UNITED STATES
 SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
  FORM 10-Q
  (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR
    15(d)
 OF THE SECURITIES EXCHANGE ACT OF 1934
  For the Quarterly Period ended September 30, 2008
  OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR
    15(d)
 OF THE SECURITIES EXCHANGE ACT OF 1934
   
   000-51282
   CITIGROUP
    FAIRFIELD FUTURES FUND L.P. II
    New York

56-2421596(State or other jurisdiction of
    incorporation or organization)

(I.R.S. Employer
    Identification No.)   c/o Citigroup
    Managed Futures LLC
 55 East 59th Street  10th Floor
 New York, New York 10022
    (212) 559-2011
      Yes X    No
  Rule 12b-2
  Large accelerated filer

Accelerated filer

Non-accelerated filer X   rule 12b-2
  Yes     No X




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##### 



CITIGROUP
    FAIRFIELD FUTURES FUND L.P. II
  FORM 10-Q
  INDEX
  PART I - Financial Information:

Page
    NumberItem 1.


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

3Statements of Income and Expenses
    and Partners Capital for the three and nine months ended
    September 30, 2008 and 2007 (unaudited)

4Notes to Financial Statements,
    including the Financial Statements
    of CMF Graham Master Fund L.P. (unaudited)

5  14Item 2.


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

15  18Item 3.


Quantitative and Qualitative
    Disclosures about Market Risk

19Item 4T.


Controls and Procedures

20PART II - Other Information

21  24  2




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##### 



PART I Item 1.  Financial
    Statements
    Citigroup Fairfield Futures Fund L.P. II
    Statements of Financial Condition
    (Unaudited)  September 30,


December 31,2008


2007Assets:Investment in Master, at fair value

$
61,928,115


$
69,459,132Cash


208,378



165,627Distribution receivable


44,261



136,665Total assets

$
62,180,754


$
69,761,424Liabilities and Partners Capital:Liabilities:Accrued expenses:Brokerage commissions

$
233,178


$
261,605Management fees


103,039



115,696Administrative fees


25,760



28,924Other


124,066



82,074Redemptions payable


3,145,550



1,316,737Total liabilities


3,631,593



1,805,036Partners Capital:General Partner, 1,250.2679 and 724.0407 Unit equivalents outstanding in 2008
    and 2007, respectively


1,187,129



636,359Special Limited Partner, 614.6964 and 100.0000 Redeemable Units
    of Limited Partnership Interest outstanding in 2008 and 2007,
    respectively


583,654



87,890Limited Partners, 59,798.4495 and 76,495.9137 Redeemable Units
    of Limited Partnership Interest outstanding in 2008 and 2007,
    respectively


56,778,378



67,232,139Total partners capital


58,549,161



67,956,388Total liabilities and partners capital

$
62,180,754


$
69,761,424    3




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##### 



Citigroup Fairfield Futures Fund L.P. IIStatements of Income and Expenses and Partners Capital(Unaudited)
  Three Months Ended


Nine Months EndedSeptember 30,


September 30,2008


2007


2008


2007Income:Net realized gains (losses) on closed positions allocated from Master

$
1,196,824


$
(1,830,805
)

$
11,582,700


$
6,814,586Change in net unrealized gains (losses) on open positions allocated from Master


(3,891,584
)


550,383



(2,241,817
)


176,971Interest income allocated from Master


187,302



623,822



670,006



1,793,704Expenses allocated from Master


(77,861
)


(75,006
)


(282,623
)


(206,615
)Total income (loss)


(2,585,319
)


(731,606
)


9,728,266



8,578,646Expenses:Brokerage commissions


707,884



799,244



2,279,496



2,200,449Management fees


312,843



353,544



1,007,481



972,676Administrative fees


78,212



88,386



251,872



243,168Other


50,065



49,181



146,054



145,499Total expenses


1,149,004



1,290,355



3,684,903



3,561,792Net income (loss) before allocation to Special Limited Partner


(3,734,323
)


(2,021,961
)


6,043,363



5,016,854Allocation to Special Limited Partner










(517,496
)


Net income (loss) after allocation to Special Limited Partner


(3,734,323
)


(2,021,961
)


5,525,867



5,016,854Additions  Limited Partners


1,145,000



8,504,000



4,079,000



14,195,000Additions  General Partner


500,000







500,000



Additions  Special Limited Partner










517,496



Redemptions  Limited Partners


(5,573,095
)


(1,150,674
)


(20,029,590
)


(8,728,809
)Net increase (decrease) in Partners Capital


(7,662,418
)


5,331,365



(9,407,227
)


10,483,045Partners Capital, beginning of period


66,211,579



66,683,121



67,956,388



61,531,441Partners Capital, end of period

$
58,549,161


$
72,014,486


$
58,549,161


$
72,014,486Net asset Value per Unit
(61,663.4138 and
 83,782.1510 Units outstanding at September 30, 2008
and 2007, respectively)

$
949.50


$
859.54


$
949.50


$
859.54Net income (loss) per Redeemable Unit of Limited 
Partnership Interest and General Partner Unit
 equivalent

$
(55.94
)

$
(24.88
)

$
70.60


$
66.02    4




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##### 



Citigroup
    Fairfield Futures Fund L.P. IINotes to Financial Statements
    September 30, 2008
    (Unaudited)
  1.
    General:            Form 10-K
      5




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##### 



Citigroup
    Fairfield Futures Fund L.P. II
    Notes to Financial Statements
    September 30, 2008
    (Unaudited)
     CMF
    Graham Capital Master Fund L.P.
    Statement of Financial Condition
    (Unaudited)
  September 30,


December 31,2008


2007Assets:Equity in commodity futures trading account:Cash

$
190,959,244


$
191,110,075Cash margin


21,816,249



24,672,137Net unrealized appreciation on open futures contracts


992,782



278,888Unrealized appreciation on open forward contracts


18,525,964



6,792,116232,294,239



222,853,216Interest receivable


146,458



424,676Total assets

$
232,440,697


$
223,277,892Liabilities and Partners Capital:Liabilities:Unrealized depreciation on open forward contracts

$
27,355,146


$
7,439,350Accrued expenses:Professional fees


23,786



24,122Distribution payable


146,458



424,676Redemptions payable






1,795,357Total liabilities


27,525,390



9,683,505Partners Capital:Limited Partners Capital, 156,990.7273 and 186,334.8221
    Redeemable Units of Limited Partnership Interest outstanding in
    2008 and 2007, respectively


204,915,307



213,594,387Total liabilities and partners capital

$
232,440,697


$
223,277,892  6




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##### 



Citigroup
    Fairfield Futures Fund L.P. II
    Notes to Financial Statements
    September 30, 2008
    (Unaudited)
   CMF
    Graham Capital Master Fund L.P.
    Schedule of Investments
    September 30, 2008
    (Unaudited)
   % of PartnersFair Value


CapitalFutures Contracts PurchasedCurrencies

$
(9,820
)


(0.01
)%Energy


(157,847
)


(0.08
)Grains


(42,675
)


(0.02
)Indices


92,025



0.05Interest Rates Non U.S.


(224,059
)


(0.11
)Interest Rates U.S


(189,369
)


(0.09
)Softs


(58,225
)


(0.03
)Total futures contracts purchased


(589,970
)


(0.29
)Futures Contracts SoldCurrencies


5,088



0.00
*Energy


67,578



0.03Grains


376,032



0.18Indices


635,245



0.31Interest Rates Non-U.S.


(88,277
)


(0.04
)Livestock


24,546



0.01Metals


(3,773
)


(0.00
)*Softs


566,313



0.28Total futures contracts sold


1,582,752



0.77Net unrealized appreciation on open futures contracts


992,782



0.48Unrealized Appreciation on Open Forward ContractsCurrencies


17,330,085



8.46Metals


1,195,879



0.58Total unrealized appreciation on open forward contracts


18,525,964



9.04Unrealized Depreciation on Open Forward ContractsCurrencies


(26,650,865
)


(13.00
)Metals


(704,281
)


(0.34
)Total unrealized depreciation on open forward contracts


(27,355,146
)


(13.34
)Total fair value

$
(7,836,400
)


(3.82
)%    *
    
    Due to rounding. 7




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##### 



Citigroup
    Fairfield Futures Fund L.P. II
    Notes to Financial Statements
    September 30, 2008
    (Unaudited)
   CMF
    Graham Capital Master Fund L.P.
    Schedule of Investments
    December 31, 2007
    (Unaudited)
  % of PartnersFair Value


CapitalFutures Contracts PurchasedEnergy

$
184,162



0.09
%Grains


219,977



0.10Indices


8,906



0.00
*Interest Rates U.S


(2,712
)


(0.00
)*Interest Rates Non-U.S


98,371



0.05Metals


68,690



0.03Softs


(18,009
)


(0.01
)Total futures contracts purchased


559,385



0.26Futures Contracts SoldEnergy


(76,360
)


(0.04
)Indices


31,940



0.02Interest Rates U.S


(67,681
)


(0.03
)Interest Rates Non-U.S


(163,383
)


(0.08
)Livestock


11,482



0.01Softs


(16,495
)


(0.01
)Total futures contracts sold


(280,497
)


(0.13
)Net
unrealized appreciation on open futures contracts


278,888



0.13Unrealized Appreciation on Open Forward ContractsCurrencies


6,327,560



2.96Metals


464,556



0.22Total unrealized appreciation on open forward contracts


6,792,116



3.18Unrealized Depreciation on Open Forward ContractsCurrencies


(6,976,160
)


(3.26
)Metals


(463,190
)


(0.22
)Total unrealized depreciation on open forward contracts


(7,439,350
)


(3.48
)Total fair value

$
(368,346
)


(0.17
)%    *
    
    Due to rounding 8




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##### 



Citigroup
    Fairfield Futures Fund L.P. II
    Notes to Financial Statements
    September 30, 2008
    (Unaudited)
   CMF
    Graham Capital Master Fund L.P.
    Statements of Income and Expenses and Partners Capital
    (Unaudited)
  Three Months Ended


Nine Months EndedSeptember 30,


September 30,2008


2007


2008


2007Income:Net gains (losses) on trading of commodity interests:Net realized gains (losses) on closed positions

$
3,975,482


$
(5,538,875
)

$
36,571,783


$
22,938,740Change in net unrealized appreciation (depreciation) on open
    positions


(12,809,411
)


1,402,654



(7,468,054
)


(644,433
)Gain (loss) from trading, net


(8,833,929
)


(4,136,221
)


29,103,729



22,294,307Interest income


617,423



1,947,985



2,132,568



5,946,883Total income (loss)


(8,216,506
)


(2,188,236
)


31,236,297



28,241,190Expenses:Brokerage commissions, including clearing fees of $66,881,
    $64,711, $183,743 and $195,098, respectively


250,384



225,707



880,058



651,936Professional fees


6,591



9,784



23,465



29,824Total expenses


256,975



235,491



903,523



681,760Net income (loss)


(8,473,481
)


(2,423,727
)


30,332,774



27,559,430Additions  Limited Partners


2,162,496



8,504,000



5,096,496



20,404,811Redemptions  Limited Partners


(12,542,154
)


(6,606,544
)


(41,975,782
)


(46,878,249
)Distribution of interest income to feeder funds


(617,423
)


(1,947,985
)


(2,132,568
)


(5,946,883
)Net increase (decrease) in Partners Capital


(19,470,562
)


(2,474,256
)


(8,679,080
)


(4,860,891
)Partners Capital, beginning of period


224,385,869



224,286,881



213,594,387



226,673,516Partners Capital, end of period

$
204,915,307


$
221,812,625


$
204,915,307


$
221,812,625Net Asset Value per Redeemable Unit of Limited Partnership
    Interest (156,990.7273 and 200,136.2088 Redeemable Units
    outstanding at September 30, 2008 and 2007, respectively)

$
1,305.27


$
1,108.31


$
1,305.27


$
1,108.31Net income (loss) per Redeemable Unit of Limited Partnership
    Interest

$
(52.04
)

$
(11.73
)

$
171.49


$
141.39  9




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##### 



Citigroup
    Fairfield Futures Fund L.P. II
    Notes to Financial Statements
    September 30, 2008
    (Unaudited)
  2.
    Financial
    Highlights:    Three Months Ended


Nine Months EndedSeptember 30,


September 30,2008


2007


2008


2007Net realized and unrealized gains (losses) allocated from Master*

$
(52.05
)

$
(26.45
)

$
88.82


$
60.70Interest income allocated from Master


2.84



7.54



9.39



22.50Expenses**


(6.73
)


(5.97
)


(27.61
)


(17.18
)Increase (decrease) for the period


(55.94
)


(24.88
)


70.60



66.02Net Asset Value per Redeemable Unit, beginning of period


1,005.44



884.42



878.90



793.52Net Asset Value per Redeemable Unit, end of period

$
949.50


$
859.54


$
949.50


$
859.54*    Includes Partnership brokerage
    commissions and expenses allocated from Master.**  Excludes Partnership brokerage commissions and
    expenses allocated from Master.Ratios to average net assets:***Three Months Ended


Nine Months EndedSeptember 30,


September 30,2008


2007


2008


2007Net investment income (loss) before allocation to Special
    Limited Partner****


(6.7
)%


(4.3
)%


(6.7
)%


(4.2
)%Operating expenses


7.8
%


7.8
%


8.1
%


7.9
%Allocation to Special Limited Partner



%



%


0.8
%



%Total expenses and allocation to Special Limited Partner


7.8
%


7.8
%


8.9
%


7.9
%Total return:Total return before allocation to Special Limited Partner


(5.6
)%


(2.8
)%


9.0
%


8.3
%Allocation to Special Limited Partner



%




%


(1.0
)%



%Total return after allocation to Special Limited Partner


(5.6
)%


(2.8
)%


8.0
%


8.3
%    ***
    
    Annualized (except for allocation to Special Limited Partner, if
    applicable).****
    
    Interest income allocated from Master less total expenses.   10




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##### 



Citigroup
    Fairfield Futures Fund L.P. II
    Notes to Financial Statements
    September 30, 2008
    (Unaudited)
  2.
    Financial
    Highlights (continued):  Financial
    Highlights of the Master:
  Three Months Ended


Nine Months EndedSeptember 30,


September 30,2008


2007


2008


2007Net realized and unrealized gains (losses)*

$
(55.87
)

$
(21.37
)

$
159.11


$
112.85Interest income


3.87



9.69



12.51



28.69Expenses**


(0.04
)


(0.05
)


(0.13
)


(0.15
)Increase (decrease) for the period


(52.04
)


(11.73
)


171.49



141.39Distribution of interest income to feeder funds


(3.87
)


(9.69
)


(12.51
)


(28.69
)Net Asset Value per Redeemable Unit, beginning of period


1,361.18



1,129.73



1,146.29



995.61Net Asset Value per Redeemable Unit, end of period

$
1,305.27


$
1,108.31


$
1,305.27


$
1,108.31*    Includes brokerage commissions.**  Excludes brokerage commissions.Three Months Ended


Nine Months EndedSeptember 30,


September 30,2008


2007


2008


2007Ratios to average net assets:***Net investment income (loss) ****


0.7
%


3.1
%


0.8
%


3.3
%Operating expenses


0.5
%


0.4
%


0.6
%


0.4
%Total return


(3.8
)%


(1.0
)%


15.0
%


14.2
%    ***
    
    Annualized.****
    
    Interest income less total expenses.    3.
    Trading
    Activities:       11




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##### 



Citigroup
    Fairfield Futures Fund L.P. II
    Notes to Financial Statements
    September 30, 2008
    (Unaudited)
    4.
    Fair
    Value Measurement:  Investments.
  Fair Value Measurements. Fair Value Measurements No. FAS 157-2, Effective Date of FASB Statement No. 157,
    Quoted Prices in





SignificantActive Markets


Significant Other


Unobservablefor Identical


Observable Inputs


Inputs9/30/2008


Assets (Level 1)


(Level 2)


(Level 3)AssetsInvestment in Master

$
61,928,115


$



$
61,928,115


$
Total fair value

$
61,928,115


$



$
61,928,115


$
   Investments.
  Fair Value Measurements.
 12




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##### 



Citigroup
    Fairfield Futures Fund L.P. II
    Notes to Financial Statements
    September 30, 2008
    (Unaudited)
  No. FAS 157-2, Effective Date of FASB Statement No. 157,
    Quoted Prices inActive Markets


Significant Other


Significantfor Identical


Observable Inputs


Unobservable9/30/2008


Assets (Level 1)


(Level 2)


Inputs (Level 3)AssetsForwards

$
18,525,964


$



$
18,525,964


$
Futures


992,782



992,782







Total assets



19,518,746




992,782



18,525,964



LiabilitiesForwards

$
27,355,146


$



$
27,355,146


$
Total liabilities


27,355,146







27,355,146



Total fair value

$
(7,836,400
)

$
992,782


$
(8,829,182
)

$
   5.
    Financial
    Instrument Risks:       13




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##### 



Citigroup
    Fairfield Futures Fund L.P. II
    Notes to Financial Statements
    September 30, 2008
    (Unaudited)
         14




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##### 



Item 2.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations.  Liquidity
    and Capital Resources
        and/or
    Critical
    Accounting Policies
  Use of Estimates.
  Investments.
  Fair Value Measurements.
 15




---



##### 



Income and Expenses Recognition.
  Forward Foreign Currency Contracts. agreed-upon
  Income Taxes.
      Recent Accounting Pronouncements.
  Results
    of Operations
   16




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##### 



30-day 3-month and/or 90-day
 17




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##### 



18




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##### 



Item 3.
    Quantitative
    and Qualitative Disclosures about Market Risk          one-day
  Form 10-K
  September 30,
    2008
    (Unaudited)
  Three Months Ended September 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

$
18,000



0.01
%

$
34,000


$
4,400


$
18,000 OTC Contracts


9,276,313



4.53
%


27,527,348



7,928,147



19,253,186Energy


1,418,960



0.69
%


2,825,275



335,875



1,013,172Grains


657,800



0.32
%


1,045,500



66,550



361,157Interest Rates U.S


320,600



0.16
%


2,381,150



24,412



691,367Interest Rates Non-U.S


1,150,706



0.56
%


3,767,848



461,503



1,814,976Livestock


21,600



0.01
%


21,600



800



10,500Metals: Exchange Traded Contracts


285,250



0.14
%


656,500



92,000



245,197 OTC Contracts


641,670



0.31
%


1,415,425



374,315



536,684Softs


551,663



0.27
%


596,579



293,730



480,354Indices


1,980,731



0.97
%


5,270,747



1,227,969



2,934,659Total

$
16,323,293



7.97
%   *
    
    Average month end Values at Risk. 19




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##### 



Item 4T.
    Controls
    and Procedures      Rule 13a-15(e) 15d-15(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.   20




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##### 



PART II.
    OTHER INFORMATION  Item 1.
    Legal
    Proceedings  Form 10-K Form 10-Q
 Research Analyst Litigation
  Subprime-Mortgage-Related Litigation
    Auction Rate Securities-Related Litigation
        21




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##### 



Item 1A.
    Risk
    Factors  Form 10-K
   22




---



##### 



Item 2.
    Unregistered
    Sales of Equity Securities and Use of Proceeds        (d) Maximum Number(or Approximate(c) Total Number



Dollar Value) of(b) Average



of Redeemable Units



Redeemable Units that(a) Total Number



Price Paid



Purchased as Part



May Yet Beof Redeemable



per Redeemable



of Publicly Announced



Purchased Under thePeriod


Units Purchased*



Unit*



Plans or Programs



Plans or ProgramsJuly 1, 2008 
    July 31, 2008



1,727.2384



$
963.39




N/A




N/AAugust 1, 2008 
    August 31, 2008



818.2399



$
933.15




N/A




N/ASeptember 1, 2008 
    September 30, 2008



3,312.8491



$
949.50




N/A




N/A5,858.3274



$
951.31




N/A




N/A       Item 3.
    Defaults
    Upon Senior Securities  None.  Item 4.
    Submission
    of Matters to a Vote of Security Holders  None.  Item 5.
    Other
    Information  None. 23




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##### 



Item 6.
    Exhibits  Regulation S-K Form 10-K
  Rule 13a-14(a)/15d-14(a)
  Rule 13a-14(a)/15d-14(a)
     24




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##### 



SIGNATURES
    CITIGROUP
    FAIRFIELD FUTURES FUND L.P. II
  By:

Citigroup Managed Futures LLC(General Partner)By:

/s/ Jerry PascucciJerry Pascucci
    President and Director   November 14, 2008
  By:

/s/ Jennifer MagroJennifer Magro
    Chief Financial Officer and Director   November 14, 2008