FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                 (X) QUARTERLY REPORT UNDER SECTION 13 or 15(d)

                     OF THE SECURITIES EXCHANGE ACT OF 1934

               OR ( ) TRANSITION REPORT UNDER SECTION 13 or 15(d)

                     OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarter ended March 31, 1999

Commission File Number 333-61961

    SALOMON SMITH BARNEY GLOBAL DIVERSIFIED FUTURES FUND L.P.
             (Exact name of registrant as specified in its charter)

      New York                                13-4015586
(State or other jurisdiction of      (I.R.S. Employer
 incorporation or organization)       Identification No.)


                    c/o Smith Barney Futures Management Inc.
                           390 Greenwich St. - 1st Fl.
                    New York, New York 10013
         (Address and Zip Code of principal executive offices)


                          (212) 723-5424                              
(Registrant's telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.
                                                 Yes   X    No

<PAGE>



            SALOMON SMITH BARNEY GLOBAL DIVERSIFIED FUTURES FUND L.P.
                                    FORM 10-Q
                                      INDEX

                                                                    Page
                                                                   Number
PART I - Financial Information:

    Item 1     Financial Statements:

               Statement of Financial Condition at
               March 31, 1999 (unaudited)                             3

               Statement of Income and Expenses and  Partners'
               Capital for the period from June 15, 1998 (date
               Partnership was organized) to March 31, 1999
               (unaudited)                                            4

               Notes to Financial Statements
               (unaudited)                                           5 - 9

    Item 2     Management's Discussion and
               Analysis of Financial Condition
               and Results of Operations                            10 - 13

    Item 3     Quantitative and Qualitative
               Disclosures of Market Risk                           14 - 19

PART II - Other Information                                            20


<PAGE>


                                     PART I

                          ITEM 1. FINANCIAL STATEMENTS

            SALOMON SMITH BARNEY GLOBAL DIVERSIFIED FUTURES FUND L.P.
                        STATEMENT OF FINANCIAL CONDITION

                                        MARCH 31,
                                          1999
                                     (Unaudited)
ASSETS:                              
Equity in commodity futures
 trading account:
  Cash                               $33,057,033
  Net unrealized appreciation
   on open futures contracts             843,690
                                     -----------
                                      33,900,723

Interest receivable                      103,870
                                     -----------
                                     $34,004,593
                                     ===========


LIABILITIES AND PARTNERS' CAPITAL:
Liabilities:
 Accrued expenses:
  Commissions                        $   147,112
  Management fees                         56,301
  Incentive fees                          44,110
  Other expense                           26,656
Due to SSB                               670,666
                                     -----------
                                         944,845

Partners' Capital:
General Partner, 338 Unit
   equivalents outstanding in 1999       331,402
Limited Partners, 33,380 Unit
  of Limited Partnership
  Interest outstanding in 1999
  respectively                        32,728,346
                                     -----------

                                      33,059,748
                                     -----------

                                     $34,004,593

                                     ===========


See Notes to Financial Statements.

                                               3




<PAGE>

            SALOMON SMITH BARNEY GLOBAL DIVERSIFIED FUTURES FUND L.P.
             STATEMENT OF INCOME AND EXPENSES AND PARTNERS' CAPITAL
                                   (UNAUDITED)


                                                           PERIOD FROM
                                                           JUNE 15, 1998
                                                         (DATE PARTNERSHIP
                                                            WAS ORGANIZED)
                                                           TO MARCH 31,
                                                             1999
                                                          --------------

Income:
  Net gains (losses) on trading of commodity
   futures:
  Realized losses on closed positions                      $   (485,486)
  Change in unrealized gains/losses on open
   positions                                                    843,690
                                                           ------------

                                                                358,204
Less, brokerage commissions including clearing fees
   of $7,925                                                   (330,772)
                                                           ------------

  Net realized and unrealized gains (losses)                     27,432

  Interest income                                               191,122
                                                           ------------

                                                                218,554
                                                           ------------

Expenses:
  Management fees                                               106,041
  Incentive fees                                                 44,110
  Other                                                         726,655
                                                           ------------

                                                                876,806
                                                           ------------

Net loss                                                       (658,252)

Proceeds from offering -Limited Partners                     33,380,000
                       -General Partner                         338,000
                                                           ------------

Partners' capital, end of period                           $ 33,059,748
                                                           ============

Net asset value per Unit
  (33,718 Units outstanding at March 31, 1999)             $     980.48
                                                           ============

Net loss per Unit of Limited Partnership
  Interest and General Partner Unit equivalent             $     (19.52)
                                                           ============

Redemption Net asset value per Unit                        $     999.49
                                                           ============


See Notes to Financial Statements

                                           4



<PAGE>


            SALOMON SMITH BARNEY GLOBAL DIVERSIFIED FUTURES FUND L.P.
                          NOTES TO FINANCIAL STATEMENTS
                                 March 31, 1999
                                   (Unaudited)

1.    General:

     Salomon   Smith  Barney   Global   Diversified   Futures  Fund  L.P.   (the
"Partnership") is a limited partnership organized under the laws of the State of
New York, on June 15, 1998 to engage in the speculative trading of a diversified
portfolio  of  commodity  interests  including  futures  contracts,  options and
forward  contracts.  The commodity  interests that are traded by the Partnership
are volatile and involve a high degree of market risk. The Partnership commenced
trading operations on February 2, 1999.

     Between November 25, 1998 (commencement of offering period) and February 1,
1999,  33,379 Units of limited  partnership  interest and 337 Units  equivalents
representing the general  partner's  contribution  were sold at $1,000 per unit.
The proceeds of the offering were held in an escrow  account  until  February 2,
1999, at which time they were turned over to the Partnership for trading.

     Smith  Barney  Futures  Management  Inc.  acts as the general  partner (the
"General  Partner") of the Partnership.  The  Partnership's  commodity broker is
Salomon Smith Barney Inc.  ("SSB").  SSB is an affiliate of the General Partner.
The  General  Partner is wholly  owned by Salomon  Smith  Barney  Holdings  Inc.
("SSBH"),  which is the sole owner of SSB. SSBH is a wholly owned  subsidiary of
Citigroup Inc. All trading  decisions are made for the Partnership by Campbell &
Company,  Inc.,  ("Campbell"),  Eagle Trading Systems, Inc. ("Eagle"),  Eckhardt
Trading  Company   ("Eckhardt")  and  Rabar  Market  Research,   Inc.  ("Rabar")
(collectively, the "Advisors").

         The accompanying financial statements are unaudited but, in the opinion
of management,  include all  adjustments  (consisting  only of normal  recurring
adjustments)  necessary for a fair presentation of the  Partnership's  financial
condition  at March 31,  1999 and the results of its  operations  for the period
from February 2, 1999  (commencement  of trading  operations) to March 31, 1999.
These  financial  statements  present the results of interim  periods and do not
include all disclosures normally provided in annual financial statements.  It is
suggested  that  these  financial  statements  be read in  conjunction  with the
financial  statements and notes included in the  Partnership's  annual report on
Form 10-K filed with the Securities  and Exchange  Commission for the year ended
December 31, 1998.



<PAGE>


         Due to the nature of commodity  trading,  the results of operations for
the interim periods presented should not be considered indicative of the results
that may be expected for the entire year.


2.      Net Asset Value Per Unit:

     Changes  in net asset  value per Unit for the  period  from June 15,  1998,
(date Partnership was organized) to March 31, 1999 was as follows:

                                        PERIOD FROM
                                       JUNE 15, 1998
                                     (DATE PARTNERSHIP
                                        WAS ORGANIZED)
                                            TO
                                       MARCH 31, 1999

Net realized and unrealized gains     $    0.81
Interest income                             5.67
Expenses                                  (26.00)
                                        ---------

Decrease for period                       (19.52)
                                        
Net Asset Value per Unit,
 Beginning of period                    1,000.00
                                        ---------
Net Asset Value per Unit,
 End of period                       $    980.48
                                        =========

Redemption Net Asset
 Value Per Unit                      $    999.49
                                        =========

     * For the purpose of a  redemption,  any remaining  deferred  liability for
reimbursement of offering and organization  expenses will not reduce  redemption
net asset value per unit. (see note 3)

3.     Offering and Organization Costs:

     Offering and organization  expenses of approximately  $700,000  relating to
the issuance and marketing of the  Partnership's  Units  offered were  initially
paid by SSB.  These costs have been  recorded as due to SSB in the  statement of
financial condition and as expense in the statement of operations for the period
ended March 31, 1999. These costs are being reimbursed to SSB by the Partnership
in 24 equal  monthly  installments  (together  with  interest  at the prime rate
quoted by the Chase Manhattan Bank).

     Based on this calculation, as of March 31, 1999, $50,407 of these costs are
currently  payable to SSB, of which the  Partnership  has reimbursed SSB $25,321
and $25,086 remains payable.

<PAGE>


     In addition,  the Partnership has recorded  interest expense of $8,454,  of
which the Partnership has paid SSB $4,013 and $4,441 remains payable.

     The  remaining  deferred  liability  for these costs due to SSB of $641,139
(exclusive of interest charges) will not reduce Net Asset Value per Unit for any
purpose (other than financial reporting),  including calculation of advisory and
brokerage fees and the redemption value of Units.

4.       Trading Activities:

     The  Partnership  was formed for the  purpose  of  trading  contracts  in a
variety of commodity interests,  including derivative financial  instruments and
derivative  commodity  instruments.  The  results of the  Partnership's  trading
activity  are  shown in the  statement  of income  and  expenses  and  partners'
capital.

     The  Customer   Agreement   between  the  Partnership  and  SSB  gives  the
Partnership the legal right to net unrealized gains and losses.

     All of the  commodity  interests  owned  by the  Partnership  are  held for
trading purposes. The fair value of these commodity interests, including options
thereon,  if  applicable,  at March 31, 1999 was  $843,690  and the average fair
value  during  the  period  from  February  2,  1999  (commencement  of  trading
operations) to March 31, 1999, based on monthly calculation, was $972,935.

5.       Financial Instrument Risk

     The Partnership is party to financial  instruments with  off-balance  sheet
risk,  including  derivative  financial  instruments  and  derivative  commodity
instruments,  in the normal course of its business.  These financial instruments
may  include  forwards,  futures  and  options,  whose  value is  based  upon an
underlying  asset,  index,  or reference  rate, and generally  represent  future
commitments  to exchange  currencies  or cash  flows,  to purchase or sell other
financial  instruments at specific terms at specified  future dates,  or, in the
case of derivative commodity instruments, to have a reasonable possibility to be
settled in cash, through physical delivery or with another financial instrument.
These  instruments  may be traded on an  exchange or  over-the-counter  ("OTC").
Exchange  traded  instruments are  standardized  and include futures and certain
option contracts.  OTC contracts are negotiated between  contracting parties and
include  forwards and certain options.  Each of these  instruments is subject to
various risks similar to those related to the underlying  financial  instruments
including  market and credit risk.  In general,  the risks  associated  with OTC
contracts are greater than those  associated  with exchange  traded  instruments
because of the greater risk of default by the counterparty to an OTC contract.

<PAGE>


         Market risk is the  potential for changes in the value of the financial
instruments traded by the Partnership due to market changes,  including interest
and foreign  exchange rate movements and  fluctuations  in commodity or security
prices.  Market risk is directly impacted by the volatility and liquidity in the
markets in which the related underlying assets are traded.

         Credit risk is the possibility that a loss may occur due to the failure
of a counterparty to perform  according to the terms of a contract.  Credit risk
with  respect to exchange  traded  instruments  is reduced to the extent that an
exchange or clearing  organization  acts as a counterparty to the  transactions.
The Partnership's risk of loss in the event of counterparty default is typically
limited to the amounts  recognized in the  statement of financial  condition and
not  represented  by the contract or notional  amounts of the  instruments.  The
Partnership has concentration  risk because the sole counterparty or broker with
respect to the Partnership's assets is SSB.

         The General  Partner  monitors  and  controls  the  Partnership's  risk
exposure  on a  daily  basis  through  financial,  credit  and  risk  management
monitoring systems and,  accordingly  believes that it has effective  procedures
for evaluating and limiting the credit and market risks to which the Partnership
is subject.  These monitoring systems allow the General Partner to statistically
analyze actual  trading  results with risk adjusted  performance  indicators and
correlation statistics. In addition,  on-line monitoring systems provide account
analysis  of  futures,   forwards  and  options  positions  by  sector,   margin
requirements, gain and loss transactions and collateral positions.

         The notional or  contractual  amounts of these  instruments,  while not
recorded in the financial  statements,  reflect the extent of the  Partnership's
involvement in these instruments.


<PAGE>



         At  March  31,  1999,  the  notional  or  contractual  amounts  of  the
Partnership's commitment to purchase and sell these instruments was $151,931,583
and  $104,627,636,  respectively,  as detailed below.  All of these  instruments
mature  within  one year of March 31,  1999.  However,  due to the nature of the
Partnership's business,  these instruments may not be held to maturity. At March
31, 1999, the fair value of the  Partnership's  derivatives,  including  options
thereon, if applicable, was $843,690, as detailed below.

                                         MARCH 31, 1999
                                   NOTIONAL OR CONTRACTUAL
                                    AMOUNT OF COMMITMENTS
                                TO PURCHASE       TO SELL       FAIR VALUE
Currencies:
- Exchange Traded Contracts   $  3,044,053   $ 14,258,518   $    226,028
- OTC Contracts                 16,498,926     36,698,735        154,420
Energy                           3,418,156           --          318,547
Grains                             380,212        285,888        (14,810)
Interest Rates U.S.              8,291,213     26,054,678        141,724
Interest Rates Non-U.S         112,680,363     18,461,834          3,609
Metals                           2,803,523      5,247,704       (110,721)
Softs                                 --          253,107         11,580
Indices                          4,815,137      3,367,172        113,313
                              ------------   ------------   ------------

Totals                        $151,931,583   $104,627,636   $    843,690
                              ============   ============   ============



<PAGE>



Item 2.       Management's Discussion and  Analysis of Financial Condition   and
              Results   of  Operations.
Liquidity and Capital Resources

         The Partnership  does not engage in the sale of goods or services.  Its
only assets are its equity in its commodity futures trading account,  consisting
of cash, net unrealized appreciation  (depreciation) on open futures and forward
contracts, commodity options, if applicable, and interest receivable. Because of
the  low  margin  deposits  normally  required  in  commodity  futures  trading,
relatively  small  price  movements  may  result  in  substantial  losses to the
Partnership.  While substantial losses could lead to a decrease in liquidity, no
such losses occurred during the period ended March 31, 1999.

         The Partnership's  capital consists of the capital contributions of the
partners as  increased  or  decreased  by gains or losses on  commodity  futures
trading,  expenses,  interest  income,  additions and  redemptions  of Units and
distributions of profits, if any.

         For the period  ended March 31,  1999,  Partnership  capital  decreased
1.95% from  $33,718,000  (proceeds from offering) to $33,059,748.  This decrease
was primarily  attributable to the initial expense of offering and  organization
costs of $700,000.

Risk of Computer System Failure (Year 2000 Issue)

       The  Year  2000  issue  is the  result  of  existing  computers  in  many
businesses  using only two digits to  identify a year in the date  field.  These
computers and programs,  often  referred to as  "information  technology,"  were
designed and developed without  considering the impact of the upcoming change in
the century. If not corrected,  many computer  applications could fail or create
erroneous  results at the Year 2000. Such systems and processes are dependent on
correctly identifying dates in the next century.

       The General Partner  administers the business of the Partnership  through
various  systems and  processes  maintained  by SSBH and SSB. In  addition,  the
operation of the Partnership is dependent on the capability of the Partnership's
Advisors,  the brokers and exchanges through which the Advisors trade, and other
third  parties to prepare  adequately  for the Year 2000 impact on their systems
and processes.  The Partnership itself has no systems or information  technology
applications relevant to its operations.

<PAGE>


       The General Partner,  SSB, SSBH and their parent  organization  Citigroup
Inc. have undertaken a comprehensive,  firm-wide evaluation of both internal and
external  systems  (systems  related to third parties) to determine the specific
modifications  needed to  prepare  for the year  2000.  The  combined  Year 2000
program in SSB is  expected to cost  approximately  $140  million  over the four
years from 1996 through  1999,  and involve over 450 people at the peak staffing
level.  SSB expects to complete all  compliance and  certification  work by June
1999.  At this time,  over 95% of SSBH systems  have  completed  the  correction
process  and are Year 2000  compliant.  Over 73% of the systems  have  completed
certification testing. The Year 2000 project at SSBH remains on schedule.

       The systems and components supporting the General Partner's business that
require  remediation  have been identified and  modifications  have been made to
bring them into Year 2000 compliance.  Testing of these systems was completed in
the fourth quarter of 1998. Final testing and  certification  are expected to be
completed by the end of the first quarter of 1999.

       This  expenditure and the General  Partner's  resources  dedicated to the
preparation  for Year  2000 do not and will not have a  material  impact  on the
operation or results of the Partnership.

       The General  Partner  has  requested  and  received  statements  from the
Advisors that each has undertaken its own  evaluation and  remediation  plans to
identify any of its computer systems that are Year 2000 vulnerable. Each Advisor
has  confirmed  it is taking  immediate  actions  to  remedy  those  systems  as
necessary. The General Partner will continue to inquire into and to confirm each
Advisor's readiness for Year 2000.

       The most likely and most significant  risk to the Partnership  associated
with the lack of Year 2000  readiness  is the failure of outside  organizations,
including the commodities exchanges, clearing organizations,  or regulators with
which the  Partnership  interacts to resolve  their Year 2000 issues in a timely
manner.  This risk could  involve the  inability to  determine  the value of the
Partnership  at some  point  in time  and  would  make  effecting  purchases  or
redemptions  of Units in the  Partnership  infeasible  until such  valuation was
determinable.

       SSB has successfully participated in industry-wide testing including: The
Streetwide Beta Testing organized by the Securities Industry  Association (SIA),
a government securities clearing test with the Federal Reserve Bank of New York,
The  Depository  Trust Company,  and The Bank of New York, and Futures  Industry
Association  participants test. The firm is also participating in the streetwide
testing which commenced in March 1999.

       It is possible  that  problems may occur that would  require some time to
repair. Moreover, it is possible that problems will occur outside SSBH for which
SSBH could  experience  a  secondary  effect.  Consequently,  SSBH is  preparing
comprehensive,  written  contingency plans so that alternative  procedures and a
framework for critical decisions are defined before any potential crisis occurs.

<PAGE>

     The goal of Year 2000 contingency planning is a set of alternate procedures
to be used in the event of a critical  system failure or a failure by a supplier
or  counterparty.  Planning work was completed in December  1998, and testing of
alternative procedures will be conducted in the first half of 1999.


Results of Operations

         During  the  period  from  February  2, 1999  (commencement  of trading
operations)  to March 31,  1999,  the  Partnership's  net  asset  value per Unit
decreased  1.95% from $1,000.00 to $980.48.  The  Partnership  experienced a net
trading gain before  brokerage  commissions and related fees in the period ended
March 31, 1999 of $358,204.  Gains were primarily attributable to the trading of
commodity  futures in currencies,  softs U.S. interest rates and energy and were
partially  offset by losses in indices,  grains,  U.S. interes rates and metals.
The  Partnership  commenced  trading  operations  on February 2, 1999,  and as a
result, comparative information is not available.

         Commodity futures markets are highly volatile. Broad price fluctuations
and rapid inflation increase the risks involved in commodity  trading,  but also
increase the possibility of profit. The profitability of the Partnership depends
on the  existence  of major  price  trends and the  ability of the  Advisors  to
identify  correctly  those price trends.  Price trends are  influenced by, among
other things, changing supply and demand relationships,  weather,  governmental,
agricultural,   commercial  and  trade  programs  and  policies,   national  and
international  political and economic  events and changes in interest  rates. To
the extent that market trends exist and the Advisors are able to identify  them,
the Partnership expects to increase capital through operations.

         Interest income on 80% of the Partnership's  daily equity maintained in
cash was earned on the monthly average 30-day U.S. Treasury bill rate determined
weekly by SSB based on the  non-competitive  yield on three month U.S.  Treasury
bills maturing in 30 days.

         Brokerage  commissions  are calculated on the  Partnership's  net asset
value as of the last day of each month and, therefore, vary according to trading
performance, additionsand redemptions.

         Management fees are calculated on the portion of the  Partnership's net
asset value  allocated to each  Advisor at the end of the month and,  therefore,
are affected by trading performance additions and redemptions

         Incentive fees are based on the new trading  profits  generated by each
Advisor as defined in the  advisory  agreements  between  the  Partnership,  the
General Partner and each Advisor.


<PAGE>




Item 3.  Quantitative and Qualitative Disclosures of Market Risk
              Introduction

         The Partnership is a speculative  commodity pool. The market  sensitive
instruments held by it are acquired for speculative trading purposes, and all or
substantially all of the Partnership's assets are subject to the risk of trading
loss. Unlike an operating company,  the risk of market sensitive  instruments is
integral, not incidental, to the Partnership's main line of business.

         Market movements result in frequent changes in the fair market value of
the  Partnership's  open positions and,  consequently,  in its earnings and cash
flow. The Partnership's  market risk is influenced by a wide variety of factors,
including the level and volatility of interest  rates,  exchange  rates,  equity
price  levels,  the market value of financial  instruments  and  contracts,  the
diversification effects among the Partnership's open positions and the liquidity
of the markets in which it trades.

         The  Partnership  rapidly  acquires and liquidates  both long and short
positions in a wide range of different markets. Consequently, it is not possible
to predict how a particular future market scenario will affect performance,  and
the Partnership's  past performance is not necessarily  indicative of its future
results.

         Value at Risk is a measure of the maximum amount which the  Partnership
could  reasonably  be expected to lose in a given market  sector.  However,  the
inherent uncertainty of the Partnership's speculative trading and the recurrence
in the markets  traded by the  Partnership  of market  movements  far  exceeding
expectations could result in actual trading or non-trading losses far beyond the
indicated Value at Risk or the Partnership's  experience to date (i.e., "risk of
ruin").  In  light  of the  foregoing  as well as the  risks  and  uncertainties
intrinsic  to all  future  projections,  the  inclusion  of  the  quantification
included in this section should not be considered to constitute any assurance or
representation  that the  Partnership's  losses  in any  market  sector  will be
limited to Value at Risk or by the  Partnership's  attempts to manage its market
risk.

Quantifying the Partnership's Trading Value at Risk

         The following  quantitative  disclosures  regarding  the  Partnership's
market risk exposures contain "forward-looking statements" within the meaning of
the safe harbor from civil liability provided for such statements by the Private
Securities  Litigation  Reform  Act of 1995  (set  forth in  Section  27A of the
Securities Act 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 (such as the terms of  particular  contracts  and the number of market risk
sensitive instruments held during or at the end of the reporting period).

<PAGE>


         The Partnership's risk exposure in the various market sectors traded by
the  Advisors  is  quantified  below in  terms  of  Value  at  Risk.  Due to the
Partnership's  mark-to-market  accounting,  any  loss in the  fair  value of the
Partnership's open positions is directly reflected in the Partnership's earnings
(realized or unrealized).

         Exchange   maintenance  margin  requirements  have  been  used  by  the
Partnership as the measure of its Value at Risk. Maintenance margin requirements
are set by exchanges to equal or exceed the maximum losses  reasonably  expected
to be incurred in the fair value of any given contract in 95%-99% of any one-day
intervals.  The  maintenance  margin  levels  are  established  by  dealers  and
exchanges  using  historical  price  studies as well as an assessment of current
market  volatility  (including the implied  volatility of the options on a given
futures contract) and economic fundamentals to provide a probabilistic  estimate
of the maximum expected near-term one-day price fluctuation.  Maintenance margin
has been used rather than the more generally  available initial margin,  because
initial margin  includes a credit risk component  which is not relevant to Value
at Risk.

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

         The fair value of the Partnership's  futures and forward positions does
not have any  optionality  component.  However,  certain of the  Advisors  trade
commodity options. The Value at Risk associated with options is reflected in the
following  table  as the  margin  requirement  attributable  to  the  instrument
underlying each option. Where this instrument is a futures contract, the futures
margin,   and   where   this   instrument   is   a   physical   commodity,   the
futures-equivalent  maintenance  margin  has  been  used.  This  calculation  is
conservative in that it assumes that the fair value of an option will decline by
the same  amount as the fair value of the  underlying  instrument,  whereas,  in
fact,  the fair values of the options  traded by the  Partnership  in almost all
cases fluctuate to a lesser extent than those of the underlying instruments.

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

<PAGE>


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

         The following table indicates the trading Value at Risk associated with
the  Partnership's  open positions by market  category as of March 31, 1999. All
open position  trading risk exposures of the  Partnership  have been included in
calculating the figures set forth below. As of March 31, 1999, the Partnership's
total capitalization was approximately $33,059,748.

                              March 31, 1999

                                        % of Total
Market Sector         Value at Risk  Capitalization

Currencies               $1,212,639      3.60%
Energy                      284,400      0.84%
Grains                       20,360      0.06%
Interest rate U.S.          241,650      0.72%
Interest rate Non-U.S       506,526      1.50%
Metals                      217,850      0.65%
Softs                        16,500      0.05%
Indices                     460,614      1.37%
                         ----------      -----

Total                    $2,960,539      8.79%
                         ==========     ======


         Material Limitations on Value at Risk as an Assessment of Market Risk

         The face value of the market sector instruments held by the Partnership
is typically many times the applicable margin requirement  (margin  requirements
generally  range  between  2% and 15% of  contract  face  value)  as well as the
capitalization  of the  Partnership.  The  magnitude of the  Partnership's  open
positions  creates a "risk of ruin" not typically found in most other investment
vehicles.  Because of the size of its  positions,  certain  market  conditions -
unusual,  but  historically  recurring  from  time  to time -  could  cause  the
Partnership  to incur severe  losses over a short period of time.  The foregoing
Value at Risk table - as well as the past  performance of the Partnership - give
no indication of this "risk of ruin."






<PAGE>


Non-Trading Risk

         The  Partnership  has  non-trading  market  risk  on its  foreign  cash
balances not needed for margin.  However,  these balances (as well as any market
risk they represent) are immaterial.

         Materiality  as used in this  section,  "Qualitative  and  Quantitative
Disclosures About Market Risk," is based on an assessment of reasonably possible
market movements and the potential losses caused by such movements,  taking into
account the leverage,  optionality and multiplier  features of the Partnership's
market sensitive instruments.

Qualitative Disclosures Regarding Primary Trading Risk Exposures

         The  following  qualitative  disclosures  regarding  the  Partnership's
market risk exposures - except for (i) those  disclosures that are statements of
historical fact and (ii) 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 the  General  Partner  and the  Advisors  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 expropriations,  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 management  strategies of the Partnership.
There can be no assurance that the Partnership's  current market exposure and/or
risk  management  strategies  will  not  change  materially  or  that  any  such
strategies  will be effective in either the short-or long- term.  Investors must
be  prepared  to  lose  all or  substantially  all of  their  investment  in the
Partnership

         The  following   were  the  primary   trading  risk  exposures  of  the
Partnership as of March 31, 1999, by market sector.

         Interest Rates.  Interest rate risk is the principal market exposure of
the  Partnership.  Interest  rate  movements  directly  affect  the price of the
futures  positions held by the Partnership and indirectly the value of its stock
index and currency positions.  Interest rate movements in one country as well as
relative  interest  rate  movements  between  countries  materially  impact  the
Partnership's profitability. The Partnership's primary interest rate exposure is
to interest rate  fluctuations in the United States and the other G-7 countries.
However,  the Partnership also takes futures positions on the government debt of
smaller  nations - e.g.,  Australia.  The General Partner  anticipates  that G-7
interest rates will remain the primary market  exposure of the  Partnership  for
the foreseeable future. The changes in interest rates which have the most effect
on the  Partnership are changes in long-term,  as opposed to short-term,  rates.
Consequently,  even a material  change in  short-term  rates  would have  little
effect on the Partnership were the medium- to long-term rates to remain steady.

<PAGE>


         Currencies.  The  Partnership's  currency  exposure is to exchange rate
fluctuations,  primarily  fluctuations  which  disrupt  the  historical  pricing
relationships   between   different   currencies  and  currency   pairs.   These
fluctuations  are  influenced  by interest rate changes as well as political and
general  economic  conditions.  The General Partner does not anticipate that the
risk profile of the Partnership's  currency sector will change  significantly in
the future,  although it is difficult at this point to predict the effect of the
introduction  of the Euro on the  Advisors'  currency  trading  strategies.  The
currency trading Value at Risk figure includes foreign margin amounts  converted
into U.S.  dollars with an  incremental  adjustment to reflect the exchange rate
risk inherent to the  dollar-based  Partnership in expressing Value at Risk in a
functional currency other than dollars.

         Stock Indices.  The Partnership's  primary equity exposure is to equity
price  risk  in the  G-7  countries.  The  stock  index  futures  traded  by the
Partnership  are by law  limited  to futures on  broadly  based  indices.  As of
December 31, 1998,  the  Partnership's  primary  exposures  were in the S&P 500,
Financial  Times  (England),  Nikkei  (Japan)  and Hang Seng (Hong  Kong)  stock
indices.  The General Partner  anticipates  little,  if any,  trading in non-G-7
stock indices. The Partnership is primarily exposed to the risk of adverse price
trends or static  markets in the major  U.S.,  European  and  Japanese  indices.
(Static markets would not cause major market changes but would make it difficult
for the Partnership to avoid being "whipsawed" into numerous small losses.)

         Metals.   The  Partnership's   primary  metal  market  exposure  is  to
fluctuations in the price of gold and silver.  Although  certain of the Advisors
will from time to time  trade base  metals  such as  aluminum  and  copper,  the
principal  market  exposures of the Partnership  have  consistently  been in the
precious  metals,   gold  and  silver.  The  Advisors'  gold  trading  has  been
increasingly  limited due to the long-lasting and mainly non-volatile decline in
the  price of gold  over the last  10-15  years.  However,  silver  prices  have
remained  volatile  over this period,  and the  Advisors  have from time to time
taken  substantial  positions as they have  perceived  market  opportunities  to
develop.  The General Partner  anticipates  that gold and silver will remain the
primary metals market exposure for the Partnership.

<PAGE>


     Commodities.   The  Partnership's   primary  commodities   exposure  is  to
agricultural  price  movements  which are often  directly  affected by severe or
unexpected weather conditions. Coffee, Cocoa, Cotton and Sugar accounted for the
substantial bulk of the Partnership's commodity exposure as of March 31, 1999.

     Energy. The Partnership's  primary energy market exposure is to gas and oil
price movements, often resulting from political developments in the Middle East.
Oil prices are  currently  depressed,  but they can be volatile and  substantial
profits and losses have been and are expected to continue to be  experienced  in
this market.

Qualitative Disclosures Regarding Non-Trading Risk Exposure

         The  following  were  the  only   non-trading  risk  exposures  of  the
Partnership as of March 31,1999.

     Foreign  Currency  Balances.  The  Partnership's  primary foreign  currency
balances are in Japanese yen,  German marks,  British  pounds and French francs.
The  Advisor  regularly  converts  foreign  currency  balances  to dollars in an
attempt to control the Partnership's non-trading risk.

         Qualitative Disclosures Regarding Means of Managing Risk Exposure.

     The  General  Partner  monitors  the  Partnership's   performance  and  the
concentration of its open positions,  and consults with the Advisors  concerning
the Partnership's overall risk profile. If the General Partner felt it necessary
to do so, the General Partner could require certain of the Advisors to close out
individual  positions  as  well  as  enter  programs  traded  on  behalf  of the
Partnership. However, any such intervention would be a highly unusual event. The
General  Partner  primarily  relies on the Advisors'  own risk control  policies
while maintaining a general  supervisory  overview of the  Partnership's  market
risk exposures.

     Each Advisor applies its own risk management  policies to its trading.  The
Advisors often follow  diversification  guidelines,  margin limits and stop loss
points to exit a  position.  The  Advisors'  research of risk  management  often
suggests ongoing modifications to their trading programs.

     As part of the General  Partner's  risk  management,  the  General  Partner
periodically  meets with the Advisors to discuss  their risk  management  and to
look for any material  changes to the  Advisors'  portfolio  balance and trading
techniques.  The  Advisors  are  required to notify the  General  Partner of any
material changes to their programs.


<PAGE>


                            PART II OTHER INFORMATION

Item 1.   Legal  Proceedings 
 
               For  information  concerning  a purported  class  action  against
          numerous  broker-dealers  including  Salomon  Smith  Barney,  see  the
          description that appears in the sixth paragraph under the caption Item
          3. "Legal  Proceedings"  of the Form 10-K for the year ending December
          31, 1998. SSBH has filed a motion to dismiss the amended complaint.

Item 2.   Changes in Securities and Use of Proceeds - None

Item 3.   Defaults Upon Senior Securities - None

Item 4.   Submission of Matters to a Vote of Security Holders - None

Item 5.   Other Information - None

Item 6.   (a) Exhibits - None

          (b) Reports on Form 8-K - None



<PAGE>


                                   SIGNATURES

           Pursuant  to  the  requirements  of  Section  13 or  15  (d)  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.


SALOMON SMITH BARNEY GLOBAL DIVERSIFIED FUTURES FUND L.P.


By:        Smith Barney Futures Management Inc.
           (General Partner)



By:        /s/ David J. Vogel
           David J. Vogel, President



Date:     5/14/99

           Pursuant to the requirements of the Securities  Exchange Act of 1934,
this  report has been  signed  below by the  following  persons on behalf of the
registrant and in the capacities and on the dates indicated.

By:        Smith Barney Futures Management Inc.
           (General Partner)



By:        /s/ David J. Vogel
           David J. Vogel, President


Date:     5/14/99


By         /s/ Daniel A. Dantuono
           Daniel A. Dantuono
           Chief Financial Officer and
           Director

Date:     5/14/99


<PAGE>