Fund shall have the right to set off such amount outstanding under the Note against any and all amounts due and owing then and in the future to the Managing Owner by the Fund under the Fund’s Trust Agreement, including, without limitation, the Incentive Fee (as defined in the Trust Agreement) and the net portion of any brokerage commissions after payment of related expenses until all amounts outstanding under the Note are paid in full and all other obligations have been paid or discharged.

Through September 30, 2008, the Managing Owner paid the Fund principal of $1,100,000 on the Note. No additional payments have been received from the Managing Owner through September 30, 2010, leaving $585,193 of note receivable from the Managing Owner which is reflected on the September 30, 2010 condensed statement of financial condition. Interest receivable from the Managing Owner on the Note as of September 30, 2010 was $1,585.

Prior to February 23, 2009, any portion of the principal amount which was not demanded by the Fund prior to
August 31, 2009, would be due and payable by the Managing Owner, with all accrued and unpaid interest thereon, on August 31, 2009.

On February 23, 2009, the Managing Owner and the Fund agreed to modify the terms of the Note such that the portion of the principal amount of the Note which has not been demanded by the Fund prior to August 31, 2010 shall be due and payable by the Managing Owner along with all accrued and unpaid interest on August 31, 2010, unless the Managing Owner and the Fund agree to a further extension of the Note.

-12-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 3.

RELATED PARTIES (CONTINUED)

Effective April 30, 2010, the Managing Owner and the Fund agreed to modify the terms of the Note, such that fifty percent (50%) of the outstanding principal amount of the Note, along with all accrued and unpaid interest therein, shall be due and payable by the Managing Owner on December 31, 2010 and fifty percent (50%) of the outstanding principal amount of the Note, along with all accrued and unpaid interest therein, shall be due and payable by the Managing Owner on December 31, 2011(See Note 9).

In addition, the Fund and Kenmar Preferred (the “Pledgor”) entered into a pledge agreement dated April 30, 2010 whereby Kenmar Preferred pledged to the Fund, and granted the Fund a continuing security interest in, all right, title, claim and interest of the Pledgor in and to (a) the management fee payable by World Monitor Trust III Series J to Kenmar Preferred pursuant to Section 4.9 of the Second Amended and Restated Declaration of Trust and Trust Agreement of World Monitor Trust III Series J, dated March 31, 2010 (the “WMT-III Management Fee”) and (b) all rights, powers and privileges of Kenmar Preferred under or with respect to the WMT-III Management Fee.

No default has existed or currently exists on the note receivable from the Managing Owner. If a default existed, the note receivable from the Managing Owner in the amount of $585,193 would be offset by $24,279 of brokerage commissions payable to the Managing Owner as of September 30, 2010.

Note 4.

COMMODITY TRADING ADVISORS

The Fund has or had advisory agreements with various commodity trading advisors pursuant to which the Fund pays quarterly profit shares of 20% of Trading Profit (as defined in each respective advisory agreement). For the nine months ended September 30, 2010 and 2009, incentive fees earned by various commodity trading advisors totaled $0 and $201, respectively, of which $0 and $0 was payable at September 30, 2010 and 2009.

Note 5.

INVESTMENT IN THE COMPANY

Effective January 1, 2007, the Fund invested a portion of its assets in the Company. The Fund fully redeemed its assets from the Company as of September 30, 2009. The investment in the Company was subject to the Organization Agreement of the Company.

Summarized information for the Fund’s investment in the Company is as follows:


	Net Asset Value December 31, 2008		Loss*			Redemptions			Net Asset Value September 30, 2009
KMP Futures Fund I LLC	$	638,493	$	(30,331	)	$	(608,162	)	$	0

Earnings include $(8,259) for the nine months ended September 30, 2009, attributable to the change in unrealized losses.

-13-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 6.

SUBSCRIPTIONS, DISTRIBUTIONS AND REDEMPTIONS

Investments in Units were made by subscription agreement, subject to acceptance by the Managing Owner. As of February 28, 2006, the Managing Owner suspended additional contributions to the Fund. A Unitholder may request and receive redemption of Units owned, subject to restrictions in the Trust Agreement. The Fund is not required to make distributions, but may do so at the sole discretion of the Managing Owner. The Managing Owner has not made and does not presently intend to make any distributions.

Note 7.

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS

The fair value of the Fund’s derivatives by instrument type, as well as the location of those instruments on the condensed statements of financial condition as of September 30, 2010 and December 31, 2009 are included in the condensed schedule of investments, all of which are deemed derivatives not designated as hedging instruments.

The following presents the fair value of derivative contracts at September 30, 2010 and December 31, 2009. The fair value of derivative contracts is presented as an asset if in a gain position and a liability if in a loss position. Fair value is presented on a gross basis in the table below even though the derivative contracts qualify for net presentation in the statement of financial condition.


	September 30, 2010
Description	Assets		Liabilities			Net
Futures contracts	$	431,410	$	(108,272	)	$	323,138
Forward contracts		0		(20	)		(20	)

Total gross fair value of derivatives	$	431,410	$	(108,292	)	$	323,118


	December 31, 2009
Description	Assets		Liabilities			Net
Futures contracts	$	202,245	$	(130,020	)	$	72,225
Forward contracts		14,170		(7,842	)		6,328

Total gross fair value of derivatives	$	216,415	$	(137,862	)	$	78,553

-14-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 7.

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS (CONTINUED)

The trading revenue of the Fund’s derivatives by instrument type, as well as the location of those gains and losses on the condensed statements of operations, for the Third Quarter 2010 and 2009 and Year-to-Date 2010 and 2009 is as follows:


	Trading Revenue Third Quarter 2010			Trading Revenue Third Quarter 2009*			Trading Revenue Year-to-Date 2010			Trading Revenue Year-to-Date 2009*
Type of Instrument
Commodities Contracts	$	20,724		$	(12,739	)	$	(39,126	)	$	(49,414	)
Currencies Contracts		26,517			1,857			117,428			76,703
Energy Contracts		62,174			(206,344	)		(6,455	)		(227,937	)
Equity Contracts		807			144			3,323			144
Interest Rate Contracts		107,445			(67,635	)		485,426			(197,686	)
Metals Contracts		71,625			10,139			88,747			(51,029	)
Stock Indices Contracts		9,266			82,059			(150,693	)		87,610
Other Contracts		(3,963	)		1,095			(9,735	)		(2,750	)
Forward Currency Contracts		20,220			29,862			2,798			37,530


Total	$	314,815		$	(161,562	)	$	491,713		$	(326,829	)


Line item in Condensed Statements of Operations
Realized	$	45,216		$	(247,315	)	$	247,148		$	(252,868	)
Change in unrealized		269,599			85,753			244,565			(73,961	)

Total	$	314,815		$	(161,562	)	$	491,713		$	(326,829	)

Excludes income from the Company.

For the Third Quarter and Year-to-Date 2010, the total number of closed futures contracts was approximately 952 and 3,544 respectively, and the average monthly notional value of forwards contracts closed was approximately $5,092,695 and $5,926,412, respectively.

For the Third Quarter and Year-to-Date 2009, the total number of closed futures contracts was approximately 1,228 and 3,410 respectively, and the average monthly notional value of forwards contracts closed was approximately $7,399,605 and $5,281,404, respectively.

The average monthly notional value of contracts closed represents the average monthly U.S. dollar notional value of future and forward contracts closed and settled in cash during the Third Quarter 2010 and 2009 and Year-to-Date 2010 and 2009.

-15-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 7.

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS (CONTINUED)

Prior to the Fund’s full redemption from the Company on September 30, 2009, the Fund’s investment in the Company was subject to the market and credit risks of the futures contracts, options on futures contracts, forward currency contracts and other financial instruments held or sold short by the Company. The Fund bore the risk of loss only to the extent of the market value of its investments and, in certain specific circumstances, distributions and redemptions received in respect to the Fund’s investment in the Company.

In addition, the Fund has cash on deposit with financial institutions and in broker trading accounts. In the event of a financial institution’s insolvency, recovery of cash on deposit may be limited to account insurance or other protection afforded such deposits. The Managing Owner has established procedures to actively monitor market risk and minimize credit risk, although there can be no assurance that it will, in fact, succeed in doing so. The Unitholders bear the risk of loss only to the extent of the market value of their respective investments and, in certain specific circumstances, distributions and redemptions received.

The Fund is also exposed to various types of risks associated with the derivative instruments and related markets in which it directly invests. These risks include, but are not limited to, risk of loss from fluctuations in the value of derivative instruments held (market risk) and the inability of counterparties to perform under the terms of the Fund’s investment activities (credit risk).

Market Risk

Trading in futures and forward contracts (including foreign exchange) involves entering into contractual commitments to purchase or sell a particular commodity at a specified date and price. The gross or face amount of the contracts, which is typically many times that of the Fund’s net assets being traded, significantly exceeds the Fund’s future cash requirements since the Fund intends to close out its open positions prior to settlement. As a result, the Fund is generally subject only to the risk of loss arising from the change in the value of the contracts. As such, the Fund considers the fair value of its derivative instruments to be the net unrealized gain or loss on the contracts. The market risk associated with the Fund’s commitments to purchase commodities is limited to the gross or face amount of the contracts held. However, when the Fund enters into a contractual commitment to sell commodities, it must make delivery of the underlying commodity at the contract price and then repurchase the contracts at prevailing market prices or settle in cash. Since the repurchase price to which a commodity can rise is unlimited, entering into commitments to sell commodities exposes the Fund to unlimited risk.

Market risk is influenced by a wide variety of factors, including government programs and policies, political and economic events, the level and volatility of interest rates, foreign currency exchange rates, the diversification effect among the derivative instruments the Fund holds and the liquidity and inherent volatility of the markets in which the Fund trades.

-16-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 7.

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS (CONTINUED)

Credit Risk

When entering into futures or forward contracts (including foreign exchange), the Fund is exposed to credit risk that the counterparty to the contract will not meet its obligations. The counterparty for futures contracts traded on U.S. and most foreign futures exchanges is the clearinghouse associated with the particular exchange. In general, clearinghouses are backed by their corporate members who are required to share any financial burden resulting from the non-performance by one of their members and, as such, should significantly reduce this credit risk. In cases where the clearinghouse is not backed by the clearing members (i.e., some foreign exchanges), it is normally backed by a consortium of banks or other financial institutions. On the other hand, there is concentration risk on forward transactions, entered into by the Fund as the Fund’s interbank market maker, is the sole counterparty. The Fund has entered into a master netting agreement with its interbank market maker and, as a result, when applicable, presents unrealized gains and losses on open forward positions as a net amount in the condensed statements of financial condition.

The amount at risk associated with counterparty non-performance of all of the Fund’s contracts is the net unrealized gain (loss) included in the condensed statements of financial condition; however, counterparty non-performance on only certain of the Fund’s contracts may result in greater loss than non-performance on all of the Fund’s contracts. There can be no assurance that any counterparty, clearing member or clearinghouse will meet its obligations to the Fund.

The Managing Owner attempts to minimize both credit and market risks by requiring the Fund and the Company to abide by various trading limitations and policies. The Managing Owner monitors compliance with these trading limitations and policies, which include, but are not limited to, executing and clearing all trades with creditworthy counterparties; limiting the amount of margin or premium required for any one commodity or all commodities combined; and generally limiting transactions to contracts which are traded in sufficient volume to permit the taking and liquidating of positions.

The Fund’s futures commission merchant, in accepting orders for the purchase or sale of domestic futures contracts, is required by CFTC regulations to separately account for and segregate as belonging to the Fund all assets of the Fund relating to domestic futures trading and is not allowed to commingle such assets with its other assets. At September 30, 2010 and December 31, 2009, such segregated assets totaled $1,878,269 and $1,521,992, respectively. Part 30.7 of the CFTC regulations also requires the Fund’s futures commission merchant to secure assets of the Fund related to foreign futures trading which totaled $213,465 and $99,045 at September 30, 2010 and December 31, 2009, respectively. There are no segregation requirements for assets related to forward trading.

As of September 30, 2010, all of the Fund’s open futures contracts mature within thirty-six months.

-17-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 8.

FINANCIAL HIGHLIGHTS

The following information presents per Unit operating performance data and other supplemental financial data for the three months and nine months ended September 30, 2010 and 2009. This information has been derived from information presented in the condensed financial statements.


	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Per Unit Performance (for an Unit outstanding throughout the entire period)

Net asset value per Unit at beginning of period	$	116.70		$	141.46		$	120.46		$	156.10


Income (loss) from operations:⁽⁵⁾
Gain (loss) from trading⁽¹⁾		8.94			(4.24	)		13.79			(9.03	)
Net investment loss^(1),^{(6), (7)}		(4.18	)		(4.91	)		(12.79	)		(14.76	)


Total income (loss) from operations		4.76			(9.15	)		1.00			(23.79	)


Net asset value per Unit at end of period	$	121.46		$	132.31		$	121.46		$	132.31


Total Return⁽²⁾		4.08	%		(6.47	)%		0.83	%		(15.24	)%


Supplemental Data

Ratios to average net asset value:⁽⁵⁾
Expenses prior to incentive fees⁽³⁾		14.74			14.83	%		14.77			13.99	%
Incentive fees^(2),⁽⁶⁾		0.00	%		0.00	%		0.00	%		0.00	%


Total expenses		14.74	%		14.83	%		14.77	%		13.99	%


Net investment loss^(3),⁽⁴⁾		(14.26	)%		(14.48	)%		(14.30	)%		(13.63	)%

Total returns are calculated based on the change in value of a Unit during the period. An individual Unitholder’s total returns and ratios may vary from the above total returns and ratios based on the timing of redemptions.

⁽¹⁾

The net investment loss per Unit is calculated by dividing the net investment loss by the weighted average number of Units outstanding during the period. The gain (loss) from trading is a balancing amount necessary to reconcile the change in net asset value per Unit with the other per Unit information.

⁽²⁾

Not annualized.

⁽³⁾

Annualized.

⁽⁴⁾

Represents interest income less total expenses (exclusive of incentive fees).

⁽⁵⁾

Includes the Fund’s proportionate share of income and expenses from KMP Futures Fund I LLC, for the periods ending September 30, 2009.

⁽⁶⁾

Incentive fees include advisor profit shares and Managing Owner incentive fees, if applicable.

⁽⁷⁾

Represents interest income less total expenses (inclusive of incentive fees).

-18-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 9.

SUBSEQUENT EVENTS

From October 1, 2010 through November 12, 2010, there were redemptions of $13,223.

On October 29, 2010, the Managing Owner completed payment of all amounts owed by it to the Fund pursuant to the Note dated September 24, 2007 and effective as of August 10, 2007, as amended on February 23, 2009 and April 30, 2010.

Effective November 30, 2010, the Fund will terminate its managed account with Transtrend and will contribute all of its assets into the Company, for which Winton Capital Management Limited (“Winton”), pursuant to its Diversified Program, and Graham Capital Management, L.P. (“Graham”), pursuant to its K4D-15V Program, will serve as the trading advisors.

-19-

SECTION II

KMP FUTURES FUND I LLC

CONDENSED FINANCIAL STATEMENTS

September 30, 2010

KMP FUTURES FUND I LLC

CONDENSED STATEMENTS OF FINANCIAL CONDITION

September 30, 2010 (Unaudited) and December 31, 2009


	September 30, 2010		December 31, 2009
ASSETS
Cash and cash equivalents (See Note 2)	$	32,595,469	$	23,723,816
Interest receivable				54
Commodity options owned, at fair value (premiums paid $145 and $300 at September 30, 2010 and December 31, 2009, respectively)		70		60
Net unrealized gain on open forward contracts		263,865		0
Net unrealized gain on open futures contracts		973,926		105,410


Total assets	$	33,833,330	$	23,829,340


LIABILITIES
Commodity options written, at fair value (premiums received $280 and $600 at September 30, 2010 and December 31, 2009, respectively)	$	155	$	120
Accrued expenses payable		142,965		135,558
Management fees payable		56,267		39,943
Redemptions payable (Includes $11,861,650 and $23,047,803 at September 30, 2010 and December 31, 2009 to be converted to individual memberships)		12,135,398		23,653,719


Total liabilities		12,334,785		23,829,340


MEMBERS’ CAPITAL (Net Asset Value)		21,498,545		0

Total liabilities and members’ capital	$	33,833,330	$	23,829,340

See accompanying notes.

-2-

KMP FUTURES FUND I LLC

CONDENSED SCHEDULES OF INVESTMENTS

September 30, 2010 (Unaudited) and December 31, 2009


	September 30, 2010						December 31, 2009
	Net Unrealized Gain (Loss) as a % of Members’ Capital*			Net Unrealized Gain (Loss)			Net Unrealized Gain (Loss) as a % of Members’ Capital*			Net Unrealized Gain (Loss)
Futures and Forward Contracts
Futures contracts purchased:
Commodities		1.55	%	$	521,637			0.54	%	$	127,366
Currencies		0.87	%		290,326			(0.36	)%		(85,037	)
Energies		0.65	%		216,347			0.00	%		0
Interest rates		1.10	%		369,860			0.01	%		1,441
Stock indices		(0.11	)%		(38,136	)		0.50	%		119,001

Net unrealized gain on futures contracts purchased		4.06	%		1,360,034			0.69	%		162,771


Futures contracts sold:
Commodities		(0.31	)%		(104,069	)		(0.23	)%		(53,262	)
Currencies		(0.18	)%		(59,120	)		(0.02	)%		(4,080	)
Energies		(0.66	)%		(222,522	)		0.00	%		0
Interest rates		0.00	%		(678	)		0.00	%		1,120
Stock indices		0.00	%		281			0.00	%		(1,139	)


Net unrealized loss on futures contracts sold		(1.15	)%		(386,108	)		(0.25	)%		(57,361	)


Net unrealized gain on open futures contracts		2.91	%	$	973,926			0.44	%	$	105,410

Forward currency contracts purchased:
Net unrealized gain on forward contracts purchased		1.23	%	$	411,706			0.00	%	$	0

Forward currency contracts sold:
Net unrealized loss on forward contracts sold		(0.44	)%		(147,841	)		0.00	%		0

Net unrealized gain on forward contracts		0.79	%	$	263,865			0.00	%	$	0


	Fair Value as a % of Members’ Capital			Fair Value			Fair Value as a % of Members’ Capital*			Fair Value
Purchased Options on Futures Contracts:
Fair value of options purchased		0.00	%	$	70			0.00	%	$	60

Commodity options owned, at fair value (premiums paid $145 and $300 at September 30, 2010 and December 31, 2009, respectively)		0.00	%	$	70			0.00	%	$	60

Written Options on Futures Contracts:
Fair value of options written		0.00	%	$	(155	)		0.00	%	$	(120	)

Commodity options written, at fair value (premiums received $280 and $600 at September 30, 2010 and December 31, 2009, respectively)		0.00	%	$	(155	)		0.00	%	$	(120	)

*	Includes redemptions payable at September 30, 2010 and December 31, 2009.

See accompanying notes.

-3-

KMP FUTURES FUND I LLC

CONDENSED STATEMENTS OF OPERATIONS

For the Three Months and Nine Months Ended September 30, 2010 and 2009

(Unaudited)


	Three Months Ended September 30,					Nine Months Ended September 30,
	2010		2009			2010		2009
REVENUES
Realized	$	147,630	$	(298,788	)	$	1,679,542	$	(2,338,026	)
Change in unrealized		971,525		718,100			1,132,191		548,976
Interest income		4,408		247			8,038		1,343


Total revenues (losses)		1,123,563		419,559			2,819,771		(1,787,707	)


EXPENSES
Brokerage commissions fees		22,922		9,690			40,925		26,197
Management fees		322,793		0			994,843		0
Trading Advisor management fees		168,062		132,821			394,110		366,619
Incentive fees		0		0			0		593
Operating expenses		87,675		86,303			294,967		174,604


Total expenses		601,452		228,814			1,724,845		568,013


General and administrative expenses refunded to the Managing Owner and affiliates		57,279		0			0		0


Net expenses		658,731		228,814			1,724,845		568,013


NET INCOME (LOSS)	$	464,832	$	190,745		$	1,094,926	$	(2,355,720	)

See accompanying notes.

-4-

KMP FUTURES FUND I LLC

CONDENSED STATEMENTS OF CHANGES IN MEMBERS’ CAPITAL (NET ASSET VALUE)

For the Nine Months Ended September 30, 2010 and 2009

(Unaudited)


	Individuals’ Capital			Series E			Total
Nine months ended September 30, 2010

Members’ capital at December 31, 2009	$	0		$	0		$	0

Additions		23,047,803			12,170,845			35,218,648

Redemptions		(2,335,465	)		(12,479,564	)		(14,815,029	)

Net income for the nine months ended September 30, 2010		786,207			308,719			1,094,926


Members’ capital at September 30, 2010	$	21,498,545		$	0		$	21,498,545


	Members’ Capital
	Member DFT I			Member KGT			Member FST			Member Series D			Member Series F			Total
Nine months ended September 30, 2009

Balances at December 31, 2008	$	11,561,900		$	638,493		$	3,929,018		$	0		$	0		$	16,129,411

Additions		0			0			0			4,887,000			14,195,000			19,082,000

Redemptions		(1,642,785	)		(608,162	)		(739,578	)		(1,107,422	)		(3,738,809	)		(7,836,756	)

Net loss for the nine months ended September 30, 2009		(850,419	)		(30,331	)		(285,574	)		(311,847	)		(877,549	)		(2,355,720	)


Balances at September 30, 2009	$	9,068,696		$	0		$	2,903,866		$	3,467,731		$	9,578,642		$	25,018,935

See accompanying notes.

-5-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

Note 1.

ORGANIZATION

General Description of the Company

KMP Futures Fund I LLC, formerly known as WCM Pool LLC (the “Company”) is a limited liability company organized under the laws of Delaware on November 20, 2006 which commenced operations on January 1, 2007. The Company will terminate on December 31, 2056 unless terminated sooner under the provisions of the Organization Agreement. The Company was formed to engage in the speculative trading of a diversified portfolio of futures contracts, options on futures contracts and forward currency contracts and may, from time to time, engage in cash and spot transactions. The fiscal year end of the Company is December 31.

Effective May 5, 2009, Preferred Investment Solutions Corp. changed its name to Kenmar Preferred Investments Corp. (“Kenmar Preferred” or “Managing Member”). Kenmar Preferred refers to either Preferred Investment Solutions Corp. or Kenmar Preferred Investments Corp., depending on the applicable period discussed. Kenmar Preferred is the managing owner of each of the Company’s members, is the Managing Member of the Company, and has been delegated administrative authority over the operations of the Company.

As of January 1, 2009, the Company consisted of three members: Diversified Futures Trust I (“Member DFT I”) Futures Strategic Trust (“Member FST”), and Kenmar Global Trust (“Member KGT”). On April 1, 2009 World Monitor Trust II Series D (“Member Series D”) and World Monitor Trust II Series F (“Member Series F”) received a voting membership interest in the Company. Member DFT I, Member FST, Member KGT, Member Series D, Member Series F, are collectively (the “Members”). Effective September 30, 2009, Member KGT fully redeemed from the Company.

On November 2, 2009, pursuant to each Member’s Trust Agreement, the managing owner of the Members determined to dissolve the Members effective close of business on December 31, 2009. Kenmar Preferred also converted the Company from an aggregated trading vehicle to a direct investment vehicle and filed with the Securities Exchange Commission (“SEC”) to register the Company. Investors in the Members who elected not to redeem their Interest at December 31, 2009 received a pro rata distribution of their Interest in the Company on December 31, 2009 and replaced it with a direct ownership Interest in the Company beginning January 1, 2010. Each Member filed with the SEC on January 5, 2010 to de-register its Interests under Section 12(g) of the Securities Exchange Act of 1934. The Members were no longer subject to the reporting requirements of the SEC and Commodity Futures Trading Commission (“CFTC”) upon their dissolution on December 31, 2009.

On July 1, 2010, World Monitor Trust II Series E (“Series E”) contributed all of its assets into the Company and received a voting membership interest. On July 30, 2010, pursuant to Section 13.1(h) of the Trust Agreement, the Board of Directors of Kenmar Preferred, in its capacity as managing owner of Series E, determined to dissolve Series E effective as of the close of business on September 30, 2010 (date of termination). Investors in Series E who elect not to redeem as of September 30, 2010 (date of termination) will receive a pro rata distribution of their interest in Series E on September 30, 2010 and replace it with a direct ownership interest in the Company on October 1, 2010.

Effective November 12, 2009, the Company became a reporting company pursuant to the Securities Exchange Act of 1934. Moreover, as a commodity pool, the Company became subject to the record keeping and reporting requirements of the CFTC and the National Futures Association (“NFA”).

-6-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 1.

ORGANIZATION (CONTINUED)

The Trading Advisors

The Company operates under an advisory agreement with Winton Capital Management Limited (“Winton”), pursuant to its Diversified Program. Beginning July 1, 2010 the Company entered into a second Trading Advisor Agreement with Graham Capital Management, L.P. (“Graham”), pursuant to its K4D-15V Program (collectively with Winton and Graham, the “Trading Advisors”). Beginning July 1, 2010, the Company allocated approximately one-half of its net assets to each Trading Advisor’s managed account (collectively, the “Managed Accounts”) with such allocations to be re-balanced quarterly.

Note 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The condensed statements of financial condition, including the condensed schedules of investments, as of September 30, 2010, the condensed statements of operations for the three months ended September 30, 2010 (“Third Quarter 2010”), and for the nine months ended September 30, 2010 (“Year-To-Date 2010”) and for the three months ended September 30, 2009 (“Third Quarter 2009”) and for the nine months ended September 30, 2009 (“Year-To-Date 2009”), and the condensed statements of changes in members’ capital for the Year-To-Date 2010 and Year-To-Date 2009, are unaudited. In the opinion of the Managing Member, the condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial position of the Company as of September 30, 2010 and the results of its operations for the Third Quarter 2010, Third Quarter 2009, Year-To-Date 2010 and Year-To-Date 2009. The operating results for these interim periods may not be indicative of the results expected for a full year.

The condensed financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Such principles require Kenmar Preferred to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with a U.S. GAAP have been omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s annual report on Form 10-K filed with the SEC for the year ended December 31, 2009.

Commodity futures and foreign exchange transactions are reflected in the accompanying condensed statements of financial condition on the trade date. Net unrealized gain or loss on open contracts (the difference between contract trade price and market price) are offset when reflected in the condensed financial statements since the contracts are executed with the same counterparty under a master netting arrangement. The market value of futures (exchange-traded) contracts is based upon the closing quotation on the various futures exchanges on which the contract is traded. The values which will be used by the Company for open forward and option positions will be provided by its administrator, who obtains market quotes from independent data vendors and third parties.

-7-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Accounting (Continued)

Any change in net unrealized gain or loss during the current period is reported in the condensed statements of operations. Realized gains and losses on transactions are recognized in the period in which the contracts are closed. Brokerage commissions include other trading fees and are charged to expense when incurred.

The Company has elected not to provide a statement of cash flows since substantially all of the Company’s investments are highly liquid and carried at fair value, the Company has little or no debt and a condensed statement of changes in members’ capital (net asset value) is provided.

Consistent with standard business practices in the normal course of business, the Company has provided general indemnifications to Kenmar Preferred, its Trading Advisor’s and others when they act, in good faith, in the best interests of the Company. The Company is unable to develop an estimate of the maximum potential amount of future payments that could potentially result from any hypothetical future claim, but expects the risk of having to make any payments under these general business indemnifications to be remote.

The Company accounts for financial assets and liabilities using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels: quoted market prices in active markets for identical assets and liabilities (Level 1), inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly (Level 2), and unobservable inputs for the asset or liability (Level 3).

The Company considers prices for exchange traded commodity futures and options contracts to be based on quoted prices in active markets for identical assets (Level 1) and reflects the settlement price for each contract as of the close on the last business day of the reporting period. The values of forwards, swaps and certain options contracts for which market quotations are not readily available are priced by third-party data providers such as Bloomberg, Reuters, and or Super Derivatives who derive fair values for those assets from models with observable inputs (Level 2).

The market values of forward currency (non-exchange traded) contracts (Level 2) was extrapolated on a forward basis from the spot prices quoted as of 4:00 P.M. (EST) on the last business day of the reporting period from third party data providers i.e. Bloomberg and Interactive Data Corporation (Level 2).

The market value of option (non-exchange traded) (Level 2) contracts is calculated by applying an industry-standard adaptation of the Black-Scholes options valuation model to foreign currency options, using as input, the spot prices, interest rates and option implied volatilities quoted as of 4:00 P.M. (EST) on the last business day of the reporting period from its independent third-party data provider, Super Derivates. Any change in net unrealized gain or loss from the preceding period is reported in the condensed statements of operations. When the Company writes an option, an amount equal to the premium received by the Company is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of option written.

There are no Level 3 investments on September 30, 2010 or December 31, 2009.

-8-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Accounting (Continued)

The following table summarizes the assets and liabilities measured at fair value using the fair value hierarchy:


September 30, 2010	Level 1		Level 2			Level 3		Total
Assets:
Net unrealized gain on open futures contracts	$	973,926	$	0		$	0	$	973,926
Net unrealized gain on open forward contracts	$	0	$	263,865		$	0	$	263,865
Commodity options owned, at fair value	$	0	$	70		$	0	$	70

Liabilities:
Commodity options written, at fair value	$	0	$	(155	)	$	0	$	(155	)

December 31, 2009	Level 1		Level 2			Level 3		Total
Assets:
Net unrealized gain on open futures contracts	$	105,410	$	0		$	0	$	105,410
Commodity options owned, at fair value	$	0	$	60		$	0	$	60

Liabilities:
Commodity options written, at fair value	$	0	$	(120	)	$	0	$	(120	)

Recent Accounting Pronouncements

In January 2010, the FASB amended the existing disclosure guidance on fair value measurements, which was effective January 1, 2010, except for disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements, which is effective January 1, 2011. Among other things, the updated guidance requires additional disclosure for the amounts of significant transfers in and out of Level 1 and Level 2 measurements and requires certain Level 3 disclosures on a gross basis. Additionally, the updates amend existing guidance to require a greater level of disaggregated information and more robust disclosures about valuation techniques and inputs to fair value measurements. Since the amended guidance requires only additional disclosures, the adoption of the provisions effective January 1, 2011 will not impact the Company’s financial position or results of operations. The implementation of this guidance, for the provisions effective January 1, 2010, did not have a material impact on the Company’s financial statements.

Cash and Cash Equivalents

Cash represents amounts deposited with a bank and clearing broker, a portion of which is restricted for purposes of meeting margin requirements, which typically range from 0% to 35% of the notional amounts of the derivatives traded. A substantial portion of the cash deposited with a bank is deposited in an off-shore sweep account facility daily. As of September 30, 2010 and December 31, 2009, restricted cash totaled $3,673,422 and $1,628,359, respectively. The Company receives interest at prevailing interest rates on all cash balances held by the clearing broker and bank.

-9-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Income Taxes

The Company is treated as a partnership for U.S. federal income tax purposes. As such, the Company is not required to provide for, or pay, any U.S. federal or state income taxes. Income tax attributes that arise from its operations are passed directly to the Members. The Company may be subject to other state and local taxes in jurisdictions in which it operates.

The Company recognizes tax benefits or expenses of uncertain tax positions in the year such determination is made when the positions are “more likely than not” to be sustained assuming examination by tax authorities. The Managing Member has reviewed the Company’s tax positions for all open years (after December 31, 2006) and concluded that no provision for unrecognized tax benefits or expense is required in these condensed financial statements. The Company has elected an accounting policy to classify interest and penalties related to unrecognized tax benefits as interest or other expense. The 2006 through 2009 tax years generally remain subject to examination by U.S. federal and most state tax authorities.

There have been no differences between the tax basis and book basis of assets, liabilities or members’ capital since inception of the Company.

Capital Accounts

The Company accounts for subscriptions, allocations and redemptions on a per Member capital account basis.

The Company allocates profits and losses, prior to calculation of the incentive fee, for both financial and tax reporting purposes to its Members monthly on a pro rata basis based on each Member’s pro rata capital in the Company during the month. Each Member is then charged with the applicable incentive fee. Distributions (other than redemptions of capital) may be made at the sole discretion of the Managing Member on a pro rata basis in accordance with the Members’ respective capital balances. The Managing Member has not and does not presently intend to make any distributions.

Foreign Currency Transactions

The Company’s functional currency is the U.S. dollar; however, it transacts business in currencies other than the U.S. dollar. Assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the rates in effect at the date of the condensed statements of financial condition. Income and expense items denominated in currencies other than U.S. dollars are translated into U.S. dollars at the rates in effect during the period. Gains and losses resulting from the translation to U.S. dollars are reported in the condensed statements of operations under the caption realized.

Interest Income

Interest income is recorded on an accrual basis.

-10-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Redemptions Payable

For purposes of both financial reporting and calculation of redemption value, Net Asset Value is calculated per each Member’s capital account balance after allocations of net income (loss) to such Member’s account.

Note 3.

FEES

Operating Expenses

Operating expenses of the Company are paid for by the Company, subject to an expense cap of 1.5% of the Company’s Net Asset Value per annum. Operating expenses include legal, accounting, registrar, transfer and assignment functions, investor communications, printing, and other administrative services.

Management and Incentive Fees

The Company pays Winton and Graham monthly management fees at an annual rate of 2% and 2% respectively, of their Managed Accounts’ allocated assets as defined in their respective Advisory Agreements. Additionally, the Company pays Winton and Graham an incentive fee accrued monthly and paid quarterly of 20% and 22%, respectively, for achieving “New High Net Trading Profits” in their specific Managed Accounts as defined in their respective Advisory Agreements. No incentive fees were earned during Third Quarter 2010, Third Quarter 2009 and Year-To-Date 2010. Incentive fees of $593 were earned during Year-To-Date 2009 (See Note 9).

Effective January 1, 2010, the Company’s management fees to Kenmar Preferred (previously administrative services fees paid to the Members) and expense cap are both calculated on the Net Assets of the Company at rates of 6.00% and 1.50% per annum, respectively, with the fee being waived for Series E from July 1 to September 30, 2010. Investors continue to be able to redeem their capital on a monthly basis with the proper redemption notification.

Commissions

The Company is obligated to pay all floor brokerage expenses, give-up charges and NFA clearing and exchange fees incurred in connection with the Company’s commodity trading activities.

Note 4.

RELATED PARTIES

The Company reimburses Kenmar Preferred for services it performs for the Company, which include, but are not limited to: management, legal, accounting, registrar, transfer and assignment functions, investor communications, printing, and other administrative services.

-11-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 4.

RELATED PARTIES (CONTINUED)

The expenses incurred by the Company for services performed by Kenmar Preferred for the Company were:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
Management	$	322,793	$	0	$	994,843	$	0
General and administrative (operating expense)		30,090		25,847		88,758		42,927


Total		352,883		25,847		1,083,601		42,927

General and administrative expenses refunded to the Managing Member and its affiliates		57,279		0		0		0


Total	$	410,162	$	25,847	$	1,083,601	$	42,927

Expenses payable to Kenmar Preferred and its affiliates (which are included in accrued expenses payable on the condensed statements of financial condition) as of September 30, 2010 and December 31, 2009 were $33,101 and $28,601, respectively.

Note 5.

DEPOSITS WITH COMMODITY BROKER, PRIME BROKER AND BANK

The Company deposits funds with a commodity broker subject to CFTC regulations and various exchange and commodity broker requirements. Margin requirements are satisfied by the deposit of cash with such commodity broker.

The Company also deposits funds with a prime broker. Margin requirements are satisfied by the deposit of cash with such prime broker.

Note 6.

SUBSCRIPTIONS, DISTRIBUTIONS AND REDEMPTIONS

Investments in the Company are made subject to the terms of the Organization Agreement.

A Member is able to request and receive redemption of capital, subject to the terms in the Organization Agreement.

Note 7.

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS

The fair value of the Company’s derivatives by instrument type, as well as the location of those instruments on the condensed statements of financial condition as of September 30, 2010 and December 31, 2009 are included in the condensed schedules of investments, all of which are deemed derivatives not designated as hedging instruments.

-12-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 7.

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS (CONTINUED)


	September 30, 2010
Description	Assets		Liabilities			Net
Futures contracts	$	1,754,532	$	(780,606	)	$	973,926
Forward Contracts		1,141,704		(877,839	)		263,865
Option Contracts		70		(155	)		(85	)


Total gross fair value of derivatives	$	2,896,306	$	(1,658,600	)	$	1,237,706


	December 31, 2009
Description	Assets		Liabilities			Net
Futures contracts	$	445,592	$	(340,182	)	$	105,410
Option Contracts		60		(120	)		(60	)


Total gross fair value of derivatives	$	445,652	$	(340,302	)	$	105,350

The trading revenue of the Company’s derivatives by instrument type, as well as the location of those gains and losses on the condensed statements of operations, for the Third Quarter 2010 and 2009 and Year-To-Date 2010 and 2009 is as follows:


	Trading Revenue for the
Type of Instrument	Third Quarter 2010			Third Quarter 2009			Year-To-Date 2010			Year-To-Date 2009
Commodities Contracts	$	57,960		$	(33,666	)	$	10,447		$	(475,133	)
Currencies Contracts		33,963			392,924			806,349			(179,824	)
Interest Rate Contracts		1,232,530			474,744			2,715,920			(365,674	)
Stock Indices Contracts		(441,053	)		(416,824	)		(958,823	)		(771,190	)
Purchased Options on Futures Contracts		(1,310	)		(2,058	)		(3,630	)		(2,558	)
Written Options on Futures Contracts		2,730			4,192			7,135			5,330
Forward Currency Contracts		234,335			0			234,335			0


Total	$	1,119,155		$	419,312		$	2,811,733		$	(1,789,049	)


Line item in Condensed Statements of Operations
Realized	$	147,630		$	(298,788	)	$	1,679,542		$	(2,338,026	)
Change in unrealized		971,525			718,100			1,132,191			(548,977	)


Total	$	1,119,155		$	419,312		$	2,811,733		$	(1,789,049	)

-13-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 7.

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS (CONTINUED)

For the Third Quarter and Year-to-Date 2010, the total number of closed futures contracts was approximately 7,105 and 10,284, and the total number of closed option contracts was approximately 6 and 28, and the average monthly notional value of forwards contracts closed was approximately $286,724,221 and $95,574,740, respectively.

For the Third Quarter and Year-to-Date 2009, the total number of closed futures contracts was approximately 1,570 and 4,201 respectively, and the total number of closed option contracts was approximately 6 and 8, respectively.

The average monthly notional value of contracts closed represents the average monthly U.S. dollar notional value of future and options contracts closed and settled in cash during the Third Quarter 2010 and 2009 and Year to Date 2010 and 2009.

The Company has cash on deposit with financial institutions. In the event of a financial institution’s insolvency, recovery of cash on deposit may be limited to account insurance or other protection afforded such deposits.

The Company is exposed to various types of risks associated with the derivative instruments and related markets in which it invests. These risks include, but are not limited to, risk of loss from fluctuations in the value of derivative instruments held (market risk) and the inability of counterparties to perform under the terms of the Company’s investment activities (credit risk).

Market Risk

Trading in futures and forward contracts (including foreign exchange) involves entering into contractual commitments to purchase or sell a particular commodity at a specified date and price. The gross or face amount of the contracts, which is typically many times that of the Company’s net assets being traded, significantly exceeds the Company’s future cash requirements since the Company intends to close out its open positions prior to settlement. As a result, the Company is generally subject only to the risk of loss arising from the change in the value of the contracts. As such, the Company considers the “fair value” of its derivative instruments to be the net unrealized gain or loss on the contracts. Market risk is influenced by a wide variety of factors, including government programs and policies, political and economic events, the level and volatility of interest rates, foreign currency exchange rates, the diversification effect among the derivative instruments the Company holds and the liquidity and inherent volatility of the markets in which the Company trades.

-14-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 7.

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS (CONTINUED)

Credit Risk

When entering into futures, forward and option contracts, the Company is exposed to credit risk that the counterparty to the contract will not meet its obligations. The counterparty for futures contracts traded on United States and most foreign futures exchanges is the clearinghouse associated with the particular exchange. In general, clearinghouses are backed by its corporate members who are required to share any financial burden resulting from the non-performance by one of their members and, as such, should significantly reduce this credit risk. In cases where the clearinghouse is not backed by the clearing members (i.e., some foreign exchanges), it is normally backed by a consortium of banks or other financial institutions. On the other hand, there is concentration risk on forward transactions entered into by the Company, as the Company’s forward broker is the sole counterparty. The Company has entered into a master netting agreement with its forward broker and, as a result, when applicable, presents unrealized gains and losses on open forward positions as a net amount in the condensed statements of financial condition. The amount at risk associated with counterparty non-performance of all of the Company’s contracts is the net unrealized gain or loss included in the condensed statements of financial condition; however, counterparty non-performance on only certain of the Company’s contracts may result in greater loss than non-performance on all of the Company’s contracts. There can be no assurance that any counterparty, clearing member or clearinghouse will meet its obligations to the Company.

Kenmar Preferred attempts to minimize both credit and market risks by requiring the Company and its Trading Advisors to abide by various trading limitations and policies. Kenmar Preferred monitors compliance with these trading limitations and policies, which include, but are not limited to, executing and clearing all trades with creditworthy counterparties; limiting the amount of margin or premium required for any one commodity or all commodities combined; and generally limiting transactions to contracts which are traded in sufficient volume to permit the taking and liquidating of positions.

Additionally, pursuant to the Advisory Agreement among the Company, Kenmar Preferred and the Trading Advisors, the Company shall automatically terminate the Trading Agreement, if the Net Asset Value allocated to the Trading Advisors declines by 40% from the value at the beginning of any year or since the effective date of the Advisory Agreement. The decline in Net Asset Value is after giving effect for distributions, subscriptions and redemptions.

The Company’s futures commission merchant, in accepting orders for the purchase or sale of domestic futures contracts, is required by CFTC regulations to separately account for and segregate as belonging to the Company all assets of the Company relating to domestic futures trading and is not allowed to commingle such assets with its other assets. At September 30, 2010 and December 31, 2009, such segregated assets totaled $6,848,182 and $19,213,546, respectively, which are included in cash and cash equivalents on the condensed statements of financial condition. Part 30.7 of the CFTC regulations also requires the Company’s futures commission merchant to secure assets of the Company related to foreign futures trading which totaled $2,459 and $163,718 at September 30, 2010 and December 31, 2009, respectively. There are no segregation requirements for assets related to forward trading.

As of September 30, 2010, all open futures contracts mature within forty-five months.

-15-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 8.

FINANCIAL HIGHLIGHTS

The following information presents the financial highlights of the Company for the three months and nine months ended September 30, 2010 and 2009. This information has been derived from information presented in the condensed financial statements.


	Three Months Ended September 30, 2010						Nine Months Ended September 30, 2010
	Individual			Series E⁽⁵⁾			Individual			Series E⁽⁵⁾
Total Return:^(1),⁽⁴⁾
Total return before incentive fees		0.78	%		2.57	%		3.65	%		2.57	%
Incentive fees		0.00	%		0.00	%		0.00	%		0.00	%

Total return after incentive fees		0.78	%		2.57	%		3.65	%		2.57	%

Ratios to average net asset value:
Expenses prior to incentive fee⁽²⁾		10.40	%		3.32	%		9.83	%		3.32	%
Incentive fees⁽¹⁾		0.00	%		0.00	%		0.00	%		0.00	%

Total expenses and incentive fee		10.40	%		3.32	%		9.83	%		3.32	%

Net investment loss^(2),⁽³⁾		(10.35	)%		(3.27	)%		(9.79	)%		(3.27	)%

Total returns are calculated based on the change in value of Members’ capital during the period. An individual Member’s total returns and ratios may vary from the above total returns and ratios based on the timing of additions and redemptions.

⁽¹⁾

Not annualized.

⁽²⁾

Annualized.

⁽³⁾

Represents interest income less total expenses (exclusive of incentive fee).

⁽⁴⁾

Includes realized and unrealized gains (losses) on securities transactions.

⁽⁵⁾

Series E contributed its net assets to the Company effective July 1, 2010.

-16-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 8.

FINANCIAL HIGHLIGHTS (CONTINUED)


	Three Months Ended September 30, 2009 (Unaudited)															Nine Months Ended September 30, 2009 (Unaudited)
	Member DFT I			Member KGT⁽⁶⁾			Member FST			Member Series D			Member Series F			Member DFT I			Member KGT⁽⁶⁾			Member FST			Member Series D⁽⁵⁾			Member Series F⁽⁵⁾
Total return:^(1),⁽⁴⁾
Total return before incentive fee		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%		(7.78	)%		(7.78	)%		(7.78	)%		(6.27	)%		(6.27	)%
Incentive fee		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.01	%		0.01	%		0.01	%		0.00	%		0.00	%

Total return after incentive fee		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%		(7.77	)%		(7.77	)%		(7.77	)%		(6.27	)%		(6.27	)%

Ratios to average net asset values:
Expenses prior to incentive fee⁽²⁾		3.51	%		4.10	%		3.53	%		3.53	%		3.54	%		3.12	%		3.27	%		3.13	%		3.18	%		3.18	%
Incentive fee⁽¹⁾		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.07	%		0.01	%		0.00	%		0.00	%


Total expenses and incentive fee		3.51	%		4.10	%		3.53	%		3.53	%		3.54	%		3.12	%		3.34	%		3.14	%		3.18	%		3.18	%


Net investment loss^(2),⁽³⁾		(3.51	)%		(4.09	)%		(3.52	)%		(3.52	)%		(3.54	)%		(3.11	)%		(3.26	)%		(3.12	)%		(3.18	)%		(3.18	)%

⁽¹⁾	Not annualized.

⁽²⁾	Annualized.

⁽³⁾	Represents interest income less total expenses (exclusive of incentive fee).

⁽⁴⁾	Includes realized and unrealized gains (losses) on securities transactions.

⁽⁵⁾	Member Series D and Member Series F contributed their net assets to the Company effective April 1, 2009.

⁽⁶⁾	Member KGT redeemed all of its membership interest in the Company as of September 30, 2009.

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KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 9.

SUBSEQUENT EVENTS

From October 1, 2010 through November 12, 2010, there were subscriptions, inclusive of the direct ownership interest of Series E’s interestholders, and redemptions of $11,861,650 and $259,160, respectively.

Effective October 1, 2010 the Company entered into an amendment to change the management and incentive fee charged to its trading advisors. The Company will pay Graham and Winton monthly management fees at the annual rate of 2.0% and 1.5% respectively, of their Managed Accounts’ allocated assets as defined in the amendment to their respective Advisory Agreements. Additionally, effective October 1, 2010 the Company will pay Graham and Winton an incentive fee accrued monthly and paid quarterly of 20% and 20% respectively, for achieving “New High Net Trading Profits” in their specific Managed Accounts as defined in the amendment to their respective Advisory Agreements.

The Managing Member has determined that it is in the best interest of the Company to invest a portion of non-margin assets, either directly or indirectly through certain investment funds, in (i) U.S. government securities (which include any security issued or guaranteed as to principal or interest by the United States), (ii) any certificate of deposit for any of the foregoing, including U.S. treasury bonds, U.S. treasury bills and issues of agencies of the United States government, or (iii) corporate bonds or notes.

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Item 2.

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

This report on Form 10-Q (the “Report”) for the quarter ending September 30, 2010 (“Third Quarter 2010”) includes forward-looking statements that reflect the current expectations of Kenmar Preferred Investments Corp., the managing owner of Kenmar Global Trust (“Registrant”), about the future results, performance, prospects and opportunities of Registrant. The Managing Owner has tried to identify these forward-looking statements by using words such as “may,” “will,” “expect,” “anticipate,” “believe,” “intend,” “should,” “estimate” or the negative of those terms or similar expressions. These forward-looking statements are based on information currently available to the Managing Owner and are subject to a number of risks, uncertainties and other factors, both known, such as those described in this Report, and unknown, that could cause Registrant’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.

You should not place undue reliance on any forward-looking statements. Except as expressly required by the Federal securities laws, the Managing Owner undertakes no obligation to publicly update or revise any forward-looking statements or the risks, uncertainties or other factors described in this Report, as a result of new information, future events or changed circumstances or for any other reason after the date of this Report.

Introduction

General

Registrant, a Delaware business trust, was organized under the Delaware Statutory Trust Act on July 17, 1996. Registrant’s trustee is Wilmington Trust Company. Registrant will terminate on December 31, 2026 unless terminated sooner as provided in the Fifth Amended and Restated Declaration of Trust and Trust Agreement (the “Trust Agreement”). Registrant’s fiscal year for book and tax purposes ends on December 31.

Registrant is engaged solely in the business of commodity futures, forwards and option trading; therefore, presentation of industry segment information is not applicable.

Managing Owner and its Affiliates

Effective December 1, 2008, in accordance with the Trust Agreement, the Managing Owner is no longer required to maintain a capital account equal to 1% of the total capital accounts of the Registrant. As such, the Managing Owner redeemed its entire interest in the Registrant in 2009.

On September 24, 2007, the Registrant and the Managing Owner entered into a Purchase Agreement (the “Purchase Agreement”), effective as of August 10, 2007, whereby the Managing Owner acquired all the Registrant’s rights, title and interest to the Investment Advisory Agreement (“Advisory Agreement”) dated February 11, 2004, by and between the Registrant and Sentinel Management Group, Inc. (“Sentinel”), an SEC-registered investment adviser and a CFTC-registered futures commission merchant, and to the Registrant’s right, title and interest to the Registrant’s deposits in an account (the “Account”) managed by Sentinel, including the Registrant’s rights to the funds in the Account, including all claims related thereto against Sentinel (the “Asset”). The purchase price for the Asset was $1,685,193 (the “Purchase Price”), which represented the recorded value of the Registrant’s deposit in the Account as reported to the Registrant by Sentinel at the close of business on August 10, 2007, the business day immediately preceding the day on which withdrawals from the Account were suspended by Sentinel. The payment of the Purchase Price by the Managing Owner to the Registrant was paid by a secured Demand Promissory Note (the “Note”) made by the Managing Owner in favor of the Registrant. The interest rate on the Note is the Wall Street Journal Prime Rate 3.25% at September 30, 2010 and resets monthly. Interest is payable monthly no later than the first business day of the subsequent month. The Note was secured by a Security Agreement whereby the Managing Owner granted the Registrant a first priority interest in the Asset to secure payment of the Note.

Owner fails to pay such amount, the Registrant shall have the right to set off such amount demanded under the Note against any and all amounts due and owing then and in the future to the Managing Owner by the Registrant under the Registrant’s Trust Agreement, including, without limitation, the incentive fee (as defined in the Trust Agreement) and the net portion of any brokerage commissions after payment of related expenses until all amounts outstanding under the Note are paid in full and all other obligations have been paid or discharged.

Registrant entered into Amendment No. 2 dated April 30, 2010 to its Note with Kenmar Preferred to reflect that (i) fifty percent (50%) of the outstanding principal amount of the Note, along with all accrued and unpaid interest thereon, will be due and payable by Kenmar Preferred on December 31, 2010; and (ii) fifty percent (50%) of the outstanding principal amount of the Note, along with all accrued and unpaid interest thereon, will be due and payable by Kenmar Preferred on December 31, 2011.

In addition, Registrant and Kenmar Preferred entered into a Pledge Agreement dated April 30, 2010 whereby Kenmar Preferred pledged to Registrant, and granted Registrant a continuing security interest in, all right, title, claim and interest of the Kenmar Preferred in and to (a) the management fee payable by World Monitor Trust III - Series J to Kenmar Preferred pursuant to Section 4.9 of the Second Amended and Restated Declaration of Trust and Trust Agreement of World Monitor Trust III - Series J, dated March 31, 2010 (the “WMT-III Management Fee”) and (b) all rights, powers and privileges of Kenmar Preferred under or with respect to the WMT-III Management Fee.

Through September 30, 2010, the Managing Owner paid the Registrant principal of $1,100,000 on the Note, leaving $585,193 of note receivable from the Managing Owner which is reflected on the Registrant’s September 30, 2010 statement of financial condition. Interest receivable from the Managing Owner on the Note as of September 30, 2010 was $1,585.

On October 29, 2010, the Managing Owner completed payment of all amounts owed by it to the Registrant pursuant to the Note dated September 24, 2007 and effective as of August 10, 2007, as amended on February 23, 2009 and April 30, 2010.

The Trading Advisor and the Trading Vehicle

Through Third Quarter 2010, Registrant’s net assets were managed by Transtrend, B.V. (“Transtrend”).

Pursuant to an advisory agreement (the “Transtrend Advisory Agreement”) among Registrant, the Managing Owner and Transtrend, Registrant’s net assets are managed by Transtrend pursuant to its Diversified Trend Program.

Effective January 1, 2007, Registrant became a member of and allocated a portion of its net assets to KMP Futures Fund I LLC (formerly known as WCM Pool LLC) (the “Trading Vehicle”), a Delaware limited liability company, and received a voting membership interest in the Trading Vehicle and became party to the Trading Vehicle’s Organization Agreement. The Trading Vehicle was formed to function as an aggregate trading vehicle for its Members. Kenmar Preferred has been delegated administrative authority over the operations of the Trading Vehicle. The Trading Vehicle engages in the speculative trading of futures, forward and option contracts. The Trading Vehicle has entered into an advisory agreement (the “Trading Vehicle Advisory Agreement”) with Winton Capital Management Limited (“Winton”), whereby Winton makes the trading decisions for the Trading Vehicle and, in turn, Registrant, pursuant to Winton’s Diversified Program. Effective September 30, 2009, Registrant fully redeemed from the Trading Vehicle. The financial statements of the Trading Vehicle, including the condensed schedule of investments, are included in Section II of Registrant’s financial statements, and should be read in conjunction with Registrant’s financial statements.

The term “Trading Advisor”, as used herein, refers either to Transtrend or Winton, depending upon the applicable period or context discussed. The term “Trading Advisory Agreement”, as used herein, refers to the Transtrend Advisory Agreement or Trading Vehicle Advisory Agreement, depending upon the applicable period or context discussed. Since the Registrant fully redeemed from the Trading Vehicle as detailed above, all references to Registrant’s investment in the Trading Vehicle are through September 30, 2009, the date of redemption.

Effective November 30, 2010, the Registrant will terminate its managed account with Transtrend and will contribute all of its assets into the Trading Vehicle, for which Winton, pursuant to its Diversified Program, and Graham Capital Management, L.P. (“Graham”), pursuant to its K4D-15V Program, will serve as the trading advisors.

Competition

The Managing Owner and its affiliates have formed, and may continue to form, various entities to engage in the speculative trading of futures, forward and option contracts that have certain of the same investment policies as Registrant.

Registrant does not currently, and does not intend in the future to, solicit the sale of additional Interests. As such, Registrant does not compete with other entities to attract new fund participants. However, to the extent that a Trading Advisor recommends similar or identical trades to Registrant and other accounts that it manages, Registrant may compete with those accounts, as well as with other market participants, for the execution of the same or similar trades.

Employees

Registrant has no employees. Management and administrative services for Registrant are performed by the Managing Owner or third parties pursuant to the Trust Agreement, as further discussed in Notes 3 and 4 of the Registrant’s financial statements included in its annual report for the year ended December 31, 2009 (“Registrant’s 2009 Annual Report”), which is filed as an exhibit to Registrant’s Form 10-K for the fiscal year ended December 31, 2009.

Critical Accounting Policies

General

Preparation of the financial statements and related disclosures in compliance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires the application of appropriate accounting rules and guidance. Applying these policies requires the Managing Owner to make judgments, estimates and assumptions in connection with the preparation of Registrant’s financial statements. Actual results may differ from the estimates used.

The Managing Owner has evaluated Registrant’s financial statements and related disclosures and has determined that the policies discussed below are critical accounting policies because they involve estimates, judgments and assumptions that are particularly complex, subjective or uncertain. For further discussion of Registrant’s significant accounting policies, see Note 1 to Registrant’s financial statements for the year ended December 31, 2009, which is filed as an exhibit to Registrant’s annual report on Form 10-K for the fiscal year ended December 31, 2009.

The valuation of Registrant’s investments is a critical accounting policy. The market values of futures (exchange traded) contracts is verified by Registrant’s administrator, which obtains valuation data from independent third party data providers such as Bloomberg, Reuters and Super Derivatives and compares those prices with Registrant’s clearing broker. The market value of currency swap and forward (non-exchange traded) contracts is extrapolated on a forward basis from the spot prices quoted as of 4 p.m. (EST) on the last business day of the reporting period. All values assigned by the administrator and confirmed by the Managing Owner are final and conclusive as to all of Registrant’s Unitholders. As such, if actual results vary from estimates used, they are not anticipated to have a material impact on the financial statements and related disclosures.

Registrant records all investments at fair value in its financial statements, with changes in fair value reported as a component of trading profits (losses) in the condensed statements of operations. Generally, fair values are based on quoted market prices; however, in certain circumstances, significant judgments and estimates are involved in determining fair value in the absence of an active market closing price. Registrant considers prices for exchange traded commodity futures and options contracts to be based on quoted prices in active markets for identical assets (Level 1). The values of forwards, swaps, and certain option contracts for which market quotations are not readily available are priced by independent Super Derivatives, Bloomberg, Reuters and or other third party data providers who derive fair values for those assets from observable inputs (Level 2). Level 3 inputs reflect Registrant’s assumptions that it believes market participants would use in pricing the asset or liability. Registrant develops Level 3 inputs based on the best information available in the circumstances, which may include indirect correlation to a market value, combinations of market values or Registrant’s proprietary data. Registrant does not currently have any investments valued using Level 3 inputs.

Of the Registrant’s unrealized gains (losses) at September 30, 2010, $323,138 or 100.01% are classified as Level 1 and $(20) or (0.01)% as Level 2. $72,225 or 91.94% of the Registrant’s unrealized gains at December 31, 2009 are classified as Level 1 and $6,328 or 8.06% as Level 2. There are no Level 3 investments at September 30, 2010 or December 31, 2009.

disclosure for the amounts of significant transfers in and out of Level 1 and Level 2 measurements and requires certain Level 3 disclosures on a gross basis. Additionally, the updates amend existing guidance to require a greater level of disaggregated information and more robust disclosures about valuation techniques and inputs to fair value measurements. Since the amended guidance requires only additional disclosures, the adoption of the provisions effective January 1, 2011 will not impact the Registrant’s financial position or results of operations. The implementation of this guidance, for the provisions effective January 1, 2010, did not have a material impact on the Registrant’s financial statements.

Liquidity and Capital Resources

Registrant commenced operations on May 22, 1997. Contributions were raised through the initial and continuous offering of limited interests (“Limited Interests”) and general interests (“General Interests” and, together with the Limited Interests, “Interests”) of beneficial ownership in Registrant through February 28, 2006. The continuous offering period ended on February 28, 2006.

Subscriptions and Redemptions

Third Quarter 2010

Subscriptions of Limited Interests and General Interests for the Third Quarter 2010 were $0 and $0, respectively. Redemptions of Limited Interests and General Interests for the Third Quarter 2010 were $33,575 and $0, respectively.

Third Quarter 2009

Subscriptions of Limited Interests and General Interests for the quarter ended September 30, 2009 (“Third Quarter 2009”) were $0 and $0, respectively. Redemptions of Limited Interests and General Interests for the Third Quarter 2009 were $93,384 and $0, respectively.

Liquidity

At September 30, 2010, 100% of Registrant’s net investable assets were allocated to commodities trading. A significant portion of Registrant’s net assets is held in cash, which is used as margin for trading in commodities. In as much as the sole business of Registrant is to trade in commodities, Registrant continues to own such liquid assets to be used as margin. The clearing broker and bank credit Registrant with interest income on 100% of its average daily equity maintained in its accounts with the clearing broker and bank during each month at competitive interest rates.

The commodities contracts may be subject to periods of illiquidity because of market conditions, regulatory considerations and other reasons. For example, commodity exchanges limit fluctuations in certain commodity futures contract prices during a single day by regulations referred to as “daily limits.” During a single day, no trades may be executed at prices beyond the daily limit. Once the price of a futures contract for a particular commodity has increased or decreased by an amount equal to the daily limit, positions in the commodity can neither be taken nor liquidated unless traders are willing to effect trades at or within the limit. Commodity futures prices have occasionally moved the daily limit for several consecutive days with little or no trading. Such market conditions could prevent the Registrant from promptly liquidating its commodity futures positions.

Since Registrant’s business is to trade futures, forward and option contracts, its capital is at risk due to changes in the value of these contracts (market risk) or the inability of counterparties to perform under the terms of the contracts (credit risk). Registrant’s exposure to market risk is influenced by a number of factors including the volatility of interest rates and foreign currency exchange rates, the liquidity of the markets in which the contracts are traded and the relationships among the contracts held. The inherent uncertainty of Registrant’s speculative trading as well as the development of drastic market occurrences could result in losses considerably beyond Registrant’s experience to date and could ultimately lead to a loss of all or substantially all of investors’ capital. The Managing Owner attempts to minimize these risks by requiring Registrant and the Trading Advisor to abide by various trading limitations and policies, which include limiting margin amounts, trading only in liquid markets and permitting the use of stop loss provisions. For a further discussion of the credit and market risks associated with Registrant’s futures and forward contracts, see Note 7 to Registrant’s financial statements for the year ended December 31, 2009, which is filed as an exhibit to Registrant’s annual report on Form 10K for the fiscal year ended December 31, 2009.

Registrant does not have, nor does it expect to have, any capital assets.

Market Overview

Following is a market overview for Third Quarter 2010 and Third Quarter 2009:

Third Quarter 2010

The third quarter of 2010 was a roller coaster ride in the financial markets, with two months of powerful rallies sandwiching a month of risk aversion. While economic data published during the quarter showed a softening U.S. economy, it took a backseat to policymakers’ actions. Widespread expectations of another round of quantitative easing (“QE”) by the Federal Reserve (“Fed”) spurred hopes of reflation in asset prices. Moreover, the European Central Bank’s (“ECB”) success in containing the financial market fallout of the sovereign debt problem as well as keeping the banking system liquid and stable helped resuscitate confidence in the euro and the Eurozone economy. In that context, better-than-expected data out of Europe and especially robust growth in Germany buoyed financial markets even though problems in the troubled members of the Eurozone festered. U.S. Gross Domestic Product growth decelerated further in the second quarter to a 1.7% annual rate. The tone of economic data during the third quarter was mixed. Business spending was firm and consumer spending stabilized after weakening in the second quarter, housing dipped to new lows, with home sales reflecting the expiration of the Obama administration tax credits. Meanwhile, the U.S. labor markets remained disappointing throughout the third quarter and many market participants are predicting that the U.S. will enter into another recession over the next few quarters.

Despite the powerful rally in risk assets during the third quarter and the lack of flight to safety demand, U.S. Treasury bonds had another solid rally. The 10-year yield ended the quarter lower. While yields backed up a little in early September, the widespread expectations of QE lead to a smart rally in the second half of September. The Fed, the ECB, the Bank of England and the Bank of Japan all kept key rates unchanged throughout the quarter.

Increased confidence in the euro, the widespread rally in risk assets and the anticipation of the Fed’s second wave of QE all triggered a halt to the U.S. dollar rally that began in November 2009. The U.S. Dollar Index dropped 8.5%. Among the major currencies, the euro rose 10.7% and was the largest gainer against the dollar. The Swiss franc increased by 9.0%, and breached parity for the first time since early 2008. The British pound experienced more modest gains, appreciating by more than 5.3% to cap the quarter. Surprisingly, despite the risk-on environment, the Japanese yen remained strong increasing by 5.6% against the greenback and reached levels not seen since 1995. The Australian dollar surged 13.7% on the back of the commodity rally, robust economic data and surging exports to Asia. The Canadian dollar gained 2.9%.

Global equities rallied smartly in the third quarter. In the U.S., earnings continued to beat expectations. The gains were broad-based across the sectors, with technology leading the charge and financials lagging. The Dow Jones Industrial Average, S&P 500 and Nasdaq gained approximately 10.4%, 12.3% and 10.7%, respectively for the quarter. European equities snapped back even more powerfully, as the STOXX 600, a broad measure of European equities, surged approximately 18.9%, in dollar terms. The CAC, FTSE and DAX closed the quarter with gains of approximately 7.9%, 12.7% and 4.4% respectively. Pacific Rim markets posted mixed results during the quarter. Japan failed to participate in the global rally as the Nikkei edged down 0.1%. However, the Hang Seng rose 11.1% and the Korean Kospi gained 10.3%. The Australian All Ordinaries Index posted a 7.2% increase.

Commodities had a robust quarter, not surprising given the broad-based risk-aversion. Among the major commodities, only natural gas and cocoa declined during the quarter, while many commodities registered solid double-digit gains. Crude oil rose 6.9% and was one of the laggards in the commodity space, as the Organization for Economic Co-Operation and Development (“OECD”) demand continued to be soft. Natural gas plunged 22.5%, handily wiping out the previous quarter’s gain due to an oversupplied market. Heating oil ended the quarter with an approximate 13.6% gain, and reformulated gasoline rose a modest 3.2%.

Gold continued its steady climb, rising 8.3% to a record high. The growing fears of global competitive currency devaluation fueled the yellow metal rally. Silver soared by 22.7% as the engines of industrial and investment demand fired on all cylinders throughout the quarter. Base metals recorded large increases as well. Copper, aluminum and nickel ended the quarter with gains of 26.7%, 21.5% and 23.2%, respectively.

Price increases in agricultural commodities were the strongest in the commodity sector during the quarter. Sugar posted the largest gain with a 55.4% surge. Wheat surged on bad harvests and export clampdowns in Russia. The other grains and cotton were also strong performers during the quarter. Cotton soared as the world’s textile mills, nervous about a global shortage of cotton, propelled prices of the fiber to their highest levels in 15-years.

Third Quarter 2009

The National Bureau of Economic Research is likely mark the third quarter of 2009 as the beginning of the recovery in the US economy. Gross Domestic Product data for the quarter will not be published until later in October, but based on other data released to date, it is clear that economic growth picked up nicely in the quarter. The stimulus packages made their full impact during the quarter and the cash-for-clunkers program gave a further boost to the economy. More importantly, the US housing market, which had been at the epicenter of the current downturn, showed tentative signs of building on the modest gains of the previous quarter, aided by the $8,000 first time homebuyer credit. The latest Case-Shiller Housing Index indicated that home prices and existing and new home sales both recorded decent gains during the quarter. However, the labor market remained in the doldrums. While the pace of job losses slowed, they continued at levels that almost matched the peak of the previous recession and the unemployment rate marched relentlessly up to 9.8%. The current downturn now ranks as the worst among all postwar recessions in terms of percentage job losses.

Despite the indications of economic recovery and the growing risk appetite, US Treasury yields rallied during the quarter on the back of weak and falling inflation figures, robust demand at auctions, and the Federal Reserve’s (the “Fed”) quantitative easing program. The 10-year yield fell to end the quarter at 3.31%. The Fed kept rates unchanged through the quarter. However, at its September meeting, the Federal Open Market Committee, while reiterating its support for near zero rate policy, offered a slightly hawkish nuance, reflecting the growing discomfort among the “hawks” at the Fed. The European Central Bank, the Bank of England and the Bank of Japan kept key rates unchanged through the quarter as well. As in the US, market participants feel that the worst appears to be over across the globe.

The US dollar experienced another losing quarter, with the Dollar Index declining approximately 4%. The increased appetite for risk and the growing global discomfort with the massive monetary and fiscal policy stimuli weighed on the dollar. The British pound was the only major currency to lose ground to the US dollar during the quarter, again reflecting the global unease with massive fiscal stimulus and quantitative easing. The euro finished the third quarter up approximately 4% on the dollar. More surprising was the near 7% gain in the Japanese yen, in a quarter in which risk assets surged and Japan’s economy remained weak in comparison to its developed market peers.

Coming on the heels of what was already the best quarter in over 10 years for the S&P 500, it was remarkable that the third quarter gain was as strong as the second quarter gain. In fact, the second and third quarter 2009 combined percentage change in the S&P 500 was the largest two quarter upswing since 1975 and the second largest in the entire postwar era. Financials led the way, but the rally was broad based. The gains in the other US indices were equally impressive, with the NASDAQ recording its largest two-quarter rise since the peak of the Dotcom Bubble in 2000. The Dow Jones Industrial Average, S&P 500 and NASDAQ rose approximately 15%, 15% and 16%, respectively, for the quarter. The third quarter was even better for Europe, where the gains exceeded those in the previous quarter. The STOXX 600, a broad measure of European equities, rose approximately 18% during the quarter. The CAC, FTSE 100, and DAX closed the quarter with near 20% gains. Asian markets rose as well, but the performance was more mixed. While the Korean Kospi jumped 20% and the Hang Seng registered a solid 14% gain, the Nikkei only managed a modest 2% rise. The Australian All Ordinaries Index posted a 20% increase.

Crude oil had a basically flat quarter, ending the period up approximately 1%. Rising economic optimism and dollar weakness were offset by reports of plentiful crude inventory and continued soft demand. Natural gas surged approximately 26%, but the bottom line masks the drama during the quarter. Natural gas suffered an 18% decline in August and fell to a seven-year low in early September. However, it recovered sharply in September on the back of stronger economic data, lower-than-expected inventory reports, expectations of lower winter temperatures, and short covering. Heating oil ended the quarter with an approximate 5% gain. Reformulated gasoline had a weak quarter, declining approximately 9%, as demand recovery remained elusive.

As the economic recovery gained ground in the third quarter, incipient fears of soaring inflation down the road spurred the demand for gold even as flight-to-safety demand dwindled during the third quarter. The yellow metal posted an approximate 9% gain in the third quarter. Also, reserve diversification by China and others may well be supporting gold. Silver surged up approximately 22% with the twin engines of investment demand and industrial demand firing. Base metals witnessed overall gains across the board in the quarter as global industrial production, especially auto production, turned up smartly. Copper and zinc finished up the quarter with both realizing overall gains greater than 20%.

Pork bellies, which had suffered a collapse in the second quarter following the ban on US pork products emanating from H1N1 Influenza (Swine Flu) fears, recovered sharply in the third quarter, registering an approximate 50% increase as some countries lifted the ban. Cotton prices continued their upward march during the quarter, rising approximately 15%. Wheat and soybeans fell sharply as initial fears of bad weather did not pan out and the USDA planting reports indicated solid

harvests. Soybeans, wheat and corn posted losses of 24%, 10%, and 1%, respectively. Sugar continued its parabolic rise in the third quarter, skyrocketing approximately 43% following a 32% surge in the second quarter. The worst drought in more than two decades in India, the world’s largest consumer of sugar and the biggest swing factor in global markets, propelled sugar to its highest level since 1981. Hopes of stronger consumer spending fueled by the global economic recovery lifted cocoa prices by over 25% in the quarter. Coffee also registered a solid quarter, gaining approximately 7%.

Sector Performance

Due to the nature of Registrant’s trading activities, a period-to-period comparison of its trading results is not meaningful. However, set forth below are the following:

(a)

the major sectors to which Registrant’s assets were allocated as of September 30, 2010 and September 30, 2009, measured as a percentage of the “gross speculator margin” (i.e., the minimum amount of cash or marginable securities a speculator must post when buying or selling futures assets); and

(b)

a discussion of Registrant’s trading results for the major sectors in which Registrant traded for the quarters ended September 30, 2010 and 2009.

Third Quarter 2010

As of September 30, 2010, the allocation of Registrant’s assets to major sectors was as follows:


Sector	Allocation
Currencies		21.74	%

Energies		11.23	%

Grains		3.99	%

Interest Rates		13.51	%

Meats		1.17	%

Metals		8.73	%

Indices		36.42	%

Tropicals		3.21	%


TOTAL		100.00	%

Trading results for the major sectors in which Registrant traded for Third Quarter 2010 were as follows:

Currencies: (+) Registrant experienced a majority of its gains in the Australian, US and New Zealand dollars, Columbian peso, South African rand and Japanese yen. Losses were incurred in the euro, Swiss franc and Mexican peso.

Energies: (+) Registrant experienced gains in natural gas. Losses were incurred in Brent crude, crude, reformulated gasoline, gas oil and heating oil.

Grains: (+) Registrant experienced a majority of its gains in cotton, soybeans and rapeseed. Losses were incurred in bean oil and wheat.

Indices: (+) Registrant experienced gains in the Kospi, Taiwan Taiex, Nasdaq and the MSCI Emerging Markets Index. Losses were incurred in the DJ STOXX, Vix Index, CAC and the Nikkei.

Interest Rates: (+) Registrant experienced a majority of its gains in US Treasury Notes, German bund, Eurodollar and 3-month short sterling. Losses were incurred in the Liffe and the 10-year and 3-year Australian Bonds and Bills.

Meats: (-) Registrant sector experienced gains in live cattle. Losses were incurred in live hogs and feeder cattle.

Metals: (+) Registrant experienced gains in gold, copper, nickel, tin and silver. Losses were incurred in aluminum and lead.

Softs: (+) Registrant experienced gains in sugar. Losses were incurred in coffee, timber and citrus.

Third Quarter 2009

As of September 30, 2009, the allocation of Registrant’s assets to major sectors was as follows:


Sector	Allocation
Currencies		47.04	%

Energies		5.30	%

Grains		9.68	%

Interest Rates		19.19	%

Meats		1.38	%

Metals		6.41	%

Indices		10.00	%

Tropicals		1.00	%


TOTAL		100.00	%

Trading results for the major sectors in which Registrant traded for the Third Quarter 2009 were as follows:

Currencies: (+) Registrant experienced a majority of its gains in the Australian and New Zealand dollars and euro. The majority of losses were seen in the British pound, Canadian dollar and Japanese yen.

Energies: (-) Registrant experienced gains in natural gas. Losses were incurred in reformulated gasoline, heating oil, crude oil and Brent crude.

Grains: (+) Registrant experienced gains in wheat, corn and cotton. Losses were incurred in soybeans.

Indices: (-) Registrant experienced gains is the Taiwanese Index, Nasdaq and Hang Seng. Losses were incurred in the DAX, DJ STOXX, London FTSE, CAC and the S&P 500.

Interest Rates: (+) Registrant experienced a majority of its gains in the Euribor Liffe, German Bund and Bobl, Eurodollar, Japanese Government Bonds, 3-month short sterling and US Treasuries. Losses were incurred in Australian Bonds and Bank Bills.

Meats: (+) Registrant experienced gains in live hogs and live and feeder cattle.

Metals: (+) Registrant experienced gains in gold, copper and silver. Losses were incurred in nickel, zinc and aluminum.

Softs: (-) Registrant experienced gains in coffee. Losses were incurred in cocoa and sugar.

Results of Operations

Third Quarter 2010

The Net Asset Value per Interest as of September 30, 2010 was $121.46, an increase of $4.76 from the June 30, 2010 Net Asset Value per Interest of $116.70. Registrant’s average net asset level during the Third Quarter 2010 was approximately $4,134,000. Registrant’s average net assets decreased during the Third Quarter 2010 in comparison to the Third Quarter 2009 by approximately $1,028,000 primarily due to the effect of redemptions.

Registrant’s performance for the Third Quarter 2010 was 4.08%. Performance includes the percentage change in Registrant’s Net Asset Value excluding the effect of redemptions and includes the percentage impact of trading gains(losses) less any commissions and related fees and expenses. Past performance is not necessarily indicative of future results.

Registrant’s trading gains before commissions for the Third Quarter 2010 were approximately $315,000.

Commissions and other transaction fees for the Third Quarter 2010 were approximately $102,000, a decrease of approximately $28,000 as compared to the Third Quarter 2009, primarily due to reduced average net asset levels discussed above.

Management fees allocated from the Trading Vehicle for the Third Quarter 2010 were $0, a change of $429 as compared to the Third Quarter 2009, due to Registrant’s full redemption from the Trading Vehicle on September 30, 2009.

Pursuant to the Trading Advisory Agreements, Registrant pays quarterly profit shares of 20% of Trading Profit (as defined in each respective Trading Advisory Agreement). Trading Advisor profit shares for the Third Quarter 2010 were $0.

Pursuant to the Declaration of Trust and Trust Agreement, Registrant pays an incentive fee to the Managing Owner equal to 5% of New Overall Appreciation (as defined) as of each fiscal year end and upon redemption of Interests. Managing Owner incentive fees for the Third Quarter 2010 were $0.

Operating expenses include accounting, audit, tax, and legal fees, as well as printing and postage costs related to reports sent to limited owners. Operating expenses for the Third Quarter 2010 were approximately $50,000.

Third Quarter 2009

The Net Asset Value per Interest as of September 30, 2009 was $132.31, a decrease of $9.15 from the June 30, 2009 Net Asset Value per Interest of $141.46. Registrant’s average net asset level during the Third Quarter 2009 was approximately $5,162,000. Registrant’s average net assets decreased during the Third Quarter 2009 in comparison to the quarter ended September 30, 2008 (“Third Quarter 2008”) by approximately $402,000 primarily due to the effect of redemptions and negative trading performance.

Registrant’s performance for the Third Quarter 2009 was (6.47)%. Performance includes the percentage change in Registrant’s Net Asset Value excluding the effect of redemptions and includes the percentage impact of trading gains(losses) less any commissions and related fees and expenses. Past performance is not necessarily indicative of future results.

Registrant’s trading losses before commissions for the Third Quarter 2009 were approximately ($163,000).

Commissions and other transaction fees for the Third Quarter 2009 were approximately $130,000, a decrease of approximately $3,000 as compared to the Third Quarter 2008, primarily due to reduced average net asset levels discussed above.

Management fees allocated from the Trading Vehicle for the Third Quarter 2009 were approximately $0, a decrease of approximately $6,000 as compared to the Third Quarter 2008, primarily due to Registrant’s full redemption from the Trading Vehicle on September 30, 2009.

Inflation

Inflation has had no material impact on the operations or on the financial condition of Registrant from inception through September 30, 2010.

Off-Balance Sheet Arrangements and Contractual Obligations

Registrant does not have any off-balance-sheet arrangements (as defined in Regulation S-K 303(a)(4)(ii)) that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Registrant’s contractual obligations are with the Managing Owner, the Trading Advisor and its commodity broker. Management fees payable by Registrant to the Trading Advisor and brokerage commissions payable to the Managing Owner are calculated as a fixed percentage of Registrant’s Net Asset Value. Incentive fees payable by the Registrant to the Trading Advisor are at a fixed rate, calculated as a percentage of Registrant’s “New High Net Trading Profits” (as defined in the Trading Advisory Agreement). As such, the Managing Owner cannot anticipate the amounts to be paid for future periods as Net Asset Values and “New High Net Trading Profits” are not known until a future date. Commissions payable to Registrant’s commodity broker are based on a cost per executed trade and, as such, the Managing Owner cannot anticipate the amount that will be required under the brokerage agreement, as the level of executed trades are not known until a future date. These agreements are effective for one-year terms, renewable automatically for additional one-year terms unless terminated. Additionally, these agreements may be terminated by either party thereto for various reasons. Additionally, since Registrant does not enter into other long-term debt obligations, capital lease obligations, operating lease obligations or other long-term liabilities that would otherwise be reflected on Registrant’s Statement of Financial Condition, a table of contractual obligations has not been presented. For a further discussion of Registrant’s contractual obligations, see Notes 2 and 3 to Registrant’s financial statements for the year ended December 31, 2009, which is filed as an exhibit to Registrant’s annual report on Form 10-K for the fiscal year ended December 31, 2009.

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Information regarding quantitative and qualitative disclosures about market risk is not required pursuant to Item 305(e) of Regulation S-K.

Item 4.

Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Registrant’s “disclosure controls and procedures” (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) are designed to ensure that information required to be disclosed by Registrant in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission (the “SEC”), and that such information is accumulated and communicated to Registrant’s management, including the Managing Owner’s Co-Chief Executive Officers and Director of Fund Administration (who, in these capacities, function as the Principal Executive Officers and Principal Financial Officer, respectively, of Registrant), as appropriate to allow for timely decisions regarding required disclosure.

In designing and evaluating Registrant’s disclosure controls and procedures, the Managing Owner recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs. Because of the inherent limitations in all control systems, no evaluation of the controls can prove absolute assurance that all control issues and instances of fraud, if any, within Registrant have been detected.

The Managing Owner’s management, under the supervision and with the participation of certain officers of the Managing Owner (including the Managing Owner’s Co-Chief Executive Officers and Director of Fund Administration), has evaluated the effectiveness of Registrant’s disclosure controls and procedures as of September 30, 2010. Based upon such evaluation, the Managing Owner’s Co-Chief Executive Officers and Director of Fund Administration have concluded that, as of September 30, 2010, Registrant’s disclosure controls and procedures were effective.

Changes in Internal Control Over Financial Reporting

There have been no changes in Registrant’s internal control over financial reporting (as defined in Rules 13a – 15(f) and 15d – 15(f) under the Exchange Act) during the Third Quarter of 2010 that have materially affected, or are reasonably likely to materially affect, Registrant’s internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1.

Legal Proceedings

There are no material legal proceedings pending, on appeal, or concluded to which Registrant is a party or to which any of its assets are subject.

Item 1.A.

Risk Factors

There have been no changes from risk factors as previously disclosed in Registrant’s Form 10-K for the fiscal year ended December 31, 2009.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

None

Item 3.

Defaults Upon Senior Securities

None

Item 5.

Other Information

None

Item 6.

Exhibits:



3.1		Certificate of Formation of the Registrant. (Incorporated by reference to the Trust’s Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996).

3.2		Declaration of Trust and Trust Agreement of the Registrant (incorporated by reference to the Trust’s Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996).

3.3		Fifth Amended and Restated Declaration of Trust and Trust Agreement of the Registrant dated as of December 1, 2008 (incorporated by reference to Exhibit 3.3 to Registrant’s Form 10-K for the year ended December 31, 2009)

4.5		Form of the Privacy Notices of the Managing Owner dated July 2009 (incorporated by reference to Exhibit 4.5 to Registrant’s Form 10-K for the year ended December 31, 2009)

10.1		Form of Advisory Agreement (incorporated by reference to the Trust’s Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996).

10.2		Form of Customer Agreement between the Trust and the Commodity Brokers (incorporated by reference to the Trust’s Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996).

10.3		Form of Escrow Agreement (incorporated by reference to the Trust’s Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996).

10.4		Subscription Agreement and Power of Attorney (incorporated by reference to the Trust’s Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996).

10.5		Advisory Agreement among the Managing Owner, WCM Pool LLC and Winton Capital Management Limited dated November 20, 2006 (incorporated by reference to Exhibit 10.5 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007)

10.6		WCM Pool LLC Organization Agreement dated November 20, 2006 (incorporated by reference to Exhibit 10.6 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007)

10.7		Administrative Service Agreement between WCM Pool LLC and Preferred Investment Solutions Corp. dated November 20, 2006 (incorporated by reference to Exhibit 10.7 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007)

10.8		Amendment No. 1 to WCM Pool LLC Organization Agreement dated March 30, 2007 (incorporated by reference to Exhibit 10.8 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007)



10.9		Services Agreement between Spectrum Global Fund Administration, L.L.C. and Registrant dated May 23, 2007 (incorporated by reference to Exhibit 10.9 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007)

10.10		Administrative Service Agreement between WCM Pool LLC and Preferred Investment Solutions Corp. dated November 20, 2006 (incorporated by reference to Exhibit 10.7 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007)

10.11		Amendment No. 1 to WCM Pool LLC Organization Agreement dated March 30, 2007 (incorporated by reference to Exhibit 10.8 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007)

10.12		Purchase Agreement dated September 24, 2007, effective August 10, 2007 by and between Registrant and Preferred Investment Solutions Corp. (incorporated by reference to Exhibit 10.1 to Form 8-K, file No. 333-08869, filed on September 28, 2007)

10.13		Security Agreement dated September 24, 2007, effective August 10, 2007 by and between Registrant and Preferred Investment Solutions Corp. (incorporated by reference to Exhibit 10.2 to Form 8-K, file No. 333-08869, filed on September 28, 2007)

10.14		Services Agreement between Spectrum Global Fund Administration, L.L.C. and Registrant dated May 23, 2007 (incorporated by reference to Exhibit 10.9 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007)

10.15		Amendment No. 2 dated April 30, 2010 to Demand Promissory Note by Kenmar Preferred Investments Corp. to Kenmar Global Trust (incorporated by reference to Exhibit 10.13 to Form 8-K, file No. 333-08869, filed on May 3, 2010)

10.16		Pledge Agreement dated April 30, 2010 by and between Registrant and Preferred Investment Solutions Corp. (incorporated by reference to Exhibit 10.14 to Form 8-K, file No. 333-08869, filed on May 3, 2010)

13.1		Registrant’s 2009 Annual Report (with the exception of the information and data incorporated by reference in Item 8 of this Annual Report on Form 10-K, no other information or data appearing in the Registrant’s 2008 Annual Report is to be deemed filed as part of this report) (incorporated by reference to Exhibit 13.1 to Registrant’s Form 10-K for the year ended December 31, 2009)

14.1		Kenmar Preferred Investments Corp. Code of Ethics (adopted pursuant to Section 406 of Sarbanes Oxley Act of 2002) as of November 9, 2009 (incorporated by reference to Exhibit 14.1 to Registrant’s Form 10-K for the year ended December 31, 2009)

31.1		Certification pursuant to Exchange Act Rules 13a-14 and 15d-14 (filed herewith)

31.2		Certification pursuant to Exchange Act Rules 13a-14 and 15d-14 (filed herewith)

32.1		Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

32.2		Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.


KENMAR GLOBAL TRUST

By:	Kenmar Preferred Investments Corp., its Managing Owner

	By:	/s/ Kenneth A. Shewer		Date: November 12, 2010
		Name:	Kenneth A. Shewer
		Title:	Co-Chief Executive Officer (Principal Executive Officer)

	By:	/s/ David K. Spohr		Date: November 12, 2010
		Name:	David K. Spohr
		Title:	Senior Vice President and Director of Fund Administration (Principal Financial/Accounting Officer)

September 30,

2010

December 31,
2009

KENMAR GLOBAL TRUST 10-Q