Morgan Stanley Managed Futures
BHM I, LLC

Interim Financial Statements
For the Three Months Ended
March 31, 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>
	  March 31,	        December 31,
                         2009      	         2008
	  $	        $
ASSETS

	<c>	<c>

Trading Equity:
    Unrestricted cash	115,734,814	113,591,970
    Restricted cash	    12,580,981	        9,838,695

          Total cash	  128,315,795	   123,430,665

   Net unrealized gain on open contracts (MS&Co.)	         1,823,736	       5,529,200
   Net unrealized gain on open contracts (MSIP)	            879,530	             1,855,890

         Total net unrealized gain on open contracts	         2,703,266	       7,385,090

   Options purchased (premiums paid $5,209,974
        and $2,002,078, respectively)	     6,340,178	         2,622,329

	    Total Trading Equity	137,359,239	133,438,084

Expense reimbursements	            32,465	            20,402
Interest receivable (MS&Co.)	            1,537	            39,255


	    Total Assets	  137,393,241	    133,497,741

LIABILITIES AND MEMBERS? CAPITAL

LIABILITIES
Options written (premiums received $3,512,650
    and $1,299,709, respectively)				    	  4,574,755		  2,450,282
Withdrawals payable 	4,113,330     	19,671,490
Accrued management fees	44,283	39,656
Accrued administrative fees 	            7,750	             6,940

	     Total Liabilities	     8,740,118	   22,168,368

MEMBERS? CAPITAL
Non-Managing Members	  128,653,123	  111,329,373

	Total Members? Capital	  128,653,123	  111,329,373

	Total Liabilities and Members? Capital	     137,393,241	  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 Quarters Ended March 31,

		                  2009                               2008
                                                  $	                      $

     
		<c>			<c>
INVESTMENT INCOME
	Interest income (MS&Co.)		          22,281			       50,226

EXPENSES
	Management fees		129,430    	52,331
	Brokerage, clearing and transaction fees 		 115,341	48,421
	Administrative fees	   	22,650	            9,158
     Incentive fee	      	             ?                	        225,080

         Total Expenses		    267,421   	   334,990

    Expenses reimbursements   		     (92,540)	         (44,197)

        Net Expenses      		     174,881	        290,793

NET INVESTMENT LOSS	   (152,600)	       (240,567)

TRADING RESULTS
Trading profit (loss):
	Realized			 11,412,780	10,235,285
	Net change in unrealized		   (4,083,403)	     5,917,924

        Total Trading Results		    7,329,377	   16,153,209

NET INCOME  	   7,176,777 	   15,912,642


NET INCOME ALLOCATION
Non-Managing Members	                                                         7,176,777		  15,912,642




<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 Quarters Ended March 31, 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                                               ?    		105,661,202		105,661,202

Net Income	                                                              ?         	       15,912,642	  15,912,642

Capital Withdrawals                                 	              ?           	               (4,038,506)	            (4,038,506)

Members? Capital,
   March 31, 2008                  ?                        123,766,302  	       123,766,302




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

Capital Contributions                                                ?    		22,346,135	        22,346,135

Net Income	                                                             ?	7,176,777	   7,176,777

Capital Withdrawals                                 	               ?  	    	        (12,199,162)	        (12,199,162)

Members? Capital,
   March 31, 2009                      ?  	              128,653,123 	        128,653,123



<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 Quarters Ended March 31,

	        2009     	        2008
	  $	  $

	<c>	<c>

CASH FLOWS FROM OPERATING ACTIVITIES

Net income                                                                                        7,176,777		 15,912,642
Noncash item included in net income:
	Net change in unrealized                                                             4,083,403                    (5,917,924)

(Increase) decrease in operating assets:
	Restricted cash	                                                                (2,742,286)                   (1,198,667)
	Net premiums paid for options purchased                                  (3,207,896)	  (3,537,635)
	Expense reimbursements                                	                                (12,063)                        (16,256)
	Interest receivable (MS&Co.)	                                             37,718    	  	                      3,695

Increase in operating liabilities:
	Net premiums received for options written                                  2,212,941                      1,592,170
	Accrued management fees	                                                      4,627                           11,223
	Accrued administrative fees 	                                                     810     	      	                  1,964
	Accrued incentive fee 	                                                     ?        	                 177,445

Net cash provided by operating activities	                    7,554,031   	              7,028,657


CASH FLOWS FROM FINANCING ACTIVITIES

Capital contributions 	                                               22,346,135                  105,661,202
Capital withdrawals	                                                                        (27,757,322)	      (3,735,265)

Net cash provided by (used for) financing activities	                (5,411,187)   	             101,925,937

Net increase in unrestricted cash	                              2,142,844    	             108,954,594

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

Unrestricted cash at end of period   	                          115,734,814	                  115,992,804


<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
March 31, 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>

March 31, 2009, Members? Capital: $128,653,123



Commodity
   3,063,098
        2.38
   1,616,974
        1.26
4,680,072
Equity
        (8,735)
         (0.01)
             ?
             ?
       (8,735)
Foreign Currency
    (793,756)
       (0.62)
        (1,290)
             ?
   (795,046)
Interest rate
     515,021
        0.40
    (769,935)
       (0.60)
   (254,914)
     Grand Total:
  2,775,628
        2.15
     845,749
       (0.66)
  3,621,377

     Unrealized Currency Loss




       (0.71)

   (918,111)

     Total Net Unrealized Gain on Open Contracts


 Fair Value
             $
   Percentage of
 Members? Capital
            %



Options purchased on Futures Contracts
     6,340,178
        4.93



Options purchased on Forward Contracts
             ?
           ?



Options written on Futures Contracts
    (4,574,755)
        (3.56)



Options written on Forward Contracts
             ?
           ?






 2,703,266



   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
March 31, 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. Demeter Management
Corporation (?Demeter?) is the trading manager of the Trading
Company. Demeter has retained Blenheim Capital Management, L.L.C.
(?BHM? or the ?Trading Advisor?) to engage in the speculative
trading of 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 4) 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 March 31, 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.

   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.






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

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

Organization (cont?d) ? 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. Demeter, 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.

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

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

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

Revenue Recognition (cont?d) ? 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.

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.





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

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

Trading Equity (cont?d) ? 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 Trading Company?s cash 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.

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.


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

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

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.

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 ("the 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. The adoption of FIN 48 does
not have a material impact on the Trading Company?s financial
statements. The 2007 and 2008 tax years remain subject to
examination by U.S. federal and most state tax authorities.






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

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

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.

New Accounting Developments - In April 2009, the FASB issued FASB
Staff Position (?FSP?) FAS 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 FAS No. 157-4?). FSP FAS 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 FAS No. 157-4 is effective for
interim and annual periods ending after June 15, 2009.  The
Trading Company is currently evaluating the impact of the
adoption of FSP FAS No. 157-4.

In April 2009, the FASB issued FSP FAS No. 107-1 and Accounting
Principals Board (?APB?) No. 28-1, Interim Disclosures About Fair
Value of Financial Instruments (?FSP FAS 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 FAS
No. 107-1 and APB No. 28-1 are effective for interim and annual
periods ending after June 15, 2009.  The Trading Company is
currently evaluating the impact of the adoption of FSP FAS No.
107-1 and APB No. 28-1.











<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.


3. Financial Instruments

   The Trading Company trades Futures Interests. 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.

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

3. Financial Instruments (cont?d)

   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 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;
    (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.

   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>
        March 31, 2009   	     $3,582,644        $(879,378)	  $ 2,703,266	    Dec. 2012	    Sep. 2009
        December 31, 2008         $8,319,704        $(934,614)	  $ 7,385,090	    Dec. 2012	    Sep. 2009
</table>












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

4. Fair Value Measurements

   Management has continued to evaluate the application of SFAS
No. 157 ("SFAS No. 157"), "Fair Value Measurements" to the
Trading Company, and has determined that SFAS No, 157 does not
have a material impact on the financial statements. 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)

4. 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 March 31, 2009 and December 31, 2008:
<table> <caption>

March 31, 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 gain (loss) on open
contracts

                        $3,582,644

 $(879,378)

    n/a


                     $2,703,266
Options purchased
                        $6,340,178
?
 n/a

                     $6,340,178






Liabilities





Options written
                       $4,574,755
?
   n/a

                     $4,574,755
</table>
<table> <caption>
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

						<c>		<c>		<c>		<c>
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)

5. 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)

5. 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 $131,898,439 and
$131,750,369 at March 31, 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)

5. Investment Risk (cont?d)

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 is effective
for financial statements issued for fiscal years beginning after
November 15, 2008, and interim periods within those fiscal years.

   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) which has been
presented, 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
March 31, 2009 and reflects the information outstanding at such
time.
<table> <caption>

The Effect of Trading Activities on the Statements of Financial Condition for the Three Months Ended March 31, 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
        11,161,555
   (8,098,457)
  3,514,039
    (1,897,065)
           4,680,072
               6,389
K   Equity
                  ?
          (8,735)
           ?
             ?
                (8,735)
                      9
Foreign currency
             261,603
   (1,055,359)
             ?
           (1,290)
             (795,046)
                  453
K   Interest rate
             518,104
        (3,083)
                 ?___
     (769,935)
            (254,914)
               1,652
K        Total
 11,941,262
 (9,165,634)
    3,514,039
  (2,668,290)
           3,621,377

K        Unrealized currency loss




            (918,111)

       Total net unrealized gain on open contracts                         2,703,266

    Options purchased
       4,868,530
   1,471,648
   ?
    ?
    Options written
   ?
    ?
(989,720)
     (3,585,035)

</table>





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

5. Investment Risk (cont?d)

Derivative Instruments and Hedging Activities (cont?d) ?

   Based upon the Trading Advisor?s historical trading, it can
generally be expected that the Trading Company will trade
approximately 2,000 round turn contracts per million under
management over the course of a year or approximately 500
contracts in a quarter.  Such quarterly amount is based upon such
contracts being evenly traded throughout the year, but may be
higher or lower for any individual quarter. The Trading Advisor?s
volume will vary over time based upon a multitude of factors,
including but not limited to, individual market price movement,
individual market volatility and individual market liquidity.

   The following table summarizes the net trading results of the
Trading Company during the quarter as required by SFAS No. 161.

<table> <caption>

The Effect of Trading Activities on the Statements of Operations for the Three Months Ended March 31, 2009
included in Total Trading Results:

Type of Instrument
$


            <c>
Tr  Commodity
      3,634,713
K   Equity
         (54,697)
K   Foreign currency
        961,612
K   Interest rate
   2,928,393
K   Unrealized currency loss
    (140,644)
K        Total
   7,329,377


Line Item on Statements of Operations for the Three Months Ended March 31, 2009:

Trading Results
$


Tr  Realized
         11,412,780
K   Net change in unrealized
          (4,083,403)
K      Total Trading Results
     7,329,377
</table>

   As discussed in Note 1, the Trading Company?s objective for
investing in these derivatives is for speculative trading.











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

6. Subsequent Events

   On January 13, 2009, Morgan Stanley and Citigroup announced
that they had 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?). The joint venture will own Morgan Stanley Smith
Barney LLC, a newly formed investment advisor and broker dealer
that will be registered with the U.S. Securities and Exchange
Commission and as a non-clearing futures commission merchant with
the Commodities Futures Trading Commission. Upon the closing of
the Transaction, subsidiaries of Morgan Stanley collectively will
have a 51 percent ownership interest in the joint venture and
Citigroup Inc. (?Citi?) will have a 49 percent ownership interest
in the joint venture. The Transaction is expected to close by the
end of the third quarter of 2009.

   As part of the Transaction, the Board of Directors of Demeter
resolved that Demeter should be converted from a Delaware
corporation to a Delaware limited liability company (the
?Conversion?). The Conversion became effective on April 30, 2009
and Demeter?s name changed to Demeter Management LLC.

   In addition, in the near future Morgan Stanley, the sole
member of Demeter, intends to contribute all of the membership
interests in Demeter (along with other Morgan Stanley
subsidiaries being contributed to the joint venture as part of
the Transaction) to Morgan Stanley Commercial Financial Services,
Inc. It is anticipated that on or about the time of the
consummation of the Transaction, Morgan Stanley Commercial
Financial Services, Inc. will contribute to Morgan Stanley JV
Holdings LLC all of its in-scope assets and liabilities
(including all of the membership interests of Demeter)
(collectively, the ?Contribution?). Upon the completion of both
the Conversion and the Contribution, Demeter will be a Delaware
limited liability company that is a wholly owned subsidiary of
Morgan Stanley Smith Barney Holdings LLC, which in turn will be
owned 51 percent by Morgan Stanley and 49 percent by Citi.

   At all times Demeter shall remain the trading manager of the
Trading Company and at no time will it cease to exist. In
addition, neither the Conversion nor the Contribution will
materially impact the daily trading activities of the Trading
Company?s respective commodity Trading Advisors.  The Board of
Directors of Demeter believes that the Conversion and the
Contribution shall not have a material impact on the Trading
Company?s Members.




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