BlackRock Global Horizons I L.P. - FORM 10-Q

Attached files

file	filename
EX-31.02 - EX-31.02 - BlackRock Global Horizons I L.P.	a10-6239_1ex31d02.htm
EX-32.02 - EX-32.02 - BlackRock Global Horizons I L.P.	a10-6239_1ex32d02.htm
EX-32.01 - EX-32.01 - BlackRock Global Horizons I L.P.	a10-6239_1ex32d01.htm
EX-31.01 - EX-31.01 - BlackRock Global Horizons I L.P.	a10-6239_1ex31d01.htm

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 March 31, 2010

OR

o	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

BLACKROCK GLOBAL HORIZONS I 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 BlackRock Investment Management LLC

40 East 52nd Street

New York, New York 10022

(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 o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer (as defined in Rule 12b-2 of the Exchange Act). See definition of “accelerated and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one)

Large Accelerated Filer o		Accelerated filer o

Non-Accelerated filer x		Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

BLACKROCK GLOBAL HORIZONS I L.P.

QUARTERLY REPORT FOR March 31, 2010 ON FORM 10-Q

Table of Contents

		PAGE

PART I

Item 1.	Financial Statements	2

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	24

Item 4T.	Controls and Procedures	25

PART II

Item 1.	Legal Proceedings	26

Item 1A.	Risk Factors	26

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26

Item 3.	Defaults Upon Senior Securities	28

Item 4.	Reserved	28

Item 5.	Other Information	28

Item 6.	Exhibits	28

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

BLACKROCK GLOBAL HORIZONS I L.P.

(A DELAWARE LIMITED PARTNERSHIP)

STATEMENTS OF FINANCIAL CONDITION

(unaudited)

	March 31,		December 31,
	2010		2009

ASSETS:
Cash and cash equivalents	$	238,367,509	$	218,690,094
Equity in commodity futures trading accounts:
Cash (restricted cash $18,517,086 and $21,761,607)	60,896,457		64,904,058
Net unrealized profit on open contracts	5,439,411		886,156
Accrued interest and other assets	211,665		25,948

TOTAL ASSETS	$	304,915,042	$	284,506,256

LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES:
Redemptions payable	$	2,181,168	$	5,342,237
Profit Shares payable	221,254		498,174
Distribution fees payable	722,016		703,082
Trading Advisors’ management fees payable	352,837		343,841
Sponsor fees payable	303,951		295,234
Administrator fees payable	150,730		166,599
Professional fees payable	276,726		425,908
Net unrealized loss on open contracts	221,435		906,015
Other fees payable	101,786		62,248

Total liabilities	4,531,903		8,743,338

PARTNERS’ CAPITAL:
General Partner (2,488,101 and 2,203,255 Units)	3,130,174		2,846,697
Limited Partners (252,395,759 and 226,947,615 Units)	297,252,965		272,916,221

Total partners’ capital	300,383,139		275,762,918

TOTAL LIABILITIES AND PARTNERS’ CAPITAL	$	304,915,042	$	284,506,256

NET ASSET VALUE PER UNIT (Note 2)

See notes to financial statements.

BLACKROCK GLOBAL HORIZONS I L.P.

(A DELAWARE LIMITED PARTNERSHIP)

STATEMENTS OF OPERATIONS

(unaudited)

	For the three			For the three
	months ended			months ended
	March 31,			March 31,
	2010			2009
TRADING PROFITS (LOSSES):

Realized	$	(1,896,627	)	$	(520,459	)
Change in unrealized	5,237,835			(3,793,334		)
Brokerage commissions and clearing costs	(528,627		)	(355,450		)

Total trading profits (losses)	2,812,581			(4,669,243		)

INVESTMENT INCOME:
Interest	66,343			420,113

EXPENSES:
Distribution fees	2,117,497			1,683,101
Trading Advisors’ management fees	1,038,228			790,820
Sponsor fees	888,028			704,384
Profit Shares	254,927			471,505
Administrator fees	226,000			179,000
Professional fees	196,259			110,592
Other	154,000			69,800
Total expenses before waiver	4,874,939			4,009,202
Sponsor fee waiver	—			—
Total expenses	4,874,939			4,009,202

NET INVESTMENT LOSS	(4,808,596		)	(3,589,089		)

NET LOSS	$	(1,996,015	)	$	(8,258,332	)

NET INCOME (LOSS) PER UNIT:(1)

Weighted average number of General Partner and Limited Partner Units outstanding
Series A	219,302,384			134,318,518
Series F	105,082			117,040
Series G	30,194,766			34,737,080
Series I	1,278,174			490,288

Net income (loss) per weighted average General Partner and Limited Partner Unit
Series A	$	(0.0069	)	$	(0.0418	)
Series F	$	(2.10	)	$	(9.83	)
Series G	$	(0.0089	)	$	(0.0425	)
Series I	$	0.0102		$	(0.0291	)

See notes to financial statements.

(1) The weighted average number of Units outstanding is computed for purposes of disclosing net income (loss) per weighted average Unit. The weighted average number of Units outstanding for the three-month periods ended March 31, 2010 and 2009 equals the Units outstanding as of such date, adjusted proportionately for Units sold and redeemed based on the respective length of time each was outstanding during the period.

BLACKROCK GLOBAL HORIZONS I L.P.

(A DELAWARE LIMITED PARTNERSHIP)

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL

FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009

(unaudited)

			General			Limited
	Units		Partner			Partners			Total

PARTNERS’ CAPITAL, December 31, 2008	164,471,111		$	3,098,146		$	224,987,780		$	228,085,926

Additions	10,150,531		—			11,940,996			11,940,996

Net loss	—		(107,952		)	(8,150,380		)	(8,258,332		)

Redemptions	(7,022,880	)	—			(9,487,039		)	(9,487,039		)

PARTNERS’ CAPITAL, March 31, 2009	167,598,762		$	2,990,194		$	219,291,357		$	222,281,551

PARTNERS’ CAPITAL, December 31, 2009	229,150,870		$	2,846,697		$	272,916,221		275,762,918

Additions	38,230,314		300,000			40,409,627			40,709,627

Net loss	—		(16,523		)	(1,979,492		)	(1,996,015		)

Redemptions	(12,497,324	)	—			(14,093,391		)	(14,093,391		)

PARTNERS’ CAPITAL, March 31, 2010	254,883,860		$	3,130,174		$	297,252,965		$	300,383,139

See notes to financial statements.

BLACKROCK GLOBAL HORIZONS I L.P.

(A DELAWARE LIMITED PARTNERSHIP)

FINANCIAL DATA HIGHLIGHTS

FOR THE THREE MONTHS ENDED MARCH 31, 2010

(unaudited)

The following per Unit data and ratios have been derived from information provided in the financial statements. An individual Partner’s results may vary from these ratios due to timing of income and expenses and capital transactions.

	Series A			Series F			Series G			Series I
Per Unit Operating Performance:

Net asset value, beginning of period	$	1.0775		$	259.29		$	1.1230		$	1.2255

Realized trading loss	(0.0071		)	(1.69		)	(0.0073		)	(0.0080		)
Change in unrealized trading profits	0.0181			4.33			0.0188			0.0206
Interest	0.0002			0.06			0.0002			0.0003
Expenses	(0.0195		)	(4.71		)	(0.0204		)	(0.0142		)

Net asset value, end of period	$	1.0692		$	257.28		$	1.1143		$	1.2242

Total Return:

Total return (before Profit Shares)	-0.68		%	-0.68		%	-0.68		%	0.10		%
Profit Shares	-0.08		%	-0.09		%	-0.09		%	-0.21		%
Total return	-0.77		%	-0.78		%	-0.77		%	-0.11		%

Ratios to Average Net Assets:(1) (2)

Expenses (before Profit Shares)	7.02		%	7.01		%	7.01		%	3.90		%
Profit Shares	0.08		%	0.09		%	0.09		%	0.26		%
Expenses	7.10		%	7.10		%	7.10		%	4.16		%

Net investment loss	-7.01		%	-7.01		%	-7.01		%	-4.07		%

(1) Included in the ratios of expenses to average net assets are brokerage commissions and clearing costs which are presented in Trading Profits (Losses) on the Statement of Operations.

(2) The expenses (before Profit Shares) and the interest portion of net investment loss for the net investment loss ratios have been annualized.

See notes to financial statements.

BLACKROCK GLOBAL HORIZONS I L.P.

(A DELAWARE LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS

(unaudited)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The interim financial information at March 31, 2010 and for the periods ended March 31, 2010 and 2009 is unaudited. However, in the opinion of management, the interim financial information includes all normal recurring adjustments necessary for the fair presentation of the operating results of BlackRock Global Horizons I L.P. (the “Partnership”) for the interim periods presented. 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 accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been omitted. These financial statements should 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, (the “SEC”) for the year ended December 31, 2009.

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

BlackRock Investment Management, LLC (the “General Partner” or “BRIM”), a wholly owned subsidiary of BlackRock, Inc. (“BlackRock”) is the general partner of the Partnership.

The Partnership’s assets will be held in cash at PFPC Trust Company (“PFPC Trust”), an affiliate of the General Partner and in cash and customer segregated accounts at Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”), an affiliate of the General Partner, Newedge USA, LLC (“NUSA”), J.P. Morgan Inc. (“JPMFI”), UBS AG (“UBS”) and any other clearing brokers or derivatives counterparty that may be utilized by the Partnership in the future (the “Clearing Brokers”) or allocated to one or more Portfolio Funds for which custodians and clearing brokers are selected by the independent professional advisors of such Portfolio Funds or managed accounts (the “Trading Advisors”).

Valuation

The Partnership’s policy is to fair value its financial instruments at market value. The Partnership’s commodities futures contracts traded on exchanges are valued at their close price. Foreign currency exchange contracts are valued at the mid between the bid and ask prices and are determined as of the close of business on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. Exchange-traded options are valued at the mean between the last bid and ask prices at the close of the options market in which the options trade. An exchange-traded option for which there is no mean price is valued at the prior day’s close price, unless it is determined that the prior day’s price no longer reflects the fair value of the option. Over-the-counter (“OTC”) options and swaptions are valued by single broker quotes which use mathematical model which incorporates a number of market data factors, such as the trades and prices of the underlying instruments.

Net Unrealized Profit (Loss) on Open Contracts

The Partnership, in its normal course of business, enters into various derivatives contracts with MLPF&S, NUSA, JPMFI, and UBS each acting as the Partnership’s clearing brokers or derivatives counterparty. Pursuant to the brokerage agreements with MLPF&S, NUSA, and JPMFI (which include netting arrangements with each broker), to the extent that such trading results in receivables from and payables to MLPF&S, NUSA, and JPMFI, these receivables and payables are offset and reported as a net receivable or payable with each broker. Net receivables are included in the Statements of Financial Condition under Equity in commodity futures trading accounts in net unrealized profit on open contracts and net payables are included under Liabilities in net unrealized loss on open contracts.

Pursuant to the UBS agreement (which includes netting arrangements for same transactions and may be elected for multiple transactions), to the extent that such trading results in receivables from and payables to UBS, these receivables and payables are offset and reported as a net receivable or payable. Net receivables are included in the Statements of Financial Condition under Equity in commodity futures trading accounts in net unrealized profit on open contracts and net payables are included under Liabilities in net unrealized loss on open contracts.

Commodity futures, forwards and options contracts transactions are recorded on trade date and the receivables and payables represent the difference between the original contract value and the market value. The change in unrealized profit (loss) on open contracts from one period to the next is reflected in Change in unrealized in the Statements of Operations.

Income Taxes

No provision for income taxes has been made in these financial statements as each Partner is individually responsible for reporting income or loss based on such Partner’s respective share of the Partnership’s income and expenses as reported for income tax purposes.

Distributions

The Limited Partners are entitled to receive, equally per Unit, any distributions which may be made by the Partnership. No such distributions have been declared for the three-month periods ended March 31, 2010 and 2009.

2. PARTNERS’ CAPITAL

At March 31, 2010 and December 31, 2009, the Net Asset Values of the different series of Units were:

March 31, 2010	Net Asset Value		Number of Units	Net Asset Value per Unit

Series A	$	239,346,490	223,856,882	$	1.0692
Series F	26,384,512		102,550	$	257.28
Series G	32,492,354		29,160,147	$	1.1143
Series I	2,159,783		1,764,281	$	1.2242
Total partners’ capital	$	300,383,139	254,883,860

December 31, 2009	Net Asset Value		Number of Units	Net Asset Value per Unit

Series A	$	213,153,124	197,831,350	$	1.0775
Series F	27,465,985		105,927	$	259.29
Series G	34,044,148		30,316,276	$	1.1230
Series I	1,099,661		897,317	$	1.2255
	$	275,762,918	229,150,870

3. FAIR VALUE DISCLOSURES

The Partnership records derivatives contracts held in commodities futures trading accounts and cash equivalents at fair value in accordance with Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 defines fair value as the price that the Partnership would receive upon selling an investment or pay to transfer a liability in an orderly transaction to a market participant in the principal or most advantageous market for the investment. ASC 820 emphasizes that valuation techniques maximize the use of observable market inputs and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability, including assumptions about risk to the extent the asset or liability is not traded on an exchange or an active market. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the Partnership. Unobservable inputs are inputs that reflect the General Partner assumptions about what information market participants would use to price an asset or liability developed based on the best information available under the circumstances.

ASC 820 establishes a hierarchy that classifies these inputs into the three broad levels listed below:

· Level 1 — Price quotations (unadjusted) in active markets/exchanges for identical instruments.

· Level 2 — Other than quoted prices included within Level 1 that are observable for substantially the full term of the asset or liability, either directly or indirectly. Level 2 includes quoted prices (unadjusted) for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; and inputs other than quoted prices that are observable, such as those used in models or other valuation methodologies.

· Level 3 — Primarily inputs and significant assumptions that are unobservable in the market place. Level 3 assets include investments for which there is little, if any, market activity. These inputs require significant judgment or estimation by the General Partner of the Partnership.

The following table summarizes the valuation of the Partnership’s investments by the above ASC 820 fair value hierarchy levels as of March 31, 2010 and December 31, 2009.

			Fair Value at Reporting Date Using
Description	3/31/2010		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Cash Equivalents	$	238,367,509	$	238,367,509	$	—
Futures	3,588,084		3,588,084		—
Forwards	1,580,842		—		1,580,842
Options	49,050		51,704		(2,654		)
	$	243,585,485	$	242,007,297	$	1,578,188

Description	12/31/2009
Cash Equivalents	$	218,690,094		$	218,690,094	$	—
Futures	1,800,573			1,800,573		—
Forwards	(1,785,140		)	—		(1,785,140		)
Options	(35,292		)	—		(35,292		)
	$	218,670,235		$	220,490,667	$	(1,820,432	)

4. DERIVATIVE CONTRACTS AND OFF-BALANCE SHEET RISK

The Partnership trades in the international futures and forward markets with the objective of achieving, through speculative trading, substantial capital appreciation over time. The Partnership’s assets are allocated and reallocated by the General Partner to accounts managed by the Trading Advisors applying proprietary strategies in numerous markets.

The Partnership engages in the speculative trading of derivative contracts on interest rates, commodities, currencies, metals, energy, livestock and stock indices. The following were the primary trading risk exposures of such derivative contracts as of at March 31, 2010, organized by market sector:

Agricultural. The Partnership’s primary exposure is to agricultural price movements, which are often directly affected by severe or unexpected weather conditions.

Currencies. Exchange rate risk is a principal market exposure of the Partnership. The Partnership’s currency exposure is to exchange rate fluctuations, primarily fluctuations which disrupt the historical pricing relationships between different currencies and currency pairs. The fluctuations are influenced by interest rate changes as well as political and general economic conditions. The Partnership trades in a large number of currencies, including cross-rates—e.g., positions between two currencies other than the U.S. dollar.

Energy. The Partnership’s primary energy market exposure is to gas and oil price movements, often resulting from political developments in the Middle East and economic conditions worldwide. Energy prices are volatile and substantial profits and losses have been and are expected to continue to be experienced in this market.

Interest rates. Interest rate movements directly affect the price of the sovereign bond futures positions held by the Partnership and indirectly the value of its stock index and currency positions. Interest rate movements in one country as well as relative interest rate movements between countries may materially impact the Partnership’s profitability. The Partnership’s primary interest rate exposure is to interest rate fluctuations in the United States and other major industrialized, or Group of Seven countries (Canada, France, Germany, Italy, Japan, United Kingdom and United States, collectively, “G-7”). However, the Partnership also may take positions in futures contracts on the government debt of other nations. The General Partner anticipates that G-7 interest rates, both long-term and short-term, will remain the primary market exposure of the Partnership for the foreseeable future.

Metals. The Partnership’s metals market exposure is to fluctuations in the price of aluminum, copper, gold, lead, nickel, silver, tin and zinc.

Stock Indices. The Partnership’s equity exposure, through stock index futures, is to equity price risk in the G-7 countries, as well as other countries.

The Partnership, through the trading activities of the Trading Advisors, also engages in the speculative trading of forward currency contracts. Substantially all of the Partnership’s off-exchange trading takes place in the highly liquid, institutional spot and forward foreign exchange markets (the “FX Markets”) where there are no direct execution costs. Instead, the participant banks and dealers in the FX Markets take a “spread” between the prices at which they are prepared to buy and sell a particular currency, and such spreads are built into the pricing of the spot or forward contracts traded with the Partnership. In its exchange of futures for physical (“EFP”) trading, the Partnership acquires cash currency positions through banks and dealers. The Partnership pays a spread when it exchanges these positions for futures. This spread reflects, in part, the different settlement dates of the cash and the futures contracts, as well as prevailing interest rates, but also includes a pricing spread in favor of the banks and dealers, which may include a Merrill Lynch entity.

As both a buyer and seller of options, the Partnership pays or receives a premium at the outset and then bears the risk of unfavorable changes in the price of the contract underlying the option. Written options expose the Partnership to potentially unlimited liability; for purchased options the risk of loss is limited to the premiums paid. Certain written put options permit cash settlement and do not require the option holder to own the reference asset. The Partnership does not consider these contracts to be guarantees as described in ASC 460 Guarantees No. 45, “Guarantor’s Accounting and Disclosure Requirements for Guarantees.”

The Partnership may purchase and write (sell) both exchange listed and over-the-counter, options on commodities or financial instruments. An option is a contract allowing, but not requiring, its holder to buy (call) or sell (put) a specific or standard commodity or financial instrument at a specified price during a specified time period. The option premium is the total price paid or received for the option contract. When the Partnership writes an option, the premium received is recorded as a liability in the Statements of Financial Condition and marked to market daily. When the Partnership purchases an option, the premium paid is recorded as an asset in the Statements of Financial Condition and marked to market daily. Realized gains (losses) and changes in unrealized gains (losses) on options contracts are included in the Statements of Operations.

The Partnership is exposed to both market risk, the risks arising from changes in the market value of the contracts, and credit risk, the risk of failure by another party to perform according to the terms of a contract.

Market Risk

Derivative contracts 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 contracts or commodities underlying such derivative contracts frequently result in changes in the Partnership’s net unrealized profit (loss) on such derivative contracts 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 contracts held by the Partnership as well as the volatility and liquidity of the markets in which the derivative contracts are traded. Investments in foreign markets may also entail legal and political risks.

BRIM 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 Trading Advisors, calculating the Net Asset Value of the Partnership as of the close of business on each day and reviewing outstanding positions, or reallocating Partnership assets among Trading Advisors (although typically only as of the end of a month) for over-concentrations. While BRIM does not itself intervene in the markets to hedge or diversify the Partnership’s market exposure, BRIM may urge the Trading Advisors to reallocate positions in an attempt to avoid over-concentrations. Except in cases in which it appears that the Trading Advisors have begun to deviate from past practice or trading policies or to be trading erratically, BRIM’s basic risk control procedures consist simply of the ongoing process of Trading Advisor monitoring, with the market risk controls being applied by the Trading 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 amount of required margin and good faith deposits with the brokers usually ranges from 5% to 30% of Net Asset Value. The market value of cash and securities held to satisfy such requirements at March 31, 2010 and December 31, 2009 was $18,517,086 and $21,761,607 respectively, which equals 6.16% and 7.89% of Net Asset Value, respectively.

The Partnership has a substantial portion of its assets on deposit with financial institutions. In the event of a financial institution’s insolvency, recovery of Partnership assets on deposit may be limited to account insurance or other protection afforded such deposits.

For derivatives, risks arise from changes in the market value of the contracts. Theoretically, the Partnership is exposed to a market risk equal to the notional contract value of futures and forward currency contracts purchased and unlimited liability on such contracts sold short.

The Partnership qualifies as an investment company under the provisions of the American Institute of Certified Public Accountants Audit and Accounting Guide for Investment Companies and therefore, all investments including derivatives are stated at fair value in the Statements of Financial Condition, and changes in fair value are included in realized and unrealized trading profits and losses in the Statements of Operations.

Condensed Schedule of Investments

The Partnership trades futures and forward contracts. The level of trading is affected by conditions in those markets. During the period ended March 31 2010, 107,688 contracts were closed. The fair value of the Partnership’s futures and forward contracts by type, defined as Net unrealized profit on open contracts in the Statements of Financial Condition as of March 31, 2010 are as follows:


	Long Positions						Long Positions						Short Positions							Short Positions					Net unrealized
Commodity	Number	Gross Unrealized					Unrealized			Percent of		Commodity	Number		Gross Unrealized					Unrealized			Percent of		profit (loss) on			Percent of
Industry Sector	of Contracts	Gains		Losses			Profit (Loss)			Net Assets		Industry Sector	of Contracts		Gains		Losses			Profit (Loss)			Net Assets		open contracts			Net Assets		Maturity Dates

Futures												Futures
Agriculture	410	$	158,970	$	(364,731	)	$	(205,761	)	-0.07	%	Agriculture	(1,515	)	$	1,181,113	$	(130,518	)	$	1,050,595		0.35	%	$	844,834		0.28	%	April 10-September 10
Currencies	734	559,951		(124,730		)	435,221			0.14	%	Currencies	(443	)	233,407		(197,681		)	35,726			0.01	%	470,947			0.15	%	April 10- December 11
Energy	537	857,246		(111,723		)	745,523			0.25	%	Energy	(244	)	398,030		(270,943		)	127,087			0.04	%	872,610			0.29	%	April 10-September 10
Interest rates	2,432	581,127		(104,036		)	477,091			0.16	%	Interest rates	(968	)	139,273		(183,504		)	(44,231		)	-0.01	%	432,860			0.15	%	June 10-June 12
Metals	164,426	5,403,456		(633,591		)	4,769,865			1.59	%	Metals	(224,242	)	355,381		(5,153,203		)	(4,797,822		)	-1.60	%	(27,957		)	-0.01	%	April 10-February 11
Stock indices	1,856	1,088,153		(107,788		)	980,365			0.33	%	Stock indices	(205	)	34,643		(20,218		)	14,425			0.00	%	994,790			0.33	%	April 10-June 10
Subtotal	170,395	8,648,903		(1,446,599		)	7,202,304			2.40	%	Subtotal	(227,617	)	2,341,847		(5,956,067		)	(3,614,220		)	-1.21	%	3,588,084			1.19	%

Forwards												Forwards
Currencies	109	1,872,089		(870,158		)	1,001,931			0.33	%	Currencies	(112	)	1,860,801		(1,281,890		)	578,911			0.19	%	1,580,842			0.52	%	April 10-June 10
Subtotal	109	1,872,089		(870,158		)	1,001,931			0.33	%	Subtotal	(112	)	1,860,801		(1,281,890		)	578,911			0.19	%	1,580,842			0.52	%

Options												Options
Agriculture	—	—		—			—			0.00	%	Agriculture	(52	)	49,529		(40		)	49,489			0.02	%	49,489			0.02	%	April 10-July10
Currencies	2	6,490		(1,536		)	4,954			0.00	%	Currencies	—		—		—			—			0.00	%	4,954			0.00	%	April 10-June10
Energy	4	—		(1,000		)	(1,000		)	0.00	%	Energy	—		—		—			—			0.00	%	(1,000		)	0.00	%	June 10
Metals	—	—		—			—			0.00	%	Metals	(1,357	)	3,215		(7,608		)	(4,393		)	0.00	%	(4,393		)	0.00	%	April 10
Subtotal	6	6,490		(2,536		)	3,954			0.00	%	Subtotal	(1,409	)	52,744		(7,648		)	45,096			0.02	%	49,050			0.02	%


Total	170,510	$	10,527,482	$	(2,319,293	)	$	8,208,189		2.73	%	Total	(229,138	)	$	4,255,392	$	(7,245,605	)	$	(2,990,213	)	-1.00	%	$	5,217,976		1.73	%

No individual contract’s unrealized profit or loss comprised greater than 5% of the Partnership’s capital as of March 31, 2010.

The Partnership trades futures and forward contracts. The level of trading is affected by conditions in those markets. During the year ended December 31, 2009, 5,539,110 contracts were closed. The fair value of the Partnership’s futures and forward contracts by type, defined as Net unrealized profit (loss) on open contracts in the Statements of Financial Condition as of December 31, 2009 are as follows:


	Long Positions						Long Positions						Short Positions							Short Positions					Net unrealized
Commodity	Number	Gross Unrealized					Unrealized			Percent of		Commodity	Number		Gross Unrealized					Unrealized			Percent of		profit (loss) on			Percent of
Industry Sector	of Contracts	Gains		Losses			Profit (Loss)			Net Assets		Industry Sector	of Contracts		Gains		Losses			Profit (Loss)			Net Assets		open contracts			Net Assets		Maturity Dates

Futures												Futures
Agriculture	1,023	$	982,535	$	(158,124	)	$	824,411		0.30	%	Agriculture	(568	)	$	159,142	$	(223,420	)	$	(64,278	)	-0.02	%	$	760,133		0.28	%	January 10 - May 10
Currencies	569	240,052		(449,588		)	(209,536		)	-0.08	%	Currencies	(463	)	313,343		(90,432		)	222,911			0.08	%	13,375			0.00	%	January 10 - December 10
Energy	225	480,824		(109,534		)	371,290			0.13	%	Energy	(158	)	33,782		(474,913		)	(441,131		)	-0.16	%	(69,841		)	-0.03	%	January 10 - July 10
Interest rates	2,265	250,907		(1,254,976		)	(1,004,069		)	-0.36	%	Interest rates	(1,094	)	595,914		(77,877		)	518,037			0.19	%	(486,032		)	-0.17	%	March 10 - December 10
Metals	219,746	5,843,920		(387,661		)	5,456,259			1.98	%	Metals	(277,223	)	159,323		(4,729,827		)	(4,570,504		)	-1.66	%	885,755			0.32	%	January 10 - December 10
Stock indices	1,636	1,005,269		(215,061		)	790,208			0.29	%	Stock indices	(114	)	28,861		(121,886		)	(93,025		)	-0.03	%	697,183			0.26	%	January 10 - March 10
Subtotal	225,464	8,803,507		(2,574,944		)	6,228,563			2.26	%	Subtotal	(279,620	)	1,290,365		(5,718,355		)	(4,427,990		)	-1.60	%	1,800,573			0.66	%

Forwards												Forwards
Currencies	442	759,515		(1,991,882		)	(1,232,367		)	-0.45	%	Currencies	(481	)	1,527,996		(2,080,769		)	(552,773		)	-0.20	%	(1,785,140		)	-0.65	%	January 10 - July 10
Subtotal	442	759,515		(1,991,882		)	(1,232,367		)	-0.45	%	Subtotal	(481	)	1,527,996		(2,080,769		)	(552,773		)	-0.20	%	(1,785,140		)	-0.65	%

Options												Options
Agriculture	—	—		—			—			0.00	%	Agriculture	(44	)	—		(18,925		)	(18,925		)	-0.01	%	(18,925		)	-0.01	%	January 10 - May 10
Currencies	1	—		(7,377		)	(7,377		)	0.00	%	Currencies	—		—		—			—			0.00	%	(7,377		)	0.00	%	January 10 - July 10
Energy	31	—		(8,990		)	(8,990		)	0.00	%	Energy	—		—		—			—			0.00	%	(8,990		)	0.00	%	January 10 - December 10
Subtotal	32	—		(16,367		)	(16,367		)	0.00	%	Subtotal	(44	)	—		(18,925		)	(18,925		)	-0.01	%	(35,292		)	-0.01	%


Total	225,938	$	9,563,022	$	(4,583,193	)	$	4,979,829		1.81	%	Total	(280,145	)	$	2,818,361	$	(7,818,049	)	$	(4,999,688	)	-1.81	%	$	(19,859	)	0.00	%

No individual contract’s unrealized profit or loss comprised greater than 5% of the Partnership’s capital as of December 31, 2009.

The trading profits (losses) of the Partnership’s derivatives by instrument type, as well as the location of those gains and losses on the Statement of Operations for the three month period ended March 31, 2010 and 2009 are as follows:

March 31, 2010

				Change in Net
Commodity	Realized Profits			Unrealized			Net Trading
Industry Sector	(Losses)			Profits (Losses)			Profits (Losses)

Futures
Agriculture	$	(1,220,922	)	$	84,701		$	(1,136,221	)
Currencies	(524		)	457,572			457,048
Energy	(2,231,319		)	942,451			(1,288,868		)
Interest rates	784,015			918,892			1,702,907
Metals	876,343			(913,712		)	(37,369		)
Stock indices	1,334,398			297,607			1,632,005
Subtotal	(458,009		)	1,787,511			1,329,502

Forwards
Currencies	(1,333,320		)	3,365,982			2,032,662
Subtotal	(1,333,320		)	3,365,982			2,032,662

Options
Agriculture	(68,414		)	68,414			—
Currencies	(34,479		)	12,331			(22,148		)
Energy	(7,990		)	7,990			—
Metals	5,585			(4,393		)	1,192
Subtotal	(105,298		)	84,342			(20,956		)

Total	$	(1,896,627	)	$	5,237,835		$	3,341,208

March 31, 2009

				Change in Net
Commodity	Realized Profits			Unrealized			Net Trading
Industry Sector	(Losses)			Profits (Losses)			Profits (Losses)

Futures
Agriculture	$	(1,121,499	)	$	(44,725	)	$	(1,166,224	)
Currencies	(935,386		)	(97,005		)	(1,032,391		)
Energy	(784,798		)	303,613			(481,185		)
Interest rates	(1,365,168		)	(1,534,030		)	(2,899,198		)
Metals	(46,106		)	(844,256		)	(890,362		)
Stock indices	3,651,634			(260,619		)	3,391,015
Subtotal	(601,323		)	(2,477,022		)	(3,078,345		)

Forwards
Currencies	80,864			(1,316,312		)	(1,235,448		)
Subtotal	80,864			(1,316,312		)	(1,235,448		)

Total	$	(520,459	)	$	(3,793,334	)	$	(4,313,793	)

5. RELATED PARTY TRANSACTIONS

Some of the Partnership’s U.S. dollar assets are maintained at MLPF&S. MLPF&S is a wholly owned subsidiary of Merrill Lynch, which in turn maintains a significant ownership interest in BlackRock, Inc., the parent company of the General Partner. On assets held in U.S. dollars, Merrill Lynch credits the Partnership with interest at the prevailing 91-day U.S. Treasury bill rate. The Partnership is credited with interest on any of its net gains actually held by MLPF&S in non-U.S. dollar currencies at a prevailing local rate received by Merrill Lynch. Merrill Lynch may derive certain economic benefit, in excess of the interest which Merrill Lynch pays to the Partnership, from possession of such assets. Additionally some of the Partnership’s U.S. dollar assets are maintained at PFPC Trust Company (“PFPC Trust”), an affiliate of the General Partner. PNC Global Investment Servicing, Inc. (“PNCGIS”) is the Partnership’s Transfer Agent. The transfer agency fees paid to PNCGIS are included in Administrator fees on the Statement of Operations.

As of March 31, 2010 and December 31, 2009 $10,740,184 and $10,617,906, respectively, was held in trading accounts at MLPF&S. For the three-month periods ended March 31, 2010 and 2009, the Partnership incurred $77,342 and $46,693, respectively, for brokerage commissions payable to MLPF&S.

PFPC Trust provides custody services for the Partnership. As of March 31, 2010 and December 31, 2009, $238,367,509 and $218,690,094, respectively, was held in custody at PFPC Trust and invested in an affiliated BlackRock money market fund.

For the three-month periods ended March 31, 2010 and 2009, the Partnership incurred $164,000 and $130,800, respectively, for administrative, custodian, transfer agency and other services fees payable to PNCGIS and its affiliates.

Merrill Lynch charges the Partnership Merrill Lynch’s cost of financing realized and unrealized losses on the Partnership’s non-U.S. dollar denominated positions. Such amounts are netted against interest income due to the insignificance of such amounts.

BRIM estimates that the round-turn equivalent commission rate charged to the Partnership by MLPF&S during the years ended December 31, 2009, 2008 and 2007 was approximately $10, $8 and $41, respectively (not including, in calculating round-turn equivalents, forward contracts on a futures-equivalent basis).

6. RECENT ACCOUNTING PRONOUNCEMENTS

In January 2010, the FASB issued amended guidance to improve disclosures about fair value measurements which will require additional disclosures about transfers into and out of Levels 1 and 2 and separate disclosures about purchases, sales, issuances and settlements in the reconciliation for fair value measurements using significant unobservable inputs (Level 3). It also clarifies existing disclosure requirements relating to the levels of disaggregation for fair value measurement and inputs and valuation techniques used to measure fair value. The amended guidance is effective for financial statements for fiscal years and interim periods beginning after December 15, 2009, except for disclosures about purchases, sales, issuances and settlements in the rollforward of activity in Level 3 fair value measurements, which are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The adoption on January 1, 2010 of the applicable additional disclosure requirements did not materially impact the Partnership’s financial statements.

7. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Partnership through the date the financial statements were issued, and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements, other than as described below.

Effective April 1, 2010, the General Partner has formed a number of subsidiaries to hold Partnership assets allocated to each particular Trading Advisor. Each of these subsidiaries has, in turn, entered into an advisory agreement with each Trading Advisor. The purpose of these subsidiaries is to segregate the assets of the Partnership allocated to any one Trading Advisor from the other assets of the Partnership in order to seek to limit liability for trading losses by any one Trading Advisor to the assets allocated to such subsidiary.

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

Operational Review

Set forth below is a chart which provides the Partnership’s current Trading Advisors, the portion of the Partnership’s assets that each controlled as of March 1, 2010, the general trading focus of each such Trading Advisor, an indication as to whether each Trading Advisor’s program is discretionary or systematic, as well as the commodity pool operator and investment adviser registration status of each Trading Advisor (with the Commodity Futures Trading Commission (the “CFTC”) and Securities and Exchange Commission (the “SEC”), respectively).

Trading Advisors	Systematic / Discretionary	General Trading Focus	Allocation		CPO Registration Status	Investment Adviser Registration Status
Abraham Capital Management	Systematic	Long-term trend-following	8.05	%	Not Registered	Not Registered

Boronia Capital PTY Ltd	Systematic	Short-term trend-following	8.55	%	Registered	Not Registered

Blackwater Capital Management LLC	Systematic	Medium-term trend-following	8.00	%	Registered	Not Registered

Cantab Capital Partners LLP	Systematic	Medium-term trend-following and mean reversion	8.20	%	Exempt CPO	Not Registered

Crabel Capital Management LLC	Systematic	Short-term trend-following	8.30	%	Registered	Not Registered

Mapleridge Capital Corporation	Systematic	Short-term trend-following and mean reversion	9.40	%	Registered	Not Registered

Nuwave Investment Management LLC	Systematic	Medium-term pattern recognition	5.90	%	Registered	Registered

Ortus Capital Management Ltd	Systematic	Medium-term econometric	9.20	%	Not Registered	Not Registered

PIA Capital Management LP	Discretionary	Short-term discretionary	9.75	%	Exempt CPO	Not Registered

Quantitative Investment Management - Global Program	Systematic	Short-term pattern recognition	7.10	%	Registered	Not Registered

Winton Capital Management Limited	Systematic	Medium-term trend-following	13.30	%	Registered	Not Registered

BRIM may, from time to time, direct certain individual Trading Advisors to manage their respective Partnership accounts as if they were managing more equity than the actual capital allocated to them.

One of the objectives of the Partnership is to provide diversification for a limited portion of the risk segment of the Limited Partners’ portfolios. Commodity pool performance has historically demonstrated a low degree of performance correlation with traditional stock and bond holdings. Since it began trading, the Partnership’s returns have been significantly non-correlated with the United States stock and bond markets.

The advisory agreements between the Partnership, the General Partner and each Trading Advisor govern the relationships with the Trading Advisors. The principal terms of this form of advisory agreement include the management fees (the “Management Fees”), profit shares (the “Profit Shares”), indemnification provisions and the term of the advisory agreement. Set forth below are descriptions of each of these terms. Other than the differences in fees, as described in the ranges provided below, the only other key term that differs among the agreements with the Trading Advisors is the minimum account maintenance level. The minimum account maintenance level for each Trading Advisor is described below.

Management Fees. Generally, Management Fees approximate between 0% and 2.5% (annualized) of the net asset value of the Partnership’s account managed by a Trading Advisor.

Profit Shares. Profit Shares generally are between 15% and 30% of the net capital appreciation in the Partnership’s account managed by a Trading Advisor for the applicable period, generally quarterly or annually, and are calculated on a cumulative high water mark basis, including realized and unrealized gains and losses from futures trading. Each Trading Advisor must earn back any losses causing cumulative quarter-end or year-end trading profits experienced by the Partnership’s account managed by the Trading Advisor to fall below the previous cumulative high water mark for such account before generating additional new trading profits on which Profit Shares are paid. However, Profit Shares once paid are not subject to being repaid to the Partnership as a result of subsequent realized or unrealized losses.

Indemnification. The advisory agreements generally provide that the Partnership will indemnify each Trading Advisor and its officers, employees and controlling persons for conduct undertaken as a trading advisor or otherwise relating to any action or omission of such persons (or alleged action or omission) in connection with the advisory agreements; provided that such action or omission (or alleged action or omission) does not constitute negligence (or gross negligence in some cases), misconduct or breach of the advisory agreements and was done in good faith and in a manner reasonably believed to be in, or not opposed to, the best interests of the Partnership. The advisory agreements further provide that this indemnity provision will not increase the liability of any Limited Partner to the Partnership beyond the amount of his or her capital and profits (exclusive of distributions or other returns of capital, including redemptions), if any, in the Partnership. The advisory agreements generally provide that the foregoing indemnified parties shall not be liable to the Partnership for actions or omissions within the scope of the standards set forth in the foregoing indemnities.

Term. The advisory agreements may be renewed at the option of the General Partner and the Partnership for successive one year terms. Each Trading Advisor may terminate the advisory agreement if the equity in the Partnership’s account drops below a specified minimum amount as of the close of business on any day, among other reasons. The Partnership may terminate the advisory agreements as of any month-end.

Minimum Investment Maintenance Levels. The minimum investment maintenance levels with each Trading Advisor are as follows: Abraham Capital Management: $1,000,000; Boronia Capital Pty Ltd.: $1,000,000; Blackwater Capital Management LLC: $1,000,000; Cantab Capital Partners LLP:

$15,000,000; Crabel Capital Management LLC: $1,000,000; Mapleridge Capital Corporation: $1,000,000; NuWave Investment Management, LLC: $1,000,000; Ortus Capital Management Ltd.: $20,000,000; Pia Capital Management L.P.: $25,000,000; Quantitative Investment Management: none; Winton Capital Management Limited: $1,000,000. A failure to maintain the minimum investment level does not result in an automatic termination of the agreement with the Trading Advisor, rather it permits the Trading Advisor to terminate the advisory agreement.

No Trading Advisor relationships were terminated during the period ended March 31, 2010.

Performance Summary and Net Asset Value Per Unit

MONTH-END NET ASSET VALUE PER SERIES F UNIT

	Jan.		Feb.		Mar.
2009	$	284.04	$	283.02	$	272.56
2010	$	252.82	$	253.45	$	257.28

Set forth below is a list of the net trading profit (loss) from each of the different Trading Advisors as measured at March 31, 2010.

Trading Advisors	Realized			Change in Unrealized			Brokerage Commissions and Clearing Costs			Total Trading Profit (Losses)
Abraham Capital Management	$	218,450		$	23,153		$	(73,050	)	$	168,553
Boronia Capital PTY Ltd	152,823			(127,484		)	(65,121		)	(39,782		)
Blackwater Capital Management LLC	(89,393		)	370,865			(13,498		)	267,974
Cantab Capital Partners LLP	(1,830,828		)	1,313,100			(34,018		)	(551,746		)
Crabel Capital Management LLC	48,790			802,880			(68,434		)	783,236
Mapleridge Capital Corporation	307,822			77,206			(226,881		)	158,147
Nuwave Investment Corp	204,603			(134,890		)	(4,292		)	65,421
Ortus Capital Management Ltd	(445,923		)	2,211,432			—			1,765,509
PIA Capital Management LP	446,954			(341,476		)	(10,746		)	94,732
Quantitative Investment Management - Global Program	(1,418,236		)	(352,497		)	(18,626		)	(1,789,359		)
Winton Capital Management Limited	508,311			1,395,546			(13,961		)	1,889,896
Total	$	(1,896,627	)	$	5,237,835		$	(528,627	)	$	2,812,581

The weighted average Management Fee rate of the Trading Advisors based on allocations as of March 31, 2010 was 1.45% and the weighted average incentive fee rate was 21%. The range of Management Fees as of March 31, 2010 was 0% to 2.5% (annualized) and the range of Profit Shares was 15% to 30%.

Performance Summary - Results of Trading

January 1, 2010 to March 31, 2010

The Partnership posted a net loss for the quarter as broadly mixed performance across underlying managers reflected a period with numerous news shocks that proved to be difficult for many systematic models to capture. Overall, foreign exchange led the quarter’s contributing sectors, with equities, fixed income and energy also producing positive results. Meanwhile, commodities trading generally struggled during the quarter, as agriculture and metals detracted.

Leading foreign exchange activity, underlying long US dollar exposures versus a troubled euro and a sympathetic British pound were largely additive during the quarter. In particular, continued concerns around Greece’s sovereign debt crisis, and the Eurozone in general, influenced a general sell-off of the euro resulting in seven-month lows against the US dollar. The British pound also experienced weakness

over local debt concerns and political uncertainty. Additional performance gains were generally the result of underlying long exposures to the currencies of commodity-dominant Australia and Canada. Meanwhile, underlying long Japanese yen holdings largely suffered during the quarter as the yen experienced its largest monthly decline versus the euro since early 2009 despite the euro’s troubles, and fell to three-month lows versus the US dollar.

Equities struggled early in the quarter as European fiscal concerns drove investors to sell risky assets. Following these long-side losses, including notable declines in the Dow Jones Eurostoxx and Hang Seng indices, many underlying managers ultimately reduced net long exposure through stop-loss levels and a reduction in signal strength. This led to further negative underlying manager results when markets strongly rebounded mid-quarter as investors looked favorably on indications that the EU would support Greece. Additionally, economic data releases late in the quarter also appeared to support investor optimism that the economy was on a recovery path, benefiting underlying long US and Japanese exposures particularly. Underlying managers were generally able to successfully navigate the continued upswing in March, accruing enough gains to overcome a large part of earlier losses.

The shift away from risky assets was a predominant theme for bond markets in January and early February. In particular, underlying long exposures to Euribor and German bunds profited, perceived as a safer alternative to the more heavily-indebted economies in the Eurozone, chiefly Greece. Gilts also appreciated mid-quarter after the Bank of England signaled concerns late in the month of a shrinking economy. However, range-bound global rates and a lack of clear market direction created a difficult trading environment later in the period. German bunds reversed from their previous upswing and Japanese government bond prices declined in anticipation of improved economic reports. Meanwhile, US Treasury trading was mixed throughout the quarter as rising longer-term yields reflected increased issuance and perceived improvements in the economy, while record-low short-term rates reflected the apparent intention of policy makers to remain accommodative.

Energy trading struggled early, but generally was able to recover lost ground in March. A commodity sell-off in crude oil and low volatility in natural gas prices created a difficult start to the year, leading many to short the sector. However, sharp reversals in crude oil prices frustrated a number of underlying managers. Following these losses, several underlying managers built up long exposures, setting up notable gains throughout the second half of the period as oil prices reached 18-month highs, bolstered by a growing appeal of commodities relative to corporate securities, as well as the US dollar’s decline. Furthermore, natural gas stockpiles reached above-average levels, profitably affecting underlying short natural gas exposures and pushing the overall sector into positive territory for the month.

First quarter metals sector declines were driven by gold and copper exposures. Most notably, underlying short gold positions generally lost ground as historically low central bank sales and a rebounding market in India and China supported prices. Meanwhile, underlying long nickel exposures helped to partially mitigate losses as the industrial metal’s prices reached 22-month highs in March, bolstered by the improving economic outlook. Platinum also contributed as anticipated demand from a global auto recovery augmented the metal’s performance over the quarter.

Agriculture-based commodity trading has experienced a very challenging environment year-to-date. Soybeans led losses within a rangebound trading environment for the crop, and wheat hit a five-month low in March due to light demand and higher-than-expected global supply. Furthermore, underlying long exposures to sugar experienced initial gains due to poor recent crops in India and Brazil, but the commodity aggressively reversed after hitting a 25-year high, ultimately suffering a 15% price collapse on news of increasing output in the two regions.

January 1, 2009 to March 31, 2009

The Partnership posted a net loss for the quarter, with early gains offset by losses late in the quarter. The stock indices sector was the only profitable sector for the quarter, with the largest losses occurring in the interest rate sector.

Stock indices trading contributed to gains early in the quarter through short exposures to global markets. Broad-based equity declines impacted global markets in January and February on negative economic news and poor earnings. However, investors experienced a sharp reversal and rally in March as they began to perceive stabilization in the global financial system after several months of uncertainty. Within this environment, short global equity exposures to the US, Germany, Hong Kong and Japan, proved to be beneficial as markets substantially declined early in the period. However, many of these short equity exposures detracted late in the quarter as the markets rallied on positive corporate earnings and government stimulus efforts.

Trading in energies was relatively flat over the first three months of the year, with slight profits early in the quarter roughly balanced by later losses. Oil prices hit cyclical lows in February, falling below $40/barrel for the first time since 2004 before rebounding to nearly $50/barrel by the end of March on signs that economic deterioration appears to be slowing. Demand for energy continued to slump, weighed by a decrease in economic activity driven by the global recession. Natural gas prices were negatively impacted by falling demand from power producers and their industrial clientele.

Short exposures in the metals sector detracted slightly from performance for the quarter, with gains early in the quarter outweighed by March losses. Prices for industrial metals such as copper, lead and zinc, rallied in March from their earlier lows on hopes that government stimulus efforts would spark industrial production and reduce existing basic materials inventory levels. Precious metals prices also rose during the quarter, continuing to benefit from higher levels of market volatility and economic uncertainty, as well as latent fears over growing inflation after the economy recovers.

Trading in agricultural commodities detracted from performance despite a profitable month of February. In particular, short positions in corn and soybeans profited in February on speculation that demand for biofuels and animal feed would decline in the midst of the recession, and demand for cotton process fell based on a reduced demand for raw materials. However, prices broadly recovered in March as investors perceived better economic times ahead. Coffee prices improved substantially over the course of the quarter, as investors anticipated a reduced supply from Central and South America.

Currency trading also detracted from performance for the quarter. Long exposures to Japanese yen and short exposures to the Euro contributed early in the quarter; however it was not enough to offset losses in the latter half of the quarter. The foreign exchange markets were range-bound during February with declining volatility, resulting in a challenging environment for underlying managers with shorter holding periods. While demand for the U.S. dollar was strong early in the period due to high market uncertainty, late in the quarter, long U.S. dollar trades struggled following quantitative easing initiatives launched by the U.S. Federal Reserve.

The interest rate sector was the worst performing strategy for the quarter. Long U.S. treasury, Gilt, and German Bund exposures led losses, selling off despite a backdrop of stock market volatility, worsening economic conditions and regulatory uncertainty. March proved to be particularly challenging, with several government and central bank stimulus initiatives, including those by the U.S. Federal Reserve, the Bank of England, the Swiss National Bank and the Bank of Japan, creating a challenging environment for systematic managers.

Performance Summary — Factors Affecting Interest Income and Expenses

Cash held in accounts at the Clearing Brokers and PFPC Trust earns interest on all such assets which are not used for trading. The low level of interest rates in 2010 in the United States negatively impacted interest income revenues when compared to 2009. The Partnership estimates that approximately 95% of its assets are earning interest. For the period ended March 31, 2010, the Partnership earned $66,343 in interest income, or approximately 0.02% of the Partnership’s average month-end net assets. For the period ended March 31, 2009, the Partnership earned $420,113 in interest income, or approximately 0.18% of the Partnership’s average month-end net assets. The average interest rates for the period ended March 31, 2010 was 0.11%. The average interest rates for the period ended March 31, 2009 was 0.99%.

The overall expenses of the Partnership (excluding Profit Shares) generally vary with changes in net assets. As such, expenses that vary with net assets are higher as of March 31, 2010 when compared to the period ending March, 31 2009 due to the overall increase in the Partnership’s net assets. For the period ended March 31, 2010, Distribution, Trading Advisors’ Management Fees and Sponsor fees increased approximately 26%, 31% and 26%, respectively when compared to the period ended March 31, 2009. This is due mostly to a 25% increase in average net assets in the period ended March 31, 2010 when compared to the period ended March 31, 2009. Profit Shares declined for the period ending March 31, 2010, when compared to the period ending March 31, 2009 primarily due to the Partnership’s lower profitability and also fewer profitable Trading Advisors.

The distribution fee is paid to the General Partner, who will then pay the distribution fee to the third-party selling agents, if any. Such selling agents in turn may use cash funds to compensate financial advisors and/or to cover the costs of supporting client accounts within the third party organization. If there are no payments to third-party selling agents with respect to a particular investor, the distribution fee will be returned by the General Partner or paid to an affiliate. Management Fees are paid to the Trading Advisors. Sponsor fees are paid to the General Partner.

Liquidity; Capital Resources

The Partnership borrows only to a limited extent and only on a strictly short-term basis in order to finance losses on non-U.S. dollar denominated trading positions pending the conversion of the Partnership’s U.S. dollar deposits. These borrowings are at a prevailing short-term rate in the relevant currency. They have been immaterial to the Partnership’s operation to date and are expected to continue to be so.

Substantially all of the Partnership’s assets are currently held in cash except for the net unrealized profit on open positions. The Net Asset Value of the Partnership’s cash is not affected by inflation. However, changes in interest rates could cause periods of strong up or down price trends, during which the Partnership’s profit potential generally increases. Inflation in commodity prices could also generate price movements, which the Trading Advisors’ strategies might successfully follow.

With respect to assets allocated to accounts managed by the Trading Advisors rather than Portfolio Funds, except in very unusual circumstances, the Partnership should be able to close out any or all of its open trading positions and liquidate any or all of its securities holdings quickly and at market prices. This permits a Trading Advisor to limit losses as well as reduce market exposure on short notice should its strategies indicate doing so. In addition, because there generally is a readily available market value for the Partnership’s positions and assets not allocated to Portfolio Funds, the Partnership’s monthly Net Asset Value calculations typically are precise, and investors need only wait ten business days to receive

the full redemption proceeds of their Units, although there can be no assurance as to the timing of such payments.

Although the Partnership has not done so to date, the Partnership may allocate assets to Portfolio Funds which typically are subject to redemption restrictions which may include advance written notice for redemptions, monthly or quarterly redemptions and such Portfolio Fund’s ability to limit or suspend redemptions.

Most United States exchanges (but generally not foreign exchanges, or banks or broker-dealer firms in the case of foreign currency forward contracts) limit by regulation the amount of fluctuation limits. The daily limits establish the maximum amount the price of a futures contract may vary either up or down from the previous day’s settlement price at the end of the trading session. Once the “daily limit” has been reached in a particular commodity, no trades may be made at a price beyond the limit. Positions in the commodity can then be taken or liquidated only if traders are willing to effect trades at or within the limit during the period for trading on such day. Because the “daily limit” rule only governs price movement for a particular trading day, it does not limit losses. The rule may, in fact, substantially increase losses because it may prevent the liquidation of unfavorable positions. Futures prices have occasionally moved the daily limit for several consecutive trading days, and thereby prevented prompt liquidation of futures positions on one side of the market, subjecting those futures traders involved to substantial losses.

Liquidity will be of concern to the Partnership primarily in that the futures markets in which the Trading Advisors take positions may have periods in which illiquidity makes it impossible or economically undesirable to execute trades which its respective trading strategy would otherwise suggest. Other than in respect of the functioning of the markets in which it trades, liquidity will be of little relevance.

The Partnership has not made any investments in Portfolio Funds to date so it has not had to raise funds from Portfolio Funds. Instead, the Partnership pays its redemptions with the cash held in its various operating accounts. Due to the nature of its futures trading, the Partnership has significant amounts of cash available to it. When it needs to fund redemptions, the General Partner will adjust the net assets allocated to the Partnership’s various Trading Advisors as appropriate based upon its asset allocation process. The individual Trading Advisors decide which trading positions to liquidate in the accounts they manage, when necessary. The Partnership has been able to satisfy all of its redemption requests in a timely manner.

There were no material commitments for capital expenditures as of March 31, 2010, the end of the most recent reporting period.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Quantifying the Partnership’s Trading Value at Risk

Quantitative Forward-Looking Statements

The following quantitative disclosures regarding the Partnership’s market risk exposures contain “forward-looking statements” within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act and Section 21E of the Exchange Act). All quantitative disclosures in this section are deemed to be forward-looking statements for purposes of the safe harbor, except for statements of historical fact.

The Partnership’s risk exposure in the various market sectors traded by the Trading Advisors is quantified below in terms of Value at Risk. Due to the Partnership’s mark-to-market accounting, any loss in the fair value of the Partnership’s open positions is directly reflected in the Partnership’s earnings (realized or unrealized) and cash flows (at least in the case of exchange-traded contracts in which profits and losses on open positions are settled daily through variation margin).

Exchange maintenance margin requirements have been used by the Partnership as the measure of its Value at Risk. Maintenance margin requirements are set by exchanges to equal or exceed the maximum loss in the fair value of any given contract incurred in 95% - 99% of the one-day time periods included in the historical sample (generally approximately one year) researched for purposes of establishing margin levels. Maintenance margin levels are established by dealers and exchanges using historical price studies, as well as an assessment of current market volatility and economic fundamentals, to provide a probabilistic estimate of the maximum expected near-term one-day price fluctuation.

In the case of market sensitive instruments which are not exchange-traded (almost exclusively currencies in the case of the Partnership), the margin requirements for the equivalent futures positions have been used as Value at Risk. In those rare cases in which a futures-equivalent margin is not available, dealers’ margins have been used.

The fair value of the Partnership’s futures and forward positions does not have any optionality component. However, certain of the Trading Advisors trade commodity options. The Value at Risk associated with options is reflected in the following table as the margin requirement attributable to the instrument underlying each option.

In quantifying the Partnership’s Value at Risk, 100% positive correlation in the different positions held in each market risk category has been assumed. Consequently, the margin requirements applicable to the open contracts have been aggregated to determine each trading category’s aggregate Value at Risk. The diversification effects resulting from the fact that the Partnership’s positions are rarely, if ever, 100% positively correlated, have not been reflected.

The Partnership’s Trading Value at Risk in Different Market Sectors

The measurement of the Partnership’s Trading Value at Risk is based upon the margin requirements imposed upon the Partnership for the positions it maintains across the various market sectors it invests in, which are calculated for each of its clearing accounts. The Partnership’s margin requirements are then allocated across the various market sectors disclosed in the table based upon the relative size of the positions held in each sector. The Partnership’s disclosure does not attempt to reduce this exposure based upon any assumptions on the correlation of positions held across the different clearing accounts to each other. The following table indicates the average, highest and lowest trading Value at Risk associated with the Partnership’s open positions by market category for the period ended March 31, 2010. During the period ended March 31, 2010, the Partnership’s average capitalization was $294,222,587.

	Average		% of Average		Highest Value		Lowest Value
Market Sector	Value at Risk		Capitalization		At Risk		At Risk

Agriculture	$	209,880	0.07	%	$	431,376	$	29,022
Currencies	5,229,658		1.78	%	5,780,690		4,492,283
Energy	294,902		0.10	%	580,149		84,830
Interest Rates	10,340,946		3.52	%	12,041,895		8,096,074
Metals	444,731		0.15	%	731,323		272,374
Stock Indices	2,128,144		0.72	%	2,897,474		1,408,875

TOTAL	$	18,648,261	6.34	%	$	22,462,907	$	14,383,458

Average, highest and lowest Value at Risk amounts relate to the month-end amounts for each month-end during the period. Average Capitalization is the average of the Partnership’s capitalization at the end of each calendar month during the period.

Item 4T. Controls and Procedures

BRIM, the General Partner of the Partnership, with the participation of the Partnership’s president as Principal Executive Officer of the Partnership (“President”) 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 as of the end of the period of this quarterly report and, based on this evaluation, has concluded that these disclosure controls and procedures are effective.

Changes in Internal Control over Financial Reporting

There were no significant changes in the Partnership’s internal controls or in other factors that could significantly affect those controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings

	None.

Item 1A.	Risk Factors

	None.

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.

	(a)	The table below represents the units issued to accredited investors pursuant to Regulation D and Section 4(2) under the Securities Act.

SERIES A

	Subscription
	Amount		Units	NAV
Jan-09	$	5,118,998	4,359,562	$	1.1742
Feb-09	2,670,999		2,262,408	1.1806
Mar-09	4,150,999		3,528,561	1.1764
Apr-09	6,838,937		6,036,664	1.1329
May-09	6,646,005		6,040,724	1.1002
Jun-09	9,055,908		8,115,340	1.1159
Jul-09	11,945,891		10,947,482	1.0912
Aug-09	7,475,907		6,852,972	1.0909
Sep-09	7,084,959		6,483,307	1.0928
Oct-09	6,952,946		6,276,355	1.1078
Nov-09	11,669,891		10,709,269	1.0897
Dec-09	24,772,912		22,285,816	1.1116
Jan-10	15,117,838		14,030,477	1.0775
Feb-10	12,472,906		11,872,174	1.0506
Mar-10	12,059,892		11,450,714	1.0532

SERIES I

	Subscription
	Amount		Units	NAV
Jan-09	$	—	—	$	1.2972
Feb-09	—		—	1.3073
Mar-09	—		—	1.3062
Apr-09	124,998		99,087	1.2615
May-09	20,000		16,288	1.2279
Jun-09	—		—	1.2477
Jul-09	19,999		16,351	1.2231
Aug-09	—		—	1.2258
Sep-09	269,999		219,404	1.2306
Oct-09	9,975		7,978	1.2503
Nov-09	104,997		85,183	1.2326
Dec-09	14,999		11,897	1.2608
Jan-10	174,997		142,796	1.2255
Feb-10	—		—	1.1981
Mar-10	883,994		734,153	1.2041

(b) None.

(c) Limited Partners may redeem their Units at the end of each calendar month at the then current month-end Net Asset Value per Unit. The redemption of Units has no impact on the value of Units that remain outstanding, and Units are not reissued once redeemed.

The following table summarizes the redemptions by Limited Partners during the first calendar quarter of 2010:

Series F

		Redemption Date		Redemption
Month	Units Redeemed	NAV Per Unit		Amount
January 31, 2010	500	$	252.82	$	126,410
February 28, 2010	1,536	253.45		389,299
March 31, 2010	1,341	257.28		345,012

Total	3,377			860,721

Series A

		Redemption Date		Redemption
Month	Units Redeemed	NAV Per Unit		Amount
January 31, 2010	2,335,524	$	1.0506	$	2,453,701
February 28, 2010	8,202,342	1.0532		8,638,707
March 31, 2010	789,967	1.0692		844,633

Total	11,327,833			11,937,041

Series G

		Redemption Date		Redemption
Month	Units Redeemed	NAV Per Unit		Amount
January 31, 2010	104,538	$	1.0949	$	114,459
February 28, 2010	155,453	1.0977		170,641
March 31, 2010	896,138	1.1143		998,567

Total	1,156,129			1,283,667

Series I

		Redemption Date		Redemption
Month	Units Redeemed	NAV Per Unit		Amount
January 31, 2010	9,985	$	1.1981	$	11,962
February 28, 2010	—	1.2041		0
March 31, 2010	—	1.2242		0

Total	9,985			11,962

Item 3.	Defaults Upon Senior Securities

	None.

Item 4.	Reserved

Item 5.	Other Information

	None.

Item 6.	Exhibits

(a) Exhibits

The following exhibits are incorporated by reference or are filed herewith to this Quarterly Report on Form 10-Q:
31.01 and
31.02	Rule 13a-14(a)/15d-14(a) Certifications

Exhibit 31.01
and 31.02:	Are filed herewith.

32.01 and
32.02	Section 1350 Certifications

Exhibit 32.01
and 32.02	Are filed herewith.

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.

	BLACKROCK GLOBAL HORIZONS I L.P.


	By: BLACKROCK INVESTMENT MANAGEMENT, LLC
	(General Partner)


Date: May 17, 2010	By	/s/ EDWARD RZESZOWSKI
		Edward Rzeszowski
		President
		(Principal Executive Officer)


Date: May 17, 2010	By	/s/ MICHAEL L. PUNGELLO
		Michael L. Pungello
		Chief Financial Officer
		(Chief Financial Officer)

Attached files

FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009

FOR THE THREE MONTHS ENDED MARCH 31, 2010

BlackRock Global Horizons I L.P. Reports

Also read