ML GLOBAL HORIZONS LP - 10-Q Quarterly Report

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

For the quarterly period ended September 30, 2004

OR

/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission File Number 0-23240

ML GLOBAL HORIZONS L.P.
----------------------------
(Exact Name of Registrant as
specified in its charter)

Delaware 13-3716393
- ------------------------------- ---------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)

c/o Merrill Lynch Investment Managers LLC
222 Broadway
27th Floor
New York, NY 10038-2510
---------------------------------------------
(Address of principal executive offices)
(Zip Code)

609-282-6996
---------------------------------------------
(Registrant's telephone number, including area code)

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

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

ML GLOBAL HORIZONS L.P.
(A DELAWARE LIMITED PARTNERSHIP)

STATEMENTS OF FINANCIAL CONDITION

NET ASSET VALUE PER UNIT (SEE NOTE 2)

See notes to financial statements.

2

ML GLOBAL HORIZONS L.P.
(A DELAWARE LIMITED PARTNERSHIP)

STATEMENTS OF OPERATIONS
(unaudited)

See notes to financial statements.

3

ML GLOBAL HORIZONS L.P.
(A DELAWARE LIMITED PARTNERSHIP)

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003
(unaudited)

See notes to financial statements.

4

ML GLOBAL HORIZONS L.P.
(A DELAWARE LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS
(unaudited)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

In the opinion of management, the financial statements contain all adjustments
necessary to present fairly the financial position of ML Global Horizons L.P.
(the "Partnership") as of September 30, 2004, and the results of its operations
for the three and nine months ended September 30, 2004 and 2003. However, the
operating results for the interim periods may not be indicative of the results
for the full year.

Certain information and footnote disclosures normally included in annual
financial statements prepared in conformity with accounting principles generally
accepted in the United States of America have been omitted. It is suggested that
these financial statements be read in conjunction with the financial statements
and notes thereto included in the Partnership's Annual Report on Form 10-K filed
with the Securities and Exchange Commission for the year ended December 31,
2003.

2. NET ASSET VALUE PER UNIT

At September 30, 2004 and December 31, 2003, the Net Asset Values of the
different series of the Partnership are:

September 30, 2004
(unaudited)

December 31, 2003

5

3. FAIR VALUE AND OFF-BALANCE SHEET RISK

The nature of this Partnership has certain risks, which cannot be presented on
the financial statements. The following summarizes some of those risks.

MARKET RISK

Derivative instruments involve varying degrees of off-balance sheet market risk.
Changes in the level or volatility of interest rates, foreign currency exchange
rates or the market values of the financial instruments or commodities
underlying such derivative instruments frequently result in changes in the
Partnership's net unrealized profit (loss) on such derivative instruments as
reflected in the Statements of Financial Condition. The Partnership's exposure
to market risk is influenced by a number of factors, including the relationships
among the derivative instruments held by the Partnership as well as the
volatility and liquidity of the markets in which the derivative instruments are
traded.

The General Partner, Merrill Lynch Investment Managers LLC ("MLIM LLC"), has
procedures in place intended to control market risk exposure, although there can
be no assurance that they will, in fact, succeed in doing so. These procedures
focus primarily on monitoring the trading of the Advisors, calculating the Net
Asset Values of the Partnership as of the close of business on each day and
reviewing outstanding positions for over-concentrations. While MLIM LLC does not
itself intervene in the markets to hedge or diversify the Partnership's market
exposure, MLIM LLC may urge the Advisors to reallocate positions in an attempt
to avoid over-concentrations. However, such interventions are unusual and unless
it appears that the Advisors have begun to deviate from past practice or trading
policies or to be trading erratically, MLIM LLC's basic risk control procedures
consist simply of the ongoing process of advisor monitoring, with the market
risk controls being applied by the Advisors themselves.

CREDIT RISK

The risks associated with exchange-traded contracts are typically perceived to
be less than those associated with over-the-counter (non-exchange-traded)
transactions, because exchanges typically (but not universally) provide
clearinghouse arrangements in which the collective credit (in some cases limited
in amount, in some cases not) of the members of the exchange is pledged to
support the financial integrity of the exchange. In over-the-counter
transactions, on the other hand, traders must rely solely on the credit of their
respective individual counterparties. Margins, which may be subject to loss in
the event of a default, are generally required in exchange trading, and
counterparties may also require margin in the over-the-counter markets.

The credit risk associated with these instruments from counterparty
nonperformance is the net unrealized profit, if any, included in the Statements
of Financial Condition. The Partnership attempts to mitigate this risk by
dealing exclusively with Merrill Lynch entities as clearing brokers.

The Partnership, in its normal course of business, enters into various contracts
with Merrill Lynch, Pierce, Fenner & Smith Inc. ("MLPF&S") acting as its
commodity broker. Pursuant to the brokerage agreement with MLPF&S (which
includes a netting arrangement), to the extent that such trading results in
receivables from and payables to MLPF&S, these receivables and payables are
offset and reported as a net receivable or payable and included in Net
Unrealized profit on open contracts on the Statements of Financial Condition.

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

MONTH-END NET ASSET VALUE PER UNIT (SERIES F)

Performance Summary

JANUARY 1, 2004 TO SEPTEMBER 30, 2004

January 1, 2004 to March 31, 2004

The Partnership experienced gains in all sectors, with most of the gains in the
metals sector.

The metals sector was profitable throughout the quarter. In January, the
Partnership profited from its long exposure. Copper rose to its highest price in
more than six years and gold climbed to highs not seen since 1988. In February,
both precious and industrial metals generated positive returns from the long
side. Base metals, with the exception of nickel, continued their upward trend as
the sector reacted to strong demand, shrinking supply and U.S. dollar weakness.
Strong demand for copper and continued speculative interest pushed the market to
a seven-year high. In March, industrial metals generated minor losses. Precious
metals contributed profits.

Agricultural commodities posted gains for the quarter. Small gains were posted
in January as the USDA cut its forecast for both soybean and corn supplies which
sent prices surging for each. In February, grains markets extended their
long-term rally, with corn and soybeans being pushed to seven and 15-year highs
on strong demand and low stockpiles. Grain markets continued to extend their
long-term rally, with corn, soybeans, and soymeal being pushed higher on strong
demand from Asia and lower estimate of supply from South America in March.

The currency sector posted net gains for the quarter despite losses in March.
Currency trading was volatile in January, but gains were experienced as the
Partnership benefited in the early part of the month from the U.S. dollar's
continued slide. These gains were cut short when European Central Bank officials
started to issue strong rhetoric designed to slow the appreciation of the Euro.
Gains were posted in February despite the volatility in the market. The U.S.
dollar was stagnate after the G-7 Finance Ministers meeting, but the Partnership
was able to extract positive returns from long Australian dollar and British
pound positions. Japanese yen and Swiss franc exposure detracted from
performance. In March, the currency sector posted a loss under difficult trading
conditions. All of the political events during the month and rumors of the Bank
of Japan's intervention policies created significant uncertainty in the markets.
The U.S. dollar strength turned around toward the end of the month and a large
drop at the end of the month's close saw the U.S. dollar fall to four year lows
against the Japanese yen.

The energy sector posted gains for the quarter. In January, the energy sector
was profitable, as temperatures remained below normal in the northeastern and
midwestern United States. OPEC output limitations and a weakening U.S. dollar
also contributed to January's rise in the energy prices. In February, crude oil
had a sharp rally early in the month and gradually sold off, as the markets
became complacent about the OPEC meeting. After the OPEC decision to cut
production by 1.5 million barrels per day on February 10, the market resumed its
upward trend. In March, the energy sector posted a small loss under extremely
volatile market conditions. The crude oil market had very choppy performance
during the month, as did the heating oil market.

7

Stock indices posted gains for the quarter as well. The main drivers to
performance early in the quarter were the Xetra DAX, the S&P 500 and the Taiwan
Stock Indices. In March, stock indices posted a loss. The Partnership's long
bias to various global equity indices was changed during March to hold more
short and neutral positions. Long Nikkei profits were overcome by losses in long
exposure to European equities, which later flipped to short positions by
month-end.

Gains were experienced in the interest rate sector despite losses in January and
March. Early in the quarter, profits were generated from various positions at
the short end of the yield curve in Canada and Europe, while losses were posted
at longer points in the curve in both the United States and Europe. In February,
gains were posted as the Partnership's interest rate exposure remains in the
lower end of its historical range. In March, long exposure to most of the major
global yield curves proved to generate positive results. German Bunds posted
gains, while short U.S. ten-year bonds hurt performance in the beginning of the
month.

April 1, 2004 to June 30, 2004

The Partnership experienced slight gain in the energy sector for the second
quarter. All other sectors experienced losses.

The energy sector was the only profitable sector for the quarter. Crude oil
rallied more than 4% in April, while natural gas exhibited heightened
volatility. The price of crude oil continued to climb throughout the month of
May. The cost of light sweet crude breached $40 per barrel, as global demand
accelerated and lingering political uncertainties in the Middle East added a
considerable risk premium to the market. The quarter ended with the sector
posting a loss as markets sold-off early in the month when OPEC agreed to
provide more supply, while U.S. inventory levels showed a gradual increase.

The stock index sector posted a slight loss for the Partnership. In April, the
concern for higher interest rates sent equities falling during the latter half
of the month. The month ended with loss in global equities outweighing gains
experienced in the U.S. markets. Stock indices continued to post losses in May.
Equities weakened worldwide due to concerns about imminent rate increases in the
United States. The Japanese Nikkei index had a particularly difficult month as
investors focused on Japan's oil dependence in the face of record high crude
prices. The month of June brought some profits. Volatility in the sector was
very low however, there was not much of a clear direction in the markets.
Exposure to the U.S. and European markets outweighed losses in other markets.
Equities continue to be mainly traded on a shorter-term basis.

The agricultural commodity sector posted a loss for the Partnership. However,
short positions across a number of agricultural contracts resulted in a gain for
the Partnership in April. Most markets reversed their upward trend based on
concerns that demand from China would slow. Long exposure to the soybean complex
also mitigated losses overall. There were losses posted during the month of May,
which outweighed profits from both April and June. Soybean prices fell sharply
as ideal weather conditions persisted in the Midwest and exports failed to
materialize. Demand from China and diminishing supplies had kept prices high for
quite some time. Losses on positions in the soybean complex overshadowed gains
the Partnership made in its livestock positions. The month of June posted a
slight gain for this sector. Cotton prices dropped 14% during the month allowing
short exposures to generate profits. Corn also posted a significant decline
during the month causing the portfolio to adjust positions from long to short.
Corn experienced a dramatic improvement in estimates of acreage and yields, due
to high prices and positive weather conditions.

8

The interest rate sector produced losses for the Partnership. During the
beginning of the quarter, the market focused on growing expectation of higher
U.S. interest rates and began to prepare for the initial rate increase by the
U.S. Federal Reserve. The quarter ended with bonds continuing to be fairly range
bound pending the release of economic data and action by the U.S. Federal
Reserve during the month. The effect of a rising interest rate market created
positive results on short exposures in Europe but was outweighed by losses due
to long exposures in Canada. Gains in Japanese Government Bond trading were
outweighed by losses in trading U.S. fixed income and in trading the European
yield curve in June.

The metal sector posted losses for the Partnership. April was a highly volatile
month. In May, the markets were directionless and remained range bound. Long
exposure to aluminum was the main cause for losses ending the month with net
short exposure to other industrial metals. June also posted a loss from
industrial metals as zinc fell by approximately 11% and copper lost 3%. Metals
exposure continues to be small within the portfolio with a net long bias.

The currency sector produced losses for the Partnership. In April, the impact of
the currency income market coupled with pronouncements from the Chinese central
bank concerning its desire for lenders to tighten their credit standards weighed
heavily on commodities. The currency sector also posted a small loss in May due
to U.S. dollar weakness. The quarter ended with a loss posted in June. Many
currency markets continued to be range bound waiting for the Federal Reserve's
decision on short term interest rates. Most major currencies displayed no clear
direction, but exhibited high intra day volatility. Losses were incurred from
positions in the Australian dollar, Swiss franc, British pound and other major
markets. The portfolio has reestablished its' short bias to the U.S. dollar
versus other major markets.

July 1, 2004 to September 30, 2004

The Partnership posted gains in the agricultural commodities, energy, and
interest rate sectors and losses in the stock indices, currency, and metals
sectors.

The energy sector was the most profitable sector for the quarter. In July, the
energy sector posted a gain from the recent rally in oil. In August, crude oil
reached a 21-year high mid-month. Short exposure in natural gas also contributed
to performance. The portfolio continues to have a long bias to energy with the
exclusion of natural gas. The energy sector posted a strong gain for the month
of September as most of the market rallied. Many reasons were behind these
rallies, such as hurricanes in the U.S. southeast, higher demand from overseas
and ongoing geopolitical tensions. The portfolio continues to have a long bias
to the sector.

Gains were also posted in the interest rate sector even though losses were
posted in July and September, as the Partnership was largely short in the
sector. In July, U.S. bond prices rallied for a second month on weaker
employment data, despite comments from Alan Greenspan, Federal Reserve Chairman,
that U.S. economic growth is likely to remain healthy. In August, the sector
posted gains as U.S. bond prices rallied early following the release of
lackluster payroll data. Bond prices in Europe also advanced. The interest rate
sector was the main detractor from performance for the month of September. U.S.
Treasury markets reacted to the employment data with a violent sell off at the
beginning of the month, which caused the Advisors to reduce the portfolio's long
exposure or change to a net short bias. Softer economic data eventually pushed
longer-term maturities higher by the end of the month. Gains in trading Japanese
bonds were outweighed by losses in the U.S. and European fixed income trading.
The portfolio ended the month with a small net long bias to the U.S. yield curve
generating losses.

The agricultural commodities sector also posted gains for the quarter. In July,
gains were posted as cotton prices dropped allowing short exposures to generate
profits. In August, the sector posted a loss as supply

9

estimates pushed up prices, hurting short positions. The U.S. Department of
Agriculture gave low crop estimates based on forecasts of an early freeze and
slow crop development. In September, many grain markets resumed their downward
trend, particularly soybeans, corn and cotton after rallying in August. This
sell off was based on recent fundamental data. The portfolio continues to be
short grains and the bean complex with a small long bias to the livestock
complex.

Trading in stock indices was unprofitable despite small gain posted in
September. Major global equity markets recorded sharp declines in July with a
lack of volatility. A short bias to U.S. equity early in the month allowed for
some initial performance, but a long bias to most international equities
detracted from performance. Gains in the U.S. were outweighed by losses in Asian
and European equities in August. On average, global equity indices experienced a
small rally during September. European equities outperformed the U.S. and Asian
markets. Gains in Europe and Asia outweighed losses in exposure to U.S.
equities.

The currency sector posted a loss for the quarter. In July, a late month rally
in the U.S. dollar weighed on returns, as the Advisors were net short the
greenback. Gains made in the Euro were offset by losses in the Australian
dollar, British pound and Japanese yen. In August, the currency sector was the
main detractor from performance. Uncertainty about the economic environment
resulted in random price moves and a lack of any sustainable trends in the
sector. The month began with the U.S. dollar weakening on soft economic data,
but it later went on to rally. In September, currency markets remained range
bound versus the U.S. dollar throughout the month. The positive non-farm payroll
data initially caused an appreciation of the U.S. dollar, which later faded
toward the end of the month, as the announcement of China joining the G-8
meeting re-ignited a U.S. dollar weakening. Losses in Japanese yen, Swiss franc
and British pound outweighed gains in commodity based currencies, particularly
the Canadian dollar. The portfolio continues to be net short the U.S. dollar.

The metals sector posted the largest losses for the quarter. In July, industrial
metals slightly detracted from performance, as gains in long copper exposure
could not offset losses in nickel and aluminum. In August, industrial metals
slightly detracted from performance as gains in short zinc exposure could not
offset losses in long base metals. In September, industrial metals, in
particular copper, added to performance, while exposure to precious metals
slightly detracted from performance. Copper rallied based on increasing demand
from China and tight supply conditions. Metals' exposure continues to be
slightly underweight within the portfolio with a net long bias.

JANUARY 1, 2003 TO JUNE 30, 2003

January 1, 2003 to March 31, 2003

The Partnership experienced gains in the currency, energy and interest rate and
losses in the stock index, agricultural commodity and metals sectors. Overall,
for the quarter, the Partnership experienced gains.

The currency forward and futures trading had the most significant gains for the
quarter. The weakening U.S. dollar was continuing to decline as it has for over
a year and the Partnership was well positioned to capitalize on its U.S. dollar
positions against other currencies. The largest gains versus the U.S. dollar
during January and February were with the Australian dollar and Canadian dollar.
In March, on hopes that the war with Iraq would be short, the U.S. dollar
strengthened and returned some of the profits earned early in the year.

Energy was a profitable sector for the quarter. With the continuation of the
strike in Venezuela, the tensions with Iraq and the cold winter, long positions
in oil and natural gas were profitable in the

10

beginning of the year. In February, the best performing month, natural gas
prices rose nearly 40% in a single day citing expected severely cold weather and
supply shortages. The Partnership profited from this event but such volatility
caused many of the Advisors to reduce their long positions. This helped the
Partnership retain profits as prices declined in crude oil and natural gas in
March.

Interest rate futures were also profitable for the quarter. February had
significant gains offsetting losses in both January and March. U.S. and European
bonds rallied amid concerns of a global economic slowdown benefiting the
Partnership's long exposures. Selective long/short rate exposure globally was
the main driver to gains generated in the sector. The global fixed income
markets continued their upward climb until mid-March when expectations of a
short conflict in Iraq triggered the liquidation of many fixed income
investments hurting long exposures.

Trading in stock indices posted slight losses for the quarter. The market was
choppy throughout the quarter making trading difficult. Most indices recorded
three-month lows in January causing Advisors to flip positions and shorts were
initiated in most major markets. During the rest of the quarter, choppy markets
caused short positions to be covered to protect against the risk of significant
losses.

Trading in agricultural commodities posted losses for the quarter. The
Partnership held positions in sugar, livestock and the soybean complex.
Livestock markets were off in February as Russia imposed an import limit to help
its domestic production. Sugar was to blame for losses in March as prices
reversed and hit a two-month low.

The metals sector had losses for the quarter. Gold drove profits in January as
it continued its run up. The general perception of risks in the financial
markets and the geopolitical situation unfolding was the main driver for the
gold market in January. The Partnership sustained losses in February and March
as the long bias in precious metals hurt the portfolio when gold reversed its
rising trend in February and continued to decline. Gold's appeal as a safe
investment diminished.

April 1, 2003 to June 30, 2003

The Partnership realized gains in the currency and interest rate sectors and
realized losses in the energy, stock indices, metals and the agricultural
commodities sectors. Overall, the Partnership recognized gains for the quarter.

The currency sector was the strongest performer for the Partnership. The U.S.
dollar depreciated against most major currencies throughout most of the second
quarter. The currency markets judged the developments in the Middle East as
negative for the U.S. economy and trade, and the U.S. dollar sold off against
most major currencies. The U.S. dollar continued to weaken significantly during
the month of May when U.S. Treasury Secretary Snow indicated he was comfortable
with current declines and that a cheaper U.S. dollar would increase exports. The
U.S. dollar strengthened against most major currencies late June, reversing some
earlier profits.

The interest rate sector generated strong gains during the second quarter
producing significant profits in May. After a mixed start in April, the bond
market rally continued through May despite the stock market recovery. The U.S.,
European and Japanese bond markets reached new highs in June, as investors were
convinced the Federal Reserve would cut short-term rates by 50 basis points.
U.S. fixed income markets were disappointed with the size of the rate cut by the
Federal Reserve and by the realization that further rate cuts would remain far
in the future. Economic news out of the Eurozone confirmed economic stagnation.

11

The energy markets produced a small loss for the quarter. In April and May, the
markets were dominated by the developments in the Middle East, especially OPEC's
reaction to the developments in Iraq. Production in Iraq was not being resumed
as initially estimated even though the destruction of their oilfields was
smaller than expected. The SARS epidemic was expected to reduce the demand for
jet fuel, which the markets extrapolated to affect crude oil prices. Natural gas
was very volatile during June.

Trading in stock indices posted losses for the second quarter. The U.S. and
European markets outperformed the Asian/Pacific markets during in May. Short
positions in Europe and the U.S. were covered as the equity markets staged a
postwar recovery, causing exposures to flip from long to flat after losses were
realized. Gains were generated in trading the DAX and various Pacific-rim
indices during June.

The metals sector generated losses this quarter. Short positions in base metals
and precious metals contributed to losses in the sector. Gold generated losses
in June reacting to a U.S. dollar sell off.

Trading in agricultural commodities produced the largest loss for the second
quarter. The sector posted gains in April, mainly from soybeans, which rallied
due to revisions in crop estimates and weather overseas. Supply and demand drove
the livestock market to slightly higher volatility levels in June, creating
losses that offset earlier gains in the quarter. Losses were posted in the
livestock, oil seed and grains.

July 1, 2003 to September 30, 2003

The Partnership was profitable in the metals and stock indices sectors and
unprofitable in the energy, agricultural commodities, interest rates and
currency sectors. Overall, the Partnership incurred losses for the quarter.

Trading in the metals sector was profitable for the quarter. Profits in the
industrial complex outweighed losses in the precious metal sector for July.
Copper and other industrial metals rallied on technical buying and stronger
demand as economies showed stronger growth prospects. Gold appreciated by 2.50%
and nickel appreciated by 8.02% in September.

Stock index trading was also profitable for the Partnership. Stock indices
posted gains in July, although equities were fairly quiet for the month. The
Japanese Nikkei was the star performer for August as it gained over 8% on strong
economic numbers. The sector incurred a small loss in September as small gains
in the Japanese Nikkei and the CAC 40 were outweighed by losses in other global
indices.

The energy sector posted losses for the quarter. The sector was volatile
throughout the quarter mainly due to the uncertainty in supply and estimates of
demand that were projected to increase. Many of the systematic managers had
difficulties trading crude oil as the price dropped from a high of $31.40 on
September 3rd to a low of $26.65 on September 19th. This caused many Advisors to
flip from long to short positions. The market later rallied back up to over $29
per barrel by month end as OPEC's announced production rate cut backs due on
November 1st.

Trading in the agricultural commodities sector was unprofitable for the
Partnership. In August, grain markets exhibited a large price move, as soybeans
and corn rallied 16% and 14%, respectively. Weather drove prices up, due to very
little rain over the course of the month in the Midwest, where the majority of
the U.S. crops grow. Trend-followers covered their short exposure to these
markets and by mid August went long, managing to recoup some of the losses.

12

The interest rate sector was unprofitable for the quarter. The U.S. bond market
suffered heavy losses in July after the U.S. government announced its intentions
to borrow a record amount to finance the huge deficit. By September, the global
economic rebound was the primary focus of the market. The U.S. continued to
produce mixed economic data, which led some investors to question the strength
of the recovery. The G-7 summit resulted in a call for more flexible exchange
rates around the world. This announcement signaled to the world marketplace that
a weaker U.S. dollar is important to strengthen the global economy. Interest
rates moved up slightly, as the central banks worldwide continued to reiterate
that low interest rates are necessary to sustain an economic recovery.

The currency sector incurred the greatest losses for the Partnership for the
third quarter. The U.S. dollar appreciated against most major currencies in July
and August causing losses on position against the U.S. dollar. The G-7 summit
directed the market to the idea that a weak U.S. dollar is important to global
trade balance. Foreign currencies against the U.S. dollar appreciated such as
the Japanese yen, Australian dollar, and Canadian dollar.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable

Item 4. Controls and Procedures

Merrill Lynch Investment Managers LLC, the General Partner of ML Global Horizons
L.P., with the participation of the General Partner's Chief Principal Officer
and the Chief Financial Officer, has evaluated the effectiveness of the design
and operation of its disclosure controls and procedures with respect to the
Partnership within 90 days of the filing date of this quarterly report, and,
based on this evaluation, has concluded that these disclosure controls and
procedures are effective. Additionally, there were no significant changes in the
Partnership's internal controls or in other factors that could significantly
affect these controls subsequent to the date of their evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings

There are no pending proceedings to which the Partnership or MLIM LLC
is a party.

Item 2. Changes in Securities and Use of Proceeds

(a) None.
(b) None.
(c) As of February 1, 2004, the Partnership privately offered two
new classes of units of limited partnership interest, class A
and I. The continuing units were renamed class F. As of
February 1, 2004, brokerage commissions were reduced to 7.00%
per year. Class A and class I incur brokerage commissions of
7.00% and 4.00% per year, respectively
(d) None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Submission of Matters to a Vote of Security Holders

None.

Item 5. Other Information

None.

Item 6. Exhibits and Reports on Form 8-K

(a) EXHIBITS

There are no exhibits required to be filed as part of this report.

(b) REPORTS ON FORM 8-K

There were no reports on Form 8-K filed during the first nine months
of fiscal 2004.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

ML GLOBAL HORIZONS L.P.

By: MERRILL LYNCH INVESTMENT
MANAGERS LLC
General Partner

Date: November 15, 2004 By /s/ VINAY MENDIRATTA
--------------------
Vinay Mendiratta
Managing Director and Chief Operating Officer
-Alternative Strategies and Quantitative
Advisers Divisions
(Principal Executive Officer)

Date: November 15, 2004 By /s/ PATRICK HAYWARD
-------------------
Patrick Hayward
Chief Financial Officer
(Principal Financial and Accounting
Officer)

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