FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

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

                     OF THE SECURITIES EXCHANGE ACT OF 1934

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

                     OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarter ended June 30, 2001
                      -------------

Commission File Number 0-26132
                       -------

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

      New York                                13-3729162
-------------------------------------------------------------------------------
(State or other jurisdiction of            (I.R.S. Employer
 incorporation or organization)            Identification No.)


                     c/o Smith Barney Futures Management LLC
                           388 Greenwich St. - 7th Fl.
                            New York, New York 10013
--------------------------------------------------------------------------------
              (Address and Zip Code of principal executive offices)


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


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

<PAGE>


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

                                                                Page
                                                                Number

PART I - Financial Information:

Item 1.     Financial Statements:

            Statement of Financial Condition
            at June 30, 2001 and December 31,
            2000 (unaudited).                                     3

            Statement of Income and Expenses
            and Partners' Capital for the three
            and six months ended June 30, 2001
            and 2000 (unaudited).                                 4

            Notes to Financial Statements
            unaudited)                                          5 - 9

Item 2.     Management's Discussion and
            Analysis of Financial Condition
            and Results of Operations                          10 - 11

Item 3.     Quantitative and Qualitative
            Disclosures of Market Risk                         12 - 13

PART II - Other Information                                      14


                                       2
<PAGE>
                                     PART I
                          ITEM 1. FINANCIAL STATEMENTS

                   SMITH BARNEY DIVERSIFIED FUTURES FUND L.P.
                        STATEMENT OF FINANCIAL CONDITION
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                       JUNE 30,      CEMBER 31,
                                                         2001           2000
                                                     -----------     ----------
<S>                                                      <C>             <C>
ASSETS:

Equity in commodity futures trading account:
  Cash                                                $68,884,259    $78,497,039
  Net unrealized appreciation
   on open futures positions                            2,155,672      4,215,703
                                                      -----------    -----------

                                                       71,039,931     82,712,742
Interest receivable                                       154,527        312,122
                                                      -----------    -----------

                                                      $71,194,458    $83,024,864
                                                      ===========    ===========


LIABILITIES AND PARTNERS' CAPITAL:

Liabilities:
 Accrued expenses:
  Commissions                                         $   310,561    $   376,655
  Management fees                                         158,177        159,510
  Incentive fees                                             --          290,312
  Other                                                    54,908         75,740
 Redemptions payable                                    1,000,507      1,623,598
                                                      -----------    -----------

                                                        1,524,153      2,525,815
                                                      -----------    -----------


Partners' Capital:

General Partner, 2,048.9308 Unit
   equivalents outstanding in 2001 and 2000             2,351,169      2,487,300
Limited Partners, 58,665.6375 and
  64,262.8850 Units of Limited Partnership
  Interest outstanding in 2001 and 2000,
  respectively                                         67,319,136     78,011,749
                                                      -----------    -----------

                                                       69,670,305     80,499,049
                                                      -----------    -----------

                                                      $71,194,458    $83,024,864
                                                      ===========    ===========
</TABLE>


See Notes to Financial Statements.
                                        3




<PAGE>
                   SMITH BARNEY DIVERSIFIED FUTURES FUND L.P.
             STATEMENT OF INCOME AND EXPENSES AND PARTNERS' CAPITAL
                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                                                     THREE MONTHS ENDED               SIX MONTHS ENDED
                                                                          JUNE 30,                        JUNE 30,
                                                           --------------------------------    --------------------------------
                                                                  2001                2000          2001               2000
                                                           ----------------   -------------    --------------   ----------------
<S>                                                                 <C>              <C>             <C>             <C>
Income:
  Net gains (losses) on trading of commodity
   interests:
  Realized gains (losses) on closed positions                $  (2,469,504)   $    (103,580)   $     406,663    $   2,502,715
  Change in unrealized losses on open
   positions                                                    (2,326,211)      (2,645,550)      (2,060,031)      (4,525,899)
                                                             -------------    -------------    -------------    -------------

                                                                (4,795,715)      (2,749,130)      (1,653,368)      (2,023,184)
Less, brokerage commissions including clearing fees
  of $86,445, $64,234, $151,890 and $132,653, respectively      (1,156,825)      (1,500,055)      (2,351,184)      (3,246,644)
                                                             -------------    -------------    -------------    -------------


  Net realized and unrealized losses                            (5,952,540)      (4,249,185)      (4,004,552)      (5,269,828)
  Interest income                                                  529,023        1,064,213        1,298,497        2,242,565
                                                             -------------    -------------    -------------    -------------

                                                                (5,423,517)      (3,184,972)      (2,706,055)      (3,027,263)

                                                             -------------    -------------    -------------    -------------


Expenses:
  Management fees                                                  495,151          831,408        1,070,191        1,768,132
  Other expenses                                                    30,879           20,018           60,510           49,367
  Incentive fees                                                  (459,929)            --            376,871             --
                                                             -------------    -------------    -------------    -------------


                                                                    66,101          851,426        1,507,572        1,817,499

                                                             -------------    -------------    -------------    -------------


  Net loss                                                      (5,489,618)      (4,036,398)      (4,213,627)      (4,844,762)

  Additions                                                          6,526           13,814           12,847           38,207
  Redemptions                                                   (3,406,681)      (6,323,490)      (6,627,964)     (16,764,540)
                                                             -------------    -------------    -------------    -------------


  Net decrease in Partners' capital                             (8,889,773)     (10,346,074)     (10,828,744)     (21,571,095)

Partners' capital, beginning of period                          78,560,078      106,283,511       80,499,049      117,508,532
                                                             -------------    -------------    -------------    -------------


Partners' capital, end of period                             $  69,670,305    $  95,937,437    $  69,670,305    $  95,937,437
                                                             =============    =============    =============    =============


Net asset value per Unit
  (60,714.5683 and 77,194.6054 Units outstanding
  at June 30, 2001 and 2000, respectively)                   $    1,147.51    $    1,242.80    $    1,147.51    $    1,242.80
                                                             =============    =============    =============    -------------



Net loss per Unit of Limited Partnership
  Interest and General Partner Unit equivalent               $      (87.04)   $      (49.32)   $      (66.44)   $      (60.29)
                                                             =============    =============    =============    =============

</TABLE>


See Notes to Financial Statements
                                        4






<PAGE>


                   Smith Barney Diversified Futures Fund L.P.
                          Notes to Financial Statements
                                  June 30, 2001
                                   (Unaudited)

1.     General:

     Smith Barney Diversified Futures Fund L.P. (the "Partnership") is a limited
partnership  organized  under the laws of the State of New York,  on August  13,
1993  to  engage  in the  speculative  trading  of a  diversified  portfolio  of
commodity interests including futures contracts,  options and forward contracts.
The  commodity  interests  that are traded by the  Partnership  are volatile and
involve  a high  degree  of  market  risk.  The  Partnership  commenced  trading
operations on January 12, 1994.

     Smith  Barney  Futures  Management  LLC acts as the  general  partner  (the
"General  Partner") of the Partnership.  The  Partnership's  commodity broker is
Salomon Smith Barney Inc.  ("SSB").  SSB is an affiliate of the General Partner.
The  General  Partner is wholly  owned by Salomon  Smith  Barney  Holdings  Inc.
("SSBHI"), which is the sole owner of SSB. SSBHI is a wholly owned subsidiary of
Citigroup  Inc.  As of June 30,  2001,  all trading  decisions  are made for the
Partnership  by  Campbell  &  Company,  Inc.,  Willowbridge  Associates,   Inc.,
Stonebrook Capital Management,  Inc., Winton Capital Management,  Graham Capital
Management  L.P.  and  Dominion  Capital  Management,   Inc.  (collectively  the
"Advisors").

     The accompanying  financial statements are unaudited but, in the opinion of
management,  include  all  adjustments,  consisting  only  of  normal  recurring
adjustments,  necessary for a fair presentation of the  Partnership's  financial
condition  at June 30,  2001  and  December  31,  2000  and the  results  of its
operations  for the three and six  months  ended June 30,  2001 and 2000.  These
financial  statements  present the results of interim periods and do not include
all disclosures  normally  provided in annual financial  statements.  You should
read these financial statements together with the financial statements and notes
included  in the  Partnership's  annual  report  on Form  10-K  filed  with  the
Securities and Exchange Commission for the year ended December 31, 2000.

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


                                       5
<PAGE>


                   Smith Barney Diversified Futures Fund L.P.
                          Notes to Financial Statements
                                   (continued)

2.       Financial Highlights:

         Changes in net asset value per Unit for the three and six months ended
June 30, 2001 and 2000 were as follows:

<TABLE>
<CAPTION>
                                             THREE-MONTHS ENDED         SIX-MONTHS ENDED
                                                 JUNE 30,                     JUNE   30,
                                         ------------------------     ---------------------
                                             2001           2000        2001         2000
                                         -------------  ----------     --------   ----------
 <S>                                          <C>           <C>            <C>       <C>
Net realized and unrealized
  losses                             $     (94.34) $     (51.96) $     (63.37) $     (65.39)
Interest income                              8.43         13.19         20.16         26.65
Expenses                                    (1.13)       (10.55)       (23.23)       (21.55)
                                         ---------     ---------     ---------     ---------

Decrease for period                        (87.04)       (49.32)       (66.44)       (60.29)

Net Asset Value per Unit,
 beginning of period                     1,234.55      1,292.12      1,213.95      1,303.09
                                         ---------     ---------     ---------     ---------

Net Asset Value per Unit
 end of period                       $   1,147.51  $   1,242.80  $   1,147.51  $   1,242.80
                                        =========     =========     =========     =========
</TABLE>

Total Return                                (7.1)%                     (5.5)%

Ratio of expenses, including
 brokerage commissions, to average
 net assets            *                     6.7%                      10.3%

Ratio of net loss to average
 net assets            *                   (30.0)%                    (11.3)%

*  Annualized

                                       6
<PAGE>





                   Smith Barney Diversified Futures Fund L.P.
                          Notes to Financial Statements
                                  June 30, 2001
                                   (Unaudited)
                                   (Continued)


3.  Trading Activities:

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

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

     All of the  commodity  interests  owned  by the  Partnership  are  held for
trading purposes.  The average fair value during the six and twelve months ended
June  30,  2001  and  December  31,  2000,  respectively,  based  on  a  monthly
calculation,  were  $2,669,439 and $3,287,910,  respectively.  The fair value of
these commodity interests, including options thereon, if applicable, at June 30,
2001 and December 31, 2000,  was  $2,155,672 and  $4,215,703,  respectively,  as
detailed below.


                                        Fair Value
                                ----------------------------
                                June 30,        December 31,
                                  2001             2000
                              -----------     ------------
Currency:
- Exchange Traded              $  176,163    $ 2,468,848
- OTC Contracts                   286,479        (30,488)
Energy                          1,126,390        249,658
Grains                            211,898         70,445
Interest Rates U.S.              (161,753)       836,897
Interest Rates Non-U.S            198,713        405,108
Livestock                          89,528         42,390
Metals:
- Exchange Traded Contracts        15,937          7,210
- OTC Contracts                    70,500        (12,525)
Softs                             147,340         45,386
Indices                            (7,206)       132,774
Lumber                              1,683           --
                              -----------    -----------
Total                         $ 2,155,672    $ 4,215,703
                              ===========    ===========





                                       7
<PAGE>

                   Smith Barney Diversified Futures Fund L.P.
                          Notes to Financial Statements
                                  June 30, 2001
                                   (Unaudited)
                                   (Continued)

4.       Financial Instrument Risk:

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

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

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


                                       8
<PAGE>

                   Smith Barney Diversified Futures Fund L.P.
                          Notes to Financial Statements
                                  June 30, 2001
                                   (Unaudited)
                                   (Continued)

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

     The  notional  or  contractual  amounts  of these  instruments,  while  not
recorded in the financial  statements,  reflect the extent of the  Partnership's
involvement  in these  instruments.  The  majority of these  instruments  mature
within  one  year  of  June  30,  2001.  However,  due  to  the  nature  of  the
Partnership's business, these instruments may not be held to maturity.


                                       9
<PAGE>


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

Liquidity and Capital Resources

     The Partnership does not engage in the sale of goods or services.  Its only
assets are its equity in its commodity  futures trading  account,  consisting of
cash, net  unrealized  appreciation  (depreciation)  on open futures and forward
contracts,  commodity options and interest receivable. Because of the low margin
deposits normally required in commodity futures trading,  relatively small price
movements may result in substantial losses to the Partnership. While substantial
losses could lead to a decrease in liquidity, no such losses occurred during the
second quarter of 2001.

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

     For the six months ended June 30, 2001, Partnership capital decreased 13.5%
from  $80,499,049  to  $69,670,305.   This  decrease  was  attributable  to  the
redemption of 5,608.0534  Units totaling  $6,627,964  coupled with net loss from
operations of  $4,213,627  which was  partially  offset by  additional  sales of
10.8059 Units totaling $12,847.  Persons investing $1,000,000 or more will pay a
reduced  brokerage  fee,  receiving the  differential  in the form of additional
Units.  Future  redemptions  can  impact  the  amount  of  funds  available  for
investments in commodity contract positions in subsequent periods.

Results of Operations

     During the  Partnership's  second  quarter of 2001, the net asset value per
unit  decreased  7.1% from  $1,234.55  to $1,147.51 as compared to a decrease of
3.8% in the second  quarter of 2000. The  Partnership  experienced a net trading
loss before brokerage commissions and related fees in the second quarter of 2001
of $4,795,715.  Losses were primarily  attributable  to the trading of commodity
contracts in currencies,  softs, metals,  livestock,  U.S. and non-U.S. interest
rates and indices and were partially  offset by gains in energy and grains.  The
Partnership  experienced  a net trading loss before  brokerage  commissions  and
related fees in the second quarter of 2000 of $2,749,130.  Losses were primarily
attributable to the trading of commodity futures in indices, currencies, grains,
livestock, metals, U.S. and non-U.S. interest rates and were partially offset by
gains in energy and softs.

     Commodity futures markets are highly volatile. Broad price fluctuations and
rapid  inflation  increase  the risks  involved in commodity  trading,  but also



                                       10
<PAGE>

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

     Interest income on 80% of the Partnership's daily equity maintained in cash
was earned on the monthly  average  30-day U.S.  Treasury  bill rate  determined
weekly by SSB based on the  non-competitive  yield on three month U.S.  Treasury
bills  maturing 30 days from the date in which such  weekly rate is  determined.
Interest  income for the three and six months  ended June 30, 2001  decreased by
$535,190 and $944,068, respectively, as compared to the corresponding periods in
2000. The decrease in interest income is primarily due to a decrease in interest
rates and the effect of redemptions on the  Partnership's  equity  maintained in
cash during the three and six months ended June 30, 2001 as compared to 2000.

     Brokerage  commissions are calculated on the  Partnership's net asset value
as of the last day of each  month  and,  therefore,  vary  according  to trading
performance and redemptions.  Accordingly,  they must be compared in relation to
the fluctuations in monthly net asset values. Commissions and fees for the three
and six months  ended June 30, 2001  decreased  by  $343,230  and  $895,460,  as
compared to the corresponding periods in 2000.

     Management  fees are  calculated  on the portion of the  Partnership's  net
asset value  allocated to each  Advisor at the end of the month and,  therefore,
are affected by trading  performance  and  redemptions.  Management fees for the
three and six months ended June 30, 2001  decreased  by $336,257  and  $697,941,
respectively, as compared to the corresponding periods in 2000.

     Incentive  fees are  based on the new  trading  profits  generated  by each
Advisor at the end of the quarter, as defined in the advisory agreements between
the Partnership,  the General Partner and each Advisor.  Trading performance for
the three and six months  ended June 30, 2001  resulted in an  incentive  fee of
$(459,929) and $376,871,  respectively.  There were no incentive fees earned for
the three and six months ending June 30, 2000.

                                       11
<PAGE>


Item 3. Quantitative and Qualitative Disclosures of Market Risk

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

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

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

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

     Exchange  maintenance margin requirements have been used by the Partnership
as the measure of its Value at Risk.  Maintenance margin requirements are set by
exchanges  to equal or exceed  the  maximum  losses  reasonably  expected  to be
incurred  in the fair value of any given  contract  in  95%-99%  of any  one-day
intervals.  Maintenance  margin  has been used  rather  than the more  generally
available  initial  margin,  because  initial  margin  includes  a  credit  risk
component, which is not relevant to Value at Risk.

                                       12
<PAGE>


     The following table indicates the trading Value at Risk associated with the
Partnership's  open  positions by market  category as of June 30, 2001. All open
position  trading  risk  exposures  of the  Partnership  have been  included  in
calculating the figures set forth below. As of June 30, 2001, the  Partnership's
total capitalization was approximately  $69,670,305.  There has been no material
change in the trading Value at Risk information previously disclosed in the Form
10-K for the year ended December 31, 2000.

                                  June 30, 2001
                                   (Unaudited)
<TABLE>
<CAPTION>
<S>                                <C>           <C>         <C>           <C>
                                                                Year to Date
                                               % of Total     High       Low
Market Sector               Value at Risk   Capitalization    Value at Risk
--------------------------------------------------------------------------------
Currencies:
 - Exchange Traded Contracts   $  798,278       1.15%    $2,016,783   $  798,278
 - OTC Contracts                1,232,739       1.78%     1,828,788       53,800
Energy                          1,372,750       1.97%     1,372,750      247,200
Grains                            348,096       0.50%       683,174        9,200
Interest Rates U.S.               292,800       0.42%     1,006,131      292,800
Interest Rates Non-U.S          1,546,328       2.22%     1,546,328      946,099
Livestock                         224,020       0.32%       243,220        3,600
Metals:
 - Exchange Traded Contracts      280,700       0.40%       426,200       63,000
 - OTC Contracts                  354,400       0.50%       452,825       24,450
Softs                             370,860       0.53%       438,420       28,700
Indices                         1,268,622       1.82%     2,253,832      611,865
Lumber                              1,300         - %        17,600          950
                               ----------   ----------
Total                          $8,090,893      11.61%
                               ==========   ==========
</TABLE>


                                       13
<PAGE>


                            PART II OTHER INFORMATION

Item 1.  Legal Proceedings - None

Item 2.   Changes in Securities and Use of Proceeds -

          Additional Units offered represent a reduced brokerage fee to existing
          limited  partners who invest  $1,000,000  or more.  For the six months
          ended June 30,  2001,  there were  additional  sales of 10.8059  Units
          totaling  $12,847.  For the six months ended June 30, 2000, there were
          additional sales of 29.4128 Units totaling $38,207.

          Proceeds from the sale of additional  Units are used in the trading of
          commodity interest  including futures  contracts,  options and forward
          contracts.

Item 3.   Defaults Upon Senior Securities - None

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

Item 5.   Other Information - None

Item 6.   (a) Exhibits - None

          (b) Reports on Form 8-K - None

                                       14
<PAGE>


                                   SIGNATURES
           Pursuant to the requirements of Section 13 or 15 (d) of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.

SMITH BARNEY DIVERSIFIED FUTURES FUND L.P.


By:        Smith Barney Futures Management LLC
           (General Partner)


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

Date:      8/13/01
           --------


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

By:        Smith Barney Futures Management LLC
           (General Partner)


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


Date:      8/13/01
           --------


By:       /s/ Daniel R. McAuliffe, Jr.
          -------------------------------------
          Daniel R. McAuliffe, Jr.
          Chief Financial Officer and
          Director

Date: 8/13/01

                                       15