UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


WASHINGTON,
D.C. 20549




FORM
10-Q




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




For the
quarterly period ended June 30,
2008




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:    000-53043




Man-AHL Diversified I
L.P.





(Exact
name of registrant as specified in charter)








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




c/o
      Man Investments (USA) Corp.123
      North Wacker Drive28th
      FloorChicago, Illinois
              
              60606(Address
      of principal executive offices)
              
              (Zip
      Code)




(312)
881-6800


(Registrant’s
telephone number, including area code)




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




Yes
[X]    No [  ]




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








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
















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




Yes
[  ]    No [X]







PART I - FINANCIAL
INFORMATION








ITEM
1.                      Financial
Statements




Man-AHL
Diversified I, L.P.


Financial
Statements





STATEMENTS
OF FINANCIAL CONDITION (a)


STATEMENTS
OF OPERATIONS (b)


STATEMENTS
OF CHANGES IN PARTNERS’ CAPITAL (c)


STATEMENTS
OF CASH FLOWS (b)


NOTES TO
THE FINANCIAL STATEMENTS (UNAUDITED)





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


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


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


















































2




MAN-AHL
      DIVERSIFIED I L.P.(A
      Delaware Limited Partnership)STATEMENTS
      OF FINANCIAL CONDITION
  June 30, 2008
                (unaudited)
              
              
              December 31, 2007ASSETSCASH
              
              $
              25,125,202
              
              
              $
              4,225,671INVESTMENT
      IN MAN-AHL DIVERSIFIEDTRADING
      COMPANY L.P.
              
              
              120,904,873
              
              
              
              59,555,095DUE
      FROM MAN-AHL DIVERSIFIEDTRADING
      COMPANY L.P.
              
              
              2,663,041
              
              
              
              889,224OTHER
      ASSETS
              
              
              295
              
              
              
              771TOTAL
              
              $
              148,693,411
              
              
              $
              64,670,761LIABILITIES
      AND PARTNERS’ CAPITALLIABILITIES:Redemptions
      payable
              
              $
              1,814,631
              
              
              $
              605,316Subscriptions
      received in advance
              
              
              25,125,202
              
              
              
              4,225,671Management
      fees payable
              
              
              308,657
              
              
              
              150,779Incentive
      fees payable
              
              
              434,529
              
              
              
              -Brokerage
      commissions payable
              
              
              20,671
              
              
              
              67,505Accrued
      expenses
              
              
              84,553
              
              
              
              66,100Total
      liabilities
              
              
              27,788,243
              
              
              
              5,115,371PARTNERS’
      CAPITAL:General
      Partner (186 unit equivalents outstandingat
      June 30, 2008 and December 31, 2007, respectively)
              
              
              631,976
              
              
              
              539,353Limited
      Partners (35,469 and 20,393 units outstandingat
      June 30, 2008 and December 31, 2007, respectively)
              
              
              120,273,192
              
              
              
              59,016,037Total
      partners’ capital
              
              
              120,905,168
              
              
              
              59,555,390TOTAL
              
              $
              148,693,411
              
              
              $
              64,670,761NET
      ASSET VALUE PER OUTSTANDING UNIT OFPARTNERSHIP
      INTEREST
              
              $
              3,390.91
              
              
              $
              2,893.93See
      accompanying notes and attached financial statementsof
      Man-AHL Diversified Trading Company L.P.
   3








MAN-AHL
      DIVERSIFIED I L.P.(A
      Delaware Limited Partnership)STATEMENTS
      OF OPERATIONS (UNAUDITED)
  For
      the three
              
              
              For
      the three
              
              
              For
      the six
              
              
              For
      the sixmonths
      ended
              
              
              months
      ended
              
              
              months
      ended
              
              
              months
      endedJune 30, 2008
              
              
              June 30, 2007
              
              
              June 30, 2008
              
              
              June 30, 2007NET
      INVESTMENT INCOMEALLOCATED
      FROM MAN-AHLDIVERSIFIED
      TRADING COMPANY L.P. -Interest
      income
              
              $
              574,809
              
              
              $
              411,658
              
              
              $
              1,088,781
              
              
              $
              751,321PARTNERSHIP
      EXPENSES:Brokerage
      commissions
              
              
              228,214
              
              
              
              348,497
              
              
              
              624,814
              
              
              
              653,967Management
      fees
              
              
              820,725
              
              
              
              318,604
              
              
              
              1,416,838
              
              
              
              573,364Incentive
      fees
              
              
              943,253
              
              
              
              621,690
              
              
              
              3,211,277
              
              
              
              741,945Other
      expenses
              
              
              90,382
              
              
              
              17,211
              
              
              
              124,695
              
              
              
              31,225Total
      expenses
              
              
              2,082,574
              
              
              
              1,306,002
              
              
              
              5,377,624
              
              
              
              2,000,501Net
      investment loss
              
              
              (1,507,765
              )
              
              
              (894,344
              )
              
              
              (4,288,843
              )
              
              
              (1,249,180
              )REALIZED
      AND UNREALIZED GAINS(LOSSES)
      ON TRADING ACTIVITIESALLOCATED
      FROM MAN-AHLDIVERSIFIED
      TRADING COMPANY L.P.:Net
      realized trading gainson
      closed contracts
              
              
              5,447,631
              
              
              
              5,753,083
              
              
              
              18,726,225
              
              
              
              4,302,136Net
      change in unrealized trading gains(losses)
      on open contracts
              
              
              (166,855
              )
              
              
              484,875
              
              
              
              (1,566,779
              )
              
              
              64,095Net
      gains on trading activities allocatedfrom
      Man-AHL DiversifiedTrading
      Company L.P.
              
              
              5,280,776
              
              
              
              6,237,958
              
              
              
              17,159,446
              
              
              
              4,366,231NET
      INCOME
              
              $
              3,773,011
              
              
              $
              5,343,614
              
              
              $
              12,870,603
              
              
              $
              3,117,051NET
      INCOME PER UNITOF
      PARTNERSHIP INTEREST
              
              $
              109.50
              
              
              $
              338.93
              
              
              $
              496.98
              
              
              $
              186.65See
      accompanying notes and attached financial statementsof
      Man-AHL Diversified Trading Company L.P.
   4





MAN-AHL
      DIVERSIFIED I L.P.(A
      Delaware Limited Partnership)STATEMENTS
      OF CHANGES IN PARTNERS’ CAPITAL (UNAUDITED)FOR
      THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007
    Limited
              
              
              GeneralPartners
              
              
              Partner
              
              
              TotalPARTNERS’
      CAPITAL — December 31, 2006
              
              $
              28,997,055
              
              
              $
              476,310
              
              
              $
              29,473,365Issuance
      of 5,656 units of limited partnership interest
              
              
              14,338,661
              
              
              
              -
              
              
              
              14,338,661Redemptions
      of 984 units of limited partnership interest
              
              
              (2,490,159
              )
              
              
              -
              
              
              
              (2,490,159
              )Net
      income
              
              
              3,082,264
              
              
              
              34,787
              
              
              
              3,117,051PARTNERS’
      CAPITAL — June 30, 2007
              
              $
              43,927,821
              
              
              $
              511,097
              
              
              $
              44,438,918PARTNERS’
      CAPITAL — December 31, 2007
              
              $
              59,016,037
              
              
              $
              539,353
              
              
              $
              59,555,390Issuance
      of 17,429 units of limited partnership interest
              
              
              56,130,636
              
              
              
              -
              
              
              
              56,130,636Redemption
      of 2,353 units of limited partnership interest
              
              
              (7,651,461
              )
              
              
              -
              
              
              
              (7,651,461
              )Net
      income
              
              
              12,777,980
              
              
              
              92,623
              
              
              
              12,870,603PARTNERS’
      CAPITAL — June 30, 2008
              
              $
              120,273,192
              
              
              $
              631,976
              
              
              $
              120,905,168See
      accompanying notes and attached financial statementsof
      Man-AHL Diversified Trading Company L.P.
   5





MAN-AHL
      DIVERSIFIED I L.P.(A
      Delaware Limited Partnership)STATEMENTS
      OF CASH FLOWS (UNAUDITED)
  For
      the three
              
              
              For
      the three
              
              
              For
      the six
              
              
              For
      the sixmonths
      ended
              
              
              months
      ended
              
              
              months
      ended
              
              
              months
      endedJune 30, 2008
              
              
              June 30, 2007
              
              
              June 30, 2008
              
              
              June 30, 2007CASH
      FLOWS FROM OPERATINGACTIVITIES:Net
      income
              
              $
              3,773,011
              
              
              $
              5,343,614
              
              
              $
              12,870,603
              
              
              $
              3,117,051Adjustments
      to reconcile net incometo
      net cash used in operating activities:Purchases
      of investment in Man-AHLDiversified
      Trading Company L.P.
              
              
              (32,013,357
              )
              
              
              (6,212,353
              )
              
              
              (53,710,438
              )
              
              
              (14,338,660
              )Sales
      of investment in Man-AHLDiversified
      Trading Company L.P.
              
              
              4,767,986
              
              
              
              2,737,057
              
              
              
              8,835,070
              
              
              
              4,143,136Net
      change in appreciation of investmentin
      Man-AHL DiversifiedTrading
      Company L.P.
              
              
              (5,855,585
              )
              
              
              (6,649,616
              )
              
              
              (18,248,227
              )
              
              
              (5,117,552
              )Changes
      in assets and liabilities:Other
      assets
              
              
              -
              
              
              
              (340
              )
              
              
              476
              
              
              
              (340
              )Management
      fees payable
              
              
              82,923
              
              
              
              25,298
              
              
              
              157,878
              
              
              
              38,237Incentive
      fees payable
              
              
              329,298
              
              
              
              380,760
              
              
              
              434,529
              
              
              
              380,760Brokerage
      commissions payable
              
              
              (106,886
              )
              
              
              23,053
              
              
              
              (46,834
              )
              
              
              29,053Accrued
      expenses
              
              
              38,291
              
              
              
              (16,734
              )
              
              
              18,453
              
              
              
              (20,817
              )Net
      cash used in operating activities
              
              
              (28,984,319
              )
              
              
              (4,369,261
              )
              
              
              (49,688,490
              )
              
              
              (11,769,132
              )CASH
      FLOWS FROM FINANCINGACTIVITIES:Proceeds
      from subscriptions
              
              
              48,181,788
              
              
              
              8,295,096
              
              
              
              74,609,969
              
              
              
              17,293,228Payments
      on redemptions
              
              
              (3,029,038
              )
              
              
              (1,843,094
              )
              
              
              (4,021,948
              )
              
              
              (2,579,928
              )Net
      cash provided by financing activities
              
              
              45,152,750
              
              
              
              6,452,002
              
              
              
              70,588,021
              
              
              
              14,713,300NET
      INCREASE IN CASH
              
              
              16,168,431
              
              
              
              2,082,741
              
              
              
              20,899,531
              
              
              
              2,944,168CASH
      — Beginning of period
              
              
              8,956,771
              
              
              
              2,574,059
              
              
              
              4,225,671
              
              
              
              1,712,632CASH
      — End of period
              
              $
              25,125,202
              
              
              $
              4,656,800
              
              
              $
              25,125,202
              
              
              $
              4,656,800SUPLEMENTAL
      DISCLOSURE OFNON-CASH
      TRANSACTIONS:Non-cash
      contributions of partners' capital
              
              $
              1,560,375
              
              
              $
              -
              
              
              $
              2,420,198
              
              
              $
              -Non-cash
      redemptions of partners' capital
              
              $
              (1,560,375
              )
              
              $
              -
              
              
              $
              (2,420,198
              )
              
              $
              -See
      accompanying notes and attached financialstatements
      of Man-AHL DiversifiedTrading
      Company L.P.






6




Notes
to Financial Statements (unaudited)




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








1.
            ORGANIZATION
      OF THE PARTNERSHIP




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




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




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









2.
            SIGNIFICANT
      ACCOUNTING POLICIES




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




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




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




7




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




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




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




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




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




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




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




Use of Estimates — The preparation of financial
statements in conformity with accounting principles generally accepted in the
United States of America requires the General Partner to make estimates and
assumptions that affect the reported amounts of assets and liabilities (and
disclosure of contingent assets and liabilities) at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.









3.
            LIMITED
      PARTNERSHIP AGREEMENT




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




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




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




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




8


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







4.
            EXPENSES




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




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




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









5.
            DERIVATIVE
      FINANCIAL INSTRUMENTS




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




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





6.
            FINANCIAL
      GUARANTEES




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







7.
            RECENT
      ACCOUNTING PRONOUNCEMENTS




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








9








8.
            FAIR
      VALUE MEASUREMENTS





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





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


























9.
            SUBSEQUENT
      EVENT




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










10








Man-AHL
Diversified Trading Company L.P.


Financial
Statements





STATEMENTS
OF FINANCIAL CONDITION (a)


STATEMENTS
OF OPERATIONS (b)


STATEMENTS
OF CHANGES IN PARTNERS’ CAPITAL (c)


STATEMENTS
OF CASH FLOWS (b)


NOTES TO
THE FINANCIAL STATEMENTS (UNAUDITED)





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


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


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















































11




MAN-AHL
      DIVERSIFIED TRADING COMPANY L.P.(A
      Delaware Limited Partnership)STATEMENTS
      OF FINANCIAL CONDITION
  June 30, 2008(unaudited)
              
              
              December 31, 2007ASSETSEquity
      in commodity futures and forwardstrading
      accounts:Net
      unrealized trading gains on open futures contracts
              
              $
              4,942,327
              
              
              $
              5,247,868Net
      unrealized trading gains (losses) on open forward
contracts
              
              
              (740,181
              )
              
              
              2,411,929Due
      from broker
              
              
              41,734,969
              
              
              
              96,297,51345,937,115
              
              
              
              103,957,310Cash
      and cash equivalents
              
              
              336,814,010
              
              
              
              158,733,582Interest
      receivable
              
              
              84,512
              
              
              
              148,527TOTAL
              
              $
              382,835,637
              
              
              $
              262,839,419LIABILITIES
      AND PARTNERS’ CAPITALLIABILITIES
      — Redemptions payable
              
              $
              6,357,068
              
              
              $
              2,629,598PARTNERS’
      CAPITAL:General
      Partner
              
              
              -
              
              
              
              -Limited
      Partners (40,857 and 35,195 units outstandingat
      June 30, 2008 and December 31, 2007, respectively)
              
              
              376,478,569
              
              
              
              260,209,821Total
      partners’ capital
              
              
              376,478,569
              
              
              
              260,209,821TOTAL
              
              $
              382,835,637
              
              
              $
              262,839,419NET
      ASSET VALUE PER OUTSTANDING UNIT OFPARTNERSHIP
      INTEREST
              
              $
              9,214.62
              
              
              $
              7,393.28See
      notes to financial statements.






12





MAN-AHL
      DIVERSIFIED TRADING COMPANY L.P.(A
      Delaware Limited Partnership)STATEMENTS
      OF OPERATIONS (UNAUDITED)
  For
      the three
              
              
              For
      the three
              
              
              For
      the six
              
              
              For
      the sixmonths
      ended
              
              
              months
      ended
              
              
              months
      ended
              
              
              months
      endedJune 30, 2008
              
              
              June 30, 2007
              
              
              June 30, 2008
              
              
              June 30, 2007NET
      INVESTMENT INCOME:Interest
      income
              
              $
              1,921,985
              
              
              $
              2,215,267
              
              
              $
              3,974,202
              
              
              $
              4,298,527NET
      REALIZED AND UNREALIZEDGAINS
      (LOSSES) ON TRADINGACTIVITIES:Net
      realized trading gains onclosed
      contracts
              
              
              17,480,365
              
              
              
              30,827,936
              
              
              
              68,991,602
              
              
              
              23,497,680Net
      change in unrealized tradinggains
      (losses) on open contracts
              
              
              (299,587
              )
              
              
              2,861,236
              
              
              
              (3,457,651
              )
              
              
              (501,115
              )NET
      GAIN ON TRADINGACTIVITIES
              
              
              17,180,778
              
              
              
              33,689,172
              
              
              
              65,533,951
              
              
              
              22,996,565NET
      INCOME
              
              $
              19,102,763
              
              
              $
              35,904,439
              
              
              $
              69,508,153
              
              
              $
              27,295,092NET
      INCOME FOR A UNIT OFPARTNERSHIP
      INTEREST
              
              $
              463.27
              
              
              $
              1,004.40
              
              
              $
              1,821.34
              
              
              $
              766.49See
      notes to financial statements.






13




MAN-AHL
      DIVERSIFIED TRADING COMPANY L.P.(A
      Delaware Limited Partnership)STATEMENTS
      OF CHANGES IN PARTNERS’ CAPITAL (UNAUDITED)FOR
      THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007
  Limited
              
              
              GeneralPartners
              
              
              Partner
              
              
              TotalPARTNERS’
      CAPITAL — December 31, 2006
              
              $
              203,710,443
              
              
              $
              -
              
              
              $
              203,710,443Issuance
      of 4,880 units of limitedpartnership
      interest
              
              
              29,365,860
              
              
              
              -
              
              
              
              29,365,860Redemption
      of 4,889 units of limitedpartnership
      interest
              
              
              (30,445,660
              )
              
              
              -
              
              
              
              (30,445,660
              )Net
      income
              
              
              27,295,092
              
              
              
              -
              
              
              
              27,295,092PARTNERS’
      CAPITAL — June 30, 2007
              
              $
              229,925,735
              
              
              $
              -
              
              
              $
              229,925,735PARTNERS’
      CAPITAL — December 31, 2007
              
              $
              260,209,821
              
              
              $
              -
              
              
              $
              260,209,821Issuance
      of 11,972 units of limited partnership interest
              
              
              101,649,918
              
              
              
              -
              
              
              
              101,649,918Redemption
      of 6,310 units of limitedpartnership
      interest
              
              
              (54,889,323
              )
              
              
              -
              
              
              
              (54,889,323
              )Net
      income
              
              
              69,508,153
              
              
              
              -
              
              
              
              69,508,153PARTNERS’
      CAPITAL — June 30, 2008
              
              $
              376,478,569
              
              
              $
              -
              
              
              $
              376,478,569See
      notes to financial statements.






14




MAN-AHL
      DIVERSIFIED TRADING COMPANY L.P.(A
      Delaware Limited Partnership)STATEMENTS
      OF CASH FLOWS (UNAUDITED)
  For
      the three
              
              
              For
      the three
              
              
              For
      the six
              
              
              For
      the sixmonths
      ended
              
              
              months
      ended
              
              
              months
      ended
              
              
              months
      endedJune 30, 2008
              
              
              June 30, 2007
              
              
              June 30, 2008
              
              
              June 30, 2007CASH
      FLOWS FROM OPERATINGACTIVITIES:Net
      income
              
              $
              19,102,763
              
              
              $
              35,904,439
              
              
              $
              69,508,153
              
              
              $
              27,295,092Adjustments
      to reconcile net income tonet
      cash provided by (used in)operating
      activities:Net
      change in unrealized trading(gains)
      losses on open contracts
              
              
              299,587
              
              
              
              (2,861,236
              )
              
              
              3,457,651
              
              
              
              501,115Changes
      in assets and liabilities:Due
      from broker
              
              
              (17,781,038
              )
              
              
              (29,850,774
              )
              
              
              54,562,544
              
              
              
              (27,230,302
              )Accounts
      receivable
              
              
              -
              
              
              
              (895,458
              )
              
              
              -
              
              
              
              (895,458
              )Interest
      receivable
              
              
              62,389
              
              
              
              (83,379
              )
              
              
              64,015
              
              
              
              (102,313
              )Net
      cash provided by (used in)operating
      activities
              
              
              1,683,701
              
              
              
              2,213,592
              
              
              
              127,592,363
              
              
              
              (431,866
              )CASH
      FLOWS FROM FINANCINGACTIVITIES:Proceeds
      from subscriptions
              
              
              59,322,337
              
              
              
              12,927,912
              
              
              
              101,649,918
              
              
              
              29,365,860Payments
      on redemptions
              
              
              (33,013,897
              )
              
              
              (13,138,365
              )
              
              
              (51,161,853
              )
              
              
              (24,953,638
              )Net
      cash provided by (used in)financing
      activities
              
              
              26,308,440
              
              
              
              (210,453
              )
              
              
              50,488,065
              
              
              
              4,412,222NET
      INCREASE IN CASHAND
      CASH EQUIVALENTS
              
              
              27,992,141
              
              
              
              2,003,139
              
              
              
              178,080,428
              
              
              
              3,980,356CASH
      AND CASH EQUIVALENTSBeginning
      of period
              
              
              308,821,869
              
              
              
              152,895,682
              
              
              
              158,733,582
              
              
              
              150,918,465CASH
      AND CASH EQUIVALENTSEnd
      of period
              
              $
              336,814,010
              
              
              $
              154,898,821
              
              
              $
              336,814,010
              
              
              $
              154,898,821See
      notes to financial statements.






15




Notes
to Financial Statements (unaudited)




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







1.
            ORGANIZATION
      OF THE PARTNERSHIP




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




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




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







2.
            SIGNIFICANT
      ACCOUNTING POLICIES





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





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





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




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




16




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




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




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




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




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




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




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




Use of Estimates — The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires the General Partner
to make estimates and assumptions that affect the reported amounts of assets and
liabilities (and disclosure of contingent assets and liabilities) at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.









3.
            ADVISORY
      AGREEMENT AND PARTNERSHIP AGREEMENT




The
Advisor is the sole trading advisor to the Partnership.




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




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




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




17


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









4.
            DERIVATIVE
      FINANCIAL INSTRUMENTS




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




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




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




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









5.
            FINANCIAL
      GUARANTEES




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









6.
            RECENT
      ACCOUNTING PRONOUNCEMENTS




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




18






7.
            FAIR
      VALUE MEASUREMENTS





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





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





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













19




ITEM
      2.
            Management's
      Discussion and Analysis of Financial Condition and Results of
      Operations




Introduction




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




Operational
Overview




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




Capital
Resources and Liquidity




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




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




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




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




20


Results
of Operations




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




Periods Ended June 30,
2008:




30-Jun-08
              31-Mar
      -08Ending
      Equity
              $120,905,168
              $89,361,244
  Three
months ended June 30, 2008:




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




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




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




Six
months ended June 30, 2008:





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




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




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




Three
months ended June 30, 2008:




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





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





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




21




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





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





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





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





Three
months ended March 31, 2008:




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




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




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




22




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




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




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




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




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




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




Periods Ended June 30,
2007:




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




Three
months ended June 30, 2007:




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




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




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




Six
months ended June 30, 2007:




23




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




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




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




Three
months ended June 30, 2007:




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




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




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




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




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




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




24




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




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




Three
months ended March 31, 2007:




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




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




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




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




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




25




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




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




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




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




ITEM
3.                      Quantitative
and Qualitative Disclosures About Market Risk




Not
applicable.




ITEM
4.                      Controls
and Procedures




The
General Partner, with the participation of the General Partner's principal
executive officer and principal financial officer, has evaluated the
effectiveness of the design and operation of its disclosure controls and
procedures with respect to the Partnership as of the end of the fiscal quarter
for which this Quarterly Report on Form 10-Q is being filed.




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




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




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




ITEM
4T.                      Controls
and Procedures




Not
applicable.


PART II - OTHER
INFORMATION


26




Item
1.                      Legal
Proceedings.




None.




Item
1A. Risk Factors




Not
applicable.




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




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




(b)           Not
applicable.




(c)           Pursuant
to the Partnership’s Limited Partnership Agreement, a Limited Partner may redeem
some or all of its Units as of the last business day of each calendar month at
the then current month-end Net Asset Value.  The redemption of Units
has no impact on the value of Units that remain outstanding, and Units are not
reissued once redeemed.  The following table summarizes the amount of
Units redeemed, exclusive of non-cash transfers, during the three months ended
June 30, 2008:




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







Item
3.                      Defaults
upon Senior Securities.




None.




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




None




Item
5.                      Other
Information.




None




27


Item
6.                      Exhibits.




The
following exhibits are included herewith:




Designation                      Description




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




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




32.1
            Section
      1350 Certification of Principal Executive
  Officer




32.2
            Section
      1350 Certification of Principal Financial
  Officer




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




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




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




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




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




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




SIGNATURES




Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized on August 14, 2008.




Man-AHL
      Diversified I L.P.
                (Registrant)By:
      Man Investments (USA) Corp.
                General
      PartnerBy:
      /s/ Uwe EberlePresident
      and Chief Executive Officer(Principal
      Executive Officer)By:
      /s/ Rhowena BlankVice
      President and Head of Accounting and Operations(Principal
      Financial and Chief Accounting Officer)
   28






EXHIBIT
INDEX




Exhibit
Number                      Description of
Document




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




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




32.1
            Section
      1350 Certification of Principal Executive
  Officer




32.2
            Section
      1350 Certification of Principal Financial
  Officer








































E-1