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

	FORM 10-Q

[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2008 or

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

Commission File Number 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
522 Fifth Avenue, 13th Floor
New York, NY		    					  	   10036
(Address of principal executive offices)	  	      (Zip Code)

Registrant?s telephone number, including area code    (212) 296-1999






(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, 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   X   		Smaller reporting company_______

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


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

	INDEX TO QUARTERLY REPORT ON FORM 10-Q

	March 31, 2008

<caption>


PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

				<c>
		Statements of Financial Condition as of March 31, 2008
		(Unaudited) and December 31, 2007	2

		Statements of Operations for the Quarters Ended
		March 31, 2008 and 2007 (Unaudited)	3

		Statements of Changes in Partners? Capital for the
		Quarters Ended March 31, 2008 and 2007 (Unaudited)	4

		Statements of Cash Flows for the Quarters Ended
		March 31, 2008 and 2007 (Unaudited)	5

		Condensed Schedules of Investments as of March 31, 2008
		(Unaudited) and December 31, 2007	.6

		Notes to Financial Statements (Unaudited)	7-15

Item 2.	Management?s Discussion and Analysis of
			Financial Condition and Results of Operations	16-25

Item 3.	Quantitative and Qualitative Disclosures About
			Market Risk	25-35

Item 4.	Controls and Procedures	35

Item 4T.	Controls and Procedures	..35


PART II. OTHER INFORMATION

Item 1A.Risk Factors 	36

Item 5.	Other Information....................................36-38

Item 6.	Exhibits 	38

</table>


<page> <table> PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

	MORGAN STANLEY CORNERSTONE FUND IV L.P.
	STATEMENTS OF FINANCIAL CONDITION
<caption>
	March 31,	     December 31,
	       2008      	    2007
	$	$
	(Unaudited)
ASSETS

	<c>	<c>
Trading Equity:
	Unrestricted cash	36,103,632     	    34,224,360
	Restricted cash	            -       		        836,349

	     Total cash	36,103,632	 35,060,709

	Net unrealized gain (loss) on open contracts  (MS&Co.)   	    1,725,012       	                  (393,917)

		Total Trading Equity    	37,828,644      	34,666,792

Interest receivable (MS&Co.)	31,952         	           70,792
Due from MS&Co.	          13,298	           17,409

	     Total Assets	   37,873,894          	       34,754,993

LIABILITIES AND PARTNERS? CAPITAL

Liabilities

Redemptions payable	846,767	487,407
Accrued administrative expenses	139,821	118,118
Accrued management fees	       110,058	         101,024

	     Total Liabilities	    1,096,646	         706,549

Partners? Capital

Limited Partners (6,527.110 and
   6,939.595 Units, respectively)	36,197,832	 33,543,431
General Partner (104.479 Units)	        579,416	        505,013

	     Total Partners? Capital	   36,777,248	   34,048,444

	     Total Liabilities and Partners? Capital	   37,873,894  	     34,754,993

NET ASSET VALUE PER UNIT	        5,545.77	       4,833.63
<fn>

The accompanying notes are an integral part
of these financial statements.
</table>
<page> <table> 	MORGAN STANLEY CORNERSTONE FUND IV L.P.
	STATEMENTS OF OPERATIONS
(Unaudited)
<caption>
	   	    For the Quarters Ended March 31,


                                                                         		          2008    	     2007
                                                                               	                      $		       $

		<c>		<c>
INVESTMENT INCOME
	Interest income (MS&Co.)		    147,611			      469,076


EXPENSES
	Management fees 	   	314,261 	408,709
	Brokerage commissions (MS&Co.)		273,661	363,310
	Common administrative expenses	    	      36,000	          44,000

		Total Expenses	                                                   	       623,922	         816,019

NET INVESTMENT LOSS	    (476,311)	      (346,943)

TRADING RESULTS
Trading profit (loss):
	Realized			3,231,798	(3,718,290)
	Net change in unrealized		    2,118,929	       (803,854)

		Total Trading Results                                           		    5,350,727	    (4,522,144)

NET INCOME (LOSS)                                                      	       4,874,416    	      (4,869,087)


NET INCOME (LOSS) ALLOCATION

	Limited Partners                                    4,800,013	 	 (4,810,631)
	General Partner             	        74,403	  	     (58,456)


NET INCOME (LOSS) PER UNIT

	Limited Partners                                          712.14	 	     (559.49)
	General Partner                                            712.14	   	     (559.49)



			             Units     	                             Units
WEIGHTED AVERAGE NUMBER
	OF UNITS OUTSTANDING                          	   6,842.085		   8,676.274


<fn>
	The accompanying notes are an integral part
	of these financial statements.
</table>
<page> <table> MORGAN STANLEY CORNERSTONE FUND IV L.P.
STATEMENTS OF CHANGES IN PARTNERS? CAPITAL
For the Quarters Ended March 31, 2008 and 2007
(Unaudited)

<caption>



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

	<c>	<c>	<c>	<c>
Partners? Capital,
   December 31, 2006	 8,897.859	 49,470,851	  587,791	50,058,642

Net Loss                                                                   ? 	  	(4,810,631)	(58,456)	(4,869,087)

Redemptions	    (451.229)	   (2,395,331)	           -    	   (2,395,331)

Partners? Capital,
   March 31, 2007                                              8,446.630	 	  42,264,889	    529,335	   42,794,224




Partners? Capital,
   December 31, 2007	 7,044.074	 33,543,431	  505,013	34,048,444

Net Income                                                                 ? 	  	4,800,013	74,403	4,874,416

Redemptions	    (412.485)	   (2,145,612)	           -    	   (2,145,612)

Partners? Capital,
   March 31, 2008                                              6,631.589	 	  36,197,832	    579,416	   36,777,248





<fn>





The accompanying notes are an integral part
of these financial statements.
</table>
<page> <table> 	MORGAN STANLEY CORNERSTONE FUND IV L.P.
	STATEMENTS OF CASH FLOWS
(Unaudited)


<caption>
	    For the Quarters Ended March 31,

	      2008     	      2007
	      $	      $


	<c>	<c>
CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss) 	4,874,416	(4,869,087)
Noncash item included in net income (loss):
       Net change in unrealized                                                    	(2,118,929)   	803,854

(Increase) decrease in operating assets:
       Restricted cash 	836,349	(821,439)
       Interest receivable (MS&Co.)	38,840	14,502
       Due from MS&Co.	4,111	(152,003)

Increase (decrease) in operating liabilities:
       Accrued administrative expenses 	21,703              	         4,352
       Accrued management fees	          9,034	       (22,555)

Net cash provided by (used for) operating activities	   3,665,524	   (5,042,376)


CASH FLOWS FROM FINANCING ACTIVITIES

Cash paid for redemptions of Units	   (1,786,252)	   (2,841,662)

Net cash used for financing activities	   (1,786,252)	   (2,841,662)

Net increase (decrease) in unrestricted cash	   1,879,272	(7,884,038)

Unrestricted cash at beginning of period	    34,224,360	   49,580,010

Unrestricted cash at end of period	    36,103,632	  41,695,972





<fn>



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

</table>


<page> <table> MORGAN STANLEY CORNERSTONE FUND IV L.P.
CONDENSED SCHEDULES OF INVESTMENTS
March 31, 2008 (Unaudited) and December 31, 2007

<caption>



Futures and Forward Contracts
Long
Unrealized
Gain/(Loss)

Percentage of
   Net Assets
    Short
Unrealized
Gain/(Loss)

Percentage of
  Net Assets
      Net
Unrealized
Gain/(Loss)

$
%
$
%
$

March 31, 2008, Partnership Net Assets:  $36,777,248




<c>
<c>
<c>
<c>
<c>
Foreign currency
  1,443,155
        3.92
    281,857
       0.77
 1,725,012






     Grand Total:
  1,443,155
        3.92
    281,857
       0.77
 1,725,012

     Unrealized Currency Gain/(Loss)





         ?

     Total Net Unrealized Gain



1,725,012



 (393,917)

December 31,  2007, Partnership Net Assets:  $34,048,444









Foreign currency
   (686,274)
       (2.02)
    292,357
       0.86
 (393,917)






     Grand Total:
   (686,274)
       (2.02)
    292,357
       0.86
 (393,917)

     Unrealized Currency Gain/(Loss)





         ?

     Total Net Unrealized Loss



 (393,917)











<fn>




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

</table>

<page> MORGAN STANLEY CORNERSTONE FUND IV L.P.
NOTES TO FINANCIAL STATEMENTS

March 31, 2008

(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. (the "Partnership").
The financial statements and condensed notes herein should be
read in conjunction with the Partnership?s December 31, 2007,
Annual Report on Form 10-K.

1.  Organization
Morgan Stanley Cornerstone Fund IV L.P. 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 (collectively, ?Futures
Interests?).  The Partnership is one of the Morgan Stanley
Cornerstone Funds, comprised of the Partnership, Morgan Stanley
Cornerstone Fund II L.P., and Morgan Stanley Cornerstone Fund III
L.P.

The Partnership?s general partner is Demeter Management
Corporation (?Demeter?). Morgan Stanley & Co. Incorporated
(?MS&Co.?).  MS&Co. also acts as the counterparty on all trading

<page> MORGAN STANLEY CORNERSTONE FUND IV L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

of foreign currency forward contracts.  Demeter 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 MS&Co. in futures,
forward, and options trading accounts to meet margin requirements
as needed.  Monthly, MS&Co. pays the Partnership interest income
on 80% of its average daily Net Assets at a rate equal to the
average yield on 13-week U.S. Treasury bills.  The Partnership
pays brokerage commissions to MS&Co.

3.  Income Taxes
No provision for income taxes has been made in the accompanying
financial statements, as partners are individually responsible
for reporting income or loss based upon their respective share of
the Partnership?s revenues or expenses for income tax purposes.
The Partnership files U.S. federal and state tax returns.  The
2004 through 2007 tax years generally remain subject to
examination by U.S. federal and most state tax authorities.






<page> MORGAN STANLEY CORNERSTONE FUND IV L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)



4.  Financial Instruments
The Partnership trades Futures Interests.  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.


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


<page> MORGAN STANLEY CORNERSTONE FUND IV L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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(losses) on open contracts, reported as a
component of "Trading Equity" on the Statements of Financial
Condition, and their longest contract maturities were as follows:

                  Net Unrealized Gains/(Losses)
                        on Open Contracts                Longest Maturities

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

Mar. 31, 2008	-	1,725,012	1,725,012	-	Jun. 2008
Dec. 31, 2007	-	      (393,917)	     (393,917)	-	Mar. 2008



<page> MORGAN STANLEY CORNERSTONE FUND IV L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

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 MS&Co. acts as the
futures commission merchant or the counterparty, with respect to
most of the Partnership?s assets. Exchange-traded futures,
exchange-traded forward, and exchange-traded futures-styled
options contracts are marked to market on a daily basis, with
variations in value settled on a daily basis.  MS&Co. as a
commodity broker for the Partnership?s exchange-traded futures,
exchange-traded forward, and exchange-traded futures-styled
options contracts, is required, pursuant to regulations of the
Commodity Futures Trading Commission ("CFTC"), to segregate from
its own assets, and for the sole benefit of its commodity
customers, all funds held by it with respect to exchange-traded
futures, exchange-traded forward, and exchange-traded futures-
styled options contracts, including an amount equal to the net
unrealized gains (losses) on all open exchange-traded futures,
exchange-traded forward, and exchange-traded futures-styled
options contracts.  With respect to the Partnership?s off-

<page> MORGAN STANLEY CORNERSTONE FUND IV L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)


exchange-traded forward currency contracts, there are no daily
settlements of variation in value, nor is there any requirement
that an amount equal to the net unrealized gains (losses) on such
contracts be segregated.  However, the Partnership is required to
meet margin requirements equal to the net unrealized loss on open
forward currency contracts in the Partnership accounts with the
counterparty, which is accomplished by daily maintenance of the
cash balance in a custody account held at 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.



5.  New Accounting Developments
In September 2006, the Financial Accounting Standards Board
(?FASB?) issued Statement of Financial Accounting Standards No.
157 (?SFAS? 157?), ?Fair Value Measurements?.  SFAS 157 requires
use of a fair value hierarchy that prioritizes the inputs to
valuation techniques used to measure fair value into three
levels: Level 1 ? quoted market prices in active markets for

<page> MORGAN STANLEY CORNERSTONE FUND IV L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)



identical assets and liabilities; Level 2 ? inputs other than
quoted market prices that are observable for the asset or
liability, either directly or indirectly (including quoted prices
for similar investments, interest rates, credit risk); and Level
3 ? unobservable inputs for the asset or liability (including the
Partnership?s own assumptions used in determining the fair value
of investments).

Demeter evaluated the impact of adopting SFAS 157 on the
Partnership?s financial statements.  The Partnership adopted SFAS
157 as of January 1, 2008.  Based on its analysis, the effect of
applying SFAS 157 to the investments included in the financial
statements does not have a material impact on the Partnership?s
financial statements.

The following table summarizes the valuation of the
Partnership?s investments by the above SFAS 157 fair value
hierarchy as of March 31, 2008:
<table> <caption>



Assets
   Quoted Prices in
  Active Markets for
    Identical Assets
          (Level 1)
Significant Other
     Observable
         Inputs
       (Level 2)
Significant
  Unobservable
   Inputs
 (Level 3)




            Total


<c>
<c>
 <c>

<c>
Unrealized gain on open contracts
         ?
 $   1,725,012
 n/a

 $  1,725,012
</table>

<page>

MORGAN STANLEY CORNERSTONE FUND IV L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)


In March 2008, the FASB issued SFAS No. 161, Disclosures about
Derivative Instruments and Hedging Activities (?SFAS 161?).  SFAS
161 is intended to improve financial reporting about derivative
instruments and hedging activities by requiring enhanced
disclosures to enable investors to better understand how those
instruments and activities are accounted for; how and why they are
used; and their effects on a Partnership?s financial position,
financial performance, and cash flows.  SFAS 161 is effective for
financial statements issued for fiscal years beginning after
November 15, 2008, and interim periods within those fiscal years.
The Partnership is currently evaluating the impact that the
adoption of SFAS No. 161 will have on its financial statement
disclosures.

6.  Restricted and Unrestricted Cash
As reflected on the Partnership?s Statements of Financial
Condition, restricted cash equals the cash portion of assets on
deposit to meet margin requirements plus the cash required to
offset unrealized losses on foreign currency forwards and options
and offset losses on offset London Metal Exchange positions.  All
of these amounts are maintained separately.  Cash that is not
classified as restricted cash is therefore classified as
unrestricted cash.
<page> MORGAN STANLEY CORNERSTONE FUND IV L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)

7.  Reclassification
Certain prior year amounts relating to cash balances were
reclassified on the Statements of Cash Flows to conform to 2008
presentation.  Such reclassification has no impact on the
Partnership?s reported net income (loss).
<page> Item 2. MANAGEMENT'S DISCUSSION
        AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS


Liquidity.  The Partnership deposits its assets with MS&Co. as its
commodity broker in separate futures, forward, 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.
These market conditions could prevent the Partnership from <page>
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,
forwards, and options in subsequent periods. It is not possible to
<page> 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, forward, and options
markets.  The following presents a summary of the Partnership?s
operations for the three month periods ended March 31, 2008, and
2007, 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. Consequently, the results of operations
of the Partnership are difficult to discuss other than in the
<page> 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 15 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 gain (loss)" for open
(unrealized) contracts, and recorded as "Realized trading gain
(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 a foreign currency forward contract is based on
the spot rate as of the close of business.  Interest income, as
well as management fees, incentive fees, and brokerage commissions
expenses of the Partnership are recorded on an accrual basis.

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

For the Quarter Ended March 31, 2008
The Partnership recorded total trading results including interest
income totaling $5,498,338 and expenses totaling $623,922,
resulting in net income of $4,874,416 for the quarter ended March
31, 2008.  The Partnership?s net asset value per Unit increased
from $4,833.63 at December 31, 2007, to $5,545.77 at March 31,
2008.

The most significant trading gains of approximately 5.9%, 4.7%,
1.2%, and 1.0% respectively, were experienced throughout the
quarter from long positions in the euro, Swiss franc, Chilean
peso, and Swedish krona versus the U.S. dollar as the value of
the U.S. dollar moved lower against its major rivals after
weaker-than-expected manufacturing data from the Federal Reserve
Bank of Philadelphia reignited fears of an economic slowdown in
the U.S.  In addition, the value of the U.S. dollar continued to
decline after U.S. government reports showed a rise in
unemployment and slower-than-expected fourth quarter 2007 Gross
Domestic Product growth. During March, the value of the U.S.
dollar continued to decline following news of weaker-than-
expected U.S. retail sales, and U.S. consumer confidence at a 16-
year low. Lastly, the value of the U.S. dollar was pulled lower
due to several interest rate cuts by the U.S. Federal Reserve, as
<page> well as indications that interest rates may continue to
decline. Additional gains of approximately 1.2% were achieved
from short positions in the South African rand relative to the
U.S. dollar as the value of the South African rand reversed lower
against most of its major rivals during February and March amid
pessimism about the long-term status of the South African
economy. A portion of these gains for the quarter was offset by
losses of approximately 0.8% from short positions in the British
pound versus the U.S. dollar as the value of the British pound
strengthened throughout the quarter after retail sales in the
United Kingdom unexpectedly increased and minutes from the Bank
of England indicated the central bank had significant concerns
about accelerating inflation in the United Kingdom. Furthermore,
the value of the British pound moved higher against the U.S.
dollar after the Bank of England decided to hold interest rates
steady. Additional losses of approximately 0.4% were incurred
during January and March from both long and short positions in
the New Zealand dollar versus the U.S. dollar as the value of the
New Zealand dollar moved without consistent direction due to
conflicting economic data out of New Zealand. Losses of
approximately 0.3% were recorded from short positions in the
Japanese yen versus the U.S. dollar as the Japanese yen
strengthened during January after a decline in global equity
markets and weaker-than-expected U.S. economic data caused
investors to reduce existing carry trade positions. Further
losses were incurred from newly established long positions in the
<page> Japanese yen versus the U.S. dollar as the value of the
Japanese yen reversed lower during February following comments
from the Bank of Japan that the Japanese economy may be slowing.
Lastly, losses of approximately 0.3% were experienced primarily
during February and March from short positions in the Indian
rupee versus the U.S. dollar as the value of the U.S. dollar fell
amid the aforementioned reasons regarding negative U.S. economic
data. Conversely, the value of the Indian rupee increased after a
government report showed accelerating inflation in India, thereby
increasing speculation that the Reserve Bank of India may not cut
interest rates in the near-future.

For the Quarter Ended March 31, 2007
The Partnership recorded total trading results including interest
income totaling $(4,053,068) and expenses totaling $816,019,
resulting in a net loss of $4,869,087 for the quarter ended March
31, 2007.  The Partnership?s net asset value per Unit decreased
from $5,625.92 at December 31, 2006, to $5,066.43 at March 31,
2007.

The most significant trading losses of approximately 3.9% were
experienced from both short and long positions in the South
African rand versus the U.S. dollar as the value of the South
African rand moved without consistent direction throughout a
majority of January.  Further losses were incurred from short
positions in the South African rand versus the U.S. dollar as the
<page> value of the South African rand strengthened relative to
the U.S. dollar at the beginning of March on expectations that
increased demand for South Africa?s exports would significantly
improve the South African economy.  Elsewhere, losses of
approximately 2.3% were recorded during February and early March
from long positions in the British pound versus the U.S. dollar
as the value of the British pound weakened against the U.S.
dollar after a report showed U.K. services growth had slowed in
January and on speculation that the Bank of England would not
continue to increase interest rates in the near-term.  Additional
losses of approximately 1.2% and 1.1% respectively, were
experienced from long positions in the New Zealand dollar and
Australian dollar versus the U.S. dollar during January as the
value of the U.S. dollar moved higher against these currencies
after economic data suggested that the U.S. Federal Reserve would
not cut interest rates in the near term.  Newly established short
positions in the New Zealand dollar versus the U.S. dollar
resulted in losses during February as the value of the New
Zealand dollar moved higher in tandem with rising commodity
prices.  During March, losses were incurred from both short and
long positions in the Australian dollar versus the U.S. dollar as
the value of the Australian dollar moved without consistent
direction throughout the month.  Meanwhile, losses of
approximately 1.1% were recorded from short positions in the
Mexican peso versus the U.S. dollar during March as the Mexican
peso strengthened on increased speculation of an interest rate
<page> hike from the Bank of Mexico.  Smaller losses of
approximately 1.0% were experienced during late February and
early March from short positions in the Japanese yen versus the
U.S. dollar as the value of the Japanese yen reversed sharply
higher against the U.S. dollar in late February due to a
combination of factors including an almost 10% drop in the
Shanghai stock market and a warning from Rodrigo Rato, Managing
Director of the International Monetary Fund, that a weak yen
"could lead to more entrenched exchange rate misalignments that
worsen global imbalances" encouraged traders to unwind short
positions in the Japanese yen against most of its major rivals.
Elsewhere in the currency markets, losses of approximately 0.6%,
0.5%, and 0.4% respectively, were experienced from both short and
long positions in the Polish zloty, Norwegian krone, and Czech
koruna versus the U.S. dollar as the value of these currencies
moved in a trendless manner throughout a majority of the quarter.
Finally, short positions in the Swiss franc versus the U.S.
dollar incurred losses of approximately 0.2% during February as
the value of the Swiss franc also reversed higher against the
U.S. dollar due to speculation of a narrowing interest rate
differential.  A portion of these losses for the quarter was
offset by gains of approximately 1.3% and 0.4% respectively,
primarily during February and March from long positions in the
Brazilian real and Singapore dollar versus the U.S. dollar as the
value of these currencies finished higher against the U.S. dollar
after the U.S. Federal Reserve kept the benchmark interest rate
<page> steady and indicated that rates would not likely increase
in the near-term.  Further gains of approximately 0.1% were
experienced from long positions in the euro versus the U.S.
dollar as the value of the euro moved higher against the U.S.
dollar during March amid a record U.S. trade deficit and
indications from European Central Bank council member Klaus
Liebscher that interest rates in the Euro-Zone could increase
further.

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,
<page> and consequently in its earnings, whether realized or
unrealized, and cash flow.  Gains and losses on open positions of
exchange-traded futures, exchange-traded forward, and exchange-
traded futures-styled options contracts are settled daily through
variation margin.  Gains and losses on off-exchange-traded
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 forward
currency contracts in the Partnership accounts with the
counterparty, which is accomplished by daily maintenance of the
cash balance in a custody account held at 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.

<page> 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 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
<page> the Partnership?s open positions is directly reflected in
the Partnership?s earnings and cash flow.

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
<page> would represent the 10th worst outcome from Demeter?s
simulated profit and loss series.

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 March 31, 2008, and 2007.  At
March 31, 2008, and 2007, the Partnership?s total capitalization
was approximately $37 million and $43 million, respectively.




<page>
Primary Market	        March 31, 2008	     March 31, 2007
Risk Category		   Value at Risk		Value at Risk
Currency				  (2.10)%			    (3.74)%

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 April 1, 2007, through March 31, 2008.

Primary Market Risk Category        High      Low      Average
Currency   					(3.20)%	(1.76)%	 (2.46)%

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.
<page> However, VaR risk measures should be viewed in light of the
methodology?s limitations, which include, but may not be limited
to the following:
*	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 March 31, 2007, and for the
four quarter-end reporting periods from April 1, 2007, through
March 31, 2008.  VaR is not necessarily representative of the
<page> Partnership?s historic risk, nor should it be used to
predict the Partnership?s future financial performance 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 March 31, 2008.

The Partnership also maintains a substantial portion of its
available assets in cash at MS&Co.; as of March 31, 2008, such
amount was equal to approximately 97% 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.

<page>
Qualitative Disclosures Regarding Primary Trading Risk Exposures
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.

<page> The following was the only trading risk exposure of the
Partnership at March 31, 2008.  It may be anticipated, however,
that market exposure will vary materially over time.

Currency.  The Partnership?s currency market exposure at March
31, 2008, 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 March 31, 2008, 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 March 31, 2008, there was no non-trading risk exposure because
the Partnership did not have any foreign currency balances.

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
<page> among different Trading Managers, each of whose strategies
focus on different market sectors and trading approaches, in a
multi-manager Partnership, 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
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.

Changes in Internal Control Over Financial Reporting
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>
Item 4T.	CONTROLS AND PROCEDURES
Not applicable.
<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, 2007.

Item 5.  OTHER INFORMATION
Management.  Effective March 20, 2008, Mr. Michael Durbin, age
40, was named a Director of Demeter, subject to approval by the
National Futures Association.  Mr. Durbin is a Managing Director
of Morgan Stanley and has been Chief Operating Officer of
National Sales since February 2008.  Mr. Durbin joined Morgan
Stanley in 1990 and has served in a succession of leadership
positions in both its institutional and wealth management
businesses, most recently as head of Global Wealth Management
Group Capital Markets from October 2007 to February 2008.  Mr.
Durbin also served as Head of Equity Products and Services from
March 2006 to October 2007, Head of International Private Wealth
Management from May 2005 to March 2006, Chief Strategic and Risk
<page> Officer of Global Wealth Management Group from September
2004 to May 2005, and Chief Administrative Officer of each of
Private Wealth Management and Global Wealth Management Group
from January 2002 to September 2004.  Mr. Durbin received his
B.B.A. from the University of Notre Dame in 1990 and an M.B.A.
from the New York University in 1998.

Effective March 20, 2008, Mr. Jose Morales, age 31, was named a
Director of Demeter, subject to approval by the National Futures
Association.  Mr. Morales is a Vice President at Morgan Stanley
and has headed the Product Development Group for the firm?s
Global Wealth Management business since August 2007.  Mr.
Morales joined the firm in September 1998 as an analyst in the
investment management division, and subsequently held positions
in the Morgan Stanley Investment Management Global Product
Development Group from May 2000 to December 2003, in the Global
Wealth Management Product Development Group from December 2003
to June 2006, and in Global Wealth Management Alternative
Investments Product Development & Management from June 2006 to
August 2007.  Mr. Morales is a member of the Global Wealth
Management New Products Committee and the Consulting Services
Due Diligence Committee.  Prior to his appointment as a Director
of Demeter, Mr. Morales served as a member of the Managed <page>
Futures Investment Management Committee from March 2005 to March
2008.  Mr. Morales received an M.B.A. with a concentration in
Finance from the NYU Stern School of Business in June 2007 and a
B.S. in International Business Administration with a
concentration in Economics from Fordham University in 1998.

Effective April 1, 2008, Mr. Andrew Saperstein no longer serves
as a Director of Demeter.

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)

May 15, 2008            By:/s/ Christian Angstadt

                               Christian Angstadt
                               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.

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