BlackRock Global Horizons I 10-Q 2009 Q3 Quarterly report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 2009

OR

o 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 0-23240

BLACKROCK GLOBAL HORIZONS I L.P.

(Exact Name of Registrant as

specified in its charter)

Delaware	13-3716393
(State or other jurisdiction of	(IRS Employer Identification No.)
incorporation or organization)

c/o BlackRock Investment Management LLC

40 East 52nd Street

New York, New York 10022

(Address of principal executive offices)

(Zip Code)

609-282-6996

(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 o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes o  No o

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

Large Accelerated Filer o	Accelerated filer o
Non-Accelerated filer x	Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o  No x

BLACKROCK GLOBAL HORIZONS I L.P.

QUARTERLY REPORT FOR SEPTEMBER 30, 2009 ON FORM 10-Q

Table of Contents

		PAGE
PART I
Item 1.	Financial Statements	2
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	21
Item 4T.	Controls and Procedures	22
PART II
Item 1.	Legal Proceedings	23
Item 1A.	Risk Factors	23
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23
Item 3.	Defaults Upon Senior Securities	25
Item 4.	Submission of Matters to a Vote of Security Holders	25
Item 5.	Other Information	25
Item 6.	Exhibits	25

PART I - FINANCIAL INFORMATION

Item 1.    Financial Statements

BLACKROCK GLOBAL HORIZONS I L.P.

(A DELAWARE LIMITED PARTNERSHIP)

STATEMENTS OF FINANCIAL CONDITION

(unaudited)

	September 30,		December 31,
	2009		2008
ASSETS:
Cash and cash equivalents	$	191,734,763	$	169,133,129
Equity in commodity futures trading accounts:
Cash (restricted cash $19,436,079 and $10,090,467)	55,697,148		67,504,316
Net unrealized profit on open contracts	4,773,760		3,178,192
Accrued interest and other assets	38,050		7,029
TOTAL ASSETS	$	252,243,721	$	239,822,666
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES:
Redemptions payable	$	1,350,258	$	4,637,184
Profit Shares payable	1,244,391		5,542,345
Distribution fees payable	513,850		572,137
Trading Advisors’ management fees payable	227,237		261,954
Brokerage commissions and clearing costs payable	20,488		13,048
Sponsor fees payable	215,946		240,269
Administrator fees payable	158,655		104,106
Professional fees payable	297,399		334,454
Other fees payable	75,720		31,243
Total liabilities	4,103,944		11,736,740
PARTNERS’ CAPITAL:
General Partner (2,203,255 and 2,203,255 Units)	2,925,812		3,098,146
Limited Partners (194,387,270 and 162,267,856 Units)	245,213,965		224,987,780
Total partners’ capital	248,139,777		228,085,926
TOTAL LIABILITIES AND PARTNERS’ CAPITAL	$	252,243,721	$	239,822,666

NET ASSET VALUE PER UNIT (Note 2)

See notes to financial statements.

2

BLACKROCK GLOBAL HORIZONS I L.P.

(A DELAWARE LIMITED PARTNERSHIP)

STATEMENTS OF OPERATIONS

(unaudited)

	For the three			For the three			For the nine			For the nine
	months ended			months ended			months ended			months ended
	September 30,			September 30,			September 30,			September 30,
	2009			2008			2009			2008
TRADING PROFITS (LOSSES):
Realized	$	4,601,156		$	(2,148,047	)	$	(2,406,457	)	$	20,352,973
Change in unrealized	4,017,343			1,763,343			1,595,568			3,237,651
Brokerage commissions and clearing costs	(407,146		)	(421,430		)	(1,181,232		)	(1,217,865		)
Total trading profits (losses)	8,211,353			(806,134		)	(1,992,121		)	22,372,759
INVESTMENT INCOME:
Interest	142,919			920,348			823,006			2,821,645
EXPENSES:
Profit Shares	1,152,159			124,664			1,419,179			5,070,025
Distribution fees	1,586,965			1,359,777			4,886,999			3,879,549
Trading Advisors’ management fees	706,327			614,222			2,266,969			1,759,036
Sponsor fees	664,389			569,520			2,045,617			1,625,765
Administrator fees	167,000			124,500			523,000			513,690
Professional fees	227,926			158,925			500,443			437,730
Other	103,001			145,251			283,401			173,437
Total expenses before waiver	4,607,767			3,096,859			11,925,608			13,459,232
Sponsor fee waiver	—			(89,634		)	—			(174,151		)
Total expenses	4,607,767			3,007,225			11,925,608			13,285,081
NET INVESTMENT LOSS	(4,464,848		)	(2,086,877		)	(11,102,602		)	(10,463,436		)
NET INCOME (LOSS)	$	3,746,505		$	(2,893,011	)	$	(13,094,723	)	$	11,909,323
NET INCOME (LOSS) PER UNIT:
Weighted average number of General Partner and Limited Partner Units outstanding
Series A	162,511,063			107,876,138			147,040,894			96,175,895
Series F	109,811			128,312			113,058			131,559
Series G	31,436,315			36,729,365			32,897,083			37,847,494
Series I	645,990			615,479			562,451			689,706
Net income (loss) per weighted average General Partner and Limited Partner Unit
Series A	$	0.0169		$	(0.0117	)	$	(0.0605	)	$	0.0723
Series F	$	3.97		$	(5.68	)	$	(16.27	)	$	16.28
Series G	$	0.0172		$	(0.0245	)	$	(0.0714	)	$	0.0718
Series I	$	0.0309		$	(0.0139	)	$	(0.0270	)	$	0.1336

See notes to financial statements.

3

BLACKROCK GLOBAL HORIZONS I L.P.

(A DELAWARE LIMITED PARTNERSHIP)

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008

(unaudited)

			General			Limited
	Units		Partner			Partners			Total
PARTNERS’ CAPITAL, December 31, 2007	132,419,726		$	2,589,473		$	161,138,397		$	163,727,870
Additions	46,459,766		—			47,793,994			47,793,994
Net income	—		176,274			11,733,049			11,909,323
Redemptions	(17,761,652	)	—			(21,499,289		)	(21,499,289		)
PARTNERS’ CAPITAL, September 30, 2008	161,117,840		$	2,765,747		$	199,166,151		$	201,931,898
PARTNERS’ CAPITAL, December 31, 2008	164,471,111		$	3,098,146		$	224,987,780		$	228,085,926
Additions	54,978,150		—			61,423,598			61,423,598
Net loss	—		(172,334		)	(12,922,389		)	(13,094,723		)
Redemptions	(22,858,736	)	—			(28,275,024		)	(28,275,024		)
PARTNERS’ CAPITAL, September 30, 2009	196,590,525		$	2,925,812		$	245,213,965		$	248,139,777

See notes to financial statements.

4

BLACKROCK GLOBAL HORIZONS I L.P.

(A DELAWARE LIMITED PARTNERSHIP)

FINANCIAL DATA HIGHLIGHTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009

(unaudited)

The following per Unit data and ratios have been derived from information provided in the financial statements.  An individual Partner’s results may vary from these ratios due to timing of income and expenses and capital transactions.

	Series A			Series F			Series G			Series I
Per Unit Operating Performance:
Net asset value, beginning of period	$	1.1742		$	282.49		$	1.2234		$	1.2972
Realized trading loss	(0.0142		)	(3.37		)	(0.0146		)	(0.0154		)
Change in unrealized trading profits	0.0065			1.53			0.0066			0.0072
Interest	0.0041			0.97			0.0042			0.0045
Expenses	(0.0628		)	(15.06		)	(0.0652		)	(0.0432		)
Net asset value, end of period	$	1.1078		$	266.56		$	1.1544		$	1.2503
Total Return:
Total return (before Profit Shares)	-5.11		%	-5.11		%	-5.11		%	-2.94		%
Profit Shares	-0.60		%	-0.58		%	-0.58		%	-0.73		%
Total return	-5.65		%	-5.64		%	-5.64		%	-3.62		%
Ratios to Average Net Assets:(1) (2)
Expenses (before Profit Shares)	6.62		%	6.63		%	6.63		%	3.61		%
Profit Shares	0.62		%	0.57		%	0.57		%	0.86		%
Expenses	7.24		%	7.20		%	7.20		%	4.47		%
Net investment loss	-6.77		%	-6.72		%	-6.72		%	-4.02		%

(1) Included in the ratios of expenses to average net assets are brokerage commissions and clearing costs which are presented in Trading Profits (Losses) on the Statement of Operations.

(2) The expenses (before Profit Shares) and the interest portion of net investment loss for the net investment loss ratios have been annualized.

See notes to financial statements.

5

BLACKROCK GLOBAL HORIZONS I L.P.

(A DELAWARE LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS

(unaudited)

1.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The interim financial information at September 30, 2009 and for the periods ended September 30, 2009 and September 30, 2008 is unaudited.  However, in the opinion of management, the financial statements contain all adjustments necessary to present fairly the financial position of BlackRock Global Horizons I L.P. (the “Partnership”) as of September 30, 2009 and December 31, 2008, and the results of its operations for the three and nine month periods ended September 30, 2009 and 2008. The operating results for the interim periods may not be indicative of the results for the full year.

Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been omitted. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Partnership’s Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2008 (the “Form 10-K”).

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

BlackRock Investment Management, LLC (the “General Partner” or “BRIM”), a wholly owned subsidiary of BlackRock, Inc. (“BlackRock”) is the general partner of the Partnership.

PFPC Trust Company (“PFPC Trust”), an affiliate of the General Partner, provides custody services for the Partnership. As of September 30, 2009 $191,734,763 was held in custody at PFPC Trust and invested in an affiliated BlackRock money market fund.  The Partnership’s assets will also be held in cash and customer segregated accounts at Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”),  an affiliate of the General Partner, Newedge USA, LLC (“NUSA”) and any other clearing brokers that may be utilized by the Partnership in the future (the “Clearing Brokers”) or allocated to one or more Portfolio Funds for which custodians and clearing brokers are selected by the independent professional advisors of such Portfolio Funds or managed accounts (the “Trading Advisors”).

The Partnership has defined cash and cash equivalents as cash, money market funds and short-term, highly liquid investments with maturities of three months or less when acquired.  Money market funds, which are included in cash equivalents, are classified as Level 1 valuation inputs (quoted prices in active markets for identical assets) under the provisions of Accounting Standards Codification (“ASC”) 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”) (Statement of Financial Accounting Standards (“SFAS”) No. 157, Fair Value Measurements).

On January 1, 2009, Bank of America Corp. announced that it had completed its acquisition of Merrill Lynch & Co., Inc. (“Merrill Lynch”), one of the largest shareholders of BlackRock, Inc.

The Partnership, in its normal course of business, enters into various derivatives contracts with MLPF&S and NUSA, each acting as the Partnership’s clearing brokers. Pursuant to the brokerage agreements with MLPF&S and NUSA (which include netting arrangements with each broker), to the extent that such

6

trading results in receivables from and payables to MLPF&S and NUSA, these receivables and payables are offset and reported as a net receivable or payable with each broker.  Net receivables are included in the Statements of Financial Condition under Equity in commodity futures trading accounts in net unrealized profit on open contracts and net payables are included under Liabilities in net unrealized loss on open contracts.

2.NET ASSET VALUE PER UNIT

At September 30, 2009 and December 31, 2008, the Net Asset Values of the different series of Units were:

September 30, 2009	Net Asset Value		Number of Units	Net Asset Value per Unit
Series A	$	182,558,108	164,789,567	$	1.1078
Series F	28,918,345		108,487	$	266.56
Series G	35,672,742		30,900,212	$	1.1544
Series I	990,582		792,259	$	1.2503
Total partners’ capital	$	248,139,777	196,590,525

December 31, 2008	Net Asset Value		Number of Units	Net Asset Value per Unit
Series A	$	151,208,477	128,773,188	$	1.1742
Series F	33,304,503		117,896	$	282.49
Series G	42,809,400		34,991,420	$	1.2234
Series I	763,546		588,607	$	1.2972
Total partners’ capital	$	228,085,926	164,471,111

3.FAIR VALUE DISCLOSURES

Effective January 1, 2008, the Partnership adopted ASC 820-10. ASC 820-10 defines fair value as the price that the Partnership would receive upon selling an investment or pay to transfer a liability in an orderly transaction to a market participant in the principal or most advantageous market for the investment. ASC 820-10 emphasizes that valuation techniques maximize the use of observable market inputs and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability, including assumptions about risk to the extent the asset or liability is not traded on an exchange or an active market.  Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the Partnership. Unobservable inputs are inputs that reflect the General Partner assumptions about what information market participants would use to price an asset or liability developed based on the best information available under the circumstances.

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ASC 820-10 establishes a hierarchy that classifies these inputs into the three broad levels listed below:

·Level 1 — Price quotations (unadjusted) in active markets/exchanges for identical instruments.

·Level 2 — Other than quoted prices included within Level 1 that are observable for substantially the full term of the asset or liability, either directly or indirectly.  Level 2 includes quoted prices (unadjusted) for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; and inputs other than quoted prices that are observable, such as those used in models or other valuation methodologies.

·Level 3 — Primarily inputs and significant assumptions that are unobservable in the market place.  Level 3 assets include investments for which there is little, if any, market activity.  These inputs require significant judgment or estimation by the General Partner of the Partnership.

The following table summarizes the valuation of the Partnership’s investments by the above ASC 820-10  fair value hierarchy levels as of September 30, 2009.

Valuation Inputs	Cash equivalents		Net unrealized profit (loss) on derivative contracts
Level 1 - Price quotations	$	191,734,763	$	4,161,937
Level 2 - Significant other observable inputs	—		611,823
	$	191,734,763	$	4,773,760

4.   DERIVATIVE CONTRACTS AND OFF-BALANCE SHEET RISK

The Partnership trades in the international futures and forward markets with the objective of achieving, through speculative trading, substantial capital appreciation over time. The Partnership’s assets are allocated and reallocated by the General Partner to managed accounts managed by the Trading Advisors applying proprietary strategies in numerous markets.

The Partnership engages in the speculative trading of derivative contracts on interest rates, commodities, currencies, metals, energy, livestock and stock indices. The following were the primary trading risk exposures of such derivative contracts as of at September 30, 2009, organized by market sector:

Agricultural.  The Partnership’s primary exposure is to agricultural price movements, which are often directly affected by severe or unexpected weather conditions.

Currencies.  Exchange rate risk is a principal market exposure of the Partnership.  The Partnership’s currency exposure is to exchange rate fluctuations, primarily fluctuations which disrupt the historical pricing relationships between different currencies and currency pairs.  The fluctuations are influenced by interest rate changes as well as political and general economic conditions.  The Partnership trades in a large number of currencies, including cross-rates—e.g., positions between two currencies other than the U.S. dollar.

Energy.  The Partnership’s primary energy market exposure is to gas and oil price movements, often resulting from political developments in the Middle East and economic conditions worldwide.  Energy prices are volatile and substantial profits and losses have been and are expected to continue to be experienced in this market.

Interest rates.  Interest rate movements directly affect the price of the sovereign bond futures positions held by the Partnership and indirectly the value of its stock index and currency positions.  Interest rate

8

movements in one country as well as relative interest rate movements between countries may materially impact the Partnership’s profitability.  The Partnership’s primary interest rate exposure is to interest rate fluctuations in the United States and other major industrialized, or Group of Seven countries (Canada, France, Germany, Italy, Japan, United Kingdom and United States, collectively, “G-7”).  However, the Partnership also may take positions in futures contracts on the government debt of other nations.  The General Partner anticipates that G-7 interest rates, both long-term and short-term, will remain the primary market exposure of the Partnership for the foreseeable future.

Metals. The Partnership’s metals market exposure is to fluctuations in the price of aluminum, copper, gold, lead, nickel, silver, tin and zinc.

Stock Indices.  The Partnership’s equity exposure, through stock index futures, is to equity price risk in the G-7 countries, as well as other countries.

The Partnership, through the trading activities of the Trading Advisors, also engages in the speculative trading of forward currency contracts. Substantially all of the Partnership’s off-exchange trading takes place in the highly liquid, institutional spot and forward foreign exchange markets (the “FX Markets”) where there are no direct execution costs. Instead, the participant banks and dealers in the FX Markets take a “spread” between the prices at which they are prepared to buy and sell a particular currency, and such spreads are built into the pricing of the spot or forward contracts traded with the Partnership. In its exchange of futures for physical (“EFP”) trading, the Partnership acquires cash currency positions through banks and dealers. The Partnership pays a spread when it exchanges these positions for futures. This spread reflects, in part, the different settlement dates of the cash and the futures contracts, as well as prevailing interest rates, but also includes a pricing spread in favor of the banks and dealers, which may include a Merrill Lynch entity.

The Partnership is exposed to both market risk, the risks arising from changes in the market value of the contracts, and credit risk, the risk of failure by another party to perform according to the terms of a contract.

Market Risk

Derivative contracts involve varying degrees of off-balance sheet market risk.  Changes in the level or volatility of interest rates, foreign currency exchange rates or the market values of the financial contracts or commodities underlying such derivative contracts frequently result in changes in the Partnership’s net unrealized profit (loss) on such derivative contracts as reflected in the Statements of Financial Condition.  The Partnership’s exposure to market risk is influenced by a number of factors, including the relationships among the derivative contracts held by the Partnership as well as the volatility and liquidity of the markets in which the derivative contracts are traded.  Investments in foreign markets may also entail legal and political risks.

BRIM has procedures in place intended to control market risk exposure, although there can be no assurance that they will, in fact, succeed in doing so.  These procedures focus primarily on monitoring the trading of the Trading Advisors, calculating the Net Asset Value of the Partnership as of the close of business on each day and reviewing outstanding positions, or reallocating Partnership assets among Trading Advisors (although typically only as of the end of a month) for over-concentrations.  While BRIM does not itself intervene in the markets to hedge or diversify the Partnership’s market exposure, BRIM may urge the Trading Advisors to reallocate positions in an attempt to avoid over-concentrations.  Except in cases in which it appears that the Trading Advisors have begun to deviate from past practice or

9

trading policies or to be trading erratically, BRIM’s basic risk control procedures consist simply of the ongoing process of Trading Advisor monitoring, with the market risk controls being applied by the Trading Advisors themselves.

Credit Risk

The credit risks associated with exchange-traded contracts are typically perceived to be less than those associated with over-the-counter (non-exchange-traded) transactions.  This is because exchanges typically (but not universally) have clearinghouse arrangements in which margin deposits, a clearing fund and collective credit (in some cases limited in amount, in some cases not) of the members of the clearinghouse are segregated and pledged to support the financial integrity of the contracts traded on the exchange. In over-the-counter transactions, on the other hand, traders must rely solely on the credit of their respective individual counterparties. Margins, which may be subject to loss in the event of a default, are generally required in exchange trading, and counterparties may also require margin in the over-the-counter markets.

The amount of required margin and good faith deposits with the brokers usually ranges from 5% to 30% of Net Asset Value.  The market value of cash and securities held to satisfy such requirements at September 30, 2009 and December 31, 2008 was $19,436,079 and $10,090,467, respectively, which equals 7.83% and 4.42% of Net Asset Value, respectively.

The Partnership has a substantial portion of its assets on deposit with financial institutions.  In the event of a financial institution’s insolvency, recovery of Partnership assets on deposit may be limited to account insurance or other protection afforded such deposits.

For derivatives, risks arise from changes in the market value of the contracts.  Theoretically, the Partnership is exposed to a market risk equal to the notional contract value of futures and forward currency contracts purchased and unlimited liability on such contracts sold short.

The Partnership qualifies as an investment company under the provisions of the American Institute of Certified Public Accountants Audit and Accounting Guide for Investment Companies and therefore, all investments including derivatives are stated at fair value in the Statements of Financial Condition, and changes in fair value are included in realized and unrealized trading profits and losses in the Statements of Operations.

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Condensed Schedule of Investments

The Partnership trades futures and forward contracts.  The level of trading is affected by conditions in those markets.  During the quarter and nine months ended September 30, 2009, 102,325 and 267,526 contracts were closed, respectively.  The fair value of the Partnership’s futures and forward contracts by type, defined as Net unrealized profit on open contracts in the Statements of Financial Condition as of September 30, 2009 are as follows:

	Long Positions						Long Positions
Commodity	Number	Gross Unrealized					Unrealized		Percent of
Industry Sector	of Contracts	Gains		Losses			Profit (Loss)		Net Assets
Futures
Agriculture	567	$	474,549	$	(195,786	)	$	278,763	0.11	%
Currencies	904	1,046,238		(234,408		)	811,830		0.33	%
Energy	352	559,334		(197,000		)	362,334		0.14	%
Interest rates	2,884	1,941,941		(50,348		)	1,891,593		0.76	%
Metals	950	3,912,748		(345,540		)	3,567,208		1.44	%
Stock indices	1,385	542,801		(278,410		)	264,391		0.11	%
Subtotal	7,042	8,477,611		(1,301,492		)	7,176,119		2.89	%
Forwards
Currencies	307	920,300		(726,373		)	193,927		0.08	%
Total	7,349	$	9,397,911	$	(2,027,865	)	$	7,370,046	2.97	%

	Short Positions						Short Positions					Net unrealized
Commodity	Number	Gross Unrealized					Unrealized			Percent of		profit (loss) on			Percent of
Industry Sector	of Contracts	Gains		Losses			Profit (Loss)			Net Assets		open contracts			Net Assets
Futures
Agriculture	1,031	$	508,753	$	(368,487	)	$	140,266		0.06	%	$	419,029		0.17	%
Currencies	173	106,282		(45,125		)	61,157			0.02	%	872,987			0.35	%
Energy	385	216,815		(670,880		)	(454,065		)	-0.18	%	(91,731		)	-0.04	%
Interest rates	152	27,393		(33,794		)	(6,401		)	0.00	%	1,885,192			0.76	%
Metals	673	292,488		(3,070,018		)	(2,777,530		)	-1.12	%	789,678			0.32	%
Stock indices	138	38,147		(15,756		)	22,391			0.01	%	286,782			0.12	%
Subtotal	2,552	1,189,878		(4,204,060		)	(3,014,182		)	-1.21	%	4,161,937			1.68	%
Forwards
Currencies	332	1,150,193		(732,297		)	417,896			0.17	%	611,823			0.25	%
Total	2,884	$	2,340,071	$	(4,936,357	)	$	(2,596,286	)	-1.04	%	$	4,773,760		1.93	%

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The trading profits (losses) of the Partnership’s derivatives by instrument type, as well as the location of those gains and losses on the Statement of Operations for the three and nine month periods ended September 30, 2009 are as follows:

For the three months ended September 30 , 2009

				Change in Net
Commodity	Realized Profits			Unrealized			Net Trading
Industry Sector	(Losses)			Profits (Losses)			Profits (Losses)
Futures
Agriculture	$	431,830		$	(278,027	)	$	153,803
Currencies	1,167,338			358,059			1,525,397
Energy	(1,567,288		)	(250,709		)	(1,817,997		)
Interest rates	(118,449		)	2,055,178			1,936,729
Metals	826,971			1,124,975			1,951,946
Stock indices	4,241,916			261,162			4,503,078
	4,982,318			3,270,638			8,252,956
Forwards
Currencies	(381,162		)	746,705			365,543
Total	$	4,601,156		$	4,017,343		$	8,618,499

For the nine months ended September 30 , 2009

				Change in Net
Commodity	Realized Profits			Unrealized			Net Trading
Industry Sector	(Losses)			Profits (Losses)			Profits (Losses)
Futures
Agriculture	$	(1,579,588	)	$	648,029		$	(931,559	)
Currencies	443,627			950,184			1,393,811
Energy	(4,300,787		)	(230,643		)	(4,531,430		)
Interest rates	(2,715,640		)	(776,838		)	(3,492,478		)
Metals	154,587			191,514			346,101
Stock indices	7,049,914			328,741			7,378,655
	(947,887		)	1,110,987			163,100
Forwards
Currencies	(1,458,570		)	484,581			(973,989		)
Total	$	(2,406,457	)	$	1,595,568		$	(810,889	)

5.RECENT ACCOUNTING PRONOUNCEMENTS

In March 2008, FASB issued, ASC 815-19, Derivatives and Hedging (SFAS No. 161 Disclosures about Derivative Instruments and Hedging Activities — an amendment of FASB Statement No. 133 ).  ASC 815-19 expands the disclosure requirements for derivative instruments and hedging activities.  ASC 815-19 specifically requires enhanced disclosures addressing: a) how and why an entity uses derivative instruments, b) how derivative instruments and related hedged items are accounted for under SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities, and its related interpretations and c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows.  ASC 815-19 is effective for fiscal years and interim periods beginning after November 15, 2008.  The adoption of ASC 815-19 did not have a material impact on the Partnership’s

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financial statements.  The disclosures required by ASC 815-19 are included in Note 4 to these financial statements.

In April 2009, the FASB issued ASC 820-10, Fair Value Measurements and Disclosures (FASB Staff Position No. 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly).  ASC 820-10 provides additional guidance for estimating fair value in accordance with ASC 820-10, when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate a transaction is not orderly.  ASC 820-10 is effective for reporting periods ending after June 15, 2009.   The adoption of ASC 820-10 did not have a material impact on the Partnership’s financial statements.

In May 2009, the FASB issued ASC 855-10, Subsequent Events (Statement of Financial Accounting Standards No. 165, Subsequent Events), which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or available to be issued. ASC 855-10 is effective for financial statements issued for fiscal years and interim periods ending after June 15, 2009.  The adoption of ASC 855-10 did not have a material impact on the Partnership’s financial statements.

In June 2009, the FASB issued ASC 105-10, Generally Accepted Accounting Principles, (Statement of Financial Accounting Standards No. 168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles—a replacement of FASB Statement No. 16). On the effective date of ASC 105-10, the ASC will supersede all then-existing non-SEC accounting and reporting standards. All other non-grandfathered, non-SEC accounting literature not included in the ASC will become non-authoritative. ASC 105-10 is effective for financial statements issued for interim and annual periods ending after September 15, 2009. The adoption of ASC 105-10 did not have a material impact on the Partnership’s financial statements.

6.   SUBSEQUENT EVENTS

The Partnership reviewed subsequent events occurring through November 16, 2009 the date that these financial statements were issued and determined that no subsequent events occurred that would require accrual or additional disclosure.

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

MONTH-END NET ASSET VALUE PER SERIES F UNIT

	Jan.		Feb.		Mar.		Apr.		May		Jun.		July		Aug.		Sept.
2008	$	243.08	$	256.88	$	256.37	$	249.33	$	250.65	$	257.60	$	248.81	$	243.18	$	252.09
2009	$	284.04	$	283.02	$	272.56	$	264.70	$	268.52	$	262.57	$	262.49	$	262.94	$	266.56

Performance Summary  — Results of Trading

January 1, 2009 to September 30, 2009

January 1, 2009 to March 31, 2009

The Partnership posted a net loss for the quarter, with early gains offset by losses late in the quarter.  The stock indices sector was the only profitable sector for the quarter, with the largest losses occurring in the interest rate sector.

Stock indices trading contributed to gains early in the quarter through short exposures to global markets. Broad-based equity declines impacted global markets in January and February on negative economic news and poor earnings.  However, investors experienced a sharp reversal and rally in March as they began to perceive stabilization in the global financial system after several months of uncertainty. Within this environment, short global equity exposures to the US, Germany, Hong Kong and Japan, proved to be beneficial as markets substantially declined early in the period. However, many of these short equity exposures detracted late in the quarter as the markets rallied on positive corporate earnings and government stimulus efforts.

Trading in energies was relatively flat over the first three months of the year, with slight profits early in the quarter roughly balanced by later losses. Oil prices hit cyclical lows in February, falling below $40/barrel for the first time since 2004 before rebounding to nearly $50/barrel by the end of March on signs that economic deterioration appears to be slowing. Demand for energy continued to slump, weighed by a decrease in economic activity driven by the global recession.  Natural gas prices were negatively impacted by falling demand from power producers and their industrial clientele.

Short exposures in the metals sector detracted slightly from performance for the quarter, with gains early in the quarter outweighed by March losses. Prices for industrial metals such as copper, lead and zinc, rallied in March from their earlier lows on hopes that government stimulus efforts would spark industrial production and reduce existing basic materials inventory levels. Precious metals prices also rose during the quarter, continuing to benefit from higher levels of market volatility and economic uncertainty, as well as latent fears over growing inflation after the economy recovers.

Trading in agricultural commodities detracted from performance despite a profitable month of February. In particular, short positions in corn and soybeans profited in February on speculation that demand for biofuels and animal feed would decline in the midst of the recession, and demand for cotton process fell based on a reduced demand for raw materials. However, prices broadly recovered in March as investors perceived better economic times ahead.  Coffee prices improved substantially over the course of the quarter, as investors anticipated a reduced supply from Central and South America.

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Currency trading also detracted from performance for the quarter. Long exposures to Japanese yen and short exposures to the Euro contributed early in the quarter; however it was not enough to offset losses in the latter half of the quarter.  The foreign exchange markets were range-bound during February with declining volatility, resulting in a challenging environment for underlying managers with shorter holding periods. While demand for the U.S. dollar was strong early in the period due to high market uncertainty, late in the quarter, long U.S. dollar trades struggled following quantitative easing initiatives launched by the U.S. Federal Reserve.

The interest rate sector was the worst performing strategy for the quarter. Long U.S. treasury, Gilt, and German Bund exposures led losses, selling off despite a backdrop of stock market volatility, worsening economic conditions and regulatory uncertainty. March proved to be particularly challenging, with several government and central bank stimulus initiatives, including those by the U.S. Federal Reserve, the Bank of England, the Swiss National Bank and the Bank of Japan, creating a challenging environment for systematic managers.

April 1, 2009 to June 30, 2009

The Partnership posted a net loss for the quarter as mid-quarter gains were offset by losses early and late in the quarter. In general, Trading Advisors faced challenges as reduced volatility and shifting trends resulted in an environment with limited momentum to exploit. Overall, foreign exchange activity was the only positive contributor to gains in the currencies sector, with agriculture-based trades posting essentially flat returns. Amongst sectors producing losses for the quarter, the worst performer was interest rates, followed by energy, metals and stock indices.

While the currency sector was profitable overall, it was a complex trading environment. Many Trading Advisors started the period short select currencies, such as the Canadian dollar and the British pound. However, hopes for economic recovery and an accelerating slide in the U.S. dollar in April generated losses in these short positions early. Trade positioning quickly adjusted, and many Trading Advisors enjoyed substantial long-side gains in the Australian dollar and the Euro as the U.S. dollar experienced its sharpest monthly decline in years. However, the quarter ended with the U.S. dollar trading somewhat range-bound, creating a difficult backdrop for momentum-based strategies to profit, and leading Trading Advisors to sustain modest losses in June.

Trading in agricultural commodities also proved to be demanding, as Trading Advisors fought back from early losses to end the quarter nearly flat. April losses in long exposure to sugar were offset by later gains from a broad commodity price rally brought on by signs of improving global demand and a weakening U.S. dollar. On the short side, exposures to corn and wheat made back earlier losses as prices substantially declined on reports of increasing supplies and speculation that warm, wet weather would accelerate plant development. Meanwhile, short exposures to hogs contributed throughout the period as hog positions sold off over concerns about the H1N1 virus.

Trading in the interest rate sector struggled during the quarter, in large part due to improved market sentiment and the resulting flow of investor capital away from sovereign bonds and toward riskier assets. In particular, long exposures to Japanese government bonds, German Bunds and Gilts all declined during the period. Meanwhile, long exposure to short-term interest rates, especially in the Eurodollar, Euribor and Sterling, also detracted, adversely responding to the European Central Bank holding rates at a record low and higher-than-expected U.S. unemployment numbers. However, several Trading Advisors mitigated a portion of losses through trading long-term U.S. interest rates, which provided opportunities through both long and short exposures during the period.

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Trading in energies also contributed to losses.  Short exposures to crude oil and heating oil in April and May drove energy trading losses, as upbeat economic news and declining inventory levels positively influenced underlying energy prices. Nonetheless, select Trading Advisors profited from shorter-term tactical trades in natural gas, benefiting from short exposures in April as natural gas sold off to a 6-year low, followed by successfully trading the market through both short and long exposures as volatility increased later in the quarter.

Trading in metals also contributed to losses.  Metals saw mixed results during the quarter as long exposures to gold detracted in April and June but profited in May as investors sought inflation hedges given the sharply declining U.S. dollar. Conversely, industrial metals such as aluminum and nickel trades were profitable in April, rallying on improved economic recovery prospects. However, as market rallies extended throughout the quarter, Trading Advisors increased select short positions. Aluminum short exposures were among those that took a substantial hit as the commodity experienced its largest weekly gain in 21 years during June, contributing to an overall loss for the sector.

Trading in stock indices contributed the most to losses in the quarter.  Initial short exposures lost ground early, given broad market rallies across the globe. However, Trading Advisors reduced these positions quickly; increasing long exposures to the U.S. and holding more neutral exposures in select other markets.  While long holdings in the NASDAQ and Russell indices added overall gains as global indices continued to improve throughout the quarter on strengthening sentiment, short hedges to the Dow Jones Eurostoxx, Hang Seng and FTSE indices outweighed gains, driving an overall decline for the strategy during the quarter.

July 1, 2009 to September 30, 2009

The Partnership posted net gains for the quarter as upward momentum during the latter half of the period offset losses early on. Trading Advisors oriented toward medium and long-term trades struggled early amidst choppy markets; however, sustained trends across a diversified set of markets supported performance as the quarter progressed. Overall, stock indices was the best performing sector, posting strong gains. Trading in metals, currencies, interest rates and agricultures also positively contributed. Meanwhile, energy was the worst performing sector, experiencing overall losses. Notably, September was the fourth consecutive month that Trading Advisors reported an increase in aggregate open interest, supporting an improving outlook for market liquidity.

Trading in stock indices contributed significantly for the quarter.  Stronger than expected corporate earnings sparked a rally early in the third quarter and continued through the quarter. Long exposures drove performance declines early in July as equities sold off, but were offset by the market reversal, improving investor sentiment and increasing broad appetite for risk. In general, the S&P 500 and Dow Jones Eurostoxx indices were among the most profitable long exposures, while Asian markets were challenging for many Trading Advisors. However, long exposures to the Hang Seng exhibited strong gains during the period on optimism surrounding continued regional growth.

Contributions from metals exposure began the quarter modestly, but grew as expectations for economic recovery drove price rallies in industrial metals, punctuated by a boost from the ‘cash for clunkers’ program in the U.S. Overall, long exposures to aluminum, silver and copper were additive, with copper reaching an 11-month high in August. Meanwhile, gold briefly retreated early in the quarter in conjunction with U.S. dollar performance, but after dropping off in August, gold broke through the $1,000 psychological barrier by quarter-end, increasing 6% from intra-quarter lows as the U.S. dollar once again declined and crude oil prices soared.

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A recovering global economy and rallies in riskier assets drove gains in the currency sector throughout the quarter. Significant profits were generated in July and September as Trading Advisors took advantage of the declining U.S. dollar. Long exposures to the Australian dollar versus the U.S. dollar were particularly additive as demand for high yielding assets in the region increased and Chinese manufacturing expanded. Despite overall strength in this sector, July was particularly challenging as a recovering U.S. dollar temporarily generated setbacks in certain positions, including long exposures to the Japanese yen and Canadian dollar, but Trading Advisors were able to mitigate these losses through tactical cross rate trades and as the U.S. dollar continued its slide later in the quarter.

Trading in interest rates also proved profitable overall as central banks around the world kept interest rates on hold, but performance moderated later in the period as investors sold off U.S. treasuries in pursuit of riskier alternatives. In particular, long exposures to short-term Eurodollars and Short sterling rates contributed notably, while long exposures to Japanese government bonds were profitable during the latter half of the quarter. Exposures to Gilts tempered gains amidst the volatility surrounding multiple United Kingdom government policy announcements, including decision not to expand its asset purchase program, and reports in July that The Bank of England intended to purchase 50 billion pounds of long-dated bonds.

Agricultural based commodity trading was demanding as Trading Advisors fought back from early declines to achieve mixed results, ultimately experiencing modest profits. Negative results in July from short exposures to wheat were offset by later gains as favorable weather conditions led to increased supply and trading levels near two-year lows. Meanwhile, gains from long exposures to sugar in August only partially counterbalanced later losses from short exposures to corn as both commodities appreciated on speculation of production delays and deficits. Furthermore, short exposures to coffee also experienced notable early losses after the Brazilian government intervened to boost prices.

Volatile oil and natural gas prices led to a difficult period for trading energy positions during the third quarter. Short exposures to natural gas were additive in July and August as prices declined due to supply surpluses and reduced demand resulting from mild weather. However, natural gas prices soared over 60% in September on speculation that an economic recovery would revive demand, as well as growing expectations of a colder than expected winter, ultimately driving losses for the sector. Concurrently, choppy trading activity in crude oil contributed to Trading Advisors losses in this area for both short and long exposures, driven by counterbalancing market inputs throughout the quarter, such as the weak U.S. dollar, high inventories and concerns over reduced demand from China.

January 1, 2008 to September 30, 2008

January 1, 2008 to March 31, 2008

The Partnership had a profitable quarter, particularly from record moves across markets in January and February.  The currencies sector was the strongest sector for the quarter, followed by the interest rates, agricultural commodities, stock indices, energies, and the metals sectors.

The currency sector was the strongest performing sector for the Partnership. Long exposures to the Euro, Swiss Franc, and Japanese yen versus the U.S. dollar contributed to profits.  The U.S. dollar posted its biggest quarterly loss against the Euro in almost four years due to the dispersion in Central Bank policies.  Specifically, the U.S. Federal Reserve cut its target lending rate by 75 basis points, the most since 1984, in an attempt to revive the economy while the European Central Bank held borrowing costs at a six-year

17

high to contain inflation.  Also during March, the U.S. dollar fell below 96 Japanese yen for the first time in 12 years after the U.S. Federal Reserve made its first weekend change in borrowing costs since 1979.

Trading in interest rates also contributed significantly to profits.  Long exposures to U.S. treasuries, Eurodollars, and German bunds during January and February contributed to gains as mounting losses in credit markets and the slowing U.S. economy drove investors to the relative safety of government debt.

Trading in agricultural commodities posted gains as well, despite losses posted late in the quarter.  Long exposures to wheat, soybeans, and corn drove performance on speculation that surging Chinese demand for food, animal feeds, and bio-fuels will reduce U.S. inventories.  Although markets retreated in March from record levels that were reached earlier in the quarter, the sector was profitable overall.

Trading in stock indices was profitable throughout the quarter. Short exposures to equity indices including the S&P, Nikkei, and FTSE contributed to performance for the quarter.  For the quarter, the S&P declined over -9%, the Nikkei -17.5%, and the FTSE over - -10%.

Trading in energies also contributed despite losses early on in the quarter.  Long exposures to crude oil, heating oil, and natural gas drove performance in the energy sector.  In March, crude oil rose to a record $111 a barrel, pushing through what had been the previous inflation-adjusted record of $103.59 set in the 1980s, as the sinking value of the U.S. dollar attracted investors to commodity markets.

Trading in metals also contributed.  Long exposures to gold and silver contributed to performance on increased demand for the metals as a hedge against inflation.  For the quarter, gold rallied over +9%, surging to over $1,000 an ounce mid March, and silver rallied almost +17%.

April 1, 2008 to June 30, 2008

The Partnership had a profitable quarter, particularly due to strong performance in May and June as trends in Energy and Stock indices continued. The energy sector was the strongest sector for the quarter, followed by the stock indices and agricultural commodities.  Losses were posted in the metals, currencies and interest rates sectors.

Trading in the energy sector was the leading sector through long exposures to crude oil, heating oil and natural gas which contributed to profitability each month during the quarter as the energy sector continued to reach new highs.  During April, the continued rally of crude oil, reaching a record of $119.93 a barrel intra month, benefited from long exposures to the energy sector held by most Trading Advisors. The sector posted positive results in May, again on a continuation of the strong trends evident in the energy markets.  Crude oil futures reached $135.09 in May, the highest price since trading began, on continued high demand levels, supply constraints, and financial analysts high price outlooks.  Trading Advisors continued to hold long exposures to energy markets.  However, the Trading Advisors had reduced the size of such exposures as profit targets were hit and volatility became heightened. Long exposures to crude oil, heating oil, and natural gas continued to result in positive performance for the energy sector at quarter end.  Crude oil prices reached a record high of $140 a barrel in June, spurred by news that Libya was studying the possibility of a production cut in response to U.S. threats against oil producers and a weaker U.S. dollar.

Trading in stock indices was profitable for the quarter, despite losses early in the quarter.  The sector was the largest detraction from performance in April.  While equity markets rallied over April, the reduction of volatility as exemplified by the -18.82% decline in the VIX (the Chicago Board Options Exchange Volatility Index), made it difficult for Trading Advisors to build positions.  In June, the stock indices

18

sector was the strongest sector through short exposures.  During June, U.S. stocks tumbled, sending the Dow Jones Industrial Average to its worst June since the Great Depression, as a result of record oil prices, credit-market write downs and a slowing economy.  German stocks dropped to the lowest in three months as concern deepened that slowing economic growth will curb companies’ earnings.

Trading in agricultural commodities also contributed to performance during the quarter due to long exposures to agricultural commodities.  Mid-quarter, trading in agricultural commodities was a bit more mixed depending on manager positioning.  In June long exposures to corn and soybeans led performance as corn gained over 20% and soybeans over 17% on speculation that more rain and flooding in the U.S. Midwest may hurt crops, and as demand for commodities increased as an inflationary hedge.

Trading in metals slightly detracted from performance for the quarter.  Trading in metals, namely short exposures to aluminum, copper, and gold detracted from performance.

The currency sector posted losses for the Partnership, especially early in the quarter.  The U.S. dollar declined the first two weeks of the month compared against most major currencies, but experienced sharp reversals the second half of the month, particularly against the Euro, Swiss franc, and Japanese yen.  Short exposures to the Great Britain Pound (“GBP”) and long exposures to the Euro versus the U.S. dollar detracted.  The GBP ended the month down slightly versus the U.S. dollar, however, rallied the second half of the month and detracted from Trading Advisors’ increased short holdings.  The Euro declined 0.44% versus the U.S. dollar for the month after strengthening on surging crude oil prices, before selling off the last week of May on increased durable goods orders and revised 1st quarter gross domestic product.

Trading in interest rates was the largest detraction from performance, primarily from long exposures to Eurodollars, U.S. treasuries, and Japanese government bonds held during April.  The instruments detracted as continued inflation concerns in Europe and Japan reduced the demand for government debt and, in the case of the European Central Bank, prevented rate cuts.

July 1, 2008 to September 30, 2008

The Partnership posted losses for the quarter, as a result of difficult environments in July and August, followed by strong returns in September. Trading in stock indices and metals posted net profits, while the interest rates, agricultural commodities, currencies and energy sectors posted losses.

Trading in stock indices was the most profitable sector for the Partnership during the quarter, despite losses mid-quarter.  Short exposures to global indices held during the first half of July led gains.  In general, global indices continued their June sell off into the first few weeks of July, but recovered the last week on declining oil prices and favorable earnings releases.  In September, the stock indices sector was the best performing sector led by short exposures to the NASDAQ, S&P, DAX, and Hang Sang as global markets declined on increased speculation that credit-market losses and the economic slowdown will worsen.

Trading in metals contributed to performance for the quarter.  Short exposures to copper, silver, and aluminum led performance as concerns of a recession and continued stockpiles led to declines in base metals.

Trading in interest rates detracted from performance slightly.  The interest rate sector was the only positive performing sector for August, led by long exposures to Japanese government bonds, long Gilt, and Australian bonds.

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Trading in agricultural commodities also detracted from performance.  Long exposures to corn, soybeans, and cocoa detracted.  The strong uptrend in commodities continued into the first week of July, but reversed sharply mid month as a result of a stronger U.S. dollar, expectations of improved growing conditions, and concerns of decreasing demand.  Late in the quarter, short exposures to soybeans, cotton, corn, and orange juice contributed to reduced demand for U.S. exports and reduced use of raw materials.

Trading in currencies posted losses for the quarter, despite marginal profits early on.  Short exposures to the Japanese yen and Swiss franc versus the U.S. dollar early in the quarter contributed to performance.  Over the second half of July, the U.S. dollar recovered and advanced to a one-month high versus the Euro and the Japanese yen as U.S. consumer confidence increased and crude oil prices dropped, reducing concern the economy may fall into a recession.  The currencies sector was difficult to navigate due to the large reversal in the U.S. dollar versus the Euro, British pound, and Australian dollar.  Short exposures to the Euro and British pound versus the U.S. dollar contributed. However, exposures to the Swiss franc and Canadian dollar versus the U.S. dollar detracted.  The U.S. dollar rallied against currencies of countries with deteriorating growth prospects and those tied to declining commodity prices.

The energy sector was the worst performing sector for the quarter.  Long exposures to crude oil and natural gas led declines.  August began with long exposures to crude oil, and ended with short exposures.  During the first week of August, crude oil fell to a 14-week low on signs that the U.S. economic slump will extend into 2009, crimping fuel demand. However, mid-month crude oil jumped more than $5 as the U.S. dollar slumped.

Performance Summary — Factors Affecting Interest Income and Expenses

Cash held in accounts at the Clearing Brokers and PFPC Trust earns interest on all such assets which are not used for trading.  The low level of interest rates in 2009 in the United States negatively impacted interest income revenues when compared to 2008.   The Partnership estimates that approximately 95% of its assets are earning interest.   For the nine and three months ended September 30, 2009 the Partnership earned $823,006 and $142,919, respectively, in interest income, or approximately 0.35% and 0.06%, respectively, of the Partnership’s average month-end net assets.  For the nine and three months ended September 30, 2008, the Partnership earned $2,821,645 and $920,348, respectively, in interest income, or approximately 1.62% and 0.55%, respectively, of the Partnership’s average month-end net assets.  The average interest rates for the three and nine month periods ended September 30, 2009 were 0.55% and 0.96%, respectively.  The average interest rates for the three and nine month periods ended September 30, 2008 were 5.44% and 6.46%, respectively.

The overall expenses of the Partnership (excluding profit shares) generally vary with changes in net assets. As such, expenses that vary with net assets are higher as of September 30, 2009 when compared to the same period ending September, 30 2008 due to the overall increase in the Partnership’s net assets.  For the nine and three month periods ended September 30, 2009, Distribution, Trading Advisors’ management fees and Sponsor fees increased approximately 27% and 16%, respectively when compared to the nine and three month periods ended September 30, 2008.  This is due mostly to a 34% and 32% increase in average net assets in the nine and three month periods ended September 30, 2009 when compared to nine and three months ended September 30, 2008, partially offset by a reduced level of traded assets in the third quarter of 2009.  Profit Shares declined for the period ending September 30, 2009, when compared to the period ending September 30, 2008 primarily due to the Fund’s lower profitability and also fewer profitable Trading Advisors.

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Item 3.   Quantitative and Qualitative Disclosures About Market Risk

Quantifying the Partnership’s Trading Value at Risk

Quantitative Forward-Looking Statements

The following quantitative disclosures regarding the Partnership’s market risk exposures contain “forward-looking statements” within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act  and Section 21E of the Exchange Act).  All quantitative disclosures in this section are deemed to be forward-looking statements for purposes of the safe harbor, except for statements of historical fact.

The Partnership’s risk exposure in the various market sectors traded by the Trading Advisors is quantified below in terms of Value at Risk.  Due to the Partnership’s mark-to-market accounting, any loss in the fair value of the Partnership’s open positions is directly reflected in the Partnership’s earnings (realized or unrealized) and cash flows (at least in the case of exchange-traded contracts in which profits and losses on open positions are settled daily through variation margin).

Exchange maintenance margin requirements have been used by the Partnership as the measure of its Value at Risk.  Maintenance margin requirements are set by exchanges to equal or exceed the maximum loss in the fair value of any given contract incurred in 95% - 99% of the one-day time periods included in the historical sample (generally approximately one year) researched for purposes of establishing margin levels.  Maintenance margin levels are established by dealers and exchanges using historical price studies, as well as an assessment of current market volatility and economic fundamentals, to provide a probabilistic estimate of the maximum expected near-term one-day price fluctuation.

In the case of market sensitive instruments which are not exchange-traded (almost exclusively currencies in the case of the Partnership), the margin requirements for the equivalent futures positions have been used as Value at Risk. In those rare cases in which a futures-equivalent margin is not available, dealers’ margins have been used.

The fair value of the Partnership’s futures and forward positions does not have any optionality component. However, certain of the Trading Advisors trade commodity options.  The Value at Risk associated with options is reflected in the following table as the margin requirement attributable to the instrument underlying each option.

In quantifying the Partnership’s Value at Risk, 100% positive correlation in the different positions held in each market risk category has been assumed. Consequently, the margin requirements applicable to the open contracts have been aggregated to determine each trading category’s aggregate Value at Risk.  The diversification effects resulting from the fact that the Partnership’s positions are rarely, if ever, 100% positively correlated, have not been reflected.

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The Partnership’s Trading Value at Risk in Different Market Sectors

The following tables indicate the average, highest and lowest trading Value at Risk associated with the Partnership’s open positions by market category for the period ending September 30, 2009. During the period, the Partnership’s average capitalization was $235,680,055.

	Average		% of Average		Highest Value		Lowest Value
Market Sector	Value at Risk		Capitalization		At Risk		At Risk
Agriculture	$	244,360	0.10	%	$	521,322	$	38,459
Currencies	932,158		0.40	%	2,313,920		64,665
Energy	140,966		0.06	%	361,190		9,197
Interest Rates	13,234,444		5.61	%	15,351,436		10,965,172
Metals	186,326		0.08	%	608,904		5,252
Stock Indices	771,488		0.33	%	1,703,606		76,124
TOTAL	$	15,509,742	6.58	%	$	20,860,378	$	11,158,869

Average, highest and lowest Value at Risk amounts relate to the month-end amounts for each month-end during the period. Average Capitalization is the average of the Partnership’s capitalization at the end of each calendar month during the period.

Item 4T. Controls and Procedures

BRIM, the General Partner of the Partnership, with the participation of the Partnership’s president as Principal Executive Officer of the Partnership (“President”) and the Chief Financial Officer, has evaluated the effectiveness of the design and operation of its disclosure controls and procedures with respect to the Partnership as of the end of the period of this quarterly report and, based on this evaluation, has concluded that these disclosure controls and procedures are effective.

Changes in Internal Control over Financial Reporting

There were no significant changes in the Partnership’s internal controls or in other factors that could significantly affect those controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

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PART II - OTHER INFORMATION

Item 1.	Legal Proceedings
	None.
Item 1A.	Risk Factors
	None.
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.
	(a)	The table below represents the units issued to accredited investors pursuant to Regulation D and Section 4(2) under the Securities Act.

SERIES A

	Subscription
	Amount		Units	NAV
Jan-08	$	500,000	508,388	$	0.9835
Feb-08	65,000		64,210	1.0123
Mar-08	1,134,998		1,061,044	1.0697
Apr-08	1,959,998		1,836,064	1.0675
May-08	6,599,996		6,357,153	1.0382
Jun-08	540,000		517,439	1.0436
Jul-08	—		—	1.0724
Aug-08	19,065,001		18,406,064	1.0358
Sep-08	17,929,001		17,709,404	1.0124
Oct-08	2,570,001		2,449,719	1.0491
Nov-08	554,999		487,997	1.1373
Dec-08	10,383,749		8,914,620	1.1648
Jan-09	5,118,998		4,359,562	1.1742
Feb-09	2,670,999		2,262,408	1.1806
Mar-09	4,150,999		3,528,561	1.1764
Apr-09	6,838,937		6,036,664	1.1329
May-09	6,646,005		6,040,724	1.1002
Jun-09	9,055,908		8,115,340	1.1159
Jul-09	11,945,891		10,947,482	1.0912
Aug-09	7,475,907		6,852,972	1.0909
Sep-09	7,084,958		6,483,307	1.0928

SERIES I

	Subscription
	Amount		Units	NAV
Jan-08	$	—	—	$	1.0520
Feb-08	—		—	1.0850
Mar-08	—		—	1.1492
Apr-08	—		—	1.1493
May-08	—		—	1.1204
Jun-08	—		—	1.1290
Jul-08	—		—	1.1630
Aug-08	—		—	1.1261
Sep-08	—		—	1.1033
Oct-08	—		—	1.1491
Nov-08	—		—	1.2499
Dec-08	—		—	1.2837
Jan-09	—		—	1.2972
Feb-09	—		—	1.3073
Mar-09	—		—	1.3062
Apr-09	124,998		99,087	1.2615
May-09	20,000		16,288	1.2279
Jun-09	—		—	1.2477
Jul-09	19,999		16,351	1.2231
Aug-09	—		—	1.2258
Sep-09	269,999		219,404	1.2306

(b) None.

23

(c) Limited Partners in unitized series may redeem their Units at the end of each calendar month at the then current month-end Net Asset Value per Unit.  The redemption of Units has no impact on the value of Units that remain outstanding, and Units are not reissued once redeemed.

The following table summarizes the redemptions by Limited Partners during the third calendar quarter of 2009:

Series F

		Redemption Date
Month	Units Redeemed	NAV Per Unit
July 31, 2009	415	$	262.49
August 31, 2009	1,040	262.94
September 30, 2009	492	266.56
Total	1,947

Series A

		Redemption Date
Month	Units Redeemed	NAV Per Unit
July 31, 2009	1,122,817	$	1.0909
August 31, 2009	4,681,007	1.0928
September 30, 2009	833,081	1.1078
Total	6,636,905

Series G

		Redemption Date
Month	Units Redeemed	NAV Per Unit
July 31, 2009	361,661	$	1.1368
August 31, 2009	245,264	1.1388
September 30, 2009	252,040	1.1544
Total	858,965

Series I

		Redemption Date
Month	Units Redeemed	NAV Per Unit
July 31, 2009	—	$	1.2258
August 31, 2009	—	1.2306
September 30, 2009	—	1.2503
Total	—

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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

(a) Exhibits
The following exhibits are incorporated by reference or are filed herewith to this Quarterly Report on Form 10-Q:
31.01 and
31.02	Rule 13a-14(a)/15d-14(a) Certifications
Exhibit 31.01
and 31.02:	Are filed herewith.
32.01 and
32.02	Section 1350 Certifications
Exhibit 32.01
and 32.02	Are filed herewith.

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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.

	BLACKROCK GLOBAL HORIZONS I L.P.
	By: BLACKROCK INVESTMENT MANAGEMENT, LLC
	(General Partner)
Date: November 16, 2009	By	/s/ EDWARD RZESZOWSKI
		Edward Rzeszowski
		President
		(Principal Executive Officer)
Date: November 16, 2009	By	/s/ MICHAEL L. PUNGELLO
		Michael L. Pungello
		Chief Financial Officer
		(Chief Financial Officer)

26