Global Diversified Futures Fund (GDFF) 10-Q 2007 Q2 Quarterly report

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United States
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

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

For the Quarterly Period Ended June 30, 2007

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

For the transition period from to .

Commission File Number 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 of principal executive offices) (Zip Code)
(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

As of July 31, 2007, 23,464.6698 Limited Partnership Redeemable Units were outstanding.

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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 June 30, 2007 and December 31, 2006 (unaudited)			3
						Schedules of Investments at June 30, 2007 and December 31, 2006 (unaudited)			4 – 5
						Statements of Income and Expenses and Partners’ Capital for the three and six months ended June 30, 2007 and 2006 (unaudited)			6
						Statements of Cash Flows for the three and six months ended June 30, 2007 and 2006 (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 – 18
			Item 4.			Controls and Procedures			19
PART II — Other Information									20

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Part I

Item 1. Financial Statements

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

			June 30, 2007						December 31, 2006
Assets:
Investment in Partnerships, at fair value				$	46,938,965					$	46,880,007
Cash					35,409						17,068
				$	46,974,374					$	46,897,075
Liabilities and Partners’ Capital:
Liabilities:
Accrued expenses:
Brokerage commissions				$	211,385					$	211,037
Management fees					68,166						68,491
Incentive fees					447,440						865,525
Other					36,651						24,942
Redemptions payable					497,896						480,913
					1,261,538						1,650,908
Partners’ Capital:
General Partner, 1,802.4014 and 1,524.2191 Unit equivalents outstanding in 2007 and 2006, respectively					3,252,722						2,550,140
Limited Partners, 23,527.9880 and 25,519.4771 Redeemable Units of Limited Partnership Interest outstanding in 2007 and 2006, respectively					42,460,114						42,696,027
					45,712,836						45,246,167
				$	46,974,374					$	46,897,075

See accompanying notes to financial statements.

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Salomon Smith Barney
Global Diversified Futures Fund L.P.
Schedule of Investments
June 30, 2007
(Unaudited)

Investment in Partnerships			Fair Value						% of Partners’ Capital
CMF Campbell Master Fund L.P.				$	13,798,190						30.18	%
CMF Aspect Master Fund L.P.					15,606,892						34.14
CMF Altis Partners Master Fund L.P.					17,533,883						38.36
Total fair value				$	46,938,965						102.68	%

See accompanying notes to financial statements.

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

Investment in Partnerships			Fair Value						% of Partners’ Capital
CMF Campbell Master Fund L.P.				$	14,310,965						31.63	%
CMF Aspect Master Fund L.P.					14,912,958						32.96
CMF Altis Partners Master Fund L.P.					17,656,084						39.02
Total fair value				$	46,880,007						103.61	%

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 June 30,												Six Months Ended June 30,
			2007						2006						2007						2006
Income:
Net gains on trading of commodity interests:
Change in unrealized gains on investment in Partnerships				$	7,873,998					$	1,454,380					$	5,343,559					$	5,491,740
Expenses:
Brokerage commissions					601,044						677,701						1,194,476						1,330,473
Management fees					193,597						216,896						385,283						426,696
Incentive fees					447,440						163,644						447,440						574,452
Other					23,103						20,079						45,664						36,370
					1,265,184						1,078,320						2,072,863						2,367,991
Net income					6,608,814						376,060						3,270,696						3,123,749
Additions—General Partner					430,679						1,500,000						430,679						1,500,000
Redemptions—Limited Partners					(1,169,566	)					(5,583,356	)					(3,234,706	)					(6,419,816	)
Net increase (decrease) in Partners’ Capital					5,869,927						(3,707,296	)					466,669						(1,796,067	)
Partners’ Capital, beginning of period					39,842,909						48,468,632						45,246,167						46,557,403
Partners’ Capital, end of period				$	45,712,836					$	44,761,336					$	45,712,836					$	44,761,336
Net Asset Value per Redeemable Unit 25,330.3894 and 28,365.5089 Redeemable Units outstanding at June 30, 2007 and 2006, respectively)				$	1,804.66					$	1,578.02					$	1,804.66					$	1,578.02
Net income per Redeemable Unit of Limited Partnership Interest and General Partner Unit equivalent				$	256.47					$	9.31					$	131.58					$	97.34

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 June 30,												Six Months Ended June 30,
			2007						2006						2007						2006
Cash flows from operating activities:
Net income				$	6,608,814					$	376,060					$	3,270,696					$	3,123,749
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Changes in operating assets and liabilities:
Purchase of investment in Partnerships					(430,679	)					(1,500,000	)					(430,679	)					(1,500,000	)
Proceeds from sale of investment in Partnerships					2,882,760						6,103,492						5,715,280						8,344,219
Net unrealized (appreciation) depreciation on investment in Partnerships					(7,873,998	)					(1,454,380	)					(5,343,559	)					(5,491,740	)
Accrued expenses:
Increase (decrease) in brokerage commissions					24,384						(14,272	)					348						(10,227	)
Increase (decrease) in management fees					7,924						(4,090	)					(325	)					(2,686	)
Increase (decrease) in incentive fees					447,440						163,644						(418,085	)					122,479
Increase (decrease) in other					(2,543	)					(5,181	)					11,709						11,111
Net cash provided by (used in) operating activities					1,664,102						3,665,273						2,805,385						4,596,905
Cash flows from financing activities:
Proceeds from additions—General Partner					430,679						1,500,000						430,679						1,500,000
Payments for redemptions—Limited Partners					(2,098,002	)					(5,187,655	)					(3,217,723	)					(6,104,811	)
Net cash provided by (used in) financing activities					(1,667,323	)					(3,687,655	)					(2,787,044	)					(4,604,811	)
Net change in cash					(3,221	)					(22,382	)					18,341						(7,906	)
Cash, at beginning of period					38,630						39,425						17,068						24,949
Cash, at end of period				$	35,409					$	17,043					$	35,409					$	17,043

See accompanying notes to financial statements.

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Salomon Smith Barney Global Diversified Futures Fund L.P.
Notes to Financial Statements
June 30, 2007
(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, a Delaware limited liability company, acts as the general partner (the ‘‘General Partner’’) of the Partnership. The Partnership’s commodity broker is Citigroup Global Markets (‘‘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.

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 June 30, 2007 and December 31, 2006 and the results of its operations and its cash flows for the three and six months ended June 30, 2007 and 2006. 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 (the ‘‘SEC’’) for the year ended December 31, 2006.

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.

Certain prior period amounts have been reclassified to conform to the presentation for the current period.

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Salomon Smith Barney Global Diversified Futures Fund L.P.
Notes to Financial Statements
June 30, 2007
(Unaudited)

2.    Financial Highlights:

Changes in Net Asset Value per Redeemable Unit of Limited Partnership Interest for the three and six months ended June 30, 2007 and 2006 were as follows:

			Three Months Ended June 30,												Six Months Ended June 30,
			2007						2006						2007						2006
Net realized and unrealized gains *				$	282.34					$	21.88					$	165.42					$	130.30
Expenses **					(25.87	)					(12.57	)					(33.84	)					(32.96	)
Increase for the year					256.47						9.31						131.58						97.34
Net asset Value per Redeemable Unit, beginning of period					1,548.19						1,568.71						1,673.08						1,480.68
Net asset value per Redeemable Unit, end of period ***				$	1,804.66					$	1,578.02					$	1,804.66					$	1,578.02

* Includes brokerage commissions

** Excludes brokerage commissions

			Three Months Ended June 30,												Six Months Ended June 30,
			2007						2006						2007						2006
Ratios to Average Net Assets:***
Net investment loss before incentive fees****					(7.7	)%					(7.6	)%					(7.5	)%					(7.4	)%
Operating expense					7.7	%					7.6	%					7.5	%					7.4	%
Incentive fees					1.0	%					0.3	%					1.0	%					1.0	%
Total expenses					8.7	%					7.9	%					8.5	%					8.4	%
Total return:
Total return before incentive fees					17.7	%					1.0	%					8.9	%					7.9	%
Incentive fees					(1.1	)%					(0.4	)%					(1.0	)%					(1.3	)%
Total return after incentive fees					16.6	%					0.6	%					7.9	%					6.6	%

*** Annualized (other than incentive fees)

**** 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. However, the Partnership investments are in other Partnerships. The results of the Partnership’s trading activities (resulting from its investment in other Partnerships) 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.

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Salomon Smith Barney Global Diversified Futures Fund L.P.
Notes to Financial Statements
June 30, 2007
(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 are shown in the statement of income and expenses and partners capital.

4.    Investment in Partnerships:

On January 1, 2005, the assets allocated to Campbell for trading were invested in 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 of $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 ‘‘FME’’ Portfolio, Campbells’ proprietary trading program, to invest together in one trading vehicle. The General Partner is also 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 believ e 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.

On March 1, 2005, the assets allocated to Aspect for trading were invested in 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 of $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 Portfolio Program, to invest together in one trading vehicle. The General Partner is also 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 t o 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 Partners (Jersey) Ltd. (‘‘Altis’’) for trading were invested in 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 of $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 using Altis’s Diversified Portfolio Program, Altis’ proprietary trading program to invest together in one trading vehicle. The General Partner is also 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 t hrough 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.

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 Redeemable Unit of Limited Partnership

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Salomon Smith Barney Global Diversified Futures Fund L.P.
Notes to Financial Statements
June 30, 2007
(Unaudited)

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.

At June 30, 2007, the Partnership owned 4.4%, 6.8% and 26.6% of Campbell Master, Aspect Master and Altis Master, respectively. At December 31, 2006, the Partnership owned 4.4%, 7.0% and 38.5% of Campbell Master, Aspect Master and Altis Master, respectively. The performance of the Partnership is directly affected by the performance of the Funds. Campbell, Aspect and Altis intend 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 Capital for the Funds is shown in the following tables.

			June 30, 2007
			Total Assets						Total Liabilities						Total Capital
Campbell Master				$	319,173,792					$	9,367,825					$	309,805,967
Aspect Master					233,940,188						4,408,894						229,531,294
Altis Master					67,190,881						1,549,094						65,641,787
Total				$	620,304,861					$	15,325,813					$	604,979,048

			December 31, 2006
			Total Assets						Total Liabilities						Total Capital
Campbell Master				$	338,859,002					$	11,768,612					$	327,090,390
Aspect Master					214,046,989						2,288,076						211,758,913
Altis Master					46,569,333						842,141						45,727,192
Total				$	599,475,324					$	14,898,829					$	584,576,495

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.

			June 30, 2007												For the three months ended June 30, 2007
																					Expenses
Investment			% of Partnership’s Net Assets						Fair Value						Income (Loss)						Commissions						Other						Net Income (Loss)						Investment Objective			Redemptions Permitted
Campbell Master					30.18	%				$	13,798,190					$	1,846,360					$	3,101					$	522					$	1,842,737				FME Portfolio					Monthly
Aspect Master					34.14	%					15,606,892						2,304,101						7,696						493						2,295,912				Commodity Portfolio					Monthly
Altis Master					38.36	%					17,533,883						3,747,259						9,418						2,492						3,735,349				Commodity Portfolio					Monthly
Total										$	46,938,965					$	7,897,720					$	20,215					$	3,507					$	7,873,998

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Salomon Smith Barney Global Diversified Futures Fund L.P.
Notes to Financial Statements
June 30, 2007
(Unaudited)

			June 30, 2007												For the six months ended June 30, 2007
																					Expenses
Investment			% of Partnership’s Net Assets						Fair Value						Income (Loss)						Commissions						Other						Net Income (Loss)						Investment Objective			Redemptions Permitted
Campbell Master					30.18	%				$	13,798,190					$	1,159,793					$	7,407					$	949					$	1,151,437				FME Portfolio					Monthly
Aspect Master					34.14	%					15,606,892						1,692,742						15,452						1,079						1,676,211				Commodity Portfolio					Monthly
Altis Master					38.36	%					17,533,883						2,546,457						25,221						5,325						2,515,911				Commodity Portfolio					Monthly
Total										$	46,938,965					$	5,398,992					$	48,080					$	7,353					$	5,343,559

			December 31. 2006												For the three months ended June 30, 2006
																					Expenses
Investment			% of Partnership’s Net Assets						Fair Value						Income (Loss)						Commissions						Other						Net Income (Loss)						Investment Objective			Redemptions Permitted
Campbell Master					31.63	%				$	14,310,965					$	(807,066	)				$	2,592					$	265					$	(809,923	)			FME Portfolio					Monthly
Aspect Master					32.96	%					14,912,958						305,231						11,383						1,044						292,804				Commodity Portfolio					Monthly
Altis Master					39.02	%					17,656,084						2,000,332						23,166						5,667						1,971,499				Commodity Portfolio					Monthly
Total										$	46,880,007					$	1,498,497					$	37,141					$	6,976					$	1,454,380

			December 31, 2006												For the six months ended June 30, 2006
																					Expenses
Investment			% of Partnership’s Net Assets						Fair Value						Income (Loss)						Commissions						Other						Net Income (Loss)						Investment Objective			Redemptions Permitted
Campbell Master					31.63	%				$	14,310,965					$	288,307					$	6,972					$	552					$	280,783				FME Portfolio					Monthly
Aspect Master					32.96	%					14,912,958						1,444,136						20,282						2,441						1,421,413				Commodity Portfolio					Monthly
Altis Master					39.02	%					17,656,084						3,858,237						54,016						14,677						3,789,544				Commodity Portfolio					Monthly
Total										$	46,880,007					$	5,590,680					$	81,270					$	17,670					$	5,491,740

5.    Financial Instrument Risks:

In the normal course of its business, the Partnership, through its investment in the Funds, is a 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

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Salomon Smith Barney Global Diversified Futures Fund L.P.
Notes to Financial Statements
June 30, 2007
(Unaudited)

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 Funds 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 credit risk and concentration risk because the sole counterparty or broker with respect to the 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 June 30, 2007. However, due to the nature of the Funds’ 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 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 second quarter of 2007.

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 six months ended June 30, 2007, Partnership capital increased 1.0% from $45,246,167 to $45,712,836. This increase was attributable to a net income from operations of $3,270,696 coupled with the addition of 278.1823 General Partner equivalent units totaling $430,679 which was partially offset by the redemptions of 1,991.4891 Redeemable Units of Limited Partnership Interest resulting in an outflow of $3,234,706. 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, disclosure of contingent assets and liabilities at the date of the financial statements and accompanying notes. Actual results could differ from these estimates.

The fair value of the Partnership’s investment in the Funds’ reflects the Partnership’s proportional interest in the Funds.

All commodity interests of the Partnership are held by the Funds’, (including derivative financial instruments and derivative commodity instruments) and 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 i s 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.

The Partnership may purchase and write (sell) options. An option is a contract allowing, but not requiring, its holder to buy (call) or sell (put) a specific or standard commodity or financial instrument at a specified price during a specified time period. The option premium is the total price paid or received for the option contract. When the Partnership writes an option, the premium received is recorded as a liability in the statements of financial condition and marked to market daily. When the Partnership purchases an option, the premium paid is recorded as an asset in the Statements of Financial Condition and marked to market daily.

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In July 2006, the Financial Accounting Standards Board (the ‘‘FASB’’) the FASB released FASB Interpretation No. 48 ‘‘Accounting for Uncertainty in Income Taxes’’ (FIN 48).  FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements.  FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Partnership’s tax returns to determine whether the tax positions are ‘‘more-likely-than-not’’ of being sustained by the applicable tax authority.  Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year.  The Partnership has adopted FIN 48 as of January 1, 2007 and the application of this standard did not impact the financial statements.

In September 2006, the FASB issued Statement of Financial Accounting Standards (‘‘SFAS’’) No. 157, Fair Value Measurements. This accounting standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and the interim periods within those fiscal years. As of June 30, 2007, the Partnership is still evaluating the impact the adoption of SFAS No. 157 will have on the financial statement amounts; however, additional disclosures will be required about the inputs used to develop the measurements and the effect of certain measurements on changes in Partners’ Capital for the period.

Results of Operations

During the Partnership’s second quarter of 2007, the Net Asset Value per Redeemable Unit increased 16.6% from $1,548.19 to $1,804.66, as compared to an increase of 0.6% in the second quarter of 2006. The Partnership experienced an unrealized gain, through its investments in the Funds’ before brokerage commissions and related fees in the second quarter of 2007 of $7,873,998. Gains were primarily attributable to the trading by the Funds’ of commodity futures in currencies, energy, U.S. and non-U.S. interest rates, metals, softs and indices and were partially offset by losses in grains, lumber and livestock. The Partnership experienced an unrealized gain, through its investments in the Funds’ before brokerage commissions and related fees in the second quarter of 2006 of $1,454,380. Gains were primarily attributable to the trading by the Funds’ of commodity futures in energy, U.S and non-U.S. interest rates, metals and lumber and were p artially offset by losses in currencies, grains, livestock, softs and indices.

Favorable trading conditions during the second quarter, especially in the financial sectors, provided gains for the Partnership. Profits earned in global and U.S. fixed income markets, equity indices and currency were more than sufficient to offset small losses accumulated in trading grains and livestock.

The global economy remained stable in the quarter as relatively low interest rates and high levels of liquidity in the capital markets were the backdrop to the highest corporate activities in recent history. Gains were realized from trading in fixed income markets domestically and globally on stronger than expected economic data and increased inflationary pressures. Equity indices added to gains for the quarter as the global equity rally continued unabated. Profits were also earned in trading currency as trends in Japanese yen, the New Zealand dollar and the Pound Sterling persisted.

Slightly offsetting gains were losses in grains and livestock. Losses were also accumulated from trading wheat as prices fell as a spring freeze lowered supply expectations early in the quarter. Corn prices also remained directionless. In livestock, prices of hog futures declined to the lowest levels in more than three months due to a drop in corn prices, reducing the likelihood that farmers will thin herds to reduce feed costs. Cattle futures prices were also dominated by sharp reversals, resulting in losses for the sector.

During the Partnership’s six months ended June 30, 2007, the Net Asset Value per Redeemable Unit increased 7.9% from $1,673.08 to $1,804.66, as compared to an increase of 6.6% during the six months ended June 30, 2006. The Partnership experienced an unrealized gain, through its investments in the Funds’ before brokerage commissions and related fees during the six months ended June 30, 2007 of $5,343,559. Gains were primarily attributable to the trading by the Funds’ of commodity futures in currencies, grains, U.S. and non-U.S. interest rates, metals, softs, lumber and indices and were partially offset by losses in energy and livestock. The Partnership experienced an unrealized gain, through its investments in the Funds’ before brokerage commissions and related fees during the six months ended

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June 30, 2006 of $5,491,740. Gains were primarily attributable to the trading by the Funds’ of commodity futures in U.S. and non-U.S. interest rates, metals and indices and were partially offset by losses in currencies, energy, grains, livestock, 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 and six months ended June 30, 2007 decreased by $76,657 and $135,997, respectively, as compared to the corresponding periods in 2006. The decrease in brokerage commissions for the three and six months ended June 30, 2007 was due to lower average net assets as compared to the corresponding periods in 2006.

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 and six months ended June 30, 2007 decreased by $23,299 and $41,413, respectively, as compared to the corresponding periods in 2006. The decrease in management fees for the three and six months ended June 30, 2007 was due to lower average net assets as compared to the corresponding periods in 2006.

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 and six months ended June 30, 2007 resulted in an incentive fee accrual of $447,440. Trading performance for the three and six months ended June 30, 2006 resulted in an incentive fee acrrual of $163,644 and $574,452, 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 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 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.

The following tables indicate the trading Value at Risk associated with the Partnership’s investments in the Funds’ by market category as of June 30, 2007 and the highest, lowest and average values at any point during the three months ended June 30, 2007. 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, 2006.

As of June 30, 2007, Campbell Master’s total capitalization was $309,805,967. The Partnership owned 4.4% of Campbell Master.

June 30, 2007
(Unaudited)

															Three Months Ended June 30, 2007
Market Sector			Value at Risk						% of Total Capitalization						High Value at Risk						Low Value at Risk						Average Value at Risk*
Currencies:
– OTC Contracts				$	8,078,023						2.61	%				$	11,367,341					$	6,780,223					$	8,267,143
Energy					969,350						0.31	%					969,350						357,600						735,117
Interest Rates U.S.					4,120,200						1.33	%					4,293,650						53,207						2,943,000
Interest Rates Non-U.S.					7,860,338						2.54	%					10,281,295						3,366,038						8,412,667
Metals:
– Exchange Traded Contracts					296,000						0.10	%					390,000						124,000						299,333
– OTC Contracts					1,143,021						0.37	%					2,315,924						854,405						1,303,427
Indices					5,742,025						1.85	%					10,594,273						5,347,848						8,194,370
Total				$	28,208,957						9.11	%

* Average month-end Values at Risk

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As of June 30, 2007, Aspect Master’s total capitalization was $229,531,294. The Partnership owned 6.8% of Aspect Master.

June 30, 2007
(Unaudited)

															Three Months Ended June 30, 2007
Market Sector			Value at Risk						% of Total Capitalization						High Value at Risk						Low Value at Risk						Average Value at Risk*
Currencies:
– OTC Contracts				$	6,515,051						2.84	%				$	6,845,415					$	1,442,322					$	4,009,357
Energy					1,030,450						0.45	%					1,462,150						227,012						600,308
Grains					425,485						0.19	%					621,635						178,578						375,019
Interest Rates U.S.					1,631,300						0.71	%					1,793,250						353,750						1,342,633
Interest Rates Non-U.S.					6,565,535						2.86	%					7,251,434						3,124,428						6,120,581
Livestock					40,750						0.02	%					84,405						12,550						44,370
Metals:
– Exchange Traded Contracts					352,250						0.15	%					1,020,250						352,250						684,500
– OTC Contracts					1,145,094						0.50	%					3,084,837						1,145,094						2,142,578
Softs					1,009,708						0.44	%					1,265,792						950,198						1,066,595
Indices					5,892,497						2.56	%					7,736,923						3,145,113						6,238,276
Total				$	24,608,120						10.72	%

* Average month-end Values at Risk

As of June 30, 2007, Altis Master’s total capitalization was $65,641,787. The Partnership owned 26.6% of Altis Master.

June 30, 2007
(Unaudited)

															Three Months Ended June 30, 2007
Market Sector			Value at Risk						% of Total Capitalization						High Value at Risk						Low Value at Risk						Average Value at Risk*
Currencies:
– Exchange Traded Contracts				$	761,425						1.16	%				$	1,216,483					$	637,693					$	814,561
Energy					2,433,233						3.71	%					2,545,683						916,628						1,856,766
Grains					698,428						1.06	%					689,246						209,371						450,356
Interest Rates U.S.					594,550						0.91	%					626,028						122,275						478,780
Interest Rates Non-U.S.					1,058,209						1.61	%					1,133,841						640,048						1,060,953
Livestock					55,810						0.09	%					155,950						55,810						95,170
Metals:
– Exchange Traded Contracts					334,380						0.51	%					420,250						145,860						337,147
– OTC Contracts					1,731,510						2.64	%					1,749,757						785,461						1,478,475
Softs					557,935						0.84	%					653,532						512,328						572,048
Indices					2,476,456						3.77	%					2,996,649						1,224,245						2,290,544
Lumber					7,150						0.01	%					53,300						7,150						28,783
Total				$	10,709,086						16.31	%

* Average month-end Values at Risk

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Item 4.    Controls and Procedures.

The Partnership’s disclosure controls and procedures are designed to ensure that information required to be disclosed under the Exchange Act is accumulated and communicated to management, including the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) of the General Partner, to allow for timely decisions regarding required disclosure and appropriate SEC filings.

Management is responsible for ensuring that there is an adequate and effective process for establishing, maintaining and evaluating disclosure controls and procedures for the Partnership’s external disclosures.

The General Partner’s CEO and CFO have evaluated the effectiveness of the Partnership’s disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of June 30, 2007 and, based on that evaluation, the CEO and CFO have concluded that at that date the Partnership’s disclosure controls and procedures were effective.

The Partnership’s internal control over financial reporting is a process under the supervision of the General Partner’s CEO and CFO to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with generally accepted accounting principles. These controls include policies and procedures that:

•	pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Partnership;

•	provide reasonable assurance that (i) transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and (ii) the Partnership’s receipts are handled and expenditures are made only pursuant to authorizations of the General Partner; and

•	provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Partnership’s assets that could have a material effect on the financial statements.

There were no changes in the Partnership’s internal control over financial reporting during the fiscal quarter ended June 30, 2007 that materially affected, or are 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 I, Item 3 ‘‘Legal Proceedings’’ in our Annual Report on Form 10-K for the fiscal year ended December 31, 2006, as updated by our Quarterly Report on Form 10-Q for the quarter ended March 31, 2007.

Research

Customer Class Actions.

On May 3, 2007, the District Court remanded DISHER V. CITIGROUP GLOBAL MARKETS, INC., to Illinois state court.  On June 13, 2007, Citigroup moved in state court to dismiss the action.

Mutual Funds

In May 2007, CGMI finalized its settlement agreement with the NYSE and the New Jersey Bureau of Securities on the matter related to its market-timing practices prior to September 2003.

IPO Securities Litigation

On May 18, 2007, the Second Circuit denied plaintiffs’ petition for rehearing en banc of the Second Circuit’s decision reversing the district court’s class certification.

IPO Antitrust Litigation

On June 18, 2007, the United States Supreme Court ruled that the securities law precludes application of the antitrust laws to the claims asserted by plaintiffs, effectively terminating the litigation.

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, 2006, and under Part II, Item 1A, ‘‘Risk Factors’’ in the Partnership’s Quarterly Report ended March 31, 2007.

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
April 1, 2007 – April 30, 2007					256.0283					$	1,618.61						N/A						N/A
May 1, 2007 – May 31, 2007					150.9523					$	1,704.25						N/A						N/A
June 1, 2007 – June 30, 2007					275.8949					$	1,804.66						N/A						N/A
					682.8755					$	1,709.17

* 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, 2006.

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/ Jerry Pascucci
			Jerry Pascucci President and Director
Date:			August 14, 2007
By:			/s/ Jennifer Magro
			Jennifer Magro Chief Financial Officer and Director
Date:			August 14, 2007

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