MAN AHL DIVERSIFIED I LP - Quarter Report: 2008 June (Form 10-Q)

efc8-1166_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2008

[ ]	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: 000-53043

Man-AHL Diversified I L.P.

(Exact name of registrant as specified in charter)

Delaware		06-1496634
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

c/o Man Investments (USA) Corp.
123 North Wacker Drive
28th Floor
Chicago, Illinois		60606
(Address of principal executive offices)		(Zip Code)

(312) 881-6800

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer (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 [ ]	Accelerated Filer [ ]

Non-Accelerated Filer []	Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [ ] No [X]

PART I - FINANCIAL INFORMATION

ITEM 1. Financial Statements

Man-AHL Diversified I, L.P.

Financial Statements

STATEMENTS OF FINANCIAL CONDITION (a)

STATEMENTS OF OPERATIONS (b)

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (c)

STATEMENTS OF CASH FLOWS (b)

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)

(a)	At June 30, 2008 (unaudited) and December 31, 2007

(b)	For the three months ended June 30, 2008 and 2007 (unaudited) and for the six months ended June 30, 2008 and 2007 (unaudited)

(c)	For the six months ended June 30, 2008 and 2007 (unaudited)

MAN-AHL DIVERSIFIED I L.P.
(A Delaware Limited Partnership)

STATEMENTS OF FINANCIAL CONDITION


	June 30, 2008 (unaudited)		December 31, 2007
ASSETS

CASH	$	25,125,202	$	4,225,671

INVESTMENT IN MAN-AHL DIVERSIFIED
TRADING COMPANY L.P.		120,904,873		59,555,095

DUE FROM MAN-AHL DIVERSIFIED
TRADING COMPANY L.P.		2,663,041		889,224

OTHER ASSETS		295		771

TOTAL	$	148,693,411	$	64,670,761


LIABILITIES AND PARTNERS’ CAPITAL

LIABILITIES:
Redemptions payable	$	1,814,631	$	605,316
Subscriptions received in advance		25,125,202		4,225,671
Management fees payable		308,657		150,779
Incentive fees payable		434,529		-
Brokerage commissions payable		20,671		67,505
Accrued expenses		84,553		66,100

Total liabilities		27,788,243		5,115,371

PARTNERS’ CAPITAL:
General Partner (186 unit equivalents outstanding
at June 30, 2008 and December 31, 2007, respectively)		631,976		539,353
Limited Partners (35,469 and 20,393 units outstanding
at June 30, 2008 and December 31, 2007, respectively)		120,273,192		59,016,037

Total partners’ capital		120,905,168		59,555,390

TOTAL	$	148,693,411	$	64,670,761

NET ASSET VALUE PER OUTSTANDING UNIT OF
PARTNERSHIP INTEREST	$	3,390.91	$	2,893.93


See accompanying notes and attached financial statements
of Man-AHL Diversified Trading Company L.P.

MAN-AHL DIVERSIFIED I L.P.
(A Delaware Limited Partnership)

STATEMENTS OF OPERATIONS (UNAUDITED)


	For the three			For the three			For the six			For the six
	months ended			months ended			months ended			months ended
	June 30, 2008			June 30, 2007			June 30, 2008			June 30, 2007

NET INVESTMENT INCOME
ALLOCATED FROM MAN-AHL
DIVERSIFIED TRADING COMPANY L.P. -
Interest income	$	574,809		$	411,658		$	1,088,781		$	751,321

PARTNERSHIP EXPENSES:
Brokerage commissions		228,214			348,497			624,814			653,967
Management fees		820,725			318,604			1,416,838			573,364
Incentive fees		943,253			621,690			3,211,277			741,945
Other expenses		90,382			17,211			124,695			31,225

Total expenses		2,082,574			1,306,002			5,377,624			2,000,501

Net investment loss		(1,507,765	)		(894,344	)		(4,288,843	)		(1,249,180	)

REALIZED AND UNREALIZED GAINS
(LOSSES) ON TRADING ACTIVITIES
ALLOCATED FROM MAN-AHL
DIVERSIFIED TRADING COMPANY L.P.:
Net realized trading gains
on closed contracts		5,447,631			5,753,083			18,726,225			4,302,136
Net change in unrealized trading gains
(losses) on open contracts		(166,855	)		484,875			(1,566,779	)		64,095

Net gains on trading activities allocated
from Man-AHL Diversified
Trading Company L.P.		5,280,776			6,237,958			17,159,446			4,366,231

NET INCOME	$	3,773,011		$	5,343,614		$	12,870,603		$	3,117,051


NET INCOME PER UNIT
OF PARTNERSHIP INTEREST	$	109.50		$	338.93		$	496.98		$	186.65

See accompanying notes and attached financial statements
of Man-AHL Diversified Trading Company L.P.

MAN-AHL DIVERSIFIED I L.P.

(A Delaware Limited Partnership)

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007

	Limited			General
	Partners			Partner		Total

PARTNERS’ CAPITAL — December 31, 2006	$	28,997,055		$	476,310	$	29,473,365

Issuance of 5,656 units of limited partnership interest		14,338,661			-		14,338,661
Redemptions of 984 units of limited partnership interest		(2,490,159	)		-		(2,490,159	)
Net income		3,082,264			34,787		3,117,051

PARTNERS’ CAPITAL — June 30, 2007	$	43,927,821		$	511,097	$	44,438,918

PARTNERS’ CAPITAL — December 31, 2007	$	59,016,037		$	539,353	$	59,555,390

Issuance of 17,429 units of limited partnership interest		56,130,636			-		56,130,636
Redemption of 2,353 units of limited partnership interest		(7,651,461	)		-		(7,651,461	)
Net income		12,777,980			92,623		12,870,603

PARTNERS’ CAPITAL — June 30, 2008	$	120,273,192		$	631,976	$	120,905,168


See accompanying notes and attached financial statements
of Man-AHL Diversified Trading Company L.P.

MAN-AHL DIVERSIFIED I L.P.
(A Delaware Limited Partnership)

STATEMENTS OF CASH FLOWS (UNAUDITED)

	For the three			For the three			For the six			For the six
	months ended			months ended			months ended			months ended
	June 30, 2008			June 30, 2007			June 30, 2008			June 30, 2007

CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income	$	3,773,011		$	5,343,614		$	12,870,603		$	3,117,051
Adjustments to reconcile net income
to net cash used in operating activities:
Purchases of investment in Man-AHL
Diversified Trading Company L.P.		(32,013,357	)		(6,212,353	)		(53,710,438	)		(14,338,660	)
Sales of investment in Man-AHL
Diversified Trading Company L.P.		4,767,986			2,737,057			8,835,070			4,143,136
Net change in appreciation of investment
in Man-AHL Diversified
Trading Company L.P.		(5,855,585	)		(6,649,616	)		(18,248,227	)		(5,117,552	)
Changes in assets and liabilities:
Other assets		-			(340	)		476			(340	)
Management fees payable		82,923			25,298			157,878			38,237
Incentive fees payable		329,298			380,760			434,529			380,760
Brokerage commissions payable		(106,886	)		23,053			(46,834	)		29,053
Accrued expenses		38,291			(16,734	)		18,453			(20,817	)

Net cash used in operating activities		(28,984,319	)		(4,369,261	)		(49,688,490	)		(11,769,132	)

CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from subscriptions		48,181,788			8,295,096			74,609,969			17,293,228
Payments on redemptions		(3,029,038	)		(1,843,094	)		(4,021,948	)		(2,579,928	)

Net cash provided by financing activities		45,152,750			6,452,002			70,588,021			14,713,300

NET INCREASE IN CASH		16,168,431			2,082,741			20,899,531			2,944,168

CASH — Beginning of period		8,956,771			2,574,059			4,225,671			1,712,632

CASH — End of period	$	25,125,202		$	4,656,800		$	25,125,202		$	4,656,800

SUPLEMENTAL DISCLOSURE OF
NON-CASH TRANSACTIONS:
Non-cash contributions of partners' capital	$	1,560,375		$	-		$	2,420,198		$	-

Non-cash redemptions of partners' capital	$	(1,560,375	)	$	-		$	(2,420,198	)	$	-


See accompanying notes and attached financial
statements of Man-AHL Diversified
Trading Company L.P.

Notes to Financial Statements (unaudited)

The accompanying unaudited financials statements, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of Man-AHL Diversified I L.P’s (a Delaware Limited Partnership) (the “Partnership”) financial condition at June 30, 2008 and the results of its operations for the three months ended June 30, 2008 and 2007 and six months ended June 30, 2008 and 2007. These financial statements present the results of interim periods. It is suggested that these financial statements be read in conjunction with the audited financial statements and registration statement on Form 10 filed with the Securities and Exchange Commission on January 28, 2008 and amended March 26, 2008. The December 31, 2007 information has been derived from the audited financial statements as of December 31, 2007.

1.	ORGANIZATION OF THE PARTNERSHIP

Man-AHL Diversified I L.P. (a Delaware Limited Partnership) (the “Partnership”) was organized in September 1997 under the Delaware Revised Uniform Limited Partnership Act and commenced operations on April 3, 1998, for the purpose of engaging in the speculative trading of futures and forward contracts. The Partnership is a “feeder” fund in a “master-feeder” structure whereby the Partnership invests substantially all of its assets in Man-AHL Diversified Trading Company L.P. (the “Trading Company”). Man-AHL (USA) Corp., a Delaware corporation, was the general partner and trading advisor of the Partnership and the Trading Company until April 1, 2005, when it transferred its trading advisory business to its affiliate, Man-AHL (USA) Ltd. (the “Advisor”), a United Kingdom company, and its commodity pool operations to its affiliate, Man Investments (USA) Corp. (the “General Partner”), a Delaware corporation and a registered investment adviser under the Investment Advisers Act of 1940. Man Investments Holdings Limited, a United Kingdom holding company that is part of Man Group plc, a United Kingdom public limited company, is the sole shareholder of the Advisor, and Man Investments Holdings Inc., a Delaware corporation that is part of Man Group plc, is the sole shareholder the General Partner.

The Partnership’s interests are distributed through the Partnership or other selling agents, including Man Investments Inc. (“MII”), an affiliate of the Advisor and General Partner. MII is a registered broker-dealer and a member of the Financial Industry Regulatory Authority (FINRA).

On January 28, 2008, the Partnership filed a registration statement with the Securities and Exchange Commission to allow over 500 investors in the Partnership.

2.	SIGNIFICANT ACCOUNTING POLICIES

The Partnership prepares its financial statements in conformity with accounting principles generally accepted in the United States of America. The following is a summary of the significant accounting and reporting policies used in preparing the financial statements.

Investment in Man-AHL Diversified Trading Company L.P. — The Partnership’s investment in the Trading Company is valued at fair value at the Partnership’s proportionate interest in the net assets of the Trading Company. Investment transactions are recorded on a trade date basis. The performance of the Partnership is directly affected by the performance of the Trading Company. Attached are the financial statements of the Trading Company, which are an integral part of these financial statements. Valuation of investments held by the Trading Company is discussed in the notes to the Trading Company’s financial statements.

The Partnership can redeem any or all of its limited partnership interests in the Trading Company at any month-end at the net asset value per unit of the Trading Company. At June 30, 2008 and 2007, the Partnership owned 13,121 and 6,622 units, respectively, of the Trading Company. The

Partnership’s ownership percentage of the Trading Company at June 30, 2008 and 2007, was 32.11% and 19.33%, respectively.

Cash and Cash Equivalents — Cash and cash equivalents include cash and short-term interest bearing money market instruments with original maturities of 90 days or less, held with JPMorgan Chase, N.A.

Brokerage Commission Expense — Brokerage commission expense on futures and forward contracts traded in the Trading Company is recognized on a half-turn basis in the period in which the contracts are opened or closed.

Income Taxes — Income taxes are not provided for by the Partnership because taxable income or loss of the Partnership is includable in the income tax returns of the individual partners.

In July 2006, the Financial Accounting Standards Board (“FASB”) issued Interpretation No. 48 (“FIN 48”) entitled, Accounting for Uncertainty in Income Taxes — an interpretation of FASB Statement No. 109. FIN 48 prescribes the minimum recognition threshold a tax position must meet in connection with accounting for uncertainties in income tax positions taken or expected to be taken by an entity before being measured and recognized in the financial statements. The implementation of FIN 48 had no impact on the Partnership’s financial statements. Tax years 2005, 2006 and 2007 remain subject to examination by Federal and State jurisdictions, including those States where investors reside or States where the Partnership is subject to other filing requirements.

Net Income (Loss) Per Unit — Net income (loss) per unit of partnership interest is equal to the change in net asset value per unit from the beginning of the period to the end of the period. Unit amounts are rounded to whole numbers for financial statement presentation.

Subscriptions Received in Advance — Subscriptions received in advance are comprised of cash received prior to the statement of financial condition date for which units were issued on the first day of the following month. Subscriptions received in advance do not participate in the earnings of the Partnership until the related units are issued.

Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the General Partner 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.

3.	LIMITED PARTNERSHIP AGREEMENT

The General Partner and each limited partner share in the profits and losses of the Partnership in proportion to the number of units or unit equivalents held by each partner. However, no limited partner is liable for obligations of the Partnership in excess of its capital subscription and net profits or losses, if any.

The Partnership’s units are continuously offered as of the first business day of each month at net asset value, as defined in the limited partnership agreement (the “Agreement”). Limited partners may redeem any or all of their units as of the end of any month at net asset value per unit on 10 days prior written notice to the General Partner. The Partnership will be dissolved on December 31, 2037, or upon the occurrence of certain events, as specified in the Agreement.

The General Partner is required to make and maintain a general partner investment in the Partnership in an aggregate amount equal to the lesser of 1.01 % of the net aggregate capital subscriptions of all partners, or $500,000.

Distributions (other than redemptions of units), if any, are made on a pro rata basis at the sole discretion of the General Partner.

Under the terms of the Agreement, the Partnership is liable for all costs associated with executing its business strategy. These costs include, but are not limited to expenses associated with the execution of the Partnership’s investments strategy, such as, brokerage commissions, management and incentive fees and other operating expenses, such as legal, audit, and tax return preparation fees.

EXPENSES

The Advisor earns a monthly management fee in an amount equal to 0.1667% (2% annually) of the month-end net asset value, as defined in the Agreement, of the Partnership.

The Advisor also earns a monthly incentive fee equal to 20% of any Net New Appreciation, as defined in the Agreement, achieved by the Partnership. The incentive fee is retained by the Advisor even if subsequent losses are incurred; however, no subsequent incentive fees will be paid to the Advisor until any such trading losses are recouped by the Partnership.

The General Partner earns a monthly General Partner fee in an amount equal to 0.0833% (1% annually) of the month-end net asset value, as defined in the Agreement, of the Partnership. The General Partner fee is included in management fees in the statements of operations.

5.	DERIVATIVE FINANCIAL INSTRUMENTS

The Partnership’s operating activities involve trading, indirectly through its investment in the Trading Company, in derivative financial instruments that involve varying degrees of market and credit risk. With respect to the Partnership’s investment in the Trading Company, the Partnership has limited liability, and, therefore, its maximum exposure to either market or credit loss is limited to the carrying value of its investment in the Trading Company, as set forth in the statements of financial condition.

The Trading Company utilizes MF Global, Inc. (“MFG”), formerly known as Man Financial Inc. (Man) to clear its futures business. Effective April 14, 2008, the Trading Company also began utilizing Credit Suisse to clear its futures business. Also, effective April 22, 2008, the Trading Company began utilizing Royal Bank of Scotland (“RBS”) to clear its forward business.

6.	FINANCIAL GUARANTEES

The Partnership enters into administrative and other professional service contracts that contain a variety of indemnifications. The Partnership’s maximum exposure under these arrangements is not known; however, the Partnership has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

7.	RECENT ACCOUNTING PRONOUNCEMENTS

Statement of Financial Accounting Standards No. 161 (“SFAS 161”), Disclosures about Derivative Instruments and Hedging Activities was issued on March 19, 2008. SFAS 161 expands the disclosures required by Statement of Financial Accounting Standards No. 133, Accounting for Derivatives and Hedging Activities about an entity’s derivative instruments and hedging activities. SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. The Partnership is currently evaluating the provisions of SFAS 161 and their impact on the Partnership’s financial statements.

8.	FAIR VALUE MEASUREMENTS

Effective January 1, 2008, the Partnership has adopted the provisions of the Statement of Financial Accounting Standard No. 157 (“SFAS 157”), Fair Value Measurements. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The adoption of SFAS 157 had no impact on the net assets of the Partnership.

The Partnership segregates its investments into three levels based upon the inputs used to derive the fair value. “Level 1” investments use inputs from unadjusted quoted prices from active markets. “Level 2” investments reflect inputs other than quoted prices, but use observable market data. “Level 3” investments are valued using unobservable inputs. These unobservable inputs for “Level 3” investments reflect the Partnership’s assumption about the assumptions market participants would use in pricing the investments. As of June 30, 2008, all of the Partnership’s investments are “Level 3”. Net appreciation from the Partnership’s “Level 3” investments was $18,248,227, reflected on the statement of operations as income allocated from Man-AHL Diversified Trading Company L.P.

9.	SUBSEQUENT EVENT

Effective July 1, 2008, the Partnership issued a new share class, Class B. The total proceeds from the issuance was $10,679,012.

Man-AHL Diversified Trading Company L.P.

Financial Statements

STATEMENTS OF FINANCIAL CONDITION (a)

STATEMENTS OF OPERATIONS (b)

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (c)

STATEMENTS OF CASH FLOWS (b)

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)

(a)	At June 30, 2008 (unaudited) and December 31, 2007

(b)	For the three months ended June 30, 2008 and 2007 (unaudited) and for the six months endedJune 30, 2008 and 2007 (unaudited)

(c)	For the six months ended June 30, 2008 and 2007 (unaudited)

MAN-AHL DIVERSIFIED TRADING COMPANY L.P.
(A Delaware Limited Partnership)

STATEMENTS OF FINANCIAL CONDITION

	June 30, 2008
	(unaudited)			December 31, 2007
ASSETS

Equity in commodity futures and forwards
trading accounts:
Net unrealized trading gains on open futures contracts	$	4,942,327		$	5,247,868
Net unrealized trading gains (losses) on open forward contracts		(740,181	)		2,411,929
Due from broker		41,734,969			96,297,513
		45,937,115			103,957,310

Cash and cash equivalents		336,814,010			158,733,582

Interest receivable		84,512			148,527

TOTAL	$	382,835,637		$	262,839,419


LIABILITIES AND PARTNERS’ CAPITAL

LIABILITIES — Redemptions payable	$	6,357,068		$	2,629,598

PARTNERS’ CAPITAL:
General Partner		-			-
Limited Partners (40,857 and 35,195 units outstanding
at June 30, 2008 and December 31, 2007, respectively)		376,478,569			260,209,821

Total partners’ capital		376,478,569			260,209,821

TOTAL	$	382,835,637		$	262,839,419

NET ASSET VALUE PER OUTSTANDING UNIT OF
PARTNERSHIP INTEREST	$	9,214.62		$	7,393.28


See notes to financial statements.

MAN-AHL DIVERSIFIED TRADING COMPANY L.P.
(A Delaware Limited Partnership)

STATEMENTS OF OPERATIONS (UNAUDITED)

	For the three			For the three		For the six			For the six
	months ended			months ended		months ended			months ended
	June 30, 2008			June 30, 2007		June 30, 2008			June 30, 2007

NET INVESTMENT INCOME:
Interest income	$	1,921,985		$	2,215,267	$	3,974,202		$	4,298,527

NET REALIZED AND UNREALIZED
GAINS (LOSSES) ON TRADING
ACTIVITIES:
Net realized trading gains on
closed contracts		17,480,365			30,827,936		68,991,602			23,497,680
Net change in unrealized trading
gains (losses) on open contracts		(299,587	)		2,861,236		(3,457,651	)		(501,115	)

NET GAIN ON TRADING
ACTIVITIES		17,180,778			33,689,172		65,533,951			22,996,565

NET INCOME	$	19,102,763		$	35,904,439	$	69,508,153		$	27,295,092


NET INCOME FOR A UNIT OF
PARTNERSHIP INTEREST	$	463.27		$	1,004.40	$	1,821.34		$	766.49

See notes to financial statements.

MAN-AHL DIVERSIFIED TRADING COMPANY L.P.
(A Delaware Limited Partnership)

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007


	Limited			General
	Partners			Partner		Total

PARTNERS’ CAPITAL — December 31, 2006	$	203,710,443		$	-	$	203,710,443

Issuance of 4,880 units of limited
partnership interest		29,365,860			-		29,365,860
Redemption of 4,889 units of limited
partnership interest		(30,445,660	)		-		(30,445,660	)
Net income		27,295,092			-		27,295,092

PARTNERS’ CAPITAL — June 30, 2007	$	229,925,735		$	-	$	229,925,735

PARTNERS’ CAPITAL — December 31, 2007	$	260,209,821		$	-	$	260,209,821

Issuance of 11,972 units of limited partnership interest		101,649,918			-		101,649,918
Redemption of 6,310 units of limited
partnership interest		(54,889,323	)		-		(54,889,323	)
Net income		69,508,153			-		69,508,153

PARTNERS’ CAPITAL — June 30, 2008	$	376,478,569		$	-	$	376,478,569


See notes to financial statements.

MAN-AHL DIVERSIFIED TRADING COMPANY L.P.
(A Delaware Limited Partnership)

STATEMENTS OF CASH FLOWS (UNAUDITED)

	For the three			For the three			For the six			For the six
	months ended			months ended			months ended			months ended
	June 30, 2008			June 30, 2007			June 30, 2008			June 30, 2007

CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income	$	19,102,763		$	35,904,439		$	69,508,153		$	27,295,092
Adjustments to reconcile net income to
net cash provided by (used in)
operating activities:
Net change in unrealized trading
(gains) losses on open contracts		299,587			(2,861,236	)		3,457,651			501,115
Changes in assets and liabilities:
Due from broker		(17,781,038	)		(29,850,774	)		54,562,544			(27,230,302	)
Accounts receivable		-			(895,458	)		-			(895,458	)
Interest receivable		62,389			(83,379	)		64,015			(102,313	)

Net cash provided by (used in)
operating activities		1,683,701			2,213,592			127,592,363			(431,866	)

CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from subscriptions		59,322,337			12,927,912			101,649,918			29,365,860
Payments on redemptions		(33,013,897	)		(13,138,365	)		(51,161,853	)		(24,953,638	)

Net cash provided by (used in)
financing activities		26,308,440			(210,453	)		50,488,065			4,412,222

NET INCREASE IN CASH
AND CASH EQUIVALENTS		27,992,141			2,003,139			178,080,428			3,980,356

CASH AND CASH EQUIVALENTS
Beginning of period		308,821,869			152,895,682			158,733,582			150,918,465

CASH AND CASH EQUIVALENTS
End of period	$	336,814,010		$	154,898,821		$	336,814,010		$	154,898,821


See notes to financial statements.

Notes to Financial Statements (unaudited)

The accompanying unaudited financials statements, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of Man-AHL Diversified Trading Company L.P.’s (a Delaware Limited Partnership) (the “Partnership”) financial condition at June 30, 2008 and the results of its operations for the three months ended June 30, 2008 and 2007 and six months ended June 30, 2008 and 2007. These financial statements present the results of interim periods. It is suggested that these financial statements be read in conjunction with the audited financial statements. The December 31, 2007 information has been derived from the audited financial statements as of December 31, 2007.

1.	ORGANIZATION OF THE PARTNERSHIP

Man-AHL Diversified Trading Company L.P. (a Delaware Limited Partnership) (the “Partnership”) was organized in November 1997 under the Delaware Revised Uniform Limited Partnership Act and commenced operations on April 3, 1998, for the purpose of engaging in the speculative trading of futures and forward contracts. Man Investments (USA) Corp. (the “General Partner”), a Delaware corporation and a registered investment adviser under the Investment Advisers Act of 1940, serves as the Partnership’s general partner. The General Partner is a subsidiary of Man Group plc, a United Kingdom public limited company that is listed on the London Stock Exchange. The General Partner oversees the operations and management of the Partnership. The General Partner is registered with the Commodity Futures Trading Commission (“CFTC”) as a commodity pool operator and commodity trading adviser and is a member of the National Futures Association (“NFA”).

The Partnership was formed to serve as a trading vehicle for certain limited partnerships sponsored by the General Partner in a “master-feeder” structure. The limited partners, Man-AHL Diversified I L.P., Man-AHL Diversified II L.P., and Man-AHL Diversified L.P., are limited partnerships whose general partner is the General Partner.

Man-AHL (USA) Ltd. (the “Advisor”), a limited liability company incorporated in the United Kingdom, acts as trading advisor to the Partnership. The Advisor is an affiliate of the General Partner and a subsidiary of Man Group plc. The Advisor is registered with the CFTC as a commodity pool operator and commodity trading advisor, and is a member of the NFA, in addition to registration with the Financial Services Authority in the United Kingdom.

2.	SIGNIFICANT ACCOUNTING POLICIES

Due From Broker — Effective April 14, 2008, the Partnership began utilizing Credit Suisse to clear its futures business. Also, effective April 22, 2008, the Partnership began utilizing Royal Bank of Scotland (“RBS”) to clear its forward business. Due from broker consists of balances due from MF Global, Inc. (“MFG”), formerly known as Man Financial Inc. (Man), Credit Suisse, and RBS. In general, the brokers pay the Partnership interest monthly, based on agreed upon rates, on the Partnership’s average daily balance.

MFG, Credit Suisse and RBS are registered with the CFTC as futures commission merchants and are members of the NFA.

Derivative Contracts — In the normal course of business, the Partnership enters into derivative contracts (derivatives) for trading purposes. Derivatives include futures and forward contracts. The Partnership records its derivative activities at fair value. Futures contracts which are traded on a national exchange are valued at the close price as of the valuation day, or if no sale occurred on such

day, at the close price on the most recent date on which a sale occurred. Forward contracts, which are not traded on a national exchange, are valued at fair value using current market quotations provided by brokers.

Foreign Currency Translation — Assets, liabilities, gains, and losses denominated in foreign currencies are translated at exchange rates at the date of valuation. The resulting net realized and unrealized foreign exchange gains and losses are recorded in net realized and unrealized gains (losses) on trading activities in the statements of operations.

Income Recognition — Realized and unrealized trading gains and losses on futures and forward contracts, which represent the difference between cost and selling price or fair value, are recognized currently in the statements of operations. All trading activities are accounted for on a trade-date basis. Interest income is recorded on an accrual basis.

Income Taxes — Income taxes are not provided for by the Partnership because taxable income or loss of the Partnership is includable in the income tax returns of the partners.

3.	ADVISORY AGREEMENT AND PARTNERSHIP AGREEMENT

The Advisor is the sole trading advisor to the Partnership.

The General Partner and limited partners share in the profits and losses of the Partnership in proportion to the number of units or unit equivalents held by each partner. However, no limited partner is liable for obligations of the Partnership in excess of its capital contribution and net profits or losses, if any. The General Partner owned no direct interest in the Partnership during the six month periods ended June 30, 2008 and 2007.

Distributions (other than redemption of units), if any, are made on a pro rata basis at the sole discretion of the General Partner.

The Partnership incurs no expenses. The limited partners are responsible for expenses incurred in connection with the Partnership’s activities. These expenses include, but are not limited to, all costs relating to trading activity, such as brokerage commissions, management and incentive fees, continuing offering expenses and legal, audit, and tax return preparation fees.

Partner contributions occur as of the first day of any month at the opening net asset value. Limited partners may redeem any or all of their units as of the end of any month at net asset value per unit on 10 days prior written notice to the General Partner. The General Partner may suspend redemptions of units of the Partnership’s investments that are illiquid only if the Partnership’s ability to withdraw capital from any investment is restricted. The Partnership will be dissolved on December 31, 2037, or upon the occurrence of certain events, as specified in the limited partnership agreement (the “Agreement”).

4.	DERIVATIVE FINANCIAL INSTRUMENTS

The Partnership trades derivative financial instruments that involve varying degrees of market and credit risk. Market risks may arise from unfavorable changes in interest rates, foreign exchange rates, or the fair values of the instruments underlying the contracts. All contracts are stated at fair value, and changes in those values are reflected in the change in net unrealized trading gains (losses) on open contracts in the statements of operations.

Credit risk arises from the potential inability of counterparties to perform in accordance with the terms of the contract. The credit risk from counterparty nonperformance associated with these instruments is the net unrealized gain, if any, included in the statements of financial condition. Forward contracts are entered into on an arm’s-length basis with RBS. For exchange-traded contracts, the clearing organization functions as the counterparty of specific transactions and, therefore, bears the risk of delivery to and from counterparties to specific positions, which mitigates the credit risk of these instruments. At June 30, 2008 and December 31, 2007 estimated credit risk with regard to forward contracts was $0 and $2,411,929, respectively.

The Partnership trades in exchange-traded futures contracts on various underlying commodities, foreign currencies, and financial instruments, as well as forward contracts on foreign currencies. Fair values of futures and forward contracts are reflected net by counterparty or clearing broker in the statements of financial condition.

The Partnership’s funds held by, and cleared through, MFG, Credit Suisse and RBS are required to be held in segregated accounts under rules of the CFTC. These funds are used to meet minimum margin requirements for all of the Partnership’s open futures positions as set by the exchange where each contract is traded. These requirements are adjusted, as needed, due to daily fluctuations in the values of the underlying positions. Certain positions may be liquidated, if necessary, to satisfy resulting changes in margin requirements.

5.	FINANCIAL GUARANTEES

6.	RECENT ACCOUNTING PRONOUNCEMENTS

7.	FAIR VALUE MEASUREMENTS

The Partnership segregates its investments into three levels based upon the inputs used to derive the fair value. “Level 1” investments use inputs from unadjusted quoted prices from active markets. “Level 2” investments reflect inputs other than quoted prices, but use observable market data. “Level 3” investments are valued using unobservable inputs. These unobservable inputs for “Level 3” investments reflect the Partnership’s assumption about the assumptions market participants would use in pricing the investments. As of June 30, 2008, the Partnership did not have any positions in “Level 3”.

The following is a summary of the inputs used in valuing the Partnership’s assets and liabilities at fair value:

ITEM 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Introduction

Reference is made to Item 1, “Financial Statements.” The information contained therein is essential to, and should be read in conjunction with, the following analysis.

Operational Overview

Man-AHL Diversified I L.P. (the “Partnership”) is a speculative managed futures fund which trades pursuant to the AHL Diversified Program, directed on behalf of the Partnership by Man-AHL (USA) Limited. The AHL Diversified Program is a futures and forward price trend-following trading system, entirely quantitative in nature, and implements trading positions on the basis of statistical analyses of past price histories. The AHL Diversified Program is proprietary and confidential, so that substantially the only information that can be furnished regarding the Partnership’s results of operations is contained in the performance record of its trading. Unlike operating businesses, general economic or seasonal conditions do not directly affect the profit potential of the Partnership, and its past performance is not necessarily indicative of its futures results. Man Investments (USA) Corp. the general partner of the Partnership (the “General Partner”) does believe, however, that there are certain market conditions, for example, markets with pronounced price trends, in which the Partnership has a greater likelihood of being profitable than in other market environments.

Capital Resources and Liquidity

Units may be offered for sale as of the beginning, and may be redeemed as of the end, of each month.

The Partnership raises additional capital only through the sale of Units and capital is increased through trading profits (if any) and interest income. The Partnership does not engage in borrowing. The Partnership, not being an operating company, does not incur capital expenditures. It functions solely as a passive trading vehicle, investing the substantial majority of its assets in Man-AHL Diversified Trading Company L.P. (the “Trading Company”). Its remaining capital resources are used only as assets available to make further investments in the Trading Company and pay Partnership level expenses. Accordingly, the amount of capital raised for the Partnership should not have a significant impact on its operations.

Partnership assets not invested in the Trading Company are maintained in cash and cash equivalents in bank accounts or accounts with the JPMorgan Chase Bank, N.A. (the “Broker”) and are readily available to the Partnership. The Partnership may redeem any part or all of its limited partnership interest in the Trading Company at any month-end at the net asset value per unit of the Trading Company. The Trading Company’s assets are generally held as cash or cash equivalents which are used to margin futures and forward contracts and other over-the-counter contract positions and are withdrawn, as necessary, to pay redemptions (to the Partnership and other investors in the Trading Company). Other than potential market-imposed limitations on liquidity, due, for example, to limited open interest in certain futures markets or to daily price fluctuation limits, which are inherent in the Trading Company’s futures trading, the Trading Company’s assets are highly liquid and are expected to remain so.

There have been no material changes with respect to the Partnership's critical accounting policies, off-balance sheet arrangements or disclosure of contractual obligations as reported in the Partnership's Form 10 filed January 28, 2008 and amended March 26, 2008.

Results of Operations

Due to the nature of the Partnership’s trading, the results of operations for the interim period presented should not be considered indicative of the results that may be expected for the entire year.

Periods Ended June 30, 2008:

	30-Jun-08	31-Mar -08
Ending Equity	$120,905,168	$89,361,244

Three months ended June 30, 2008:

Net assets increased $31,543,924 for the three months ended June 30, 2008. This increase was attributable to subscriptions in the amount of $33,573,732, redemptions in the amount of $5,802,819 and a net gain from operations of $3,773,011.

Management Fees of $820,725, Incentive Fees of $943,253 and brokerage commissions of $228,214 were paid or accrued, and interest of $574,809 was earned or accrued on the Partnership’s cash and cash equivalent investments, for the three months ended June 30, 2008.

The Partnership’s other expenses paid or accrued for the three months ended June 30, 2008 were $90,382.

Six months ended June 30, 2008:

Net assets increased $61,349,778 for the six months ended June 30, 2008. This amount represents subscriptions in the amount of $56,130,636, redemptions in the amount of $7,651,461 and a net gain from operations of $12,870,603.

Management Fees of $1,416,838, Incentive Fees of $3,211,277 and brokerage commissions of $624,814 were paid or accrued, and interest of $1,088,781 was earned or accrued on the Partnership’s cash and cash equivalent investments, for the six months ended June 30, 2008.

The Partnership’s other expenses paid or accrued for the six months ended June 30, 2008 were $124,695.

Three months ended June 30, 2008:

Trading in oil and gas markets proved particularly profitable over the period, where long positions in crude oil and natural gas drove gains. Crude oil surged to new highs during the period and natural gas prices rose sharply amid increased demand from the power sector.

Long crude oil positions registered strong gains as West Texas Intermediate (“WTI”) rose 11.7% in April. A record high of US $119.70 per barrel was reached on April 25, as a weakening US dollar, unexpected falls in US inventories and production difficulties drove prices higher. Long positions in products derived from crude oil, such as RBOB gasoline, heating oil and gas oil, also made gains as prices rose sharply. WTI sustained its rise in May. A new closing high above US $132 per barrel was reached amid worries that demand would outstrip supply within the next few years and on the back of robust demand from China ahead of the Olympics. Meanwhile, OPEC continued to insist that there was no shortage of supply in the market and that elevated prices were a consequence of US dollar weakness and investor speculation. WTI hit fresh highs again in June as geopolitical tensions and concerns about disruptions to output in Nigeria intensified, overshadowing Saudi Arabia's pledge to provide more crude supplies.

Increasing inflationary pressures and changing interest rate expectations proved beneficial for bond and interest rate trading during the period as short positions in Eurobonds and Euribor contributed to performance. Prices fell in June on heightened speculation that the European Central Bank would lift interest rates after eurozone inflation continued to rise. Profits were slightly offset, however, by long

positions in Asian equities and various equity indices as markets came under pressure on fears over stagflation and falling confidence in the financial and housing sectors.

The period highlighted the increasingly difficult task facing the world's central banks. The need to balance the risks to growth and the risks of accelerating inflation saw a continued divergence in monetary policy over the month. In April, the Bank of England and Federal Reserve took action to protect growth, both lowering interest rates by 0.25%, while the European Central Bank focused on controlling inflation and left base rates unchanged at 4%. Both the Bank of England and European Central Bank left interest rates unchanged over the months of May and June.

In currency markets, the US dollar regained some ground early in the period as investors speculated that the latest decrease in US interest rates may mark the end of the current loosening cycle. The general improvement in sentiment witnessed during April gave strength to the US dollar, which rallied against the euro and Japanese yen towards the end of April, negatively affecting our currency positions. May and June witnessed US dollar weakness and investor speculation. In May, the Australian dollar hit a 24-year high against the US dollar on the back of surging commodity prices and disappointing US consumer confidence figures, which resulted in gains from long Australian dollar positions.

Equity markets began to recover in April from the heavy declines they registered in the first quarter with the S&P 500, FTSE 100 and Nikkei 225 ending up over 4%, 6% and 10%, respectively. Global equity markets continued to trend higher in May as encouraging economic data releases in the US bolstered investor sentiment and dampened talks of a recession. Global equities suffered a sharp sell-off in June, however, with the financial sector driving losses, after persistent speculation that further sub-prime related writedowns were imminent. The FTSE 100 and S&P 500 lost around 7% and 9%, respectively, while the MSCI Asia Pacific fell 8.8%. The slide in equities and gains in commodities increased gold's appeal, the precious metal rose 4.3% over the month June.

Three months ended March 31, 2008:

Equity markets suffered heavy losses during the quarter as concerns over the health of the financial system intensified and the outlook for the US economy deteriorated. January saw the largest declines with a number of European and Asian indices registering double-digit monthly losses. Conditions improved in February and March but equities continued to trend lower and markets remained highly volatile. The sharp sell-off in equity markets came despite the Federal Reserve slashing its target funds rate from 4.25% to 2.25% and central banks throughout the world injecting additional funds into money markets to increase liquidity. The Federal Reserve’s decision to cut rates aggressively put further downward pressure on the dollar. The US currency slumped to lifetime lows against the euro and Swiss franc and sank to a multi-year low against the Japanese yen. The weakness of the US dollar sent commodity prices sharply higher. Oil rose to a series of lifetime highs, spending most of the second half of the quarter above US $100 per barrel, while gold, base metal and agricultural prices also climbed to record highs.

Trading within agricultural markets made gains across the majority of contracts, with corn trading providing the largest contribution. Soy-based products rose to record highs during February on speculation that increased Chinese demand would cut into US inventories, although March saw a retraction in prices, paring earlier gains from long positions. Prices in soybean oil declined as Chinese importers surprisingly cancelled an order and US farmers stated that a greater proportion of land would be allocated to soy products in the near-term.

Bond trading accrued profits as Japanese bonds and US Treasuries led the way. Disappointing US economic data saw investors switching out of riskier asset classes and into government paper; sending the 2-year US Treasury yield from 3.05% on December 31, 2007 to 1.34% by mid-March. Long positions in Japanese bonds also proved beneficial on increased speculation that the Bank of Japan would cut interest

rates to boost economic growth. However, gains were slightly offset by short positions in Australian bonds as investors became concerned over the impact of the credit crunch on economic growth.

Currency trading contributed excellently during the period. The quarter saw the US dollar continue to weaken against most major currencies due to ongoing concerns regarding the credit crisis and the US housing market. As a result, long positions in various currencies, in particular the Swiss franc, against the US dollar proved highly beneficial. March witnessed the euro hitting a record high of US $1.5846, as the European Central Bank (“ECB”) showed no indication of cutting interest rates in the near future.

Energy delivered a solid profit for the quarter as a weakening US dollar and increased demand supported price rises. Long positions in crude oil were beneficial despite the commodity sliding below US $90 at the beginning of the period. However, concerns that OPEC may cut production levels and a disruption to oil production in Nigeria sent prices higher, closing at a record high of US $110.33 per barrel on March 13. Distillate products such as gas oil and heating oil followed the upward trend of crude, accruing strong profits via our long positions.

Precious metals trading made a solid profit as long positions in gold, silver and platinum made gains. Gold rocketed upwards during the start of the period, eventually climbing above the US $1000 mark in mid-March. Elevated global inflation, a deteriorating US economy and a weak US dollar all supported the rise in gold, silver and platinum. In the base metals component, positive trading in copper offset losses from aluminum.

Trading in short-term interest rates posted a firm gain over the first quarter despite market volatility. Long positions in Eurodollar and Euribor contracts posted the largest part of gains as investors bet on rate reductions in the US and Europe as turmoil swept through global markets. However, these earlier gains were reduced as hawkish rhetoric from the ECB indicated that interest rates for the eurozone would remain stable in the near-term.

Stock market trading posted a gain over the quarter, with short positions in the Nikkei, TOPIX and S&P 500 proving particularly fruitful. Serious concerns over the US economy prompted a large scale investor switch out of equities, with rapidly falling Asian markets reversing some of the gains accrued in 2007. Short exposure to European markets such as the Euro Stoxx, CAC40 and Dax also contributed to gains. However, some profits were reversed as the Federal Reserve intervened to calm markets with a 75bps federal funds rate cut, sending indices higher at the end of March.

Periods Ended June 30, 2007:

	30-Jun -07	31-Mar -07
Ending Equity	$44,438,918	$34,357,473

Three months ended June 30, 2007:

Net assets increased $10,081,445 for the three months ended June 30, 2007. This increase was attributable to subscriptions in the amount of $6,212,355, redemptions in the amount of $1,474,524 and a net gain from operations of $5,343,614.

Management Fees of $318,604, Incentive Fees of $621,690 and brokerage commissions of $348,497 were paid or accrued, and interest of $411,658 was earned or accrued on the Partnership’s cash and cash equivalent investments, for the three months ended June 30, 2008.

The Partnership’s other expenses paid or accrued for the three months ended June 30, 2008 were $17,211.

Six months ended June 30, 2007:

Net assets increased $14,965,553 for the six months ended June 30, 2007. This amount represents subscriptions in the amount of $14,338,661, redemptions in the amount of $2,490,159 and a net gain from operations of $3,117,051.

Management Fees of $573,364, Incentive Fees of $741,945 and brokerage commissions of $653,967 were paid or accrued, and interest of $751,321 was earned or accrued on the Partnership’s cash and cash equivalent investments, for the six months ended June 30, 2007.

The Partnership’s other expenses paid or accrued for the three months ended June 30, 2007 were $31,225.

Three months ended June 30, 2007:

Significant profits from trading in bond, interest rates, stocks and currencies markets drove gains over the period, while positions in metal, energy and agricultural sectors posted losses.

Currency trading proved to be the major force behind April's profits, as currency markets saw the British pound rise above the US $2 mark for the first time in fifteen years after a sharp rise In UK Inflation. The euro also broke records, reaching its highest ever level against the US dollar on mounting concerns over the US economy and data indicated that German business confidence remained elevated in April. The European single currency also hit another all-time high against the Japanese yen. Support weakened for the Asian currency as the Bank of Japan slashed its inflation forecast to almost zero and kept interest rates unchanged at 0.5%. Currency trading also made strong gains in June. Profits were led by short positions in the Japanese yen against the US dollar as the yen fuelled carry trade continued to reap rewards. The Bank of Japan kept interest rates at 0.5%, and despite assurances that increases will still be made, contrary to the current deflationary period, analysts do not see a tightening of yields between Japan and the US in the short-term. The Australian dollar appreciated against the US dollar as unexpectedly good employment data caused investors to price in a further interest rate rise from the current level of 6.25%. Unemployment fell from 4.4% in April to May's 4.2% figure, increasing expectations of interest rate rises and demand for the nation's high-yielding assets. In June, the Japanese yen fell to multi-year lows against the US dollar, British pound and other high-yielding currencies.

Bond trading produced a significant return during the period, driven by short positions in US treasuries and Euro bonds. Renewed optimism for the US economy drove US treasuries lower in May after strong manufacturing and payroll data prompted speculation that interest rates would be left on hold for the rest of the year. Euro bonds also fell in May as German consumer confidence rose boosted by positive corporate sentiment. Further positive contributions came from trades in UK Gilts and Euro BOBL.

Government bond markets endured a turbulent beginning to June as yields rose sharply. The 10-year US Treasury yield surged above 5.2% as a raft of strong economic data dashed hopes of an early interest rate cut in the US. In Europe, the European Central Bank raised rates to a six-year high of 4%, while expectations mounted that rates would continue to rise in the UK. Gains in June were attributable to short positions in US treasuries and Australian bonds.

Within interest rate markets, positions in Euribor, Eurodollar and short Sterling accounted for the majority of profits during the period. Short Euribor posted the greatest gains as prices slid in May as strong eurozone data on manufacturing, employment, business and investor confidence and M3 money supply prompted the European Central Bank to pave the way for future interest rate increases, Short Eurodollar posted strong gains as markets reassessed their outlook for US rates. A combination of robust data from the housing market and inflationary pressures remaining above the Fed's preferred range caused investors to scale back their expectations of an interest rate cut. Short Sterling positions proved well placed as the Bank of England raised rates to 5.5% and few were willing to rule out future near term increases.

Central bank activity during the period saw the Bank of England raise interest rates by 0.25% to 5.5%, their highest level since 2001. While in Europe and the US, upbeat data releases led to speculation that the

European Central Bank would raise rates and that the US Federal Reserve would hold rates steady for the duration of the year.

Solid gains were accrued from the stock index sector as equity markets rose strongly over the first half of April. Long positions in major European bourses such as the DAX 30, Euro Stoxx and CAG 40 proved profitable as M&A activity drove indices upwards. On the downside, Japanese indices slightly offset gains through long positions in the Topix and Nikkei 225. Concerns over the US economy affected both as Japanese exporters with a strong US client base suffered heavily, in particular, the technology and automobiles sectors. After China's economy expanded at a faster-than-expected rate in the first quarter of 2007, the period saw expectations that the government may raise interest rates to prevent overheating. This caused China's stocks to fall before recovering to end up in April. Global equity markets generally rose in April and May. In April, the S&P 500 hit a new six-year high and the Dow Jones broke through 13000 for the first time. The S&P 500 and the Dow Jones reached new highs again in May. The Chinese Shanghai composite index broke through the 4000 barrier for the first time in its history in May before falling back due to stamp duty increases.

Three months ended March 31, 2007:

At the start of the year, equity markets trended upward, particularly in the US, with the Dow Jones hitting a series of fresh highs as optimism grew over the Fed’s ability to engineer a soft landing. Towards the end of February, a sharp fall in Chinese equities triggered a dramatic sell-off in world equity markets as concerns mounted over the unwinding of the yen carry trade and the health of the US economy. World stocks suffered a tumultuous period in March as concerns over the US sub-prime mortgage sector weighed on investor sentiment and hopes faded of a near-term cut in US interest rates. In currency markets, the US dollar fell to a two-year low against the euro in March as the US economic outlook deteriorated. In January, the Bank of Japan unexpectedly left interest rates on hold at 0.25%, causing the yen to slide to a four-year low against the US dollar. However, at the end of February and in early March, increased risk aversion prompted investors to unwind carry trades, resulting in the Japanese currency surging against high-yielding currencies. The Japanese yen appreciated against the US dollar over the quarter. Crude oil prices ended higher over the first quarter. The West Texas Intermediate fell briefly below US $50 in January. However, oil prices rebounded after President George W. Bush announced in his State of Union address that the US government would double the country’s Strategic Petroleum Reserves. Oil prices rallied further to a six-month high in late March as concerns grew over the diplomatic stand-off between Britain and Iran.

Performance from the agriculturals sector was positive over the period. The largest contribution came from long soybean positions in February, after prices reached US $7.91 a bushel, the highest since 2004 and up 7.5% over the month. Long positions in corn, however, proved particularly disadvantageous after prices retreated in March as increased risk aversion prompted investors to reduce exposure.

The bond sector posted a loss in the first quarter, despite a solid performance witnessed in January. Trading in UK Gilts made the greatest contribution to profits over the period, with gains in January as short positions benefited from the Bank of England’s shock interest rate hike. However, losses were suffered from short positions in US Treasuries as concerns over a global slowdown mounted in February and investors sold stocks for the safe haven of government bonds. Similarly, short positions in UK Euro bund contracts were affected by this concern.

The currency sector struggled to make headway in the first quarter. Long positions in the Australian dollar against the US dollar profited as risk appetite returned in March. Traders bought into the high-yielding Australian currency as part of their carry trade positions. However, losses incurred from the long positions in the British pound against the US dollar undermined overall returns.

The energy sector sustained a modest loss during the first quarter. Natural gas was the largest detractor from performance while RBOB gasoline and crude oil contributed positive results. At the start of the

quarter, short positions in natural gas proved detrimental after a sharp increase in demand for heating and weather concerns spurred natural gas prices higher.

The metals complex posted a slight gain over the period. Long positions in nickel, gold and lead contributed gains, while zinc, aluminum and silver trades held back performance. Nickel prices rose over the majority of the period, reaching a record high in mid March against a backdrop of both robust levels of demand and low inventories. However, exposure to zinc detracted from performance, particularly in January, after prices fell on rising inventory levels and news that Dow Jones will reduce the metals weighting in its Commodity Index.

Trading within short-term interest rate markets detracted slightly from the overall performance of the program. The greatest contribution to profits came from well placed short sterling contracts in January as the Bank of England raised interest rates. However, interest rate trading proved less successful in February and March after short positions in Eurodollar and Euribor contracts suffered. In the US, after maintaining interest rates at 5.25%, Ben Bernanke, the chairman of the Federal Reserve, stated that there are some indications inflation pressures are beginning to diminish, while housing data caused concern among investors and sent Eurodollar prices up.

Trading within the stock sector incurred losses. A sharp sell-off in equities at the end of February resulted in losses across most global equity indices, with positions in S&P 500, NASDAQ and Hang Seng adversely affected. The main detractors over the quarter included long positions in Nikkei 225 and TOPIX indices, the former dropping -3.3% in a single day in March, as concerns over the unwinding of the yen carry trade prompted heavy selling in equities. Long positions in the Australian SPI200 Index and South African All Index, however, gained solid profits.

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

ITEM 4. Controls and Procedures

The General Partner, with the participation of the General Partner's principal executive officer and principal 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 fiscal quarter for which this Quarterly Report on Form 10-Q is being filed.

During the quarter ended June 30, 2008, a material weakness related to the design of the controls surrounding price verification for investments was detected. As a result, our accounting conclusions related to the fair value of investments could have been materially affected. Management has begun remediation efforts to address this material weakness.

As a result of the material weakness described above, the General Partner, with the participation of the principal executive officer and principal financial officer, has concluded that the disclosure controls and procedures in place as of June 30, 2008 were ineffective.

Other than as described above, there were no significant changes in the General Partner’s internal controls with respect to the Partnership or in other factors applicable to the Partnership that could significantly affect these controls subsequent to the date of their evaluation.

ITEM 4T. Controls and Procedures

Not applicable.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 1A. Risk Factors

Not applicable.

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

(a) Pursuant to the Partnership’s Limited Partnership Agreement, the Partnership may sell Units of Limited Partnership Interests (“Units”) as of the last business day of any calendar month or at such other times as the General Partner may determine. On April 30, 2008, May 31, 2008 and June 30, 2008, the Partnership sold Units, exclusive of non-cash transfers, to existing and new Limited Partners in the amount of $6,589,805, $15,183,930 and $25,839,672, respectively. There were no underwriting discounts or commissions in connection with the sales of the Units described above.

(b) Not applicable.

(c) Pursuant to the Partnership’s Limited Partnership Agreement, a Limited Partner may redeem some or all of its Units as of the last business day of each calendar month at the then current month-end Net Asset Value. 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 amount of Units redeemed, exclusive of non-cash transfers, during the three months ended June 30, 2008:

Date of Redemption:		Amount Redeemed:
April 30, 2008		$2,159,322
May 31, 2008		$268,491
June 30, 2008		$1,814,631
TOTAL		$4,242,444

Item 3. Defaults upon Senior Securities.

None.

Item 4. Submissions of Matters to a Vote of Security Holders.

None

Item 5. Other Information.

None

Item 6. Exhibits.

The following exhibits are included herewith:

Designation Description

31.1	Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer

31.2	Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer

32.1	Section 1350 Certification of Principal Executive Officer

32.2	Section 1350 Certification of Principal Financial Officer

The following exhibits are incorporated by reference herein from the exhibits of the same description and number filed on January 28, 2008 with the Partnership's Registration Statement on Form 10 (Reg. No. 000-53043).

3.1	Certificate of Limited Partnership of Man-AHL Diversified I L.P.

4.1	Third Amended Limited Partnership Agreement of Man-AHL Diversified I L.P.

10.1	Form of Customer Agreement between E D & F Man International Inc. and Man-AHL Diversified Trading Company L.P.

10.2	Form of Trading Advisor Agreement between Man-AHL Diversified I L.P., Man Investments (USA) Corp. and Man-AHL (USA) Limited.

10.3	Form of Selling Agreement between Man Investments (USA) Corp. and Man Investments Inc.

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 on August 14, 2008.

	Man-AHL Diversified I L.P. (Registrant)

	By: Man Investments (USA) Corp. General Partner

	By: /s/ Uwe Eberle

		President and Chief Executive Officer
		(Principal Executive Officer)

	By: /s/ Rhowena Blank

		Vice President and Head of Accounting and Operations
		(Principal Financial and Chief Accounting Officer)

EXHIBIT INDEX

Exhibit Number Description of Document

31.1	Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer

31.2	Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer

32.1	Section 1350 Certification of Principal Executive Officer

32.2	Section 1350 Certification of Principal Financial Officer

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