Global Diversified Futures Fund (GDFF) 10-Q 2006 Q1 Quarterly report

Table of Contents

FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

(X) QUARTERLY REPORT UNDER SECTION 13 or 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

OR ( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarter Ended March 31, 2006

Commission File Number 000-30455

SALOMON SMITH BARNEY GLOBAL DIVERSIFIED FUTURES FUND L.P.

(Exact name of registrant as specified in its charter)

New York				13-4015586
(State or other jurisdiction of incorporation or organization)				(I.R.S. Employer Identification No.)

c/o Citigroup Managed Futures LLC
731 Lexington Avenue – 25th Fl.
New York, New York 10022

(Address and Zip Code of principal executive offices)

(212) 559-2011

(Registrant's telephone number, including area code)

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

Large accelerated filer          Accelerated filer          Non-accelerated filer X

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

Yes          No X

Table of Contents

SALOMON SMITH BARNEY GLOBAL DIVERSIFIED FUTURES FUND L.P.

FORM 10-Q

INDEX

Page Number

PART I - Financial Information:

Item 1.

Financial Statements:

Statements of Financial Condition at March 31, 2006 and December 31, 2005 (unaudited)

3

Condensed Schedules of Investments at March 31, 2006 and December 31, 2005 (unaudited)

4 – 5

Statements of Income and Expenses and Partners' Capital for the three months ended March 31, 2006 and 2005 (unaudited)

6

Statements of Cash Flows for the three months ended March 31, 2006 and 2005 (unaudited)

7

Notes to Financial Statements (unaudited)

8 – 12

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

13 – 14

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

15 – 17

Item 4.

Controls and Procedures

18

PART II — Other Information

19

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PART I

Item 1. Financial Statements

Salomon Smith Barney Global Diversified Futures Fund L.P.
Statements of Financial Condition
(Unaudited)

				March 31, 2006				December 31, 2005
Assets:
Investment in Partnerships, at fair value				$	49,334,164			$	47,537,531
Cash					39,425				24,949
				$	49,373,589			$	47,562,480
Liabilities and Partners' Capital:
Liabilities:
Accrued expenses:
Commissions				$	222,181			$	218,136
Management fees					71,428				70,024
Incentive fees					410,808				451,973
Other					45,257				28,965
Redemptions payable					155,283				235,979
					904,957				1,005,077
Partners' Capital:
General Partner, 619.7983 Unit equivalents outstanding in 2006 and 2005					972,284				917,723
Limited Partners, 30,277.2533 and 30,823.4179 Redeemable Units of Limited Partnership Interest outstanding in 2006 and 2005, respectively					47,496,348				45,639,680
					48,468,632				46,557,403
				$	49,373,589			$	47,562,480

See Accompanying Notes to Financial Statements.

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Salomon Smith Barney
Global Diversified Futures Fund L.P.
Condensed Schedule of Investments
March 31, 2006
(Unaudited)

Investment In Partnerships				Fair Value				% of Partners' Capital
CMF Altis Partners Master Fund L.P.				$	15,980,200				32.97	%
CMF Aspect Master Fund L.P.					16,742,577				34.54
CMF Campbell Master Fund L.P.					16,611,387				34.27
Total Fair Value				$	49,334,164				101.78	%

Percentages are based on Partners' Capital unless otherwise indicated.

See Accompanying Notes to Financial Statements.

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Salomon Smith Barney
Global Diversified Futures Fund L.P.
Condensed Schedule of Investments
December 31, 2005
(Unaudited)

				Fair Value				% of Partners' Capital
Investment in Partnerships
CMF Altis Partners Master Fund L.P.				$	14,780,472				31.75	%
CMF Aspect Master Fund L.P.					16,321,019				35.06
CMF Campbell Master Fund L.P.					16,436,040				35.30
Total Fair Value				$	47,537,531				102.11	%

	Percentages are based on Partners' Capital unless otherwise indicated.

See Accompanying Notes to Financial Statements.

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Salomon Smith Barney Global Diversified Futures Fund L.P.
Statements of Income and Expenses and Partners' Capital
(Unaudited)

				Three Months Ended March 31,
				2006				2005
Income:
Net gains (losses) on trading of commodity interests:
Realized gains on closed positions and foreign currencies				$	—			$	(1,683,463	)
Change in unrealized gains (losses) on open positions and investment in Partnerships					4,037,360				356,801
					4,037,360				(1,326,662	)
Interest income					—				95,501
					4,037,360				(1,231,161	)
Expenses:
Brokerage commissions including clearing fees of $0 and $20,872, respectively					652,772				619,369
Management fees					209,800				186,631
Incentive fees					410,808				—
Other expenses					16,291				18,240
					1,289,671				824,240
Net income (loss)					2,747,689				(2,055,401	)
Redemptions – Limited Partners					(836,460	)			(1,369,084	)
Net increase (decrease) in Partners' capital					1,911,229				(3,424,485	)
Partners' capital, beginning of period					46,557,403				46,309,169
Partners' capital, end of period				$	48,468,632			$	42,884,684
Net asset value per Redeemable Unit (30,897.0516 and 33,619.1417 Units outstanding at March 31, 2006 and 2005, respectively)				$	1,568.71			$	1,275.60
Net income (loss) per Redeemable Unit of Limited Partnership Interest and General Partner Unit equivalent				$	88.03			$	(59.09	)

See Accompanying Notes to Financial Statements.

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Salomon Smith Barney Global Diversified Futures Fund L.P.
Statements of Cash Flows
(Unaudited)

				Three Months Ended March 31,
				2006				2005
Cash flows from operating activities:
Net income (loss)				$	2,747,689			$	(2,055,401	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Changes in operating assets and liabilities:
(Increase) decrease in restricted cash					—				6,027,453
Purchase of Investment in Partnerships					—				(32,296,934	)
Proceeds from sale of Investment in Partnerships					1,854,038				601,788
Net unrealized (appreciation) depreciation on Investment in Partnerships					(3,650,671	)			(914,313	)
(Increase) decrease in net unrealized appreciation on open futures positions					—				693,408
(Increase) decrease in unrealized appreciation on open forward contracts					—				2,180,131
(Increase) decrease in interest receivable					—				42,145
Increase (decrease) in unrealized depreciation on open forward contracts					—				(2,211,017	)
Accrued expenses:
Increase (decrease) in commissions					4,045				(14,432	)
Increase (decrease) in management fees					1,404				(4,887	)
Increase (decrease) in incentive fees					(41,165	)			(357,621	)
Increase (decrease) in other					16,292				18,238
Net cash provided by (used in) operating activities					931,632				(28,291,442	)
Cash flows from financing activities:
Payments for redemptions – Limited Partners					(917,156	)			(862,003	)
Net change in cash					14,476				(29,153,445	)
Unrestricted cash, at beginning of period					24,949				38,148,133
Unrestricted cash, at end of period				$	39,425			$	8,994,688
Non Cash Financing Activities:
Contribution of open commodity futures and forward positions					—			$	(1,253,281	)

See Accompanying Notes to Financial Statements.

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Salomon Smith Barney Global Diversified Futures Fund L.P.
Notes to Financial Statements
March 31, 2006
(Unaudited)

1.    General:

Salomon Smith Barney Global Diversified Futures Fund L.P. (the "Partnership") is a limited partnership organized under the laws of the State of New York on June 15, 1998 to engage in the speculative trading of a diversified portfolio of commodity interests including futures contracts, options and forward contracts. The commodity interests that are traded by the Partnership are volatile and involve a high degree of market risk. The Partnership commenced trading operations on February 2, 1999.

Between November 25, 1998 (commencement of the offering period) and February 1, 1999, 33,379 Redeemable Units of limited partnership interest and 337 Redeemable Unit equivalents representing the general partner's contribution were sold at $1,000 per Redeemable Unit. The proceeds of the offering were held in an escrow account until February 2, 1999, at which time they were turned over to the Partnership for trading. The public offering of Redeemable Units terminated on November 25, 2000.

Citigroup Managed Futures LLC acts as the general partner (the "General Partner") of the Partnership. The Partnership's commodity broker is Citigroup Global Markets Inc. ("CGM"). CGM is an affiliate of the General Partner. The General Partner is wholly owned by Citigroup Global Markets Holdings Inc. ("CGMHI"), which is the sole owner of CGM. CGMHI is a wholly owned subsidiary of Citigroup Inc. ("Citigroup"). As of March 31, 2006, all trading decisions are made for the Partnership by Aspect Capital Management Ltd. ("Aspect"), Campbell & Company, Inc., ("Campbell") and Altis Partners LTD ("Altis") (each an "Advisor" and collectively, the "Advisors").

The accompanying financial statements are unaudited but, in the opinion of management, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Partnership's financial condition at March 31, 2006 and December 31, 2005 and the results of its operations and its cash flows for the three months ended March 31, 2006 and 2005. These financial statements present the results of interim periods and do not include all disclosures normally provided in annual financial statements. You should read these financial statements together with the financial statements and notes included in the Partnership's annual report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2005.

Due to the nature of commodity trading, the results of operations for the interim periods presented should not be considered indicative of the results that may be expected for the entire year.

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Salomon Smith Barney Global Diversified Futures Fund L.P.
Notes to Financial Statements
March 31, 2006
(Unaudited)

2.    Financial Highlights:

Changes in Net Asset Value per Redeemable Unit of Limited Partnership Interest for the three months ended March 31, 2006 and 2005 were as follows:

				Three Months Ended March 31,
				2006				2005
Net realized and unrealized gains (losses) *				$	108.42			$	(55.92	)
Interest Income					—				2.76
Expenses **					(20.39	)			(5.93	)
Increase (decrease) for the period					88.03				(59.09	)
Net Asset Value per Redeemable Unit, beginning of period					1,480.68				1,334.69
Net Asset Value per Redeemable Unit, end of period				$	1,568.71			$	1,275.60
*Includes brokerage commissions
**Excludes brokerage commissions

				Three Months Ended March 31,
				2006				2005
Ratios to average net assets:***
Net investment loss before incentive fees****					(7.5	)%			(6.7	)%
Operating expense					7.5	%			7.6	%
Incentive fees					0.9	%			—	%
Total expenses					8.4	%			7.6	%
Total return:
Total return before incentive fees					6.8	%			(4.4	)%
Incentive fees					(0.9	)%			—	%
Total return after incentive fees					5.9	%			(4.4	)%

***	Annualized (other than incentive fees)

****	Interest income less total expenses (exclusive of incentive fees)

The above ratios may vary for individual investors based on the timing of capital transactions during the period. Additionally, these ratios are calculated for the Limited Partner class using the Limited Partners' share of income, expenses and average net assets.

3.    Trading Activities:

The Partnership was formed for the purpose of trading contracts in a variety of commodity interests, including derivative financial instruments and derivative commodity instruments. The results of the Partnership's trading activities are shown in the Statements of Income and Expenses and Partners' Capital and are discussed in Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations.

The Customer Agreement between the Partnership and CGM gives the Partnership the legal right to net unrealized gains and losses on open futures positions.

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Salomon Smith Barney Global Diversified Futures Fund L.P.
Notes to Financial Statements
March 31, 2006
(Unaudited)

All of the commodity interests owned by the Partnership are held for trading purposes. The results of the Partnership's trading activities (resulting from its investment in other Partnerships) are shown in the statement of income and expenses.

4.    Investment in Partnerships:

Effective January 1, 2005, the assets allocated to Campbell for trading were invested in the CMF Campbell Master Fund L.P. ("Campbell Master"), a limited partnership organized under the partnership laws of the State of New York. The Partnership purchased 17,534.8936 Units of the Campbell Master with cash equal to $17,341,826 and a contribution of open commodity futures and forward positions with a fair value of $193,067. Campbell Master was formed in order to permit commodity pools managed now or in the future by Campbell using Campbell's Financials, Metals and Energy Program, to invest together in one trading vehicle. The General Partner of the Partnership is the general partner of Campbell Master. Individual and pooled accounts are permitted to be a limited partner of Campbell Master. The General Partner and Campbell believe that trading through this structure should promote efficiency and economy in the trading process. Expenses to investors as a result of the investment in Campbell Master are approximately the same and redemption rights are not affected.

Effective March 1, 2005, the assets allocated to Aspect for trading were invested in the CMF Aspect Master Fund L.P. ("Aspect Master"), a limited partnership organized under the partnership laws of the State of New York. The Partnership purchased 16,015.3206 Units of the Aspect Master with cash equal to $14,955,106 and a contribution of open commodity futures and forward positions with a fair value of $1,060,214. Aspect Master was formed in order to permit commodity pools managed now or in the future by Aspect using Aspect's Diversified Program, to invest together in one trading vehicle. The General Partner of the Partnership is the general partner of Aspect Master. Individual and pooled accounts are permitted to be a limited partner of Aspect Master. The General Partner and Aspect believe that trading through this structure should promote efficiency and economy in the trading process. Expenses to investors as a result of the investment in Aspect Master are approximately the same and redemption rights are not affected.

On November 1, 2005, the assets allocated to Altis for trading were invested in the CMF Altis Partners Master Fund L.P. ("Altis Master"), a limited partnership organized under the partnership laws of the State of New York. The Partnership purchased 13,013.6283 Units of the Altis Master with cash equal to $11,227,843 and a contribution of open commodity futures and forwards positions with a fair value of $1,785,785. Altis Master was formed to permit commodity pools managed now and in the future by Altis Partners Ltd. (The "Advisor") using Altis's Diversified Portfolio Program, the Advisor's proprietary trading program, to invest together in one trading vehicle. The General Partner of the partnership is the general partner of Altis Master. Individual and pooled accounts are permitted to be a limited partner of Altis Master. The General Partner and the Advisor believe that trading through this structure should promote efficiency and economy in the trading process. Expenses to the Advisors as a result of the investment in Altis Master are approximately the same and redemption rights are not affected.

Campbell Master's, Aspect Master's and Altis Master's, (the "Funds"), trading of futures, forwards and options contracts, if applicable, on commodities is done primarily on United States of America commodity exchanges and foreign commodity exchanges. The Funds engage in such trading through commodity brokerage accounts maintained by CGM.

A limited partner may withdraw all or part of their capital contribution and undistributed profits, if any from the Funds in multiples of the net asset value per unit of limited partnership interest as of the last day of the month after a request for redemption has been made to the General Partner at least 3 days in advance of month-end.

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Salomon Smith Barney Global Diversified Futures Fund L.P.
Notes to Financial Statements
March 31, 2006
(Unaudited)

All exchange, clearing, user, give-up, floor brokerage and National Futures Association fees are borne by the Funds. All other fees including CGM's direct brokerage commissions are charged at the Partnership level.

As of March 31, 2006 the Partnership owns 4.7%, 8.2% and 53.1% of Campbell Master, Aspect Master and Altis Master, respectively. The performance of the Partnership is directly affected by the performance of the Funds. It is Campbell's, Aspect's and Altis's intention to continue to invest the assets allocated to each by the Partnership in Campbell Master, Aspect Master and Altis Master, respectively.

Summarized information reflecting the total assets, liabilities and capitals for the Funds is shown in the following tables.

				March 31, 2006
				Investments' Total Assets				Investments' Total Liabilities				Investments' Total Capital
Altis Master				$	30,129,108			$	117,338			$	30,011,770
Aspect Master					206,528,625				2,565,421				203,963,204
Campbell Master					366,902,874				11,193,593				355,709,281
Total				$	603,560,607			$	13,876,352			$	589,684,255

				December 31, 2005
				Investments' Total Assets				Investments' Total Liabilities				Investments' Total Capital
Altis Master				$	21,526,809			$	1,223,818			$	20,302,991
Aspect Master					200,507,575				5,680,632				194,826,943
Campbell Master					347,366,314				20,975,541				326,390,773
Total				$	569,400,698			$	27,879,991			$	541,520,707

Summarized information reflecting the Partnership's investment in, and the operations of the Funds are as shown in the following tables.

				March 31, 2006								For the three months ended March 31, 2006
Investment				% of Partnership's Net Assets				Fair Value				Income (Loss)				Expenses								Net Income (loss)				Investment Objective				Redemption Permitted
																Commissions				Other
Altis Master					32.97	%		$	15,980,200			$	1,857,906			$	30,850			$	9,010			$	1,818,046			Commodity Portfolio					Monthly
Aspect Master					34.54	%			16,742,577				1,138,919				8,899				1,397				1,128,623			Commodity Portfolio					Monthly
Campbell Master					34.27	%			16,611,387				1,095,373				4,380				287				1,090,706			FME Portfolio					Monthly
Total								$	49,334,164			$	4,092,198			$	44,129			$	10,694			$	4,037,375

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Salomon Smith Barney Global Diversified Futures Fund L.P.
Notes to Financial Statements
March 31, 2006
(Unaudited)

				December 31, 2005								For the three months ended March 31, 2005
Investment				% of Partnership's Net Assets				Fair Value				Income (Loss)				Expenses								Net Income (loss)				Investment Objective				Redemption Permitted
																Commissions				Other
Altis Master					31.75	%		$	14,780,472			$	—			$	—			$	—			$	—			Commodity Portfolio				Monthly
Aspect Master					35.06	%			16,321,019				(1,490,996	)			7,609				799				(1,499,404	)		Commodity Portfolio				Monthly
Campbell Master					35.30	%			16,436,040				343,676				6,646				390				336,640			FME Portfolio				Monthly
Total								$	47,537,531			$	(1,147,320	)		$	14,255			$	1,189			$	(1,162,764	)

5.    Financial Instrument Risks:

In the normal course of its business, the Partnership, through its investment in other partnerships, is party to financial instruments with off-balance sheet risk, including derivative financial instruments and derivative commodity instruments. These financial instruments may include forwards, futures and options, whose values are based upon an underlying asset, index, or reference rate, and generally represent future commitments to exchange currencies or cash flows, to purchase or sell other financial instruments at specific terms at specified future dates, or, in the case of derivative commodity instruments, to have a reasonable possibility to be settled in cash, through physical delivery or with another financial instrument. These instruments may be traded on an exchange or over-the-counter ("OTC"). Exchange-traded instruments are standardized and include futures and certain option contracts. OTC contracts are negotiated between contracting parties and include forwards and certain options.

Each of these instruments is subject to various risks similar to those related to the underlying financial instruments including market and credit risk. In general, the risks associated with OTC contracts are greater than those associated with exchange-traded instruments because of the greater risk of default by the counterparty to an OTC contract.

Market risk is the potential for changes in the value of the financial instruments traded by the other partnerships due to market changes, including interest and foreign exchange rate movements and fluctuations in commodity or security prices. Market risk is directly impacted by the volatility and liquidity in the markets in which the related underlying assets are traded.

Credit risk is the possibility that a loss may occur due to the failure of a counterparty to perform according to the terms of a contract. Credit risk with respect to exchange-traded instruments is reduced to the extent that an exchange or clearing organization acts as a counterparty to the transactions. The other partnerships' risk of loss in the event of counterparty default is typically limited to the amounts recognized as unrealized appreciation in the statements of financial condition and not represented by the contract or notional amounts of the instruments. The other partnerships have credit risk and concentration risk because the sole counterparty or broker with respect to the other partnerships' assets is CGM.

The General Partner monitors and controls the other partnerships' risk exposure on a daily basis through financial, credit and risk management monitoring systems, and accordingly believes that it has effective procedures for evaluating and limiting the credit and market risks to which the other partnerships' are subject. These monitoring systems allow the General Partner to statistically analyze actual trading results with risk-adjusted performance indicators and correlation statistics. In addition, on-line monitoring systems provide account analysis of futures, forwards and options positions by sector, margin requirements, gain and loss transactions and collateral positions.

The majority of these instruments traded by the other partnerships mature within one year of March 31, 2006. However, due to the nature of the other partnerships' businesses, these instruments may not be held to maturity.

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

Liquidity and Capital Resources

The Partnership does not engage in the sale of goods or services. Its only assets are its equity in its commodity futures trading account, consisting of cash, net unrealized appreciation on open futures and forward contracts, commodity options, if applicable, and interest receivable. Because of the low margin deposits normally required in commodity futures trading, relatively small price movements may result in substantial losses to the Partnership. While substantial losses could lead to a decrease in liquidity, no such losses occurred during the first quarter of 2006.

The Partnership's capital consists of the capital contributions of the partners, as increased or decreased by realized and/or unrealized gains or losses on commodity futures trading, expenses, interest income, additions and redemptions of Redeemable Units and distributions of profits, if any.

For the three months ended March 31, 2006, Partnership capital increased 4.1% from $46,557,403 to $48,468,632. This increase was attributable to a net gain from operations of $2,747,689 which was partially offset by the redemptions of 546.1646 Redeemable Units of Limited Partnership Interest resulting in an outflow of $836,460. Future redemptions can impact the amount of funds available for investment in commodity contract positions in subsequent periods.

Critical Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements and accompanying notes. Actual results could differ from these estimates.

All commodity interests (including derivative financial instruments and derivative commodity instruments) are used for trading purposes. The commodity interests are recorded on trade date and open contracts are recorded in the statements of financial condition at fair value on the last business day of the period, which represents market value for those commodity interests for which market quotations are readily available or other measures of fair value deemed appropriate by management of the General Partner for those commodity interests and foreign currencies for which market quotations are not readily available. Investments in commodity interests denominated in foreign currencies are translated into U.S. dollars at the exchange rates prevailing on the last business day of the period. Realized gains (losses) and changes in unrealized values on open positions are recognized in the period in which the contract is closed or the changes occur and are included in net gains (losses) on trading of commodity interests.

Foreign currency contracts are those contracts where the Partnership agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed future date. Foreign currency contracts are valued daily, and the Partnership's net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the date of entry into the contracts and the forward rates at the reporting dates, is included in the statement of financial condition. Realized gains (losses) and changes in unrealized values on foreign currency contracts are recognized in the period in which the contract is closed or the changes occur and are included in the statements of income and expenses and partners' capital. The investments in other Partnerships are recorded at fair value based upon the Partnership's proportionate interest held.

Results of Operations

During the Partnership's first quarter of 2006 the net asset value per Redeemable unit increased 5.9% from $1,480.68 to $1,568.71 compared to a decrease of 4.4% in the first quarter of 2005. The Partnership experienced a net trading gain before brokerage commissions and related fees in the first quarter of 2006 of $4,037,360. Gains were primarily attributable to the trading of commodity futures in U.S. and non-U.S. interest rates, livestock, metals, softs and indices partially offset by losses in currencies, energy, grains and lumber. The Partnership experienced a net trading loss before brokerage commissions and related fees in

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the first quarter of 2005 of $1,326,662. Losses were primarily attributable to the trading of commodity futures in currencies, grains, indices, softs, non-U.S. interest rates and metals and were partially offset by gains in energy, livestock and U.S. interest rates.

The main drivers of performance in the first quarter 2006 were strongly trending metals and stock index markets augmented by profits in global interest rate trading.

Global political instability, rising energy prices and global interest rates fueled precious metals, notably gold and silver to over 20 year highs. Base metals, particularly aluminum, copper and zinc, also reached prices not seen in decades, which contributed substantial profits fro the quarter. Rising commodity prices led to higher interest rates in the U.S., Europe and Asia, was also profitable for the quarter.

Counterintuitive to traditional market reaction to higher interest rates, global stock markets advanced as corporate earnings reports for full year 2005 met or exceeded expectations and consumer spending remained high despite increased energy prices and interest rates. The partnership's Advisors were properly positioned to take advantage of these trends.

Slightly reducing gains for the partnership were losses in foreign currency and trading in agricultural products. The U. S. dollar remained in a trading pattern for most of the quarter with its' value versus both the Euro and yen rising and falling within a range that resulted in losses for those advisors whose trading systems tend to be longer term in nature. The results from energy trading were negative with losses in predominantly in crude oil as well as petroleum products. Trading results in grains, livestock, and softs were slightly negative for the quarter in aggregate.

Commodity futures markets are highly volatile. The potential for broad and rapid price fluctuations increases the risks involved in commodity trading, but also increases the possibility of profit. The profitability of the Partnership depends on the existence of major price trends and the ability of the Advisors to correctly identify those price trends. Price trends are influenced by, among other things, changing supply and demand relationships, weather, governmental, agricultural, commercial and trade programs and policies, national and international political and economic events and changes in interest rates. To the extent that market trends exist and the advisors are able to identify them, the Partnership expects to increase capital through operations.

CGM will pay monthly interest to the Partnership on its allocable share of 80% of the average daily equity maintained in cash in the Master Fund's brokerage account at a 30-day U.S. Treasury bill rate determined by CGM and/or will place up to all of the Master Fund's assets in 90-day Treasury bills. The Partnership will receive 80% of its allocable share of the interest earned on the Treasury bills through its investments in other Partnerships and CGM will be paid 20% of the interest.

Brokerage commissions are calculated as a percentage of the Partnership's adjusted net asset value on the last day of each month and are affected by trading performance and redemptions. Accordingly, they must be compared in relation to the fluctuations in the monthly net asset values. Commissions and fees for the three months ended March 31, 2006 increased by $33,403 as compared to the corresponding period in 2005. The increased in brokerage commissions for the three months ended March 31, 2006 is due to an increase in average net assets during the period as compared to 2005.

Management fees are calculated as a percentage of the Partnership's net asset value as of the end of each month and are affected by trading performance and redemptions. Management fees for the three months ended March 31, 2006 increased by $23,169 as compared to the corresponding period in 2005. The increase in management fees for the three months ended March 31, 2006 is due to an increase in average net assets during the period as compared to 2005.

Incentive fees paid annually by the Partnership are based on the new trading profits of the Partnership as defined in the Limited Partnership Agreement. Trading performance for the three months ended March 31, 2006 and 2005 resulted in an incentive fee accrual of $410,808 and $0, respectively.

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Item 3.    Quantitative and Qualitative Disclosures about Market Risk

The Partnership is a speculative commodity pool. The market sensitive instruments held by it are acquired for speculative trading purposes, and all or substantially all of the Partnership's assets are subject to the risk of trading loss. Unlike an operating company, the risk of market sensitive instruments is integral, not incidental, to the Partnership's main line of business.

Market movements result in frequent changes in the fair value of the Partnership's open positions and, consequently, in its earnings and cash flow. The Partnership's market risk is influenced by a wide variety of factors, including the level and volatility of interest rates, exchange rates, equity price levels, the value of financial instruments and contracts, the diversification effects of the Partnership's open positions and the liquidity of the market in which it trades.

The Partnership rapidly acquires and liquidates both long and short positions in a wide range of different markets. Consequently, it is not possible to predict how a particular future market scenario will affect performance, and the Partnership's past performance is not necessarily indicative of its future results.

Value at Risk is a measure of the maximum amount which the Partnership could reasonably be expected to lose in a given market sector. However, the inherent uncertainty of the Partnership's speculative trading and the recurrence in the markets traded by the Partnership of market movements far exceeding expectations could result in actual trading or non-trading losses far beyond the indicated Value at Risk or the Partnership's experience to date (i.e., "risk of ruin"). In light of the foregoing as well as the risks and uncertainties intrinsic to all future projections, the inclusion of the quantification in this section should not be considered to constitute any assurance or representation that the Partnership's losses in any market sector will be limited to Value at Risk or by the Partnership's attempts to manage its market risk.

Exchange maintenance margin requirements have been used by the Partnership as the measure of its Value at Risk. Maintenance margin requirements are set by exchanges to equal or exceed the maximum losses reasonably expected to be incurred in the fair value of any given contract in 95%-99% of any one-day interval. Maintenance margin has been used rather than the more generally available initial margin, because initial margin includes a credit risk component, which is not relevant to Value at Risk.

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The following tables indicate the trading Value at Risk associated with the Partnership's investments in other Partnerships by market category as of March 31, 2006 and the highest, lowest and average values at any point during the three months ended March 31, 2006. All open position trading risk exposures have been included in calculating the figures set forth below. There have been no material changes in the trading Value at Risk information previously disclosed in the Partnership's Annual Report on Form 10-K for the year ended December 31, 2005.

As of March 31, 2006, Altis Master's total capitalization was $30,011,770. The Partnership owns 53.1% of Altis Master.

March 31, 2006
(Unaudited)

												Three Months Ended March 31, 2006
Market Sector				Value at Risk				% of Total Capitalization				High Value at Risk				Low Value at Risk				Average Value at Risk*
Commodity Index				$	51,600				0.17	%		$	51,600			$	11,600				30,837
Currencies:
– OTC					719,293				2.40	%			770,137				601,774				645,016
Energy					790,472				2.63	%			1,100,609				673,866				884,585
Grains					714,029				2.38	%			714,029				477,937				573,724
Indices					1,407,670				4.69	%			1,430,508				463,642				1,128,032
Interest Rates Non - -U.S.					745,268				2.48	%			755,229				383,142				511,197
Interest Rates U.S.					337,900				1.13	%			615,000				62,947				281,782
Livestock					107,496				0.36	%			136,860				63,296				69,598
Metals
– Exchange Traded					252,000				0.84	%			252,000				205,000				249,750
– OTC					768,861				2.56	%			768,861				395,820				645,915
Softs					560,112				1.87	%			616,986				485,990				521,841
Lumber					9,900				0.03	%			22,000				7,700				13,383
Total				$	6,464,601				21.54	%

*	Average month-end Values at risk

As of March 31, 2006, Aspect Master's total capitalization was $203,963,204. The Partnership owns 8.2% of Aspect Master.

March 31, 2006
(Unaudited)

												Three Months Ended March 31, 2006
Market Sector				Value at Risk				% of Total Capitalization				High Value at Risk				Low Value at Risk				Average Value at Risk*
Currencies:
– OTC Contracts				$	3,554,514				1.74	%		$	5,306,271			$	2,999,081			$	3,852,528
Energy					1,451,560				0.71	%			4,996,255				815,288				1,860,624
Grains					673,617				0.33	%			718,021				218,482				577,294
Indices					5,041,018				2.48	%			6,609,756				4,350,554				5,120,944
Interest Rates Non-U.S.					8,918,341				4.37	%			8,918,341				4,424,093				6,822,933
Interest Rates U.S.					2,952,900				1.45	%			4,241,200				1,528,250				2,616,417
Livestock					180,400				0.09	%			5,306,271				60,470				115,650
Metals
– Exchange Traded Contracts					628,750				0.31	%			1,319,500				515,750				606,500
– OTC Contracts					1,167,230				0.57	%			2,496,448				795,695				1,034,320
Softs					1,192,245				0.58	%			1,364,902				421,418				1,071,530
Totals				$	25,760,575				12.63	%

*	Average month-end Values at risk

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As of March 31, 2006, Campbell Master's total capitalization was $355,709,281. The Partnership owns 4.3% of Campbell Master.

March 31, 2006
(Unaudited)

												Three Months Ended March 31, 2006
Market Sector				Value at Risk				% of Total Capitalization				High Value at Risk				Low Value at Risk				Average Value at Risk*
Currencies:
– OTC				$	15,855,407				4.46	%		$	16,627,009			$	10,760,009				15,259,326
Energy					3,433,700				0.97	%			6,696,300				1,155,082				4,482,200
Indices					6,703,725				1.88	%			14,411,622				6,163,466				9,331,036
Interest Rates Non - -U.S.					2,941,882				0.83	%			6,533,524				2,496,984				3,086,782
Interest Rates U.S.					3,039,000				0.85	%			3,892,620				786,310				2,798,983
Metals
– Exchange					192,500				0.05	%			2,850,700				51,000				143,500
– OTC					553,550				0.16	%			822,970				279,433				556,950
Total				$	32,719,764				9.20	%

*	Average month-end Values at risk

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Item 4.    Controls and Procedures

The General Partner of the Partnership, with the participation of the General Partner's Chief Executive Officer and the Chief Financial Officer, has evaluated the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) with respect to the Partnership as of the end of the period covered by the report, and, based on this evaluation, has concluded that these disclosure controls and procedures are effective. Additionally, there were no significant changes in the Partnership's internal controls or in other factors that could significantly affect these controls during the registrant's last fiscal quarter, including any corrective actions with regard to significant deficiencies and material weaknesses.

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PART II. OTHER INFORMATION

Item 1.    Legal Proceedings

The following information supplements and amends our discussion set forth under Part 1, Item 3 "Legal Proceedings" in the Partnership's Annual Report on Form 10-K for the year ended December 31, 2005.

WorldCom, Inc.

In March 2006, the class action settlement in IN RE WORLDCOM, INC. SECURITIES LITIGATION became final, and the settlement amount was paid pursuant to the terms of the settlement agreement.

Research

On March 29, 2006, the court preliminarily approved Citigroup's settlement of IN RE SALOMON ANALYST AT&T LITIGATION. A final hearing on the settlement is scheduled for August 11, 2006.

IPO Antitrust Litigation

The underwriter defendants' motion in the Second Circuit to stay the issuance of the mandate remanding the cases to the district court pending the filing of a petition for writ of certiorari to the United States Supreme Court was granted on March 9, 2006, after the writ of certiorari was filed on March 8, 2006.

Item 1A. Risk Factors

There are no material changes from the risk factors set forth under Part I, Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2005.

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

The following chart sets forth the purchases of Redeemable Units by the Partnership.

Period				(a) Total Number of Units Purchased*				(b) Average Price Paid per Unit**				(c) Total Number of Units Purchased as Part of Publicly Announced Plans or Programs				(d) Maximum Number (or Approximate Dollar Value) of Units that May Yet Be Purchased Under the Plans or Programs
January 1, 2006 – January 31, 2006					326.0611			$	1,535.68				N/A				N/A
February 1, 2006 – February 28, 2006					121.1156			$	1,489.91				N/A				N/A
March 1, 2006 – March 31, 2006					98.9879			$	1,568.71				N/A				N/A
Total					546.1646			$	1,531.43				N/A				N/A

* Generally, Limited Partners are permitted to redeem their Redeemable Units as of the end of each month on 10 days' notice to the General Partner. Under certain circumstances, the General Partner can compel redemption but to date the General Partner has not exercised this right. Purchases of Redeemable Units by the Partnership reflected in the chart above were made in the ordinary course of the Partnership's business in connection with effecting redemptions for Limited Partners.

	** Redemptions of Redeemable Units are effected as of the last day of each month at the Net Asset Value per Redeemable Unit as of that day.

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Item 3.    Defaults Upon Senior Securities – None

Item 4.    Submission of Matters to a Vote of Security Holders – None

Item 5.    Other Information – None

Item 6.    Exhibits

The exhibits required to be filed by Item 601 of Regulation S-K are incorporated herein by reference to the exhibit index of the Partnership's Annual Report on Form 10-K for the year ended December 31, 2005.

Exhibit – 31.1 – Rule 13a-14(a)/15d-14(a) Certification
(Certification of President and Director).

Exhibit – 31.2 – Rule 13a-14(a)/15d-14(a) Certification
(Certification of Chief Financial Officer and Director).

Exhibit – 32.1 – Section 1350 Certification
(Certification of President and Director).

Exhibit – 32.2 – Section 1350 Certification
(Certification of Chief Financial Officer and Director).

Exhibit – 33.1 – Management Agreement among the Partnership, the General Partner and Altis Partners (Jersey) Limited. (file herein)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

SALOMON SMITH BARNEY GLOBAL DIVERSIFIED FUTURES FUND L.P.

By:				Citigroup Managed Futures LLC
				(General Partner)
By:				/s/ David J. Vogel
				David J. Vogel President and Director
Date:				May 12, 2006
By:				/s/ Daniel R. McAuliffe, Jr.
				Daniel R. McAuliffe, Jr. Chief Financial Officer and Director
Date:				May 12, 2006

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