Morgan Stanley Managed Futures
BHM I, LLC

Interim Financial Statements
For the Six Months Ended
June 30, 2009 and 2008
(Unaudited)























THE ENCLOSED TRADING COMPANY FINANCIAL STATEMENTS AND
FOOTNOTE DISCLOSURE ARE PRESENTED PURSUANT TO REGULATION S-X.






<page> <table>
Morgan Stanley Managed Futures BHM I, LLC
Statements of Financial Condition (Unaudited)
<caption>


	  June 30,	        December 31,
                            2009      	         2008
	  $	        $

ASSETS

	<c>	<c>

Trading Equity:
    Unrestricted cash	124,364,891	113,591,970
    Restricted cash	    12,544,700	        9,838,695

          Total cash	  136,909,591	   123,430,665

   Net unrealized gain (loss) on open contracts (MS&Co.)	         (376,629)	       5,529,200
   Net unrealized gain (loss) on open contracts (MSIP)	          (1,642,760)	             1,855,890

         Total net unrealized gain (loss) on open contracts	        (2,019,389)	       7,385,090

   Options purchased (premiums paid $7,867,963
        and $2,002,078, respectively)	     9,182,159	         2,622,329

	    Total Trading Equity	144,072,361	133,438,084

Expense reimbursements	            34,735	            20,402
Interest receivable (MS&Co.)	                 687	            39,255

	    Total Assets	    144,107,783	    133,497,741

LIABILITIES AND MEMBERS? CAPITAL

LIABILITIES
Withdrawals payable 	8,758,638     	19,671,490
Options written (premiums received $5,272,074
    and $1,299,709, respectively)				    	  5,878,022		  2,450,282
Accrued incentive fee	159,018	?
Accrued management fees	54,828	39,656
Accrued administrative fees 	            9,596	             6,940

	     Total Liabilities	    14,860,102	   22,168,368

MEMBERS? CAPITAL
Non-Managing Members	  129,247,681	  111,329,373

	Total Members? Capital	  129,247,681	  111,329,373

	Total Liabilities and Members? Capital	     144,107,783	  133,497,741


<fn>
The accompanying notes are an integral part of these financial statements.
</table>
<page> <table>
Morgan Stanley Managed Futures  BHM I, LLC
Statements of Operations (Unaudited)
<caption>

                                  For the Three Months                    For the Six Months
                                 Ended June 30,                          Ended June 30,

                                      2009                    2008                  2009                 2008
                                          $  	        $   	       $	      $

	<c>	<c>		<c> 	<c>
INVESTMENT INCOME
	Interest income (MS&Co.)             2,346	      60,546	            24,627    	        110,772

EXPENSES
	Incentive fees	                   159,018          	      425,287         159,018      	       650,367
	Management fees                                        150,660              89,971         280,090       	       142,302
Brokerage, clearing and transaction fees	          128,737                  94,326        244,078               142,747
	Administrative fees                 26366                  15,745            49,016                 24,904

         Total Expenses                                          464,781              625,329         732,202              960,320

    Expenses reimbursements                                  (99,731)	                (81,700)      (192,271)            (125,897)

        Net Expenses      	            365,050	                543,629          539,931              834,423

NET INVESTMENT LOSS                                    (362,704)	              (483,083)       (515,304)            (723,651)

TRADING RESULTS
Trading profit (loss):
	Realized	        15,317,057	             9,976,901      26,729,837        20,212,187
	Net change in unrealized                               (4,082,506)	            5,916,260      (8,165,909)        11,834,184

        Total Trading Results                                 11,234,551	          15,893,161      18,563,928         32,046,371

NET INCOME                                                     10,871,847       	   15,410,078      18,048,624         31,322,720


NET INCOME ALLOCATION
Non-Managing Members	                                   10,871,847          15,410,078      18,048,624         31,322,720







<fn>





The accompanying notes are an integral part of these financial statements.

</table>
<page> <table>
Morgan Stanley Managed Futures BHM I, LLC
Statements of Changes in Members? Capital
For the Six Months Ended June 30, 2009 and 2008 (Unaudited)
<caption>




	        Managing	      Non-Managing
	       Member       	       Members    	     Total
                                 $                                  $                            $

	<c>	<c>	<c>
Members? Capital,
	December 31, 2007	        ?	6,230,964	    6,230,964

Capital Contributions                                               ?    		111,476,430		111,476,430

Net Income	                                                              ?         	       31,322,720	  31,322,720

Capital Withdrawals                                 	              ?           	              (7,477,645)	            (7,477,645)

Members? Capital,
   June 30, 2008                                                     ?                       141,552,469  	        141,552,469



Members? Capital,
	December 31, 2008                                               ?	                     111,329,373         111,329,373

Capital Contributions                                                ?    		24,975,123	        24,975,123

Net Income	                                                             ?	18,048,624	 18,048,624

Capital Withdrawals                                 	               ?  	    	        (25,105,439)	        (25,105,439)

Members? Capital,
   June 30, 2009                                                  ?	  	              129,247,681 	        129,247,681





<fn>







The accompanying notes are an integral part of these financial statements.

</table>
<page> <table>
Morgan Stanley Managed Futures BHM I, LLC
Statements of Cash Flows (Unaudited)
<caption>


	          For the Six Months Ended June 30,

	        2009     	        2008
	  $	  $


CASH FLOWS FROM OPERATING ACTIVITIES

			<c>	<c>
Net income                                                                                       18,048,624		 31,322,720
Noncash item included in net income:
	Net change in unrealized                                                              8,165,909                 (11,834,184)

(Increase) decrease in operating assets:
	Restricted cash	                                                                (2,706,005)                   (1,650,593)
	Net premiums paid for options purchased                                  (5,865,885)	  (3,177,597)
	Expense reimbursements                                	                                (14,333)                         (8,360)
	Interest receivable (MS&Co.)	                                             38,568      	                    (8,699)

Increase in operating liabilities:
	Net premiums received for options written                                  3,972,365                      1,833,005
	Accrued incentive fees 	                                                  159,018	                377,652
	Accrued management fees	                                                      15,172                          20,379
	Accrued administrative fees 	                                                 2,656     	      	                 3,567

Net cash provided by operating activities	                   21,816,089   	          16,877,890


CASH FLOWS FROM FINANCING ACTIVITIES

Capital contributions 	                                               24,975,123                  111,476,430
Capital withdrawals	                                                                        (36,018,291)	     (7,237,573)

Net cash provided by (used for) financing activities	               (11,043,168)   	             104,238,857

Net increase in unrestricted cash	                             10,772,921    	            121,116,747

Unrestricted cash at beginning of period	                                      113,591,970                    7,038,210

Unrestricted cash at end of period   	                          124,364,891	              128,154,957



<fn>




The accompanying notes are an integral part of these financial statements.

</table>
<page> <table>
Morgan Stanley Managed Futures BHM I, LLC
Condensed Schedules of Investments
June 30, 2009 and December 31, 2008 (Unaudited)
<caption>






Futures and Forward Contracts
       Long
  Unrealized
  Gain/(Loss)

Percentage of
  Members? Capital
    Short
Unrealized
   Gain/(Loss)

 Percentage of
   Members? Capital
    Net
Unrealized
Gain/(Loss)

$
%
   $
%
$


<c>
<c>
<c>
<c>
<c>

June 30, 2009, Members? Capital: $129,247,681



Commodity
   2,299,332
           1.78
 (3,743,610)
       (2.90)
(1,444,278)
Equity
       14,093
              0.01
             ?
             ?
      14,093
Foreign Currency
    (905,436)
          (0.70)
      (15,313)
         (0.01)
   (920,749)
Interest rate
                   ?
                       ?
    (162,420)
       (0.12)
   (162,420)






     Grand Total:
  1,407,989
           1.09
(3,921,343)
       (3.03)
(2,513,354)

     Unrealized Currency Gain




        0.38

     493,965

     Total Net Unrealized Loss on Open Contracts


 Fair Value
             $
   Percentage of
 Members? Capital
            %



Options purchased on Futures Contracts
     9,182,159
        7.10



Options purchased on Forward Contracts
             ?
           ?



Options written on Futures Contracts
    (5,878,022)
        (4.55)



Options written on Forward Contracts
             ?
           ?






(2,019,389)



   261,544


December 31, 2008, Members? Capital: $111,329,373



Commodity
 (2,034,724)
       (1.83)
  5,606,951
        5.04*
3,572,227
Equity
         3,628
             ?
             ?
             ?
      3,628
Foreign currency
    (911,827)
       (0.82)
     352,630
        0.31
   (559,197)
Interest rate
  5,884,920
        5.29*
    (739,021)
       (0.66)
 5,145,899






     Grand Total:
  2,941,997
        2.64
  5,220,560
        4.69
  8,162,557

     Unrealized Currency Loss




       (0.70)

(777,467)

     Total Net Unrealized Gain on Open Contracts





 7,385,090


  Fair Value
              $
   Percentage of
Members?  Capital
           %



Options purchased on Futures Contracts
          2,622,329
       2.36



Options purchased on Forward Contracts
             ?
          ?



Options written on Futures Contracts
        (2,450,282)
       (2.20)



Options written on Forward Contracts
             ?
          ?



<fn>
*No single contract?s value exceeds 5% of the Members? Capital.
The accompanying notes are an integral part of these financial statements.
</table>
<page> Morgan Stanley Managed Futures BHM I, LLC
Notes to Financial Statements
June 30, 2009 (Unaudited)

1. Summary of Significant Accounting Policies

The unaudited financial statements contained herein include, in
the opinion of management, all adjustments necessary for a fair
presentation of the results of operations and financial condition
of Morgan Stanley Managed Futures BHM I, LLC (?BHM I, LLC? or the
?Trading Company?). The financial statements and condensed notes
herein should be read in conjunction with the Trading Company?s
December 31, 2008, Annual Report.

Organization ? BHM I, LLC was formed on March 26, 2007, as a
Delaware limited liability company under the Delaware Limited
Liability Company Act (the ?Act?), to facilitate investments by
Morgan Stanley managed futures funds. The Trading Company
commenced operations on August 1, 2007. The Trading Company?s
trading manager is Demeter Management LLC (?Demeter?), a wholly-
owned subsidiary of Morgan Stanley Smith Barney Holdings LLC,
which in turn is majority owned by Morgan Stanley and minority
owned by Citigroup Inc. (?Citigroup?).  Demeter has retained
Blenheim Capital Management, L.L.C. (?BHM? or the ?Trading
Advisor?) to engage in the speculative trading of commodities,
domestic and foreign futures contracts, forward contracts,
foreign exchange commitments, options on physical commodities and
on futures contracts, spot (cash) commodities and currencies,
exchange of futures contracts for physicals transactions and
futures contracts transactions, and any rights pertaining thereto
(collectively, ?Futures Interests?) (refer to Note 3. Financial
Instruments) on behalf of the Trading Company. Each member (each
investor in the Trading Company, a ?Member?) invests its assets
in the Trading Company, which allocates substantially all of its
assets in the trading program of BHM, an unaffiliated trading
advisor to make investment decisions for the Trading Company. As
of June 30, 2009, Morgan Stanley Managed Futures HV, L.P. (a
Delaware limited partnership) and Morgan Stanley Spectrum
Strategic, L.P. (a Delaware limited partnership) were the Members
of the Trading Company.

   On April 30, 2009, Demeter Management Corporation was
converted to a Delaware limited liability company and changed its
name to Demeter Management LLC.  Prior to June 1, 2009, Demeter
was wholly owned by Morgan Stanley.  Demeter does not believe
that the change in ownership of Demeter had a material impact on
the Trading Company?s Members. At all times Demeter served as the
trading manager of the Trading Company and it continues to do so.
The change in ownership occurred pursuant to the transaction in
which Morgan Stanley and Citigroup agreed to combine the Global
Wealth Management Group of Morgan Stanley and the Smith Barney
division of Citigroup Global Markets Inc. into a new joint
venture. The transaction closed on June 1, 2009.


<page> Morgan Stanley Managed Futures BHM I, LLC
Notes to Financial Statements (continued)

1. Summary of Significant Accounting Policies (cont?d)

Organization (cont?d) ? The Trading Company may buy or write put
and call options through listed exchanges and the over-the-
counter market. The buyer of an option has the right to purchase
(in the case of a call option) or sell (in the case of a put
option) a specific quantity of a specific Futures Interest or
underlying asset at a specified price prior to or on a specified
expiration date. The writer of an option is exposed to the risk
of loss if the market price of a Futures Interest or underlying
asset declines (in the case of a put option) or increases (in the
case of a call option). The writer of an option can never profit
by more than the premium paid by the buyer but can lose an
unlimited amount.

  Premiums received/premiums paid from writing/purchasing options
are recorded as liabilities/assets on the Statements of Financial
Condition and are subsequently adjusted to fair values. The
difference between the fair value of the options and the premiums
received/premiums paid is treated as an unrealized gain or loss.

  The commodity brokers for the Trading Company are Morgan
Stanley & Co. Incorporated (?MS&Co.?) and Morgan Stanley & Co.
International plc (?MSIP?). MS&Co. also acts as the counterparty
on all trading of the foreign currency forward contracts. Morgan
Stanley Capital Group Inc. (?MSCG?) acts as the counterparty on
all trading of the options on foreign currency forward contracts.
MS&Co. and its affiliates act as the custodians of the Trading
Company?s assets. MS&Co., MSIP, and MSCG are wholly-owned
subsidiaries of Morgan Stanley.

Use of Estimates ? The financial statements are prepared in
accordance with accounting principles generally accepted in the
United States of America (?GAAP?), which require management to
make estimates and assumptions that affect the reported amounts
in the financial statements and related disclosures.  Management
believes that the estimates utilized in the preparation of the
financial statements are prudent and reasonable.  Actual results
could differ from those estimates.













<page> Morgan Stanley Managed Futures BHM I, LLC
Notes to Financial Statements (continued)

1. Summary of Significant Accounting Policies (cont?d)

Revenue Recognition ? Futures Interests are open commitments
until settlement date, at which time they are realized. They are
valued at fair value, generally on a daily basis, and the
unrealized gains and losses on open contracts (the difference
between contract trade price and market price) are reported in
the Statements of Financial Condition as net unrealized gains or
losses on open contracts. The resulting net change in unrealized
gains and losses is reflected in the change in unrealized trading
profit (loss) on open contracts from one period to the next on
the Statements of Operations. The fair value of exchange-traded
futures, options and forwards contracts is determined by the
various futures exchanges, and reflects the settlement price for
each contract as of the close of business on the last business
day of the reporting period. The fair value of foreign currency
forward contracts is extrapolated on a forward basis from the
spot prices quoted as of approximately 3:00 P.M. (E.T.) of the
last business day of the reporting period. The fair value of non-
exchange-traded foreign currency option contracts is calculated
by applying an industry standard model application for options
valuation of foreign currency options, using as input, the spot
prices, interest rates, and option implied volatilities quoted as
of approximately 3:00 P.M. (E.T.) on the last business day of the
reporting period.

   Monthly, MS&Co. credits the Trading Company with interest
income on 100% of its average daily funds held at MS&Co. Assets
deposited with MS&Co. as margin will be credited with interest
income at a rate approximately equivalent to what MS&Co. pays or
charges other customers on such assets deposited as margin.
Assets not deposited as margin with MS&Co. will be credited with
interest income at the rate equal to the monthly average of the
4-week U.S. Treasury bill discount rate less 0.15% during such
month but in no event less than zero.

   The Trading Company?s functional currency is the U.S. dollar;
however, the Trading Company may transact business in currencies
other than the U.S. dollar. Assets and liabilities denominated in
currencies other than the U.S. dollar are translated into U.S.
dollars at the rates in effect at the date of the Statements of
Financial Condition. Income and expense items denominated 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 the translation to U.S. dollars are
reported in income currently.






<page> Morgan Stanley Managed Futures BHM I, LLC
Notes to Financial Statements (continued)

1. Summary of Significant Accounting Policies (cont?d)

Members? Capital - The Members? capital of the Trading Company is
equal to the total assets of the Trading Company (including, but
not limited to, all cash and cash equivalents, accrued interest
and amortization of original issue discount, and the fair value
of all open Futures Interests contract positions and other
assets) less all liabilities of the Trading Company (including,
but not limited to, management fees, incentive fees, and
extraordinary expenses), determined in accordance with GAAP.

Trading Equity ? The Trading Company?s asset ?Trading Equity,?
reflected on the Statements of Financial Condition, consists of
(a) cash on deposit with MS&Co. and MSIP to be used as margin for
trading; (b) net unrealized gains or losses on futures and
forward contracts, which are valued at fair value and calculated
as the difference between original contract value and fair value;
and, if any, (c) options purchased at fair value. Options written
at fair value are recorded in ?Liabilities?.

   The Trading Company, in its normal course of business, enters
into various contracts with MS&Co. and MSIP acting as its
commodity brokers. Pursuant to brokerage agreements with MS&Co.
and MSIP, to the extent that such trading results in unrealized
gains or losses, these amounts are offset and reported on a net
basis on the Trading Company?s Statements of Financial Condition.

   The Trading Company has offset its fair value amounts
recognized for forward contracts executed with the same
counterparty as allowable under the terms of the master netting
agreement with MS&Co., as the counterparty on such contracts.
The Trading Company has consistently applied its right to offset.

Restricted and Unrestricted Cash ? The cash held by the Trading
Company is on deposit with MS&Co. and MSIP in futures interests
trading accounts to meet margin requirements as needed. As
reflected on the Trading Company?s Statements of Financial
Condition, restricted cash equals the cash portion of assets on
deposit to meet margin requirements plus the cash required to
offset unrealized losses on foreign currency forwards and options
contracts and offset losses on offset London Metal Exchange
positions. All of these amounts are maintained separately. Cash
that is not classified as restricted cash is therefore classified
as unrestricted cash.








<page> Morgan Stanley Managed Futures BHM I, LLC
Notes to Financial Statements (continued)

1. Summary of Significant Accounting Policies (cont?d)

Brokerage, Clearing and Transaction Fees ? The Trading Company
accrues and pays brokerage, clearing and transaction fees to
MS&Co. Brokerage fees and transaction costs are paid as they are
incurred on a half-turn basis at 100% of the rates MS&Co. charges
retail commodity customers and parties that are not clearinghouse
members. In addition, the Trading Company pays transactional and
clearing fees as they are incurred.

   Effective January 1, 2008, Morgan Stanley Spectrum Strategic
L.P. ("DWSS") became a Member of the Trading Company. DWSS pays
to MS & Co. a monthly brokerage fee at a flat rate of 1/12 of 6%
per month (a 6% annual rate) of the Net Assets of DWSS allocated
to BHM as of the first day of each month. Such fee includes the
brokerage fees that are charged to the Trading Company,
therefore, the Trading Company receives monthly expense
reimbursements on brokerage fees and other transaction fees and
costs incurred during such month, based on the beginning of the
month Members' capital allocation percentage of DWSS in the
Trading Company.

Administrative Fee ? The Trading Company accrues and pays MS&Co.
a monthly fee to cover all administrative and operating expenses
(the ?Administrative Fee?). The monthly Administrative Fee is
equal to 1/12 of 0.35% (a 0.35% annual rate) of the beginning of
the month Members? capital of the Trading Company.

   The DWSS investment into the Trading Company does not pay any
administrative fee to MS&Co. as that is handled at the DWSS
partnership level.

Capital Contributions ? Capital contributions by the Members may
be made monthly pending Demeter?s approval.  Such capital
contributions will increase each Member?s pro rata share of the
Trading Company?s Members? capital.

   Demeter initially invested capital directly in the Trading
Company. As of December 31, 2007, Demeter redeemed all seed
capital investments in the Trading Company. All seed capital
investments by Demeter in the Trading Company participated on the
same terms as the investments made by the Members in the Trading
Company.

Capital Withdrawals ? Each Member may withdraw all or a portion
of its capital as of the last business day of the month. The
request for withdrawal must be received in writing by Demeter at
least three business days prior to the end of such month. Such
capital withdrawals will decrease each Member?s pro rata share of
the Trading Company?s Members? capital.  Demeter may require the
withdrawal of a capital account under certain circumstances, as
defined in the operating agreement.
<page> Morgan Stanley Managed Futures BHM I, LLC
Notes to Financial Statements(continued)

1. Summary of Significant Accounting Policies (cont?d)

Distributions ? Distributions, other than capital withdrawals,
are made on a pro-rata basis at the sole discretion of Demeter.
No distributions have been made to date. Demeter does not intend
to make any distributions of the Trading Company?s profits.

Income Taxes ? No provision for income taxes has been made in the
accompanying financial statements, as Members are individually
responsible for reporting income or loss based upon their pro
rata share of  the Trading Company?s revenue and expenses for
income tax purposes. The Trading Company files U.S. federal and
state tax returns.

   Financial Accounting Standards Board (?FASB?) Interpretation
No. 48, ?Accounting for Uncertainty in Income Taxes, an
interpretation of FASB Statement No. 109? (?FIN 48?), clarifies
the accounting for uncertainty in income taxes recognized in a
Trading Company?s financial statements, and prescribes a
recognition threshold and measurement attribute for financial
statement recognition and measurement of a tax position taken or
expected to be taken. Generally, 2007 and 2008 tax years remain
subject to examination by U.S. federal and most state tax
authorities.

Dissolution of the Trading Company ? The Trading Company shall be
dissolved upon the first of the following events to occur:

    (1)	The sole determination of Demeter; or
    (2)	The written consent of the Members holding not less
than a majority interest in capital with or without
cause; or
(3)	The occurrence of any other event that causes the
dissolution of the limited liability company under the
Act.














<page> Morgan Stanley Managed Futures BHM I, LLC
Notes to Financial Statements (continued)

2. Trading Advisor

   Demeter retains BHM to make all trading decisions for the
Trading Company.

   Fees paid to BHM by the Trading Company consist of a
management fee and an incentive fee as follows:

Management Fee ? The Trading Company accrues and pays BHM a
monthly management fee based on a percentage of Members? Capital
as described in the advisory agreement among the Trading Company,
Demeter, and BHM.

Incentive Fee ? The Trading Company pays BHM a quarterly
incentive fee equal to 20% of the New Trading Profits earned by
each Member.  Such fee is accrued on a monthly basis, but is not
payable until the end of each calendar quarter.

   New Trading Profits represent the amount by which profits from
Futures Interests trading exceed losses after management fees,
brokerage fees and transaction costs, and administrative fees are
deducted. When BHM experiences losses with respect to the
Members? capital as of the end of a calendar quarter, BHM must
recover such losses before it is eligible for an incentive fee in
the future. Losses are reduced for capital withdrawn from the
Trading Company.

   The DWSS investment into the Trading Company does not pay any
management or incentive fees to BHM as those are handled at the
DWSS partnership level.






















<page> Morgan Stanley Managed Futures BHM I, LLC
Notes to Financial Statements (continued)

3. Financial Instruments

   The Trading Advisor trades Futures Interests on behalf of the
Trading Company. Futures and forwards represent contracts for
delayed delivery of an instrument at a specified date and price.
Risk arises from changes in the value of these contracts and the
potential inability of counterparties to perform under the terms
of the contracts.  There are numerous factors which may
significantly influence the fair value of these contracts,
including interest rate volatility.

   The fair value of exchange-traded contracts is based on the
settlement price quoted by the exchange on the day with respect
to which fair value is being determined. If an exchange-traded
contract could not have been liquidated on such day due to the
operation of daily limits or other rules of the exchange, the
settlement price shall be the settlement price on the first
subsequent day on which the contract could be liquidated. The
fair value of off-exchange-traded contracts is based on the fair
value quoted by the counterparty.

   The exchange-traded contracts are accounted for on a trade-
date basis and fair-valued on a daily basis.  The off-exchange-
traded contracts are monthly fair valued.

   The Trading Company accounts for its derivative investments in
accordance with the provisions of Statement of Financial
Accounting Standards (?SFAS?) No. 133, ?Accounting for Derivative
Instruments and Hedging Activities? (?SFAS No. 133?).  SFAS No.
133 defines a derivative as a financial instrument or other
contract that has all three of the following characteristics:

(1)	One or more underlying notional amounts or payment
provisions;
(2)	Requires no initial net investment or a smaller initial
net investment than would be 	required relative to
changes in market factors; and
    (3)	Terms require or permit net settlement.


   Generally, derivatives include futures, forward, swaps or
options contracts, and other financial instruments with similar
characteristics such as caps, floors, and collars.








<page> Morgan Stanley Managed Futures BHM I, LLC
Notes to Financial Statements (continued)

3. Financial Instruments (cont?d)

   The net unrealized gains (losses) on open contracts, reported
as a component of ?Trading Equity? on the Statements of Financial
Condition, and their longest contract maturities were as follows:
<table> <caption>
		          Net Unrealized Gains/(Losses)
			                       on Open Contracts			           Longest Maturities
				                      Off-					                    Off-
	 	                   Exchange-	    Exchange-			   Exchange-	 Exchange-
        Date		        Traded	      Traded                   Total	   Traded	    Traded
       
				<c>		<c>		<c>		<c>		<c>
        June 30, 2009   	     $(1,114,990)        $(904,399)	  $ (2,019,389)	    Dec. 2012	    Mar. 2010
        December 31, 2008         $ 8,319,704         $(934,614)	  $  7,385,090	    Dec. 2012	    Sep. 2009
</table>

4.  Derivative Instruments and Hedging Activities

   In March 2008, the FASB issued SFAS No. 161, ?Disclosures
about Derivative Instruments and Hedging Activities, an amendment
of FASB Statement No. 133? ("SFAS No. 161"). SFAS No. 161 is
intended to improve financial reporting about derivative
instruments and hedging activities by requiring enhanced
disclosures to enable investors to better understand how those
instruments and activities are accounted for; how and why they
are used; and their effects on a Trading Company?s financial
position, financial performance, and cash flows.  SFAS No. 161
was effective as of January 1, 2009, for the Trading Company.

   The Trading Company?s objective is to profit from speculative
trading in Futures Interests.  Therefore, the Trading Advisor for
the Trading Company will take speculative positions in Futures
Interests where they feel the best profit opportunities exist for
their trading strategy. As such, the absolute quantity (the total
of the open long and open short positions) has been presented as
a part of the volume disclosure, as position direction is not an
indicative factor in such volume disclosures. In regards to
foreign currency forward trades, each notional quantity amount
has been converted to an equivalent contract based upon an
industry convention.

   The following table summarizes the valuation of the Trading
Company?s investments by the above SFAS No. 161 disclosure as of
June 30, 2009 and reflects the contracts outstanding at such
time.






<page>
Morgan Stanley Managed Futures BHM I, LLC
Notes to Financial Statements (continued)

4.  Derivative Instruments and Hedging Activities (cont?d)
<table> <caption>
The Effect of Trading Activities on the Statements of Financial Condition for the Six Months Ended June 30, 2009:



   Futures and Forward Contracts

             Long
        Unrealized
         Gain

L           Long
         Unrealized
       Loss

            Short
        Unrealized
          Gain

Short
Unrealized
  Loss

        Net
     Unrealized
    Gain/(Loss)

Total Number
of Outstanding
Contracts

  $
$
      $
        $
    $



<c>
<c>
 <c>
 <c>
<c>
<c>
Tr  Commodity
          9,957,911
   (7,658,579)
     952,771
    (4,696,381)
          (1,444,278)
               7,639
K   Equity
               16,330
          (2,237)
           ?
             ?
                14,093
                    39
Foreign currency
             169,974
   (1,075,410)
             ?
         (15,313)
             (920,749)
                  529
K   Interest rate
                 ?___
           ?___
                 ?___
     (162,420)
             (162,420)
                 200
K        Total
10,144,215
 (8,736,226)
       952,771
  (4,874,114)
          (2,513,354)

K        Unrealized currency gain




              493,965

       Total net unrealized loss on open contracts                       (2,019,389)

    Options purchased, fair value
        6,858,497
   2,323,662
   ?
    ?
    Options written, fair value
   ?
    ?
(2,051,837)
     (3,826,185)
</table>
   The following tables summarize the net trading results of the
Trading Company during the three and six month periods as
required by SFAS No. 161.
<table> <caption>

The Effect of Trading Activities on the Statements of Operations for the Three and Six Months Ended June 30, 2009,
included in Total Trading Results:


For the Three Months
For the Six Months

Ended June 30, 2009
Ended June 30, 2009



Type of Instrument
$
$


<c>
<c>
Tr  Commodity
         5,090,571
         8,725,284
K   Equity
          (132,062)
          (186,759)
K   Foreign currency
            (97,228)
            864,384
K   Interest rate
       4,961,193
       7,889,586
K   Unrealized currency gain
       1,412,077
       1,271,433
K        Total
     11,234,551
     18,563,928

Line Items on the Statements of Operations for the Three and Six Months Ended June 30, 2009:


For the Three Months
For the Six Months

Ended June 30, 2009
Ended June 30, 2009



Trading Results
$
$



Tr  Realized
             15,317,057
             26,729,837
K   Net change in unrealized
             (4,082,506)
             (8,165,909)
K      Total Trading Results
       11,234,551
       18,563,928

</table>







<page> Morgan Stanley Managed Futures BHM I, LLC
Notes to Financial Statements (continued)

5.  Fair Value Measurements

   As defined by SFAS No. 157, ?Fair Value Measurements?, fair
value is the amount that would be recovered when an asset is sold
or an amount paid to transfer a liability, in an ordinary
transaction between market participants at the measurement date
(exit price). Market price observability is impacted by a number
of factors, including the types of investments, the
characteristics specific to the investment, and the state of the
market (including the existence and the transparency of
transactions between market participants). Investments with
readily available actively quoted prices in an ordinary market
will generally have a higher degree of market price observability
and a lesser degree of judgment used in measuring fair value.

   SFAS No. 157 requires use of a fair value hierarchy that
prioritizes the inputs to valuation techniques used to measure
fair value into three levels: Level 1 ? unadjusted quoted market
prices in active markets for identical assets and liabilities;
Level 2 - inputs other than unadjusted quoted market prices that
are observable for the asset or liability, either directly or
indirectly (including quoted prices for similar investments,
interest rates, credit risk); and Level 3 - unobservable inputs
for the asset or liability (including the Trading Company?s own
assumptions used in determining the fair value of investments).

     In certain cases, the inputs used to measure fair value may
fall into different levels of the fair value hierarchy. In such
cases, an investment?s level within the fair value hierarchy is
based on the lowest level of input that is significant to the
fair value measurement. The Trading Company?s assessment of the
significance of a particular input to the fair value measurement
in its entirety requires judgment, and considers factors specific
to the investment.















<page> Morgan Stanley Managed Futures BHM I, LLC
Notes to Financial Statements (continued)

5. Fair Value Measurements (cont?d)

   The following tables summarize the valuation of the Trading
Company?s investments by the above SFAS No. 157 fair value
hierarchy as of June 30, 2009 and December 31, 2008:
<table> <caption>

June 30, 2009





Quoted Prices in
   Active Markets for
  Identical Assets
        (Level 1)

  Significant Other
   Observable
       Inputs
     (Level 2)

  Significant
   Unobservable
     Inputs
   (Level 3)





       Total
  Assets


<c>
<c>
 <c>

<c>
Net unrealized loss on open contracts

                        $(1,114,990)

 $(904,399)

    n/a


                     $(2,019,389)
Options purchased
                        $ 9,182,159
?
 n/a

                     $ 9,182,159






Liabilities





Options written
                       $ 5,878,022
?
   n/a

                     $ 5,878,022


December 31, 2008





Quoted Prices in
   Active Markets for
  Identical Assets
        (Level 1)

  Significant Other
   Observable
       Inputs
     (Level 2)

  Significant
   Unobservable
     Inputs
   (Level 3)





       Total
  Assets
Net unrealized gain (loss) on open
  contracts

                        $8,319,704

 $(934,614)

    n/a


                     $7,385,090
Options purchased
                        $2,622,329
?
 n/a

                     $2,622,329






Liabilities





Options written
                       $2,450,282
?
   n/a

                     $2,450,282

</table>


















<page>
Morgan Stanley Managed Futures BHM I, LLC
Notes to Financial Statements (continued)

6. Investment Risk
   The Members? investments in the Trading Company expose the
Members to various types of risks that are associated with
Futures Interests trading and markets in which the Trading
Company invests. The significant types of financial risks which
the Trading Company is exposed to are market risk, liquidity
risk, and counterparty risk.

   The rapid fluctuations in the market prices of Futures
Interests in which the Trading Company invests make the Members?
investments volatile. If BHM incorrectly predicts the direction
of prices in the Futures Interests in which it invests, large
losses may occur.

   Illiquidity in the markets in which the Trading Company
invests may cause less favorable trade prices.  Although BHM will
generally purchase and sell actively traded contracts where last
trade price information and quoted prices are readily available,
the prices at which a sale or purchase occur may differ from the
prices expected because there may be a delay between receiving a
quote and executing a trade, particularly in circumstances where
a market has limited trading volume and prices are often quoted
for relatively limited quantities.























<page>
Morgan Stanley Managed Futures BHM I, LLC
Notes to Financial Statements (continued)

6. Investment Risk (cont?d)

        The credit risk on Futures Interests arises from the
potential inability of counterparties to perform under the terms
of the contracts.  The Trading Company has credit risk because
MS&Co., MSIP, and/or MSCG act as the commodity brokers and/or the
counterparties with respect to most of the Trading Company?s
assets.  The Trading Company?s exposure to credit risk associated
with counterparty nonperformance is typically limited to the cash
deposits with, or other form of collateral held by, the
counterparty. The Trading Company?s assets deposited with MS&Co.
or its affiliates are segregated or secured in accordance with
the Commodity Exchange Act and the regulations of the Commodity
Futures Trading Commission (the ?CFTC?) and are expected to be
largely held in non-interest bearing bank accounts at a U.S. bank
or banks, but may also be invested in any other instruments
approved by the CFTC for investment of customer funds. Exchange-
traded futures, exchange-traded forward, and exchange-traded
futures-styled options contracts are marked to market on a daily
basis, with variations in value settled on a daily basis. With
respect to the Trading Company?s off-exchange-traded forward
currency contracts and forward currency options contracts, there
are no daily settlements of variation in value, nor is there any
requirement that an amount equal to the net unrealized gains
(losses) on such contracts be segregated. However, the Trading
Company is required to meet margin requirements equal to the net
unrealized loss on open forward currency contracts in the Trading
Company accounts with the counterparty, which is accomplished by
daily maintenance of the cash balance in a custody account held
at MS&Co. The Trading Company had assets on deposit with MS&Co.
and MSIP, each acting as a commodity broker for the Trading
Company?s trading of Futures Interests, totaling $135,794,601 and
$131,750,369 at June 30, 2009, and December 31, 2008,
respectively. With respect to those off-exchange-traded forward
currency contracts, the Trading Company is at risk to the ability
of MS&Co., the sole counterparty on all such contracts, to
perform. With respect to those off-exchange-traded forward
currency options contracts, the Trading Company is at risk to the
ability of MSCG, the sole counterparty on all such contracts, to
perform. The Trading Company has a netting agreement with each
counterparty. These agreements, which seek to reduce both the
Trading Company?s and the counterparties? exposure on off-
exchange-traded forward currency contracts, including options on
such contracts, should materially decrease the Trading Company?s
credit risk in the event of MS&Co.?s or MSCG?s bankruptcy or
insolvency.





<page>
Morgan Stanley Managed Futures BHM I, LLC
Notes to Financial Statements (continued)

7. Recent Accounting Pronouncements

(a) Determining Fair Value When the Volume and Level of Activity
for the Asset or Liability Have Significantly Decreased and
Identifying Transactions That Are Not Orderly

   In April 2009, the FASB issued FASB Staff Position (?FSP?)
SFAS No. 157-4, Determining Fair Value When the Volume and Level
of Activity for the Asset or Liability Have Significantly
Decreased and Identifying Transactions That Are Not Orderly (?FSP
SFAS No.157-4?). FSP SFAS No. 157-4 provides additional guidance
for determining fair value and requires new disclosures regarding
the categories of fair value instruments, as well as the inputs
and valuation techniques utilized to determine fair value and any
changes to the inputs and valuation techniques during the period.
FSP SFAS No. 157-4 is effective for the quarter ended June 30,
2009. The adoption of FSP SFAS No. 157-4 did not have a material
impact on the Trading Company?s financial statements.

(b) Interim Disclosures about Fair Value of Financial Instruments

   In April 2009, the FASB issued FSP SFAS No. 107-1 and
Accounting Principals Board (?APB?) No. 28-1, Interim Disclosures
About Fair Value of Financial Instruments (?FSP SFAS No. 107-1?
and ?APB No. 28-1?). The staff position requires fair value
disclosures of financial instruments on a quarterly basis, as
well as new disclosures regarding the methodology and significant
assumptions underlying the fair value measures and any changes to
the methodology and assumptions during the reporting period.  FSP
SFAS No. 107-1 and APB No. 28-1 are effective for the quarter
ended June 30, 2009.  The adoption of FSP SFAS No. 107-1 and APB
No. 28-1 did not have a material impact on the Trading Company?s
financial statements.

(c)  Subsequent Events

   In May 2009, the FASB issued SFAS No. 165, Subsequent Events
(?SFAS No. 165?).  SFAS No. 165 establishes general standards of
accounting for and disclosure of events that occur after the
balance sheet date but before financial statements are issued or
are available to be issued. It requires the disclosure of the
date through which an entity has evaluated subsequent events and
the basis for that date; that is, whether that date represents
the date the financial statements were issued or were available
to be issued. SFAS No. 165 is effective for the quarter ended
June 30, 2009. Management has performed its evaluation of
subsequent events through August 12, 2009, the date these
financial statements were issued.



<page>
Morgan Stanley Managed Futures BHM I, LLC
Notes to Financial Statements (concluded)

7. Recent Accounting Pronouncements (cont?d)

(d)  Accounting Standards Codification

   On June 29, 2009, the FASB issued Statement No. 168, ?FASB
Accounting Standards Codification? and the Hierarchy of Generally
Accepted Accounting Principles ? a replacement of FASB Statement
No. 162.  The FASB has stated that the FASB Accounting Standards
Codification (?Codification?) will become the source of
authoritative U.S. GAAP recognized by the FASB to be applied by
nongovernmental entities. Once effective, the Codification?s
content will carry the same level of authority, effectively
superseding Statement No. 162. In other words, the GAAP hierarchy
will be modified to include only two levels of GAAP: authoritative
and nonauthoritative. Statement No. 168 is effective for financial
statements issued for interim and annual periods ending after
September 15, 2009.



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