**Exhibit13.01**

 

 

 

 

 
| *** *** | ***BLACKROCK GLOBAL HORIZONS I L.P.***   |
|--------------|------------------------------------------|
| *** *** | ***(A Delaware Limited Partnership)***   |
|         |                                     |
|         |                                     |
|         | Financial Statements for the years ended |
|         | December 31, 2007, 2006 and 2005    |
|         | and Report of Independent Registered     |
|         | Public Accounting Firm                   |

 

 

 

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**General Commodity FuturesTrading Risk Disclosure Statement**

 

Prospective investors reviewing the accompanying statements offinancial condition of BlackRock Global Horizons I L.P. (the “Partnership”)should carefully consider whether their financial condition permits them toparticipate in the Partnership.  In sodoing, prospective investors should be aware that futures, forwards and optionstrading can quickly lead to large losses as well as gains.  Such trading losses can sharply reduce thenet asset value of the Partnership and consequently the value of an investor’sinterest in the Partnership.  Inaddition, potential restrictions on redemption may affect an investor’s abilityto withdraw from participation in the Partnership.

 

Further, the Partnership may be subject to substantial charges formanagement, distribution, advisory and brokerage fees.  The Partnership will need to make substantialtrading profits to avoid depletion or exhaustion of its assets over time.  This brief statement cannot disclose all therisks and other factors necessary to evaluate a potential investor’sparticipation in the Partnership. Therefore, before any prospective investor decides to invest in thePartnership, the prospective investor should carefully study the Partnership’sdisclosure document, including the description of the principal risk factorsstated therein.

 

Prospective investors should also be aware that the Partnership maytrade foreign futures, forwards 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 innon-United States jurisdictions where transactions for the Partnership maybeeffected.

 

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BLACKROCK GLOBAL HORIZONS I L.P.

(A Delaware Limited Partnership)

 

 

TABLE OF CONTENTS

| ** **                                                                                                 | ** ** |
|------------------------------------------------------------------------------------------------------------|------------|
| ** **                                                                                                 | **Page**   |
|                                                                                                       |       |
| REPORT  OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                                                   | 1          |
|                                                                                                       |       |
| FINANCIAL  STATEMENTS:                                                                                     |       |
|                                                                                                       |       |
| Statements of Financial Condition as of  December 31, 2007 and 2006                                   | 2          |
|                                                                                                       |       |
| Statements of Operations for the years ended  December 31, 2007, 2006 and 2005                        | 3          |
|                                                                                                       |       |
| Statements of Changes in Partners’ Capital for the  years ended December 31, 2007, 2006 and 2005 | 4          |
|                                                                                                       |       |
| Financial Data Highlights for the years ended  December 31, 2007, 2006 and 2005                       | 5-7        |
|                                                                                                       |       |
| Notes to Financial Statements                                                                              | 8-16       |

 

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REPORT OFINDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

 

 

 

To the Partners of

                BlackRock Global Horizons I L.P.:

 

We have auditedthe accompanying statements of financial condition of BlackRock Global HorizonsI L.P. (the “Partnership”) as of December 31, 2007 and 2006, and therelated statements of operations, changes in partners’ capital, and financialdata highlights for each of the three years in the period ended December 31,2007. These financial statements and financial data highlights are theresponsibility of the Partnership’s management. Our responsibility is to express an opinion on these financialstatements and financial data highlights based on our audits.

 

We conducted ouraudits in accordance with the standards of the Public Company AccountingOversight Board (United States).  Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements and financial data highlightsare free of material misstatement.  ThePartnership is not required to have, nor were we engaged to perform, an auditof its internal control over financial reporting. Our audits includedconsideration of internal control over financial reporting as a basis fordesigning audit procedures that are appropriate in the circumstances, but notfor the purpose of expressing an opinion on the effectiveness of thePartnership’s internal control over financial reporting.  Accordingly, we express no such opinion.  An audit also includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements, assessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financial statementpresentation.  We believe that our auditsprovide a reasonable basis for our opinion.

 

In our opinion,the financial statements and financial data highlights referred to abovepresent fairly, in all material respects, the financial position of BlackRockGlobal Horizons I L.P. as of December 31, 2007 and 2006, the results ofits operations, the changes in its partners’ capital, and financial datahighlights for each of the three years in the period ended December 31,2007, in conformity with accounting principles generally accepted in the UnitedStates of America.

 

 

 

 

 

/s/ Deloitte &Touche LLP

 

Princeton, NewJersey

March 26, 2008

 

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BLACKROCK GLOBAL HORIZONSI L.P.

(A Delaware LimitedPartnership)

 

STATEMENTS OF FINANCIALCONDITION

DECEMBER 31, 2007AND 2006

 

 

 
| ** **                                                           | ** ** | **2007**    | ** **  | **2006**    | ** ** |
|----------------------------------------------------------------------|------------|-------------|-------------|-------------|------------|
| **ASSETS:**                                                          |       |        |        |        |       |
|                                                                 |       |        |        |        |       |
| Equity in commodity futures trading accounts:                        |       |        |        |        |       |
| Cash (restricted  cash $13,675,285 and $42,150,062)                  |       | $           | 183,073,502 |        | $          | 226,593,453 |   |
| Net unrealized  profit on open contracts                             |       | 2,609,639   |        | 7,016,571   |       |
| Accrued interest and other assets                                    |       | 485,964     |        | 1,002,444   |       |
|                                                                 |       |        |        |        |       |
| **TOTAL  ASSETS**                                                    |       | $           | 186,169,105 |        | $          | 234,612,468 |   |
|                                                                 |       |        |        |        |       |
|                                                                 |       |        |        |        |       |
| **LIABILITIES AND PARTNERS' CAPITAL**                                |       |        |        |        |       |
|                                                                 |       |        |        |        |       |
| LIABILITIES:                                                         |       |        |        |        |       |
|                                                                 |       |        |        |        |       |
| Redemptions  payable                                                 |       | $           | 18,229,253  |        | $          | 4,865,452 |   |
| Profit Shares  payable                                               |       | 1,877,704   |        | 1,000,416   |       |
| Distribution  fees payable                                           |       | 951,798     |        | —      |       |
| Trading  Advisors' management fees payable                           |       | 452,594     |        | —      |       |
| Clearing costs  payable                                              |       | 304,435     |        | —      |       |
| Sponsor fees  payable                                                |       | 280,101     |        | —      |       |
| Administrator  fees payable                                          |       | 181,732     |        | —      |       |
| Professional  fees payable                                           |       | 96,539      |        | —      |       |
| Brokerage  commissions payable                                       |       | —      |        | 1,350,630   |       |
| Administrative  fees payable                                         |       | —      |        | 46,625      |       |
| Other fees  payable                                                  |       | 67,079      |        | —      |       |
|                                                                 |       |        |        |        |       |
| Total  liabilities                                                   |       | 22,441,235  |        | 7,263,123   |       |
|                                                                 |       |        |        |        |       |
| PARTNERS' CAPITAL:                                                   |       |        |        |        |       |
|                                                                 |       |        |        |        |       |
| General Partner  (2,203,255 Units and 1,714,481 Units)               |       | 2,589,473   |        | 2,041,990   |       |
| Limited  Partners-Unitized (130,216,471 Units and 143,125,734 Units) |       | 161,138,397 |        | 172,534,729 |       |
| Limited  Partners-Non-unitized                                       |       | —      |        | 52,772,626  |       |
|                                                                 |       |        |        |        |       |
| Total partners'  capital                                             |       | 163,727,870 |        | 227,349,345 |       |
|                                                                 |       |        |        |        |       |
| **TOTAL  LIABILITIES AND PARTNERS' CAPITAL**                         |       | $           | 186,169,105 |        | $          | 234,612,468 |   |

 

**NET ASSETVALUE PER UNIT (Note 8)**

 

See notes to financialstatements.

 

2

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BLACKROCK GLOBAL HORIZONSI L.P.

(A Delaware LimitedPartnership)

 

STATEMENTS OFOPERATIONS

FOR THE YEARSENDED DECEMBER 31, 2007, 2006 AND 2005

 

 
| ** **                                                                        | ** ** | **2007**    | ** **   | **2006**    | ** ** | **2005**     | ** ** |
|-----------------------------------------------------------------------------------|------------|-------------|--------------|-------------|------------|--------------|------------|
| **TRADING PROFITS (LOSSES):**                                                     | ** ** | ** **  | ** **   | ** **  | ** ** | ** **   | ** ** |
| Realized                                                                          |       | $           | 16,070,669   |        | $          | 16,620,657   |       | $ | 680,616 |   |
| Change in  unrealized                                                             |       | (4,406,932  | )            | 2,030,261   |       | 1,837,104    |       |
| Brokerage  commissions and clearing costs                                         |       | (621,832    | )            | —      |       | —       |       |
|                                                                              |       |        |         |        |       |         |       |
| Total trading  profits                                                            |       | 11,041,905  |         | 18,650,918  |       | 2,517,720    |       |
|                                                                              |       |        |         |        |       |         |       |
| **INVESTMENT INCOME:**                                                            | ** ** | ** **  | ** **   | ** **  | ** ** | ** **   | ** ** |
| Interest income                                                                   |       | 9,194,631   |         | 12,178,428  |       | 8,910,897    |       |
|                                                                              |       |        |         |        |       |         |       |
| **EXPENSES:**                                                                     | ** ** | ** **  | ** **   | ** **  | ** ** | ** **   | ** ** |
| Brokerage  commissions                                                            |       | 9,623,405   |         | 17,712,085  |       | 17,973,653   |       |
| Profit Shares                                                                     |       | 2,761,529   |         | 2,783,961   |       | 1,266,141    |       |
| Distribution  fees                                                                |       | 1,766,803   |         | —      |       | —       |       |
| Trading  Advisors' management fees                                                |       | 897,433     |         | —      |       | —       |       |
| Sponsor fees                                                                      |       | 739,849     |         | —      |       | —       |       |
| Administrative  fees                                                              |       | 344,493     |         | 615,580     |       | 622,238      |       |
| Administrator  fees                                                               |       | 279,460     |         | —      |       | —       |       |
| Professional  fees                                                                |       | 108,332     |         | —      |       | —       |       |
| Other                                                                             |       | 86,153      |         | —      |       | —       |       |
| Total expenses  before waiver                                                     |       | 16,607,457  |         | 21,111,626  |       | 19,862,032   |       |
| Sponsor fee  waiver                                                               |       | (98,165     | )            | -           |       | -            |       |
| Total expenses                                                                    |       | 16,509,292  |         | 21,111,626  |       | 19,862,032   |       |
|                                                                              |       |        |         |        |       |         |       |
| **NET INVESTMENT LOSS**                                                           |       | (7,314,661  | )            | (8,933,198  | )          | (10,951,135  | )          |
|                                                                              |       |        |         |        |       |         |       |
| **NET INCOME (LOSS)**                                                             |       | $           | 3,727,244    |        | $          | 9,717,720    |       | $ | (8,433,415 | ) |
|                                                                              |       |        |         |        |       |         |       |
| **NET INCOME (LOSS) PER UNIT:**                                                   | ** ** | ** **  | ** **   | ** **  | ** ** | ** **   | ** ** |
|                                                                              |       |        |         |        |       |         |       |
| Weighted average number of General Partner                                        |       |        |         |        |       |         |       |
| and Limited Partner Units outstanding                                             |       |        |         |        |       |         |       |
| Series A                                                                          |       | 121,732,320 |         | 156,950,282 |       | 158,164,103  |       |
| Series F                                                                          |       | 143,617     |         | 166,816     |       | 186,537      |       |
| Series G                                                                          |       | 42,136,152  |         | n/a         |       | n/a          |       |
| Series I                                                                          |       | 4,151,130   |         | 8,339,614   |       | 8,007,483    |       |
|                                                                              |       |        |         |        |       |         |       |
| Net income  (loss) per weighted average General Partner and Limited Partner Unit* |       |        |         |        |       |         |       |
| Series A                                                                          |       | $           |  0.0173 |        | $          |  0.0380 |       | $ |  (0.0268 | ) |
| Series F                                                                          |       | $           |  4.82   |        | $          |  9.38   |       | $ |  (8.65 | ) |
| Series G                                                                          |       | $           |  0.0205 |        | n/a        |         | n/a        |   |
| Series I                                                                          |       | $           |  0.0453 |        | $          |  0.0547 |       | $ |  (0.0061 | ) |

 

*Calculationof net income (loss) per weighted average General Partner and Limited PartnerUnit excludes net income (loss) allocated to non-unitized interests for theyears ended December 31, 2007, 2006 and 2005.

 

See notes tofinancial statements.

 

3

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BLACKROCK GLOBAL HORIZONSI L.P.

(A Delaware LimitedPartnership)

 

STATEMENTS OF CHANGES INPARTNERS’ CAPITAL

FOR THE YEARSENDED DECEMBER 31, 2007, 2006 AND 2005

 
| ** **                                 | ** ** | ** **  | ** ** | **General** | ** ** | **Limited Partners** | ** ** | ** **       | ** ** |
|--------------------------------------------|------------|-------------|------------|-------------|------------|----------------------|------------|------------------|------------|
| ** **                                 | ** ** | **Units**   | ** ** | **Partner** | ** ** | **Unitized**         | ** ** | **Non-unitized** | ** ** | **Total** | ** ** |
| PARTNERS'  CAPITAL, DECEMBER 31, 2004 |       | 109,469,056 |       | $           | 1,215,470  |                 | $          | 148,134,902      |       | $ | — |   | $ | 149,350,372 |   |
|                                       |       |        |       |        |       |                 |       |             |       |   |   |
| Additions                                  |       | 92,064,612  |       | 1,153,893   |       | 84,724,425           |       | 97,084,491       |       | 182,962,809 |   |
|                                       |       |        |       |        |       |                 |       |             |       |   |   |
| Net loss                                   |       | —      |       | (30,294     | )          | (5,865,971           | )          | (2,537,150       | )          | (8,433,415 | ) |
|                                       |       |        |       |        |       |                 |       |             |       |   |   |
| Redemptions                                |       | (24,019,075 | )          | (41,578     | )          | (25,243,040          | )          | (30,009,281      | )          | (55,293,899 | ) |
|                                       |       |        |       |        |       |                 |       |             |       |   |   |
| PARTNERS'  CAPITAL, DECEMBER 31, 2005 |       | 177,514,593 |       | 2,297,491   |       | 201,750,316          |       | 64,538,060       |       | 268,585,867 |   |
|                                       |       |        |       |        |       |                 |       |             |       |   |   |
| Additions                                  |       | 20,464,172  |       | —      |       | 19,607,506           |       | 713,222          |       | 20,320,728 |   |
|                                       |       |        |       |        |       |                 |       |             |       |   |   |
| Net income                                 |       | —      |       | 87,114      |       | 7,901,995            |       | 1,728,611        |       | 9,717,720 |   |
|                                       |       |        |       |        |       |                 |       |             |       |   |   |
| Conversion (Note 8)                        |       | (24,826     | )          | —      |       | —               |       | —           |       | — |   |
|                                       |       |        |       |        |       |                 |       |             |       |   |   |
| Redemptions                                |       | (53,113,724 | )          | (342,615    | )          | (56,725,088          | )          | (14,207,267      | )          | (71,274,970 | ) |
|                                       |       |        |       |        |       |                 |       |             |       |   |   |
| PARTNERS'  CAPITAL, DECEMBER 31, 2006 |       | 144,840,215 |       | 2,041,990   |       | 172,534,729          |       | 52,772,626       |       | 227,349,345 |   |
|                                       |       |        |       |        |       |                 |       |             |       |   |   |
| Combination (Note 4)                       |       | 44,500,323  |       | 488,774     |       | 44,011,549           |       | (44,500,323      | )          | — |   |
|                                       |       |        |       |        |       |                 |       |             |       |   |   |
| Additions                                  |       | 5,889,674   |       | —      |       | 5,658,737            |       | —           |       | 5,658,737 |   |
|                                       |       |        |       |        |       |                 |       |             |       |   |   |
| Net income                                 |       | —      |       | 58,709      |       | 3,792,645            |       | (124,110         | )          | 3,727,244 |   |
|                                       |       |        |       |        |       |                 |       |             |       |   |   |
| Redemptions                                |       | (62,810,486 | )          |        |       | (64,859,263          | )          | (8,148,193       | )          | (73,007,456 | ) |
|                                       |       |        |       |        |       |                 |       |             |       |   |   |
| PARTNERS'  CAPITAL, DECEMBER 31, 2007 |       | 132,419,726 |       | $           | 2,589,473  |                 | $          | 161,138,397      |       | $ | — |   | $ | 163,727,870 |   |

 

See notes to financial statements.

 

4

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BLACKROCK GLOBAL HORIZONSI L.P.

(A Delaware LimitedPartnership)

 

FINANCIAL DATA HIGHLIGHTS

FOR THE YEAR ENDEDDECEMBER 31, 2007

 

The following per Unitdata and ratios have been derived from information provided in the financialstatements.

 
| **Per Unit Operating Performance:**      | ** ** | **Series A** | ** ** | **Series F** | ** ** | **Series G** | ** ** | **Series I** | ** ** | **Non-unitized** | ** ** |
|------------------------------------------|------------|--------------|------------|--------------|------------|--------------|------------|--------------|------------|------------------|------------|
|                                     |       |         |       |         |       |         |       |         |       |             |       |
| Net asset value, beginning of year       |       | $            | 0.9625     |         | $          | 230.98       |       | $            | 1.0000     |             | $          | 1.0010 |   | n/a |   |
|                                     |       |         |       |         |       |         |       |         |       |             |       |
| Realized trading profits                 |       | 0.0818       |       | 19.70        |       | $            | 0.0861     |         | 0.0881     |             | n/a        |   |
| Change in unrealized trading profits     |       | (0.0211      | )          | (5.10        | )          | $            | (0.0221    | )            | (0.0223    | )                | n/a        |   |
| Interest                                 |       | 0.0437       |       | 10.50        |       | $            | 0.0448     |         | 0.0462     |             | n/a        |   |
| Expenses                                 |       | (0.0834      | )          | (19.89       | )          | $            | (0.0864    | )            | (0.0610    | )                | n/a        |   |
|                                     |       |         |       |         |       |         |       |         |       |             |       |
| Net asset value, end of year             |       | $            | 0.9835     |         | $          | 236.19       |       | $            | 1.0224     |             | $          | 1.0520 |   | n/a |   |
|                                     |       |         |       |         |       |         |       |         |       |             |       |
| **Total Return:**                        | ** ** | ** **   | ** ** | ** **   | ** ** | ** **   | ** ** | ** **   | ** ** | ** **       | ** ** |
|                                     |       |         |       |         |       |         |       |         |       |             |       |
| Total return (before Profit Shares)      |       | 3.63         | %          | 3.67         | %          | 3.69         | %          | 6.94         | %          | 2.26             | %          |
| Profit Shares                            |       | -1.50        | %          | -1.45        | %          | -1.49        | %          | -1.83        | %          | -1.72            | %          |
| Total return                             |       | 2.18         | %          | 2.26         | %          | 2.24         | %          | 5.09         | %          | 0.59             | %          |
|                                     |       |         |       |         |       |         |       |         |       |             |       |
| **Ratios to Average Net Assets:****(1)** | ** ** | ** **   | ** ** | ** **   | ** ** | ** **   | ** ** | ** **   | ** ** | ** **       | ** ** |
|                                     |       |         |       |         |       |         |       |         |       |             |       |
| Expenses (before Profit Shares)          |       | 7.36         | %          | 7.24         | %          | 7.24         | %          | 4.49         | %          | 8.62             | %          |
| Profit Shares                            |       | 1.39         | %          | 1.39         | %          | 1.43         | %          | 1.54         | %          | 1.33             | %          |
| Expenses                                 |       | 8.75         | %          | 8.63         | %          | 8.67         | %          | 6.03         | %          | 9.95             | %          |
|                                     |       |         |       |         |       |         |       |         |       |             |       |
| Net investment loss                      |       | -4.03        | %          | -4.04        | %          | -4.14        | %          | -1.04        | %          | -5.27            | %          |

 

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(1) Included in the ratios of expenses to average net assets arebrokerage commissions and clearing costs which are presented in the TradingProfits (Losses) on the Statement of Operations

 

See notes tofinancial statements.

 

5

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BLACKROCK GLOBAL HORIZONSI L.P.

(A Delaware LimitedPartnership)

 

FINANCIAL DATA HIGHLIGHTS

FOR THE YEAR ENDEDDECEMBER 31, 2006

 

The following per Unitdata and ratios have been derived from information provided in the financialstatements.

 
| **Per Unit Operating Performance:** | ** ** | **Series A** | ** ** | **Series F** | ** ** | **Series I** | ** ** | **Non-unitized** | ** ** |
|-------------------------------------|------------|--------------|------------|--------------|------------|--------------|------------|------------------|------------|
|                                |       |         |       |         |       |         |       |             |       |
| Net asset value, beginning of year  |       | $            | 0.9264     |         | $          | 221.81       |       | $                | 0.9385     |   | n/a |   |
|                                |       |         |       |         |       |         |       |             |       |
| Realized trading profits            |       | 0.0609       |       | 13.48        |       | 0.0643       |       | n/a              |       |
| Change in unrealized                |       | 0.0079       |       | 3.00         |       | 0.0057       |       | n/a              |       |
| Interest income                     |       | 0.0457       |       | 10.97        |       | 0.0470       |       | n/a              |       |
| Expenses                            |       | (0.0784      | )          | (18.28       | )          | (0.0545      | )          | n/a              |       |
|                                |       |         |       |         |       |         |       |             |       |
| Net asset value, end of year        |       | $            | 0.9625     |         | $          | 230.98       |       | $                | 1.0010     |   | n/a |   |
|                                |       |         |       |         |       |         |       |             |       |
| **Total Return:**                   | ** ** | ** **   | ** ** | ** **   | ** ** | ** **   | ** ** | ** **       | ** ** |
|                                |       |         |       |         |       |         |       |             |       |
| Total return before Profit Shares   |       | 5.09         | %          | 5.09         | %          | 8.17         | %          | 3.59             | %          |
| Profit Shares                       |       | -1.19        | %          | -0.94        | %          | -1.45        | %          | -0.94            | %          |
| Total return                        |       | 3.89         | %          | 4.13         | %          | 6.67         | %          | 2.65             | %          |
|                                |       |         |       |         |       |         |       |             |       |
| **Ratios to Average Net Assets:**   | ** ** | ** **   | ** ** | ** **   | ** ** | ** **   | ** ** | ** **       | ** ** |
|                                |       |         |       |         |       |         |       |             |       |
| Expenses (before Profit Shares)     |       | 7.19         | %          | 7.10         | %          | 4.33         | %          | 8.14             | %          |
| Profit Shares                       |       | 1.21         | %          | 0.95         | %          | 1.27         | %          | 0.93             | %          |
| Expenses                            |       | 8.40         | %          | 8.05         | %          | 5.60         | %          | 9.07             | %          |
|                                |       |         |       |         |       |         |       |             |       |
| Net investment loss                 |       | -3.53        | %          | -3.23        | %          | -0.59        | %          | -4.25            | %          |

 

See notes tofinancial statements.

 

6

----

 

BLACKROCK GLOBAL HORIZONSI L.P.

(A Delaware LimitedPartnership)

 

FINANCIAL DATA HIGHLIGHTS

FOR THE YEAR ENDEDDECEMBER 31, 2005

 

The following per Unitdata and ratios have been derived from information provided in the financialstatements.

 
| **Per Unit Operating Performance:** | ** ** | **Series A** | ** ** | **Series F** | ** ** | **Series I** | ** ** | **Non-unitized** | ** ** |
|-------------------------------------|------------|--------------|------------|--------------|------------|--------------|------------|------------------|------------|
|                                |       |         |       |         |       |         |       |             |       |
| Net asset value, beginning of year  |       | $            | 0.9615     |         | $          | 230.10       |       | $                | 0.9478     |   | n/a |   |
|                                |       |         |       |         |       |         |       |             |       |
| Realized trading profit             |       | 0.0002       |       | 0.06         |       | 0.0005       |       | n/a              |       |
| Change in unrealized                |       | 0.0051       |       | 1.20         |       | 0.0052       |       | n/a              |       |
| Interest income                     |       | 0.0289       |       | 6.94         |       | 0.0290       |       | n/a              |       |
| Expenses                            |       | (0.0693      | )          | (16.49       | )          | (0.0440      | )          | n/a              |       |
|                                |       |         |       |         |       |         |       |             |       |
| Net asset value, end of year        |       | $            | 0.9264     |         | $          | 221.81       |       | $                | 0.9385     |   | n/a |   |
|                                |       |         |       |         |       |         |       |             |       |
| **Total Return:**                   | ** ** | ** **   | ** ** | ** **   | ** ** | ** **   | ** ** | ** **       | ** ** |
|                                |       |         |       |         |       |         |       |             |       |
| Total return before Profit Shares   |       | -3.12        | %          | -3.12        | %          | -0.31        | %          | -2.47%           |       |
| Profit Shares                       |       | -0.55        | %          | -0.50        | %          | -0.68        | %          | -0.31%           |       |
| Total return                        |       | -3.65        | %          | -3.60        | %          | -0.98        | %          | -2.77%           |       |
|                                |       |         |       |         |       |         |       |             |       |
| **Ratios to Average Net Assets:**   | ** ** | ** **   | ** ** | ** **   | ** ** | ** **   | ** ** | ** **       | ** ** |
|                                |       |         |       |         |       |         |       |             |       |
| Expenses (before Profit Shares)     |       | 7.22         | %          | 6.95         | %          | 4.18         | %          | 6.46%            |       |
| Profit Shares                       |       | 0.51         | %          | 0.51         | %          | 0.67         | %          | 0.34%            |       |
| Expenses                            |       | 7.73         | %          | 7.46         | %          | 4.85         | %          | 6.80%            |       |
|                                |       |         |       |         |       |         |       |             |       |
| Net investment loss                 |       | -4.40        | %          | -4.33        | %          | -1.60        | %          | -3.48%           |       |

 

See notes to financial statements.

 

7

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BLACKROCK GLOBALHORIZONS I L.P.

(A DelawareLimited Partnership)

 

NOTES TO FINANCIALSTATEMENTS

#  

# 1.               ORGANIZATION

#  

BlackRock Global Horizons I L.P. (the “Partnership”)was organized as an open-end fund under the Delaware Revised Uniform LimitedPartnership Act on May 11, 1993 and commenced trading activities on January 4,1994.  The Partnership engages in thespeculative trading of futures, options on futures and forward contracts on awide range of commodities.  ThePartnership currently issues Units of limited partnership interest (“Units”) ofSeries A and I at Net Asset Value as of the beginning of each month.

 

 As of September 29,2006, the Partnership’s general partner became BlackRock Investment Management,LLC (“BlackRock” or the “General Partner”). The former general partner was Merrill Lynch Alternative Investments (“MLAI”).  Until 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 managementbusinesses of MLIM and BlackRock, Inc. to create a new independent assetmanagement company.  This resulted inBlackRock becoming the general partner of the Partnership.  At the same time, the Partnership’s name waschanged from Global Horizons I L.P. to BlackRock Global Horizons I L.P.  No changes were made to the Partnership’sinvestment objective or to the Partnership’s structure as a result of thesechanges.

 

 As of December 31,2007, BlackRock began the formal liquidation of Principal Protection Plus Ltd.,the sole investor in the non-unitized series of the Partnership. As such,Principal Protection Plus Ltd. redeemed its investment in the Partnership as ofDecember 31, 2007.

 

 Effective September 1,2007, the Partnership revised its expense structure related to the Series Unitsand the Partnership began paying its own operating expenses and no longer paysBlackRock an administrative fee of 0.25% annually.  Each Series is subject to a sponsor fee,distribution fee and Trading Advisors’ management fees based on the month-endnet assets of that Series.  Each Series paysa Profit Share to the Trading Advisors based upon each Series new tradingprofits, as defined.  Other operatingexpenses incurred are allocated to each Series based upon its net assets.

 

# 2.               SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

#  

Revenue Recognition

 

Commodity futures,forwards and options contracts transactions are recorded on trade date and opencontracts are reflected in Net unrealized profit on open contracts in theStatements of Financial Condition as the difference between the originalcontract value and the market value.  Thechange in unrealized profit on open contracts from one period to the next isreflected in Change in unrealized in the Statements of Operations.

 

8

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Foreign CurrencyTransactions

 

 The Partnership’s functional currency is theU.S. dollar; however, it has trading activities in currencies other than theU.S. dollar.  Assets and liabilitiesdenominated in currencies other than the U.S. dollar are translated into U.S.dollars at the rates in effect at the dates of the Statements of FinancialCondition.  Income and expense itemsdenominated in currencies other than the U.S. dollar are translated into U.S.dollars at the rates in effect during the period.  Gains and losses resulting from thetranslation to U.S. dollars are reported in Realized in the Statements ofOperations.

 

Cash at Brokers

 

**Beginning October 1, 2007, the Partnership addedNewEdge Financial LLC (“NewEdge”) as a clearing broker.  NewEdge provides its institutional clientswith direct access to all major futures and options markets.**

** **

A portion of the assets maintainedat Merrill Lynch, Pierce, Fenner & Smith (“MLPF&S”) and NewEdgeare restricted to meet maintenance margin requirements.  Typically, margin requirements range from 1%to 10% of the face value of the derivatives traded.

 

Income Taxes

 

 No provision for income taxes has been made in these financialstatements as each Partner is individually responsible for reporting income orloss based on such Partner’s respective share of the Partnership’s income andexpenses as reported for income tax purposes.

 

Distributions

 

The Limited Partners areentitled to receive, equally per Unit, any distributions which may be made bythe Partnership.  No such distributionshave been declared for the years ended December 31, 2007, 2006 or 2005.

 

Subscriptions

 

Units are offered as ofthe close of business at the end of each month. Units are purchased as of the first business day of any month at NetAsset Value, but the subscription request must be submitted at least tencalendar days before the end of the preceding month.  Subscriptions submitted less than ten daysbefore the end of a month will be applied to Unit subscriptions as of thebeginning of the second month after receipt, unless revoked by BlackRock.

 

9

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Redemptions

 

A Limited Partner mayredeem some or all of such Partner’s Units at Net Asset Value as of the closeof business on the last business day of any calendar month upon ten calendardays’ notice (“notice period”).  Unitsredeemed on or prior to the end of the twelfth full month after purchase areassessed an early redemption charge of 3% of their Net Asset Value as of thedate of redemption which is paid to BlackRock. The amount of the fees paid for the years ended December 31, 2007,2006 and 2005 are $27,710, $148,579 and $110,785, respectively.

 

Redemptionrequests are accepted within the notice period. The Partnership does not accept any redemption requests after the noticeperiod.  All redemption requests receivedafter the notice period will be processed for the following month.

 

Dissolution of thePartnership

 

The Partnershipwill terminate on December 31, 2023 or at an earlier date if certainconditions occur, as well as under certain other circumstances as set forth inthe Limited Partnership Agreement of the Partnership.

 

Indemnifications

 

In the normal course of business, the Partnershipenters into contracts and agreements that contain a variety of representationsand warranties and which provide general indemnifications.  The Partnership’s maximum exposure underthese arrangements is unknown, as this would involve future claims that may bemade against the Partnership that have not yet occurred.  The Partnership expects the risk of anyfuture obligation under these indemnifications to be remote.

 

Estimates

 

The preparation offinancial statements in conformity with accounting principles generallyaccepted in the United States of America requires management to make estimatesand assumptions that affect the reported amounts of assets and liabilities and disclosureof contingent assets and liabilities at the date of the financial statements aswell as the reported amounts of revenues and expenses during the reportingperiod.  Actual results could differ fromthose estimates.

 

10

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3. CONDENSED SCHEDULES OF INVESTMENTS

 

The Partnership’sinvestments, defined as Net unrealized profit on open contracts on theStatements of Financial Condition, as of December 31, 2007, and 2006, areas follows:

 
|                           |       | 2007                     |       |                                           |       |                        |       |                     |       |                                            |       |                        |       |                                          |       |                        |       |                    |
|--------------------------------|------------|--------------------------|------------|------------------------------------------------|------------|-----------------------------|------------|--------------------------|------------|-------------------------------------------------|------------|-----------------------------|------------|-----------------------------------------------|------------|-----------------------------|------------|-------------------------|
| **Commodity  Industry Sector** | ** ** | **Number  of Contracts** | ** ** | **Long  Positions  Unrealized  Profit (Loss)** | ** ** | **Percent  of  Net Assets** | ** ** | **Number  of Contracts** | ** ** | **Short  Positions  Unrealized  Profit (Loss)** | ** ** | **Percent  of  Net Assets** | ** ** | **Net  Unrealized  Profit  on Open Positons** | ** ** | **Percent  of  Net Assets** | ** ** | **Maturity  Dates**     |
|                           |       |                     |       |                                           |       |                        |       |                     |       |                                            |       |                        |       |                                          |       |                        |       |                    |
| Agriculture                    |       | 1,110                    |       | $                                              | 771,016    |                        | 0.47       | %                        | (290       | )                                               | $          | (86,650                     | )          | -0.05                                         | %          | $                           | 684,366    |                    | 0.42 | % | January 08 - December 08 |
| Currencies                     |       | 603,545                  |       | 248,790                                        |       | 0.15                        | %          | (1,597,150               | )          | (109,974                                        | )          | -0.07                       | %          | 138,816                                       |       | 0.08                        | %          | January 08 - March 08   |
| Energy                         |       | 361                      |       | 782,026                                        |       | 0.48                        | %          | (70                      | )          | (175,400                                        | )          | -0.11                       | %          | 606,626                                       |       | 0.37                        | %          | January 08 - June 08    |
| Interest rates                 |       | 3,586                    |       | 923,143                                        |       | 0.56                        | %          | (1,677                   | )          | (395,147                                        | )          | -0.24                       | %          | 527,996                                       |       | 0.32                        | %          | March 08 - September 09 |
| Metals                         |       | 611                      |       | (1,824,911                                     | )          | -1.11                       | %          | (536                     | )          | 2,346,714                                       |       | 1.43                        | %          | 521,803                                       |       | 0.32                        | %          | January 08 - April 08   |
| Stock indices                  |       | 456                      |       | 118,219                                        |       | 0.07                        | %          | (373                     | )          | 11,813                                          |       | 0.01                        | %          | 130,032                                       |       | 0.08                        | %          | January 08 - March 08   |
|                           |       |                     |       |                                           |       |                        |       |                     |       |                                            |       |                        |       |                                          |       |                        |       |                    |
| Total                          |       |                     |       | $                                              | 1,018,283  |                        | 0.62       | %                        |       |                                            | $          | 1,591,356                   |       | 0.97                                          | %          | $                           | 2,609,639  |                    | 1.59 | % |   |

 
|                            | 2006       |                     |       |                                           |       |                       |       |                     |       |                                            |       |                        |       |                                          |       |                        |       |
|---------------------------------|------------|--------------------------|------------|------------------------------------------------|------------|----------------------------|------------|--------------------------|------------|-------------------------------------------------|------------|-----------------------------|------------|-----------------------------------------------|------------|-----------------------------|------------|
| **Commodity  Industry Sect4or** | ** ** | **Number  of Contracts** | ** ** | **Long  Positions  Unrealized  Profit (Loss)** | ** ** | **Percent of  Net Assets** | ** ** | **Number  of Contracts** | ** ** | **Short  Positions  Unrealized  Profit (Loss)** | ** ** | **Percent  of  Net Assets** | ** ** | **Net  Unrealized  Profit  on Open Positons** | ** ** | **Percent  of  Net Assets** | ** ** | **Maturity  Dates** |
|                            |       |                     |       |                                           |       |                       |       |                     |       |                                            |       |                        |       |                                          |       |                        |       |   |
| Agriculture                     |       | 1,364                    |       | $                                              | 636,526    |                       | 0.28       | %                        | (850       | )                                               | $          | (256,219                    | )          | -0.11                                         | %          | $                           | 380,307    |   | 0.17 | % | January 07 - December 07 |
| Currencies                      |       | 1,880,992                |       | 285,179                                        |       | 0.13                       | %          | (6,920,247               | )          | 1,343,481                                       |       | 0.59                        | %          | 1,628,660                                     |       | 0.72                        | %          | January 07 - March 07 |
| Energy                          |       | 36                       |       | (76,888                                        | )          | -0.03                      | %          | (681                     | )          | 1,515,133                                       |       | 0.67                        | %          | 1,438,245                                     |       | 0.64                        | %          | January 07 - June 07 |
| Interest rates                  |       | 2,458                    |       | (1,428,245                                     | )          | -0.63                      | %          | (6,443                   | )          | 2,574,900                                       |       | 1.13                        | %          | 1,146,655                                     |       | 0.50                        | %          | March 07 - September 08 |
| Metals                          |       | 365                      |       | 387,404                                        |       | 0.17                       | %          | (162                     | )          | 277,391                                         |       | 0.12                        | %          | 664,795                                       |       | 0.29                        | %          | January 07 - April 07 |
| Stock indices                   |       | 2,146                    |       | 1,751,496                                      |       | 0.77                       | %          | (32                      | )          | 6,413                                           |       | 0.00                        | %          | 1,757,909                                     |       | 0.77                        | %          | January 07 - March 07 |
|                            |       |                     |       |                                           |       |                       |       |                     |       |                                            |       |                        |       |                                          |       |                        |       |   |
| Total                           |       |                     |       | $                                              | 1,555,472  |                       | 0.69       | %                        |       |                                            | $          | 5,461,099                   |       | 2.40                                          | %          | $                           | 7,016,571  |   | 3.09 | % |   |
|                                 |            |                          |            |                                                |            |                            |            |                          |            |                                                 |            |                             |            |                                               |            |                             |            |  |  |  |  |  |

 

No individual contract’s unrealized gain or losscomprised greater than 5% of the Partnership’s capital as of December 31,2007 or 2006.

 

11

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4.               COMBINATION OF THE FEEDER FUNDS

 

Effective afterthe close of business on December 31, 2006, the Feeder Funds were mergedinto the Partnership in a tax-free reorganization. All of the investors in theFeeder Funds received new Series G Units of the Partnership with aninitial Net Asset Value per Unit of $1.00 equal to their December 31, 2006Net Asset Value.   Issuance of the newUnits had no adverse economic effect on investors in any of the funds.  BlackRock contributed $2,788 to thePartnership, the amount necessary due to the effects of rounding to insure allinvestors received Units equal to the value of their original holdings (roundedup to the next whole dollar).   The netassets of the Partnership as of December 31, 2006 were not affected bythis transaction.

 

The followingsummarizes the affect of the transaction on the Partnership’s reported Partners’Capital.

 
| ** **                    | ** ** | **Non-unitized** | ** ** | ** **   | ** ** |
|-------------------------------|------------|------------------|------------|--------------|------------|
| ** **                    | ** ** | **Series**       | ** ** | **Series G** | ** ** |
|                          |       |             |       |         |       |
| December 31, 2006 as reported |       | $                | 52,772,626 |         | $          | — |   |
|                          |       |             |       |         |       |
| Conversion to new Series      |       | (44,500,323      | )          | 44,503,111   |       |
|                          |       |             |       |         |       |
| Balance as of January 1, 2007 |       | $                | 8,272,303  |         | $          | 44,503,111 |   |

 

5.               RELATED PARTY TRANSACTIONS

 

**Some of the Partnership’s U.S. dollar assets are maintainedat MLPF&S.  MLPF&S is a whollyowned subsidiary of Merrill Lynch, which in turn maintains a significantownership interest in BlackRock, Inc., the parent company of the GeneralPartner. On assets held in U.S. dollars, Merrill Lynch credits the Partnershipwith interest at the prevailing 91-day U.S. Treasury bill rate. The Partnershipis credited with interest on any of its net gains actually held by MLPF&Sin non-U.S. dollar currencies at a prevailing local rate received by MerrillLynch.  Merrill Lynch may derive certaineconomic benefit, in excess of the interest which Merrill Lynch pays to thePartnership, from possession of such assets. Additionally some of thePartnership’s U.S. dollar assets are maintained at PFPC, Inc. (“PFPC”), anaffiliate of the General Partner.  PFPCis the Partnership’s Transfer Agent.  Thetransfer agency fees paid to PFPC are included in Administrator fees on theStatement of Operations.**

** **

 Merrill Lynch charges the Partnership Merrill Lynch’s cost offinancing realized and unrealized losses on the Partnership’s non-U.S. dollardenominated positions.  Such amounts arenetted against interest income due to the insignificance of such amounts.

 

Series A, F and Gpay sponsor fees to BlackRock at an annual rate of 1.25% and Series I payssponsor fees at a rate of 1.00% of each Series’ month-end net assets.  Each Series pays distribution fees at3.00% of month-end net assets.

 

12

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EffectiveSeptember 1, 2007, MLPF&S and NewEdge are paid actual commoditybrokerage commissions and clearing costs at market rates on a per trade basis,and as such, are recorded as a reduction of trading profit.  Prior to September 1, 2007, Series A,F and G Units paid brokerage commissions to MLPF&S at a flat monthly rateof .583 of 1% (a 7.00% annual rate) of the Series’ month-end trading assets andsuch amounts were not transaction based and were included in expenses. Series Ipaid brokerage commissions to MLPF&S at a flat monthly rate of .333 of 1%(a 4.00% annual rate) of the Series’ month-end trading assets. Month-endtrading assets were not reduced, for purposes of calculating brokeragecommissions and administrative fees, by any accrued brokerage commissions,administrative fees, Profit Shares or other fees or charges.

 

BlackRockestimates that the round-turn equivalent commission rate charged to thePartnership by MLPF&S during the years ended December 31, 2007, 2006and 2005 was approximately $41, $47 and $39, respectively (not including, incalculating round-turn equivalents, forward contracts on a futures-equivalentbasis).

 

# In addition, BlackRock will reimburse the Partnership forfees and expenses paid by the Partnership, not including the Trading Advisors’Profit Shares (such fees and expenses, exclusive of the Trading Advisors’Profit Shares, collectively referred to herein as “Capped Expenses”) that wouldbe in excess of 1/12 of 7.25% of the Fund’s net asset value (the “Expense Cap”)on the last business day of each month (each a “Regularly Scheduled CalculationDate”).  Because Series I is notsubject to the 3.0% distribution fee, the Expense Cap for Series I is4.25% annually, rather than the 7.25% annual Expense Cap for all otherSeries.  On each Regularly ScheduledCalculation Date, BlackRock will waive the portion of the sponsor fees thatwould otherwise be payable to BlackRock that is necessary to reduce the CappedExpenses until they equal the Expense Cap. If the waiver of the sponsor fees is not sufficient to lower thePartnership’s Capped Expenses to the Expense Cap, BlackRock will pay thoseCapped Expenses necessary so that Capped Expenses do not exceed the ExpenseCap.  However, if on any RegularlyScheduled Calculation Date Capped Expenses are less than the Expense Cap, thedifference will be used to reimburse BlackRock for any sponsor fees that werewaived or any Capped Expenses paid by BlackRock on preceding Calculation Datesin the same calendar year.  Any suchamounts may not be used to reimburse BlackRock for any sponsor fees that werewaived or any Capped Expenses paid by BlackRock in preceeding calendar years.

#  

6.               ADVISORY AGREEMENTS

 

 The Partnership and the Trading Advisors haveeach entered into Advisory Agreements. These Advisory Agreements generally renew one year after they areentered into, subject to certain renewal rights exercisable by the Partnership.The Trading Advisors determine the commodity futures, options on futures,forwards and options contracts trades to be made on behalf of their respectivePartnership accounts, subject to certain trading policies and to certain rightsreserved by BlackRock.  The terms of theAdvisory Agreements have not changed as a result of the change in the GeneralPartner of the Partnership.  Each Series paysmanagement fees to the Trading Advisors up to 3.00% of that Series netassets allocated to each individual Trading Advisor.

 

 Profit Shares, generally ranging from 17% to25% of any New Trading Profit, as defined, recognized by each Trading Advisorconsidered individually, irrespective of the overall performance of thePartnership, as of either the end of each calendar quarter or year and upon thenet reallocation of assets away from a Trading Advisor, are paid by thePartnership to each Trading Advisor. Profit Shares are also paid out in respect of Units redeemed as of theend of interim months, to the extent of the applicable percentage of any NewTrading Profit attributable to such Units.

 

13

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7.               WEIGHTED AVERAGE UNITS

 

 The weightedaverage number of Units outstanding is computed for purposes of disclosing netincome (loss) per weighted average Unit. The weighted average number of Units outstanding for the years ended December 31,2007, 2006 and 2005 equals the Units outstanding as of such date, adjustedproportionately for Units sold and redeemed based on the respective length oftime each was outstanding during the year.

 

8.               UNITIZED AND NON-UNITIZED SERIES

 

At December 31,2007 and 2006, the Net Asset Values of the different unitized Series andthe non-unitized Series of the Partnership are as follows:

 

December 31, 2007

 

Unitized Series
| ** ** | ** ** | ** **    | ** **        | ** **    | ** **  | **Net Asset** | ** ** |
|------------|------------|---------------|-------------------|---------------|-------------|---------------|------------|
| ** ** | ** ** | **Net Asset** | ** **        | **Number of** | ** **  | **Value per** | ** ** |
| ** ** | ** ** | **Value**     | ** **        | **Units**     | ** **  | **Unit**      | ** ** |
|       |       |          |              |          |        |          |       |
| Series A   |       | $             |  90,473,777  |          | 91,995,885  |          | $          | 0.9835 |   |
| Series F   |       | 32,035,694    |              | 135,637       |        | $             | 236.19     |   |
| Series G   |       | 40,219,435    |              | 39,338,704    |        | $             | 1.0224     |   |
| Series I   |       | 998,964       |              | 949,500       |        | $             | 1.0520     |   |
|       |       | $             |  163,727,870 |          | 132,419,726 |          |       |   |

 

 

December 31,2006

 

UnitizedSeries
| ** ** | ** ** | ** **    | ** **        | ** **    | ** **  | **Net Asset** | ** ** |
|------------|------------|---------------|-------------------|---------------|-------------|---------------|------------|
| ** ** | ** ** | **Net Asset** | ** **        | **Number of** | ** **  | **Value per** | ** ** |
| ** ** | ** ** | **Value**     | ** **        | **Units**     | ** **  | **Unit**      | ** ** |
|       |       |          |              |          |        |          |       |
| Series A   |       | $             |  134,723,235 |          | 139,974,357 |          | $          | 0.9625 |   |
| Series F   |       | 35,134,942    |              | 152,114       |        | $             | 230.98     |   |
| Series I   |       | 4,718,542     |              | 4,713,744     |        | $             | 1.0010     |   |
|       |       | $             |  174,576,719 |          | 144,840,215 |          |       |   |

 

Non-unitizedSeries
|                                     |   |      |        |
|------------------------------------------|--------|-----------|-------------|
| BlackRock Futures Investments L.P.       |   | $         | 35,888,599  |   |
| BlackRock Principal Protection L.P.      |   | 8,611,724 |        |
| BlackRock Principal Protection Plus Ltd. |   | 8,272,303 |        |
|                                     |   | $         | 52,772,626  |   |
|                                     |   |      |        |
| Total partners' capital                  |   | $         | 227,349,345 |   |

 

BlackRock has agreed tomaintain a General Partner’s interest of at least 1% of the total capital ofeach Series in the Partnership. BlackRock and each Limited Partner share in the profits and losses ofthe Partnership in proportion to their respective interests in the Partnership.

 

14

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On June 1,2006, an investor in Series A converted 1,040,907 Units to 1,016,081 Unitsof Series I, both valued at $1,022,483 resulting in the net conversion of24,826 Units. The conversion did notimpact partners’ capital as a whole.

 

9.               COPPER SETTLEMENT

 

The Partnership, as a member of a class of plaintiffs,received a settlement payment in February 2005 relating to certain coppertrades made by a number of investors, including the Partnership, during aperiod in the mid-1990s. Members of the class were those who purchased or soldComex copper futures or options contracts between June 24, 1993 and June 15,1996.  The amount of the settlement forthe Partnership included in Realized under Trading profits (losses) on theStatements of Operations for the years ended December 31, 2006 and 2005 is$42,374 and $27,888, respectively.

 

10.          FAIRVALUE AND OFF-BALANCE SHEET RISK

 

Thenature of this Partnership has certain risks, which cannot all be presented onthe financial statements.  The followingsummarizes some of those risks.

 

MarketRisk

 

Derivativeinstruments involve varying degrees of off-balance sheet market risk.  Changes in the level or volatility ofinterest rates, foreign currency exchange rates or the market values of thefinancial instruments or commodities underlying such derivative instrumentsfrequently result in changes in the Partnership’s Net unrealized profit (loss)on such derivative instruments as reflected in the Statements of Financial Condition.  The Partnership’s exposure to market risk isinfluenced by a number of factors, including the relationships among thederivative instruments held by the Partnership as well as the volatility andliquidity of the markets in which the derivative instruments are traded.  Investments in foreign markets may alsoentail legal and political risks.

 

BlackRockhas procedures in place intended to control market risk exposure, althoughthere can be no assurance that they will, in fact, succeed in doing so.  These procedures focus primarily on monitoringthe trading of the Trading Advisors, calculating the Net Asset Value of thePartnership as of the close of business on each day and reviewing outstandingpositions, or itself reallocating Partnership assets among Trading Advisors(although typically only as of the end of a month) forover-concentrations.  While BlackRockdoes not itself intervene in the markets to hedge or diversify the Partnership’smarket exposure, BlackRock may urge the Trading Advisors to reallocatepositions in an attempt to avoid over-concentrations.  Except in cases in which it appears that theTrading Advisors have begun to deviate from past practice or trading policiesor to be trading erratically, BlackRock’s basic risk control procedures consistsimply of the ongoing process of Trading Advisor monitoring, with the marketrisk controls being applied by the Trading Advisors themselves.

 

15

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CreditRisk

 

Therisks associated with exchange-traded contracts are typically perceived to beless than those associated with over-the-counter (non-exchange-traded)transactions, because exchanges typically (but not universally) provideclearinghouse arrangements in which the collective credit (in some caseslimited in amount, in some cases not) of the members of the exchange is pledgedto support the financial integrity of the exchange. In over-the-countertransactions, on the other hand, traders must rely solely on the credit oftheir respective individual counterparties. Margins, which may be subject toloss in the event of a default, are generally required in exchange trading, andcounterparties may also require margin in the over-the-counter markets.

 

ThePartnership, in its normal course of business, enters into various contracts,with MLPF&S and NewEdge acting as its commodity brokers. Pursuant to thebrokerage agreements with MLPF&S and NewEdge (which includes nettingarrangements with each broker), to the extent that such trading results inreceivables from and payables to MLPF&S and NewEdge, these receivables andpayables are offset and reported as a net receivable or payable and included inthe Statements of Financial Condition under Equity in commodity futures tradingaccounts.

 

11.          RECENTACCOUNTING PRONOUNCEMENTS

 

In July 2006, theFinancial Accounting Standards Board (“FASB”) issued Interpretation No. 48(“FIN 48”) entitled “Accounting for Uncertainty in Income Taxes — aninterpretation of FASB Statement No. 109”. FIN 48 prescribes the minimumrecognition threshold a tax position must meet in connection with accountingfor uncertainties in income tax positions taken or expected to be taken by anentity before being measured and recognized in the financial statements. ThePartnership adopted the provisions of FIN 48 as of January 1, 2008.  The impact of the adoption of FIN 48 was notsignificant to the Partnership’s financial statements.

 

In September 2006, theFASB issued Statement of Financial Accounting Standards No. 157, “FairValue Measurements” (“FAS 157”).  FAS 157 establishes a common definitionfor fair value under accounting principles generally accepted in the UnitedStates of America, establishes a framework for measuring fair value and expandsdisclosure requirements about such fair value measurements.  FAS 157 iseffective for fiscal years beginning after November 15, 2007.  The Partnership is currently evaluating theimpact of adopting FAS 157 on its financial statements.

 

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*   *   *   *  *   *   *   *   *   *  *   *   *

 

To the best of the knowledge and belief of the

undersigned, the information contained in this

report is accurate and complete.

 

 

 

Michael Pungello

Chief Financial Officer

of BlackRock Global Horizons I L.P.

and

Managing Director

BlackRock Investment Management, LLC

General Partner of

BlackRock Global Horizons I L.P.

 

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