##### Table of Contents





UNITED STATES
    SECURITIES AND EXCHANGE COMMISSION
    WASHINGTON, D.C. 20549
  FORM 10-Q
  (X) QUARTERLY REPORT PURSUANT TO SECTION 13 or
    15(d)
  OF THE SECURITIES EXCHANGE ACT OF 1934
  June 30, 2008
  OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 or
    15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934
  
   000-26132
  SMITH BARNEY DIVERSIFIED FUTURES FUND L.P.
    New York

13-3729162(State or other jurisdiction of

(I.R.S. Employerincorporation or organization)

Identification No.)   c/o Citigroup
    Managed Futures LLC
 731 Lexington Ave - 25th Fl
 New York, New York 10022
    (212) 599-2011
       Yes X     No
   Rule 12b-2
  Large accelerated filer

Accelerated filer

Non-accelerated filerX

Smaller reporting company    rule 12b-2
  Yes      No X




---



##### 





SMITH
    BARNEY DIVERSIFIED FUTURES FUND L.P.FORM 10-Q
    INDEX
   
 PageNumberPART I  Financial
    Information:Item 1.

Financial Statements:Statements of Financial Condition at
    June 30, 2008 and December 31, 2007 (unaudited)

3Schedules of Investments at June 30, 2008
    and December 31, 2007 (unaudited)

4  5Statements of Income and Expenses and
    Partners Capital for the three
    and six months ended June 30, 2008 and 2007 (unaudited)

6Statements of Cash Flows for the three and six
    months ended June 30, 2008 and 2007 (unaudited)

7Notes to Financial Statements (unaudited)

8  14Item 2.

Managements Discussion and Analysis of
    Financial Condition and Results of Operations

15  17Item 3.

Quantitative and Qualitative Disclosures about
    Market Risk

18  21Item 4.

Controls and Procedures

22PART II  Other
    Information

23  25   2




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##### Table of Contents



PART I Item 1.
    Financial Statements Smith
    Barney Diversified Futures Fund L.P.
    Statements of Financial Condition
    (Unaudited)  June 30,


December 31,2008


2007Assets:Investment in Partnerships, at fair value

$
53,112,129


$
47,978,230Cash


65,948



66,383Distribution receivable


60,559



95,184Total assets

$
53,238,636


$
48,139,797Liabilities and Partners Capital:Liabilities:Accrued expenses:Brokerage commissions

$
244,010


$
220,641Management fees


81,975



73,161Incentive fees


359,116



105,828Other


48,779



45,913Redemptions payable


582,883



296,617Total liabilities


1,316,763



742,160Partners Capital:General Partner, 835.3289 and 311.4862 Unit equivalents
    outstanding in 2008 and 2007, respectively


1,672,579



542,575Limited Partners, 25,095.7416 and 26,899.0407 Redeemable Units
    of Limited Partnership Interest outstanding in 2008 and 2007,
    respectively


50,249,294



46,855,062Total partners capital


51,921,873



47,397,637Total liabilities and partners capital

$
53,238,636


$
48,139,797    3




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##### Table of Contents



Smith
    Barney Diversified Futures Fund L.P.
    Schedule of Investments
    June 30, 2008
    (Unaudited)  % of PartnersFair Value


CapitalInvestment in PartnershipsCMF Winton Master L.P.

$
15,093,512



29.07
%CMF Campbell Master Fund L.P.


8,241,178



15.87CMF Willowbridge Argo Master Fund L.P.


11,449,185



22.05CMF Graham Capital Master Fund L.P.


10,341,513



19.92CMF Eckhardt Master Fund L.P.


7,986,741



15.38Total investment in Partnerships, at fair value

$
53,112,129



102.29
%    4




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##### Table of Contents



Smith
    Barney Diversified Futures Fund L.P.
    Schedule of Investments
    December 31, 2007
    (Unaudited)
  % of PartnersFair Value


CapitalInvestment in PartnershipsCMF Winton Master L.P.

$
15,945,975



33.64
%CMF Campbell Master Fund L.P.


11,181,427



23.59CMF Willowbridge Argo Master Fund L.P.


9,223,461



19.46CMF Graham Capital Master Fund L.P.


11,627,367



24.53Total investment in Partnerships, at fair value

$
47,978,230



101.22
%    5




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##### Table of Contents



Smith
    Barney Diversified Futures Fund L.P.Statements of Income and Expenses and
    Partners Capital
 (Unaudited)
  Three Months Ended


Six Months EndedJune 30,


June 30,2008


2007


2008


2007Income:Net gains (losses) on trading of commodity interests:Change in net unrealized gains (losses) on investment in
    Partnerships

$
5,337,137


$
8,740,090


$
9,501,414


$
4,359,370Expenses:Brokerage commissions


697,142



691,475



1,383,469



1,388,370Management fees


233,962



231,557



460,439



465,590Incentive fees


359,116



55,195



714,824



55,195Other


32,850



20,492



56,725



43,803Total expenses


1,323,070



998,719



2,615,457



1,952,958Net income (loss)


4,014,067



7,741,371



6,885,957



2,406,412AdditionsGeneral Partner


1,000,000







1,000,000



RedemptionsGeneral Partner














(1,441,407
)RedemptionsLimited Partners


(1,720,585
)


(1,392,447
)


(3,361,721
)


(2,836,607
)Net increase (decrease) in Partners Capital


3,293,482



6,348,924



4,524,236



(1,871,602
)Partners Capital, beginning of period


48,628,391



45,175,985



47,397,637



53,396,511Partners Capital, end of period

$
51,921,873


$
51,524,909


$
51,921,873


$
51,524,909Net Asset Value per Unit (25,931.0705 and 29,416.8942 Units
    outstanding at June 30, 2008 and 2007, respectively)

$
2,002.30


$
1,751.54


$
2,002.30


$
1,751.54Net income (loss) per Redeemable Unit of Limited Partnership
    Interest and General Partner Unit equivalent

$
153.69


$
258.26


$
260.41


$
89.06    6




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##### Table of Contents



Smith
    Barney Diversified Futures Fund L.P.
 Statements of Cash Flows
 (Unaudited)
  Three Months Ended


Six Months EndedJune 30,


June 30,2008


2007


2008


2007Cash flows from operating activities:Net income (loss)

$
4,014,067


$
7,741,371


$
6,885,957


$
2,406,412Adjustments to reconcile net income (loss) to net cash provided
    by (used in) operating activities:Changes in operating assets and liabilities:Purchase of Investment in Partnership


(8,000,000
)






(8,000,000
)


Proceeds from sale of investment in Partnerships


9,984,419



3,512,110



12,402,140



6,226,809Net unrealized (appreciation) depreciation on investment in
    Partnerships


(5,322,729
)


(8,740,090
)


(9,536,039
)


(4,359,370
)(Increase) decrease in distribution receivable


(14,408
)






34,625



Accrued expenses:Increase (decrease) in brokerage commissions


15,333



23,926



23,369



(8,559
)Increase (decrease) in management fees


6,651



7,977



8,814



(3,329
)Increase (decrease) in incentive fees


3,408



55,195



253,288



28,409Increase (decrease) in other


(7,506
)


(8,062
)


2,866



5,574Net cash provided by (used in) operating activities


679,235



2,592,427



2,075,020



4,295,946Cash flows from financing activities:Proceeds from additionsGeneral Partner


1,000,000







1,000,000



Payments for redemptionsLimited Partners


(1,686,510
)


(2,600,186
)


(3,075,455
)


(2,854,605
)Payments for redemptionsGeneral Partner














(1,441,407
)Net cash provided by (used in) financing activities


(686,510
)


(2,600,186
)


(2,075,455
)


(4,296,012
)Net change in cash


(7,275
)


(7,759
)


(435
)


(66
)Cash, at beginning of period


73,223



55,906



66,383



48,213Cash, at end of period

$
65,948


$
48,147


$
65,948


$
48,147Non-cash financing activities:Change in redemptions payable

$
34,075


$



$
286,266


$
    7




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##### Table of Contents



Smith
    Barney Diversified Futures Fund L.P.Notes to Financial Statements
    June 30, 2008
    (Unaudited)
  1.
    General:        Form 10-K
    2.
    Financial
    Highlights:    Three Months Ended


Six Months EndedJune 30,


June 30,2008


2007


2008


2007Net realized and unrealized gains (losses)*

$
177.59


$
268.54


$
306.84


$
107.38Expenses **


(23.90
)


(10.28
)


(46.43
)


(18.32
)Increase (decrease) for the period


153.69



258.26



260.41



89.06Net Asset Value per Redeemable Unit, beginning of period


1,848.61



1,493.28



1,741.89



1,662.48Net Asset Value per Redeemable Unit, end of period

$
2,002.30


$
1,751.54


$
2,002.30


$
1,751.54   *
    
    Includes brokerage commissions.**
    
    Excludes brokerage commissions. 8




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##### Table of Contents



Smith
    Barney Diversified Futures Fund L.P.
    Notes to Financial Statements
    June 30, 2008
    (Unaudited)
   Financial
    Highlights (continued):
 Six Months EndedThree Months Ended June 30,


June 30,2008


2007


2008


2007Ratios to Average Net Assets:***Net investment income (loss) before incentive fees****


(7.7
)%


(7.8
)%


(7.7
)%


(7.8
)%Operating expense


7.7
%


7.8
%


7.7
%


7.8
%Incentive fees


0.7
%


0.1
%


1.4
%


0.1
%Total expenses


8.4
%


7.9
%


9.1
%


7.9
%Total return:Total return before incentive fees


9.1
%


17.4
%


16.5
%


5.5
%Incentive fees


(0.8
)%


(0.1
)%


(1.5
)%


(0.1
)%Total return after incentive fees


8.3
%


17.3
%


15.0
%


5.4
%   ***
    
    Annualized (other than incentive fees).****
    
    Interest income less total expenses (exclusive of incentive
    fees).    3.
    Trading
    Activities:        4.
    Fair
    Value Measurements:  Investments.
  Fair Value Measurements. Fair Value Measurements No. FAS 157-2, Effective Date of FASB Statement No. 157
 9




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##### Table of Contents



Smith
    Barney Diversified Futures Fund L.P.
    Notes to Financial Statements
    June 30, 2008
    (Unaudited)
    Quoted Prices inActive Markets


Significant Other


Significantfor Identical


Observable Inputs


Unobservable6/30/2008


Assets (Level 1)


(Level 2)


Inputs (Level 3)AssetsInvestment in Partnerships

$
53,112,129


$



$
53,112,129


$
Total fair value

$
53,112,129


$



$
53,112,129


$
   5.
    Investment
    in Partnerships:       10




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##### Table of Contents



Smith
    Barney Diversified Futures Fund L.P.
    Notes to Financial Statements
    June 30, 2008
    (Unaudited)
          give-up,
   11




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##### Table of Contents



Smith
    Barney Diversified Futures Fund L.P.
    Notes to Financial Statements
    June 30, 2008
    (Unaudited)
    June 30, 2008Total Assets


Total Liabilities


Total CapitalWinton Master

$
567,942,303


$
1,516,509


$
566,425,794Campbell Master


184,233,917



2,818,639



181,415,278Willowbridge Master


300,559,327



405,574



300,153,753Graham Master


236,314,300



11,928,431



224,385,869Eckhardt Master


26,402,989



167,421



26,235,568Total

$
1,315,452,836


$
16,836,574


$
1,298,616,262   December 31, 2007Total Assets


Total Liabilities


Total CapitalWinton Master

$
464,943,301


$
7,898,167


$
457,045,134Campbell Master


226,825,488



10,129,288



216,696,200Willowbridge Master


213,552,209



497,187



213,055,022Graham Master


223,277,892



9,683,505



213,594,387Total

$
1,128,598,890


$
28,208,147


$
1,100,390,743     June 30, 2008

For the three months ended June 30, 2008% of









NetPartnerships

Fair

Income

Expenses

Income

Investment

RedemptionsInvestment

Net Assets

Value

(Loss)

Commissions

Other

(Loss)

Objective

PermittedCommodityWinton Master


29.07
%

$
15,093,512



1,016,183



3,062



254



1,012,867


Portfolio

MonthlyFinancials,
    Metals &
    EnergyCampbell Master


15.87
%


8,241,178



480,863



1,413



382



479,068


Portfolio

MonthlyCommodityWillowbridge Master


22.05
%


11,449,185



2,347,373



3,373



371



2,343,629


Portfolio

MonthlyCommodityGraham Master


19.92
%


10,341,513



877,346



15,656



389



861,301


Portfolio

MonthlyCommodityEckhardt Master


15.38
%


7,986,741



655,020



2,652



12,096



640,272


Portfolio

MonthlyTotal





$
53,112,129


$
5,376,785


$
26,156


$
13,492


$
5,337,137   12




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##### Table of Contents



Smith
    Barney Diversified Futures Fund L.P.
    Notes to Financial Statements
    June 30, 2008
    (Unaudited)
  June 30, 2008

For the six months ended June 30, 2008% of









NetPartnerships

Fair

Income

Expenses

Income

Investment

RedemptionsInvestment

Net Assets

Value

(Loss)

Commissions

Other

(Loss)

Objective

PermittedWinton Master


29.07
%

$
15,093,512


$
3,183,092


$
9,305


$
518


$
3,173,269


Commodity
    Portfolio

MonthlyFinancials
    Metals &
    EnergyCampbell Master


15.87
%


8,241,178



632,491



3,533



842



628,116


Portfolio

MonthlyCommodityWillowbridge Master


22.05
%


11,449,185



3,160,239



8,106



720



3,151,413


Portfolio

MonthlyCommodityGraham Master


19.92
%


10,341,513



1,940,209



31,032



833



1,908,344


Portfolio

MonthlyCommodityEckhardt Master


15.38
%


7,986,741



655,020



2,652



12,096



640,272


Portfolio

MonthlyTotal





$
53,112,129


$
9,571,051


$
54,628


$
15,009


$
9,501,414   December 31, 2007

For the three months ended June 30, 2007% of









NetPartnerships

Fair

Income

Expenses

Income

Investment

RedemptionsInvestment

Net Assets

Value

(Loss)

Commissions

Other

(Loss)

Objective

PermittedCommodityWinton Master


33.64
%

$
15,945,975


$
1,946,313


$
7,900


$
437


$
1,937,976


Portfolio

MonthlyFinancials
    Metals &
    EnergyCampbell Master


23.59
%


11,181,427



1,949,497



3,264



548



1,945,685


Portfolio

MonthlyCommodityWillowbridge Master


19.46
%


9,223,461



2,018,212



5,755



450



2,012,007


Portfolio

MonthlyCommodityGraham Master


24.53
%


11,627,367



2,860,477



15,440



615



2,844,422


Portfolio

MonthlyTotal





$
47,978,230


$
8,774,499


$
32,359


$
2,050


$
8,740,090   December 31, 2007

For the six months ended June 30, 2007% of









NetPartnerships

Fair

Income

Expenses

Income

Investment

RedemptionsInvestment

Net Assets

Value

(Loss)

Commissions

Other

(Loss)

Objective

PermittedCommodityWinton Master


33.64
%

$
15,945,975


$
1,105,010


$
21,486


$
961


$
1,082,563


Portfolio

MonthlyFinancials
    Metals &
    EnergyCampbell Master


23.59
%


11,181,427



1,274,994



7,564



976



1,266,454


Portfolio

MonthlyCommodityWillowbridge Master


19.46
%


9,223,461



82,885



15,220



1,029



66,636


Portfolio

MonthlyCommodityGraham Master


24.53
%


11,627,367



1,971,163



26,220



1,226



1,943,717


Portfolio

MonthlyTotal





$
47,978,230


$
4,434,052


$
70,490


$
4,192


$
4,359,370  13




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##### Table of Contents



Smith
    Barney Diversified Futures Fund L.P.
    Notes to Financial Statements
    June 30, 2008
    (Unaudited)
  6.
    Financial
    Instrument Risks:             14




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##### Table of Contents



Item 2.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations.  Liquidity
    and Capital Resources
        Critical
    Accounting Policies
  Use of Estimates.
  Investments.
  Fair Value Measurements. Fair Value Measurements No. FAS 157-2, Effective Date of FASB Statement No. 157
    Quoted Prices inActive Markets


Significant Other


Significantfor Identical


Observable Inputs


Unobservable6/30/2008


Assets (Level 1)


(Level 2)


Inputs (Level 3)AssetsInvestment in Partnerships

$
53,112,129


$



$
53,112,129


$
Total fair value

$
53,112,129


$



$
53,112,129


$
   Forward Foreign Currency Contracts. agreed-upon
 15




---



##### Table of Contents



Options.
  Income Taxes.
      Recent Accounting Pronouncements.
  Results
    of Operations
  non-U.S. interest non-U.S. interest
   16




---



##### Table of Contents



non-U.S. interest non-U.S. interest,
    30-day and/or 90-day
       17




---



##### Table of Contents



Item 3.
    Quantitative
    and Qualitative Disclosures about Market Risk          one-day
  Form 10-K
 18




---



##### Table of Contents



June 30,
    2008
    (Unaudited)
  Three Months Ended June 30, 2008% of Total


High


Low


AverageMarket Sector

Value at Risk


Capital


Value at Risk


Value at Risk


Value at Risk*Currencies:Exchange Traded Contracts

$
3,803,627



0.67
%

$
5,762,547


$
3,711,917


$
4,396,103Energy


4,144,950



0.73
%


5,618,000



3,028,550



4,165,400Grains


2,799,144



0.50
%


3,880,322



1,912,675



2,781,729Interest Rates U.S.


2,167,200



0.38
%


2,615,600



160,797



1,198,017Interest Rates Non-U.S.


4,659,574



0.82
%


5,714,598



1,875,349



4,632,906Livestock


135,970



0.02
%


346,800



53,775



212,283Lumber


3,300



0.00
%**


3,300



2,200



3,300Metals :Exchange Traded Contracts


1,394,750



0.25
%


2,028,500



1,125,750



1,594,667OTC Contracts


1,647,127



0.29
%


1,718,310



1,009,998



1,632,542Softs


679,622



0.12
%


1,498,048



625,308



852,049Indices


10,589,074



1.87
%


10,676,120



2,612,290



7,121,637Total

$
32,024,338



5.65
%    *
    
    Average of month-end Values at Risk.**
    
    Due to rounding    June 30,
    2008
    (Unaudited)
  Three Months Ended June 30, 2008% of Total


High


Low


AverageMarket Sector

Value at Risk


Capital


Value at Risk


Value at Risk


Value at Risk*Currencies:OTC Contracts

$
5,356,092



2.95
%

$
5,356,092


$
2,687,710


$
4,282,816Energy


1,091,200



0.60
%


1,689,425



350,150



917,225Interest Rates U.S.


568,980



0.31
%


1,181,910



467,030



907,377Interest Rates Non-U.S.


2,624,160



1.45
%


3,132,142



854,534



2,209,270Metals:Exchange Traded Contracts


19,500



0.01
%


168,000



19,500



80,917OTC Contracts


360,237



0.20
%


398,920



228,353



335,147Indices


7,776,342



4.29
%


7,776,342



3,934,156



5,911,517Total

$
17,796,511



9.81
%    *
    
    Average of month-end Values at Risk 19




---



##### Table of Contents



June 30,
    2008
    (Unaudited)
  Three Months Ended June 30, 2008Value


% of Total


High Value


Low Value


Average ValueMarket Sector

at Risk


Capital


at Risk


at Risk


at Risk*Currencies:Exchange Traded Contracts

$
8,004,034



2.67
%

$
8,004,034


$
1,195,400


$
4,981,921Energy


5,957,250



1.98
%


15,933,000



4,343,750



8,623,000Grains


5,470,800



1.82
%


5,470,800



417,000



3,107,960Interest Rates U.S.


523,674



0.17
%


3,496,800



423,000



1,527,491Interest Rates Non-U.S.


3,576,411



1.19
%


8,375,150



806,274



5,844,469Livestock


225,600



0.08
%


225,600



111,200



149,333Metals:Exchange Traded Contracts


1,833,000



0.61
%


4,950,750



916,500



2,742,333Softs


1,945,800



0.65
%


2,071,100



535,800



1,501,133Total

$
27,536,569



9.17
%       June 30,
    2008
    (Unaudited)
  Three Months Ended June 30, 2008Value


% of Total


High Value


Low Value


Average ValueMarket Sector

at Risk


Capital


at Risk


at Risk


at Risk*Currencies:OTC Contracts

$
19,837,251



8.84
%

$
31,973,478


$
18,266,120


$
23,671,018Energy


1,857,150



0.83
%


3,930,500



835,225



2,163,498Grains


1,210,500



0.54
%


1,281,500



203,200



547,016Interest Rates U.S.


290,550



0.13
%


638,450



31,860



274,967Interest Rates Non-U.S.


1,544,641



0.69
%


3,159,901



546,990



1,836,321Metals:Exchange Traded Contracts


64,000



0.03
%


490,757



8,000



224,419OTC Contracts


776,696



0.34
%


884,348



151,086



626,188Softs


551,391



0.25
%


609,596



37,571



440,683Indices


3,950,381



1.76
%


4,517,707



631,538



3,473,498Total

$
30,082,560



13.41
%    *
    
    Average of month-end Values at Risk 20




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##### Table of Contents



June 30,
    2008
    (Unaudited)
  Three Months Ended June 30, 2008% of Total


High Value


Low Value


Average ValueMarket Sector

Value at Risk


Capitalization


at Risk


at Risk


at Risk*Currencies:OTC Contracts

$
528,377



2.01
%

$
623,736


$
98,499


$
418,598Energy


539,750



2.06
%


859,000



330,250



673,750Grains


131,500



0.50
%


131,500



49,000



103,933Interest Rates U.S.


19,800



0.08
%


207,700



9,000



79,167Interest Rates Non-U.S.


26,782



0.10
%


358,624



26,782



147,449Metals:Exchange Traded Contracts


84,500



0.32
%


110,750



21,250



76,500OTC Contracts


263,905



1.01
%


263,905



87,533



203,531Softs


138,735



0.53
%


138,762



6,446



73,510Indices


55,000



0.21
%


149,749



18,654



74,468Total

$
1,788,349



6.82
%    *
    
    Average of month-end Values at Risk 21




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##### Table of Contents



Item 4.
    Controls
    and Procedures      Rule 13a-15(e) 15d-115(e)
  internal control over financial
    reporting
  
    pertain to the maintenance of records that in reasonable detail
    accurately and fairly reflect the transactions and dispositions
    of the assets of the Partnership;
    provide reasonable assurance that (i) transactions are
    recorded as necessary to permit preparation of financial
    statements in accordance with U.S. generally accepted
    accounting principles, and (ii) the Partnerships
    receipts are handled and expenditures are made only pursuant to
    authorizations of the General Partner; and
    provide reasonable assurance regarding prevention or timely
    detection of unauthorized acquisition, use or disposition of the
    Partnerships assets that could have a material effect on
    the financial statements.   22




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##### Table of Contents



PART II.  OTHER
    INFORMATION  Item 1.
    Legal
    Proceedings  Form 10-K Form 10-Q
  Enron
  Ahlich v. Arthur Andersen, L.L.P. Delgado v. Fastow Pearson v. Fastow Rosen v. Fastow Bullock v. Arthur Andersen, L.L.P. Choucroun v. Arthur Andersen, L.L.P. Guy v. Arthur Andersen, L.L.P. Adams v. Arthur Andersen, L.L.P. Jose v. Arthur Andersen, L.L.P. Odam, et al., v. Enron Corp., et al
      IPO Civil
    Litigation
    Subprime
    Mortgage-Related Litigation
  In Re
    Citigroup Inc. Shareholder Derivative Litigation
  In Re American Home
    Mortgage Securities Litigation
  In Re Countrywide
    Financial Corp. Securities Litigation
  Other
    Matters
    Auction
    Rate Securities
  In Re Citigroup Auction Rate securities
    Litigation
 23




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##### Table of Contents



and/or
  Ferguson Family Trust v. Falcon
  Strategies Two LLC, et
    al.
  In re MAT Five Securities
    Litigation
  Item 1A.
    Risk
    Factors.  Form 10-K Form 10-Q
    Item 2.
    Unregistered
    Sales of Equity Securities and Use of Proceeds.      (d) Maximum Number(or Approximate(c) Total Number of



Dollar Value) ofUnits



Units(a) Total



(b) Average Price



Purchased as Part



that May Yet BeNumber of



Paid per



of Publicly Announced



Purchased Under thePeriod


Units Purchased*



Unit**



Plans or Programs



Plans or ProgramsApril 1, 2008   April 30, 2008



318.1419



$
1,842.81




N/A




N/AMay 1, 2008   May 31, 2008



288.8611



$
1,908.97




N/A




N/AJune 1, 2008   June 30, 2008



291.1066



$
2,002.30




N/A




N/A898.1096



$
1,915.79  24




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##### Table of Contents



*
    
    Generally, Limited Partners are permitted to redeem their
    Redeemable Units as of the end of each month on
    10 days notice to the General Partner. Under certain
    circumstances, the General Partner can compel redemption but, to
    date, the General Partner has not exercised this right.
    Purchases of Redeemable Units by the Partnership reflected in
    the chart above were made in the ordinary course of the
    Partnerships business in connection with effecting
    redemptions for Limited Partners.**
    
    Redemptions of Redeemable Units are effected as of the last day
    of each month at the Net Asset Value per Redeemable Unit as of
    that day.  Item 3.
    Defaults
    Upon Senior Securities  None   Item 4.
    Submission
    of Matters to a Vote of Security Holders 
    None   Item 5.
    Other
    Information  None   Item 6.
    Exhibits  Regulation S-K Form 10-K
    Rule 13a-14(a)/15d-14(a)
  Rule 13a-14(a)/15d-14(a)
     25




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##### Table of Contents



SIGNATURES
    SMITH BARNEY DIVERSIFIED FUTURES FUND L.P.
  By:
    Citigroup Managed
    Futures LLC    By:
    /s/  Jerry
    Pascucci       By:
    /s/  Jennifer
    Magro      26