MAN AHL DIVERSIFIED I LP - Quarter Report: 2010 March (Form 10-Q)

efc10-369_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 March 31, 2010

[ ]	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 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 [ ] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

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.

STATEMENTS OF FINANCIAL CONDITION (a)

STATEMENTS OF OPERATIONS (b)

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (b)

STATEMENTS OF CASH FLOWS (b)

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)

(a)	At March 31, 2010 (unaudited) and December 31, 2009

(b)	For the three months ended March 31, 2010 and 2009 (unaudited)

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

STATEMENTS OF FINANCIAL CONDITION

	March 31, 2010 (unaudited)		December 31, 2009
ASSETS

CASH AND CASH EQUIVALENTS	$	4,934,541	$	8,321,635

INVESTMENT IN MAN-AHL DIVERSIFIED
TRADING COMPANY L.P.		397,316,656		334,568,212

DUE FROM MAN-AHL DIVERSIFIED
TRADING COMPANY L.P.		11,553,505		9,251,843

OTHER ASSETS		295		295

TOTAL	$	413,804,997	$	352,141,985


LIABILITIES AND PARTNERS’ CAPITAL

LIABILITIES:
Redemptions payable	$	9,922,108	$	7,829,165
Subscriptions received in advance		4,934,541		8,381,824
Management fees payable		966,715		842,617
Servicing fees payable		497,118		425,445
Accrued expenses		167,564		154,618

Total liabilities		16,488,046		17,633,669

PARTNERS’ CAPITAL:
General Partner - Class A (186 unit equivalents outstanding
at March 31, 2010 and December 31, 2009, respectively)		586,368		569,005
Limited Partners - Class A (84,647.11 and 82,984.62 units outstanding
at March 31, 2010 and December 31, 2009, respectively)		266,315,025		253,353,412
Limited Partners - Class A Series 2 (16,876.95 and 4,857.29 units outstanding
at March 31, 2010 and December 31, 2009, respectively)		53,768,893		14,969,780
Limited Partners - Class B (20,882.87 and 20,210.95 units outstanding
at March 31, 2010 and December 31, 2009, respectively)		65,701,752		61,704,853
Limited Partners - Class B Series 2 (3,435.37 and 1,269.10 units outstanding
at March 31, 2010 and December 31, 2009, respectively)		10,944,913		3,911,266

Total partners’ capital		397,316,951		334,508,316

TOTAL	$	413,804,997	$	352,141,985

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

STATEMENTS OF FINANCIAL CONDITION (CONTINUED)


NET ASSET VALUE PER OUTSTANDING UNIT OF
PARTNERSHIP INTEREST - CLASS A	$	3,146.19	$	3,053.03

NET ASSET VALUE PER OUTSTANDING UNIT OF
PARTNERSHIP INTEREST - CLASS A Series 2	$	3,185.94	$	3,081.92

NET ASSET VALUE PER OUTSTANDING UNIT OF
PARTNERSHIP INTEREST - CLASS B	$	3,146.20	$	3,053.04

NET ASSET VALUE PER OUTSTANDING UNIT OF
PARTNERSHIP INTEREST - CLASS B Series 2	$	3,185.95	$	3,081.93

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
	months ended			months ended
	March 31, 2010			March 31, 2009

NET INVESTMENT INCOME
ALLOCATED FROM MAN-AHL
DIVERSIFIED TRADING COMPANY L.P. -
Interest income	$	128,831		$	131,827

PARTNERSHIP EXPENSES:
Brokerage commissions		372,101			127,165
Management fees		2,802,154			1,738,015
Servicing Fees		1,442,395			869,007
Other expenses		95,279			170,954

Total expenses		4,711,929			2,905,141

Net investment loss		(4,583,098	)		(2,773,314	)

REALIZED AND UNREALIZED GAINS
(LOSSES) ON TRADING ACTIVITIES
ALLOCATED FROM MAN-AHL
DIVERSIFIED TRADING COMPANY L.P.:
Net realized trading gains (losses)
on closed contracts		2,014,883			(5,417,626	)
Net change in unrealized trading gains (losses)
on open contracts		14,913,284			(10,237,272	)

Net gains (losses) on trading activities allocated
from Man-AHL Diversified
Trading Company L.P.		16,928,167			(15,654,898	)

NET INCOME (LOSS)	$	12,345,069		$	(18,428,212	)


NET INCOME (LOSS) PER UNIT OF
PARTNERSHIP INTEREST - CLASS A	$	93.16		$	(272.58	)

NET INCOME PER UNIT OF
PARTNERSHIP INTEREST - CLASS A Series 2	$	104.02		$	-

NET INCOME (LOSS) PER UNIT OF
PARTNERSHIP INTEREST - CLASS B	$	93.16		$	(272.58	)

NET INCOME PER UNIT OF
PARTNERSHIP INTEREST - CLASS B Series 2	$	104.02		$	-

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 THREE MONTHS ENDED MARCH 31, 2010 AND 2009


	CLASS A											CLASS A Series 2						CLASS B						CLASS B Series 2						TOTAL

	Limited						General					Limited						Limited						Limited
	Partners						Partner					Partners						Partners						Partners

	Amount			Units			Amount			Units		Amount			Units			Amount			Units			Amount			Units			Amount			Units
PARTNERS’ CAPITAL
January 1, 2010	$	253,353,412			82,985		$	569,005			186	$	14,969,780			4,857		$	61,704,853			20,211		$	3,911,266			1,269		$	334,508,316			109,508

Subscriptions		20,369,869			6,765			-			-		43,413,001			14,091			5,586,774			1,847			8,234,706			2,675			77,604,350			25,378
Redemptions		(15,677,415	)		(5,103	)		-			-		(6,336,551	)		(2,072	)		(3,595,771	)		(1,175	)		(1,531,047	)		(508	)		(27,140,784	)		(8,858	)
Net Income		8,269,159			-			17,363			-		1,722,663			-			2,005,896			-			329,988			-			12,345,069			-

PARTNERS’ CAPITAL
March 31, 2010	$	266,315,025			84,647		$	586,368			186	$	53,768,893			16,876		$	65,701,752			20,883		$	10,944,913			3,436		$	397,316,951			126,028

PARTNERS’ CAPITAL
January 1, 2009	$	190,432,028			51,957		$	683,098			186	$	-			-		$	28,126,634			7,674		$	-			-		$	219,241,760			59,817

Subscriptions		37,110,315			10,311			-			-		-			-			8,001,470			2,214			-			-			45,111,785			12,525
Redemptions		(11,178,956	)		(3,179	)		-			-		-			-			(2,423,769	)		(685	)		-			-			(13,602,725	)		(3,864	)
Net Loss		(15,898,231	)		-			(50,801	)		-		-			-			(2,479,180	)		-			-			-			(18,428,212	)		-

PARTNERS’ CAPITAL
March 31, 2009	$	200,465,156			59,089		$	632,297			186	$	-			-		$	31,225,155			9,203		$	-			-		$	232,322,608			68,478


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
	months ended			months ended
	March 31, 2010			March 31, 2009

CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income (loss)	$	12,345,069		$	(18,428,212	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Purchases of investment in Man-AHL Diversified Trading Company L.P.		(77,604,350	)		(45,111,785	)
Sales of investment in Man-AHL Diversified Trading Company L.P.		29,611,242			18,898,995
Net change in (appreciation) depreciation of investment in
Man-AHL Diversified Trading Company L.P.		(17,056,998	)		15,523,071
Changes in assets and liabilities:
Management fees payable		124,098			26,842
Incentive fees payable		-			(2,079,483	)
Servicing fees payable		71,673			13,421
Accrued expenses		12,946			(47,106	)

Net cash used in operating activities		(52,496,320	)		(31,204,257	)

CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from subscriptions		74,157,067			55,299,367
Payments on redemptions		(25,047,841	)		(13,907,528	)

Net cash provided by financing activities		49,109,226			41,391,839

NET INCREASE (DECREASE) IN CASH		(3,387,094	)		10,187,582

CASH AND CASH EQUIVALENTS
Beginning of Period		8,321,635			8,729,540

CASH AND CASH EQUIVALENTS
End of Period	$	4,934,541		$	18,917,122

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

Notes to Financial Statements (unaudited)

The accompanying unaudited financial 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 March 31, 2010 and the results of its operations for the three months ended March 31, 2010 and 2009. These financial statements present the results of interim periods and do not include all the disclosures normally provided in annual financial statements. It is suggested that these financial statements be read in conjunction with the audited financial statements and notes included in the Partnership’s annual report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2009. The December 31, 2009 information has been derived from the audited financial statements as of December 31, 2009.

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) Limited (the “Advisor”), a United Kingdom company, is the Partnership’s trading advisor. Man Investments (USA) Corp. (the “General Partner”), a Delaware corporation and a registered commodity pool operator under the Commodity Exchange Act, as amended, is the Partnership’s commodity pool operator and general partner. 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 of the General Partner.

The Partnership’s units 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 on Form 10 with the Securities and Exchange Commission to register the Partnership’s units of limited partnership interests as required by Section 12(g) of the Securities Exchange Act of 1934, as amended.

Effective July 1, 2008, the Partnership issued a new class of units of limited partnership interests, Class B. Class B was created solely for retirement plan investors. The fee structure is identical to Class A.

On April 1, 2009, the Partnership added two new series of units: Class A Series 2 (“Class A-2”) and Class B Series 2 units (“Class B-2”). Except as described in Footnote 2 below, Class A-2 and Class B-2 units are identical to Class A and B units, respectfully.

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.

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.

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.

In September 2009, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update No. 2009-12, Investments in Certain Entities that Calculate Net Asset value per share (or its equivalent), an amendment of Fair Value Measurements and Disclosure (Topic 820), or ASU 2009-12. This amendment provides additional guidance on using the net asset value per share, provided by an investee, when estimating the fair value of an alternative investment that does not have a readily determinable fair value and enhances the disclosures concerning these investments. Examples of alternative investments, within the scope of this amendment, include investments in hedge funds, private equity funds, real estate funds, and venture capital partnerships. This amendment is effective for interim and annual periods ending after December 15, 2009.

At March 31, 2010 and December 31, 2009, the Partnership owned 41,592 and 36,545 units, respectively, of the Trading Company. The Partnership’s aggregate ownership percentage of the Trading Company at March 31, 2010 and December 31 2009 was 71.83% and 68.10%, respectively.

The Partnership is able to redeem its investment from the Trading Company on a monthly basis. As of March 31, 2010, the Partnership could redeem its investment without restriction at the month-end net asset value of the Trading Company that had been determined in accordance with Accounting Standards Codification (“ASC”) 946, “Financial Services – Investment Companies”. As a result, in accordance with ASU 2009-12, the Partnership transferred its investment in the Trading Company, from a Level 3 to a Level 2 fair value measurement at year-end on a prospective basis. The categorization of investments held by the Trading Company has been disclosed in the attached financial statements.

Expenses — The Advisor earns a monthly management fee in an amount equal to 0.1667% (2% annually) of the Partnership’s month-end Net Asset Value, as defined in the Limited Partnership Agreement (the “Agreement”). In addition, 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 of Class A and Class B units. The general partner fee is included in management fees in the statements of operations.

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 Partnership pays a monthly servicing fee to MII, as described in the supplement to the Agreement dated July 15, 2008, in an amount equal to 0.1250% (1.5% annually) of the month-end Net Asset Value of Class A and Class B units. The Partnership also pays a monthly servicing fee to MII, as described in the supplement to the Agreement, dated January 2, 2009, in an amount equal to 0.1042% (1.25% annually) of the month-end Net Asset Value of Class A-2 and Class B-2 units. For all classes of units, MII serves as the placement agent for the Partnership.

Derivative Contracts — The Partnership’s operating activities involve trading, indirectly through its investment in the Trading Company, in derivative contracts 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”) and Credit Suisse to clear its futures trading activity. The Trading Company utilizes Royal Bank of Scotland (“RBS”) and JPMorgan Chase to clear its forward trading activity.

3.	RECENT ACCOUNTING PRONOUNCEMENTS

Effective January 1, 2010, the Partnership has adopted the provisions of the FASB issued ASU No. 2010-06, Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements ("ASU 2010-06") to add new requirements for disclosures about transfers into and out of Level 1 and Level 2 and separate disclosures about purchases, sales, issuances, and settlements relating to Level 3 measurements. It also clarifies existing fair value disclosures about the level of disaggregation and about inputs and valuation techniques used to measure fair value. ASU 2010-06 is effective for the first reporting period (including interim periods) beginning after December 15, 2009, except for the requirement to provide the Level 3 activity of purchases, sales, issuances, and settlements on a gross basis, which will be effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The adoption of ASU 2010-06 only affected financial statement disclosures and had no impact on the financial position, results of operations, or cash flows of the Partnership.

4.	SUBSEQUENT EVENTS

The General Partner has evaluated the impact of subsequent events on the Partnership through the date of financial statement issuance, and noted no subsequent events that require adjustment to or disclosure in these financial statements.

Financial Statements

Man-AHL Diversified Trading Company L.P.

STATEMENTS OF FINANCIAL CONDITION (a)

CONDENSED SCHEDULES OF INVESTMENTS (a)

STATEMENTS OF OPERATIONS (b)

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (b)

STATEMENTS OF CASH FLOWS (b)

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)

(a) At March 31, 2010 (unaudited) and December 31, 2009

(b) For the three months ended March 31, 2010 and 2009 (unaudited)

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

STATEMENTS OF FINANCIAL CONDITION

	March 31, 2010 (unaudited)		December 31, 2009
ASSETS

Equity in commodity futures and forwards
trading accounts:
Net unrealized trading gains on open futures contracts	$	20,235,535	$	7,542,562
Net unrealized trading gains on open forward contracts		254,994		247,019
Due from brokers		89,079,835		80,534,233
		109,570,364		88,323,814

Cash and cash equivalents		456,793,931		497,103,543

Interest receivable		1,903		16,750

TOTAL	$	566,366,198	$	585,444,107


LIABILITIES AND PARTNERS’ CAPITAL

LIABILITIES —
Redemptions payable	$	13,174,243	$	85,988,365
Interest payable		4,683		-
Net unrealized trading losses on open forward contracts		87,751		8,180,762

Total liabilities	$	13,266,677	$	94,169,127

PARTNERS’ CAPITAL:
Limited Partners (57,900.69 and 53,661.82 units outstanding at
March 31, 2010 and December 31, 2009, respectively)		553,099,521		491,274,980

Total partners’ capital		553,099,521		491,274,980

TOTAL	$	566,366,198	$	585,444,107

NET ASSET VALUE PER OUTSTANDING UNIT OF
PARTNERSHIP INTEREST	$	9,552.55	$	9,155.02


See notes to financial statements.

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

CONDENSED SCHEDULES OF INVESTMENTS

	March 31, 2010 (unaudited)						December 31, 2009
	Fair Value			Percent of Partners' Capital			Fair Value			Percent of Partners' Capital
FUTURES CONTRACTS - Long:
Agricultural	$	145,665			0.0	%	$	518,842			0.1	%
Currencies		684,877			0.1			133,337			-
Energy		1,984,440			0.4			1,422,218			0.29
Indices		4,607,296			0.8			5,899,617			1.20
Interest rates		5,973,654			1.1			(2,356,137	)		(0.48	)
Metals		3,115,658			0.6			1,509,514			0.31
Total futures contracts - long		16,511,590			3.0			7,127,391			1.40

FUTURES CONTRACTS - Short:
Agricultural		1,666,422			0.3			(363,107	)		(0.1	)
Currencies		275,823			0.0			207,712			-
Energy		1,555,601			0.3			6,674			-
Indices		198,443			0.0			(60,534	)		-
Interest rates		288,723			0.1			810,858			0.2
Metals		(261,067	)		(0.0	)		(186,432	)		-
Total futures contracts - short		3,723,945			0.7			415,171			0.1

NET UNREALIZED TRADING GAINS
ON OPEN FUTURES CONTRACTS	$	20,235,535			3.7	%	$	7,542,562			1.5	%

FORWARD CONTRACTS - Long:
Australian dollars	$	1,567,685			0.3	%	$	(2,205,340	)		(0.4	) %
British pounds		835,305			0.2			(63,197	)		-
Euro		(1,886,202	)		(0.3	)		768,737			0.2
Japanese yen		(4,522	)		(0.0	)		(51,963	)		-
U.S. dollars		(1,484,555	)		(0.3	)		957,592			0.2
Gold bullion		(283,333	)		(0.1	)		(1,352,669	)		(0.3	)
Other		168,380			0.0			(306,665	)		(0.1	)
Total forward contracts - long		(1,087,242	)		(0.2	)		(2,253,505	)		(0.4	)

FORWARD CONTRACTS - Short:
Australian dollars		(342,032	)		(0.1	)		566,214			0.1
British pounds		(1,528,985	)		(0.3	)		(734,855	)		(0.1	)
Euro		1,557,898			0.3			(283,926	)		(0.1	)
Japanese yen		217,467			0.0			186,231			-
New Zealand dollars		(719,709	)		(0.1	)		(116,860	)		-
U.S. dollars		2,209,087			0.4			(5,266,747	)		(1.1	)
Other		(139,241	)		(0.0	)		(30,295	)		-
Total forward contracts - short		1,254,485			0.2			(5,680,238	)		(1.2	)

NET UNREALIZED TRADING GAINS (LOSSES)
ON OPEN FORWARD CONTRACTS	$	167,243			(0.0	) %	$	(7,933,743	)		(1.6	) %

NET UNREALIZED TRADING GAINS (LOSSES)
ON OPEN CONTRACTS	$	20,402,778			3.7	%	$	(391,181	)		(0.01	) %

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
	months ended		months ended
	March 31, 2010		March 31, 2009

NET INVESTMENT INCOME:
Interest income	$	179,576	$	292,480

NET REALIZED AND UNREALIZED
GAINS (LOSSES) ON TRADING
ACTIVITIES:
Net realized trading gains (losses) on
closed contracts		2,587,977		(11,418,591	)
Net change in unrealized trading gains
(losses) on open contracts		20,793,959		(22,620,273	)

NET GAIN (LOSS) ON TRADING
ACTIVITIES		23,381,936		(34,038,864	)

NET INCOME (LOSS)	$	23,561,512	$	(33,746,384	)


NET INCOME (LOSS) FOR A UNIT
OF PARTNERSHIP INTEREST	$	397.53	$	(655.48	)

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 THREE MONTHS ENDED MARCH 31, 2010 AND 2009


	Limited			General
	Partners			Partner		Total

PARTNERS’ CAPITAL — January 1, 2010	$	491,274,980		$	-	$	491,274,980

Issuance of 8,738 units of limited
partnership interest		79,727,930			-		79,727,930
Redemption of 4,499 units of limited
partnership interest		(41,464,901	)		-		(41,464,901	)
Net Income		23,561,512			-		23,561,512

PARTNERS’ CAPITAL — March 31, 2010	$	553,099,521		$	-	$	553,099,521

PARTNERS’ CAPITAL — January 1, 2009	$	503,016,088		$	-	$	503,016,088

Issuance of 6,334 units of limited
partnership interest		65,463,059			-		65,463,059
Redemption of 4,295 units of limited
partnership interest		(43,256,592	)		-		(43,256,592	)
Net Loss		(33,746,384	)		-		(33,746,384	)

PARTNERS’ CAPITAL — March 31, 2009	$	491,476,171		$	-	$	491,476,171

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
	months ended			months ended
	March 31, 2010			March 31, 2009

CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income (loss)	$	23,561,512		$	(33,746,384	)
Adjustments to reconcile net income (loss)
to net cash used in operating activities:
Net change in unrealized trading (gains) losses on open contracts		(20,793,959	)		22,620,273
Changes in assets and liabilities:
Due from brokers		(8,545,602	)		(24,701,897	)
Interest receivable		14,847			78,011
Interest payable		4,683			-

Net cash used in
operating activities		(5,758,519	)		(35,749,997	)

CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from subscriptions		79,727,930			65,463,059
Payments on redemptions		(114,279,023	)		(48,813,507	)

Net cash provided by (used in)
financing activities		(34,551,093	)		16,649,552

NET DECREASE IN CASH
AND CASH EQUIVALENTS		(40,309,612	)		(19,100,445	)

CASH AND CASH EQUIVALENTS
Beginning of period		497,103,543			484,593,631

CASH AND CASH EQUIVALENTS
End of period	$	456,793,931		$	465,493,186


See notes to financial statements.

Notes to Financial Statements (unaudited)

The accompanying unaudited financial statements, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of Diversified Trading Company L.P.’s (a Delaware Limited Partnership) (the “Trading Company”) financial condition at March 31, 2010 and the results of its operations for the three months ended March 31, 2010 and 2009. These financial statements present the results of interim periods and do not include all the disclosures normally provided in annual financial statements. It is suggested that these financial statements be read in conjunction with the audited financial statements and notes included in Man-AHL Diversified I L.P.’s annual report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2009. The December 31, 2009 information has been derived from the audited financial statements as of December 31, 2009.

1.	ORGANIZATION OF THE TRADING COMPANY

Man-AHL Diversified Trading Company L.P. (a Delaware Limited Partnership) (the “Trading Company”) 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, serves as the Trading Company’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 Trading Company. 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 Trading Company 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 Diversified L.P. fully redeemed from the Trading Company as of December 31, 2009 and transferred a portion of the assets to Man-AHL Diversified I L.P. on January 1, 2010.

Man-AHL (USA) Limited (the “Advisor”), a limited liability company incorporated in the United Kingdom, acts as trading advisor to the Trading Company. 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. On April 21, 2008, the Trading Company engaged Man Investments Limited, a company organized under the Laws of the United Kingdom, to manage the foreign currency forward component of the AHL Diversified Program, at no additional cost to the Trading Company. The personnel of Man Investments Limited responsible for implementing the foreign currency forwards trading component of the AHL Diversified Program on behalf of the Trading Company are the same as those of the Advisor who implement the AHL Diversified Program.

2.	SIGNIFICANT ACCOUNTING POLICIES

The Trading Company 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.

Due From Brokers — Due from brokers consists of balances due from MF Global, Inc. (“MFG”), Credit Suisse, JPMorgan Chase and Royal Bank of Scotland (“RBS”). In general, the brokers pay the Trading Company interest monthly, based on agreed upon rates, on the Trading Company’s average daily balance.

MFG is registered with the CFTC as a futures commission merchant and is a member of the NFA.

Amounts due from brokers include cash held at brokers and cash posted as collateral. Included in due from broker on the statements of financial condition is $19,170,158 and $32,588,852 of cash restricted as collateral held as of March 31, 2010 and December 31, 2009, respectively.

Derivative Contracts — In the normal course of business, the Trading Company enters into derivative contracts (“derivatives”) for trading purposes. Derivatives traded by the Trading Company include futures contracts and forward contracts. The Trading Company records derivatives 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.

Realized and unrealized changes in fair values are included in realized and unrealized gains and losses on investments and foreign currency transactions in the statements of operations. All trading activities are accounted for on a trade-date basis.

3.	FAIR VALUE MEASUREMENTS

The Trading Company 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 Trading Company’s assumption about the assumptions market participants would use in pricing the investments. Future contracts are valued based on quoted prices from the exchange and are categorized as Level 1 investments in the fair value hierarchy. Forward contracts are valued at fair value using independent pricing services and are categorized as Level 2 investments in the fair value hierarchy. As of March 31, 2010 and December 31, 2009, the Trading Company did not have any positions in “Level 3”.

						Fair Value Measurments

				Quoted Prices in		Significant Other			Significant Other
	Fair Value			Active Markets for		Observable			Unobservable
	as of			Identical Assets		Inputs			Inputs
Description	March 31, 2010			(Level 1)		(Level 2)			(Level 3)

Net unrealized trading gains on open futures contracts	$	20,235,535		$	20,235,535	$	-		$	-

Net unrealized trading gains on open forward contracts		254,994			-		254,994			-

Net unrealized trading losses on open forward contracts		(87,751	)		-		(87,751	)		-

Total	$	20,402,778		$	20,235,535	$	167,243		$	-

Effective January 1, 2010, the Trading Company has adopted the provisions of the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update No. 2010-06, Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements ("ASU 2010-06") to add new requirements for disclosures about transfers into and out of Level 1 and Level 2 and separate disclosures about purchases, sales, issuances, and settlements relating to Level 3 measurements. It also clarifies existing fair value disclosures about the level of disaggregation and

about inputs and valuation techniques used to measure fair value. ASU 2010-06 is effective for the first reporting period (including interim periods) beginning after December 15, 2009, except for the requirement to provide the Level 3 activity of purchases, sales, issuances, and settlements on a gross basis, which will be effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The adoption of ASU 2010-06 only affected financial statement disclosures and had no impact on the financial position, results of operations, or cash flows of the Trading Company. There were no transfers between Level 1 and Level 2 investments.

4.	DERIVATIVE TRANSACTIONS

The investment objective of the Trading Company is achieved by participation in the AHL Diversified Program directed on behalf of the Trading Company 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 Trading Company is to deliver substantial capital growth for commensurate levels of volatility over the medium term, independent of the movement of the stock and bond markets, through the speculative trading, directly and indirectly, of physical commodities, futures contracts, spot and forward contracts, options on the foregoing, exchanges of futures for physical transactions and other investments on domestic and international exchanges and markets (including the interbank and OTC markets). The AHL Diversified Program trades globally in several market sectors, including, without limitation, currencies, bonds, energies, stocks indices, interest rates, metals and agriculture.

All the strategies and systems of the AHL Diversified Program are designed to target defined volatility levels rather than returns, and the investment process is underpinned by computer-supported analytical instruments and disciplined real-time risk and management information systems. A proprietary risk measurement method similar to the industry standard “value-at-risk” helps ensure that the rule-based decisions that drive the investment process remain within predefined risk parameters. Margin-to-equity ratios are monitored daily, and the level of exposure in each market is quantifiable at any time and is adjusted in accordance with market volatility. Market correlation is closely monitored to prevent over-concentration of risk and ensure optimal portfolio weightings. Market liquidity is examined with the objective of ensuring that the Trading Company will be able to initiate and close out trades as indicated by AHL Diversified Program’s systems at market prices, while brokerage selection and trade execution are continually monitored with the objective of ensuring quality market access.

During the quarter ended March 31, 2010, the Trading Company traded 76,014 exchange-traded future contracts and settled 41,786 OTC forward contracts. During the quarter ended March 31, 2009, the Trading Company traded 51,914 exchange-traded future contracts and settled 11,044 OTC forward contracts.

The Trading Company 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 non-performance associated with these instruments is the net unrealized trading gain, if any, included in the statements of financial condition. Forward contracts are entered into on an arm’s-length basis with RBS and JPMorgan Chase. As required by the Derivatives and Hedging Topic of the FASB Accounting Standards Codification, the Trading Company’s accounting policy is such that open contracts with the same counterparty are netted at the account level, in accordance with master netting arrangements in place with each party, as applicable. Netting is effective across products and cash collateral when so specified in the

applicable netting agreement. At March 31, 2010 and December 31, 2009, estimated credit risk with regard to forward contracts was $254,994 and $247,019, respectively.

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.

The following table presents the fair value of the Trading Company’s derivative instruments and statement of financial condition location.

Derivatives not designated as hedging instruments	Asset Derivatives			Liability Derivatives
	March 31, 2010 (unaudited)			March 31, 2010 (unaudited)
	Statement of Financial Condition	Fair Value **		Statement of Financial Condition	Fair Value**
Open forward contracts	Net unrealized trading gains on open forward contracts	$	12,309,985	Net unrealized trading losses on open forward contracts	$	(12,142,742	)
Open futures contracts	Net unrealized trading gains on open futures contracts		23,830,385	Net unrealized trading losses on open futures contracts		(3,594,850	)
Total Derivatives		$	36,140,370		$	(15,737,592	)

Derivatives not designated as hedging instruments	Asset Derivatives			Liability Derivatives
	December 31, 2009			December 31, 2009
	Statement of Financial Condition	Fair Value **		Statement of Financial Condition	Fair Value **
Open forward contracts	Net unrealized trading gains on open forward contracts	$	13,990,855	Net unrealized trading losses on open forward contracts	$	(21,924,598	)
Open futures contracts	Net unrealized trading gains on open futures contracts		13,469,655	Net unrealized trading losses on open futures contracts		(5,927,093	)
Total Derivatives		$	27,460,510		$	(27,851,691	)

** Open forward and future contracts are presented on the gross basis for the purposes of the tables above. Net unrealized trading gains and losses are netted by counterparty in the Statements of Financial Condition in accordance with generally accepted accounting principles related to the right of offset under FASB issued Interpretation No. 39, entitled, “Offsetting of Amounts Related to Certain Contracts”, which has been codified into Accounting Standards Codification (“ASC”) 210.

The following table presents the impact of derivative instruments on the Statements of Operations. The Trading Company did not designate any derivatives as hedging instruments for the three months ended March 31, 2010 and March 31, 2009.

		For the Three Months Ended March 31, 2010			For the Three Months Ended March 31, 2009
Derivatives not designated as hedging instruments	Location of gain or loss recognized in income on Derivatives	(unaudited) Gain/(Loss) on Derivatives			(unaudited) Loss on Derivatives

Forward contracts	Net realized trading gains (losses) on closed contracts	$	7,135,562		$	(1,918,926	)
	Net change in unrealized trading gains (losses) on open contracts		8,100,986			(7,352,438	)

Futures contracts	Net realized trading losses on closed contracts		(4,547,585	)		(9,499,665	)
	Net change in unrealized trading gains (losses) on open contracts		12,692,973			(15,267,835	)
Net Gain/(Loss) on Derivatives		$	23,381,936		$	(34,038,864	)

5.	SUBSEQUENT EVENTS

The General Partner has evaluated the impact of subsequent events on the Trading Company through the date of financial statement issuance, and noted no subsequent events that require adjustment to or disclosure in these financial statements.

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 through its investment in Man-AHL Diversified Trading Company L.P. (the “Trading Company”) pursuant to the AHL Diversified Program, directed on behalf of the Partnership by Man-AHL (USA) Limited (the “Advisor”). 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. 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 of limited partnership interests (“Units”) of the Partnership 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 the Trading Company. Its remaining capital resources are used only as assets available to make further investments in the Trading Company and to 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 provide collateral for 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-K filed March 31, 2010.

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 March 31, 2010:

	31-Mar-10
Ending Equity	$397,316,951

Three months ended March 31, 2010:

Net assets increased $62,808,635 for the three months ended March 31, 2010. This increase was attributable to subscriptions in the amount of $77,604,350, redemptions in the amount of $27,140,784 and a net gain from operations of $12,345,069.

Management Fees of $2,802,154, brokerage commissions of $372,101 and servicing fees of $1,442,395 were paid or accrued, and interest of $128,831 was earned or accrued on the Partnership’s cash and cash equivalent investments, for the three months ended March 31, 2010.

The Partnership’s other expenses paid or accrued for the three months ended March 31, 2010 were $95,279.

The agriculturals sector ended the first quarter relatively flat after significant gains generated from short wheat positions were offset by losses sustained mainly from long positions in cotton, soy, sugar, cocoa and coffee.

Bond market trading ended the quarter down as profitable positions in European bonds were offset by losses in US Treasuries and Japanese government bonds. In the case of European bonds, long positions were beneficial in January in particular as concerns rose on the back of Greece’s fiscal problems. 10-year European bond yields continued to edge downwards over February and March, ending the quarter 30bps lower. The directional nature of European bonds was in contrast to 10-year US Treasury yields which fluctuated in the range of 3.5% - 3.9%, the choppy nature causing losses on both the long and short positions. It was a similar scenario for trading in Japanese bonds; long positions posted losses at the beginning and end of the quarter as yields advanced.

The currency sector performed well over the period as several strong trends emerged. The general ‘risk on’ trade continued to produce returns as commodity linked currencies, most notably the Australian dollar, rose on the back of the general recovery theme. The Australian dollar was further buoyed as the Reserve Bank of Australia raised interest rates to the benefit of long positions against the US dollar. However, the majority of the sector’s returns were a function of the sovereign debt concerns in the eurozone. Fears over high levels of debt in Greece, but also Ireland, Spain, Italy and Portugal led to a substantial fall in the value of the euro and resulted in large profits from the program’s short euro positioning. Further profits accrued elsewhere in Europe with the British pound coming under pressure following a combination of poor economic data, general election concerns and comments from the Bank of England suggesting a potential expansion of the quantitative easing program. On the negative side, whipsawing of positions led losses in the euro: pound and yen: dollar currency pairs.

The energy sector posted a modest profit in the period. A large profit was made on the back of shorting natural gas as it dropped to below $4 MMBtu by the end of March. This was due to seasonal temperature rises and concerns over growing supply as US gas stocks rose for the first time this year with weekly inventories up 11bn cubic feet, slightly above consensus market forecasts. Trading in crude oil was far more difficult as prices proved volatile and positions whipsawed. Prices were negatively affected by the concerns over sovereign debt in Europe and the possibility of monetary tightening in China. However,

they were also bolstered by more positive news from the eurozone at the end of the period as a financial support package for Greece was agreed upon.

Trading in the interest rate sector produced profits as long positions in Euribor, Eurodollar and Short Sterling contracts performed well amid rising prices. Euribor headed the group; interest rate expectations in the eurozone remained low as the region worked towards a solution to Greece’s debt issues. In addition, concerns over the economic performance of other member nations such as Portugal, Ireland and Spain indicated to investors that rates would need to remain low in order to support an economic recovery. In the US, comments by Federal Reserve officials reiterated that rates would remain low for an extended period, driving Eurodollar prices higher. Long trades in Short Sterling were also beneficial as the UK’s budget position, the possibility of further quantitative easing and a timid economic rebound lowered expectations of a near-term rate hike.

Metals trading ended the quarter relatively flat. In January, the majority of long exposures weighed on performance. Fears that potential increases in interest rates in China, US and other major economies and sovereign debt problems in Europe could negatively impact demand for resources capped the performance of metals. Gold prices fell sharply towards the end of January as its appeal as a hedge against a weakened US dollar lessened as the US currency firmed over the month. Despite continued weakness in gold prices in February and March, sentiment towards commodities generally improved as the period progressed, amid bouts of weakness in the US dollar which prompted a broad return to risky assets, leading to gains for some long metals positions, notably nickel.

The majority of stock positions were held long over the quarter. However, long positions proved to be slightly detrimental. Despite positive trading in US stocks, losses made in the European and Asian markets were significant enough to wipe out gains. European stocks suffered due to credit difficulties in Greece which rose to the fore in mid-January. Over the three months, fears over European countries’ ability to repay its sovereign debt spread to Portugal and Spain. As a result, European stocks fell, with the MSCI Europe losing 1.8% over the quarter. As for Asian stocks, Chinese stocks were particularly impacted by concerns over imminent monetary tightening in China and the possibility of a revaluation of the renminbi. The Hang Seng Index led losses in this period.

Three months Ended March 31, 2009:

	31-Mar -09
Ending Equity	$232,322,608

Net assets increased $13,080,848 for the three months ended March 31, 2009. This increase was attributable to subscriptions in the amount of $45,111,785, redemptions in the amount of $13,602,725 and a net loss from operations of $18,428,212.

Management Fees of $1,738,015, brokerage commissions of $127,165 and servicing fees of $869,007 were paid or accrued, and interest of $131,827 was earned or accrued on the Partnership’s cash and cash equivalent investments, for the three months ended March 31, 2009.

The Partnership’s other expenses paid or accrued for the three months ended March 31, 2009 were $170,954.

Equity markets continued on their downward trend in early 2009, before rallying strongly in March. Concerns over the severity of the worldwide recession and lingering fears of bank nationalization drove equity values lower in January and February. However, optimism returned to the market in March as economic data improved and market commentators started to talk of a market bottom being reached.

Amid this environment, the AHL Diversified Program failed to build on its strong performance from last quarter. Numerous long standing trends, from which the AHL Diversified Program had profited in the past, became volatile or reversed direction. This was the case for the majority of sectors, but currency and

bond markets in particular. Currency trading posted a loss over the quarter, with the majority of losses coming in the last three weeks of March. Long Japanese yen positions against the US dollar proved to be the largest detractor to performance. Demand for the yen fell over the period as its appeal as a “safe haven” asset came under threat. Poor export data and GDP figures painted a bleak picture of the Japanese economy, while an uptick in risk appetite also reduced demand for the yen. Within bond markets, primarily long positions in almost all markets (US Treasuries and Japanese bond position in particular) were responsible for losses as previously profitable trends became volatile and choppy, with many positions impacted by a whipsawing in prices.

On the positive side, exposure to equity and short-term interest rate markets posted gains. A number of short equity positions capitalized on the slide in equity values around the world, with short S&P 500 contracts providing the greatest gains. On the short-term interest rate market side, long Euribor positions were solely responsible for the positive returns seen within the sector.

The agriculturals sector had mixed performance after small gains from wheat positions were offset by slight losses from exposure to soymeal, soybeans and corn. Short positions in wheat posted gains as prices continued to edge lower due to demand concerns fuelled by the weakening economy. However, short positions in soy and corn proved detrimental, especially in March, after prices rose as Argentine farmers halted grain sales after the government rejected demands to cut a 35% export tariff on soya.

Trading in government bond markets posted a loss over the quarter. Primarily long positions in almost all markets were responsible for the losses as previously profitable trends became volatile and choppy, with many positions impacted by a whipsawing in prices. Falling equity prices in January and February drove more investors into bond markets. However, March saw a large rally in equities as risk appetite improved, removing some demand for government securities.

Currency trading posted a loss over the quarter, with the majority of losses coming in the last three weeks of March. Long Japanese yen positions against the US dollar proved to be the largest detractor to performance. Demand for the yen fell over the period. Short British pound positions versus the US dollar posted losses, mainly due to volatility in this currency pair as the FX rate finished the quarter relatively unchanged. The Swiss National Bank’s (SNB) decision to intervene and devalue its currency produced negative performance for the program’s long positions in the Swiss franc against the US dollar. The SNB narrowed its target interest rate range, sold francs and bought bonds in an attempt to provide stimulus to the countries export-driven economy and to avoid deflation. Short Euro versus US dollar positions also weighed on performance, particularly over the latter half of the quarter. The US currency weakened as the Federal Reserve announced it was set to implement a quantitative approach to monetary policy. The Fed stated it would buy $300bn of long-term US Treasuries in an effort to boost market liquidity, surprising most investors.

Energy trading had an overall negative quarter as the previous year’s trend in the oil market came to an end. The program struggled with whipsawing trends in oil markets as prices became largely range bound as market forces in both directions bought against each other. Global recession pushed oil prices down while OPEC agreed to cut production and some positive economic data helped rally commodities. Losses were improved by gains in short natural gas trades.

Interest rate trading posted gains for the quarter. Long Euribor positions were responsible for almost all of the sector’s positive performance. Fears of deflation, expectations of interest rates cuts and actual ECB moves in the Eurozone area boosted prices throughout the period. Holding back further gains were losses from Eurodollar positions held in February.

Trading in base metals made a slight loss over the period. Short positions in copper were the largest detractor from performance as the commodity experienced a rally towards the end of the period amidst improving US economic data and a more optimistic outlook for the Chinese economy. Short positions in aluminum proved to be the best performer as prices declined sharply over January as the outlook for future demand deteriorated and stock levels increased, pushing prices lower. Trading in precious metals

posted a loss over the quarter. Short positions in silver proved to be misplaced as prices rose during the first of the period on safe haven buying. Long gold trades benefited from this safe haven buying over the first half of the period. However, prices failed to break through the all important $1000 mark, falling back quickly and becoming largely range bound, leading to losses over the second half of the quarter.

ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk.

Not required.

ITEM 4T.

Controls and Procedures.

The General Partner, with the participation of the General Partner's Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of the Partnership’s disclosure controls and procedures as of the end of the fiscal quarter ended March 31, 2010. Based on such evaluation, the Partnership’s Chief Executive Officer and Chief Financial Officer have concluded that the Partnership’s disclosure controls and procedures were effective as of the fiscal quarter ended March 31, 2010.

Changes in Internal Control over Financial Reporting

There were no significant changes in the Partnership’s internal control over financial reporting during the quarter ended March 31, 2010 that have materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1.

Legal Proceedings.

None.

Item 1A.

Risk Factors.

Not required.

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 January 31, 2010, February 28, 2010 and March 31, 2010, the Partnership sold Class A Units, exclusive of non-cash transfers, to existing and new Limited Partners in the amount of $5,422,283, $10,175,986, and $4,771,600, respectively. On January 31, 2010, February 28, 2010 and March 31, 2010, the Partnership sold Class A-2 Units, exclusive of non-cash transfers, to existing and new Limited Partners in the amount of $42,351,101, $536,900 and $525,000, respectively. On January 31, 2010, February 28, 2010 and March 31, 2010, the Partnership sold Class B Units, exclusive of non-cash transfers, to existing and new Limited Partners in the amount of $2,108,477, $1,492,400 and $1,985,897, respectively. On January 31, 2010, February 28, 2010 and March 31, 2010, the Partnership sold Class B-2 Units, exclusive of non-cash transfers, to existing and new Limited Partners in the amount of $7,687,706, $308,000 and $239,000, 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 March 31, 2010:

	Class A Units	Class A-2 Units	Class B Units	Class B-2 Units

Date of Redemption:	Amount Redeemed:	Amount Redeemed:	Amount Redeemed:	Amount Redeemed:
March 31, 2010	$7,366,446	$1,158,700	$1,396,962	$0
February 28, 2010	$4,929,312	$1,979,564	$1,254,198	$0
January 31, 2010	$3,381,657	$3,198,287	$944,611	$1,531,047
TOTAL	$15,677,415	$6,336,551	$3,595,771	$1,531,047

Item 3.

Defaults upon Senior Securities.

None.

Item 4.

(Removed and Reserved).

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.

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.

The following exhibits are incorporated by reference herein from the exhibits of the same description and number filed on March 31, 2010 with the Partnership's Annual Report on Form 10-K.

4.2	Sixth Amended Limited Partnership Agreement of Man-AHL Diversified I L.P.

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 May 17, 2010.

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

	By:	Man Investments (USA) Corp. General Partner

	By:	/s/ Andrew Stewart

		President and Chief Executive Officer
		(Principal Executive Officer)

	By:	/s/ Alicia Borst Derrah

		Vice President, Chief Financial Officer and Secretary
		(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