**UNITED STATESSECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-K**

**x****Annual Report Pursuant toSection 13 or 15(d)of the Securities Exchange Act of 1934**

**For the fiscal year ended: December 31, 2006**

**or**

**o****Transition Report Pursuant toSection 13or 15(d) of the Securities Exchange Act of 1934**

**Commission file number: 0-23240**

**BLACKROCKGLOBAL HORIZONS I L.P.**

(Exact name of registrant as specified in its charter)

| **Delaware**                     |   | **13-3716393**       |
|----------------------------------|--------|----------------------|
| (State or other  jurisdiction of |   | (I.R.S. Employer     |
| incorporation or  organization)  |   | Identification  No.) |

 

**c/o BlackRock Investment Management LLC55 East 52****nd StreetNew York, New York 10055**(Address of principal executive offices)

Registrant’s telephone number, including areacode:  **(609) 282-6996**

**Securities registered pursuant to Section 12(b) ofthe Act:  None**

**Securities registered pursuant to Section 12(g) ofthe Act:**  **Limited Partnership Units**

Indicate by checkmark whether registrant is a well-known seasoned issuer as defined by Rule 405of the Securities Act.
|  | Yes | o | No | x |
|--|-----|---|----|---|

 

Indicate by checkmark whether registrant is not required to file reports pursuant to Section 13or 15(d) of the Act.
|  | Yes | o | No | x |
|--|-----|---|----|---|

 

Indicateby check mark whether the registrant (1) has filed all reports required to befiled by Section 13 or 15(d) of the Securities Exchange Act of 1934 during thepreceding 12 months (or for such shorter period that the registrant wasrequired to file such reports), and (2) has been subject to such filingrequirements for the past 90 days.
|  | Yes | x | No | o |
|--|-----|---|----|---|

 

Indicateby check mark if disclosure of delinquent filers pursuant to Item 405 ofRegulation S-K is not contained herein, and will not be contained, to the bestof registrant’s knowledge, in definitive proxy or information statementsincorporated by reference in Part III of this Form 10-K or any amendment tothis Form 10-K.    x

 Indicate by check mark whether the registrantis a large accelerated filer, an accelerated filer, or a non-acceleratedfiler.  See definition of “acceleratedfiler and large accelerated filer” in Rule 12b-2 of the Exchange Act. Checkone:
|  | Large accelerated filer o |   | Accelerated filer o |   | Non-accelerated filer x |
|--|--------------------------------|--------|--------------------------|--------|------------------------------|

 

Indicate by checkmark whether registrant is a shell company (as defined by Rule 12b-2 of theExchange Act).
|  | Yes | o | No | x |
|--|-----|---|----|---|

 

The limitedpartnership units of the registrant are not publicly traded. Accordingly, thereis no aggregate market value for the registrant’s outstanding equity that isreadily determinable.

As of February 1, 2007, limited partnership units andnon-unitized partners’ capital with an aggregate value of $228,846,832 wereoutstanding.

**Documents Incorporated by Reference**

The registrant’s2006 Annual Report and Report of Independent Registered Public Accounting Firm,the annual report to security holders for the fiscal year ended December 31,2006, is incorporated by reference into Part II, Item 8 and Part IV hereof andfiled as an Exhibit herewith.  Copies ofthe annual report are available free of charge by contacting Mike Pungello at609-282-6996.

 

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**BLACKROCK GLOBAL HORIZONS I L.P.**

ANNUAL REPORT FOR 2006 ON FORM 10-K

Table of Contents
| PART I    | ** ** |
|-----------|------------|
|      |       |   |   |
| Item  1.  |       | Business | 1 |
|      |       |   |   |
| Item  1A. |       | Risk  factors | 6 |
|      |       |   |   |
| Item  2.  |       | Properties | 12 |
|      |       |   |   |
| Item 3.   |       | Legal Proceedings | 12 |
|      |       |   |   |
| Item 4.   |       | Submission  of Matters to a Vote of Security Holders | 12 |
|      |       |   |   |
| PART II   |       |
|      |       |   |   |
| Item 5.   |       | Market for  Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases  of Equity Securities | 13 |
|      |       |   |   |
| Item 6.   |       | Selected Financial  Data | 15 |
|      |       |   |   |
| Item 7.   |       | Management’s  Discussion and Analysis of Financial Condition and Results of Operations | 17 |
|      |       |   |   |
| Item 7A.  |       | Quantitative  and Qualitative Disclosures about Market Risk | 23 |
|      |       |   |   |
| Item 8.   |       | Financial  Statements and Supplementary Data | 28 |
|      |       |   |   |
| Item 9.   |       | Changes in  and Disagreements with Accountants on Accounting and Financial Disclosure | 28 |
|      |       |   |   |
| Item 9A.  |       | Controls and  Procedures | 29 |
|      |       |   |   |
| Item 9B.  |       | Other Information | 29 |
|      |       |   |   |
| PART III  |       |
|      |       |   |   |
| Item 10.  |       | Directors  and Executive Officers of the Registrant | 30 |
|      |       |   |   |
| Item 11.  |       | Executive  Compensation | 31 |
|      |       |   |   |
| Item 12.  |       | Security  Ownership of Certain Beneficial Owners and Management and Related Stockholder  Matters | 31 |
|      |       |   |   |
| Item 13.  |       | Certain  Relationships and Related Transactions | 32 |
|      |       |   |   |
| Item 14.  |       | Principal  Accountant Fees and Services | 33 |
|      |       |   |   |
| PART IV   |       |
|      |       |   |   |
| Item 15.  |       | Exhibits and  Financial Statement Schedules | 34 |

 

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**PART I**

**Item 1:   Business**

(a)           GeneralDevelopment of Business:

BlackRock Global Horizons I L.P. (the “Partnership”)was organized under the Delaware Revised Uniform Limited Partnership Act on May11, 1993 and began trading operations on January 4, 1994.  The Partnership trades in the internationalfutures and forward markets under the direction of multiple independentprofessional advisors (the “Advisors”) applying proprietary strategies. ThePartnership’s objective is to achieve, through speculative trading, substantialcapital appreciation over time.

(b)           Amendmentsto Charter Documents/Name Change:

On September 29, 2006, the Partnership’s generalpartner became BlackRock Investment Management, LLC (“BlackRock”), a whollyowned subsidiary of BlackRock, Inc.  Theformer general partner was Merrill Lynch Alternative Investments (“MLAI”).  Prior to September 29, 2006, MLAI was awholly-owned subsidiary of Merrill Lynch Investment Managers LP (“MLIM”), whichin turn was an indirect wholly-owned subsidiary of Merrill Lynch & Co.,Inc. (“Merrill Lynch”).  On September 29,2006 Merrill Lynch and BlackRock, Inc. merged the asset management businessesof MLIM and BlackRock, Inc. to create a new combined asset management company.Merrill Lynch retained significant ownership interest in the combinedcompany.  This resulted in BlackRockbecoming the general partner of the Partnership.  In addition, the Partnership’s name waschanged from Global Horizons I L.P. to BlackRock Global Horizons I L.P.  Previously, on January 15, 2005, thePartnership changed its name from ML Global Horizons L.P. to Global Horizons IL.P.  No changes have occurred to thePartnership’s investment objective or to the Partnership’s structure as aresult of these changes.  All referencesin the notes to financial statements to “BlackRock” are to MLAI prior toSeptember 29, 2006.

When the Partnership is offering its units of limitedpartnership interest (“Units”), it receives and processes subscriptions on acontinuous basis throughout each month. Investors whose subscriptions are accepted during a month are admittedto the Partnership as Limited Partners as of the beginning of the immediatelyfollowing month, acquiring Units at the Net Asset Value per Unit as of the dateof admission.  Investors’ customersecurities accounts are debited in the amount of their subscriptions on asingle monthly settlement date within approximately ten calendar days of theissuance of the Units.

As of February 1, 2004,the Partnership privately offered two new series of units of limitedpartnership interest, Series A and Series I. The continuing units were renamed Series F.  As of January 2, 2005, the Partnershipcreated three “non-unitized” series of limited partnership interests.  These series are invested in by other investmentpartnerships which BlackRock serves as the general partner.

Effective after the closeof business on December 29, 2006, two of the three “non-unitized” series of thePartnership (BlackRock Futures Investments L.P. and BlackRock PrincipalProtection L.P.), were merged into the Partnership in a tax-freereorganization. All of the investors in BlackRock Futures Investments L.P. andBlackRock Principal Protection L.P. received new Series G Units of thePartnership with an initial Net Asset Value per Unit of $1.00 equal to theirDecember 31, 2006 Net Asset Value.  Issuance of the new Units had no adverse economic effect on investors inthe Partnership or either of the merged funds.

As of December 31, 2006, the capitalization of thePartnership was $227,349,345, and the Net Asset Value per Series F (the initialSeries of Units), originally $100 as of January 4, 1994, had risen to $230.98.

Through December31, 2006, the highest month-end Net Asset Value of Series F Unit was $245.80(February 29, 2004) and the lowest $97.36 (February 28, 1994).

(c)           FinancialInformation about Segments:

The Partnership’s business constitutes only onesegment for financial reporting purposes, i.e*.,*a speculative “commodity pool”. The Partnership does not engage in sales ofgoods or services.

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(d)           NarrativeDescription of Business:

***General***

The Partnership trades in the international futures,options on futures and forward markets with the objective of achievingsubstantial capital appreciation over time.

The Partnership’s assets are allocated and reallocatedby BlackRock to the trading management of the Advisors applying proprietarystrategies in numerous markets.

BlackRock may, from time to time, direct certainindividual Advisors to manage their respective Partnership accounts as if theywere managing more equity than the actual capital allocated to them.

One of the objectives of the Partnership is to providediversification for a limited portion of the risk segment of the LimitedPartners’ portfolios.  Commodity poolperformance has historically demonstrated a low degree of performancecorrelation with traditional stock and bond holdings.  Since it began trading, the Partnership’sreturns have been significantly non-correlated with the United States stock andbond markets.

***Use of Proceeds and Interest***

SubscriptionProceeds.

BlackRock pays from its own funds the sellingcommissions relating to the sale of the Units. Accordingly, 100% of the proceeds of Unit sales are received in cash bythe Partnership and available for use in its speculative trading.  In such trading, the Partnership’s assets areused as security for and to pay the Partnership’s trading losses, as well asany expenses and redemptions.  Theprimary use of the proceeds of the sale of the Units is to permit the Advisorsto trade on a speculative basis in a wide range of different futures, forwardsand options on futures markets on behalf of the Partnership.  While being used for this purpose, thePartnership’s assets are also generally available to earn interest, as morefully described below.  The most recentcontinuous offering of Units began effective February 1, 2004.

Market Sectors.

The Partnership trades in a diversified group ofmarkets under the direction of multiple independent Advisors.  These Advisors can, and do, from time totime, materially alter the allocation of their overall trading commitmentsamong different market sectors.  There isno restriction on the commodity interests, that may be traded by any Advisor orthe frequency with which an Advisor may alter its market sector allocations.

Market Types.

The Partnership trades on a variety of United Statesand foreign futures exchanges. Substantially all of the Partnership’soff-exchange trading takes place in the highly liquid, institutional spot andforward foreign exchange markets (the “FX Markets”) where there are no directexecution costs.  Instead, theparticipant banks and dealers in the FX Markets take a “spread” between theprices at which they are prepared to buy and sell a particular currency, andsuch spreads are built into the pricing of the spot or forward contracts tradedwith the Partnership.  In its exchange offutures for physical (“EFP”) trading, the Partnership acquires cash currencypositions through banks and dealers.  ThePartnership pays a spread when it exchanges these positions for futures.  This spread reflects, in part, the differentsettlement dates of the cash and the futures contracts, as well as prevailinginterest rates, but also includes a pricing spread in favor of the banks anddealers, which may include a Merrill Lynch entity.

As in the case of itsmarket sector allocations, the Partnership’s commitments to different types ofmarkets — U.S. and non-U.S., regulated and nonregulated — differ substantiallyfrom time to time, as well as over time.

Custody of Assets.

Substantially all of the Partnership’s assets arecurrently held in customer accounts at Merrill Lynch, Pierce, Fenner &Smith (“MLPF&S”).

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Interest Paid byMerrill Lynch on the Partnership’s U.S. Dollar and Non-U.S. Dollar Assets.  

On assets held inU.S. dollars, Merrill Lynch credits the Partnership with interest at theprevailing 91-day U.S. Treasury bill rate. The Partnership is credited with interest on any of its assets and netgains actually held by Merrill Lynch in non-U.S. dollar currencies at aprevailing local rate received by Merrill Lynch.  Merrill Lynch may derive certain economicbenefit, in excess of the interest which Merrill Lynch pays to the Partnership,from possession of such assets.

Merrill Lynch charges the Partnership Merrill Lynch’scost of financing realized and unrealized losses on the Partnership’s non-U.S.dollar denominated positions.

***Charges***

The following table summarizes the charges incurred bythe Partnership during 2006, 2005 and 2004.
| ** **           | ** ** | **2006**   | ** ** | **2005**                   | ** ** | **2004**   | ** ** |
|----------------------|------------|------------|------------|----------------------------|------------|------------|------------|
| ** **           | ** ** | ** ** | ** ** | **% of Average** | ** ** | ** ** | ** ** | **% of Average** | ** ** | ** ** | ** ** | **% of Average** | ** ** |
| ** **           | ** ** | **Dollar** | ** ** | **Month-End**              | ** ** | **Dollar** | ** ** | **Month-End** | ** ** | **Dollar** | ** ** | **Month-End** | ** ** |
| **Charges**          | ** ** | **Amount** | ** ** | **Net Assets**        | ** ** | **Amount** | ** ** | **Net Assets** | ** ** | **Amount** | ** ** | **Net Assets** | ** ** |
|                 |       |       |       |                       |       |       |       |   |   |   |   |   |   |
| Brokerage            |       |       |       |                       |       |       |       |   |   |   |   |   |   |
| Commissions          |       | $          | 17,712,085 |                       | 7.06       | %          | $          | 17,973,653 |   | 6.65 | % | $ | 5,725,678 |   | 6.89 | % |
| Administrative  Fees |       | 615,580    |       | 0.24                       | %          | 622,238    |       | 0.23 | % | 205,144 |   | 0.25 | % |
| Profit Shares        |       | 2,783,961  |       | 1.11                       | %          | 1,266,141  |       | 0.47 | % | 1,581,140 |   | 1.90 | % |
| Total                |       | $          | 21,111,626 |                       | 8.41       | %          | $          | 19,862,032 |   | 7.35 | % | $ | 7,511,962 |   | 9.04 | % |

 

The foregoingtable does not reflect the bid-ask spreads paid by the Partnership on itsforward trading, or the benefits which may be derived by Merrill Lynch from thedeposit of certain of the Partnership’s U.S. dollar available assets maintainedat MLPF&S.

The Partnership’saverage month-end Net Assets during 2006, 2005 and 2004 equaled $250,940,436,$270,409,956, and $83,065,122 respectively.

During 2006, 2005and 2004, the Partnership earned $12,178,428, $8,910,897, and $1,297,826, respectively,in interest income, or approximately 4.85%, 3.30% and 1.56%, respectively, ofthe Partnership’s average month-end Net Assets.

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##### **Description of Current Charges**

| Recipient            | ** ** | **Nature of Payment**      | ** ** | **Amount of Payment**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|----------------------|------------|----------------------------|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| MLPF&S           |       | Brokerage Commissions      |       | As of February 1, 2004, the flat monthly brokerage  commission rate for Series F was reduced to 0.583 of 1% (a 7.00% annual rate)  from .0604 of 1% (a 7.25% annual rate). Series A and Series I incur brokerage  commissions of 7.00% and 4.00% per year, respectively. Brokerage commissions  for the non-unitized series range from 7.25% to 8.75%.  During 2006, 2005 and 2004, the round-turn equivalent rate (each purchase and  sale or sale and purchase of a single futures contract) of the Partnership’s  flat-rate brokerage commissions was approximately $47, $39 and $90,  respectively. |
|                 |       |                       |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| MLPF&S           |       | Use of Partnership assets  |       | Merrill Lynch may derive certain economic benefit  from the deposit of certain of the Partnership’s U.S. dollar assets in  accounts maintained at MLPF&S.                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                 |       |                       |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| BlackRock            |       | Administrative Fees        |       | A flat monthly administrative fee equal to 0.021 of  1% of the Partnership’s month-end assets (0.25% annually). BlackRock pays all  of the Partnership’s routine administrative costs.                                                                                                                                                                                                                                                                                                                                                                                                             |
|                 |       |                       |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Other Counterparties |       | Bid–ask spreads       |       | Bid–ask spreads on forward and related trades.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                 |       |                       |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| MLAI                 |       | Annual Incentive Overrides | * *   | Paid by the Partnership as a whole on an annual  basis and by reduction of the Net Asset Value of Units when redeemed. The  Incentive Override equals 10% of any Net New Gain (as defined). Units may  generate Net New Gain and be subject to paying an Incentive Override even  though the Net Asset Value per Unit has declined below the purchase price of  such Units. As of January 1, 2004 the annual Incentive Override was  terminated.                                                                                                                                                             |

 

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| Advisors           |   | Profit Shares          |   | All Advisors can receive quarterly or annual Profit  Shares ranging from 17% to 25% (depending on the Advisor) of any New Trading  Profit achieved by their Partnership account. Profit Shares are also paid  upon redemption of Units and upon the net reallocation of assets away from an  Advisor. New Trading Profit is calculated separately in respect of each Advisor,  irrespective of the overall performance of the Partnership. As a result, the  Partnership may pay substantial Profit Shares during periods when it is  incurring significant overall losses. |
|--------------------|--------|------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|               |   |                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Advisors           |   | Consulting fees        |   | MLPF&S pays the Advisors annual Consulting Fees  generally ranging up to 2.5% of the Partnership’s average month-end assets  allocated to them for management, after reduction for a portion of the  brokerage commissions accrued with respect to such assets.                                                                                                                                                                                                                                                                                                    |
|               |   |                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| BlackRock;  Others |   | Extraordinary expenses |   | Actual costs incurred; none paid to date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

 

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***Regulation***

 The Partnership, BlackRock, the Advisors andMLPF&S are each subject to regulation by, and registered with, theCommodity Futures Trading Commission (the “CFTC”) and the National FuturesAssociation (“NFA”).  Other than inrespect of its periodic reporting requirements under the Securities ExchangeAct of 1934, the Partnership itself is generally not subject to regulation bythe Securities and Exchange Commission. However, BlackRock itself is registered as an “investment adviser” underthe Investment Advisers Act of 1940. In the event BlackRock’s registration withthe CFTC or NFA were terminated, or suspended, BlackRock would be unable tocontinue to manage the business of the Partnership, and termination of thePartnership could result.  The CFTC andcertain commodity exchanges have also established limits on the maximum netlong or net short position which any person may hold or control in particularcommodities.  Most exchanges also limitthe changes in futures contract prices that may occur during a single tradingday.  These limits may restrict theability of the Partnership to establish or liquidate positions.  Currency forward contracts generally are notsubject to regulation by any United States Government agency.

(i) through (xii)— not applicable.

(xiii) ThePartnership has no employees.

(e)                                  FinancialInformation about Geographic Areas

The Partnershipdoes not engage in material operations in foreign countries, nor is a materialportion of the Partnership’s revenue derived from customers in foreigncountries.  However, the Partnershiptrades, from the United States, on a number of foreign commodityexchanges.  The Partnership does notengage in the sales of goods or services.

**Item 1A:    Risk factors**

**InvestorsMay Lose All or Substantially All of Their Investment**

Investors must beprepared to lose all or substantially all of their investment.  The Partnership has no “principal protection”feature assuring the return of investors’ initial investment as of a specifiedfuture date.

**Past****PerformanceNot Necessarily Indicative of Future Results**

Past performance is not necessarily indicative offuture results.  Neither the Advisors’nor the Partnership’s past performance may be representative of how they or it,respectively, may trade in the future.

**VolatileMarkets; Highly Leveraged Trading**

Futures andforwards are inherently leveraged instruments. A futures or forward position may be opened by an initial deposit ofonly a fraction of the “notional” value of the position with a clearing broker(in the case of a futures contract) or a dealer (in the case of aforward).  When only a small fraction ofthe value of the position is deposited to open the position, a similarly smallchange in the market value of the position can diminish or completely offsetthat deposit, requiring the deposit of additional capital with the clearingbroker or dealer, and causing losses that are a multiple of the change in themarket value of the position.  Forinstance, if a futures position requiring the purchase and sale of $100,000worth of a commodity has a 10% initial “risk margin” deposit requirement, afutures position is opened by depositing the minimum required $10,000 initialmargin deposit, and the value of the position declines 10% (or $10,000), theclearing broker carrying the position will pay the $10,000 deposited to theclearinghouse as a mark-to-market payment, and the account will be required toclose the position or deposit an additional $9,000 to bring the initial margindeposit back to 10% of the value of the now $90,000 position.  In that scenario, the 10% market move causedlosses of 100% of the $10,000 deposited to open the position.  The risks of leveraged trading may beexacerbated due to the nature of the instruments underlying futures andforwards.  The value of such instrumentstend to be volatile and materially affected by unpredictable factors such asweather and governmental intervention. The combination of volatility in the value of the underlying commoditiesand the leverage inherent in futures and forwards creates a high degree ofrisk.

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**SubstantialCharges**

The Partnership is subject to substantial charges.

The incentive compensation paid to the Advisors isbased on the individual performance of each Advisor, not the overallperformance of the Partnership. Historically, the Partnership has paid incentive compensation to certainAdvisors during periods when the performance of the Partnership as a whole wasbreakeven or unprofitable.

**Importance****of General Market Conditions**

Overall market or economic conditions — which neitherBlackRock nor any Advisor can predict or control — have a material effect onperformance of the Partnership. Furthermore, such overall conditions can adversely affect theperformance of numerous Advisors at or about the same time, despite theirimplementing different and independent strategies.  Consequently, the multi-Advisor structure ofthe Partnership does not assure that its performance will not be adverselyaffected by future market or economic conditions.

**No Diversification Benefits ifthe Partnership is Not Profitable**

If the Partnership does not trade successfully — afterdeduction of all fees and charges — it cannot serve as an effectivediversification for a traditional portfolio.

**No Assurance of Non-Correlation;Limited Value of Non-Correlation Even if Achieved**

Not only is the past performance of the Partnershipnot necessarily indicative of its future results (due to the speculativecharacter of managed futures), but also there can be no assurance, however thePartnership may perform, that the Partnership’s results will be non-correlatedwith (i.e., unrelated to) the general stock and bond markets.  If the Partnership’s performance is notnon-correlated to these markets, the Partnership cannot help diversify anoverall portfolio.

Investors should evaluate an investment in thePartnership in terms of the alternative of an investment in a cash equivalent,such as 91-day Treasury bills, which can be relied upon to (i) be generallynon-correlated with equity and debt price levels, (ii) generate a positiveyield and cash flow, (iii) be highly liquid, (iv) have almost no risk of lossof principal and (v) incur virtually no costs or expenses.

Even if the Partnership’s performance is generallyboth profitable and non-correlated to the general stock and bond markets, it ishighly likely that there will be significant periods during which thePartnership’s results are similar to those of an investor’s stock and bondholdings, thereby reducing or eliminating the Partnership’s diversificationbenefits.  During unfavorable economiccycles, an investment in the Partnership may increase rather than mitigate aportfolio’s aggregate losses.

**CombiningIndependent Trading Strategies**

Combining independent trading strategies involvessubstantial opportunity costs, as one Advisor’s profits are frequently offsetby another Advisor’s losses.  DifferentAdvisors often take opposite positions for the Partnership, eliminating the profitpotential of the combined positions.

**Systematic****Strategies**

Most of the Partnership’s assets have been allocatedto Advisors which rely on technical, systematic strategies.  The widespread use of technical tradingsystems frequently results in numerous managers attempting to execute similartrades at or about the same time, altering trading patterns and affectingmarket liquidity.  Furthermore, theprofit potential of trend-following systems may be diminished by the changingcharacter of the markets, which may make historical price data (on whichtechnical programs are based) only marginally relevant to future marketpatterns.

**Discretionary****Strategies**

Certain of the Partnership’s Advisors arediscretionary rather than systematic traders. Discretionary trading managers may be prone to emotionalism and a lackof discipline in their trading.  Relyingon subjective trading judgment may produce less consistent results than thoseobtained by more systematic approaches.

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**Increased****AssetsUnder Management**

There appears to be a tendency for the rates of returnachieved by managed futures advisors to decline as assets under managementincrease.  None of the Advisors hasagreed to limit the amount of additional equity which it may manage, and mostof them are at or near their all-time high in assets under management.

**NoAssurance of Advisors’ Continued Services; Competition for Advisors**

There is no assurance that any Advisor will be willingor able to continue to provide advisory services to the Partnership.  There is severe competition for the servicesof qualified Advisors, and the Partnership may not be able to retainsatisfactory replacement or additional Advisors on acceptable terms.

**Changesin Trading Strategy**

An Advisor may make certain changes in its trading strategieswithout the knowledge of BlackRock.

**IlliquidMarkets**

Certain positions held by the Partnership may becomeilliquid, preventing an Advisor from acquiring positions otherwise indicated byits strategy or making it impossible for an Advisor to close out positionsagainst which the market is moving.

**Redemptions Restricted**

Investors’ limited ability to redeem Units couldresult in there being a substantial difference between a Unit’s redemptionvalue and its Net Asset Value as of the date by which irrevocable redemptionrequests must be received.  Redemptioncharges apply through the end of the twelfth month after a Unit (other than anInstitutional Series Unit) is issued.

**Conflicts of Interest**

The Partnership is subject to a number of materialactual and potential conflicts of interest, raising the possibility thatinvestors will be disadvantaged to the benefit of the BlackRock, the Advisorsor their respective principals and affiliates. No formal policies or procedures have been adopted to resolve theseconflicts.

**Bankruptcy or Default**

Under CFTC Regulation 1.20, the Partnership’s clearingbroker is required to separately account for and segregate in a customersegregated funds account the Partnership’s commodity futures positions, theassets deposited as margin in respect of such positions, and any proceeds fromsuch positions.  The clearing broker maynot obligate funds in the customer segregated funds account except to purchase,margin, guarantee, secure, transfer, adjust, or settle trades, contracts, orcommodity option transactions of commodity or option customers, and theclearing broker may not hold, dispose of, or use any customer funds asbelonging to any person other than the clearing broker’s commodity or optioncustomers.  Even so, if positions in thecustomer segregated funds account suffer losses in excess of the cash depositedto margin those positions, and the customer for whose account those positionsare carried does not meet the clearing broker’s calls for additional margin,the clearing broker could be forced into bankruptcy if it cannot satisfy thoselosses out of its own assets.  If thatwere to happen, because the Partnership’s positions and assets are commingledwith other customer positions in the customer segregated funds account at theclearing broker, the Partnership’s assets deposited with the clearing brokerwould be used pro rata with the assets of other customers to satisfy anyremaining losses from those positions in the account, and Partnership investorscould incur substantial losses, despite the Partnership having been otherwisehighly profitable.

**Limited Regulatory Oversight**

The Partnership does not come within the statutorydefinition of an “investment company” and is not required to be registered asan investment company, under the Investment Company Act of 1940 or anycomparable regulatory requirements, and does not intend to do so.  Accordingly, the provisions of suchregulations, which among other things generally require investment companies tohave a majority of disinterested directors, require securities held in custodyat all times to be maintained in segregated accounts impose certain operationaland trading limitations and

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regulate the relationshipbetween the investment company and its asset manager, are not applicable to aninvestment in the Partnership.

**Tradingon Non-U.S. Exchanges**

The Advisors trade extensively on non-U.S.exchanges.  These exchanges are notregulated by any United States governmental agency.  The Partnership could incur substantiallosses trading on foreign exchanges to which it would not have been subject hadthe Advisors limited their trading to U.S. markets.

The profits and losses derived from trading foreignfutures and options will generally be denominated in foreign currencies;consequently, the Partnership will be subject to a certain degree ofexchange-rate risk in trading such contracts.

**The Partnership Could Lose Assets and Have ItsTrading Disrupted Due to the Bankruptcy of Brokers**

The Partnership is subject to the risk of its clearingbroker, exchange or clearinghouse insolvency. Partnership assets could be lost or impounded during lengthy bankruptcyproceedings.  Were a substantial portionof the Partnership’s capital tied up in a bankruptcy, BlackRock might suspendor limit trading, perhaps causing the Partnership to miss significant profitopportunities.  No Partnership managed byBlackRock has ever lost any assets due to the bankruptcy or default of abroker, exchange or clearinghouse, but there can be no assurance that this willnot happen in the future.

**Currency Forward Trading**

The Advisors may engage in trading in forwardcontracts on currencies.  Forwardcontracts are not traded on exchanges; rather, banks and dealers act asprincipals in these markets. Consequently, in respect to its forward trading, the Partnership issubject to the risk of the inability or refusal to perform with respect to suchcontracts on the part of the principals or agents with or through which theAdvisors trade.  Any failure or refusalto discharge their contractual obligations by the counterparties with which theAdvisors deal on the forward markets, whether due to insolvency, bankruptcy orother causes, could subject the Partnership to substantial losses.  No Advisor will be excused from performanceunder any forward contracts into which it has entered due to defaults underother forward contracts which in the Advisor’s strategy were to havesubstantially “covered” the former. There is also the risk that a counterparty that loses money on a contractwith a Advisor may seek to avoid its obligations on legal grounds.

**Currency Options Trading**

The Advisors may trade options on currencies or oncurrency futures or forward contracts. Although successful options trading requires many of the same skills assuccessful futures trading, the risks involved are somewhat different.  For example, the assessment of near-termmarket volatility — which is directly reflected in the price of outstandingoptions — can be of much greater significance in trading options than it is inmany long-term futures strategies.  Theuse of options can be extremely expensive if market volatility is incorrectlypredicted.

**Currency Markets May Be Illiquidor Disrupted**

Although generally highly liquid, the markets in whichthe Advisors trade can experience periods of illiquidity, sometimes ofsignificant duration.  For example, noneof the participants in the forward markets are required to maintain a market inany particular currency or to maintain a reasonable spread between the “bid” and“asked” prices which they quote. Disruptions can occur in any market traded by the Advisors due tounusually high trading volume, political intervention or other factors.  Market illiquidity or disruption could resultin major losses to the Partnership.

**Counterparty Risk**

Certain of the markets in which Advisors invest andtrade are over-the-counter or “interdealer” markets.  The participants in these markets typicallyare not subject to the type of strict credit evaluation and regulatoryoversight applicable to members of “exchange-based” markets, and transactionsin these markets typically are not settled through exchanges or clearinghousesthat guarantee the trades of their participants.  Rather, the responsibility for performingunder a particular transaction rests solely with the counterparties to suchtransaction.  This results in the riskthat a counterparty may not settle a transaction with a Advisor in accordancewith its terms, because the counterparty is either unwilling or unable to do so(for example, because of a credit or liquidity problem affecting thecounterparty), potentially

9

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resulting in significantloss.  In an attempt to mitigate the riskof counterparty default, many counterparties now require the posting ofcollateral.  However, this collateral maybe difficult to liquidate in a market crisis. In addition, a Advisor could lose a significant portion of its capitalwhile it attempts to execute a substitute transaction to replace a transactionunder which a counterparty has defaulted.

“Counterparty risk” is accentuated in the case ofcontracts having longer maturities as well as in the case of a Advisor whichconcentrates its transactions with a single counterparty or limited number ofcounterparties.

BlackRock has no control over the institutions withwhich the Advisors enter into transactions. In addition, Advisors generally are not restricted from dealing with anyparticular counterparties or from concentrating any or all of theirtransactions for the Partnership with a single counterparty or limited numberof counterparties.

The recent events underlying the bankruptcy of Refco,Inc. and its related entities have underscored the risks of maintaining capitalat unregulated entities as well as the fact that most dealing agreements permitcounterparties to transfer customer funds from regulated to unregulatedaccounts in the counterparties’ discretion. BlackRock has no ability to assess the extent to which the Advisorsmaintain their assets in unregulated accounts subject to the bankruptcy of thecounterparties holding such assets.

**Regulatory Changes Could Restrictthe Partnership’s Operations**

The Partnership implements a speculative, highlyleveraged strategy.  From time to timethere is governmental scrutiny of these types of strategies and politicalpressure to regulate their activities. For example, foreign governments have from time to time blamed thedeclines of their currencies on speculative funds and imposed restrictions onspeculative trading in certain markets, and the collapse of a major hedge fundin 2006 among more recent corporate events has led to significantly increasedregulatory monitoring of the activities of these funds and, to an extent,commodity pools such as the Partnership.

Regulatory changes could adversely affect thePartnership by restricting its markets, limiting its trading and/or increasingthe taxes to which Limited Partners are subject.  BlackRock is not aware of any pending orthreatened regulatory developments which might adversely affect the Partnership.  However, adverse regulatory initiatives coulddevelop suddenly and without notice.

**Investors are Taxed Every Year onTheir Share of the Partnership’s Profits — Not Only When They Redeem as WouldBe the Case if They Held Stocks or Bonds**

Investors are taxed each year on their share of thePartnership’s income and gains, irrespective of whether they redeem any Units.

All performance information included in thisMemorandum is presented on a pre-tax basis; the investors who experienced suchperformance had to pay the related taxes from other sources.

Over time, the compounding effects of the annualtaxation of the Partnership’s income are material to the economic consequencesof investing in the Partnership.  Forexample, a 10% compound annual rate of return over five years would result inan initial $10,000 investment compounding to $16,105.  However, if one factors in a 30% tax rateeach year (the blended tax rate on many of the futures contracts traded by thePartnership is currently 23%), the result would be $14,025.

**The Partnership’s Trading GainsTaxed at Higher Capital Gains Rate**

Investors are taxed on their share of any tradingprofits of the Partnership at both short- and long-term capital gain ratesdepending on the mix of U.S. exchange-traded contracts and non-U.S. contractstraded.  These tax rates are determinedirrespective of how long an investor holds Units.  Consequently, the tax rate on the Partnership’strading gains may be higher than those applicable to other investments held byan investor for a comparable period.

**Tax Could Be Due From Investorson Their Share of the Partnership’s Interest Income Despite Overall Losses**

Investors may be required to pay tax on theirallocable share of the Partnership’s interest income, even if the Partnership incursoverall losses.  Trading losses can onlybe used to offset trading gains and $3,000 of ordinary

10

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income (includinginterest income) each year. Consequently, if an investor were allocated $5,000 of interest incomeand $10,000 of net trading losses, the investor would owe tax on $2,000 ofinterest income even though the investor would have a $5,000 loss for theyear.  The $7,000 capital loss wouldcarry forward, but subject to the same limitation on its deductibility againstinterest income.

**“Investment Advisory Fees”**

Limited Partners could be required to treat theAdvisors’ Incentive Fee compensation, as well as certain other expenses of thePartnership, as “investment advisory fees,” which are subject to substantialrestrictions on deductibility for individual taxpayers.  BlackRock has not, to date, been classifyingthe Advisors’ performance-based compensation or any such expenses as “investmentadvisory fees,” a position to which the Internal Revenue Service (the “IRS”)might object.

**Taxation of Interest Income**

The Partnership’s trading losses are almostexclusively capital losses for tax purposes. Capital losses may be offset against ordinary income only to the extentof $3,000 per year for individual taxpayers. If an individual Limited Partner had, for example, an allocable tradingloss of $10,000 and allocable interest income of $5,000, he or she would incura net loss of $5,000 but would recognize taxable interest income of $2,000.

**Tax Audit**

There can be no assurance that the Partnership’s taxreturns will not be audited by the IRS. If such an audit were to result in an adjustment, Limited Partners couldbe required to pay back taxes, interest and penalties, and could themselves beaudited.

Prospective investors are strongly urged to consulttheir independent tax advisers and counsel with respect to the possible taxconsequences of an investment in the Partnership, particularly since such taxconsequences may differ among investors.

**The Combination of Merrill Lynchand BlackRock**

The combination transaction between Merrill Lynch andBlackRock, Inc. described in Item 1(b) above gives rise to numerousuncertainties and risks.  Merrill Lynch’sasset management business is transitioning from being a part of Merrill Lynchto being a part of BlackRock, Inc., which entails many changes, including theintegration of Merrill Lynch’s domestic and international asset managementbusiness and personnel with BlackRock, Inc.’s existing business and personnel,and changes in systems and employee benefit plans.  These transition activities are complex, andmay pose unexpected difficulties, or incur unexpected costs, in any of them,including: (i) the diversion of management’s attention to integration matters;(ii) difficulties in achieving expected cost savings associated with thetransaction; (iii) difficulties in the integration of operations and systems;(iv) difficulties in the assimilation of employees; (v) difficulties inreplacing the support functions currently provided by Merrill Lynch to itsasset management business, including support and assistance in respect of riskmanagement, financial and operational functions; (vi) challenges in keepingexisting clients and obtaining new clients, including potential conflicts ofinterest; and (vii) challenges in attracting and retaining key personnel.  In order for BlackRock to maximize thesynergies for which the transaction was completed, BlackRock will have to,among other things, successfully integrate people, offices, systems andcultures from various Merrill Lynch subsidiaries and BlackRock, Inc.  There can be no assurance that suchintegration will occur efficiently or successfully, and the financial conditionof the Partnership and its operations could be materially affected by any ofthese risks.

**General Commodity Futures TradingRisk Disclosure Statement**

Prospective investors should carefully considerwhether their financial condition permits them to participate in thePartnership.  In so doing, prospectiveinvestors should be aware that futures and options trading can quickly lead tolarge losses as well as gains.  Suchtrading losses can sharply reduce the net asset value of the Partnership andconsequently the value of an investor’s interest in the Partnership.  In addition, certain restrictions onredemption may affect an investor’s ability to withdraw from participation inthe Partnership.  Further, thePartnership may be subject to substantial charges for management, and advisoryand brokerage fees.  It may be necessaryfor the Partnership to make substantial trading profits to avoid depletion orexhaustion of its assets. Notwithstanding the foregoing risk factors in this report, this briefstatement cannot disclose all the risks and other factors necessary to evaluatea potential investor’s

11

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participation in thePartnership.  Therefore, before anyinvestors decides to invest in the Partnership, the prospective investor shouldcarefully study the Partnership’s disclosure document, including thedescription of the principal risk factors stated therein.  Prospective investors should also be awarethat the Partnership may trade foreign futures or options contracts.  Transactions on markets located outside theUnited States, including markets formally linked to a United States market, maybe subject to regulations which offer different or diminished protection to thePartnership and its participants. Further, United States regulatory authorities may be unable to compelthe enforcement of the rules of regulatory authorities or markets in non-UnitedStates jurisdictions where transactions for the Partnership maybe effected.

**Item 2:       Properties**

The Partnershipdoes not use any physical properties in the conduct of its business.

The Partnership’sadministrative offices are the administrative offices of BlackRock, 52 East 52nd Street, New York, New York 10055.  BlackRock performs certain administrativeservices for the Partnership from BlackRock’s offices.

**Item 3:       Legal Proceedings**

The Partnership orBlackRock has never been the subject of any material litigation.  BlackRock, as well as certain of itssubsidiaries and affiliates have been named as defendants in civil actions,arbitration proceedings and claims arising out of their respective businessactivities.  Although the ultimate outcomeof these actions cannot be predicted at this time and the results of legalproceedings cannot be predicted with certainty, it is the opinion of managementthat the result of these matters will not be materially adverse to the businessoperations or financial condition of BlackRock or the Partnership.

**Item 4:       Submission of Matters to a Vote ofSecurity Holders**

None.

12

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**PART II**

**Item 5:****                      Marketfor Registrant’s Common Equity and Related Stockholder Matters and Issuer Purchases ofEquity Securities**

(a)           Market Information:

There is noestablished public trading market for the Units or the non-unitized series, norwill one develop.  Rather, LimitedPartners holding unitized series may purchase or redeem Units as of the end ofeach month at Net Asset Value, subject to certain early redemption charges whenapplicable and fifteen days prior notice with respect to redemption.

(b)           Holders:

As of December 31,2006, there were 2,195, 1,122 and 33 holders of Series A, F and I Units,respectively, including BlackRock.

(c)           Dividends:

The Partnershiphas made no distributions since trading commenced, nor does BlackRock presentlyintend to make any distributions in the future.

(d)                                 SecuritiesAuthorized for Issuance Under Equity Compensation Plans:

Not applicable.

(e)                                  RecentSales of Unregistered Securities: Uses of Proceeds From Registered Securities:

Unregisteredsecurities are issued to accredited investors pursuant to Regulation D andSection 4(2) under the Securities Act. The selling agent of the followingSeries of Units was FAM Distributors, a wholly owned subsidiary of MerrillLynch and an affiliate of BlackRock.
| ** ** | ** ** | **SERIES A** | ** ** |
|------------|------------|-------------------|------------|
| ** ** | ** ** | **Subscription**  | ** ** | ** ** | ** ** | ** ** | ** ** |
| ** ** | ** ** | **Amount**        | ** ** | **Units** | ** ** | **NAV** | ** ** |
| Jan-06     |       | $                 | 2,054,974  |   | 2,218,236 |   | $ | 0.9264 |   |
| Feb-06     |       | 1,639,979         |       | 1,734,693 |   | 0.9454 |   |
| Mar-06     |       | 1,389,984         |       | 1,479,966 |   | 0.9392 |   |
| Apr-06     |       | 1,779,990         |       | 1,863,669 |   | 0.9551 |   |
| May-06     |       | 1,674,990         |       | 1,699,635 |   | 0.9855 |   |
| Jun-06     |       | 3,534,972         |       | 3,598,668 |   | 0.9823 |   |
| Jul-06     |       | 2,114,983         |       | 2,163,887 |   | 0.9774 |   |
| Aug-06     |       | 834,991           |       | 871,962 |   | 0.9576 |   |
| Sep-06     |       | 1,004,986         |       | 1,073,015 |   | 0.9366 |   |
| Oct-06     |       | 769,997           |       | 825,823 |   | 0.9324 |   |
| Nov-06     |       | 1,129,989         |       | 1,186,091 |   | 0.9527 |   |
| Dec-06     |       | 1,409,983         |       | 1,476,731 |   | 0.9548 |   |
| Jan-07     |       | 914,992           |       | 950,641 |   | 0.9625 |   |
|            |            |                   |            |  |  |  |  |  |  |

 
| ** ** | ** ** | **SERIES I** | ** ** |
|------------|------------|-------------------|------------|
| ** ** | ** ** | **Subscription**  | ** ** | ** ** | ** ** | ** ** | ** ** |
| ** ** | ** ** | **Amount**        | ** ** | **Units** | ** ** | **NAV** | ** ** |
| Jan-06     |       | $                 | 24,754     |   | 26,376 |   | $ | 0.9385 |   |
| Feb-06     |       | 9,999             |       | 10,416 |   | 0.9600 |   |
| Mar-06     |       | 49,508            |       | 51,781 |   | 0.9561 |   |
| Apr-06     |       | 9,999             |       | 10,263 |   | 0.9743 |   |
| May-06     |       | 148,525           |       | 147,478 |   | 1.0071 |   |
| Jun-06     |       | —            |       | — |   | 1.0063 |   |
| Jul-06     |       | —            |       | — |   | 1.0040 |   |
| Aug-06     |       | —            |       | — |   | 0.9895 |   |
| Sep-06     |       | 15,000            |       | 15,497 |   | 0.9679 |   |
| Oct-06     |       | —            |       | — |   | 0.9667 |   |
| Nov-06     |       | —            |       | — |   | 0.9881 |   |
| Dec-06     |       | 9,901             |       | 9,985 |   | 0.9916 |   |
| Jan-07     |       | —            |       | — |   | 1.0010 |   |
|            |            |                   |            |  |  |  |  |  |  |

 

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(f)                                    **Issuer Purchases of Equity Securities: **

Limited Partnersin unitized series may redeem their Units at the end of each calendar month atthe then current month-end Net Asset Value per Unit.  The redemption of Units has no impact on thevalue of Units that remain outstanding, and Units are not reissued once redeemed.

The followingtable summarizes the redemptions by Unitholders during the fourth calendarquarter of 2006:

Series F
|                    | ** ** | ** **              | ** ** | **Redemption Date**   | ** ** |
|--------------------|------------|-------------------------|------------|----------------------------|------------|
| **Month**          | ** ** | **Units Redeemed** | ** ** | **NAV Per Unit** | ** ** |
| October 31, 2006   |       | 3,488                   |       | 228.48                     |       |
| November 30, 2006  |       | 1,488                   |       | 228.99                     |       |
| December 31,  2006 |       | 2,844                   |       | 230.98                     |       |
|               |       |                    |       |                       |       |
| Total              |       | 7,820                   |       |                       |       |

 

Series A
|                    | ** ** | ** **              | ** ** | **Redemption Date**   | ** ** |
|--------------------|------------|-------------------------|------------|----------------------------|------------|
| **Month**          | ** ** | **Units Redeemed** | ** ** | **NAV Per Unit** | ** ** |
| October 31, 2006   |       | 3,684,532               |       | 0.9527                     |       |
| November 30,  2006 |       | 4,975,873               |       | 0.9548                     |       |
| December 31,  2006 |       | 4,009,547               |       | 0.9625                     |       |
|               |       |                    |       |                       |       |
| Total              |       | 12,669,952              |       |                       |       |

 

Series I
|                    | ** ** | ** **              | ** ** | **Redemption Date**   | ** ** |
|--------------------|------------|-------------------------|------------|----------------------------|------------|
| **Month**          | ** ** | **Units Redeemed** | ** ** | **NAV Per Unit** | ** ** |
| October 31, 2006   |       | 4,630,976               |       | 0.9881                     |       |
| November 30,  2006 |       | n/a                     |       | n/a                        |       |
| December 31,  2006 |       | n/a                     |       | n/a                        |       |
|               |       |                    |       |                       |       |
| Total              |       | 4,630,976               |       |                       |       |

 

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**Item 6:       Selected Financial Data**

The followingselected financial data has been derived from the audited financial statementsof the Partnership:
| ** **                          | ** ** | **For the Year** | ** ** | **For the Year** | ** ** | **For the Year** | ** ** | **For the Year** | ** ** | **For the Year** | ** ** |
|-------------------------------------|------------|----------------------------|------------|----------------------------|------------|----------------------------|------------|----------------------------|------------|----------------------------|------------|
| ** **                          | ** ** | **Ended**                  | ** ** | **Ended**                  | ** ** | **Ended**                  | ** ** | **Ended**                  | ** ** | **Ended**                  | ** ** |
| ** **                          | ** ** | **December 31,**      | ** ** | **December 31,**      | ** ** | **December 31,**      | ** ** | **December 31,**      | ** ** | **December 31,**      | ** ** |
| **Income Statement Data** | ** ** | **2006**                   | ** ** | **2005**                   | ** ** | **2004**                   | ** ** | **2003**                   | ** ** | **2002**                   | ** ** |
|                                |       |                       |       |                       |       |                       |       |                       |       |                       |       |
| Revenues:                           |       |                       |       |                       |       |                       |       |                       |       |                       |       |
|                                |       |                       |       |                       |       |                       |       |                       |       |                       |       |
| Trading Profit  (Loss)              |       |                       |       |                       |       |                       |       |                       |       |                       |       |
| Realized                            |       | $                          | 16,620,657 |                       | $          | 680,616                    |       | $                          | 8,179,826  |                       | $          | 13,824,221 |   | $ | 3,063,425 |   |
| Change in Unrealized                |       | 2,030,261                  |       | 1,837,104                  |       | (700,154                   | )          | (44,489                    | )          | 2,373,002                  |       |
| Settlement Proceeds                 |       | —                     |       | —                     |       | —                     |       | —                     |       | 1,346,689                  |       |
| Total Trading Profit                |       | 18,650,918                 |       | 2,517,720                  |       | 7,479,672                  |       | 13,779,732                 |       | 6,783,116                  |       |
|                                |       |                       |       |                       |       |                       |       |                       |       |                       |       |
| Investment  Income:                 |       |                       |       |                       |       |                       |       |                       |       |                       |       |
|                                |       |                       |       |                       |       |                       |       |                       |       |                       |       |
| Interest                            |       | 12,178,428                 |       | 8,910,897                  |       | 1,297,826                  |       | 496,656                    |       | 801,151                    |       |
|                                |       |                       |       |                       |       |                       |       |                       |       |                       |       |
| Expenses:                           |       |                       |       |                       |       |                       |       |                       |       |                       |       |
| Brokerage Commissions               |       | 17,712,085                 |       | 17,973,653                 |       | 5,725,678                  |       | 3,601,088                  |       | 3,571,969                  |       |
| Profit Shares                       |       | 2,783,961                  |       | 1,266,141                  |       | 1,581,140                  |       | 1,998,129                  |       | 746,510                    |       |
| Administrative Fees                 |       | 615,580                    |       | 622,238                    |       | 205,144                    |       | 124,175                    |       | 123,171                    |       |
| Incentive Override                  |       | —                     |       | —                     |       | —                     |       | 805,634                    |       | 68,966                     |       |
| Total Expenses                      |       | 21,111,626                 |       | 19,862,032                 |       | 7,511,962                  |       | 6,529,026                  |       | 4,510,616                  |       |
|                                |       |                       |       |                       |       |                       |       |                       |       |                       |       |
| Net Investment  Loss                |       | (8,933,198                 | )          | (10,951,135                | )          | (6,214,136                 | )          | (6,032,370                 | )          | (3,709,465                 | )          |
|                                |       |                       |       |                       |       |                       |       |                       |       |                       |       |
| Net Income  (Loss)                  |       | $                          | 9,717,720  |                       | $          | (8,433,415                 | )          | $                          | 1,265,536  |                       | $          | 7,747,362 |   | $ | 3,073,651 |   |

 
| ** **                         | ** ** | **December 31,** | ** **  | **December 31,** | ** ** | **December 31,** | ** ** | **December 31,** | ** **  | **December 31,** | ** ** |
|------------------------------------|------------|-----------------------|-------------|-----------------------|------------|-----------------------|------------|-----------------------|-------------|-----------------------|------------|
| **Balance Sheet Data**   | ** ** | **2006**              | ** **  | **2005**              | ** ** | **2004**              | ** ** | **2003**              | ** **  | **2002**              | ** ** |
|                               |       |                  |        |                  |       |                  |       |                  |        |                  |       |
| Partnership Net  Asset Value       |       | $                     | 227,349,345 |                  | $          | 268,585,867           |       | $                     | 246,428,990 |                  | $          | 48,655,272 |   | $ | 46,942,277 |   |
| Net Asset Value  per Series F Unit |       | $                     | 230.98      |                  | $          | 221.81                |       | $                     | 230.10      |                  | $          | 233.12 |   | $ | 198.48 |   |
| Net Asset Value  per Series A Unit |       | $                     | 0.9625      |                  | $          | 0.9264                |       | $                     | 0.9615      |                  | n/a        |   | n/a |   |
| Net Asset Value per  Series I Unit |       | $                     | 1.0010      |                  | $          | 0.9385                |       | $                     | 0.9478      |                  | n/a        |   | n/a |   |

 

MONTH-ENDNET ASSET VALUE PER SERIES F (ORIGINAL UNIT)

 
| ** ** | ** ** | **Jan.** | ** ** | **Feb.** | ** ** | **Mar.** | ** ** | **Apr.** | ** ** | **May** | ** ** | **June** | ** ** | **July** | ** ** | **Aug.** | ** ** | **Sept.** | ** ** | **Oct.** | ** ** | **Nov.** | ** ** | **Dec.** | ** ** |
|------------|------------|----------|------------|----------|------------|----------|------------|----------|------------|---------|------------|----------|------------|----------|------------|----------|------------|-----------|------------|----------|------------|----------|------------|----------|------------|
| 2002       |       | $        | 179.13     |     | $          | 173.22   |       | $        | 172.71     |    | $          | 171.39   |       | $        | 176.93     |     | $          | 186.23    |       | $        | 189.41     |     | $          | 198.31   |       | $ | 203.27 |   | $ | 196.83 |   | $ | 190.21 |   | $ | 198.48 |   |
| 2003       |       | $        | 209.82     |     | $          | 218.58   |       | $        | 208.20     |    | $          | 209.93   |       | $        | 220.27     |     | $          | 217.22    |       | $        | 213.38     |     | $          | 212.16   |       | $ | 213.21 |   | $ | 225.11 |   | $ | 224.93 |   | $ | 233.12 |   |
| 2004       |       | $        | 238.09     |     | $          | 245.80   |       | $        | 244.21     |    | $          | 233.60   |       | $        | 230.71     |     | $          | 222.33    |       | $        | 220.06     |     | $          | 217.70   |       | $ | 217.77 |   | $ | 221.80 |   | $ | 229.90 |   | $ | 230.10 |   |
| 2005       |       | $        | 222.30     |     | $          | 224.75   |       | $        | 225.37     |    | $          | 218.90   |       | $        | 219.29     |     | $          | 221.99    |       | $        | 218.32     |     | $          | 221.45   |       | $ | 221.00 |   | $ | 218.52 |   | $ | 222.81 |   | $ | 221.81 |   |
| 2006       |       | $        | 226.51     |     | $          | 224.92   |       | $        | 229.05     |    | $          | 236.59   |       | $        | 235.57     |     | $          | 234.40    |       | $        | 229.73     |     | $          | 224.58   |       | $ | 223.58 |   | $ | 228.48 |   | $ | 228.99 |   | $ | 230.98 |   |

 

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**GLOBALHORIZONS I L.P.December 31, 2006**

*Type ofPool:* Multi-Advisor/Publicly-Offered/Non-“Principal Protected”(1)*Inception of Trading:* January 4,1994*Aggregate Subscriptions:*   $578,345,672*Current Capitalization: * $227,349,345*Worst Monthly Drawdown(2): *(7.13)%  (11/01)*Worst Peak-to-Valley Drawdown(3): *(13.93)%  (11/01-5/02)

*Net AssetValue per Series F (original unit), December 31, 2006:*   $230.98

**Monthly Rates of Return(4)**

 
| **Month**                      | ** ** | **2006** | ** ** | **2005** | ** ** | **2004** | ** ** | **2003** | ** ** | **2002** | ** ** |
|--------------------------------|------------|----------|------------|----------|------------|----------|------------|----------|------------|----------|------------|
| January                        |       | 2.12     | %          | (3.39    | )%         | 2.13     | %          | 5.71     | %          | (3.65    | )%         |
| February                       |       | (0.70    | )          | 1.10     |       | 3.24     |       | 4.17     |       | (3.30    | )          |
| March                          |       | 1.84     |       | 0.28     |       | (0.65    | )          | (4.75    | )          | (0.30    | )          |
| April                          |       | 3.29     |       | (2.87    | )          | (4.34    | )          | 0.83     |       | (0.77    | )          |
| May                            |       | (0.43    | )          | 0.18     |       | (1.24    | )          | 4.92     |       | 3.24     |       |
| June                           |       | (0.50    | )          | 1.23     |       | (3.63    | )          | (1.38    | )          | 5.26     |       |
| July                           |       | (1.99    | )          | (1.65    | )          | (1.02    | )          | (1.77    | )          | 1.71     |       |
| August                         |       | (2.24    | )          | 1.43     |       | (1.07    | )          | (0.57    | )          | 4.70     |       |
| September                      |       | (0.45    | )          | (0.20    | )          | 0.04     |       | 0.49     |       | 2.50     |       |
| October                        |       | 2.19     |       | (1.12    | )          | 1.85     |       | 5.58     |       | (3.17    | )          |
| November                       |       | 0.22     |       | 1.96     |       | 3.65     |       | (0.08    | )          | (3.36    | )          |
| December                       |       | 0.87     |       | (0.45    | )          | 0.09     |       | 3.64     |       | 4.35     |       |
|                           |       |     |       |     |       |     |       |     |       |     |       |
| Compound Annual Rate of Return |       | 4.13     | %          | (3.60    | )%         | (1.29    | )%         | 17.45    | %          | 6.75     | %          |

 

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(1) Pursuant toapplicable CFTC regulations, a “Multi-Advisor” Partnership is defined as onethat allocates no more than 25% of its trading assets to any singlemanager.  Certain partnerships, includingpartnerships sponsored by BlackRock, are structured so as to guarantee toinvestors that their investment will be worth no less than a specified amount(typically, the initial purchase price) as of a date certain after the date ofinvestment.  The CFTC refers to suchPartnerships as “principal protected.” The Partnership has no such feature.

(2) Worst MonthlyDrawdown represents the largest negative Monthly Rate of Return experiencedsince January 1, 2001 by Series F of the Partnership; a Drawdown is measured onthe basis of month-end Net Asset Value only, and does not reflect intra-monthfigures.

(3) WorstPeak-to-Valley Drawdown represents the greatest percentage decline sinceJanuary 1, 2001 from a month-end cumulative Monthly Rate of Return without suchcumulative Monthly Rate of Return of Series F being equaled or exceeded as of asubsequent month-end. For example, if the Monthly Rate of Return was (1)% ineach of January and February, 1% in March and (2)% in April, the Peak-to-ValleyDrawdown would still be continuing at the end of April in the amount ofapproximately (3)%, whereas if the Monthly Rate of Return had beenapproximately 3% in March, the Peak-to-Valley Drawdown would have ended as ofthe end of February at approximately the (2)% level.

(4) Monthly Rateof Return is the net performance of Series F of the Partnership during themonth of determination (including interest income and after all expenses havebeen accrued or paid) divided by the total equity of the Partnership as of thebeginning of such month.

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**Item 7:   Management’s Discussion and Analysis ofFinancial Condition and Results of Operations**

***OperationalOverview; Advisor Selections***

The Partnership’sresults of operations depend on BlackRock’s ability to select Advisors, and theAdvisors’ ability to trade profitably. BlackRock’s selection procedures, aswell as the Advisors’ trading methods, are confidential, so that substantiallythe only available information relevant to the Partnership’s results ofoperations is its actual performance record to date.  However, because of the speculative nature ofits trading, the Partnership’s past performance is not necessarily indicativeof its future results.

BlackRock’sdecision to terminate or reallocate assets among Advisors is based on acombination of factors. Advisors are, in general, terminated primarily forunsatisfactory performance, but other factors — for example, a change inBlackRock’s or an Advisor’s market outlook, apparent deviation from announcedrisk control policies,  changes inprincipals, commitment of resources to other business activities, etc. — mayalso have a role in the termination or reallocation decision.  The market judgment and experience ofBlackRock’s principals is an important factor in its allocation decisions.

BlackRock has notimetable or schedule for making Advisor changes or reallocations, andgenerally makes a medium- to long-term commitment to all Advisorsselected.  In particular, BlackRock hasto date, made infrequent reallocations of trading assets and adjustments in theAdvisor combinations for the Partnership. However, there can be no assurance as to the frequency or number ofAdvisor changes that may take place in the future, or as to how long any of thecurrent Advisors will continue to manage assets for the Partnership.

***Resultsof Operations***

General

BlackRock believesthat multi-advisor futures funds should be regarded as medium- to long-term (*i.e.*, three to five year) investments, but it is difficultto identify trends in the Partnership’s operations and virtually impossible tomake any predictions regarding future results based on the results todate.  An investment in the Partnershipmay be less successful over a longer than a shorter period.

Markets withsustained price trends tend to be more favorable to managed futures investmentsthan whipsaw, choppy markets, but (i) this is not always the case,(ii) it is impossible to predict when price trends will occur and(iii) different Advisors are affected differently by trending markets aswell as by particular types of trends.

BlackRock attemptsto control credit risk in the Partnership’s futures, forward and optionstrading by clearing trading only through MLPF&S.  MLPF&S acts solely as a clearing brokeror counterparty to the Partnership’s trades; it does not advise with respectto, or direct, any such trading.

BlackRock attemptsto control the market risk inherent in the Partnership’s trading by BlackRock’smulti-advisor strategy and Advisor selections. BlackRock reviews the positions acquired by the Advisors on a dailybasis in an effort to determine whether the overall positions of thePartnership may have become what BlackRock determines as being excessivelyconcentrated in a limited number of markets — in which case BlackRock may, asof the next month or quarter-end, adjust the Partnership’s Advisor combinationand/or allocations so as to attempt to reduce the risk of suchover-concentration occurring in the future.

BlackRock mayconsider making distributions to investors under certain circumstances (forexample, if substantial profits are recognized); however, BlackRock has notdone so to date and does not presently intend to do so.

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***PerformanceSummary***

*2006*
|                | ** ** | **Total Trading** | ** ** |
|----------------|------------|------------------------|------------|
| ** **     | ** ** | **Profit (Loss)** | ** ** |
|           |       |                   |       |
| Stock Indices  |       | $                      | 11,185,920 |   |
| Metals         |       | 8,770,349              |       |
| Currencies     |       | 1,175,704              |       |
| Energy         |       | (87,580                | )          |
| Interest Rates |       | (183,363               | )          |
| Agriculture    |       | (2,210,112             | )          |
|           |       | $                      | 18,650,918 |   |

 

ThePartnership’s overall trading performance was profitable with gains in thestock indices, metals and currencies sectors contributing to the profits.

Thelargest profits were posted in the stock indices sector.  Trading in stock indices also posted gainsearly in the year. Strong domestic and international markets contributed toperformance. The increased volatility in the European markets providedincreased opportunities for short-term trend followers. Mid-year trading in thestock indices sector contributed to losses due to trading volatility and thebelief that additional U.S. rate hikes would occur. The sector finished theyear with strong profits as the Dow Jones Industrial Average and the S&P500 Index climbed to their highest levels. The Democratic victory in the U.S. elections and strong corporate earningshelped pushed the stock indices higher. Strong year-end home sales contributed to profits as well.

Tradingin the metals sector proved profitable for the Partnership.  Metals rallied due to base and precious metalholdings. Aluminum and zinc both rallied early in the year due to global growthand supply issues. Precious and base metals contributed to performance throughlong positions in gold, silver and copper as demand increased.  Gold rallied above $650 per ounce and copperrallied on strong global growth, particularly booming demand from China andpotential mining disruptions. Silver also contributed to profits, based onspeculation that Barclays bank would offer a Silver Exchange-Traded Fund(ETF).  Gold continued to rally towardsthe end of the year as jewelers increased inventory for the holidays and asIndia began its wedding season.  However,towards year-end other metals declined as copper was down due to highinventories which traders took as weakening demand.

Tradingin the currencies sector also contributed to profits primarily due to strongprofits in the latter part of the year. Foreign exchange contributed positivelyto the Partnership as the U.S. dollar weakened due to the continuation ofDecember’s carry trade reversal and the continued expectation for the slowdownin Federal Funds rate increases by the U.S. Federal Reserve. Contributing toperformance were long Canadian dollar and British pound positions, whiledetracting from performance were positions in the Euro and Swiss franc. Foreignexchange detracted due to strong reversals in March.  Long exposures to the Mexican peso, Japaneseyen, Canadian dollar and the British pound during choppy market conditions allcontributed to losses.  The U.S. dollarfell based on narrowing interest rate differentials and anticipation that theU.S. Federal Reserve would soon end its rate hike cycle in mid-year. Slowergrowth reversed the chance of a rate hike in the U.S., which negativelyimpacted the U.S. dollar. The British pound also gained against the U.S. dollaron speculation the interest-rate gap between Britain and the U.S. wouldnarrow.  Profits were realized the latterpart of the year by being short the U.S. dollar, particularly against theAustralian dollar which rose as speculation that the Reserve Bank of Australiawould raise interest rates a third time in 2006.

Tradingin the energy sector posted slight losses for the Partnership.  Crude oil rallied due to geopolitical issuesbut gains were not enough to offset losses from the decline in refinedproducts, such as unleaded gasoline and heating oil. Geopolitical issues led toincreased volatility within the sector and caused gasoline prices to surge assupply decreased reversing the downward price trend experienced earlier in thefirst quarter.  The energy sector postedmoderate gains for the second quarter. Energy was then flat through mid-year asprices retreated off recent highs. Long positions in crude oil continued tocontribute to profits, while short positions in natural gas caused losses asprices spiked.  Crude oil futures rosesharply early in the third quarter under the fear that fighting would spreadthroughout the

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Middle East, butlater sold-off causing small losses. Natural gas, also rallied early in thethird quarter as demand for electricity spiked during the heat wave in the U.S.Crude oil was down due to the end of the driving season in the third quarterand decreased tensions with Iran. Natural gas plummeted as mild weather reduceddemand for the fuel from power generators. Crude declined despite OPEC pledging to cut daily production.  Additionally, above average temperatures inthe U.S. led to higher than average stockpiles and further depressedprices.   At year-end the energy sectorcontributed to profits although not enough to offset losses realized most ofthe year. Profits in the last quarter were generated through short positions inheating oil, natural gas and crude oil. Heating oil prices dropped and heating oil futures fell as mild weatherin the U.S. continued.

Theinterest rate sector also posted losses despite consistent profits through thefirst half of the year.  Short positionsin Eurodollars, the front end of the U.S. curve, German bunds, Japanesegovernment bonds and U.S. Treasuries all drove performance. The short positionsin U.S. Treasuries profited due to higher interest rates as a result ofincreased inflationary pressure and as markets declined on stronger thanexpected consumer confidence and rising inflationary fears.  Performance was driven in the fixed incomesector through short positions in global interest rates, specifically shortpositions to U.K. gilts and German bunds. Short positions in the Euro alsocontributed to profits due to speculation that the European Central Bank wouldraise rates throughout the year. Short exposures to global interest rates,particularly Japan and Europe, slightly detracted from gains mid-year as globalbond prices rallied. The beginning of the third quarter proved to be adifficult environment for the Partnership as speculation over the U.S. interestrate policy and geo-political events created an environment of heightenedvolatility and a reversal of some larger long-term trends. Fixed income marketsrallied on expectations that further rate hikes would be put on hold as theU.S. economy slowed. This reversed the downward trend in the sector, resultingin losses through exposures to global interest rates. Treasury yields declinedon speculation the U.S. Federal Reserves’ previous rate increases would proveso damaging to the housing market that the economic growth would slow moresharply than expected. Poor performance was also seen through short positionsin the U.S. 5 and 10 year Treasury notes and to the 30 year Treasury bond.European notes declined on speculation that the European Central Bank wouldraise interest rates further to stem inflation. U.S. Treasuries fell to their first December lost in five years amidevidence the economy was rebounding from two quarters of slowing growth.  Stronger than expected reports on home sales,consumer confidence and manufacturing led investors to pare expectations forinterest-rate cuts by the Federal Reserve in 2007.

Theagricultural sector was the worst performing sector for the Partnership despiteslight gains late in the year.  Shortpositions in coffee and long positions in corn detracted from performance. Somelosses were mitigated through long positions in sugar as demand grew forethanol, a sugar by-product. Detracting from performance were long exposures tothe soybean complex.  Contributingslightly in March were gains resulting from short positions in coffee and themeat complex as prices continued to decrease. Short positions in cotton profited as prices declined.  However, small losses occurred across othermarkets due to choppy conditions. Exposures to corn, cattle, and sugar addedlosses. Long positions to corn and wheat declined as prices declined based onweather and harvest expectations. Cocoa detracted from performance as itretreated from its upward trend and reversed significantly as market participantsthought recent highs were based merely on speculative buying, rather than onsupply and demand conditions. U.S. soybean and corn crops improved as rainsrelieved stress caused by weeks of dry weather. These gains were mitigatedthrough short positions in hogs and cattle and long exposures to the graincomplex. Corn and soybean prices rose over 13% for the month of September, themost since December 2005, due to rainy weather in the U.S. Midwest. Sugar, thebest-performing commodity in 2005, dropped significantly from February asproduction expanded in Brazil and India, the world’s biggest cane growers.Soybeans rose as wheat and corn threatened to reduce global plantings ofsoybeans.  Some of the price increases insoybeans were attributed to the increase in corn prices, indicating thatfarmers may plant more corn and fewer soybeans in 2007.

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*2005*
|                | ** ** | **Total Trading** | ** ** |
|----------------|------------|------------------------|------------|
| ** **     | ** ** | **Profit (Loss)** | ** ** |
|           |       |                   |       |
| Metals         |       | $                      | 6,047,758  |   |
| Stock Indices  |       | 4,752,243              |       |
| Interest Rates |       | 1,606,865              |       |
| Energy         |       | 1,017,906              |       |
| Agriculture    |       | (554,215               | )          |
| Currencies     |       | (10,352,837            | )          |
|           |       | $                      | 2,517,720  |   |

 

Althoughthe Partnership had a net loss for the year ended December 31, 2005 thePartnership’s overall trading performance was profitable with trading in metalsand stock indices contributing the most profits.

Tradingin the metals sector posted the most profits for the year.  Long positions in base and precious metalscontributed to profits early in the year but detracted from performance in thesecond quarter.  Long metal positions inthe third quarter, specifically copper, contributed to profits as global growthincreased speculation that demand and therefore, prices would increase.  Metals continued their upward trend throughthe latter part of the year as demand remained strong for base and preciousmetals.

Tradingin stock indices posted solid trading profits as well for the year despitelosses posted in the first half of the year. Losses occurred early in the year due to a trend reversal from longglobal equities to short global equities. Trading in stock indices contributed positively to performance in thesecond half of the year with long positions in global equities contributing themost as global markets rallied.  Tradingin the Nikkei, DAX and European equities posted strong gains as they rallied atyear end.

Theinterest rate sector posted gains for the year primarily due to profits postedin the first half of the year despite this sector detracting from performancefor the Partnership in the second half of the year.  In the beginning of the year the interest ratesector was the best performing sector as the Partnership benefited from longU.S. dollar positions versus the Euro and long Euro and Japanese fixed incomes.  Long positions in the ten-year German bundalso contributed to gains. Mid-year a rally in bond prices attributed to lossesas did long positions in Japanese and European government bonds.  Trading in German bunds further detractedfrom performance.   Gains were posted inOctober primarily due to short exposures to U.S. and European yield curves, asbond prices fell over concerns that the central banks would continue to raiserates; however these profits were not enough to outweigh losses postedthroughout the latter part of the fourth quarter.  Interest rates detracted as the U.S. yieldcurve inverted, resulting in a challenging environment for trading managers.Additionally, the market perception that the Federal Reserve would end itsinterest rate increase sooner rather than later sparked a sell off of the U.S.dollar.  Furthermore, many globallong-term interest rates moved lower, causing negative returns for select shortpositions, particularly to the German bund and British gilt.

Tradingin the energy sector also posted gains for the Partnership despite the sectordetracting from performance in the fourth quarter. Gains were experienced inthe energy sector as the Partnership benefited from long positions in crude oiland gas as these industries profited. During the second quarter, crude oil and heating oil declined as crudeoil fell in price, which negatively impacted trend followers.  Trading in the energy sector posted thelargest gains in the third quarter.  Longenergy positions in the entire energy complex, as well as a rally in the energysector due to Hurricane Katrina attributed to those gains.  Natural gas retreated from its record highprices set in September, negatively impacting trading managers. Natural gascontinued its decline throughout the fourth quarter detracting fromperformance.

Tradingin the agricultural sector posted losses for the Partnership for the year, withthe first and latter part of the year contributing to profits and mid-yeardetracting from performance.  During thefirst quarter, gains were experienced from long positions in cattle and hogmarkets.  Gains were posted due tocoffee, which experienced a lack of supply and a growing demand.   Gains in exposure to hogs and soybeans werenot enough to offset trading losses in other commodities.  Long exposure to soymeal further attributedto losses.  Short exposure to corn andlong exposure to London coffee detracted from performance in the thirdquarter.  Agriculture posted small gainsat the end of the year as long sugar positions rallied due to an expectation ofreduced supplies.

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Tradingin the currency sector posted the largest losses for the Partnership for theyear, despite small gains posted in the second quarter.  Losses in the beginning of the year were dueto a trend reversal from short U.S. dollar positions to long U.S. dollarpositions.  Long Japanese yen and Swissfranc positions also experienced losses. With the U.S. Federal Reserve expressing concern about inflation,investors predicted that interest rates and the U.S. dollar would rise.  This caused losses as investors fled fromemerging currencies.  In the secondquarter, long positions in the British pound and the Australian dollarcontributed to gains.  Short positions tothe British pound and Swiss franc enabled the Partnership to capitalize ontrend reversals in the market in the latter half of the second quarter.  China’s revaluation of the yuan causedvolatility across the currency markets. The U.S. dollar weakened based on higher oil prices and the potentialFederal Reserve slowdown in September. British pounds detracted from performance in the foreign sector.  The U.S. dollar rallied against most majorcurrencies, primarily the yen, which attributed to losses.  Higher yielding carry trades reversed causinglosses to be posted as well.  The yearended with currencies on the upswing. Short Euro and Swiss franc and long Mexican peso positions contributedto performance.

*2004*
|                | ** ** | **Total Trading** | ** ** |
|----------------|------------|------------------------|------------|
| ** **     | ** ** | **Profit (Loss)** | ** ** |
|           |       |                   |       |
| Interest Rates |       | $                      | 2,472,856  |   |
| Energy         |       | 2,150,891              |       |
| Stock Indices  |       | 1,358,529              |       |
| Currencies     |       | 1,064,855              |       |
| Agriculture    |       | 537,117                |       |
| Metals         |       | (104,576               | )          |
|           |       | $                      | 7,479,672  |   |

 

ThePartnership’s overall trading performance was profitable with gains in theinterest rate and energy sector contributing the most profits.

Tradingin the interest rate sector was the most profitable for the Partnership.  Small gains were posted in the first quartergenerated from various positions at the short end of the yield curve in Canadaand Europe.  In the second quarter, therise of the interest rates contributed to the losses posted.  Bond prices rallied in the third quarter,which contributed to gains in the sector. U.S. treasury markets reacted positively to employment data releasedduring the fourth quarter causing gains to be posted.

Theenergy sector posted gains throughout the year. As temperatures remained below normal for the northeastern andmidwestern United States, and OPEC put limitations on output, profits rose inthe energy sector.  Crude oil contributedmostly to the profits generated during the second quarter.  Crude oil continued its rally in the thirdquarter and continued that upward trend in to the fourth quarter.

Stockindex trading posted gains for the year despite small losses in the second andthird quarters.  The main drivers to performanceearly in the first quarter were the Xetra DAX, the S&P 500 and the TaiwanStock Indices.   Slight losses posted inthe second quarter were primarily due to worldwide concerns about the imminentrate increases in the United States. During the third quarter, major global equity markets recorded sharpdeclines with a lack of volatility, then saw a slight rally late in thequarter.  Stock indices proved profitablein the fourth quarter with European equities outperforming U.S. and Asianmarkets.

Thecurrencies sector posted a net gain for the year.   Gains were posted in the first quarter whilecurrency trading was volatile as the U.S. dollar fell to four year lows againstthe Japanese yen.  Losses were posted inthe second quarter from positions in the Australian dollar, Swiss franc,British pound and other major markets. The sector posted a loss for the third quarter in a volatile tradingmarket.  The currency sector posted astrong gain for the month of October with downward pressure on the U. S. dollarresumed as higher oil prices and a close presidential election pushed the greenback lower.  The sector continued itsupward trend in the remaining fourth quarter.

Tradingin the agricultural commodities sector posted gains for the year.  The sector was profitable for the firstquarter as grain markets continued to extend their long-term rally, with corn,soybeans, and soymeal being

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pushed higher onstrong demand from Asia and lower estimate of supply from South America inMarch.  A loss was posted in the sectorfor the second quarter, despite small gains posted in early in thequarter.  Soybean prices fell sharply asideal weather conditions persisted in the Midwest and exports failed tomaterialize.  The sector posted slightgains in the third quarter as the U.S. Department of Agriculture gave low cropestimates based on forecasts of an early freeze and slow crop development.   Trading in agricultural commoditiescontinued its downward trend in the fourth quarter as the USDA reported a cropwell above market expectations, pushing grain prices lower.  Cocoa trading was volatile as the politicalsituation in the Ivory Coast deteriorated.

Themetals sector posted a loss for the year, despite it being the high performerearly in the year.  In the first quarter,copper rose to its highest price in more than six years and gold climbed tohighs not seen since 1988.  Strong demandfor copper and continued speculative interest pushed the market to a seven-yearhigh.  The second quarter was volatilewith aluminum as the main cause for losses ending in May and industrial metalsfell in June.  The metals sector postedthe largest losses for the third quarter. Gains from copper could not offset losses in nickel and aluminum.  The sector posted gains in the fourth quarteras precious metals continued their upward trend.

***VariablesAffecting Performance***

The principalvariable, which determines the net performance of the Partnership, is grossprofitability.

Duringmost periods set forth under “Selected Financial Data,” the interest rates inmany countries were at unusually low levels. The low interest rates in the United States (although higher than inmany other countries) negatively impacted revenues because interest income istypically a component of the Partnership’s profitability.  In addition, low interest rates arefrequently associated with reduced fixed income market volatility, and instatic markets the Partnership’s profit potential generally tends to bediminished.  On the other hand, duringperiods of higher interest rates, the relative attractiveness of a high riskinvestment such as the Partnership may be reduced as compared to high yieldingand much lower risk fixed income investments.

ThePartnership’s Brokerage Commissions and Administrative Fees are a constantpercentage of the Partnership’s assets allocated to trading.  The only Partnership costs (other thancurrency trading costs) which are not based on a percentage of the Partnership’sassets (allocated to trading or total) are the Profit Shares payable to theAdvisors on an Advisor-by-Advisor basis and the Incentive Override (terminatedin 2004).  Gross profitability is in turnaffected by the percentage of the Partnership’s assets allocated totrading.  During periods when ProfitShares are a high percentage of net trading gains, it is likely that there hasbeen substantial performance non-correlation among the Advisors (so that thetotal Profit Shares paid to those Advisors which have traded profitably are ahigh percentage, or perhaps even in excess, of the total profits recognized, asother Advisors have incurred offsetting losses, reducing overall trading gainsbut not the Profit Shares paid to the successful Advisors) suggesting thelikelihood of generally trendless, non-consensus markets.

Unlike many investment fields, there is no meaningful distinction inthe operation of the Partnership between realized and unrealized profits.  Most of the contracts traded by thePartnership are highly liquid and can be closed out at any time.

Exceptin unusual circumstances, factors (*e.g.* regulatoryapprovals, cost of goods sold, employee relations and the like) which oftenmaterially affect an operating business have virtually no impact on thePartnership.

***Liquidity;Capital Resources***

The Partnershipborrows only to a limited extent and only on a strictly short-term basis inorder to finance losses on non-U.S. dollar denominated trading positionspending the conversion of the Partnership’s U.S. dollar deposits.  These borrowings are at a prevailingshort-term rate in the relevant currency. They have been immaterial to the Partnership’s operation to date and areexpected to continue to be so.

Substantially allof the Partnership’s assets are held in cash except for the net unrealizedprofit on open positions.  The Net AssetValue of the Partnership’s cash is not affected by inflation.  However, changes in interest rates couldcause periods of strong up or down price trends, during which the Partnership’sprofit potential generally increases. Inflation in commodity prices could also generate price movements, whichthe Advisors’ strategies might successfully follow.

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Except in veryunusual circumstances, the Partnership should be able to close out any or allof its open trading positions and liquidate any or all of its securitiesholdings quickly and at market prices. This permits an Advisor to limit losses as well as reduce marketexposure on short notice should its strategies indicate doing so.  In addition, because there generally is areadily available market value for the Partnership’s positions and assets, thePartnership’s monthly Net Asset Value calculations typically are precise, andinvestors need only wait ten business days to receive the full redemptionproceeds of their Units.

***Off-Balance Sheet Arrangementsand Tabular Disclosure of Contractual Obligations***

ThePartnership has no applicable disclosure under this Item 7 regardingoff-balance sheet arrangements and tabular disclosure of contractualobligations pursuant to Regulation S-K, Item 303(a)(4) and 303(a)(5),respectively, as the Partnership does not have any off balance sheetarrangements that are likely to have a significant impact on its financialposition or contractual obligations long term in nature.

**Item 7A:****Quantitative and Qualitative Disclosures aboutMarket Risk**

***Introduction***

Past Performance Not Necessarily Indicative of FutureResults

The Partnership is aspeculative commodity pool.  Unlike anoperating company, the risk of market sensitive instruments traded by it isintegral, not incidental, to the Partnership’s main line of business.

Market movements resultin frequent changes in the fair market value of the Partnership’s openpositions and, consequently, in its earnings and cash flows.  The Partnership’s market risk is influencedby a wide variety of factors, including the level and volatility of interestrates, exchange rates, equity price levels, the market value of financialinstruments and contracts, the diversification effects among the Partnership’sopen positions and the liquidity of the markets in which it trades.

The Partnership, underthe direction of its Advisors, rapidly acquires and liquidates both long andshort positions in a wide range of different markets.  Consequently, it is not possible to predicthow a possible future market scenario will affect performance, and thePartnership’s past performance is not necessarily indicative of its futureresults.

Value at Risk is ameasure of the maximum amount which the Partnership could reasonably beexpected to lose in a given market sector. However, the inherent uncertainty of the Partnership’s speculativetrading and the recurrence in the markets traded by the Partnership of marketmovements far exceeding expectations could result in actual trading ornon-trading losses far beyond the indicated Value at Risk or the Partnership’sexperience to date (i.e.*,* “risk of ruin”).  In light of the foregoing, as well as therisks and uncertainties intrinsic to all future projections, the inclusion ofthe quantification in this section should not be considered to constitute anyassurance or representations that the Partnership’s losses in any market sectorwill be limited to Value at Risk or by the Partnership’s attempt to managemarket risk.

Materiality, asused in this section “Quantitative and Qualitative Disclosures About MarketRisk,” is based on an assessment of reasonably possible market movements andthe potential losses caused by such movements, taking into account theleverage, optionality and multiplier features of the Partnership’s marketsensitive instruments.

### ***Quantifying the Partnership’sTrading Value at Risk***

*Quantitative Forward-Looking Statements*

*The following quantitative disclosures regardingthe Partnership’s market risk exposures contain “forward-looking statements”within the meaning of the safe harbor from civil liability provided for suchstatements by the Private Securities Litigation Reform Act of 1995 (set forthin Section 27A of the Securities Act of 1933 and Section 21E of the SecuritiesExchange Act of 1934).  All quantitativedisclosures in this section are deemed to be forward-looking statements forpurposes of the safe harbor, except for statements of historical fact.*

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The Partnership’s riskexposure in the various market sectors traded by the Advisors is quantifiedbelow in terms of Value at Risk.  Due tothe Partnership’s mark-to-market accounting, any loss in the fair value of thePartnership’s open positions is directly reflected in the Partnership’searnings (realized or unrealized) and cash flows (at least in the case ofexchange-traded contracts in which profits and losses on open positions aresettled daily through variation margin).

Exchange maintenancemargin requirements have been used by the Partnership as the measure of itsValue at Risk.  Maintenance marginrequirements are set by exchanges to equal or exceed the maximum loss in thefair value of any given contract incurred in 95% - 99% of the one-day timeperiods included in the historical sample (generally approximately one year)researched for purposes of establishing margin levels.  Maintenance margin levels are established bydealers and exchanges using historical price studies, as well as an assessmentof current market volatility and economic fundamentals, to provide aprobabilistic estimate of the maximum expected near-term one-day pricefluctuation.

In the case of marketsensitive instruments which are not exchange-traded (almost exclusivelycurrencies in the case of the Partnership), the margin requirements for theequivalent futures positions have been used as Value at Risk. In those rarecases in which a futures-equivalent margin is not available, dealers’ marginshave been used.

The fair value of thePartnership’s futures and forward positions does not have any optionalitycomponent. However, certain of the Advisors trade commodity options.  The Value at Risk associated with options isreflected in the following table as the margin requirement attributable to theinstrument underlying each option.

In quantifying thePartnership’s Value at Risk, 100% positive correlation in the differentpositions held in each market risk category has been assumed. Consequently, themargin requirements applicable to the open contracts have been aggregated todetermine each trading category’s aggregate Value at Risk.  The diversification effects resulting fromthe fact that the Partnership’s positions are rarely, if ever, 100% positivelycorrelated, have not been reflected.

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***ThePartnership’s Trading Value at Risk in Different Market Sectors***

The following tables indicate the average, highest and lowest tradingValue at Risk associated with the Partnership’s open positions by marketcategory for the fiscal years 2006 and 2005. During the fiscal year 2006, thePartnership’s average capitalization was $250,940,436. During the fiscal year2005, the Partnership’s average capitalization was $270,409,956.

**Fiscal Year2006**

 
| ** **             | ** ** | **Average**                 | ** ** | **% of Average** | ** ** | **Highest Value** | ** ** | **Lowest Value** | ** ** |
|------------------------|------------|-----------------------------|------------|----------------------------|------------|------------------------|------------|-----------------------|------------|
| **Market Sector** | ** ** | **Value at Risk** | ** ** | **Capitalization**         | ** ** | **At Risk**       | ** ** | **At Risk**      | ** ** |
|                   |       |                        |       |                       |       |                   |       |                  |       |
| Agriculture            |       | $                           | 92,995     |                       | 0.04       | %                      | $          | 251,914               |       | $ | 3,025 |   |
| Currencies             |       | 1,249,947                   |       | 0.50                       | %          | 6,381,088              |       | 245,989               |       |
| Energy                 |       | 354,231                     |       | 0.14                       | %          | 1,696,701              |       | 48,066                |       |
| Interest Rates         |       | 10,737,571                  |       | 4.28                       | %          | 15,740,482             |       | 192,301               |       |
| Metals                 |       | 1,559,263                   |       | 0.62                       | %          | 15,466,941             |       | 50,602                |       |
| Stock Indices          |       | 1,461,903                   |       | 0.58                       | %          | 6,996,574              |       | 48,698                |       |
|                   |       |                        |       |                       |       |                   |       |                  |       |
| TOTAL                  |       | $                           | 15,455,910 |                       | 6.16       | %                      | $          | 46,533,700            |       | $ | 588,681 |   |

 

**Fiscal Year2005**

 
| ** **             | ** ** | **Average**                 | ** ** | **% of Average** | ** ** | **Highest Value** | ** ** | **Lowest Value** | ** ** |
|------------------------|------------|-----------------------------|------------|----------------------------|------------|------------------------|------------|-----------------------|------------|
| **Market Sector** | ** ** | **Value at Risk** | ** ** | **Capitalization**         | ** ** | **At Risk**       | ** ** | **At Risk**      | ** ** |
|                   |       |                        |       |                       |       |                   |       |                  |       |
| Agriculture            |       | $                           | 163,356    |                       | 0.06       | %                      | $          | 453,699               |       | $ | 1,777 |   |
| Currencies             |       | 1,240,840                   |       | 0.46                       | %          | 6,832,670              |       | 43,503                |       |
| Energy                 |       | 292,892                     |       | 0.11                       | %          | 1,030,159              |       | 19,464                |       |
| Interest Rates         |       | 12,222,247                  |       | 4.52                       | %          | 20,179,223             |       | 3,383,516             |       |
| Metals                 |       | 684,801                     |       | 0.25                       | %          | 2,012,007              |       | 44,237                |       |
| Stock Indices          |       | 1,484,741                   |       | 0.55                       | %          | 5,251,655              |       | 279,032               |       |
|                   |       |                        |       |                       |       |                   |       |                  |       |
| TOTAL                  |       | $                           | 16,088,877 |                       | 5.95       | %                      | $          | 35,759,413            |       | $ | 3,771,529 |   |

 

Average, highest and lowest Value at Risk amountsrelate to the month-end amounts for each month-end during the fiscal year.Average Capitalization is the average of the Partnership’s capitalization atthe end of each calendar quarter of fiscal years 2006 and 2005.

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

The face value of the market sector instruments heldby the Partnership is typically many times the applicable maintenance marginrequirement (maintenance margin requirements generally ranging betweenapproximately 1% and 10% of contract face value) as well as many times thecapitalization of the Partnership.  Themagnitude of the Partnership’s open positions creates a “risk of ruin” nottypically found in most other investment vehicles.  Because of the size of its positions, certainmarket conditions, unusual, but historically recurring from time to time, couldcause the Partnership to incur severe losses over a short period of time.  The foregoing Value at Risk table as well asthe past performance of the Partnership give no indication of this “risk ofruin.”

25

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***Non-Trading Risk***

#### *Foreign Currency Balances; Cash on Deposit with MLPF&S*

The Partnership has non-trading market risk on itsforeign cash balances not needed for margin. However, these balances (as well as the market risk they represent) aregenerally immaterial.  The Partnershipcontrols the non-trading exchange rate risk of its foreign currency balances byregularly converting its foreign currency balances back to U.S. dollars on aweekly basis.

The Partnership also has non-trading market risk onthe approximately 90%-95% of its assets which are held in cash atMLPF&S.  The value of this cash isnot interest rate sensitive, but there is cash flow risk in that if interestrates decline so will the cash flow generated on these monies.  This cash flow risk is generallyinsignificant.

***QualitativeDisclosures Regarding Primary Trading Risk Exposures***

*The following qualitative disclosures regarding thePartnership’s market risk exposures, except for (i) those disclosures that arestatements of historical fact and (ii) the descriptions of how the Partnershipmanages its primary market risk exposure, constitute forward-looking statementswithin the meaning of Section 27A of the Securities Act and Section 21E of theSecurities Exchange Act.  The Partnership’sprimary market risk exposures as well as the strategies used by BlackRock andthe Advisors for managing such exposures are subject to numerous uncertainties,contingencies and risks, any one of which could cause the actual results of thePartnership’s risk controls to differ materially from the objectives of suchstrategies.  Government interventions,defaults and expropriations, illiquid markets, the emergence of dominantfundamental factors, political upheavals, changes in historical pricerelationships, an influx of new market participants, increased regulation andmany other factors could result in material losses as well as in materialchanges to the risk exposures and the risk management strategies of thePartnership.  There can be no assurancethat the Partnership’s current market exposure and/or risk managementstrategies will not change materially or that any such strategies will beeffective in either the short- or long-term. Investors must be prepared to loseall or substantially all of their investment in the Partnership.*

Thefollowing were the primary trading risk exposures of the Partnership as ofDecember 31, 2006, by market sector.

**Interest Rates**

Interest rate risk is the principal market exposure ofthe Partnership.  Interest rate movementsdirectly affect the price of futures and forward sovereign futures and forwardbond positions held by the Partnership and indirectly the value of its stockindex and currency positions.  Interestrate movements in one country as well as relative interest rate movementsbetween countries can be expected to materially impact the Partnership’sprofitability.  The Partnership’s primaryinterest rate exposure is to interest rate fluctuations in the United Statesand the other G-7 countries.  However,the Partnership also takes positions in the government debt of smaller nationse.g.*,* New Zealand and Australia.  BlackRock anticipates that G-7 interest rateswill remain the primary market exposure of the Partnership for the foreseeablefuture.

**Currencies**

The Partnership trades in a large number ofcurrencies, and exchange rate risk is a significant market exposure of thePartnership.  The Partnership’s majorexposures have typically been to pricing relationships between the U.S.dollar/Japanese yen, U.S. dollar/Euro and U.S. dollar/British pound positionsas well as U.S. dollar/Canadian dollar, U.S. dollar/Australian dollar and U.S.dollar/Swiss franc.  BlackRock does notanticipate that the risk profile of the Partnership’s currency sector willchange significantly in the future.  Thecurrency trading Value at Risk figure includes foreign margin amounts convertedinto U.S. dollars with an incremental adjustment to reflect the exchange raterisk of maintaining Value at Risk in a functional currency other than U.S.dollars.

**Stock Indices**

The Partnership has significant equity exposure is toG-7 equity index price movements, although as of December 31, 2006, thePartnership’s primary exposures were in the stock indices from Southeast Asiancountries. The Partnership is primarily exposed to the risk of adverse pricetrends or static markets in the major G-7 and Asian indices.

26

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**Metals**

The Partnership’s primary metals market exposure is to fluctuations inthe price of gold and silver. Although certain of the Advisors trade basemetals such as aluminum, nickel, copper and tin, the principal market exposuresof the Partnership have consistently been in the precious metals.  BlackRock anticipates that gold will remainthe primary metal market exposure for the Partnership.

**Agriculture Commodities**

The Partnership’s primary agricultural commoditiesexposure is to agricultural price movements, which are often directly affectedby severe or unexpected weather conditions. Soybeans, grains, livestock and sugar accounted for the substantial bulkof the Partnership’s commodity exposure as of December 31, 2006.  In the past, the Partnership has had materialmarket exposure to orange juice and cotton and may do so again in thefuture.  However, BlackRock anticipatesthat the Advisors will maintain an emphasis on soybeans, grains and sugar, inwhich the Partnership has historically taken its largest positions.

**Energy**

The Partnership’s primary energy market exposure is tonatural gas and oil price movements, often resulting from politicaldevelopments in the Middle East.  Energyprices can be volatile and substantial profits and losses have been and areexpected to continue to be experienced in this market.

***QualitativeDisclosures Regarding Non-Trading Risk Exposure***

The following were the non-trading risk exposures of the Partnership asof December 31, 2006.

**Foreign Currency Balances**

The Partnership’s primary foreign currency balancesare in Japanese yen, British pounds and Euros. The Partnership has minimal exchange rate exposure on these balances.

**U.S. Dollar Balances**

The Partnership holds its U.S. dollars in cash atMLPF&S.  The Partnership hasimmaterial cash flow and interest-rate risk on its cash on deposit withMLPF&S in that declining interest rates would cause the income from suchcash to decline.

### ***Qualitative Disclosures Regarding Means of Managing Risk Exposure***

*Trading Risk*

BlackRock has procedures in place intended to controlmarket risk exposure, although there can be no assurance that they will, infact, succeed in doing so.  Theseprocedures focus primarily on monitoring the trading of the Advisors selectedfrom time to time for the Partnership, and reviewing outstanding positions forover-concentration both on an Advisor-by-Advisor and on an overall Partnershipbasis.  While BlackRock does not itselfintervene in the markets to hedge or diversify the Partnership’s marketexposure, BlackRock may urge Advisors to reallocate positions, or itselfreallocate Partnership assets among Advisors (although typically only as of theend of a month), in an attempt to avoid over-concentration.  However, such interventions are unusual.

At the Advisor level, each Advisor applies its ownrisk management policies to its trading. These policies generally limit the total exposure that may be taken per “riskunit” of assets under management.  Inaddition, many Advisors follow diversification guidelines (often formulated interms of the maximum margin, which they will commit to positions in any onecontract or group of related contracts), as well as imposing “stop-loss” pointsat which open positions must be closed out. Occasionally, Advisors will limitthe market exposure of their Partnership account through acquiring put or calloptions which “collar” the risk of open positions.  However, because of the typically high degreeof liquidity in the markets traded by the Partnership and the expense ofacquiring options, most Advisors rely simply on stop-loss policies, requiringthe liquidation of positions once losses of a certain magnitude have beenincurred.

27

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Certain Advisors treat their risk control policies asstrict rules; others only as general guidelines for controlling risk.

*Non-Trading Risk*

The Partnership controls the non-trading exchange-raterisk of its foreign currency balances by regularly converting these balancesback into U.S. dollars on a weekly basis.

The Partnership has cash flow interest rate risk onits cash on deposit with MLPF&S in that declining interest rates wouldcause the income from such cash to decline. However, a certain amount of cash or cash equivalents must be held bythe Partnership in order to facilitate margin payments and pay expenses andredemptions.  BlackRock does not take anysteps to limit the cash flow risk on its cash held on deposit at MLPF&S.

**Item 8:   Financial Statements and SupplementaryData**

Financialstatements required by this item, including the report of Deloitte & ToucheLLP for the fiscal years ended December 31, 2006, 2005 and 2004, are includedas Exhibit 13.01 to this report.

The followingsummarized quarterly financial information presents the results of operationsfor the three month periods ended March 31, June 30, September 30 and December31, 2006 and 2005.  This information hasnot been audited.

SelectedQuarterly Financial Data (unaudited)BlackRock Global Horizons I L.P.

NetIncome by QuarterEight Quarters through December 31, 2006
| ** **                           | ** ** | **Fourth**  | ** ** | **Third**   | ** ** | **Second**  | ** ** | **First**   | ** ** | **Fourth**  | ** ** | **Third**   | ** ** | **Second**  | ** ** | **First**   | ** ** |
|--------------------------------------|------------|-------------|------------|-------------|------------|-------------|------------|-------------|------------|-------------|------------|-------------|------------|-------------|------------|-------------|------------|
| ** **                           | ** ** | **Quarter** | ** ** | **Quarter** | ** ** | **Quarter** | ** ** | **Quarter** | ** ** | **Quarter** | ** ** | **Quarter** | ** ** | **Quarter** | ** ** | **Quarter** | ** ** |
| ** **                           | ** ** | **2006**    | ** ** | **2006**    | ** ** | **2006**    | ** ** | **2006**    | ** ** | **2005**    | ** ** | **2005**    | ** ** | **2005**    | ** ** | **2005**    | ** ** |
| Total Income  (Loss)                 |       | $           | 12,243,403 |        | $          | (7,213,610  | )          | $           | 12,244,345 |        | $          | 13,554,927  |       | $           | 6,015,390  |        | $          | 3,831,311 |   | $ | 1,418,150 |   | $ | 163,766 |   |
| Total Expenses                       |       | 4,935,983   |       | 4,600,423   |       | 6,167,733   |       | 5,407,206   |       | 5,062,809   |       | 4,903,366   |       | 5,061,337   |       | 4,834,520   |       |
| Net Income (Loss)                    |       | $           | 7,307,420  |        | $          | (11,814,033 | )          | $           | 6,076,612  |        | $          | 8,147,721   |       | $           | 952,581    |        | $          | (1,072,055 | ) | $ | (3,643,187 | ) | $ | (4,670,754 | ) |
|                                 |       |        |       |        |       |        |       |        |       |        |       |        |       |        |       |        |       |
| Net Income (Loss)  per Series A Unit |       | $           | 0.0303     |        | $          | (0.0451     | )          | $           | 0.0230     |        | $          | 0.0285      |       | $           | 0.0035     |        | $          | (0.0032 | ) | $ | (0.0125 | ) | $ | (0.0180 | ) |
| Net Income (Loss)  per Series F Unit |       | $           | 7.46       |        | $          | (10.89      | )          | $           | 5.41       |        | $          | 7.22        |       | $           | 0.78       |        | $          | (1.01 | ) | $ | (3.45 | ) | $ | (4.78 | ) |
| Net Income (Loss)  per Series I Unit |       | $           | 0.0417     |        | $          | (0.0375     | )          | $           | 0.0279     |        | $          | 0.0358      |       | $           | 0.0098     |        | $          | 0.0029 |   | $ | (0.0071 | ) | $ | (0.0134 | ) |
|                                 |       |        |       |        |       |        |       |        |       |        |       |        |       |        |       |        |       |
| Weighted average  units Series A     |       | 147,149,479 |       | 153,655,292 |       | 158,529,087 |       | 168,467,271 |       | 172,909,096 |       | 173,352,786 |       | 158,005,947 |       | 128,388,582 |       |
| Weighted average  units Series F     |       | 157,113     |       | 164,741     |       | 169,015     |       | 176,395     |       | 180,209     |       | 186,169     |       | 188,553     |       | 191,217     |       |
| Weighted average units  Series I     |       | 6,250,746   |       | 9,618,896   |       | 8,945,918   |       | 8,542,897   |       | 8,453,253   |       | 8,203,800   |       | 7,961,079   |       | 7,411,801   |       |

 

Calculation of net income(loss) per weighted average general partner and limited partner unit excludesnet income (loss) allocated to non-unitized interests.

The supplementaryfinancial information (“information about oil and gas producing activities”)specified by Item 302 of Regulation S-K is not applicable.

**Item 9:   Changes in and Disagreements withAccountants on Accounting and Financial Disclosure**

There were nochanges in or disagreements with Deloitte & Touche LLP on accounting orfinancial disclosure.

28

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**Item 9A: Controls and Procedures**

BlackRock, the general partner of the Partnership, with theparticipation of the BlackRock Chief Operating Officer and the Chief FinancialOfficer, has evaluated the effectiveness of the design and operation of itsdisclosure controls and procedures with respect to the Partnership as of andfor the year ended December 31, 2006, and, based on its evaluation, hasconcluded that these disclosure controls and procedures are effective.  Additionally, there were no significantchanges in BlackRock’s internal controls with respect to the Partnership overfinancial reporting which materially affect such internal controls.

**Item 9B: Other Information**

Not Applicable.

29

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**PART III**

**Item 10: Directorsand Executive Officers of the Registrant**

10(a)and 10(b)     Identification ofDirectors and Executive Officers:

The Partnership ismanaged by BlackRock.  Trading decisionsare made by the Advisors on behalf of the Partnership.  BlackRock promotes the Partnership and is itscontrolling persons.

The managers andexecutive officers of the Partnership and BlackRock, with the responsibilityfor the Partnership as of December 31, 2006, and their respective businessbackgrounds are as follows.

**Edward Rzeszowski******           Presidentof the Partnership

**Michael L. Pungello          **Vice President,Chief Financial Officer and Treasurer of the Partnership

**Howard P. Berkowitz         **Managing Director ofBlackRock

EdwardRzeszowski is the President of the Registrant and a Managing Director of theBlackRock Fund of Funds Team (described below) .  His responsibilitiesinclude evaluating potential hedge fund managers and monitoring existingmanagers with a focus on managed futures, macro funds and statisticalarbitrage. Previously, Mr. Rzeszowski was a Director with Merrill Lynch’s fundof funds team.  In this role, he wasresponsible for the selection and analysis of hedge funds with afocus on managed futures, macro funds and statistical arbitrage, andserved as senior hedge fund analyst and Portfolio Manager for the Merrill LynchGlobal Horizons I L.P. Previously, Mr. Rzeszowski was a Senior QuantitativeAnalyst for the Merrill Lynch fund of funds team, responsible for riskmanagement of the managed futures product line. He has held various positions in the finance department of certainMerrill Lynch asset management subsidiaries.  His additional previous workexperience includes OMR Systems Corporation (a financial investmentsservice company), where he was responsible for the consolidation of managedfutures risks. Mr. Rzeszowski earned a Bachelor of Arts degree in economics andfinance from the University of Pittsburgh.

MichaelL. Pungello is Chief Financial Officer of the Registrant and a ManagingDirector of BlackRock.  Mr. Pungello waspreviously the Chief Financial Officer of MLAI. He was First Vice President and Senior Director of Finance for MerrillLynch’s Operations, Services and Technology Group from January 1998 to March1999. Prior to that, Mr. Pungello spent over 18 years with Deloitte &Touche LLP, and was a partner in their financial services practice from June1990 to December 1997. He graduated from Fordham University in 1979 with a Bachelorof Science in Accounting and received his Master’s of Business Administrationin Finance from New York University in 1987.

Howard P. Berkowitz is the Chief Executive Officer andChief Investment Officer of BlackRock’s Fund of Hedge Funds Group and ManagingDirector at BlackRock.  He is a member ofBlackRock’s Management Committee. Mr. Berkowitz joined BlackRock, Inc. in 2003when BlackRock acquired a majority interest in fund of fund manager HPBManagement. Mr. Berkowitz continues to serve as President, CEO and CIO of thatcompany, now named BlackRock HPB Management. Prior to joining BlackRock, Mr. Berkowitz was the founder and managingpartner of HPB Associates, a fund of hedge funds that he initially formed in 1979as a traditional equity hedge fund. In 1967, Mr. Berkowitz co-founded andmanaged Steinhardt, Fine, Berkowitz & Co., one of the earliest successfulentrants in the hedge fund industry.  Mr. Berkowitz served a three-year term as National Chairman of theAnti-Defamation League. He also serves on the boards and investment committeesof the UJA Federation, Wharton Undergraduate School of Finance, SteadmanHawkins Sports Medicine Foundation, Cancer Research Institute, theAnti-Defamation League, and the New York City Ballet. In addition, Mr. Berkowitzcurrently serves as President of the Washington Institute for Near East Policy.Mr. Berkowitz earned a BS degree in economics from the Wharton School of theUniversity of Pennsylvania in 1962, and an MBA degree from New York Universityin 1964.degree from New York University in 1964.

As of December 31,2006, BlackRock’s general partner interest in the Partnership was valued at$2,041,990.

(c)           Identificationof Certain Significant Employees:

None.

30

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(d)           FamilyRelationships:

None.

(e)           BusinessExperience:

See Items 10(a)and 10(b) above.

(f)            Involvementin Certain Legal Proceedings:

None.

(g)           Promotersand Control Persons:

Not applicable.

(h)          Section 16(a) Beneficial OwnershipReporting Compliance:

Not applicable.

(i)            Codeof Ethics:

BlackRock hasadopted a code of ethics, as of the end of the period covered by this report,which applies to the Partnership’s principal executive officer and principalfinancial officer or persons performing similar functions.  A copy of the code of ethics is availableupon request by calling 609-282-6996.

(j)            Audit Committee Financial Expert:

Not applicable. (Neitherthe Partnership nor BlackRock has an audit committee.)

**Item 11: ExecutiveCompensation**

The Partnership’sPresident and Chief Financial Officer, which are its only officers, managers,or employees, do not receive compensation form the Partnership.  Instead, they are remunerated by BlackRock intheir respective positions with BlackRock. The Partnership does not itself have any officers, managers oremployees.  The Partnership paysBrokerage Commissions to an affiliate of BlackRock and Administrative Fees toBlackRock. BlackRock or its affiliates may also receive certain economicbenefits from the possession of the Partnership’s U.S. dollar assets in offsetaccounts, as described in Item 1(c) above. The managers and officers receive no “other compensation” from thePartnership.  There are no compensationplans or arrangements relating to a change in control of either the Partnershipor BlackRock.

**Item12:  Security Ownership of CertainBeneficial Owners and Management and Related Stockholders Matters**

(a)           SecuritiesAuthorized for Issuance Under Equity Compensation Plans:

None.

(b)           SecurityOwnership of Certain Beneficial Owners:

Not applicable,the Units are non-voting limited partnership interests.  The Partnership is managed by BlackRock, itsgeneral partner.

(c)           SecurityOwnership of Management:

As of December 31, 2006, BlackRock owned 2,182,815Units (unit-equivalent general partnership interests), which was approximately1.11 % of the total Units outstanding.

31

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(d)          Changesin Control:

None.

**Item 13:  CertainRelationships and Related Transactions**

(a)           Transactionsbetween Merrill Lynch and the Partnership:

The Partnership pays indirectly Merrill Lynch throughMLPF&S and BlackRock substantial Brokerage Commissions and AdministrativeFees, respectively, as well as bid-ask spreads on forward currency trades. ThePartnership also pays MLPF&S interest on short-term loans extended byMLPF&S to cover losses on foreign currency positions.

In 2006, the Partnership expensed:  (i) Brokerage Commissions of $17,712,085,which included $2,859,642 in consulting fees earned by the Advisors(non-unitized Series pay consulting fees separately from the unitized Series);and (ii) Administrative Fees of $615,580 to BlackRock.  In addition, BlackRock and Merrill Lynch andits affiliates may have derived certain economic benefits from possession ofthe Partnership’s assets, as well as from foreign exchange and EFP trading.

See Item 1(c), “Narrative Description of Business —Charges” and “— Description of Current Charges” for a discussion of otherbusiness dealings between BlackRock affiliates and the Partnership.

The Partnership is prohibited from making any loans,to management or otherwise

BlackRock may be viewed as a beneficiary of therevenues received by different Merrill Lynch entities from the Partnership dueto Merrill Lynch’s ownership stake in BlackRock.  BlackRock controls the management of thePartnership and serves as its promoter. Although BlackRock has not sold anyassets, directly or indirectly, to the Partnership, BlackRock has madesubstantial profits from the Partnership due to the foregoing revenues.

(b)          Review,Approval or Ratification of Transactions with Related Persons:

All of the service providers to the Partnership, otherthan the Advisors, and OMR Systems Corporation are affiliates of BlackRock orMerrill Lynch.  BlackRock negotiated withthe Advisors over the level of their advisory fees and Profit Shares.  However, none of the fees paid by thePartnership to any BlackRock or Merrill Lynch party were negotiated, and theyare likely higher than those that may have been obtained in arm’s-length bargaining.   OMR Systems Corporation providesadministrative services to the fund and is paid by BlackRock.

The Partnership is prohibited from making any loans,to management or otherwise.  No loanshave been, are or will be outstanding between BlackRock or any of itsprincipals and the Partnership.

(c)           Transactionswith Promoters:

BlackRock paid substantial selling commissions andtrailing commissions to MLPF&S for distributing the Units.  BlackRock is ultimately paid back for theseexpenditures from the revenues it receives from the Partnership.

(d)                               DirectorIndependence:

Not applicable.

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**Item 14: Principal Accountant Fees and Services**

1)              Audit Fees

Aggregatefees for professional services rendered by Deloitte & Touche LLP inconnection with the audit of the Partnership’s financial statements as of andfor the year ended December 31, 2006 were $100,000.  Aggregate fees for these services for theyear ended December 31, 2005 were $75,000.

2)              Audit-RelatedFees 

There were no other audit-related fees for the years ended December 31,2006 or 2005 related to the Partnership.

3)              Tax Fees

Aggregate fees for professional services rendered by Deloitte Tax LLPin connection with the tax compliance, advice and preparation of thePartnership’s tax returns for the year ended December 31, 2006 were $182,000.Aggregate fees for these services for the Partnership for the year endedDecember 31, 2005 were $182,000.

4)              All Other Fees

No fees were paid to Deloitte and Touche LLP, Deloitte Tax LLP or anymember firms of Deloitte Touche Tohmatsu and their respective affiliates duringthe years ended December 31, 2006 or 2005 for any other professional servicesin relation to the Partnership.

5)              Pre-ApprovalPolicies

Although BlackRock and the Partnership do not have pre-approval policies,the Chief Financial Officer of the Partnership pre-approves the engagement ofthe Partnership’s auditor for all services to be provided by the auditor.

33

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**PART IV**

**Item 15: Exhibits and Financial StatementSchedules**
| 1.     |   | Financial Statements (found in Exhibit 13.01):                      |   |
|--------|--------|---------------------------------------------------------------------|--------|
|   |   |                                                                |   |
|   |   | Report of  Independent Registered Public Accounting Firm            | 1      |
|   |   |                                                                |   |
|   |   | Statements of  Financial Condition as of December 31, 2006 and 2005 | 2      |
|   |   |                                                                |   |
|   |   | For the years  ended December 31, 2006, 2005 and 2004:              |   |
|   |   | Statements of  Operations                                           | 3      |
|   |   | Statements of  Changes in Partners’ Capital                    | 4      |
|   |   |                                                                |   |
|   |   | Financial Data  Highlights for the year ended December 31, 2006     | 5      |
|   |   |                                                                |   |
|   |   | Notes to  Financial Statements                                      | 6-15   |

 

2.             Financial Statement Schedules:

Financial statementschedules not included in this Form 10-K have been omitted for the reason thatthey are not required or are not applicable or that equivalent information hasbeen included in the financial statements or notes thereto.

3.             Exhibits required by Item 601 of Regulation 5-k:

The followingexhibits are incorporated by reference or are filed herewith to this AnnualReport on Form 10-K:
| Designation         | ** ** | **Description**                                                                                                                                                                                                                                                               |
|---------------------|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |       |                                                                                                                                                                                                                                                                          |
| 1.01                |       | Selling Agreement among the Partnership, BlackRock,  MLPF&S, the Selling Agent and the Advisors.                                                                                                                                                                          |
|                |       |                                                                                                                                                                                                                                                                          |
| Exhibit 1.01:       |       | Is incorporated herein by reference from Exhibit  1.01 contained in Amendment No. 1 to the Registration Statement (File No.  33-62998) filed on September 10, 1993, on Form S-1 under the Securities Act  of 1933 (the “Registrant’s Registration Statement”). |
|                |       |                                                                                                                                                                                                                                                                          |
| 3.01(i)             |       | Amended and Restated Certificate of Limited  Partnership of the Registrant, dated August 25, 1994.                                                                                                                                                                            |
|                |       |                                                                                                                                                                                                                                                                          |
| Exhibit 3.01(i):    |       | Is incorporated herein by reference from Exhibit  3.01(i) contained in the Registrant’s Registration Statement.                                                                                                                                                          |
|                |       |                                                                                                                                                                                                                                                                          |
| 3.01(ii)            |       | Amended and Restated Limited Partnership Agreement  of the Partnership.                                                                                                                                                                                                       |
|                |       |                                                                                                                                                                                                                                                                          |
| Exhibit 3.01(ii):   |       | Is incorporated herein by reference from Exhibit  3.01(ii) contained in the Registrant’s Registration Statement (as Exhibit A).                                                                                                                                          |
|                |       |                                                                                                                                                                                                                                                                          |
| 3.01(iii)           |       | Amended and Restated Certificate of Limited  Partnership of the Partnership, dated July 27, 1995.                                                                                                                                                                             |
|                |       |                                                                                                                                                                                                                                                                          |
| Exhibit  3.01(iii): |       | Is incorporated by reference from Exhibit 3.02(iii)  contained in the Registrant’s report on Form 10-Q for the Quarter Ended June  30, 1995.                                                                                                                             |

 

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| 3.01(iv)                  |   | Amended and Restated Certificate of Limited  Partnership of the Partnership, dated January 13, 2005.                                                                                                                                  |
|---------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                      |   |                                                                                                                                                                                                                                  |
| Exhibit 3.01(iv):         |   | Is filed herewith.                                                                                                                                                                                                                    |
|                      |   |                                                                                                                                                                                                                                  |
| 10.01(d)                  |   | Form of Advisory Agreement between the Partnership,  BlackRock, MLPF&S and prospective trading advisors.                                                                                                                          |
|                      |   |                                                                                                                                                                                                                                  |
| Exhibit 10.01(d):         |   | Is incorporated by reference from Exhibit 10.01(d)  contained in the Registrant’s report on Form 10-Q for the Quarter Ended June  30, 1995.                                                                                      |
|                      |   |                                                                                                                                                                                                                                  |
| 10.02                     |   | Form of Consulting Agreement between each Advisor,  the Partnership and MLPF&S.                                                                                                                                                   |
|                      |   |                                                                                                                                                                                                                                  |
| Exhibit 10.02:            |   | Is incorporated herein by reference from Exhibit  10.02 contained in the Registrant’s Registration Statement.                                                                                                                    |
|                      |   |                                                                                                                                                                                                                                  |
| 10.03                     |   | Form of Customer Agreement between the Partnership  and MLPF&S.                                                                                                                                                                   |
|                      |   |                                                                                                                                                                                                                                  |
| Exhibit 10.03:            |   | Is incorporated herein by reference from Exhibit  10.03 contained in the Registrant’s Registration Statement.                                                                                                                    |
|                      |   |                                                                                                                                                                                                                                  |
| 10.05                     |   | Form of Subscription Agreement and Power of  Attorney.                                                                                                                                                                                |
|                      |   |                                                                                                                                                                                                                                  |
| Exhibit 10.05:            |   | Is incorporated herein by reference from Exhibit  10.05 contained in the Registrant’s Registration Statement (as Exhibit D).                                                                                                     |
|                      |   |                                                                                                                                                                                                                                  |
| 10.06                     |   | Foreign Exchange Desk Service Agreement, dated July  1, 1993 among Merrill Lynch International Bank, MLIM LLC, MLPF&S and the  Partnership.                                                                                       |
|                      |   |                                                                                                                                                                                                                                  |
| Exhibit 10.06:            |   | Is incorporated herein by reference from Exhibit  10.06 contained in Amendment No. 1 to the Registration Statement.                                                                                                                   |
|                      |   |                                                                                                                                                                                                                                  |
| 10.07                     |   | Form of Advisory and Consulting Agreement Amendment  among BlackRock, each Advisor, the Partnership and MLPF&S.                                                                                                                   |
|                      |   |                                                                                                                                                                                                                                  |
| Exhibit 10.07:            |   | Is incorporated herein by reference from Exhibit  10.07 contained in the Registrant’s report on Form 10-K for the year ended  December 31, 1996.                                                                                 |
|                      |   |                                                                                                                                                                                                                                  |
| 13.01                     |   | 2006 Annual Report and Report of Independent  Registered Public Accounting Firm.                                                                                                                                                      |
|                      |   |                                                                                                                                                                                                                                  |
| Exhibit 13.01:            |   | Is filed herewith.                                                                                                                                                                                                                    |
|                      |   |                                                                                                                                                                                                                                  |
| 28.01                     |   | Prospectus of the Partnership dated December 6,  1995.                                                                                                                                                                                |
|                      |   |                                                                                                                                                                                                                                  |
| Exhibit 28.01:            |   | Is incorporated by reference as filed with the  Securities and Exchange Commission pursuant to Rule 424 under the Securities  Act of 1933, Registration Statement (File No. 33-88994) on Form S-1,  effective December 6, 1995). |
|                      |   |                                                                                                                                                                                                                                  |
| 31.01 and 31.02           |   | Rule 13a-14(a)/15d-14(a) Certifications                                                                                                                                                                                               |
|                      |   |                                                                                                                                                                                                                                  |
|                      |   |                                                                                                                                                                                                                                  |
| Exhibit 31.01  and 31.02: |   | Are filed herewith.                                                                                                                                                                                                                   |
|                      |   |                                                                                                                                                                                                                                  |
| 32.01 and 32.02           |   | Section 1350 Certifications                                                                                                                                                                                                           |
|                      |   |                                                                                                                                                                                                                                  |
| Exhibit 32.01  and 32.02: |   | Are filed herewith.                                                                                                                                                                                                                   |

 

35

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SIGNATURES

Pursuant to therequirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, theRegistrant has duly caused this report to be signed on its behalf by theundersigned, thereunto duly authorized on March 30, 2007.
| ** ** |   | **BLACKROCK GLOBAL HORIZONS I L.P.** |
|------------|--------|--------------------------------------|
| ** ** |   | ** **                           |
| ** ** |   | By:                                  | **BLACKROCK INVESTMENT MANAGEMENT, LLC** |
|       |   | General Partner                      |
|       |   |                                 |
|       |   | By                                   | /s/ EDWARD RZESZOWSKI |   |
|       |   |  Edward Rzeszowski              |
|       |   |  President                      |
|       |   | (Principal Executive Officer)        |
|            |        |                                      |  |  |  |

 

Pursuant to the requirements of Section 13 or 15(d) ofthe Securities Exchange Act of 1934, this report has been signed below by thefollowing persons on behalf of the Registrant and in the capacities indicated.
| Signature              | ** ** | **Title**                                    | ** **                                | **Date** |
|------------------------|------------|----------------------------------------------|-------------------------------------------|----------|
|                   |       |                                         |                                      |     |
| /s/Edward Rzeszowski   |       |                                         | President of the Registrant               |     | March 30, 2007 |
| Edward Rzeszowski      |       | (Principal Executive Officer)                |                                      |     |
|                   |       |                                         |                                      |     |
| /s/Michael L. Pungello |       |                                         | Chief Financial Officer of the Registrant |     | March 30, 2007 |
| Michael L. Pungello    |       | (Principal Financial and Accounting Officer) |                                      |     |
|                   |       |                                         |                                      |     |
| /s/Howard P. Berkowitz |       |                                         | Managing Director of BlackRock            |     | March 30, 2007 |
| Howard P. Berkowitz    |       |                                         |                                      |     |
|                        |            |                                              |                                           |          |  |  |  |

 

(Being the principal executive officer, the principal financial andaccounting officer and a majority of the managers of BlackRock InvestmentManagement LLC)
| **BLACKROCK INVESTMENT MANAGEMENT, LLC** |                  |   |
|------------------------------------------|-----------------------|--------|
| General Partner of Registrant            |                  |   |   | March 30, 2007 |
|                                     |                  |   |   |   |
|                                     |                  |   |   |   |
| By                                       | /s/ EDWARD RZESZOWSKI |   |   |   |   |   |
| Edward Rzeszowski                        |                  |   |   |   |
| Managing Director of BlackRock           |                  |   |   |   |
|                                          |                       |        |  |  |  |  |

 

----

**BLACKROCK GLOBAL HORIZONS I L.P.**

2006 FORM 10-K

INDEX TO EXHIBITS
| Exhibit          | ** ** | ** **                                                                                           |
|------------------|------------|------------------------------------------------------------------------------------------------------|
|             |       |                                                                                                 |
| Exhibit 3.01(iv) |       | Amended and Restated Certificate of Limited  Partnership of the Partnership, dated January 13, 2005. |
|             |       |                                                                                                 |
| Exhibit 13.01    |       | 2006 Annual Report and Report of Independent Registered  Public Accounting Firm                      |

 

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