Global Diversified Futures Fund (GDFF) 10-Q 2007 Q3 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 September 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 October 31, 2007, 21,956.6330 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 September 30, 2007 and December 31, 2006 (unaudited)			3
						Schedules of Investments at September 30, 2007 and December 31, 2006 (unaudited)			4 – 5
						Statements of Income and Expenses and Partners’ Capital for the three and nine months ended September 30, 2007 and 2006 (unaudited)			6
						Statements of Cash Flows for the three and nine months ended September 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 – 21

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Part I

Item 1. Financial Statements

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

			September 30, 2007						December 31, 2006
Assets:
Investment in Partnerships, at fair value				$	39,908,790					$	46,880,007
Cash					29,166						17,068
				$	39,937,956					$	46,897,075
Liabilities and Partners’ Capital:
Liabilities:
Accrued expenses:
Brokerage commissions				$	179,721					$	211,037
Management fees					57,792						68,491
Incentive fees					94,459						865,525
Other					33,280						24,942
Redemptions payable					250,694						480,913
					615,946						1,650,908
Partners’ Capital:
General Partner, 1,802.4014 and 1,524.2191 Unit equivalents outstanding in 2007 and 2006, respectively					2,963,454						2,550,140
Limited Partners, 22,113.5519 and 25,519.4771 Redeemable Units of Limited Partnership Interest outstanding in 2007 and 2006, respectively					36,358,556						42,696,027
					39,322,010						45,246,167
				$	39,937,956					$	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
September 30, 2007
(Unaudited)

Investment in Partnerships			Fair Value						% of Partners’ Capital
CMF Campbell Master Fund L.P.				$	10,958,839						27.87	%
CMF Aspect Master Fund L.P.					13,525,755						34.40
CMF Altis Partners Master Fund L.P.					15,424,196						39.22
Total fair value				$	39,908,790						101.49	%

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 September 30,												Nine Months Ended September 30,
			2007						2006						2007						2006
Income:
Net gains (losses) on trading of commodity interests:
Change in net unrealized gains (losses) on investment in Partnerships				$	(3,746,118	)				$	(948,646	)				$	1,597,441					$	4,543,094
Expenses:
Brokerage commissions					551,325						587,567						1,745,800						1,918,040
Management fees					177,211						190,560						562,494						617,256
Incentive fees					(352,981	)					(95,666	)					94,459						478,786
Other					40,239						21,204						85,904						57,574
					415,794						703,665						2,488,657						3,071,656
Net income (loss)					(4,161,912	)					(1,652,311	)					(891,216	)					1,471,438
Additions—General Partner					—						—						430,679						1,500,000
Redemptions—Limited Partners					(2,228,914	)					(1,144,937	)					(5,463,620	)					(7,564,753	)
Net decrease in Partners’ Capital					(6,390,826	)					(2,797,248	)					(5,924,157	)					(4,593,315	)
Partners’ Capital, beginning of period					45,712,836						44,761,336						45,246,167						46,557,403
Partners’ Capital, end of period				$	39,322,010					$	41,964,088					$	39,322,010					$	41,964,088
Net Asset Value per Redeemable Unit 23,915.9533 and 27,613.7414 Redeemable Units outstanding at September 30, 2007 and 2006, respectively)				$	1,644.17					$	1,519.68					$	1,644.17					$	1,519.68
Net income (loss) per Redeemable Unit of Limited Partnership Interest and General Partner Unit equivalent				$	(160.49	)				$	(58.34	)				$	(28.91	)				$	39.00

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 September 30,												Nine Months Ended September 30,
			2007						2006						2007						2006
Cash flows from operating activities:
Net income (loss)				$	(4,161,912	)				$	(1,652,311	)				$	(891,216	)				$	1,471,438
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Changes in operating assets and liabilities:
Purchase of investment in Partnerships					—						—						(430,679	)					(1,500,000	)
Proceeds from sale of investment in Partnerships					3,284,057						2,202,567						8,999,337						10,546,786
Net unrealized (appreciation) depreciation on investment in Partnerships					3,746,118						948,646						(1,597,441	)					(4,543,094	)
Accrued expenses:
Increase (decrease) in brokerage commissions					(31,664	)					(14,132	)					(31,316	)					(24,359	)
Increase (decrease) in management fees					(10,374	)					(4,417	)					(10,699	)					(7,103	)
Increase (decrease) in incentive fees					(352,981	)					(95,666	)					(771,066	)					26,813
Increase (decrease) in other					(3,371	)					(11,915	)					8,338						(804	)
Net cash provided by operating activities					2,469,873						1,372,772						5,275,258						5,969,677
Cash flows from financing activities:
Proceeds from additions—General Partner					—						—						430,679						1,500,000
Payments for redemptions—Limited Partners					(2,476,116	)					(1,362,209	)					(5,693,839	)					(7,467,020	)
Net cash used in financing activities					(2,476,116	)					(1,362,209	)					(5,263,160	)					(5,967,020	)
Net change in cash					(6,243	)					10,563						12,098						2,657
Cash, at beginning of period					35,409						17,043						17,068						24,949
Cash, at end of period				$	29,166					$	27,606					$	29,166					$	27,606

See accompanying notes to financial statements.

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Salomon Smith Barney Global Diversified Futures Fund L.P.
Notes to Financial Statements
September 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 September 30, 2007 and December 31, 2006 and the results of its operations, changes in Partners’ capital and its cash flows for the three and nine months ended September 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
September 30, 2007
(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, 2007 and 2006 were as follows:

			Three Months Ended September 30,												Nine Months Ended September 30,
			2007						2006						2007						2006
Net realized and unrealized gains (losses) *				$	(165.49	)				$	(54.12	)				$	(0.07	)				$	76.18
Expenses **					5.00						(4.22	)					(28.84	)					(37.18	)
Increase (decrease) for the period					(160.49	)					(58.34	)					(28.91	)					39.00
Net Asset Value per Redeemable Unit, beginning of period					1,804.66						1,578.02						1,673.08						1,480.68
Net Asset Value per Redeemable Unit, end of period				$	1,644.17					$	1,519.68					$	1,644.17					$	1,519.68

* Includes brokerage commissions

** Excludes brokerage commissions

			Three Months Ended September 30,												Nine Months Ended September 30,
			2007						2006						2007						2006
Ratios to Average Net Assets:***
Net investment loss before incentive fees****					(7.4	)%					(7.4	)%					(7.5	)%					(7.4	)%
Operating expense					7.4	%					7.4	%					7.5	%					7.4	%
Incentive fees					(1.0	)%					(0.2	)%					0.2	%					1.0	%
Total expenses					6.4	%					7.2	%					7.7	%					8.4	%
Total return:
Total return before incentive fees					(9.7	)%					(3.9	)%					(1.5	)%					3.8	%
Incentive fees					0.8	%					0.2	%					(0.2	)%					(1.2	)%
Total return after incentive fees					(8.9	)%					(3.7	)%					(1.7	)%					2.6	%

*** 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
September 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
September 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 September 30, 2007, the Partnership owned 4.4%, 6.4% and 23.6% 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.

			September 30, 2007
			Total Assets						Total Liabilities						Total Capital
Campbell Master				$	267,726,108					$	20,662,809					$	247,063,299
Aspect Master					220,281,649						9,700,129						210,581,520
Altis Master					66,822,826						1,710,299						65,112,527
Total				$	554,830,583					$	32,073,237					$	522,757,346

			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.

			September 30, 2007												For the three months ended September 30, 2007
																					Expenses
Fund			% of Partnership’s Net Assets						Fair Value						Income (Loss)						Commissions						Other						Net Income (Loss)						Investment Objective			Redemptions Permitted
Campbell Master					27.87	%				$	10,958,839					$	(1,922,898	)				$	2,579					$	530					$	(1,926,007	)			FME Portfolio					Monthly
Aspect Master					34.40	%					13,525,755						(1,014,816	)					7,604						452						(1,022,872	)			Commodity Portfolio					Monthly
Altis Master					39.22	%					15,424,196						(781,491	)					13,423						2,325						(797,239	)			Commodity Portfolio					Monthly
Total										$	39,908,790					$	(3,719,205	)				$	23,606					$	3,307					$	(3,746,118	)

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

			September 30, 2007												For the nine months ended September 30, 2007
																					Expenses
Fund			% of Partnership’s Net Assets						Fair Value						Income (Loss)						Commissions						Other						Net Income (Loss)						Investment Objective			Redemptions Permitted
Campbell Master					27.87	%				$	10,958,839					$	(763,105	)				$	9,986					$	1,479					$	(774,570	)			FME Portfolio					Monthly
Aspect Master					34.40	%					13,525,755						677,926						23,056						1,531						653,339				Commodity Portfolio					Monthly
Altis Master					39.22	%					15,424,196						1,764,966						38,644						7,650						1,718,672				Commodity Portfolio					Monthly
Total										$	39,908,790					$	1,679,787					$	71,686					$	10,660					$	1,597,441

			December 31. 2006												For the three months ended September 30, 2006
																					Expenses
Fund			% 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					$	(263,752	)				$	4,654					$	253					$	(268,659	)			FME Portfolio					Monthly
Aspect Master					32.96	%					14,912,958						(657,351	)					8,114						411						(665,876	)			Commodity Portfolio					Monthly
Altis Master					39.02	%					17,656,084						8,058						17,768						4,401						(14,111	)			Commodity Portfolio					Monthly
Total										$	46,880,007					$	(913,045	)				$	30,536					$	5,065					$	(948,646	)

			December 31, 2006												For the nine months ended September 30, 2006
																					Expenses
Fund			% 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					$	24,555					$	11,626					$	805					$	12,124				FME Portfolio					Monthly
Aspect Master					32.96	%					14,912,958						787,010						28,396						3,076						755,538				Commodity Portfolio					Monthly
Altis Master					39.02	%					17,656,084						3,866,295						71,785						19,078						3,775,432				Commodity Portfolio					Monthly
Total										$	46,880,007					$	4,677,860					$	111,807					$	22,959					$	4,543,094

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
September 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 the inception date. 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 third 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 nine months ended September 30, 2007, Partnership capital decreased 13.1% from $45,246,167 to $39,322,010. This decrease was attributable to a net loss from operations of $891,216 coupled with the redemptions of 3,405.9252 Redeemable Units of Limited Partnership Interest resulting in an outflow of $5,463,620 which was partially offset by the addition of 278.1823 General Partner Unit equivalent totaling $430,679. 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 the 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 contra ct is closed or the changes occur and are included in net gains (losses) on trading of commodity interests of the Funds. Realized gains (losses) on withdrawals from other Partnerships are recognized on a cost recovery basis.

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

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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.

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 September 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 third quarter of 2007 the Net Asset Value per Redeemable Unit decreased 8.9% from $1,804.66 to $1,644.17 as compared to a decrease of 3.7% in the third quarter of 2006. The Partnership experienced a net unrealized loss, through its investments in the Funds’ before brokerage commissions and related fees in the third quarter of 2007 of $3,746,118. Losses were primarily attributable to the trading by the Funds of commodity futures in currencies, energy, U.S. and non-U.S. interest rates, livestock, metals, softs and indices and were partially offset by gains in grains, and lumber. The Partnership experienced a net unrealized loss, through its investments in the Funds’ 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 off set by gains in currencies, grains, softs, indices and lumber.

The third quarter of 2007, proved to be eventful as widespread economic concerns regarding sub-prime mortgage lending resonated throughout the capital and commodity markets. Profits earned in agricultural markets failed to outpace losses in fixed income, equity index and currency sector trading.

The disturbance in the credit markets that emerged in July materially impacted other financial sectors. This revaluation of risk resulted in a flight-to-quality driven rally in prices of sovereign debt instruments against the short positions held by the Partnership at the time, causing losses. Most equity indices, which had reached multi-year highs during mid-July, experienced sharp reversals as investor sentiment waned. Resulting losses were partially recovered in late September as share prices rallied on the rate cut by the Federal Reserve directed at dampening the impact on the economy and restoring liquidity and confidence. The U.S. dollar became less attractive in the midst of these events, and its resultant weakening, primarily versus low-yielding currencies such as the Japanese Yen and Swiss Franc, amplified the quarterly loss.

Profits generated in the commodity markets tempered the result for the quarter. In agricultural market trading, gains were earned in wheat and the soybean complex as prices rallied significantly on reductions in supply expectations.

During the Partnership’s nine months ended September 30, 2007 the Net Asset Value per Redeemable Unit decreased 1.7% from $1,673.08 to $1,644.17 as compared to an increase of 2.6% for the nine months ended September 30, 2006. The Partnership experienced a net unrealized gain, through its investments in the Funds’ before brokerage commissions and related fees for the nine months ended

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September 30, 2007, of $1,597,441. Gains were primarily attributable to the trading by the Funds of commodity futures in grains, non U.S. interest rates, metals, lumber and indices and were partially offset by losses in currencies, energy, U.S. interest rates, livestock and softs. The Partnership experienced a net unrealized gain, through its investments in the Funds’ before commissions and related fees for 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.

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 nine months ended September 30, 2007 decreased by $36,242 and $172,240, respectively, as compared to the corresponding periods in 2006. The decrease in brokerage commissions for the three and nine months ended September 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 nine months ended September 30, 2007 decreased by $13,349 and $54,762, respectively, as compared to the corresponding periods in 2006. The decrease in management fees for the three and nine months ended September 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 nine months ended September 30, 2007 resulted in an incentive fee accrual reversal of $352,981 and an accrual of $94,459, respectively. Trading performance for the three and nine months ended September 30, 2006 resulted in an incentive fee accrual reversal of $95,666 and an accrual of $478,786 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 September 30, 2007 and the highest, lowest and average values at any point during the three months ended September 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 September 30, 2007, Campbell Master’s total capitalization was $247,063,299. The Partnership owned 4.4% of Campbell Master.

September 30, 2007
(Unaudited)

															Three Months Ended September 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				$	2,977,018						1.21	%				$	8,378,918					$	1,553,365					$	3,319,376
Energy					201,562						0.08	%					1,324,000						201,562						343,021
Interest Rates U.S.					494,470						0.20	%					3,568,400						18,410						643,803
Interest Rates Non-U.S.					1,217,172						0.49	%					7,069,845						1,082,448						1,811,710
Metals:
– Exchange Traded Contracts					70,000						0.03	%					282,000						2,000						50,000
– OTC Contracts					725,862						0.29	%					1,408,820						309,870						574,809
Indices					3,354,297						1.36	%					12,222,425						1,694,853						3,673,196
Total				$	9,040,381						3.66	%

* Average month-end Values at Risk

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As of September 30, 2007, Aspect Master’s total capitalization was $210,581,520. The Partnership owned 6.4% of Aspect Master.

September 30, 2007
(Unaudited)

															Three Months Ended September 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				$	6,319,722						3.00	%				$	7,807,513					$	2,985,338					$	5,022,316
Energy					4,651,900						2.21	%					5,901,500						1,117,080						2,655,183
Grains					1,399,814						0.66	%					1,637,713						454,579						871,356
Interest Rates U.S.					1,018,850						0.48	%					1,635,650						33,416						624,789
Interest Rates Non-U.S.					2,717,128						1.29	%					6,679,192						845,315						2,216,829
Livestock					61,850						0.03	%					126,270						26,267						61,720
Metals:
– Exchange Traded Contracts					927,750						0.44	%					1,085,833						28,500						538,167
– OTC Contracts					2,394,774						1.14	%					3,063,488						300,901						1,439,265
Softs					1,327,634						0.63	%					1,908,189						612,225						966,721
Indices					3,252,767						1.55	%					6,398,006						336,713						2,193,541
Total				$	24,072,189						11.43	%

* Average month-end Values at Risk

As of September 30, 2007, Altis Master’s total capitalization was $65,112,527. The Partnership owned 23.6% of Altis Master.

September 30, 2007
(Unaudited)

															Three Months Ended September 30, 2007
Market Sector			Value at Risk						% of Total Capitalization						High Value at Risk						Low Value at Risk						Average Value at Risk*
Commodity Index				$	18,000						0.03	%				$	44,000					$	7,000					$	15,333
Currencies:
– Exchange Traded Contracts					1,287,813						1.98	%					1,331,541						513,767						973,861
Energy					2,638,675						4.05	%					3,222,038						540,645						1,866,853
Grains					1,117,941						1.72	%					1,095,911						489,645						749,315
Interest Rates U.S.					604,100						0.93	%					666,500						84,820						435,408
Interest Rates Non -U.S.					472,976						0.73	%					1,086,551						310,245						470,315
Livestock					116,100						0.18	%					121,800						54,162						96,987
Metals:
– Exchange Traded Contracts					283,250						0.43	%					414,500						99,900						245,944
– OTC Contracts					2,210,836						3.40	%					2,210,836						824,298						1,619,333
Softs					596,410						0.91	%					596,410						321,526						498,298
Indices					2,959,116						4.54	%					3,157,936						547,591						1,794,107
Lumber					35,200						0.05	%					35,200						3,300						24,567
Total				$	12,340,417						18.95	%

* 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 September 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 U.S. 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 U.S. 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 September 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 Reports on Form 10-Q for the quarters ended March 31, 2007 and June 30, 2007.

Enron-Related Civil Actions

On August 27, 2007, the District Court for the Southern District of New York in In Re. Enron Corp. reversed the rulings of the federal bankruptcy court that certain bankruptcy claims held by Citigroup transferees could be equitably subordinated or disallowed solely because of the alleged misconduct of Citigroup, and remanded for further proceedings.

IPO Regulatory Inquiries

On August 14, 2007, plaintiffs filed amended complaints in the six focus cases as well as amended master allegations for all cases in the coordinated proceedings. On September 27, 2007, plaintiffs filed a motion to certify new classes in the six focus cases.

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 on Form 10-Q for the quarters ended March 31, 2007 and June 30, 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
July 1, 2007 – July 31, 2007					63.3182					$	1,676.53						N/A						N/A
August 1, 2007 – August 31, 2007					1,198.6435					$	1,561.82						N/A						N/A
September 1, 2007 – September 30, 2007					152.4744					$	1,644.17						N/A						N/A
					1,414.4361					$	1,627.51

* 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

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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:			November 14, 2007
By:			/s/ Jennifer Magro
			Jennifer Magro Chief Financial Officer and Director
Date:			November 14, 2007

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