UNITED STATES
	SECURITIES AND EXCHANGE COMMISSION
	Washington, D.C. 20549

	FORM 10-Q

[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2006 or

[ ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from               to__________________

Commission File Number 0-15442

	MORGAN STANLEY CORNERSTONE FUND IV L.P.

	(Exact name of registrant as specified in its charter)

		New York						     13-3393597
(State or other jurisdiction of		   		  (I.R.S. Employer
incorporation or organization)			       Identification No.)

Demeter Management Corporation
330 Madison Avenue, 8th Floor
New York, NY		    					 	   10017
(Address of principal executive offices)	  	      (Zip Code)

Registrant?s telephone number, including area code  (212) 905-2700
















(Former name, former address, and former fiscal year, if changed since
last report)


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

Yes    X       	No___________

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

Large accelerated filer___Accelerated filer____Non-accelerated filer X

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


<page> <table> 	MORGAN STANLEY CORNERSTONE FUND IV L.P.

(formerly, Dean Witter Cornerstone Fund IV)

	INDEX TO QUARTERLY REPORT ON FORM 10-Q

	September 30, 2006


<caption>

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

				<c>
		Statements of Financial Condition as of September 30, 2006
		(Unaudited) and December 31, 2005	2

		Statements of Operations for the Three and Nine Months
		Ended September 30, 2006 and 2005 (Unaudited)	3

		Statements of Changes in Partners? Capital for the
		Nine Months Ended September 30, 2006 and 2005 (Unaudited)	4

		Statements of Cash Flows for the Nine Months Ended
		September 30, 2006 and 2005 (Unaudited)	5

		Notes to Financial Statements (Unaudited)	6-12

Item 2.	Management?s Discussion and Analysis of
			Financial Condition and Results of Operations	13-27

Item 3.	Quantitative and Qualitative Disclosures about
			Market Risk	27-37

Item 4.	Controls and Procedures	..37


PART II. OTHER INFORMATION

Item 1A.Risk Factors 	38

Item 5.	Other Information	38-40

Item 6.	Exhibits 	40

</table>


<page> <table> PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

	MORGAN STANLEY CORNERSTONE FUND IV L.P.
(formerly, Dean Witter Cornerstone Fund IV)
	STATEMENTS OF FINANCIAL CONDITION
<caption>
	September 30,	     December 31,
	       2006      	    2005
	$	$
	(Unaudited)
ASSETS

	<c>	<c>
Equity in futures interests trading accounts:
	Unrestricted cash	  50,184,063	   64,125,073

	     Total cash	50,184,063	 64,125,073

	Net unrealized gain on open contracts (MS & Co.)      	       126,786       	     1,973,887

		Total Trading Equity    	50,310,849      	 66,098,960

Interest receivable (Morgan Stanley DW)	162,622	170,317
Due from Morgan Stanley DW	      116,350	          55,750

	     Total Assets	   50,589,821             	      66,325,027

LIABILITIES AND PARTNERS? CAPITAL

Liabilities

Redemptions payable	615,926	1,232,662
Accrued management fees	147,292	193,125
Accrued administrative expenses	         89,526	         110,888

	     Total Liabilities	       852,744	     1,536,675

Partners? Capital

Limited Partners (9,316.885 and
  10,902.992 Units, respectively)	49,185,514	 64,109,338
General Partner (104.479 and
   115.479 Units, respectively)	       551,563	        679,014

	     Total Partners? Capital	  49,737,077	  64,788,352

	     Total Liabilities and Partners? Capital	   50,589,821 	   66,325,027

NET ASSET VALUE PER UNIT	      5,279.18	     5,879.98
<fn>

	The accompanying notes are an integral part
	of these financial statements.
</table>
<page> <table> 	MORGAN STANLEY CORNERSTONE FUND IV L.P.
(formerly, Dean Witter Cornerstone Fund IV)
	STATEMENTS OF OPERATIONS
(Unaudited)

<caption>

         For the Three Months	                    For the Nine Months
  	                   Ended September 30,     	     Ended September 30,


                       2006   	        2005    	      2006   	    2005
                       $	          $	         $	 	 $

	    <c>		<c>		<c>			<c>
INVESTMENT INCOME
	Interest income (Morgan Stanley DW)                   	   503,156		       490,358	   1,556,166		        1,332,484

EXPENSES
	Brokerage commissions (Morgan Stanley DW)	         470,791         	623,182	1,534,990		2,188,849
	Management fees	                                                       446,715        	    646,694	1,458,693 		   2,015,302
	Common administrative expenses	                               47,000              33,000	     128,000	          	101,000

		   Total Expenses 	                                               964,506	   1,302,876	   3,121,683 		     4,305,151

NET INVESTMENT LOSS 	                                          (461,350)	      (812,518)	  (1,565,517)		   (2,972,667)

TRADING RESULTS
Trading profit (loss):
	Realized	                                                                   (73,441)	(1,169,934)	(3,000,329)		(9,188,422)
	Net change in unrealized	                                          149,432	   (4,042,642)  	   (1,847,101)            (5,831,151)

		  Total Trading Results	                                       75,991	   (5,212,576)	   (4,847,430)		  (15,019,573)

NET LOSS	                                                 (385,359)	  (6,025,094)	    (6,412,947)		 (17,992,240)

NET LOSS ALLOCATION

	Limited Partners	(381,314)      	  (5,948,129)	(6,345,911)		(17,773,468)
	General Partner 	(4,045)	(76,965)	(67,036)		(218,772)


NET LOSS PER UNIT

	Limited Partners                                                           (38.71)             (495.79)	 	(600.80)	(1,396.27)
	General Partner                                                            (38.71)             (495.79)	 	(600.80)	(1,396.27)


<fn>


	The accompanying notes are an integral part
	of these financial statements.

</table>
<page> <table> 	MORGAN STANLEY CORNERSTONE FUND IV L.P.
(formerly, Dean Witter Cornerstone Fund IV)
	STATEMENTS OF CHANGES IN PARTNERS? CAPITAL
	For the Nine Months Ended September 30, 2006 and 2005
	(Unaudited)

<caption>



	 Units of
	   Partnership	Limited	  General
	   Interest   	Partners	   Partner  	     Total
		$	   $	$

	<c>	<c>	<c>	<c>
Partners? Capital,
   December 31, 2004	13,031.460	 93,819,259	1,147,630	94,966,889

Net Loss                                                                   ? 	  	(17,773,468)	(218,772)	(17,992,240)

Redemptions      (1,377.408)        (8,169,380)	           (148,392)     (8,317,772)

Partners? Capital,
   September 30, 2005	                                   11,654.052	   67,876,411	      780,466	  68,656,877



Partners? Capital,
   December 31, 2005	11,018.471	 64,109,338	  679,014	64,788,352

Net Loss                                                                   ? 	  	(6,345,911)	(67,036)	(6,412,947)

Redemptions     (1,597.107)        (8,577,913)	            (60,415)    (8,638,328)

Partners? Capital,
   September 30, 2006	                                    9,421.364	   49,185,514	      551,563	     49,737,077






<fn>






The accompanying notes are an integral part
	of these financial statements.
</table>



<page> <table>
	MORGAN STANLEY CORNERSTONE FUND IV L.P.
(formerly, Dean Witter Cornerstone Fund IV)
	STATEMENTS OF CASH FLOWS
(Unaudited)


<caption>
	    For the Nine Months Ended September 30,

	      2006     	      2005
	      $	      $


CASH FLOWS FROM OPERATING ACTIVITIES

			<c>	<c>
Net loss 	(6,412,947)	(17,992,240)
Noncash item included in net loss:
       Net change in unrealized                                                    	1,847,101   	5,831,151

(Increase) decrease in operating assets:
       Restricted cash	?    	12,748
       Interest receivable (Morgan Stanley DW)	7,695	(41,288)
       Due from Morgan Stanley DW	(60,600)	32,362

Decrease in operating liabilities:
       Accrued management fees	(45,833)	(74,299)
       Accrued administrative expenses	        (21,362)	           (31,450)

Net cash used for operating activities	   (4,685,946)	    (12,263,016)


CASH FLOWS FROM FINANCING ACTIVITIES

Cash paid for redemptions of Units	    (9,255,064)	    (7,407,186)

Net cash used for financing activities	   (9,255,064)	   (7,407,186)

Net decrease in unrestricted cash	(13,941,010)	(19,670,202)

Unrestricted cash at beginning of period	    64,125,073	   89,655,633

Unrestricted cash at end of period	   50,184,063	   69,985,431



<fn>


	The accompanying notes are an integral part
	of these financial statements.

</table>


<page> MORGAN STANLEY CORNERSTONE FUND IV L.P.
(formerly, Dean Witter Cornerstone Fund IV)
NOTES TO FINANCIAL STATEMENTS

September 30, 2006

(Unaudited)


The unaudited financial statements contained herein include, in
the opinion of management, all adjustments necessary for a fair
presentation of the results of operations and financial condition
of Morgan Stanley Cornerstone Fund IV L.P. (formerly known as
Dean Witter Cornerstone Fund IV) (the ?Partnership?).  The
financial statements and condensed notes herein should be read in
conjunction with the Partnership?s December 31, 2005 Annual
Report on Form 10-K.  Certain prior year amounts relating to cash
balances were reclassified on the Statements of Financial
Condition and the related Statements of Cash Flows to conform to
2006 presentation.  Such reclassifications have no impact on the
Partnership?s reported net income (loss).

1.  Organization
Morgan Stanley Cornerstone Fund IV L.P. (formerly known as Dean
Witter Cornerstone Fund IV) is a New York limited partnership
organized in 1986 to engage in the speculative trading of futures
contracts, options on futures contracts, and forward contracts on
foreign currencies.  The Partnership is one of the Morgan Stanley
Cornerstone Funds, comprised of the Partnership, Morgan Stanley

<page> MORGAN STANLEY CORNERSTONE FUND IV L.P.
(formerly, Dean Witter Cornerstone Fund IV)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Cornerstone Fund II L.P., and Morgan Stanley Cornerstone Fund III
L.P.

Effective July 21, 2006, Dean Witter Cornerstone Fund IV was
renamed to Morgan Stanley Cornerstone Fund IV L.P.

The Partnership?s general partner is Demeter Management
Corporation (?Demeter?).  The non-clearing commodity broker is
Morgan Stanley DW Inc. (?Morgan Stanley DW?). The clearing
commodity broker is Morgan Stanley & Co. Incorporated (?MS &
Co.?).  Demeter, Morgan Stanley DW, and MS & Co. are wholly-owned
subsidiaries of Morgan Stanley.  The trading managers to the
Partnership are John W. Henry & Company, Inc. and Sunrise Capital
Management, Inc. (individually, a ?Trading Manager?, or
collectively, the ?Trading Managers?).

2.  Related Party Transactions
The Partnership?s cash is on deposit with Morgan Stanley DW and
MS & Co. in futures, forwards, and options trading accounts to
meet margin requirements as needed.  Monthly, Morgan Stanley DW
pays the Partnership interest income equal to 80% of its average
daily Net Assets at a rate equal to the average yield on 13-week

<page> MORGAN STANLEY CORNERSTONE FUND IV L.P.
(formerly, Dean Witter Cornerstone Fund IV)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

U.S. Treasury bills.  The Partnership pays brokerage commissions
to Morgan Stanley DW.

3.  Financial Instruments
The Partnership trades futures contracts, options on futures
contracts, and forward contracts on foreign currencies.  Futures
and forwards represent contracts for delayed delivery of an
instrument at a specified date and price.  Risk arises from
changes in the value of these contracts and the potential
inability of counterparties to perform under the terms of the
contracts.  There are numerous factors which may significantly
influence the market value of these contracts, including interest
rate volatility.

The market value of exchange-traded contracts is based on the
settlement price quoted by the exchange on the day with respect
to which market value is being determined.  If an exchange-traded
contract could not have been liquidated on such day due to the
operation of daily limits or other rules of the exchange, the
settlement price shall be the settlement price on the first
subsequent day on which the contract could be liquidated.  The
market value of off-exchange-traded contracts is based on the
fair market value quoted by the counterparty.
<page> MORGAN STANLEY CORNERSTONE FUND IV L.P.
(formerly, Dean Witter Cornerstone Fund IV)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

The Partnership?s contracts are accounted for on a trade-date
basis and marked to market on a daily basis. The Partnership
accounts for its derivative investments in accordance with the
provisions of Statement of Financial Accounting Standards No.
133, ?Accounting for Derivative Instruments and Hedging
Activities? (?SFAS No. 133?).  SFAS No. 133 defines a derivative
as a financial instrument or other contract that has all three of
the following characteristics:

1)	One or more underlying notional amounts or payment
provisions;
2)	Requires no initial net investment or a smaller initial net
investment than would be required relative to changes in
market factors;
3)	Terms require or permit net settlement.

Generally, derivatives include futures, forward, swap or options
contracts, and other financial instruments with similar
characteristics such as caps, floors, and collars.

The net unrealized gains on open contracts, reported as a
component of ?Equity in futures interests trading accounts? on the
Statements of Financial Condition, and their longest contract
maturities were as follows:
<page> MORGAN STANLEY CORNERSTONE FUND IV L.P.
(formerly, Dean Witter Cornerstone Fund IV)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                      Net Unrealized Gains
                        on Open Contracts                Longest Maturities

                 Exchange-  Off-Exchange-             Exchange-  Off-Exchange-
Date              Traded      Traded       Total       Traded       Traded
                     $          $            $

Sep. 30, 2006	-	126,786			126,786	-	Dec. 2006
Dec. 31, 2005	-	1,973,887	1,973,887	-	Mar. 2006

The Partnership has credit risk associated with counterparty non-
performance.  As of the date of the financial statements, the
credit risk associated with the instruments in which the
Partnership trades is limited to the amounts reflected in the
Partnership?s Statements of Financial Condition.

The Partnership also has credit risk because Morgan Stanley DW
and MS & Co. act as the futures commission merchants or the
counterparties, with respect to most of the Partnership?s assets.
Exchange-traded futures, forward, and futures-styled options
contracts are marked to market on a daily basis, with variations
in value settled on a daily basis.  Morgan Stanley DW and MS &
Co., each as a futures commission merchant for the Partnership?s
exchange-traded futures, forward, and futures-styled options
contracts, are required, pursuant to regulations of the Commodity


Futures Trading Commission (?CFTC?), to segregate from their own
assets, and for the sole benefit of their commodity customers,
all funds held by them with respect to exchange-traded futures,

<page> MORGAN STANLEY CORNERSTONE FUND IV L.P.
(formerly, Dean Witter Cornerstone Fund IV)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

forward, and futures-styled options contracts, including an
amount equal to the net unrealized gains (losses) on all open
futures, forward, and futures-styled options contracts.  With
respect to the Partnership?s off-exchange-traded forward currency
contracts, there are no daily exchange-required settlements of
variation in value, nor is there any requirement that an amount
equal to the net unrealized gains (losses) on open forward
contracts be segregated.  However, the Partnership is required to
meet margin requirements equal to the net unrealized loss on open
contracts in the Partnership accounts with the counterparty, which
is accomplished by daily maintenance of the cash balance in a
custody account held at Morgan Stanley DW for the benefit of MS &
Co. With respect to those off-exchange-traded forward currency
contracts, the Partnership is at risk to the ability of MS & Co.,
the sole counterparty on all such contracts, to perform.  The
Partnership has a netting agreement with MS & Co.  This
agreement, which seeks to reduce both the Partnership?s and MS &
Co.?s exposure on off-exchange-traded forward currency contracts,
should materially decrease the Partnership?s credit risk in the
event of MS & Co.?s bankruptcy or insolvency.



<page> MORGAN STANLEY CORNERSTONE FUND IV L.P.
(formerly, Dean Witter Cornerstone Fund IV)
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)

4.  New Accounting Developments
In July 2006, the FASB issued FASB Interpretation No. 48,
?Accounting for Uncertainty in Income Taxes, an interpretation of
FASB Statement No. 109? (?FIN 48?). FIN 48 clarifies the
accounting for uncertainty in income taxes recognized in a
company?s financial statements and prescribes a recognition
threshold and measurement attribute for the financial statement
recognition and measurement of a tax position taken or expected to
be taken in an income tax return. FIN 48 also provides guidance on
derecognition, classification, interest and penalties, accounting
in interim periods, disclosure and transition. FIN 48 is effective
for the Partnership as of January 1, 2007. The Partnership is cur-
rently evaluating the potential impact of adopting FIN 48.

In September 2006, the FASB issued SFAS No. 157, ?Fair Value
Measurements? (?SFAS No. 157?). SFAS No. 157 defines fair value,
establishes a framework for measuring fair value and expands
disclosures about fair value measurements. SFAS No. 157 is
effective for the Partnership as of January 1, 2008 . The Partner-
ship is currently evaluating the potential impact of adopting SFAS
No. 157.




<page> Item 2. MANAGEMENT?S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS


Liquidity.  The Partnership deposits its assets with Morgan
Stanley DW as non-clearing broker and MS & Co. as clearing broker
in separate futures, forwards, and options trading accounts
established for each Trading Manager.  Such assets are used as
margin to engage in trading and may be used as margin solely for
the Partnership?s trading. The assets are held in either non-
interest bearing bank accounts or in securities and instruments
permitted by the CFTC for investment of customer segregated or
secured funds.  Since the Partnership?s sole purpose is to trade
in futures, forwards, and options, it is expected that the
Partnership will continue to own such liquid assets for margin
purposes.

The Partnership?s investment in futures, forwards, and options
may, from time to time, be illiquid.  Most U.S. futures exchanges
limit fluctuations in prices during a single day by regulations
referred to as ?daily price fluctuations limits? or ?daily
limits?.  Trades may not be executed at prices beyond the daily
limit.  If the price for a particular futures or options contract
has increased or decreased by an amount equal to the daily limit,
positions in that futures or options contract can neither be taken
nor liquidated unless traders are willing to effect trades at or
within the limit. Futures prices have occasionally moved the daily
limit for several consecutive days with little or no trading.
<page> These market conditions could prevent the Partnership from
promptly liquidating its futures or options contracts and result
in restrictions on redemptions.

There is no limitation on daily price moves in trading forward
contracts on foreign currencies.  The markets for some world
currencies have low trading volume and are illiquid, which may
prevent the Partnership from trading in potentially profitable
markets or prevent the Partnership from promptly liquidating
unfavorable positions in such markets, subjecting it to
substantial losses.  Either of these market conditions could
result in restrictions on redemptions.  For the periods covered
by this report, illiquidity has not materially affected the
Partnership?s assets.

There are no known material trends, demands, commitments,
events, or uncertainties at the present time that are reasonably
likely to result in the Partnership?s liquidity increasing or
decreasing in any material way.

Capital Resources.  The Partnership does not have, nor does it
expect to have, any capital assets.  Redemptions of units of
limited partnership interest (?Unit(s)?) in the future will affect
the amount of funds available for investments in futures, <page>
forwards, and options in subsequent periods. It is not possible to
estimate the amount, and therefore the impact, of future outflows
of Units.

There are no known material trends, favorable or unfavorable,
that would affect, nor any expected material changes to, the
Partnership?s capital resource arrangements at the present time.

Off-Balance Sheet Arrangements and Contractual Obligations.  The
Partnership does not have any off-balance sheet arrangements, nor
does it have contractual obligations or commercial commitments to
make future payments that would affect its liquidity or capital
resources.

Results of Operations
General. The Partnership?s results depend on the Trading Managers
and the ability of each Trading Manager?s trading program to take
advantage of price movements in the futures, forwards, and
options markets.  The following presents a summary of the
Partnership?s operations for the three and nine month periods
ended September 30, 2006 and 2005, and a general discussion of
its trading activities during each period. It is important to
note, however, that the Trading Managers trade in various markets
at different times and that prior activity in a particular market
does not mean that such market will be actively traded by the
Trading Managers or will be profitable in the future. <page>
Consequently, the results of operations of the Partnership are
difficult to discuss other than in the context of the Trading
Managers? trading activities on behalf of the Partnership during
the period in question.  Past performance is no guarantee of
future results.

The Partnership?s results of operations set forth in the financial
statements on pages 2 through 12 of this report are prepared in
accordance with accounting principles generally accepted in the
United States of America, which require the use of certain
accounting policies that affect the amounts reported in these
financial statements, including the following:  The contracts the
Partnership trades are accounted for on a trade-date basis and
marked to market on a daily basis.  The difference between their
cost and market value is recorded on the Statements of Operations
as ?Net change in unrealized trading profit (loss)? for open
(unrealized) contracts, and recorded as ?Realized trading profit
(loss)? when open positions are closed out.  The sum of these
amounts constitutes the Partnership?s trading results.  The market
value of a futures contract is the settlement price on the
exchange on which that futures contract is traded on a particular
day.  The value of foreign currency forward contracts is based on
the spot rate as of the close of business.  Interest income, as
well as management fees, incentive fees, brokerage commissions
expenses of the Partnership are recorded on an accrual basis.

<page> Demeter believes that, based on the nature of the
operations of the Partnership, no assumptions relating to the
application of critical accounting policies other than those
presently used could reasonably affect reported amounts.

For the Three and Nine Months Ended September 30, 2006
The Partnership recorded total trading results including interest
income totaling $579,147 and expenses totaling $964,506,
resulting in a net loss of $385,359 for the three months ended
September 30, 2006.  The Partnership?s net asset value per Unit
decreased from $5,317.89 at June 30, 2006 to $5,279.18 at
September 30, 2006.

The most significant trading losses of approximately 2.0% were
incurred primarily during July from long positions in the euro
versus the U.S. dollar as the value of the euro moved lower after
the European Central Bank decided to keep its key interest rate
unchanged.  Elsewhere, losses of approximately 1.3% were incurred
during July from short positions in the South African rand versus
the U.S. dollar as the value of the rand moved higher in tandem
with increasing commodity prices.  Additional losses were
incurred during August from newly established long positions in
the South African rand versus the U.S. dollar during August as
the value of the rand weakened against the U.S. dollar after the
release of data showing South Africa?s trade deficit widened
more-than-expected.  During September, losses of approximately
<page> 0.9%, 0.7% and 0.4%, respectively, were recorded from long
positions in the Singapore dollar, Mexican peso, and Australian
dollar against the U.S. dollar as the value of the U.S. dollar
increased against these currencies after government reports
showed U.S. consumer confidence rebounded in September.  In
addition, the value of the Mexican peso declined after investors
expressed concern that a military coup in Thailand would have a
?ripple-effect? on other emerging-market currencies.  Finally,
smaller losses of approximately 0.3%, 0.3% and 0.3%,
respectively, were recorded from both long and short positions in
the U.S. dollar relative to the Czech koruna, Polish zloty, and
New Zealand dollar as the value of these currencies moved without
consistent direction throughout a majority of the quarter.  A
portion of the Partnership?s overall losses for the quarter was
offset by gains of approximately 5.5% and 0.3%, respectively,
from positions in the U.S. dollar relative to the Japanese yen
and British pound.  During August, gains were recorded from short
positions in the Japanese yen versus the U.S. dollar as the value
of the yen weakened against most of its major rivals after the
Japanese Consumer Price Index for July came in lower-than-
expected, diminishing expectations of another interest rate hike
by the Bank of Japan this year.  The value of the yen continued
to trend lower in September after a report showed Japanese
consumer confidence fell in August, resulting in gains from short
positions against the U.S. dollar.  During July, gains were
experienced from long positions in the British pound versus the
<page> U.S. dollar as the value of the pound increased on solid
housing and consumer-price data out of the United Kingdom.  In
addition, the value of the British pound was pressured higher
during August after the Bank of England unexpectedly lifted its
key interest rate.

The Partnership recorded total trading results including interest
income totaling $(3,291,264) and expenses totaling $3,121,683,
resulting in a net loss of $6,412,947 for the nine months ended
September 30, 2006.  The Partnership?s net asset value per Unit
decreased from $5,879.98 at December 31, 2005 to $5,279.18 at
September 30, 2006.

The most significant trading losses of approximately 4.0%, 3.6%,
and 2.4%, respectively, resulted from short positions in the
Swiss franc, Japanese yen, and Australian dollar versus the U.S.
dollar during the first six months of the year.  The Swiss franc
and Japanese yen moved higher against the U.S. dollar during
January and February as strong economic data out of Switzerland
and Japan increased speculation that the Swiss National Bank and
Bank of Japan might raise interest rates.  In addition, the
Japanese yen strengthened during April on speculation of a
possible Bank of Japan interest rate hike, while the Swiss franc
moved higher on geopolitical tensions in the Middle East.
Meanwhile, the Australian dollar also moved higher on an
unexpected interest rate hike by the Reserve Bank of Australia in
<page> May.  Finally, the U.S. dollar moved lower during April
and May on news that foreign central banks were beginning to
diversify their currency reserves away from U.S. dollar-
denominated assets, as well as uncertainty regarding the future
of the U.S. Federal Reserve?s interest rate tightening campaign.
Further losses of approximately 1.3% and 1.3%, respectively, were
experienced primarily during May and June from long positions in
the Brazilian real, as well as both long and short positions in
the Polish zloty, as the value of the Brazilian real moved lower
on political concerns, while the value of the Polish zloty moved
without consistent direction.  A portion of the Partnership?s
losses in the first nine months of the year was offset by gains
of approximately 1.3% and 0.7%, respectively, recorded from short
positions in the South African rand and New Zealand dollar versus
the U.S. dollar.  The South African rand weakened against the
U.S. dollar during June as the value of this ?commodity-currency?
fell in tandem with falling gold prices.  Meanwhile, the New
Zealand dollar continued to weaken against the U.S. dollar on
expectations for an economic slow-down in New Zealand.  Finally,
smaller gains of approximately 0.6% and 0.5%, respectively, were
experienced during April and May from long positions in the
Singapore dollar and euro against the U.S. dollar as the value of
the U.S. dollar moved lower on news that foreign central banks
would diversify their currency reserves away from the U.S.
dollar.  Additionally, the euro strengthened during April and May
after Dutch Finance Minister Gerritt Zalm said that the European
<page> Central Bank would not intervene to halt the appreciation
of the euro, as well as on increased expectations of an interest
rate hike in the near-future by the European Central Bank.

For the Three and Nine Months Ended September 30, 2005
The Partnership recorded total trading results including interest
income totaling $(4,722,218) and expenses totaling $1,302,876,
resulting in a net loss of $6,025,094 for the three months ended
September 30, 2005.  The Partnership?s net asset value per Unit
decreased from $6,387.03 at June 30, 2005 to $5,891.24 at
September 30, 2005.

The most significant trading losses of approximately 4.2%, 1.5%,
1.0%, 0.7%, and 0.6%, respectively, resulted from positions in
the British pound, Norwegian krone, both the New Zealand and
Australian dollars, and the Czech koruna.  During July, long
positions in the British pound versus the U.S. dollar experienced
losses as the value of the pound dropped sharply on geopolitical
concerns after a terror attack on the London public
transportation system.  During August, long U.S. dollar positions
against the British pound, Norwegian krone, and Czech koruna,
incurred losses as the value of the U.S. dollar declined amid
higher crude oil prices, lower durable goods orders, the U.S.
trade imbalance, and economic warnings from U.S. Federal Reserve
Chairman Alan Greenspan.  Strong signals of euro-zone economic
improvement also supported the advance of the British pound,
<page> Norwegian krone, and Czech koruna.  Short positions in the
New Zealand and Australian dollars versus the U.S. dollar
recorded losses as the values of those currencies moved higher on
strong economic data out of the region.  During September, losses
were recorded from short U.S. dollar positions against the
British pound, Norwegian krone, Czech koruna, and both the
Australian and New Zealand dollars, as the value of the U.S.
dollar advanced amid bolstered expectations that the U.S. Federal
Reserve would continue to raise interest rates. Also forcing the
New Zealand dollar lower against the U.S. dollar were fears for
an economic slow-down in New Zealand during 2006.  Additional
losses of approximately 1.2% were recorded from positions in the
Singapore dollar against the U.S. dollar.  During July, short
positions recorded losses after the Singapore dollar?s value
reversed higher in response to market expectations for future
economic growth in Singapore.  During August, losses stemmed from
long Singapore dollar positions after the value of the Singapore
dollar finished lower in response to disappointing export data.
Finally, smaller Partnership losses of approximately 0.1% were
recorded during August from short positions in the euro and Swiss
franc, respectively, against the U.S. dollar after the value of
the U.S. dollar weakened on disappointing economic data.  A
portion of the Partnership?s overall losses for the quarter was
offset by gains of approximately 1.6% from short positions in the
Japanese yen versus the U.S. dollar during July and September.
During July, gains resulted after the U.S. dollar?s value <page>
strengthened against the yen on significant interest-rate
differentials between the U.S. and Japan.  Market participants
also drove the U.S. dollar higher against the yen amid beliefs
that U.S. interest rates would increase further, the release of
strong U.S. economic data, and news that the U.S. Current-Account
deficit had narrowed.  During September, short Japanese yen
positions achieved gains after the yen?s value declined in the
wake of weak Japanese economic data, including industrial
production, salaried household spending, and the Tokyo consumer
price index.

The Partnership recorded total trading results including interest
income totaling $(13,687,089) and expenses totaling $4,305,151,
resulting in a net loss of $17,992,240 for the nine months ended
September 30, 2005.  The Partnership?s net asset value per Unit
decreased from $7,287.51 at December 31, 2004 to $5,891.24
at September 30, 2005.


The most significant trading losses of approximately 13.9%
resulted from positions in European currencies against the U.S.
dollar.  Early during the first quarter, losses resulted from
long positions in the British pound, Norwegian krone, euro, Czech
koruna, and Swedish krona versus the U.S. dollar after the U.S.
dollar?s value reversed sharply higher amid an increase in U.S.
interest rates and consumer prices.  The U.S. dollar?s value also
advanced in response to expectations that the Chinese government
would announce postponement of its revaluation of the Chinese
<page> yuan.  During February, losses were incurred from short
European currency positions after the U.S. dollar?s value
weakened in response to concerns for the considerable U.S.
Current-Account deficit as expressed by Federal Reserve Chairman
Alan Greenspan.  During early March, short European currency
positions continued to experience losses as their values moved
higher amid a sharp rise in German industrial production.
Further losses were recorded from newly-established long European
currency positions versus the U.S. dollar as the U.S. dollar?s
value reversed sharply higher amid an increase in U.S. interest
rates and consumer prices.  During the second quarter, long
British pound positions incurred losses as the pound?s value
declined after British Prime Minister Tony Blair's Labour Party
won re-election with a reduced government majority, and then
moved lower later in the quarter on growing speculation that the
interest rate differential between the U.S. and the U.K. would
tighten.  During July, long British pound positions experienced
losses as the value of the pound dropped sharply on geopolitical
concerns after a terror attack on the London public
transportation system.  During August, short British pound
positions incurred losses as the value of the U.S. dollar
declined amid higher crude oil prices, lower durable goods
orders, the U.S. trade imbalance, and economic warnings from U.S.
Federal Reserve Chairman Alan Greenspan.  During September,
losses were recorded from long positions in the British pound,
Norwegian krone, and Czech koruna, as the value of the U.S.
<page> dollar advanced amid bolstered expectations that the U.S.
Federal Reserve would continue to raise interest rates.
Additional losses of approximately 5.9%, 2.4%, and 1.9%,
respectively, were recorded from positions in the South African
rand, New Zealand dollar, and Australian dollar (collectively the
?Commodity Currencies?).  During the first quarter, losses
stemmed from both long and short positions in these currencies
versus the U.S. dollar as the values of the Commodity Currencies
traded counter to the U.S. dollar, which benefited due to
positive economic data.  During the second quarter, long
positions in the Australian dollar versus the U.S. dollar
produced losses as the Australian dollar declined amid falling
gold prices.  During the third quarter, short positions in the
New Zealand and Australian dollars versus the U.S. dollar
recorded losses as the values of the Commodity Currencies moved
higher on strong economic data out of the region.  During
September, losses were recorded from long Australian and New
Zealand dollar positions as the value of the U.S. dollar advanced
amid bolstered expectations that the U.S. Federal Reserve would
continue to raise interest rates. Also forcing the New Zealand
dollar against the U.S. dollar lower were fears for an economic
slow-down in New Zealand during 2006.  Partnership losses of
approximately 3.3% were recorded primarily during the first
quarter from positions in the Singapore dollar versus the U.S.
dollar.  During February, long positions in the Singapore dollar
against the U.S. dollar incurred losses early in the month as the
<page> U.S. dollar?s value benefited from positive economic
sentiment.  Newly-established short Singapore dollar positions
also incurred losses later in the month after the U.S. dollar
weakened due to a larger-than-expected drop in January leading
economic indicators and news that South Korea?s Central Bank
planned to reduce its U.S. dollar currency reserves.  During
March, long positions in the Singapore dollar versus the U.S.
dollar resulted in losses as the value of the U.S. dollar
reversed sharply higher amid an increase in U.S. interest rates
and U.S. consumer prices.  Positions in the Singapore dollar
against the U.S. dollar held during the third quarter also
contributed to sector losses.  A portion of the Partnership?s
overall losses for the first nine months of the year was offset
by gains of approximately 3.8% from short positions in the
Japanese yen against the U.S. dollar.  During March, gains
resulted as the U.S. dollar advanced against the yen due to an
increase in U.S. interest rates by the U.S. Federal Reserve.
Short Japanese yen positions held during the second quarter
produced profits as the yen?s value declined during May and June
in response to weak Japanese economic data.  During July, gains
resulted after the U.S. dollar?s value strengthened against the
yen on significant interest-rate differentials between the U.S.
and Japan.  Market participants also drove the U.S. dollar higher
against the yen during July amid beliefs that U.S. interest rates
would increase further, the release of strong U.S. economic data,
and news that the U.S. Current-Account deficit had narrowed.
<page> During September, short Japanese yen positions achieved
gains after the yen?s value declined in the wake of weak Japanese
economic data, including industrial production, salaried
household spending, and the Tokyo consumer price index.

Item 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Introduction
The Partnership is a commodity pool engaged primarily in the
speculative trading of futures, forwards, and options.  The
market-sensitive instruments held by the Partnership are acquired
for speculative trading purposes only and, as a result, all or
substantially all of the Partnership?s assets are at risk of
trading loss.  Unlike an operating company, the risk of market-
sensitive instruments is inherent to the primary business
activity of the Partnership.

The futures, forwards, and options traded by the Partnership
involve varying degrees of related market risk.  Market risk is
often dependent upon changes in the level or volatility of
interest rates, exchange rates, and prices of financial
instruments and commodities, factors that result in frequent
changes in the fair value of the Partnership?s open positions,
and consequently in its earnings, whether realized or unrealized,
and cash flow.  Gains and losses on open positions of exchange-
traded futures, forwards, and options are settled daily through
variation margin.  Gains and losses on off-exchange-traded <page>
forward currency contracts are settled upon termination of the
contract.  However, the Partnership is required to meet margin
requirements equal to the net unrealized loss on open contracts
in the Partnership accounts with the counterparty, which is
accomplished by daily maintenance of the cash balance in a
custody account held at Morgan Stanley DW for the benefit of MS &
Co.

The Partnership?s total market risk may increase or decrease as
it is influenced by a wide variety of factors, including, but not
limited to, the diversification among the Partnership?s open
positions, the volatility present within the markets, and the
liquidity of the markets.

The face value of the market sector instruments held by the
Partnership is typically many times the applicable margin
requirements.  Margin requirements generally range between 2% and
15% of contract face value.  Additionally, the use of leverage
causes the face value of the market sector instruments held by
the Partnership typically to be many times the total
capitalization of the Partnership.

The Partnership?s past performance is no guarantee of its future
results.  Any attempt to numerically quantify the Partnership?s
market risk is limited by the uncertainty of its speculative
trading.  The Partnership?s speculative trading and use of <page>
leverage may cause future losses and volatility (i.e., ?risk of
ruin?) that far exceed the Partnership?s experience to date under
the ?Partnership?s Value at Risk in Different Market Sectors?
section and significantly exceed the Value at Risk (?VaR?)
tables disclosed.

Limited partners will not be liable for losses exceeding the
current net asset value of their investment.

Quantifying the Partnership?s Trading Value at Risk
The following quantitative disclosures regarding the Partner-
ship?s market risk exposures contain ?forward-looking statements?
within the meaning of the safe harbor from civil liability
provided for such statements by the Private Securities Litigation
Reform Act of 1995 (set forth in Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of
1934).  All quantitative disclosures in this section are deemed
to be forward-looking statements for purposes of the safe harbor,
except for statements of historical fact.

The Partnership accounts for open positions on the basis of mark
to market accounting principles.  Any loss in the market value of
the Partnership?s open positions is directly reflected in the
Partnership?s earnings and cash flow.

<page> The Partnership?s risk exposure in the market sectors
traded by the Trading Managers is estimated below in terms of VaR.
The Partnership estimates VaR using a model based upon historical
simulation (with a confidence level of 99%) which involves
constructing a distribution of hypothetical daily changes in the
value of a trading portfolio.  The VaR model takes into account
linear exposures to risk including equity and commodity prices,
interest rates, foreign exchange rates, and correlation among
these variables. The hypothetical changes in portfolio value are
based on daily percentage changes observed in key market indices
or other market factors (?market risk factors?) to which the
portfolio is sensitive.  The one-day 99% confidence level of the
Partnership?s VaR corresponds to the negative change in portfolio
value that, based on observed market risk factors, would have been
exceeded once in 100 trading days, or one day in 100.  VaR
typically does not represent the worst case outcome.  Demeter uses
approximately four years of daily market data (1,000 observations)
and re-values its portfolio (using delta-gamma approximations) for
each of the historical market moves that occurred over this time
period.  This generates a probability distribution of daily
?simulated profit and loss? outcomes.  The VaR is the appropriate
percentile of this distribution.  For example, the 99% one-day VaR
would represent the 10th worst outcome from Demeter?s simulated
profit and loss series.

<page> The Partnership?s VaR computations are based on the risk
representation of the underlying benchmark for each instrument or
contract and do not distinguish between exchange and non-exchange
dealer-based instruments.  They are also not based on exchange
and/or dealer-based maintenance margin requirements.

VaR models, including the Partnership?s, are continually evolving
as trading portfolios become more diverse and modeling techniques
and systems capabilities improve.  Please note that the VaR model
is used to numerically quantify market risk for historic
reporting purposes only and is not utilized by either Demeter or
the Trading Managers in their daily risk management activities.
Please further note that VaR as described above may not be
comparable to similarly-titled measures used by other entities.

The Partnership?s Value at Risk in Different Market Sectors
The following table indicates the VaR associated with the
Partnership?s open positions as a percentage of total Net Assets
by primary market risk category at September 30, 2006 and 2005.
At September 30, 2006 and 2005, the Partnership?s total
capitalization was approximately $50 million and $69 million,
respectively.

Primary Market	      September 30, 2006	   September 30, 2005
Risk Category		   Value at Risk		Value at Risk
Currency				  (2.95)%			    (2.74)%

<page> The VaR for a market category represents the one-day
downside risk for the aggregate exposures associated with this
market category.  Because the business of the Partnership is the
speculative trading of futures, forwards, and options, the
composition of its trading portfolio can change significantly
over any given time period, or even within a single trading day.
Such changes could positively or negatively materially impact
market risk as measured by VaR.

The table below supplements the quarter-end VaR set forth above
by presenting the Partnership?s high, low, and average VaR, as a
percentage of total Net Assets for the four quarter-end reporting
periods from October, 2005 through September 30, 2006.

Primary Market Risk Category        High      Low      Average
Currency   					(2.95)%	(1.45)%	(2.16)%

Limitations on Value at Risk as an Assessment of Market Risk
VaR models permit estimation of a portfolio?s aggregate market
risk exposure, incorporating a range of varied market risks,
reflect risk reduction due to portfolio diversification or hedging
activities, and can cover a wide range of portfolio assets.
However, VaR risk measures should be viewed in light of the
methodology?s limitations, which include, but may not be limited
to the following:

<page>
*	past changes in market risk factors will not always result in
accurate predictions of the distributions and correlations of
future market movements;
*	changes in portfolio value caused by market movements may
differ from those of the VaR model;
*	VaR results reflect past market fluctuations applied to current
trading positions while future risk depends on future
positions;
*	VaR using a one-day time horizon does not fully capture the
market risk of positions that cannot be liquidated or hedged
within one day; and
*	the historical market risk factor data used for VaR estimation
may provide only limited insight into losses that could be
incurred under certain unusual market movements.

In addition, the VaR tables above, as well as the past
performance of the Partnership, give no indication of the
Partnership?s potential ?risk of ruin?.

The VaR tables provided present the results of the Partnership?s
VaR for its market risk exposures at September 30, 2005, and for
the four quarter-end reporting periods from October 1, 2005
through September 30, 2006.  VaR is not necessarily
representative of the Partnership?s historic risk, nor should it
be used to predict the Partnership?s future financial performance
<page> or its ability to manage or monitor risk.  There can be no
assurance that the Partnership?s actual losses on a particular
day will not exceed the VaR amounts indicated above or that such
losses will not occur more than once in 100 trading days.
Non-Trading Risk
The Partnership has non-trading market risk on its foreign cash
balances.  The Partnership did not have any foreign currency
balances at September 30, 2006.

The Partnership also maintains a substantial portion of its
available assets in cash at Morgan Stanley DW; as of September
30, 2006, such amount is equal to approximately 101% of the
Partnership?s net asset value.  A decline in short-term interest
rates would result in a decline in the Partnership?s cash
management income. This cash flow risk is not considered to be
material.

Materiality, as used throughout this section, is based on an
assessment of reasonably possible market movements and any
associated potential losses, taking into account the leverage,
optionality, and multiplier features of the Partnership?s market-
sensitive instruments, in relation to the Partnership?s Net
Assets.

Qualitative Disclosures Regarding Primary Trading Risk Exposures
<page> The following qualitative disclosures regarding the
Partnership?s market risk exposures - except for (A) those
disclosures that are statements of historical fact and (B) the
descriptions of how the Partnership manages its primary market
risk exposures - constitute forward-looking statements within the
meaning of Section 27A of the Securities Act and Section 21E of
the Securities Exchange Act. The Partnership?s primary market
risk exposures, as well as the strategies used and to be used by
Demeter and the Trading Managers for managing such exposures, are
subject to numerous uncertainties, contingencies and risks, any
one of which could cause the actual results of the Partnership?s
risk controls to differ materially from the objectives of such
strategies. Government interventions, defaults and expro-
priations, illiquid markets, the emergence of dominant
fundamental factors, political upheavals, changes in historical
price relationships, an influx of new market participants,
increased regulation, and many other factors could result in
material losses, as well as in material changes to the risk
exposures and the risk management strategies of the Partnership.
Investors must be prepared to lose all or substantially all of
their investment in the Partnership.

The following was the only trading risk exposure of the
Partnership at September 30, 2006.  It may be anticipated,
however, that market exposure will vary materially over time.

<page> Currency.  The Partnership?s currency market exposure at
September 30, 2006 was to exchange rate fluctuations, primarily
fluctuations which disrupt the historical pricing relationships
between different currencies and currency pairs.  Interest rate
changes, as well as political and general economic conditions
influence these fluctuations.  The Partnership trades a large
number of currencies.  At September 30, 2006, the Partnership?s
primary exposure was to outright U.S. dollar positions.  Outright
positions consist of the U.S. dollar vs. other currencies.  These
other currencies include major and minor currencies.  Demeter
does not anticipate that the risk associated with the
Partnership?s currency trades will change significantly in the
future.

Qualitative Disclosures Regarding Non-Trading Risk Exposure
At September 30, 2006, there was no non-trading risk exposure
because the Partnership did not have any foreign currency
balance.

Qualitative Disclosures Regarding Means of Managing Risk Exposure
The Partnership and the Trading Managers, separately, attempt to
manage the risk of the Partnership?s open positions in essentially
the same manner in all market categories traded.  Demeter attempts
to manage market exposure by diversifying the Partnership?s assets
among different Trading Managers in a multi-manager Partnership,
each of whose strategies focus on different market sectors and
<page> trading approaches, and by monitoring the performance of
the Trading Managers daily.  In addition, the Trading Managers
establish diversification guidelines, often set in terms of the
maximum margin to be committed to positions in any one market
sector or market-sensitive instrument.
Demeter monitors and controls the risk of the Partnership?s non-
trading instrument, cash.  Cash is the only Partnership invest-
ment directed by Demeter, rather than the Trading Managers.

Item 4.	CONTROLS AND PROCEDURES
(a)	As of the end of the period covered by this quarterly
report, the President and Chief Financial Officer of
Demeter, the general partner of the Partnership, have
evaluated the effectiveness of the Partnership?s disclosure
controls and procedures (as defined in Rules 13a?15(e) and
15d?15(e) of the Exchange Act), and have judged such
controls and procedures to be effective.

(b)	There have been no material changes during the period
covered by this quarterly report in the Partnership?s
internal control over financial reporting (as defined in
Rules 13a-15(f) and 15d-15(f) of the Exchange Act) or in
other factors that could significantly affect these controls
subsequent to the date of their evaluation.
<page> PART II.  OTHER INFORMATION

Item 1A. RISK FACTORS

Information regarding risk factors appears in Item 2.
?Management?s Discussion and Analysis of Financial Condition and
Results of Operations? and Item 3.  ?Quantitative and Qualitative
Disclosures about Market Risk? of this Form 10-Q.  There have been
no other material changes from the risk factors previously
referenced in the Partnership?s Report on Form 10-K for the fiscal
year ended December 31, 2005 and the Partnership?s Reports on Form
10-Q for the quarters ended March 31, 2006 and June 30, 2006.

Item 5. OTHER INFORMATION
Management.  On September 22, 2006, the following individual was
elected as a Director of Demeter.  Jacques Chappuis, age 37, is
a Director of Demeter, and will be a principal of Demeter,
pending approval by and registration with the National Futures
Association.  Mr. Chappuis is a Managing Director of Morgan
Stanley and Head of Alternative Investments for the Global
Wealth Management Group.  Prior to joining Morgan Stanley in
2006, Mr. Chappuis was Head of Alternative Investments for
Citigroup?s Global Wealth Management Group and prior to that a
Managing Director at Citigroup Alternative Investments.  Before
joining Citigroup, Mr. Chappuis was a consultant at the Boston
<page> Consulting Group, where he focused on the financial
services sector, and a corporate finance Associate at Bankers
Trust Company.  Mr. Chappuis received a B.A. degree in finance
from Tulane University in 1991 and an MBA in finance, with
honors, from the Columbia University Graduate School of Business
in 1998.

On November 6, 2006, Mr. Kevin Perry resigned his position as
Chief Financial Officer of Demeter effective November 7, 2006.

On November 7, 2006, the Board of Directors of Demeter appointed
Mr. Lee Horwitz as the Chief Financial Officer of Demeter.  Lee
Horwitz, age 55, is the Chief Financial Officer of Demeter, and
will be a principal of Demeter, pending approval by and
registration with the National Futures Association.  Mr. Horwitz
currently serves as an Executive Director and Controller within
the Global Wealth Management Group at Morgan Stanley.  Mr.
Horwitz joined Morgan Stanley in March 1984 and has held a
variety of positions throughout Morgan Stanley?s organization
during his tenure.  Mr. Horwitz received a B.A. degree from
Queens College and an MBA from Rutgers University.  Mr. Horwitz
is a Certified Public Accountant.


<page>
Other.  Effective July 21, 2006, Dean Witter Cornerstone Fund IV
was renamed to Morgan Stanley Cornerstone Fund IV L.P.

Item 6.  EXHIBITS

31.01	Certification of President of Demeter Management
Corporation, the general partner of the Partnership,
pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
31.02	Certification of Chief Financial Officer of Demeter
Management Corporation, the general partner of the
Partnership, pursuant to Section 302 of the Sarbanes-
Oxley Act of 2002.
32.01	Certification of President of Demeter Management
Corporation, the general partner of the Partnership,
pursuant to 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002.
32.02	Certification of Chief Financial Officer of Demeter
Management Corporation, the general partner of the
Partnership, pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002.











<page>

SIGNATURE



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.



                        Morgan Stanley Cornerstone Fund IV L.P.
                          (Registrant)

                        By:   Demeter Management Corporation
                              (General Partner)

November 14, 2006       By:/s/ Lee Horwitz
                               Lee Horwitz
                               Chief Financial Officer





The General Partner which signed the above is the only party
authorized to act for the Registrant.  The Registrant has no
principal executive officer, principal financial officer,
controller, or principal accounting officer and has no Board of
Directors.

- 10 -









MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)

? 41 ?