Global Diversified Futures Fund (GDFF) 10-Q 2006 Q3 Quarterly report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

(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 September 30, 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

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 September 30, 2006 and December 31, 2005 (unaudited)			3
						Condensed Schedules of Investments at September 30, 2006 and December 31, 2005 (unaudited)			4 – 5
						Statements of Income and Expenses and Partners' Capital for the three and nine months ended September 30, 2006 and 2005 (unaudited)			6
						Statements of Cash Flows for the three and nine months ended September 30, 2006 and 2005 (unaudited)			7
						Notes to Financial Statements (unaudited)			8 – 13
			Item 2.			Management's Discussion and Analysis of Financial Condition and Results of Operations			14 – 16
			Item 3.			Quantitative and Qualitative Disclosures about Market Risk			17 – 19
			Item 4.			Controls and Procedures			20
PART II — Other Information									21

2

PART I

Item 1. Financial Statements

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

			September 30, 2006						December 31, 2005
Assets:
Investment in Partnerships, at fair value				$	43,033,839					$	47,537,531
Cash					27,606						24,949
				$	43,061,445					$	47,562,480
Liabilities and Partners' Capital:
Liabilities:
Accrued expenses:
Brokerage commissions				$	193,777					$	218,136
Management fees					62,921						70,024
Incentive fees					478,786						451,973
Other					28,161						28,965
Redemptions payable					333,712						235,979
					1,097,357						1,005,077
Partners' Capital:
General Partner, 1,524.2191 and 619.7983 Unit equivalents outstanding in 2006 and 2005					2,316,325						917,723
Limited Partners, 26,089.5223 and 30,823.4179 Redeemable Units of Limited Partnership Interest outstanding in 2006 and 2005, respectively					39,647,763						45,639,680
					41,964,088						46,557,403
				$	43,061,445					$	47,562,480

See accompanying Notes to Financial Statements.

3

Salomon Smith Barney
Global Diversified Futures Fund L.P.
Condensed Schedule of Investments
September 30, 2006
(Unaudited)

Investment in Partnerships			Fair Value						% of Partners' Capital
CMF Altis Partners Master Fund L.P.				$	16,333,291						38.92	%
CMF Aspect Master Fund L.P.					13,625,302						32.47
CMF Campbell Master Fund L.P.					13,075,246						31.16
Total fair value				$	43,033,839						102.55	%

Percentages are based on Partners' Capital unless otherwise indicated.

See accompanying Notes to Financial Statements.

4

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

Investment in Partnerships			Fair Value						% of Partners' Capital
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.

5

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

			Three Months Ended September 30,												Nine Months Ended September 30,
			2006						2005						2006						2005
Income:
Net gains (losses) on trading of commodity interests:
Realized gains (losses) on closed positions and foreign currencies				$	—					$	1,433,422					$	—					$	(246,788	)
Change in unrealized gains (losses) on open positions and investment in Partnerships					(948,646	)					2,320,454						4,543,094						5,787,432
					(948,646	)					3,753,876						4,543,094						5,540,644
Interest income					—						74,884						—						227,623
					(948,646	)					3,828,760						4,543,094						5,768,267
Expenses:
Brokerage commissions including clearing fees of $0, $5,914, $0 and $10,864, respectively					587,567						635,175						1,918,040						1,852,993
Management fees					190,560						197,692						617,256						570,126
Incentive fees					(95,666	)					16,312						478,786						195,898
Other					21,204						15,729						57,574						52,932
					703,665						864,908						3,071,656						2,671,949
Net income (loss)					(1,652,311	)					2,963,852						1,471,438						3,096,318
Additions—General Partner					—						—						1,500,000						—
Redemptions—Limited Partners					(1,144,937	)					(1,113,521	)					(7,564,753	)					(3,400,802	)
Net increase (decrease) in Partners' Capital					(2,797,248	)					1,850,331						(4,593,315	)					(304,484	)
Partners' Capital, beginning of period					44,761,336						44,154,354						46,557,403						46,309,169
Partners' Capital, end of period				$	41,964,088					$	46,004,685					$	41,964,088					$	46,004,685
Net Asset Value per Redeemable Unit 27,613.7414 and 32,108.7244 Redeemable Units outstanding at September 30, 2006 and 2005, respectively)				$	1,519.68					$	1,432.78					$	1,519.68					$	1,432.78
Net income (loss) per Redeemable Unit of Limited Partnership Interest and General Partner Unit equivalent				$	(58.34	)				$	91.17					$	39.00					$	98.09

See accompanying Notes to Financial Statements

6

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

			Three Months Ended September 30,												Nine Months Ended September 30,
			2006						2005						2006						2005
Cash flows from operating activities:
Net income (loss)				$	(1,652,311	)				$	2,963,852					$	1,471,438					$	3,096,318
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Changes in operating assets and liabilities:
Purchase of investments in Partnerships					—						—						(1,500,000	)					(33,550,215	)
Proceeds from sale of investments in Partnerships					1,763,048						1,334,687						9,286,102						3,580,269
Net unrealized (appreciation) depreciation on investment in Partnerships					1,388,165						(364,237	)					(3,282,410	)					(3,108,021	)
(Increase) decrease in restricted cash					—						(1,552,562	)					—						3,879,686
(Increase) decrease in net unrealized appreciation on open futures positions					—						(1,537,757	)					—						(823,382	)
(Increase) decrease in unrealized appreciation on open forward contracts					—						(413,257	)					—						1,855,860
(Increase) decrease in interest receivable					—						(6,795	)					—						35,366
Increase (decease) in unrealized depreciation on open forward contracts					—						203,517						—						(1,975,810	)
Accrued expenses:
Increase (decrease) in brokerage commissions					(14,132	)					8,520						(24,359	)					(8,431	)
Increase (decrease) in management fees					(4,417	)					3,227						(7,103	)					(2,511	)
Increase (decrease) in incentive fees					(95,666	)					16,312						26,813						(161,723	)
Increase (decrease) in other					(11,915	)					(19,900	)					(804	)					(10,550	)
Net cash provided by (used in) operating activities					1,372,772						635,607						5,969,677						(27,193,144	)
Cash flows from financing activities:
Proceeds from additions—General Partner					—						—						1,500,000						—
Payments for redemptions—Limited Partners					(1,362,209	)					(1,052,412	)					(7,467,020	)					(3,367,843	)
Net cash provided by (used in) financing activities					(1,362,209	)					(1,052,412	)					(5,967,020	)					(3,367,843	)
Net change in cash					10,563						(416,805	)					2,657						(30,560,987	)
Unrestricted cash, at beginning of period					17,043						8,003,951						24,949						38,148,133
Unrestricted cash, at end of period				$	27,606					$	7,587,146					$	27,606					$	7,587,146
Non cash financing activities:
Contribution of open commodity futures and forward positions				$	—					$	—					$	—					$	(1,253,281	)

See accompanying Notes to Financial Statements.

7

Salomon Smith Barney Global Diversified Futures Fund L.P.
Notes to Financial Statements
September 30, 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’’).

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 September 30, 2006 and December 31, 2005 and the results of its operations and its cash flows for the three and nine months ended September 30, 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.

8

Salomon Smith Barney Global Diversified Futures Fund L.P.
Notes to Financial Statements
September 30, 2006
(Unaudited)

2.    Financial Highlights:

Changes in Net Asset Value per Redeemable Unit of Limited Partnership Interest for the three and nine months ended September 30, 2006 and 2005 were as follows:

			Three Months Ended September 30,												Nine Months Ended September 30,
			2006						2005						2006						2005
Net realized and unrealized gains (losses)*				$	(54.12	)				$	95.96					$	76.18					$	115.88
Interest income					—						2.30						—						6.77
Expenses**					(4.22	)					(7.09	)					(37.18	)					(24.56	)
Increase (decrease) for the period					(58.34	)					91.17						39.00						98.09
Net Asset Value per Redeemable Unit, beginning of period					1,578.02						1,341.61						1,480.68						1,334.69
Net Asset Value per Redeemable Unit, end of period				$	1,519.68					$	1,432.78					$	1,519.68					$	1,432.78

*	Includes brokerage commissions

**	Excludes brokerage commissions

			Three Months Ended September 30,												Nine Months Ended September 30,
			2006						2005						2006						2005
Ratios to average net assets:***
Net investment loss before incentive fees****					(7.4	)%					(6.9	)%					(7.4	)%					(6.8	)%
Operating expenses					7.4	%					7.5	%					7.4	%					7.5	%
Incentive fees					(0.2	)					0.0						1.0						0.4
Total expenses					7.2	%					7.5	%					8.4	%					7.9	%
Total return:
Total return before incentive fees					(3.9	)%					6.8	%					3.8	%					7.8	%
Incentive fees					0.2						0.0	*****					(1.2	)					(0.5	)
Total return after incentive fees					(3.7	)%					6.8	%					2.6	%					7.3	%

***	Annualized (other than incentive fees)

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

*****	Due to rounding

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.

9

Salomon Smith Barney Global Diversified Futures Fund L.P.
Notes to Financial Statements
September 30, 2006
(Unaudited)

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

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 currently managed by Campbell, including the Partnership, 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 currently managed by Aspect, including the Partnership, 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 (Jersey) Limited (successor to Altis Partners Limited) using Altis's Diversified Portfolio 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 currently managed by Altis, including the Partnership, are permitted to be a limited partner of Altis Master. The General Partner and Altis believe that trading through this structure should promote efficiency and economy in the trading process. Expenses to the investors 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.

10

Salomon Smith Barney Global Diversified Futures Fund L.P.
Notes to Financial Statements
September 30, 2006
(Unaudited)

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.

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 September 30, 2006 the Partnership owns 4.1%, 6.9% and 40.9% 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.

			September 30, 2006
			Investments' Total Assets						Investments' Total Liabilities						Investments' Total Capital
Altis Master				$	40,764,711					$	966,621					$	39,798,090
Aspect Master					196,925,103						991,797						195,933,306
Campbell Master					331,655,712						13,975,205						317,680,507
Total				$	569,345,526					$	15,933,623					$	553,411,903

			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 is as shown in the following tables. The Partnership's share of the Funds' Net income (loss) is included in Change in unrealized gains (losses) on open positions and investment in Partnerships on the Partnership's Statement of Income and Expenses and Partners' Capital.

			September 30, 2006												For the three months ended September 30, 2006
Investment			% of Partnership's Net Assets						Fair Value						Income (Loss)						Expenses												Net Income (loss)						Investment Objective			Redemption Permitted
																					Commissions						Other
Altis Master					38.92	%				$	16,333,291					$	8,058					$	17,768					$	4,401					$	(14,111	)			Commodity Portfolio					Monthly
Aspect Master					32.47	%					13,625,302						(670,122	)					8,114						411						(678,647	)			Commodity Portfolio					Monthly
Campbell Master					31.16	%					13,075,246						(263,752	)					4,654						253						(268,659	)			Financials, Metals & Energy Portfolio					Monthly
Total										$	43,033,839					$	(925,816	)				$	30,536					$	5,065					$	(961,417	)

11

Salomon Smith Barney Global Diversified Futures Fund L.P.
Notes to Financial Statements
September 30, 2006
(Unaudited)

			September 30, 2006												For the nine months ended September 30, 2006
Investment			% of Partnership's Net Assets						Fair Value						Income (Loss)						Expenses												Net Income (loss)						Investment Objective			Redemption Permitted
																					Commissions						Other
Altis Master					38.92	%				$	16,333,291					$	3,866,295					$	71,785					$	19,078					$	3,775,432				Commodity Portfolio					Monthly
Aspect Master					32.47	%					13,625,302						787,010						28,396						2,852						755,762				Commodity Portfolio					Monthly
Campbell Master					31.16	%					13,075,246						24,555						11,626						805						12,124				Financials, Metals & Energy Portfolio					Monthly
Total										$	43,033,839					$	4,677,860					$	111,807					$	22,735					$	4,543,318

			December 31, 2005												For the three months ended September 30, 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						576,930						9,636						1,063						566,231				Commodity Portfolio					Monthly
Campbell Master					35.30	%					16,436,040						13,738						6,268						764						6,706				Financials, Metals & Energy Portfolio			Monthly
Total										$	47,537,531					$	590,668					$	15,904					$	1,827					$	572,937

			December 31, 2005												For the nine months ended September 30, 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						1,988,474						25,803						2,558						1,960,113				Commodity Portfolio					Monthly
Campbell Master					35.30	%					16,436,040						1,653,314						20,261						2,344						1,630,709				Financials, Metals & Energy Portfolio					Monthly
Total										$	47,537,531					$	3,641,788					$	46,064					$	4,902					$	3,590,822

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

12

Salomon Smith Barney Global Diversified Futures Fund L.P.
Notes to Financial Statements
September 30, 2006
(Unaudited)

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 Funds' 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 Funds have credit risk and concentration risk because the sole counterparty or broker with respect to the Funds' assets is CGM.

The General Partner monitors and controls the Funds' 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 Funds' 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 Funds mature within one year of September 30, 2006. However, due to the nature of the Funds' businesses, these instruments may not be held to maturity.

13

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 investments in the Funds and cash. The Funds' only assets are their equity in its commodity futures trading accounts, 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 third quarter of 2006.

The Partnership's capital consists of the capital contributions of the partners, as increased or decreased by its investment in the Funds, expenses, interest income, additions and redemptions of Redeemable Units and distributions of profits, if any.

For the nine months ended September 30, 2006, Partnership capital decreased 9.9% from $46,557,403 to $41,964,088. This decrease was attributable to the redemptions of 4,733.8956 Redeemable Units of Limited Partnership Interest resulting in an outflow of $7,564,753, which was partially offset by a net gain from operations of $1,471,438 and the additional sales of 904.4208 General Partner Units totalling $1,500,000. 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 U.S. generally accepted accounting principles 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 of the Funds (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 of the Funds.

Foreign currency contracts are those contracts where the Partnership/Funds agree 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. Investment in Partnerships is recorded at fair value based upon the Partnership's proportionate interest held.

Results of Operations

During the Partnership's third quarter of 2006 the Net Asset Value per Redeemable Unit decreased 3.7% from $1,578.02 to $1,519.68 as compared to an increase of 6.8% in the third quarter of 2005. The Partnership experienced a net trading loss before brokerage commissions and related fees in the third quarter of 2006 of $948,646. Losses were primarily attributable to the trading by the Funds of commodity futures in energy, U.S. and non-U.S. interest rates, metals and livestock and were partially offset by gains

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in currencies, grains, softs, lumber and indices. The Partnership experienced a net trading gain before brokerage commissions and related fees in the third quarter of 2005 of $3,753,876. Gains were primarily attributable to the trading of commodity futures in energy, grains, livestock, softs, metals and indices and were partially offset by losses in currencies, lumber and U.S. and non-U.S. interest rates.

The third quarter presented a challenging investment landscape for the Advisors. The Partnership was negatively impacted by a number of price trend reversals in both financial and commodity markets. Gains earned in currencies and equity indices were offset by losses in fixed income, metals, and energy.

In the currency sector, the Partnership posted modest gains as the dollar strengthened against the Japanese Yen on speculation that Japan's central bank would refrain from raising interest rates again this year. Trading in other major currencies was mixed for the quarter. Buoyant global equity markets were also beneficial for the fund as falling bond yields and energy prices supported global equity valuations. Advisors were also profitable in trading soft commodities, especially in sugar and cotton, as reports suggesting record production of new crops resulted in price declines.

Losses were taken in energy, fixed income and metals trading. In the energy markets, losses were accumulated due to unanticipated price declines across the petroleum complex. A series of unrelated events associated with favorable inventory data and moderated geopolitical concerns triggered a downward but non-orderly drop in crude prices. Losses were also realized in the fixed income markets for the quarter, primarily in July, as the Federal Reserve Chairman unexpectedly indicated that the campaign of raising interest rates was nearing its end. Gains from the industrial metals only partially offset losses in precious metals where prices reflected unfavorable trading ranges and sharp price reversals.

During the Partnership's nine months ended September 30, 2006 the Net Asset Value per Redeemable Unit increased 2.6% from $1,480.68 to $1,519.68 as compared to an increase of 7.3% during the nine months ended September 30, 2005. The Partnership experienced a net trading gain before brokerage commissions and related fees during the nine months ended September 30, 2006 of $4,543,094. Gains were primarily attributable to the trading by the Funds of commodity futures in U.S. and non-U.S. interest rates, metals, lumber and indices and were partially offset by losses in currencies, energy, grains, livestock and softs. The Partnership experienced a net trading gain before brokerage commissions and related fees during the nine months ended September 30, 2005 of $5,540,644. Gains were primarily attributable to the trading of commodity futures in energy, livestock, non-U.S. interest rates, metals and indices and were partially offset by losses in currencies, grains, softs and lumber.

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 Funds' brokerage account at a 30-day U.S. Treasury bill rate determined by CGM and/or will place up to all of the Funds' 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 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 September 30, 2006 decreased by $47,608 and increased by $65,047, for the nine months ended September 30, 2006, as compared to the corresponding periods in 2005. The decrease in brokerage commissions for the three months ended September 30, 2006 was due to lower average net assets as compared to the corresponding period in 2005. The increase in brokerage commissions for the nine months ended September 30, 2006 was due to a higher average net assets as compared to the corresponding period in 2005.

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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 September 30, 2006 decreased by $7,132 and increased by $47,130 for the nine months ended September 30, 2006, as compared to the corresponding periods in 2005. The decrease in management fees for the three months ended September 30, 2006 was due to lower average net assets as compared to the corresponding period in 2005. The increase in management fees for the nine months ended September 30, 2006 was due to a higher average net assets as compared to the corresponding period in 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 September 30, 2006 resulted in the reversal of an incentive fee accrual of $95,666 and an incentive fee accrual of $478,786 for the nine months ended September 30, 2006. Trading performance for the three and nine months ended September 30, 2005 resulted in an incentive fee accrual of $16,312 and $195,898, respectively.

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Item 3.    Quantitative and Qualitative Disclosures about Market Risk

All of the Partnership's assets are subject to the risk of trading loss through its investments in the Funds. The Funds are speculative commodity pools. The market sensitive instruments held by them are acquired for speculative trading purposes, and all or substantially all of the Funds' 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 Funds' main lines of business.

Market movements result in frequent changes in the fair value of the Funds' open positions and, consequently in their earnings and cash flow. The Funds' market risks are 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 Funds' open positions and the liquidity of the market in which they trade.

The Funds rapidly acquire and liquidate 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 Funds' past performances are not necessarily indicative of their future results.

Value at Risk is a measure of the maximum amount which the Funds could reasonably be expected to lose in a given market sector. However, the inherent uncertainty of the Funds' speculative trading and the recurrence in the markets traded by the Funds of market movements far exceeding expectations could result in actual trading or non-trading losses far beyond the indicated Value at Risk or the Funds' experiences 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 Funds' losses in any market sector will be limited to Value at Risk or by the Funds' attempts to manage their market risks.

Exchange maintenance margin requirements have been used by the Funds as the measure of their 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 September 30, 2006 and the highest, lowest and average values at any point during the three months ended September 30, 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 September 30, 2006, Altis Master's total capitalization was $39,798,090. The Partnership owns 40.9% of Altis Master.

September 30, 2006
(Unaudited)

															Three Months Ended September 30, 2006
Market Sector			Value at Risk						% of Total Capitalization						High Value at Risk						Low Value at Risk						Average Value at Risk*
Commodity Index				$	53,500						0.13	%				$	61,000					$	4,000					$	34,167
Currencies:
– Exchange Traded					606,083						1.52	%					941,862						544,388						670,873
Energy					1,760,800						4.42	%					1,760,800						236,400						1,047,346
Grains					348,202						0.88	%					804,907						248,134						339,793
Interest Rates U.S.					68,009						0.17	%					400,600						31,748						97,746
Interest Rates Non - -U.S.					749,146						1.88	%					827,131						399,697						583,824
Livestock					92,425						0.23	%					174,650						66,300						103,492
Metals:
– Exchange Traded					294,000						0.74	%					318,000						144,333						222,833
– OTC					735,569						1.85	%					835,693						384,690						626,502
Softs					527,762						1.33	%					756,510						346,202						504,879
Indices					1,601,425						4.02	%					1,831,935						544,760						1,091,007
Lumber					29,700						0.08	%					39,600						26,400						31,900
Totals				$	6,866,621						17.25	%

*	Average month-end Values at Risk

As of September 30, 2006, Aspect Master's total capitalization was $195,933,306. The Partnership owns 6.9% of Aspect Master.

September 30, 2006
(Unaudited)

															Three Months Ended September 30, 2006
Market Sector			Value at Risk						% of Total Capitalization						High Value at Risk						Low Value at Risk						Average Value at Risk*
Currencies:
– OTC				$	4,104,102						2.09	%				$	4,222,798					$	2,216,294					$	3,797,115
Energy					3,066,400						1.56	%					4,310,900						740,100						2,533,500
Grains					476,910						0.24	%					984,281						377,635						714,899
Interest Rates U.S.					132,381						0.07	%					2,011,350						70,748						758,344
Interest Rates Non-U.S.					2,900,765						1.48	%					10,270,797						2,878,685						5,365,014
Livestock					112,700						0.06	%					272,150						52,373						151,700
Metals:
– Exchange Traded					687,000						0.35	%					1,131,500						341,500						847,167
– OTC					1,980,610						1.01	%					2,925,433						1,035,707						2,050,168
Softs					977,909						0.50	%					1,733,252						824,088						1,118,053
Indices					6,867,871						3.51	%					8,758,977						207,377						5,651,007
Totals				$	21,306,648						10.87	%

*	Average month-end Values at Risk

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As of September 30, 2006, Campbell Master's total capitalization was $317,680,507. The Partnership owns 4.2% of Campbell Master.

September 30, 2006
(Unaudited)

															Three Months Ended September 30, 2006
Market Sector			Value at Risk						% of Total Capitalization						High Value at Risk						Low Value at Risk						Average Value at Risk*
Currencies:
– OTC				$	13,041,103						4.10	%				$	13,613,647					$	5,183,428					$	8,546,131
Energy					3,834,100						1.21	%					6,296,700						2,756,800						4,744,467
Interest Rates U.S.					410,829						0.13	%					1,620,310						199,533						629,917
Interest Rates Non - -U.S.					1,842,983						0.58	%					4,243,379						1,754,068						2,321,761
Metals:
– Exchange Traded					225,500						0.07	%					225,500						129,000						183,383
– OTC					1,160,142						0.37	%					1,212,500						805,520						986,106
Indices					9,569,298						3.01	%					9,569,298						1,935,462						5,920,076
Totals				$	30,083,955						9.47	%

*	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 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. There was no change in the Partnership's internal control over financial reporting during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Partnership's internal control over financial reporting.

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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 and under Part II, Item I, ‘‘Legal Proceedings’’ in the Partnership's Quarterly Report on Form 10-Q for the quarters ended March 31, 2006 and June 30, 2006.

Enron Corp.

In light of the settlement of the securities class action (Newby, et al. v. Enron Corp., et al.), the plaintiffs have agreed to dismiss the following lawsuits against Citigroup and its affiliates: California Public Employees' Retirement System v. Banc of America Securities LLC, et al., Headwaters Capital LLC v. Lay et al., and Variable Annuity Life Ins. Co. v. Credit Suisse First Boston Corp., et al. Plaintiffs in two other cases, which are not part of the Newby class, have also voluntarily dismissed their claims against Citigroup and its affiliates: Steiner v. Enron Corp., et al. and Town of New Hartford v. Lay, et al.

Research

On August 17, 2006, the United States District Court for the Southern District of New York approved the class action settlement of Citigroup and its affiliates in In Re Salomon Analyst AT&T Litigation, and on September 29, 2006 that same court approved the class action settlements in In Re Salomon Analyst Level 3 Litigation, In Re Salomon Analyst XO Litigation and In Re Salomon Analyst Williams Litigation.

On September 14, 2006, Citigroup and its affiliates settled all claims in Sturm, et al. v. Citigroup, et al. The settlement was covered by existing reserves.

On October 6, 2006, the United States Court of Appeals granted a review of the district court's decision certifying a plaintiff class in In Re Salomon Analyst Metromedia Litigation.

Adelphia Communications Corporation

Defendant banks in In Re Adelphia Communications Corporation Securities and Derivative Litigation, including the Citigroup Parties, have entered into settlement agreements with the Los Angeles County Employees Retirement Association and with The Division of Investment of the New Jersey Department of Treasury. The Citigroup Parties' share of the settlement was covered by existing reserves.

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.

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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
July 1, 2006 – July 31, 2006					281.4779					$	1,518.10						N/A						N/A
August 1, 2006 – August 31, 2006					250.6961					$	1,531.39						N/A						N/A
September 1, 2006 – September 30, 2006					219.5935					$	1,519.68						N/A						N/A
					751.7675					$	1,523.06						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.

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).

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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:			November 14, 2006
By:			/s/ Jennifer Magro
			Jennifer Magro Chief Financial Officer and Director
Date:			November 14, 2006

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