Ceres Tactical Commodity 10Q 2008 Q1 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 March 31, 2008

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 000-52602

SMITH BARNEY BRISTOL ENERGY FUND L.P.

(Exact name of registrant as specified in its charter)


New York			20-2718952
(State or other jurisdiction of			(I.R.S. Employer
incorporation or organization)			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, a non-accelerated filer or a smaller reporting company. See definition of ‘‘large accelerated filer’’, ‘‘accelerated filer’’ and ‘‘smaller reporting company’’ in Rule 12b-2 of the Exchange Act (check one):

Large accelerated filer Accelerated filer Non Accelerated filer X Small reporting company

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 April 30, 2008, 166,577.9743 Limited Partnership Redeemable Units were outstanding.

SMITH BARNEY BRISTOL ENERGY FUND L.P.

FORM 10-Q

INDEX

Table of Contents

PART I

Item 1. Financial Statements

Smith Barney Bristol Energy Fund L.P.
Statements of Financial Condition


	March 31, 2008			December 31, 2007
	(Unaudited)
Assets:
Investment in Master, at fair value		$	252,910,482		$	207,376,817
Distribution receivable			216,846			406,907
Cash			169,621			126,787
Total assets		$	253,296,949		$	207,910,511

Liabilities and Partners’ Capital:
Liabilities:
Accrued expenses:
Brokerage commissions		$	791,553		$	649,720
Management fees			420,685			345,332
Administrative fees			105,171			86,333
Other			94,101			61,628
Redemptions payable			4,566,204			1,578,735
Total liabilities			5,977,714			2,721,748

Partners’ Capital:
General Partner 564.9760 Unit equivalent outstanding in 2008 and 2007			793,305			694,949
Special Limited Partner 7,161.1799 and 2,369.3689 Redeemable Units outstanding in 2008 and 2007, respectively			10,055,299			2,914,442
Limited Partners’ 168,409.7985 and 163,879.5119 Redeemable Units of Limited Partnership Interest outstanding in 2008 and 2007, respectively			236,470,631			201,579,372
Total partners’ capital			247,319,235			205,188,763
Total liabilities and partners’ capital		$	253,296,949		$	207,910,511

See accompanying notes to financial statements

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Smith Barney Bristol Energy Fund L.P.
Statements of Income and Expenses and Partners’ Capital
(Unaudited)


	Three Months Ended March 31,
	2008				2007
Income:
Net realized losses on closed positions allocated from Master		$	(10,857,075	)		$	(389,218	)
Change in net unrealized gains on open positions allocated from Master			50,419,783				12,732,919
Interest income allocated from Master			892,866				1,554,264
Expenses allocated from Master			(120,583	)			(78,105	)
Total income			40,334,991				13,819,860
Expenses:
Brokerage commissions			2,160,523				1,511,062
Management fees			1,148,260				803,141
Administrative fees			287,064				200,785
Other			76,971				35,744
Total expenses			3,672,818				2,550,732
Net income before allocation to Special Limited Partner			36,662,173				11,269,128
Allocation to Special Limited Partners			(6,728,374	)			(549,994	)
Net income after allocation to Special Limited Partner			29,933,799				10,719,134
Additions – Special Partner			6,728,374				549,994
Additions – Limited Partners			12,842,000				7,531,256
Redemptions – Limited Partners			(7,373,701	)			(3,559,285	)
Net increase in Partners’ Capital			42,130,472				15,241,099
Partners’ Capital, beginning of period			205,188,763				153,483,684
Partners’ Capital, end of period		$	247,319,235			$	168,724,783

Net Asset Value per Unit (176,135.9544 and 143,912.3263 Units outstanding at March 31, 2008 and 2007, respectively)		$	1,404.14			$	1,172.41
Net income per Redeemable Unit of Limited Partnership Interest and General Partner Unit equivalents		$	174.09			$	73.76

See accompanying notes to financial statements

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Smith Barney Bristol Energy Fund L.P.
Statements of Cash Flows
(Unaudited)


	Three Months Ended March 31,
	2008				2007
Cash flows from operating activities:
Net income		$	29,933,799			$	10,719,134
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Changes in operating assets and liabilities:
Purchase of investment in Master			(12,842,000	)			(7,531,256	)
Proceeds from sale of investment in Master			7,833,387				6,456,924
Net change in unrealized (appreciation) depreciation on investment in Master			(40,525,052	)			(13,819,860	)
(Increase) decrease in distribution receivable			190,061				—
Accrued expenses:
Increase (decrease) in brokerage commissions			141,833				46,737
Increase (decrease) in management fees			75,353				24,810
Increase (decrease) in administrative fees			18,838				6,202
Increase (decrease) in other			32,473				22,988
Net cash used in operating activities			(15,141,308	)			(4,074,321	)

Cash flows from financing activities:
Proceeds from additions − Limited Partners			12,842,000				549,994
Payments for redemptions − Limited Partners			(4,386,232	)			(3,945,258	)
Proceeds from additions − Special Limited Partner			6,728,374				7,531,256
Net cash provided by (used in) financing activities			15,184,142				4,135,992
Net change in cash			42,834				61,671
Cash, at beginning of period			126,787				6,305
Cash, at end of period		$	169,621			$	67,976

Non-cash financing activities:
Change in redemptions payable		$	2,987,469			$	—

See accompanying notes to financial statements

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Smith Barney Bristol Energy Fund L.P.
Notes to Financial Statements
March 31, 2008
(Unaudited)

1. General:

Smith Barney Bristol Energy Fund L.P. (the ‘‘Partnership’’) is a limited partnership organized on April 20, 2005 under the partnership laws of the State of New York to engage, directly or indirectly, in the speculative trading of a diversified portfolio of commodity options, commodity futures contracts and forward contracts on United States exchanges and certain foreign exchanges. In addition, the Partnership may enter into swap and derivative contracts. The commodity interests that are traded by the Partnership are volatile and involve a high degree of market risk.

Between May 15, 2005 (commencement of the offering period) and September 1, 2005, 11,925 redeemable units of Limited Partnership Interest (‘‘Redeemable Units’’) were sold at $1,000 per Redeemable Unit. The proceeds of the initial offering were held in an escrow account until September 6, 2005 at which time they were remitted to the Partnership for trading. The Partnership was authorized to sell 100,000 Redeemable Units of Limited Partnership Interest during its initial offering period. The Partnership privately and continuously offers Redeemable Units.

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 Inc. (‘‘CGM’’). CGM is an affiliate of the General Partner. The General Partner is wholly owned by Citigroup Global Markets Holdings Inc. (‘‘CGMHI’’), which is the sole owner of CGM. CGMHI is a wholly owned subsidiary of Citigroup Inc.

On December 1, 2005, the Partnership allocated substantially all of its capital to CMF SandRidge Master Fund L.P. (the ‘‘Master’’), a limited partnership organized under the partnership laws of the State of New York. The Partnership purchased 14,410.6191 Reedemable Units of the Master with cash of $14,477,858 and a contribution of open commodity futures and option positions with a fair value of $(16,018). The Master was formed in order to permit commodity pools managed now or in the future by SandRidge Capital, L.P. (‘‘SandRidge’’) using its Energy Program, to invest together in one trading vehicle. The General Partner of the Partnership is the general partner of the Master. Individual and pooled accounts currently managed by SandRidge, including the Partnership are permitted to be limited partners of the Master. The General Partner and SandRidge believe that trading through this master/feeder structure should prom ote efficiency and economy in the trading process. Expenses to investors as a result of the investment in the Master are approximately the same and redemption rights are not affected.

At March 31, 2008 and December 31, 2007, the Partnership owned approximately 70.0% and 66.4%, respectively, of the Master. It is the Partnership’s intention is to continue to invest substantially all of its assets in the Master. The performance of the Partnership is directly affected by the performance of the Master. The Master’s Statements of Financial Condition, Schedules of Investments, Statements of Income and Expenses and Partners’ Capital and Statements of Cash Flows are included herein.

The accompanying financial statements are unaudited but, in the opinion of management, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Partnership’s financial condition at March 31, 2008 and December 31, 2007 and the results of its operations and changes in Partners’ Capital and cash flows for the three months ended March 31, 2008 and 2007. These financial statements present the results of interim periods and do not include all disclosures normally provided in annual financial statements. You should read these financial statements together with the financial statements and notes included in the Partnership’s Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2007.

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

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Smith Barney Bristol Energy Fund L.P.
Notes to Financial Statements
March 31, 2008

CMF SandRidge Master Fund L.P.
Statements of Financial Condition

The Master’s Statements of Financial Condition and Schedules of Investments as of March 31, 2008 and December 31, 2007 and Statements of Income and Expenses and Partners’ Capital and Statements of Cash Flows for the three months ended March 31, 2008 and 2007 are presented below:


	March 31, 2008			December 31, 2007
	(Unaudited)
Assets:
Equity in commodity futures trading account:
Cash (restricted $29,617,439 and $12,277,755 in 2008 and 2007, respectively)		$	290,362,571		$	310,747,695
Net unrealized appreciation on open futures contracts			66,730,093			—
Commodity options owned, at fair value (cost $2,082,150 and $9,776,900 in 2008 and 2007, respectively)			6,149,088			7,615,353
			363,241,752			318,363,048
Interest receivable			325,112			643,783
Total assets		$	363,566,864		$	319,006,831
Liabilities and Partners’ Capital:
Liabilities:
Net unrealized depreciation on open futures contracts		$	—		$	1,762,419
Commodity options written, at fair value (premium $1,819,600 and $6,716,000 in 2008 and 2007, respectively)			1,761,981			3,988,181
Accrued expenses:
Other			121,983			80,723
Distribution payable			325,112			643,783
Total liabilities			2,209,076			6,475,106
Partners’ Capital:
Limited Partners’ Capital, 223,107.5054 and 229,170.7149 Redeemable Units of Limited Partnership Interest outstanding in 2008 and 2007, respectively			361,357,788			312,531,725
Total liabilities and partners’ capital		$	363,566,864		$	319,006,831

Table of Contents

Smith Barney Bristol Energy Fund L.P.
Notes to Financial Statements
March 31, 2008
(Unaudited)

CMF SandRidge Master Fund L.P.
Schedule of Investments
March 31, 2008
(Unaudited)


	Number of Contracts		Fair Value				% of Partners’ Capital

Futures Contracts Purchased
Energy
ICE Henry Hub Natural Gas Swap Aug. 08 – Dec. 12		17,838		$	72,270,602			20.00	%
NYMEX Natural Gas July 08 – Jan. 10		7,258			93,562,203			25.89
Other					20,670,990			5.72
Total futures contracts purchased					186,503,795			51.61

Futures Contracts Sold
Energy
ICE Henry Hub Natural Gas Swap May 08 – Nov. 08		7,453			(43,138,475	)		(11.94	)
NYMEX Henry Hub Natural Gas May 08 – Aug. 09		11,928			(19,909,440	)		(5.51	)
NYMEX Natural Gas May 08 – May 09		3,782			(54,096,677	)		(14.96	)
Other					(2,629,110	)		(0.73	)
Total futures contracts sold					(119,773,702	)		(33.14	)

Options Owned
Energy					6,149,088			1.70
Total Options Owned					6,149,088			1.70

Options Written
Energy					(1,761,981	)		(0.49	)
Total Options Written					(1,761,981	)		(0.49	)

Total fair value				$	71,117,200			19.68	%

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Smith Barney Bristol Energy Fund L.P.
Notes to Financial Statements
March 31, 2008
(Unaudited)

CMF SandRidge Master Fund L.P.
Schedule of Investments
December 31, 2007


	Fair Value				% of Partners’ Capital
Futures Contracts Purchased
Energy		$	5,803,214			1.86	%
Total futures contracts purchased			5,803,214			1.86

Futures Contracts Sold
Energy			(7,565,633	)		(2.42	)
Total futures contracts sold			(7,565,633	)		(2.42	)

Options Owned
Energy			7,615,353			2.44
Total Options Owned			7,615,353			2.44

Options Written
Energy			(3,988,181	)		(1.28	)
Total Options Written			(3,988,181	)		(1.28	)

Total fair value		$	1,864,753			0.60	%

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Smith Barney Bristol Energy Fund L.P.
Notes to Financial Statements
March 31, 2008
(Unaudited)

CMF SandRidge Master Fund L.P.
Statements of Income and Expenses and Partners’ Capital
(Unaudited)


	Three Months Ended March 31,
	2008				2007
Income:
Net gains (losses) on trading of commodity interests:
Net realized losses on closed positions		$	(15,693,313	)		$	(600,486	)
Change in net unrealized appreciation on open positions			72,050,797				18,058,645
Gain from trading			56,357,484				17,458,159
Interest income			1,368,686				2,249,840
Total income			57,726,170				19,707,999
Expenses:
Clearing fees			102,957				96,796
Professional fees			71,882				12,020
Total expenses			174,839				108,816
Net income			57,551,331				19,599,183
Additions – Limited Partners			12,842,000				13,031,256
Redemptions – Limited Partners			(20,198,582	)			(6,200,198	)
Distribution of interest income to feeder funds			(1,368,686	)			(2,249,840	)
Net increase in Partners’ capital			48,826,063				24,180,401
Partners’ Capital, beginning of period			312,531,725				215,065,486
Partners’ Capital, end of period		$	361,357,788			$	239,245,887
Net Asset Value per Redeemable Unit (223,107.5054 and 190,167.9565 Redeemable Units outstanding at March 31, 2008 and 2007, respectively)		$	1,619.66			$	1,258.08
Net income per Redeemable Unit of Limited Partnership Interest		$	262.00			$	102.22

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Smith Barney Bristol Energy Fund L.P.
Notes to Financial Statements
March 31, 2008
(Unaudited)

CMF SandRidge Master Fund L.P.
Statements of Cash Flows
(Unaudited)


	Three Months Ended March 31,
	2008				2007
Cash flows from operating activities:
Net income		$	57,551,331			$	19,599,183
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Changes in operating assets and liabilities:
(Increase) decrease in restricted cash			(17,339,684	)			5,768,516
(Increase) decrease in net unrealized appreciation on open futures contracts			(66,730,093	)			(15,485,186	)
(Increase) decrease in commodity options owned, at fair value			1,466,265				7,739,581
(Increase) decrease in interest receivable			318,671				(109,862	)
Increase (decrease) in net unrealized depreciation on open futures contracts			(1,762,419	)			(1,982,014	)
Increase (decrease) in commodity options written, at fair value			(2,226,200	)			(8,588,536	)
Accrued expenses:
Increase (decrease) in professional fees			41,260				9,320
Net cash provided by (used in) operating activities			(28,680,869	)			6,951,002
Cash flows from financing activities:
Proceeds from additions – Limited Partners			12,842,000				13,031,256
Payments for redemptions – Limited Partners			(20,198,582	)			(6,200,198	)
Distribution of interest income to feeder funds			(1,687,357	)			(2,139,978	)
Net cash provided by (used in) financing activities			(9,043,939	)			4,691,080
Net change in unrestricted cash			(37,724,808	)			11,642,082
Unrestricted cash, at beginning of period			298,469,940				196,792,359
Unrestricted cash, at end of period		$	260,745,132			$	208,434,441
Non-cash financing activities:
Change in distribution payable		$	(318,671	)		$	—

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Smith Barney Bristol Energy Fund L.P.
Notes to Financial Statements
March 31, 2008
(Unaudited)

2. Financial Highlights:

Changes in Net Asset Value per Redeemable Unit of Limited Partnership Interest for the three months ended March 31, 2008 and 2007 were as follows:


	Three Months Ended March 31,
	2008				2007
Net realized and unrealized gains allocated from Master*		$	217.12			$	74.04
Interest income allocated from Master			5.22				10.83
Expenses and allocation to Special Limited Partner**			(48.25	)			(11.11	)
Increase for the period			174.09				73.76
Net Asset Value per Redeemable Unit, beginning of period			1,230.05				1,098.65
Net Asset Value per Redeemable Unit, end of period		$	1,404.14			$	1,172.41

*	Includes Partnership commissions and expenses allocated from Master.

**	Excludes Partnership commissions fees and expenses allocated from Master and includes allocation to Special Limited Partner.


	Three Months Ended March 31,
	2008			2007
Ratio to average net assets:****
Net investment loss before allocation to Special Limited Partner*****		(5.3	)%		(2.8	)%
Operating expenses		6.9	%		6.8	%
Allocation to Special Limited Partner		3.1	%		0.3	%
Total expenses		10.0	%		7.1	%
Total return:
Total return before allocation to Special Limited Partner		17.3	%		7.9	%
Allocation to Special Limited Partner		(3.1	)%		(1.2	)%
Total return after allocation to Special Limited Partner		14.2	%		6.7	%

****	Annualized (except for allocation to Special Limited Partner, if applicable)

*****

Interest income allocated from Master less total expenses

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.

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Smith Barney Bristol Energy Fund L.P.
Notes to Financial Statements
March 31, 2008
(Unaudited)

Financial Highlights of the Master:


	Three Months Ended March 31,
	2008				2007
Net realized and unrealized gains*		$	256.23			$	90.32
Interest income			6.09				11.96
Expenses **			(0.32	)			(0.06	)
Increase for the period			262.00				102.22
Distribution of interest income to feeder funds			(6.09	)			(11.96	)
Net Asset Value per Unit, beginning of period			1,363.75				1,167.82
Net Asset Value per Unit, end of period		$	1,619.66			$	1,258.08

*	Includes clearing fees.

**	Excludes clearing fees.


Ratios to average net assets:***
Net investment gain ****	1.5	%	3.9	%
Operating expense	0.2	%	0.2	%
Total return	19.2	%	8.8	%

***	Annualized

****	Interest income less total expenses

The above ratios may vary for individual investors based on the timing of capital transactions during the period.

3. Trading Activities:

The Partnership was formed for the purpose of trading commodity interests, including derivative financial instruments and derivative commodity instruments. The Partnership invests substantially all of its assets through a ‘‘master feeder’’ structure. The results of the Partnership’s investment in the Master are shown in the Statements of Income and Expenses and Partners’ Capital and are discussed in Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The customer agreement between the Partnership and CGM and the Master and CGM gives the Partnership and the Master, respectively, the legal right to net unrealized gains and losses on open futures positions.

All of the commodity interests owned by the Master are held for trading purposes. The average fair values of these interests during the three months ended March 31, 2008 and the year ended December 31, 2007, based on a monthly calculation, were $37,042,305 and $4,754,428, respectively. The fair values of these commodity interests, including options and swaps thereon, if applicable, at March 31, 2008 and December 31, 2007, were $71,117,200 and $1,864,753, respectively. Fair values for exchange traded commodity futures and options are based on quoted market prices for those futures and options. Fair values for all other financial instruments for which market quotations are not readily available are based on other measures of fair value deemed appropriate by the General Partner.

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Smith Barney Bristol Energy Fund L.P.
Notes to Financial Statements
March 31, 2008
(Unaudited)

4. Fair Value Measurements:

Investments. The Partnership values its investment in the Master at its net asset value per unit as calculated by the Master. The Master values its investments as described in note 2 of the Master’s notes to the financial statements.

Fair Value Measurements. The Partnership adopted SFAS No. 157, Fair Value Measurements (‘‘SFAS 157’’) as of January 1, 2008. SFAS 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This statement establishes a framework for measuring fair value and expands disclosures regarding fair value measurements in accordance with GAAP. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to fair values derived from unobservable inputs (L evel 3). The level in the fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Partnership did not apply the deferral allowed by FASB Staff Positions No. FAS 157-2, Effective Date of FASB Statement No. 157, for nonfinancial assets and liabilities measured at fair value on a nonrecurring basis.

The Partnership values investments in master partnerships (other commodity pools) where there are no other rights or obligations inherent within the ownership interest held by the Partnership based on the end of the day net asset value of the Master (Level 1). The value of the Partnership’s investment in the Master reflects its proportional interest in the Master. The Partnership did not directly hold any derivative instruments that are priced at fair value using observable inputs for similar assets (Level 2) or unobservable inputs through the application of management’s assumptions and internal valuation pricing models (Level 3).


	3/31/2008 As			Quoted Prices in Active Markets for Identical sets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets
Investment in Master		$	252,910,482		$	252,910,482		$	—		$	—
Total fair value		$	252,910,482		$	252,910,482		$	—		$	—

Investments. All commodity interests of the Master (including derivative financial instruments and derivative commodity instruments) are held for trading purposes. The commodity interests are recorded on trade date and open contracts are recorded at fair value (as described below) at the measurement date. Investments in commodity interests denominated in foreign currencies are translated into U.S. dollars at the exchange rates prevailing at the measurement date. Gains or losses are realized when contracts are liquidated. Unrealized gains or losses on open contracts are included in equity in commodity futures trading account. Any change in net unrealized gain or loss from the preceding period is reported in the statements of income and expenses and Partners’ capital.

Fair Value Measurements. The Master adopted SFAS No. 157, Fair Value Measurements (‘‘SFAS 157’’) as of January 1, 2008. SFAS 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This statement establishes a framework for measuring fair value and expands disclosures regarding fair value measurements in accordance with GAAP. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to fair values derived from unobservable inputs (Level 3). The level in the fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Master did not apply the deferral

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Smith Barney Bristol Energy Fund L.P.
Notes to Financial Statements
March 31, 2008
(Unaudited)

allowed by FASB Staff Positions No. FAS 157-2, Effective Date of FASB Statement No. 157, for nonfinancial assets and liabilities measured at fair value on a nonrecurring basis.

The Master considers prices for exchange traded commodity futures and actively traded forward and options contracts to be based on quoted prices in active markets for identical assets (Level 1). The values of swaps and certain options contracts for which market quotations are not readily available are priced by broker-dealers who derive fair values for those assets from observable inputs (Level 2). Investments in partnerships (other commodity pools) where there are no other rights or obligations inherent within the ownership interest held by the Partnership are priced based on the end of the day net asset value (Level 1). The Master did not hold any derivative instruments that are priced at fair value using unobservable inputs through the application of management’s assumptions and internal valuation pricing models (Level 3).


	3/31/2008 As			Quoted Prices in Active Markets for Identical sets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets
Futures		$	66,730,093		$	66,730,093		$	—		$	—
Options owned			6,149,088			6,149,088			—			—
Total assets			72,879,181			72,879,181			—			—
Liabilities
Options written		$	1,761,981		$	1,761,981		$	—		$	—
Total liabilities			1,761,981			1,761,981			—			—
Total fair value		$	71,117,200		$	71,117,200		$	—		$	—

5. Financial Instrument Risks:

In the normal course of its business, the Partnership, through its investment in the Master, is party to financial instruments with off-balance sheet risk, including derivative financial instruments and derivative commodity instruments. These financial instruments may include forwards, futures, options and swaps, 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 contr acting parties and include forwards and certain options. The Fund may trade commodity options. Specific market movements of the commodities or futures contracts underlying an option cannot accurately be predicted. The purchaser of an option may lose the entire premium paid for the option. The writer, or seller, of an option has unlimited risk. Each of these instruments is subject to various risks similar to those related to the underlying financial instruments including market and credit risk. In general, the risks associated with OTC contracts are greater than those associated with exchange-traded instruments because of the greater risk of default by the counterparty to an OTC contract.

Market risk is the potential for changes in the value of the financial instruments traded by the Master 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

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Smith Barney Bristol Energy Fund L.P.
Notes to Financial Statements
March 31, 2008
(Unaudited)

in which the related underlying assets are traded. The Partnership is exposed to a market risk equal to the value of futures and forward contracts purchased and unlimited liability on such contracts sold short.

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 Master’s risk of loss in the event of counterparty default is typically limited to the amounts recognized in the Statements of Financial Condition and not represented by the contract or notional amounts of the instruments. The Partnership, through its investment in the Master, has credit risk and concentration risk because the sole counterparty or broker with respect to the Master’s assets is CGM.

As both a buyer and seller of options, the Partnership pays or receives a premium at the outset and then bears the risk of unfavorable changes in the price of the contract underlying the option. Written options expose the Partnership to potentially unlimited liability; for purchased options the risk of loss is limited to the premiums paid.

The General Partner monitors and controls the Master’s 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 Partnership/Master is 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, forward and option positions by sector, margin requirements, gain and loss transactions and collateral positions.

The majority of these instruments mature within one year of the inception date. However, due to the nature of the Master’s business, 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 sales of goods or services. Its only assets are its investment in Master, cash and distribution receivable. The Master does not engage in sales of goods or services. Because of the low margin deposits normally required in commodity futures trading, relatively small price movements may result in substantial losses to the Partnership, through its investment in Master. While substantial losses could lead to a material decrease in liquidity, no such losses occurred in the first quarter of 2008.

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

For the three months ended March 31, 2008, Partnership’s capital increased 20.5% from $205,188,763 to $247,319,235. This increase was attributable to a net income from operations of $29,933,799 coupled with additional sales of 10,049.6391 Redeemable Units of Limited Partnership Interest totaling $12,842,000 and the allocation of 4,791.8110 Redeemable Units of Special Limited Partnership Interest totaling $6,728,374, which was partially offset by the redemption of 5,519.3525 Redeemable Units of Limited Partnership Interest totaling $7,373,701. Future redemptions can impact the amount of funds available for investment in commodity contract positions in subsequent periods.

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

For the three months ended March 31, 2008, the Master’s capital increased 15.6% from $312,531,725 to $361,357,788. This increase was attributable to a net income from operations of $57,551,331 coupled with additional sales of 8,941.0873 Redeemable Units totaling $12,842,000, which was partially offset by the redemption of 15,004.2968 Redeemable Units totaling $20,198,582 and distribution of interest income to feeder funds totaling $1,368,686 to the limited partners of the Master. Future redemptions can impact the amount of funds available for investments in commodity positions in subsequent periods.

Critical Accounting Policies

Use of Estimates. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities in the financial statements and accompanying notes. Actual results could differ from these estimates.

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end of the day net asset value of the Master (Level 1). The value of the Partnership’s investment in the Master reflects its proportional interest in the Master. The Partnership did not directly hold any derivative instruments that are priced at fair value using observable inputs for similar assets (Level 2) or unobservable inputs through the application of management’s assumptions and internal valuation pricing models (Level 3).


	3/31/2008 As			Quoted Prices in Active Markets for Identical sets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets
Investment in Master		$	252,910,482		$	252,910,482		$	—		$	—
Total fair value		$	252,910,482		$	252,910,482		$	—		$	—

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	3/31/2008 As			Quoted Prices in Active Markets for Identical sets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets
Futures		$	66,730,093		$	66,730,093		$	—		$	—
Options owned			6,149,088			6,149,088			—			—
Total assets			72,879,181			72,879,181			—			—
Liabilities
Options written		$	1,761,981		$	1,761,981		$	—		$	—
Total liabilities			1,761,981			1,761,981			—			—
Total fair value		$	71,117,200		$	71,117,200		$	—		$	—

Income and Expenses Recognition. All of the income and expenses and unrealized and realized gains and losses from the commodity transactions of the Master are allocated pro rata among the investors at the time of such determination. The Master’s income and expense recognition is discussed in note 2 of the Master’s notes to financial statements.

Options. The Master 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 Master writes an option, the premium received is recorded as a liability in the Statements of Financial Condition and marked to market daily. When the Master purchases an option, the premium paid is recorded as an asset in the Statements of Financial Condition and marked to market daily.

Forward Foreign Currency Contracts. Foreign currency contracts are those contracts where the Partnership agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed future date. Foreign currency contracts are valued daily, and the Partnership’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward rates at the reporting date, is included in the Statements of Financial Condition. Realized gains (losses) and changes in unrealized gains (losses) 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.

Income Taxes. Income taxes have not been provided as each partner is individually liable for the taxes, if any, on its share of the Partnership’s income and expenses.

In 2007, the Partnership adopted 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 adopted FIN 48 as of January 1, 2008 and the application of this standard did not impact the financial statements.

The following are the major tax jurisdictions for the Partnership and the earliest tax year subject to examination: United States – 2004.

Recent Accounting Pronouncements. On March 19, 2008, Financial Accounting Standards Board released Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (FAS 161). FAS 161 requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. The application of FAS 161 is required for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. At this time, management is evaluating the implications of FAS 161 and its impact on the financial statements has not yet been determined.

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Results of Operations

During the Partnership’s first quarter of 2008, the Net Asset Value per Redeemable Unit increased 14.2% from $1,230.05 to $1,404.14 as compared to an increase of 6.7% in the first quarter of 2007. The Partnership experienced a net trading gain (comprised of net realized losses on closed positions allocated from the Master and change in net unrealized gains on open positions allocated from the Master) before brokerage commissions and related fees in the first quarter of 2008 of $39,562,708. Gains were primarily attributable to the Master’s trading of commodity futures in NYMEX Heating Oil and NYMEX Natural Gas and were partially offset by losses in NYMEX Crude Oil and NYMEX Unleaded Gas. The Partnership experienced a net trading gain before brokerage and related fees in the first quarter of 2007 of $12,343,701. Gains were primarily attributable to the Master’s trading of commodity futures in NYMEX Crude Oil, NYMEX Natural Gas and NYMEX Unleaded Gas.

The Partnership posted gains for the quarter as profits accumulated in February and March sufficiently outpaced small losses realized in January. Natural gas prices rallied over 25% since the first of February and the Partnership was able to capture most of the trend. The underlying fundamentals of natural gas were bullish for most of the quarter as market participants concern with meeting forecasted winter demand amid stronger core demand growth, end-of-season inventory estimates continued to decline on colder weather expectations, and tropical storm activity.

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 (and the Master) depends on the existence of major price trends and the ability of the Advisor 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 Advisor is able to identify them, the Partnership (and the Master) expects to increase capital through operations.

Interest income on 80% of the Partnership’s daily average equity allocated to it by the Master was earned at a 30-day U.S. Treasury bill rate determined weekly by CGM based on the average non-competitive yield on 3-month U.S. Treasury bills maturing in 30 days. CGM may continue to maintain the Master’s assets in cash and/or place all of the Master’s assets in 90-day Treasury bills and pay the Partnership 80% of the interest earned on the Treasury bills purchased. CGM will retain 20% of any interest earned on Treasury bills. Interest income allocated from the Master for the three months ended March 31, 2008 decreased by $661,398 as compared to the corresponding period in 2007. The decrease in interest income is primarily due to lower U.S. Treasury bill rates during the three months ended March 31, 2008 as compared to the corresponding period in 2007.

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, additions and redemptions. Accordingly, they must be analyzed in relation to the fluctuations in the monthly net asset values. Brokerage commissions for the three months ended March 31, 2008 increased by $649,461 as compared to the corresponding period in 2007. The increase in brokerage commissions is due to higher average net assets during the three months ended March 31, 2008 as compared to the corresponding period in 2007.

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, additions and redemptions. Management fees for the three months ended March 31, 2008 increased by $345,119 as compared to the corresponding period in 2007. The increase in management fees is due to higher average net assets during the three months ended March 31, 2008 as compared to the corresponding period in 2007.

Administrative 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. Administrative fees for the three months ended March 31, 2008 increased by $86,279 as compared to the corresponding period in 2007. The increase in administrative fees is due to higher average net assets during the three months ended March 31, 2008 as compared to the corresponding period in 2007.

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Special Limited Partner profit share allocations (incentive fees) are based on the new trading profits generated by the Advisor at the end of the quarter as defined in the advisory agreement between the Partnership, the General Partner and the Advisor. The profit share allocation accrued for the three months ended March 31, 2008 was $6,728,374. The profit share allocation accrued for the three months ended March 31, 2007 was $549,994.

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

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

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

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

Exchange maintenance margin requirements have been used by the Master 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 table indicates the trading Value at Risk associated with the Master’s open positions by market category as of March 31, 2008 and the highest, lowest and average values during the three months ended March 31, 2008. All open position trading risk exposures of the Master have been included in calculating the figures set forth below. As of March 31, 2008, the Master’s total capital was $361,357,788. There has been no material change 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, 2007.

March 31, 2008
(Unaudited)


							Three Months Ended March 31, 2008
Market Sector	Value at Risk			% of Total Capital			High Value at Risk			Low Value at Risk			Average Value at Risk*
Energy		$	28,134,973		7.79	%		$	28,812,815		$	12,685,580		$	23,932,612
Total		$	28,134,973		7.79	%

* Average of Month-end Values at Risk

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Item 4T. 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 March 31, 2008 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 March 31, 2008 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, 2007.

Enron Corp.

On April 4, 2008, Citigroup announced an agreement to settle actions filed by Enron in its Chapter 11 bankruptcy proceedings seeking to recover payments to Citigroup as alleged preferences or fraudulent conveyances, to disallow or equitably subordinate claims of Citigroup and Citigroup transferees on the basis of alleged fraud, and to recover damages from Citigroup for allegedly aiding and abetting breaches of fiduciary duty. Under the terms of the settlement (which was approved by the Bankruptcy Court for the Southern District of New York on April 24, 2008), Citigroup will make a pretax payment of $1.66 billion to Enron, and will waive certain claims against Enron’s estate. Enron also will allow specified Citigroup-related claims in the bankruptcy proceeding, including all of the bankruptcy claims of parties holding approximately $2.4 billion of Enron credit-linked notes (‘‘CLNs’’), and will release al l claims against Citigroup. Citigroup separately agreed to settle an action brought by certain trusts that issued the CLNs in question, by the related indenture trustee and by certain holders of those securities. The amounts of both settlements are fully covered by Citigroup’s existing litigation reserves.

On February 14, 2008, Citigroup agreed to settle Connecticut Resources Recovery Authority v. Lay, et al., an action brought by the Attorney General of Connecticut in connection with an Enron-related transaction; subsequently, the District Court dismissed the case on March 5, 2008. The amount paid to settle this action was covered by existing Citigroup litigation reserves.

Item 1A. Risk Factors

There are no material changes from the risk factors set forth under Part I, Item 1A. ‘‘Risk Factors’’ in our Annual Report on Form 10-K for the fiscal year ended December 31, 2007.

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

For the three months ended March 31, 2008, there were additional sales of 10,049.6391 Redeemable Units of Limited Partnership Interest totaling $12,842,000 and 4,791.8110 Redeemable Units of Special Limited Partnership totaling $6,728,374. The Redeemable Units were issued in reliance upon applicable exemptions from registration under Section 4(2) of the Securities Act of 1933, as amended, and Section 506 of Regulation D promulgated thereunder.

Proceeds from the sale of additional Redeemable Units are used in the trading of commodity interests including futures contracts, options and forwards contracts.

These units were purchased by accredited investors as defined in Regulation D. The following chart sets forth the purchases of Redeemable Units by the Partnership.


Period	(a) Total Number of Redeemable Units Purchased*		(b) Average Price Paid per Redeemable Unit**			(c) Total Number of Redeemable Units Purchased as Part of Publicly Announced Plans or Programs		(d) Maximum Number (or Approximate Dollar Value) of Redeemable Units that May Yet Be Purchased Under the Plans or Programs
January 1, 2008 - January 31, 2008		1,539.9835		$	1,185.26		N/A		N/A
February 1, 2008 - February 29, 2008		727.4112		$	1,350.29		N/A		N/A
March 1, 2008 - March 31, 2008		3,251.9578		$	1,404.14		N/A		N/A
		5,519.3525		$	1,335.97

* 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 Registration Statement on Form 10-12 G for the period ended December 31, 2006 filed on April 30, 2007 and on Form 10-12 G/A filed on October 19, 2007 and the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2007.

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, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


SMITH BARNEY BRISTOL ENERGY FUND L.P.
By:			Citigroup Managed Futures LLC
			(General Partner)
By:			/s/ Jerry Pascucci
			Jerry Pascucci
			President and Director
Date: May 15, 2008
By:			/s/ Jennifer Magro
			Jennifer Magro
			Chief Financial Officer and Director
Date:			May 15, 2008

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Ceres Tactical Commodity 10-Q2008 Q1 Quarterly report

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