Quarterly Report for Quarter Ending June 30, 2026 (Form 10-Q)

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

Introduction

Reference is made to Item 1, "Financial Statements." The information contained therein is essential to, and should be read in conjunction with, the following analysis.

Operational Overview

Man-AHL Diversified I L.P. (the "Partnership") is a fund which engages in speculative trading of futures and forward contracts and related instruments through its investment in Man-AHL Diversified Trading Company L.P. (the "Trading Company") pursuant to the AHL Diversified Program, directed on behalf of the Trading Company by AHL Partners LLP (the "Trading Advisor"). The Trading Advisor also serves as the Partnership's commodity pool operator. The AHL Diversified Program is a price trend-following trading system, entirely quantitative in nature, and implements trading positions on the basis of statistical analyses of past price histories. The objective of the AHL Diversified Program is to deliver capital growth for commensurate levels of volatility over the medium term, independent of the movement of the stock and bond markets, through the speculative trading, directly and indirectly, of futures, options and forward contracts, swaps and other financial derivatives both on and off exchange. The AHL Diversified Program trades globally in several market sectors, including, without limitation, currencies, bonds, energies, stock indices, interest rates, credit, metals, agricultural and volatility. In the future, the AHL Diversified Program may, to a limited extent, invest in stocks.

The AHL Diversified Program is proprietary and confidential, so that substantially the only information that can be furnished regarding the Partnership's results of operations is contained in the performance record of its trading through the Trading Company. Past performance is not necessarily indicative of its future results. Man Investments (USA) Corp., the general partner of the Partnership (the "General Partner") does believe, however, that there are certain market conditions, for example, markets with pronounced price trends, in which the Partnership has a greater likelihood of being profitable than in other market environments.

Capital Resources and Liquidity

Units of limited partnership interests ("Units") of the Partnership may be offered for sale as of the beginning, and may be redeemed as of the end, of each month.

The Partnership raises additional capital only through the sale of Units and capital is increased through trading profits (if any) and interest income. The Partnership does not engage in borrowing. The Partnership, not being an operating company, does not incur capital expenditures. It functions solely as a passive trading vehicle, investing the substantial majority of its assets in the Trading Company. Its remaining capital resources are used only as assets available to make further investments in the Trading Company and to pay Partnership level expenses. Accordingly, the amount of capital raised for the Partnership should not have a significant impact on its operations.

Partnership assets not invested in the Trading Company are maintained in cash and cash equivalents in bank accounts or accounts with The Bank of New York Mellon and are readily available to the Partnership. The Partnership may redeem any part or all of its limited partnership interest in the Trading Company at any month-end at the net asset value per unit of the Trading Company. The Trading Company's assets are generally held as cash or cash equivalents which are used to margin futures and provide collateral for forward contracts and other over-the-counter ("OTC") contract positions and are withdrawn, as necessary, to pay redemptions (to the Partnership and other investors in the Trading Company). Other than potential market-imposed limitations on liquidity, due, for example, to limited open interest in certain futures markets or to daily price fluctuation limits, which are inherent in the Trading Company's futures trading, the Trading Company's assets are highly liquid and are expected to remain so.

There have been no material changes with respect to the Partnership's critical accounting policies, off-balance sheet arrangements or disclosure of contractual obligations as reported in the Partnership's Form 10-K filed March 30, 2026.

Allocations by Market Sector

The following table indicates the percentage of the Partnership's assets allocated to initial margin for the Partnership's open trading positions by market sector as of June 30, 2026. The Partnership's capitalization was $ 64,401,680 as of June 30, 2026. See also Item 3, "Quantitative and Qualitative Disclosures About Market Risk," below.

*Certain total amounts do not foot due to rounding.

Results of Operations

Due to the nature of the Partnership's trading, the results of operations for the interim period presented should not be considered indicative of the results that may be expected for the entire year.

Periods Ended June 30, 2026:

Six months ended June 30, 2026:

Net assets increased $ 1,719,112 for the six months ended June 30, 2026. This increase was attributable to subscriptions in the amount of $ 0, redemptions in the amount of $ 5,643,666 and a net gain from operations of $ 7,362,778.

Management Fees of $ 1,003,773 and servicing fees of $ 335,583 were paid or accrued, and interest of $ 1,178,451 was earned or accrued on the Partnership's share of the Trading Company's cash and cash equivalent investments and broker balances, for the six months ended June 30, 2026.

The Partnership's other expenses paid or accrued for the six months ended June 30, 2026 were $ 556,284.

Three months ended June 30, 2026:

Net assets decreased $ 853,887 for the three months ended June 30, 2026. This decrease was attributable to subscriptions in the amount of $ 0, redemptions in the amount of $ 2,948,274 and a net gain from operations of $ 2,094,387.

Management Fees of $ 493,211 and servicing fees of $ 164,888 were paid or accrued, and interest of $ 584,695 was earned or accrued on the Partnership's share of the Trading Company's cash and cash equivalent investments and broker balances, for the three months ended June 30, 2026.

The Partnership's other expenses paid or accrued for the three months ended June 30, 2026 were $ 263,393.

The Partnership ended April with positive returns, with gains from currencies, commodities, stocks, and fixed income trading partially offset by credit trading. Stocks generated the largest gains as long exposure across Asia-Pacific indices appreciated. The top performer was a long position in FTSE Taiwan Index. Long positions in the Korean Kospi, Nikkei and MSCI Emerging Markets indices also contributed to gains, whereas a short position in the Nifty 50 Index detracted from performance. Credit trading detracted from performance; positioning rotated from short to long credit risk through short credit default swaps positions as European iTraxx and U.S. CDX index spreads compressed. Currency trading generated gains. A long position in Brazilian real was profitable, with long positions in Israeli shekel and Norwegian krone also adding to performance. The Partnership reduced its net long dollar exposure as Asian currencies recovered against the U.S. dollar, and short positions in Japanese yen, Taiwanese dollar and Korean won detracted from performance. Commodities trading was also positive, though results were mixed. Energies led in performance, as a short position in U.S. natural gas was profitable in addition to a long position in RBOB gasoline. The Partnership marginally reduced long energy exposure as the month progressed. Agricultural detracted from performance. Metals were flat as gains in nickel offset a decrease in precious metals. Fixed income trading contributed to gains, led by short ten-year Japanese Government Bond positions. Short two-year U.S. bond positions and short three-year Australian bond positions were also profitable, and a short SOFR position was the top contributor in rates.

The Partnership ended May with positive returns, with gains from stocks, credit and currency trading offset by commodities and fixed income trading. Stocks generated profits, with long positions in the Korean Kospi, FTSE Taiwan and NASDAQ indices leading gains. Credit trading was also profitable, led by short positions in the European high-yield and investment-grade credit default swap indices. Currencies trading was positive overall, with profits generated from short positions that captured gains as the Japanese yen and South Korean won depreciated against the U.S. dollar. Losses from long exposures to the Colombian peso and Brazilian real partially offset gains. Commodities trading generated losses, primarily driven by positions across the energy complex, lead by a short position in U.S. natural gas. Long positions in middle distillates, including gas, oil and RBOB gasoline, also resulted in losses. These losses offset gains in the metals sector from long positions in copper and aluminum. In agricultural, a long position in corn and a short position in cocoa resulted in losses, which were partially offset by small gains from a short position in sugar. Fixed income trading finished negative for the month. Short positions in Australian bonds and Euro-Schatz futures generated losses. Short positions in European and U.K. short-term rates, via Euribor and SONIA, also detracted.

In June, performance was negative for the month, with gains in currencies, stocks and credit trading outweighed by losses in commodities and fixed income trading. Commodities trading resulted in the most losses. Metals performed worst, with long positions in aluminum, gold, nickel and silver generating losses, while a short position in lead provided partially offsetting gains. Agricultural also contributed to losses, with short positions in cocoa and coffee detracting from performance the most. Long positions in soybean oil and soybeans also generated losses. In energies, a long position in crude oil resulted in losses, with only a short U.S. natural gas position generating profits. Currencies trading produced the most gains, although results were mixed. A short position in the Japanese yen resulted in positive returns as the currency depreciated against the U.S. dollar, and short positions in the Canadian dollar and Singapore dollar and a long position in the Colombian peso also generated gains. Long positions in the Norwegian krone, Israeli shekel and Australian dollar also resulted in losses. Stocks trading partially offset losses for the month. A long position in the Swiss Market Index led gains, with a short Hang Seng China Enterprises Index position and a long Russell 2000 Index position also resulting in profits. A long position in the S&P 500 Index and a short position in the Nifty 50 Index detracted from performance. Credit trading produced gains, with a long position in credit risk through short protection across European iTraxx indices contributing to performance. Fixed income trading was negative, with losses resulting from positions in longer-dated maturities. Gains derived from short positions in two-year U.S. Treasury bonds were outweighed by short positions in Euro-Bund Long-Term Futures (BUXL) bonds and Korean bonds. Rates trading produced gains with a short position in SOFR that was partly offset by short Euribor and SONIA positions.

Three months ended March 31, 2026:

Net assets increased $ 2,572,999 for the three months ended March 31, 2026. This increase was attributable to subscriptions in the amount of $ 0, redemptions in the amount of $ 2,695,392 and a net gain from operations of $ 5,268,391.

Management Fees of $ 510,562 and servicing fees of $ 170,695 were paid or accrued, and interest of $ 593,756 was earned or accrued on the Partnership's share of the Trading Company's cash and cash equivalent investments and broker balances, for the three months ended March 31, 2026.

The Partnership's other expenses paid or accrued for the three months ended March 31, 2026 were $ 292,891.

The Partnership ended January with positive returns, with gains from stocks, currencies, credit and commodities trading partially offset by bonds and rates trading. Stocks generated profits as broad-based long exposure across Asia-Pacific and emerging markets indices appreciated. The top performer was a long position in the Korean Kospi Index. Long positions in the FTSE Taiwan Index and the MSCI Emerging Markets Index further contributed to gains. Credit also added to performance, as long credit risk (short CDS positions) in U.S. high-yield and investment-grade issuers generated modest profits. FX trading gained as broad-based short U.S. dollar positioning benefited from a weakening U.S. dollar. Both developed and emerging markets currency pairs appreciated, led by the Mexican peso and Australian dollar. A short position in the Indian rupee was profitable, as the currency experienced its worst month since September 2022. Commodities finished in the black, though results were mixed. Metals and agricultural generated gains-particularly metals-despite precious metals declining toward the end of the month. Long gold and silver positions were the top contributors, while a short cocoa position led in agricultural. Energies proved less favorable, as short exposure to U.S. natural gas generated losses. Bonds and rates trading finished down for January due to short Euribor and long SONIA exposure. Positions further out the curve performed better, as gains from short 10-year Korean bonds partially offset losses from short 2-year German bonds.

The Partnership ended February positive, with gains from currencies, commodities, stocks and bonds and rates trading partially offset by credit trading. Broad-based long exposure across non-U.S. indices proved profitable, particularly in the FTSE 100 Index and Swiss Market Index in Europe. Positions in the Tokyo Stock Price Index and the Thai SET50 Index also generated gains in Asia-Pacific while a long position in the Nasdaq-100 Index generated losses. Credit trading also detracted from performance. Comparatively, all commodity sub-sleeves finished February in the black. Energies led gains, as a short U.S. natural gas position profited and a long crude oil position also generated gains coinciding with seven-month highs in Brent crude prices. Precious metals continued to rise, benefiting the Partnership's long exposure across the complex. Agricultural were more muted, with gains from a short cocoa position partially offset by a short wheat position, which was subsequently reversed to long. Short U.S. dollar positioning proved profitable as the U.S. dollar continued to weaken. Long positions in the Brazilian real and Chinese renminbi were profitable against the dollar, with a short Indian rupee position slightly offsetting gains. Fixed income trading was mixed, with gains from shorter tenors offsetting losses further out the curve. Long SONIA and SOFR positions generated profits in rates trading, while short positions in Euro-Bund Long-Term Futures (BUXL) and Korean 10-year bonds detracted in longer-dated maturities.

In March, performance was negative for the month, with gains in commodities trading outweighed by losses in currencies, credit, stocks, and bonds and rates trading. Stocks generated losses amid a decline in global risk appetite. Positions in the Swiss Market Index, FTSE 100 Index, and Australian 200 Share Price Index declined, while a short position in the NSE Nifty 50 Index partially offset losses. Credit trading marginally detracted, as long credit risk (short CDS) positions in the iTraxx Europe and iTraxx Crossover indices were adversely impacted by spread widening. Currencies trading was negative overall; however, short positions in Asian currencies-notably the Indian rupee and Japanese yen-proved profitable. These gains were outweighed by long emerging markets positions, which weakened against the U.S. dollar, with long South African rand, Mexican peso and Chilean peso positions representing the largest detractors. Fixed income trading proved challenging, as long bond positions detracted amid rising yields. Positions in Italian, Canadian, and French rates were among the worst performers, while short positions in German, Australian and Korean bonds partially offset losses. Energies trading proved highly accretive, with long positions across oil and distillates markets generating gains. Metals, however, detracted, as long gold and silver positions declined amid a broader sell-off, partially offset by gains from a long aluminum position. Agricultural also generated modest losses, with a short sugar position the largest detractor.

Periods Ended June 30, 2025:

Six months ended June 30, 2025:

Net assets decreased $17,146,310 for the six months ended June 30, 2025. This decrease was attributable to subscriptions in the amount of $ 0, redemptions in the amount of $ 6,408,223 and a net loss from operations of $ 10,738,087.

Management Fees of $ 968,472 and servicing fees of $ 323,660 were paid or accrued, and interest of $ 1,323,746 was earned or accrued on the Partnership's share of the Trading Company's cash and cash equivalent investments and broker balances, for the six months ended June 30, 2025.

The Partnership's other expenses paid or accrued for the six months ended June 30, 2025 were $ 527,981.

Three months ended June 30, 2025:

Net assets decreased $ 5,906,701 for the three months ended June 30, 2025. This decrease was attributable to subscriptions in the amount of $ 0, redemptions in the amount of $ 2,028,810 and a net loss from operations of $ 3,877,891.

Management Fees of $ 440,098 and servicing fees of $ 147,092 were paid or accrued, and interest of $ 614,605 was earned or accrued on the Partnership's share of the Trading Company's cash and cash equivalent investments and broker balances, for the three months ended June 30, 2025.

The Partnership's other expenses paid or accrued for the three months ended June 30, 2025 were $ 237,337

In April, the Partnership returned a negative return with losses in FX, credit, commodities, and stocks outweighing gains from fixed income. The Partnership's positions in Switzerland's SMI and the Hang Seng produced losses, while a short position in the Russell 2000 Index generated a small offsetting gain. Long credit positions also generated losses. The US dollar trade-weighted index fell. Emerging Market currencies fell relative to the US dollar. Losses were incurred in the South African rand, and Brazilian real. US dollar positions against the Swedish krona and Indian rupee generated small offsetting gains. Within commodities, the main driver of negative performance was in metals, but there was far from a uniform story. A long gold position was profitable. A long silver, position on the other hand, was unprofitable . Within energies, US natural gas generated a loss, and in agricultural, profits from trading wheat were offset by losses from soybeans. Fixed income trading finished the month in the black, with gains from long positions in short-term rates almost offset by losses from mixed positioning in longer duration trades in the US and Germany.

In May, the Partnership's performance was negative with losses in FX, commodities, and bonds outweighing gains from equities and credit. Long SONIA and Euribor suffered. Further out the curve, long Korean index positions added to losses. Commodities trading proved challenging as all sleeves ended in the red and Energies led losses. Long coffee drove agricultural to losses. Gains from longs in livestock were only able to partially offset. Metals compounded losses, with long precious the primary culprits. Currencies also were negative. The Partnership's net long positioning in Credit was profitable. In a similar vein to earlier in the year, longs across Europe led gains, notably in FTSE Italia and DAX.

In June the performance of the Partnership was positive with gains in stocks, FX, credit and commodities offsetting minor losses in fixed income. June saw risk assets advance with both the S&P 500 and Korean Kospi hitting all-time highs leading to gains in long Korean Kospi. The Partnership's broad-based short dollar exposure contributed to gains as well as a host of Latin American-dollar crosses, in particular the Brazilian Real and Mexican Peso against the US dollar. Long Euro further added, complemented by gains from other emerging market and developed market dollar crosses. Gains in stocks were led by long Kospi. The Partnership's long positions in MSCI EM and US indices extended gains which were further compounded by high yield credit exposure in both the US and Europe. Commodities were mixed, with gains from agricultural and metals trading offsetting losses from energies. Shorts in sugar and corn proved profitable, with sugar prices falling. Long platinum and silver pushed metals into the black but were countered by losses from long exposure across the oil complex. In fixed income, long-end exposures contributed to offsetting gains from rates trading. Long Euribor led declines, while shorts in US treasuries compounded losses. Profits from long SONIA provided some relief.

Three months ended March 31, 2025:

Net assets decreased $11,239,609 for the three months ended March 31, 2025. This decrease was attributable to subscriptions in the amount of $ 0, redemptions in the amount of $ 4,379,413 and a net loss from operations of $ 6,860,196.

Management Fees of $ 528,374 and servicing fees of $ 176,568 were paid or accrued, and interest of $ 709,141 was earned or accrued on the Partnership's share of the Trading Company's cash and cash equivalent investments and broker balances, for the three months ended March 31, 2025.

The Partnership's other expenses paid or accrued for the three months ended March 31, 2025 were $ 290,644.

The Partnership ended January in the red net of fees, with gains from equities and commodities offset by losses in FX and fixed income. A long position in the FTSE Taiwan Index caused minor losses on the month overall, but there were significant gains from long positions in European indices such as Germany's DAX and FTSE Italia All Share. Within commodities, agricultural were profitable while returns from trading metals and energies were more muted. The Partnership's long positions in coffee and live cattle were profitable. Within metals, gains from long gold positions were offset by losses trading copper. Energies trading was also flat overall, with profits from long positions in EUA Carbon Emissions offset by losses from trading crude oil. In currency, the Partnership's long US dollar position stumbled mid-month amidst underlying tariff uncertainties, and crosses against the Brazilian real and Japanese yen were the worst affected. A long US dollar position against the Canadian dollar, however, benefited the Partnership over the course of the month. In credit trading, the Partnership's gains were made primarily in European investment-grade and high-yield indices. Trading in fixed income generated losses for the Partnership as mixed news on inflation caused fluctuations in prices. The Partnership's short positions in both SONIA and Euribor were worst affected, although most positions generated losses. However, a short position in Japanese bonds benefited the Partnership.

In February, the Partnership returned negative net of fees, with losses in commodities, FX and fixed income, overcoming small gains from equities and credit. Trading in risk assets finished the month in the black, but there was considerable dispersion. Technology stocks experienced another month of volatility, leading to losses from the Partnership's longs in both the S&P 500 and Nasdaq 100. Europe's equities proved far more resilient, where the Partnership's long position in the FTSE Italia All-Share Index performed positively. The Partnership experienced losses across all three commodity sub-sectors. The Partnership's long position in cocoa fell as Cocoa prices softened, reversing recent trends. The Partnership's long positions in US natural gas generated gains, but its metals trading generated losses, mainly resulting from longs in platinum and silver. The Partnership experienced losses in currency pairs such as the Swedish krona and Chilean peso, but the greatest loss was seen for the Japanese yen, which rose against the US dollar after a plethora of strong economic data. However, the Partnership generated a gain from a short position in the Taiwanese dollar. In credit trading, the Partnership had a loss from a long credit position in US high yield which was more than offset by a gain from similar positioning in European high yield. The Partnership experienced losses in fixed income trading from short positions in U.S. Treasuries across the maturity spectrum. However, a short position in Japanese bonds provided some marginal offsetting gains.

The Partnership finished the quarter with negative returns in March net of fees, with losses from equities, credit and FX trading outweighing gains in commodity trading and nearly-flat performance from fixed income. The Partnership's equity positions, many of which had transitioned from long to short by the end of the month, posted losses. Within indices, the worst performers were Sweden's OM and India's Nifty, while long positions in South Africa's All Share and the Hang Seng generated offsetting gains. In FX trading, the Partnership's short positions against the US dollar, such as the Indian rupee and Swiss franc, experienced losses, while offsetting gains were seen in the Partnership's positions in the Polish zloty and Brazilian real that were long or moved to long against the US dollar early in the month. In the aggregate, fixed income trading was flat, but there was dispersion in individual positions. Losses were seen in the Partnership's position on Euro short-term rates, while offsetting gains were seen in the Partnership's long position in German bonds. Commodities trading finished in positive territory for the Partnership, driven by metals where gold had its largest quarterly rise since 1986 and a long silver position was also a top performer for the Partnership. Comparatively, the Partnership experienced some losses as oil prices continued to fluctuate, though a long US natural gas was also a top performer for the Partnership. Long positions in live and feeder cattle, however, helped generate gains for the Partnership's agricultural trading, as prices hit new highs.