UNITEDTable STATESof Contents

~~SECURITIES~~UNITED ~~AND~~STATES ~~EXCHANGE COMMISSION~~

~~Washington, D.C.~~SECURITIES ~~20549~~AND EXCHANGE COMMISSION

~~Form 10-Q~~ Washington, D.C. 20549

~~þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE~~Form 10-Q

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

~~For~~SECURITIES ~~the~~EXCHANGE ~~quarterly~~ACT ~~period~~OF ~~ended June 30, 2013~~ 1934

OrFor the quarterly period ended September 30, 2013

¨Or ~~TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE~~

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

~~For~~SECURITIES ~~the~~EXCHANGE ~~transition~~ACT ~~period~~OF ~~from to~~ 1934

~~Commission~~For ~~file~~the ~~number:~~transition ~~000-50723~~period from to

~~HEDGE~~Commission ~~FUND MANAGERS~~file ~~(DIVERSIFIED)~~number: ~~LLC~~000-50723

~~(Exact name of registrant as~~HEDGE ~~specified~~FUND MANAGERS ~~in its charter~~(DIVERSIFIED) LLC

Delaware		04-3638229
(State or other jurisdiction of incorporation)		(I.R.S. Employer Identification No.)
200 West StreetNew York, New York		10282
(Address of principal executive offices)		(Zip Code)

(Exact name of registrant as specified in its charter)

Registrant’s telephone number, including area code: (212) 902-1000


Delaware		04-3638229
(State or other jurisdiction of incorporation)		(I.R.S. Employer Identification No.)

200 West Street New York, New York		10282
(Address of principal executive offices)		(Zip Code)

~~Indicate~~Registrant’s bytelephone ~~check~~number, ~~mark~~including ~~whether~~area ~~the~~code: ~~registrant~~ (1212) ~~has~~902-1000 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 þ No ¨

Indicate by check mark whether the registrant (1) has ~~submitted~~filed ~~electronically~~all ~~and~~reports ~~posted on its corporate Web site, if any, every Interactive Data File~~ required to be ~~submitted~~filed ~~and~~by ~~posted~~Section 13 ~~pursuant~~or 15(d) toof ~~Rule 405~~the ofSecurities ~~Regulation S-T~~Exchange ~~(§ 232.405~~Act of ~~this~~1934 ~~chapter)~~ during the preceding 12 months (or for such shorter period that the registrant was required to ~~submit~~file such reports), and ~~post~~(2) has been subject to such ~~files)~~filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant ishas asubmitted ~~large~~electronically ~~accelerated~~and ~~filer,~~posted anon ~~accelerated~~its ~~filer~~corporate Web site, aif any, ~~non-accelerated~~every ~~filer~~Interactive orData aFile ~~smaller~~required ~~reporting~~to ~~company.~~be ~~See~~submitted ~~the~~and ~~definitions~~posted ofpursuant ~~“large~~to ~~accelerated~~Rule ~~filer,”~~405 ~~“accelerated~~of ~~filer”~~Regulation ~~and~~S-T ~~“smaller~~(§ ~~reporting~~232.405 ~~company”~~of inthis ~~Rule 12b-2~~chapter) ofduring the ~~Exchange~~preceding ~~Act.~~12 months (~~Check~~or ~~one):~~for such shorter period that the registrant was required to submit and post such files). Yes þ No ¨

~~Large~~Indicate by check mark whether the registrant is a large accelerated filer, ¨an ~~Accelerated~~accelerated filer, ¨a ~~Non~~non-accelerated filer or þa ~~Smaller~~smaller reporting company. ¨See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

~~Indicate~~Large byaccelerated ~~check~~filer ~~mark~~¨ ~~whether~~Accelerated ~~the~~filer ~~registrant~~¨ isNon-accelerated afiler ~~shell~~þ ~~company~~Smaller ~~(as~~reporting ~~defined~~company ~~in Rule 12b-2 of the Exchange Act). Yes~~ ¨ ~~No þ~~

~~The~~Indicate ~~Registrant’s~~by ~~Units~~check ofmark ~~Limited~~whether ~~Liability~~the ~~Company~~registrant ~~Interests~~is ~~are~~a ~~not~~shell ~~traded~~company on(as ~~any~~defined ~~market~~in ~~and,~~Rule ~~accordingly, have no aggregate market value. The Registrant had~~ 12b-2~~,514,826.50 Units~~ of ~~Limited~~the ~~Liability~~Exchange ~~Company Interests outstanding as of August 13, 2013~~Act). Yes ¨ No þ

~~HEDGE~~The ~~FUND~~Registrant’s Units of Limited Liability Company Interests are not traded on any market and, accordingly, have no aggregate market value. The Registrant had 2,355,394.49 ~~MANAGERS~~Units ~~(DIVERSIFIED)~~of ~~LLC~~Limited Liability Company Interests outstanding as of November 13, 2013.

QUARTERLYTable REPORTof ON FORM 10-Q Contents

~~INDEX~~HEDGE FUND MANAGERS (DIVERSIFIED) LLC

~~PART I —~~QUARTERLY ~~FINANCIAL~~REPORT ~~INFORMATION~~ ON FORM 10-Q

Item 1. Financial Statements
Schedule of Investments June 30, 2013 (Unaudited) and December 31, 2012 (Audited)			1
Balance Sheet June 30, 2013 (Unaudited) and December 31, 2012 (Audited)			2
Statement of Operations (Unaudited) for the three and six months ended June 30, 2013 and June 30, 2012			3
Statement of Changes in Members’ Equity for the six months ended June 30, 2013 (Unaudited) and the year ended December 31, 2012 (Audited)			4
Statement of Cash Flows (Unaudited) for the six months ended June 30, 2013 and June 30, 2012			5
Notes to Financial Statements (Unaudited) June 30, 2013			6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results ofOperations			25
Item 3. Quantitative and Qualitative Disclosures About Market Risk			43
Item 4. Controls and Procedures			46
PART II — OTHER INFORMATION
Item 1. Legal Proceedings			47
Item 1A. Risk Factors			47
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			47
Item 3. Defaults Upon Senior Securities			47
Item 4. Reserved			47
Item 5. Other Information			47
Item 6. Exhibits			49
SIGNATURES			50
INDEX TO EXHIBITS			51
EX-31.1: CERTIFICATION
EX-31.2: CERTIFICATION
EX-32.1: CERTIFICATION

INDEX

PART I I — FINANCIAL INFORMATION

Item 1. Financial Statements


Item 1. Financial Statements

Schedule of Investments September 30, 2013 (Unaudited) and December 31, 2012 (Audited)			1
Balance Sheet September 30, 2013 (Unaudited) and December 31, 2012 (Audited)			2
Statement of Operations (Unaudited) for the three and nine months ended September 30, 2013 and September 30, 2012			3
Statement of Changes in Members’ Equity for the nine months ended September 30, 2013 (Unaudited) and the year ended December 31, 2012 (Audited)			4
Statement of Cash Flows (Unaudited) for the nine months ended September 30, 2013 and September 30, 2012			5
Notes to Financial Statements (Unaudited) September 30, 2013			6

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			26

Item 3. Quantitative and Qualitative Disclosures About Market Risk			46

Item 4. Controls and Procedures			49

PART II — OTHER INFORMATION

Item 1. Legal Proceedings			50

Item 1A. Risk Factors			50

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			50

Item 3. Defaults Upon Senior Securities			50

Item 4. Reserved			50

Item 5. Other Information			50

Item 6. Exhibits			52

SIGNATURES			53

INDEX TO EXHIBITS			54
EX-31.1: CERTIFICATION
EX-31.2: CERTIFICATION
EX-32.1: CERTIFICATION

HEDGETable FUND MANAGERSof (DIVERSIFIED) LLC Contents

~~Schedule~~PART ofI ~~Investments~~— FINANCIAL INFORMATION

~~June 30,~~Item ~~2013~~1. ~~and~~Financial ~~December 31, 2012~~ Statements

	(Unaudited)June 30, 2013					(Audited)December 31, 2012
Affiliated Investee	Fair value		% of members’equity(1)			Fair value		% of members’equity(1)
Equity Long/Short Managers LLC	$	136,432,555		41.16	%	$	155,842,998		41.94	%
Event Driven Managers LLC		93,852,554		28.31			99,506,680		26.78	%
Event Driven Managers Asset Tr		8,905,599		2.69			10,169,426		2.74	%
Global Tactical Trading Managers LLC		107,761,754		32.51			121,112,624		32.59	%
Relative Value Managers LLC		321,271		0.10			479,148		0.13	%
HFP Opportunistic Fund LLC		—		—			350,745		0.09	%
Total investments (cost $294,058,464 and $344,832,426, respectively)	$	347,273,733		104.77	%	$	387,461,621		104.27	%

HEDGE FUND MANAGERS (DIVERSIFIED) LLC

~~The~~Schedule ~~Company’s aggregate proportionate share~~ of ~~the~~Investments ~~following underlying investments of the Investees represented greater than 5% of the Company’s members’ equity at June 30, 2013 and December 31, 2012.~~

June 30, 2013 (Unaudited)

Investee

Underlyinginvestment

Strategy

Proportionateshare of fairvalue

% of members’equity(1)

Global Tactical Trading Managers LLC

Tactical Trading Managers(Managed Futures) LLC(2)(3)

Managed Futures

19,707,332

5.95

December 31, 2012 (Audited)

Investee

Underlyinginvestment

Strategy

Proportionateshare of fairvalue

% of members’equity(1)

Global Tactical Trading Managers LLC

Tactical Trading Managers(Managed Futures) LLC(2)(3)

Managed Futures

20,242,331

5.45

September 30, 2013 and December 31, 2012

(1) Members’ equity, used in the calculation of the fair value of each of the Investees and the underlying investment as a percentage of members’ equity, is reduced for member redemptions that are paid after the balance sheet date according to Statement of Financial Accounting Standards ASC 480, “Distinguishing Liabilities from Equity.” Member redemptions are included in redemptions payable in the Balance Sheet. Excluding Redemptions payable, total investments would represent 96.54% and 95.60% of members’ equity at June 30, 2013 and December 31, 2012, respectively.


	(Unaudited) September 30, 2013					(Audited) December 31, 2012
Affiliated Investee	Fair value		% of members’ equity⁽¹⁾			Fair value		% of members’ equity⁽¹⁾
Equity Long/Short Managers LLC	$	128,689,178		41.26	%	$	155,842,998		41.94	%
Event Driven Managers LLC		88,395,952		28.34			99,506,680		26.78
Event Driven Managers Asset Tr		7,905,775		2.53			10,169,426		2.74
Global Tactical Trading Managers LLC		98,612,609		31.61			121,112,624		32.59
Relative Value Managers LLC		303,416		0.10			479,148		0.13
HFP Opportunistic Fund LLC		—		—			350,745		0.09

Total investments (cost $269,653,547 and $344,832,426, respectively)	$	323,906,930		103.84	%	$	387,461,621		104.27	%

~~(2)~~The ~~Affiliated~~Company’s ~~investment~~aggregate ~~fund~~proportionate ~~with~~share aof ~~monthly~~the ~~liquidity~~following ~~term~~underlying investments of the Investees represented greater than 5% of the Company’s members’ equity at September 30, 2013 and December 31, 2012.

(3) On May 15, 2013, Commodities Managers (Managed Futures) LLC was renamed “Tactical Trading Managers (Managed Futures) LLC.”

September 30, 2013 (Unaudited)

Investee

Underlying
investment

Strategy

Proportionate
share of fair
value

% of members’
equity⁽¹⁾

Global Tactical Trading Managers LLC

Tactical Trading Managers
(Managed Futures) LLC⁽²⁾

Managed Futures

18,698,696

5.99

December 31, 2012 (Audited)

Investee

Underlying
investment

Strategy

Proportionate
share of fair
value

% of members’
equity⁽¹⁾

Global Tactical Trading Managers LLC

Tactical Trading Managers
(Managed Futures) LLC⁽²⁾

Managed Futures

20,242,331

5.45

~~The~~(1) ~~accompanying~~Members’ ~~notes~~equity, used in the calculation of the fair value of each of the Investees and the underlying investment as a percentage of members’ equity, is reduced for member redemptions that are anpaid ~~integral~~after ~~part~~the balance sheet date according to Statement of ~~these~~Financial ~~financial~~Accounting ~~statements~~Standards ASC 480, “Distinguishing Liabilities from Equity.” Member redemptions are included in redemptions payable in the Balance Sheet. Excluding Redemptions payable, total investments would represent 96.81% and 95.60% of members’ equity at September 30, 2013 and December 31, 2012, respectively.

1(2) Affiliated investment fund with a monthly liquidity term.

~~HEDGE~~The ~~FUND~~accompanying ~~MANAGERS~~notes ~~(DIVERSIFIED)~~are ~~LLC~~an integral part of these financial statements.

~~BALANCE~~1 ~~SHEET~~

June 30,Table 2013of and December 31, 2012 Contents

	(Unaudited)June 30, 2013		(Audited)December 31, 2012
ASSETS
Assets:
Investments in affiliated Investees, at fair value (cost $294,058,464 and $344,832,426, respectively)	$	347,273,733	$	387,461,621
Cash and cash equivalents		15,374,725		20,212,595
Total assets	$	362,648,458	$	407,674,216
LIABILITIES AND MEMBERS’ EQUITY
Liabilities:
Redemptions payable	$	28,264,359	$	33,690,336
Management fee payable		2,324,923		1,729,340
Accrued expenses and other liabilities		589,574		658,857
Total liabilities		31,178,856		36,078,533
Members’ equity:
Members’ equity (units outstanding 2,514,826.50 and 2,930,982.83, respectively)		331,469,602		371,595,683
Total liabilities and members’ equity	$	362,648,458	$	407,674,216
Analysis of members’ equity:
Net capital contributions, accumulated net investment income/(loss) and realized gain/(loss) on investments	$	278,254,333	$	328,966,488
Accumulated net unrealized gain/(loss) on investments		53,215,269		42,629,195
Total members’ equity(1)	$	331,469,602	$	371,595,683

HEDGE FUND MANAGERS (DIVERSIFIED) LLC

~~(1)~~BALANCE ~~Refer~~SHEET ~~to Note 8 for units outstanding and NAV per unit amounts by series.~~

~~The~~September 30, ~~accompanying~~2013 ~~notes~~and ~~are~~December 31, an2012 ~~integral part of these financial statements.~~


	(Unaudited) September 30, 2013		(Audited) December 31, 2012
ASSETS
Assets:
Investments in affiliated Investees, at fair value (cost $269,653,547 and $344,832,426, respectively)	$	323,906,930	$	387,461,621
Cash and cash equivalents		13,322,304		20,212,595

Total assets	$	337,229,234	$	407,674,216

LIABILITIES AND MEMBERS’ EQUITY
Liabilities:
Redemptions payable	$	22,766,379	$	33,690,336
Management fee payable		1,796,146		1,729,340
Accrued expenses and other liabilities		752,434		658,857

Total liabilities		25,314,959		36,078,533
Members’ equity:
Members’ equity (units outstanding 2,355,394.49 and 2,930,982.83, respectively)		311,914,275		371,595,683

Total liabilities and members’ equity	$	337,229,234	$	407,674,216

Analysis of members’ equity:
Net capital contributions, accumulated net investment income/(loss) and realized gain/(loss) on investments	$	257,660,892	$	328,966,488
Accumulated net unrealized gain/(loss) on investments		54,253,383		42,629,195

Total members’ equity⁽¹⁾	$	311,914,275	$	371,595,683

~~HEDGE~~(1) ~~FUND~~Refer ~~MANAGERS~~to ~~(DIVERSIFIED)~~Note ~~LLC~~8 for units outstanding and NAV per unit amounts by series.

~~STATEMENT~~The OFaccompanying ~~OPERATIONS~~notes are an integral part of these financial statements.

~~(Unaudited)~~2

ForTable theof three and six months ended June 30, 2013 and June 30, 2012 Contents

	Three Months EndedJune 30,						Six Months EndedJune 30,
	2013			2012			2013			2012
Dividend income	$	351		$	3,192		$	1,301		$	5,600
Expenses:
Management fee		1,128,720			1,625,405			2,324,923			3,312,655
Professional fees		245,836			326,497			544,088			638,847
Administration fee		24,935			32,882			50,950			66,754
Miscellaneous expenses		24,121			62,636			75,884			115,540
Total expenses		1,423,612			2,047,420			2,995,845			4,133,796
Net investment income/(loss)		(1,423,261	)		(2,044,228	)		(2,994,544	)		(4,128,196	)
Realized and unrealized gain/(loss) on investments in affiliated Investees:
Net realized gain/(loss)		4,109,921			4,482,646			6,952,355			8,925,699
Net change in unrealized gain/(loss)		(2,167,845	)		(9,921,462	)		10,586,074			5,423,588
Net realized and unrealized gain/(loss)		1,942,076			(5,438,816	)		17,538,429			14,349,287
Net income/(loss)	$	518,815		$	(7,483,044	)	$	14,543,885		$	10,221,091

HEDGE FUND MANAGERS (DIVERSIFIED) LLC

~~The~~STATEMENT ~~accompanying~~OF ~~notes~~OPERATIONS ~~are an integral part of these financial statements.~~

3(Unaudited)

~~HEDGE~~For ~~FUND~~the ~~MANAGERS~~three ~~(DIVERSIFIED)~~and ~~LLC~~nine months ended September 30, 2013 and September 30, 2012

STATEMENT OF CHANGES IN MEMBERS’ EQUITY


	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Dividend income	$	212		$	3,185		$	1,513		$	8,785
Expenses:
Management fee		1,042,239			1,407,032			3,367,162			4,719,687
Professional fees		246,717			343,803			790,805			982,650
Administration fee		23,551			29,388			74,501			96,142
Miscellaneous expenses		46,023			38,217			121,907			153,757

Total expenses		1,358,530			1,818,440			4,354,375			5,952,236

Net investment income/(loss)		(1,358,318	)		(1,815,255	)		(4,352,862	)		(5,943,451	)

Realized and unrealized gain/(loss) on investments in affiliated Investees:
Net realized gain/(loss)		3,488,676			15,527,219			10,441,031			24,452,918
Net change in unrealized gain/(loss)		1,038,114			(6,466,331	)		11,624,188			(1,042,743	)

Net realized and unrealized gain/(loss)		4,526,790			9,060,888			22,065,219			23,410,175

Net income/(loss)	$	3,168,472		$	7,245,633		$	17,712,357		$	17,466,724

~~For~~The ~~the~~accompanying ~~six~~notes ~~months~~are ~~ended~~an ~~June 30,~~integral ~~2013~~part ~~(Unaudited)~~of these financial statements.

~~and~~3 ~~the year ended December 31, 2012 (Audited)~~

	Managingmember’sequity			Members’equity			Totalmembers’equity
Members’ equity at December 31, 2011	$	—		$	522,278,771		$	522,278,771
Subscriptions		—			6,491,936			6,491,936
Redemptions		(60,416	)		(179,612,320	)		(179,672,736	)
Allocations of net income/(loss):
Incentive allocation		60,416			(60,416	)		—
Pro-rata allocation		—			22,497,712			22,497,712
Members’ equity at December 31, 2012	$	—		$	371,595,683		$	371,595,683
Subscriptions		—			1,250,000			1,250,000
Redemptions		(42,580	)		(55,877,386	)		(55,919,966	)
Allocations of net income/(loss):
Incentive allocation		618,578			(618,578	)		—
Pro-rata allocation		—			14,543,885			14,543,885
Members’ equity at June 30, 2013	$	575,998		$	330,893,604		$	331,469,602

~~The~~HEDGE ~~accompanying~~FUND ~~notes~~MANAGERS ~~are~~(DIVERSIFIED) anLLC ~~integral part of these financial statements.~~

4STATEMENT OF CHANGES IN MEMBERS’ EQUITY

~~HEDGE~~For ~~FUND~~the ~~MANAGERS~~nine months ended September 30, 2013 (~~DIVERSIFIED~~Unaudited) ~~LLC~~

~~STATEMENT~~and OFthe ~~CASH~~year ~~FLOWS~~ended December 31, 2012 (Audited)

(Unaudited)


	Managing member’s equity			Members’ equity			Total members’ equity
Members’ equity at December 31, 2011	$	—		$	522,278,771		$	522,278,771
Subscriptions		—			6,491,936			6,491,936
Redemptions		(60,416	)		(179,612,320	)		(179,672,736	)
Allocations of net income/(loss):
Incentive allocation		60,416			(60,416	)		—
Pro-rata allocation		—			22,497,712			22,497,712

Members’ equity at December 31, 2012	$	—		$	371,595,683		$	371,595,683
Subscriptions		—			1,250,000			1,250,000
Redemptions		(89,501	)		(78,554,264	)		(78,643,765	)
Allocations of net income/(loss):
Incentive allocation		773,182			(773,182	)		—
Pro-rata allocation		—			17,712,357			17,712,357

Members’ equity at September 30, 2013	$	683,681		$	311,230,594		$	311,914,275

~~For~~The ~~the~~accompanying ~~six~~notes ~~months~~are ~~ended~~an ~~June 30,~~integral ~~2013~~part ~~and~~of ~~June 30,~~these ~~2012~~financial statements.

	2013			2012
Cash flows from operating activities
Net income/(loss)	$	14,543,885		$	10,221,091
Adjustments to reconcile net income/(loss) to net cash provided by (used in) operating activities:
Purchases of investments in affiliated Investees		(1,489,321	)		—
Proceeds from sales of investments in affiliated Investees		59,215,638			39,667,667
Net realized (gain)/loss on investments in affiliated Investees		(6,952,355	)		(8,925,699	)
Net change in unrealized (gain)/loss on investments in affiliated Investees		(10,586,074	)		(5,423,588	)
Increase/(decrease) in operating liabilities:
Management fee payable		595,583			1,049,668
Accrued expenses and other liabilities		(69,283	)		(47,165	)
Net cash from operating activities		55,258,073			36,541,974
Cash flows from financing activities
Subscriptions		1,250,000			6,241,936
Redemptions		(61,345,943	)		(46,900,061	)
Net cash from financing activities		(60,095,943	)		(40,658,125	)
Net change in cash and cash equivalents		(4,837,870	)		(4,116,151	)
Cash and cash equivalents at beginning of period		20,212,595			30,701,757
Cash and cash equivalents at end of period	$	15,374,725		$	26,585,606

TheTable accompanying notes are an integral part of these financial statements. Contents

5HEDGE FUND MANAGERS (DIVERSIFIED) LLC

~~HEDGE~~STATEMENT ~~FUND~~OF ~~MANAGERS~~CASH ~~(DIVERSIFIED)~~FLOWS ~~LLC~~

~~NOTES TO~~(Unaudited) ~~FINANCIAL STATEMENTS~~

~~(Unaudited)~~For the nine months ended September 30, 2013 and September 30, 2012

June 30, 2013


	2013			2012
Cash flows from operating activities
Net income/(loss)	$	17,712,357		$	17,466,724
Adjustments to reconcile net income/(loss) to net cash provided by (used in) operating activities:
Purchases of investments in affiliated Investees		(1,489,321	)		—
Proceeds from sales of investments in affiliated Investees		87,109,231			111,735,482
Net realized (gain)/loss on investments in affiliated Investees		(10,441,031	)		(24,452,918	)
Net change in unrealized (gain)/loss on investments in affiliated Investees		(11,624,188	)		1,042,743
Increase/(decrease) in operating liabilities:
Management fee payable		66,806			263,699
Accrued expenses and other liabilities		93,577			185,364

Net cash from operating activities		81,427,431			106,241,094


Cash flows from financing activities
Subscriptions		1,250,000			6,491,936
Redemptions		(89,567,722	)		(119,547,247	)

Net cash from financing activities		(88,317,722	)		(113,055,311	)

Net change in cash and cash equivalents		(6,890,291	)		(6,814,217	)
Cash and cash equivalents at beginning of period		20,212,595			30,701,757

Cash and cash equivalents at end of period	$	13,322,304		$	23,887,540

~~Note 1 -~~The ~~Organization~~accompanying notes are an integral part of these financial statements.

~~Hedge~~5 Fund Managers (Diversified) LLC (the “Company”), formerly Goldman Sachs Hedge Fund Partners, LLC, was organized as a limited liability company, pursuant to the laws of the State of Delaware, and commenced operations on April 1, 2002 for the principal purpose of investing in the equity long/short, event driven, relative value and tactical trading hedge fund sectors (the “Investment Sectors”). Currently, substantially all of the Company’s assets are allocated to Equity Long/Short Managers LLC (“ELSM”), Event Driven Managers LLC (“EDM”), and Global Tactical Trading Managers LLC (“GTTM”) (collectively, the “Investment Funds”). The balance of the Company’s assets are invested in Event Driven Managers Asset Tr (“EDMAT”), Relative Value Managers LLC (“RVM”) and HFP Opportunistic Fund LLC (“HFPO” and, together with EDMAT, RVM and the Investment Funds, the “Investees”). Each of these Investees invests indirectly through investment vehicles (“Advisor Funds”) managed by such trading advisors (the “Advisors”). In addition, the Company may, directly or indirectly, allocate assets to Advisors whose principal investment strategies are not within one of the Investment Sectors. Goldman Sachs Hedge Fund Strategies LLC (“HFS”), a wholly-owned subsidiary of The Goldman Sachs Group, Inc., is the managing member (the “Managing Member”) and commodity pool operator of the Company and a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended. SEI Global Services, Inc. (“SEI”) serves as administrator of the Company.

Note 2Table -of Significant accounting policies Contents

~~Basis~~HEDGE ofFUND ~~presentation~~MANAGERS (DIVERSIFIED) LLC

~~The~~NOTES ~~financial~~TO ~~statements~~FINANCIAL ~~are~~STATEMENTS ~~prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), and are expressed in United States dollars.~~

~~Use of estimates~~ (Unaudited)

~~The preparation of financial statements in conformity with U.S.~~September ~~GAAP~~30, ~~requires~~2013 ~~management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates.~~

~~Fair~~Note ~~value~~1 - Organization ~~of investments~~

~~The~~Hedge Fund Managers (Diversified) LLC (the “Company”), isformerly anGoldman ~~investment~~Sachs Hedge Fund Partners, LLC, was organized as a limited liability company, ~~for~~pursuant ~~financial~~to ~~reporting~~the ~~purposes~~laws of the State of Delaware, and ~~accordingly~~commenced ~~carries~~operations ~~its~~on ~~investments~~April 1, at2002 ~~fair~~for the principal purpose of investing in the equity long/short, event driven, relative value and tactical trading hedge fund sectors (the “Investment Sectors”). Currently, substantially all of the Company’s assets are allocated to Equity Long/Short Managers LLC (“ELSM”), Event Driven Managers LLC (“EDM”), and Global Tactical Trading Managers LLC (“GTTM”) (collectively, the “Investment Funds”). The balance of the Company’s assets are invested in Event Driven Managers Asset Tr (“EDMAT”), Relative Value Managers LLC (“RVM”) and previously invested in HFP Opportunistic Fund LLC (“HFPO” and, together with EDMAT, RVM and the Investment Funds, the “Investees”). Each of these Investees invests indirectly through investment vehicles (“Advisor Funds”) managed by such trading advisors (the “Advisors”). In addition, the Company may, directly or indirectly, allocate assets to Advisors whose principal investment strategies are not within one of the Investment Sectors. Goldman Sachs Hedge Fund Strategies LLC (“HFS”), a wholly-owned subsidiary of The Goldman Sachs Group, Inc., is the managing member (the “Managing Member”) and commodity pool operator of the Company and a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended. SEI Global Services, Inc. (“SEI”) serves as administrator of the Company.

~~Realized~~Note ~~and~~2 - Significant ~~unrealized~~accounting ~~gain/(loss)~~policies ~~on investments in affiliated Investees~~

~~Realized~~Basis ~~and unrealized gain/(loss) on investments in affiliated Investees includes the change in fair value~~ of ~~each~~presentation Investee. Fair values are determined utilizing net asset value (“NAV”) information supplied by each individual Investee, which includes realized and unrealized gains/(losses) on underlying investments of the Investees as well as management fees and incentive fees charged by the Advisors, administration fees and all other income/expenses of the Investees. See “Note 3 — Investments in affiliated Investees” for further information.

6The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), and are expressed in United States dollars.

~~HEDGE~~Use ~~FUND~~of ~~MANAGERS~~estimates ~~(DIVERSIFIED) LLC~~

~~NOTES~~The preparation of financial statements in conformity with U.S. TOGAAP ~~FINANCIAL~~requires ~~STATEMENTS~~management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates.

~~(Unaudited)~~Fair value of investments

~~June~~The ~~30,~~Company ~~2013~~is an investment company for financial reporting purposes and accordingly carries its investments at fair value.

~~Note 2~~Realized -and ~~Significant~~unrealized ~~accounting~~gain/(loss) ~~policies~~on investments in affiliated Investees

~~Cash~~Realized and ~~cash~~unrealized ~~equivalents~~gain/(loss) on investments in affiliated Investees includes the change in fair value of each Investee. Fair values are determined utilizing net asset value (“NAV”) information supplied by each individual Investee, which includes realized and unrealized gains/(losses) on underlying investments of the Investees as well as management fees and incentive fees charged by the Advisors, administration fees and all other income/expenses of the Investees. See “Note 3 — Investments in affiliated Investees” for further information.

~~Cash~~6 and cash equivalents consist of deposits held at banks or money market funds. Cash equivalents, consisting of investments in money market funds, are held at financial institutions to which the Company is exposed to credit risk. Money market funds are valued at net asset value per share.

AllocationTable of net income/(loss) Contents

~~Net~~HEDGE ~~income/~~FUND MANAGERS (~~loss~~DIVERSIFIED) isLLC allocated monthly to the capital account of each member in the ratio that the balance of each member’s capital account bears to the total balance of all members’ capital accounts. The Managing Member earns an annual incentive allocation equal to 5.0% of any new net appreciation in the NAV of each series. Any net depreciation in the NAV of a series for a fiscal year must be recouped prior to the Managing Member earning an incentive allocation in future years. The incentive allocation accrues daily and is credited to the capital account of the Managing Member as of December 31 of each year. In the event of an intra-year redemption, any related accrued incentive allocation will be credited to the Managing Member upon redemption.

~~Subscriptions~~NOTES TO ~~and~~FINANCIAL ~~redemptions~~STATEMENTS

~~Subscriptions~~(Unaudited) to the Company can be made as of the first day of each calendar month or at the sole discretion of the Managing Member. Redemptions from the Company can be made at the end of each calendar quarter, upon 91 days’ prior written notice after a twelve-month holding period or at such other times as determined in the sole discretion of the Managing Member, as provided for in the Company’s limited liability company agreement.

~~Income~~September ~~taxes~~30, 2013

~~The~~Note ~~Company is taxed as a partnership for U.S.~~2 ~~federal income tax purposes. The members include their distributive share of the Company’s taxable income or loss on their respective income tax returns. Accordingly, no U.S.~~- ~~federal~~Significant ~~income~~accounting ~~tax liability or expense has been recorded in the financial statements of the Company.~~ policies

~~The~~Cash ~~Managing Member has reviewed the Company’s tax positions for the open tax years by major jurisdictions~~ and ~~has~~cash ~~concluded~~equivalents that no provision for taxes is required in the Company’s financial statements. Such open tax years vary by jurisdiction and remain subject to examination by the foreign taxing authorities. The tax liability is also subject to ongoing interpretation of laws by taxing authorities.

~~Recent~~Cash ~~Accounting~~and ~~Pronouncements~~cash equivalents consist of deposits held at banks or money market funds. Cash equivalents, consisting of investments in money market funds, are held at financial institutions to which the Company is exposed to credit risk. Money market funds are valued at net asset value per share.

InAllocation ~~June~~of ~~2013,~~net ~~the Financial Accounting Standards Board~~ income/(~~the “FASB”~~loss) issued Accounting Standard Update (“ASU”) No. 2013-08, Financial Services — Investment Companies (Topic 946), which creates a two-tiered approach to assess whether an entity is an investment company. The guidance will also require an investment company to measure noncontrolling ownership interests in other investment companies at fair value and will require additional disclosures relating to investment company status, any changes thereto and information about financial support provided or contractually required to be provided to any of the investment company’s investees. The guidance is effective for financial statements with fiscal years beginning on or after December 15, 2013 and interim periods within those fiscal years. The adoption of ASU No. 2013-08 will not materially affect the Company’s financial condition, results of operations or cash flows.

~~Note~~Net income/(loss) is allocated monthly to the capital account of each member in the ratio that the balance of each member’s capital account bears to the total balance of all members’ capital accounts. The Managing Member earns an annual incentive allocation equal to 5.0% of any new net appreciation in the NAV of each series. Any net depreciation in the NAV of a series for a fiscal year must be recouped prior to the Managing Member earning an incentive allocation in future years. The incentive allocation accrues daily and is credited to the capital account of the Managing Member as of December 331 of each year. In the event of an intra-year ~~Investments~~redemption, inany ~~affiliated~~related ~~Investees~~accrued incentive allocation will be credited to the Managing Member upon redemption.

~~The~~Subscriptions ~~Investees seek capital appreciation over time by investing primarily within one of the following Investment Sectors: the equity long/short sector, the event driven sector, the relative value sector~~ and ~~the~~redemptions ~~tactical trading sector. The Company’s investments in affiliated Investees are subject to the terms and conditions of the operating~~

7Subscriptions to the Company can be made as of the first day of each calendar month or at the sole discretion of the Managing Member. The Managing Member has determined that effective December 1, 2013, the Company will only accept subscriptions from existing investors and will no longer accept subscriptions from new investors. The Company may begin accepting subscriptions again from new qualified investors at any time at the sole discretion of the Managing Member. Redemptions from the Company can be made at the end of each calendar quarter, upon 91 days’ prior written notice after a twelve-month holding period or at such other times as determined in the sole discretion of the Managing Member, as provided for in the Company’s limited liability company agreement.

~~HEDGE~~Income ~~FUND~~taxes ~~MANAGERS (DIVERSIFIED) LLC~~

~~NOTES~~The Company is taxed as a partnership for U.S. TOfederal ~~FINANCIAL~~income ~~STATEMENTS~~tax purposes. The members include their distributive share of the Company’s taxable income or loss on their respective income tax returns. Accordingly, no U.S. federal income tax liability or expense has been recorded in the financial statements of the Company.

~~(Unaudited)~~The Managing Member has reviewed the Company’s tax positions for the open tax years by major jurisdictions and has concluded that no provision for taxes is required in the Company’s financial statements. Such open tax years vary by jurisdiction and remain subject to examination by the foreign taxing authorities. The tax liability is also subject to ongoing interpretation of laws by taxing authorities.

~~June~~Recent ~~30,~~Accounting ~~2013~~Pronouncements

~~Note 3~~ Investment Companies (Accounting Standards Codification (“ASC”) 946). In June 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-08, ~~Investments~~“Financial Services — Investment Companies (Topic 946) — Amendments to the Scope, Measurement, and Disclosure Requirements.” ASU No. 2013-08 clarifies the approach to be used for determining whether an entity is an investment company and provides new measurement and disclosure requirements. ASU No. 2013-08 is effective for interim and annual reporting periods in ~~affiliated~~fiscal ~~Investees~~years that begin after December 15, 2013. Earlier application is prohibited. Adoption of ASU No. 2013-08 is not expected to materially affect the Company ’s financial condition, results of operations, or cash flows.

~~agreements~~7 of the respective affiliated Investees. The investments in affiliated Investees are carried at fair value. Fair values are determined utilizing NAV information supplied by each individual affiliated Investee. HFS is the managing member of each of the affiliated Investees. HFS does not charge the Company any management fee or incentive allocation at the Investee level. Realized gains/(losses) on the redemption of investments in affiliated Investees are calculated using the specific identification cost method.

PerformanceTable of the Company in any period will be dependent upon the performance in the relevant period by the affiliated Investees and the weighted average percentage of the Company’s assets in each of the affiliated Investees during the period. In addition, performance is determined by the Investment Funds’ asset allocation with the various Advisors and the performance of each of their Advisor Funds and interests held by EDMAT, RVM and HFPO. NAVs received by the Investees from, or on behalf of, the Advisor Funds are based on the fair value of the Advisor Funds’ underlying investments in accordance with policies established by each Advisor Fund. HFS, in its capacity as managing member of the Company, performs additional procedures including Advisor due diligence reviews and analytical procedures with respect to the NAV provided by the Advisors to ensure conformity with U.S. GAAP. The Managing Member has assessed factors including, but not limited to, Advisors’ compliance with U.S. GAAP applicable to fair value measurements and disclosures, price transparency and valuation procedures in place. NAV provided by the Advisors may differ from the audited values received subsequent to the date of the Company’s NAV determination. In such cases, the Company will evaluate the materiality of any such differences. Contents

~~The~~HEDGE ~~following~~FUND ~~table summarizes~~MANAGERS ~~the~~(DIVERSIFIED) ~~cost~~LLC ~~of the Company’s investments in the affiliated Investees at June 30, 2013 and December 31, 2012:~~

Investee	June 30, 2013		December 31, 2012
ELSM	$	117,556,499	$	142,538,824
EDM		78,845,167		89,089,893
EDMAT		9,038,255		10,519,992
GTTM		88,159,719		101,372,826
RVM		458,824		601,763
HFPO		—		709,128
Total	$	294,058,464	$	344,832,426

NOTES TO FINANCIAL STATEMENTS

~~The following table summarizes the Company’s realized and unrealized gain/~~(~~loss~~Unaudited) ~~on investments in affiliated Investees for the three and six months ended June 30, 2013 and June 30, 2012:~~

				Three Months Ended June 30,						Six Months Ended June 30,
Investee	Liquidity			2013			2012			2013			2012
ELSM		(1	)	$	(427,943	)	$	(2,806,858	)	$	7,589,558		$	8,803,011
EDM		(2	)		2,034,319			(321,211	)		6,322,618			4,796,394
EDMAT		(3	)		(178,915	)		(69,606	)		225,494			(441,691	)
GTTM		(4	)		545,378			(2,219,440	)		3,649,129			1,307,200
RVM		(5	)		(30,763	)		(11,579	)		(35,729	)		119,830
HFPO		(6	)		—			(10,122	)		(212,641	)		(235,457	)
Total				$	1,942,076		$	(5,438,816	)	$	17,538,429		$	14,349,287

September 30, 2013

~~(1)~~Note ~~Redemptions~~3 - Investments ~~can~~in beaffiliated ~~made~~Investees ~~quarterly with 61 days’ notice, or at the sole discretion of the Managing Member.~~

8The Investees seek capital appreciation over time by investing primarily within one of the following Investment Sectors: the equity long/short sector, the event driven sector, the relative value sector and the tactical trading sector. The Company’s investments in affiliated Investees are subject to the terms and conditions of the operating agreements of the respective affiliated Investees. The investments in affiliated Investees are carried at fair value. Fair values are determined utilizing NAV information supplied by each individual affiliated Investee. HFS is the managing member of each of the affiliated Investees. HFS does not charge the Company any management fee or incentive allocation at the Investee level. Realized gains/(losses) on the redemption of investments in affiliated Investees are calculated using the specific identification cost method.

~~HEDGE~~Performance ~~FUND~~of ~~MANAGERS~~the ~~(DIVERSIFIED)~~Company ~~LLC~~in any period will be dependent upon the performance in the relevant period by the affiliated Investees and the weighted average percentage of the Company’s assets in each of the affiliated Investees during the period. In addition, performance is determined by the Investment Funds’ asset allocation with the various Advisors and the performance of each of their Advisor Funds and interests held by EDMAT, RVM and interests previously held by HFPO, which was liquidated in March 2013. NAVs received by the Investees from, or on behalf of, the Advisor Funds are based on the fair value of the Advisor Funds’ underlying investments in accordance with policies established by each Advisor Fund. HFS, in its capacity as managing member of the Company, performs additional procedures including Advisor due diligence reviews and analytical procedures with respect to the NAV provided by the Advisors to ensure conformity with U.S. GAAP. The Managing Member has assessed factors including, but not limited to, Advisors’ compliance with U.S. GAAP applicable to fair value measurements and disclosures, price transparency and valuation procedures in place. NAV provided by the Advisors may differ from the audited values received subsequent to the date of the Company’s NAV determination. In such cases, the Company will evaluate the materiality of any such differences.

~~NOTES~~The following table summarizes the cost of the Company’s investments in the affiliated Investees at September TO30, ~~FINANCIAL~~2013 ~~STATEMENTS~~and December 31, 2012:

(Unaudited)


Investee	September 30, 2013		December 31, 2012
ELSM	$	105,902,579	$	142,538,824
EDM		72,940,653		89,089,893
EDMAT		8,123,352		10,519,992
GTTM		82,228,139		101,372,826
RVM		458,824		601,763
HFPO		—		709,128

Total	$	269,653,547	$	344,832,426

~~June~~8 ~~30, 2013~~

Note 3 -Table Investmentsof in affiliated Investees Contents

~~(2)~~HEDGE ~~Redemptions~~FUND ~~can~~MANAGERS be(DIVERSIFIED) ~~made~~LLC ~~quarterly on or after the first anniversary of the initial purchase of the units with at least 91 days’ notice, or at the sole discretion of the Managing Member.~~

~~(3)~~NOTES TO ~~EDMAT~~FINANCIAL ~~does~~STATEMENTS not provide investors with a voluntary redemption right. Pursuant to the terms of the trust agreement for EDMAT, distributions will be made to holders of interests in EDMAT as EDMAT receives proceeds in respect of its Advisors. The estimated remaining holding periods of its remaining underlying investments range from one to five years.

(4Unaudited) ~~Redemptions can be made quarterly with 60 days’ notice, or at the sole discretion of the Managing Member.~~

~~(5) RVM ceased its trading activities effective on July 1~~September 30, ~~2009,~~2013 and will dissolve at the time all assets are liquidated, liabilities are satisfied and liquidation proceeds are distributed through payment of a liquidating distribution. RVM suspended redemptions pending the completion of the liquidation proceedings. The estimated remaining holding periods of its remaining underlying investments range from one to five years.

~~(6)~~Note ~~HFPO~~3 - Investments ~~ceased its trading activities effective December 31, 2012 and was subsequently liquidated~~ in ~~March~~affiliated ~~2013.~~Investees

The ~~investment~~following ~~strategy~~table summarizes the Company’s realized and unrealized gain/(loss) on investments in affiliated Investees for ~~each~~the ~~Investee~~three isand asnine ~~follows~~months ended September 30, 2013 and September 30, 2012:

Equity Long/Short Managers LLC


				Three Months Ended September 30,						Nine Months Ended September 30,
Investee	Liquidity			2013			2012			2013			2012
ELSM		(1	)	$	4,756,624		$	3,803,449		$	12,346,182		$	12,606,460
EDM		(2	)		1,543,398			2,067,581			7,866,016			6,863,975
EDMAT		(3	)		(106,232	)		52,838			119,262			(388,853	)
GTTM		(4	)		(1,649,145	)		3,225,445			1,999,984			4,532,645
RVM		(5	)		(17,855	)		(775	)		(53,584	)		119,055
HFPO		(6	)		—			(87,650	)		(212,641	)		(323,107	)

Total				$	4,526,790		$	9,060,888		$	22,065,219		$	23,410,175

~~ELSM~~(1) ~~seeks~~Redemptions ~~risk-adjusted~~can ~~absolute~~be ~~returns with~~made ~~volatility~~quarterly ~~lower~~with ~~than~~61 ~~the~~days’ ~~broad equity markets~~notice, ~~primarily~~or ~~through~~at ~~long and short investment opportunities in~~ the ~~global~~sole ~~equity~~discretion ~~markets. Strategies generally involve making long and short equity investments, often based on the Advisor’s assessment~~ of ~~fundamental value compared to market price, although Advisors employ a wide range of styles. Strategies that may be utilized in~~ the ~~equity~~Managing ~~long/short sector include catalyst-activist, consumer, diversified, energy, growth, long-bias, real estate, multi-strategy, short-term trading and value~~Member. ~~Other strategies may be employed as well.~~

~~Event~~(2) ~~Driven~~Redemptions ~~Managers~~can ~~LLC~~ be made quarterly on or after the first anniversary of the initial purchase of the units with at least 91 days’ notice, or at the sole discretion of the Managing Member.

~~EDM~~(3) ~~seeks~~EDMAT ~~risk-adjusted~~does ~~absolute~~not ~~returns~~provide investors with ~~volatility~~a ~~and~~voluntary ~~correlation~~redemption ~~lower~~right. ~~than~~Pursuant ~~the broad equity markets by allocating assets~~ to ~~Advisors that operate primarily in~~ the ~~global~~terms event driven sector. Event driven strategies seek to identify security price changes resulting from corporate events such as restructurings, mergers, takeovers, spin-offs, and other special situations. Corporate event arbitrageurs generally choose their investments based on their perceptions of the ~~likelihood~~trust ~~that~~agreement ~~the~~for ~~event or transaction will occur~~EDMAT, ~~the~~distributions ~~amount of time that the process~~ will ~~take,~~be ~~and~~made ~~the~~to ~~perceived~~holders ~~ratio~~ of ~~return~~interests ~~to risk.~~in ~~Strategies~~EDMAT ~~that~~as ~~may~~EDMAT bereceives ~~utilized~~proceeds in ~~the~~respect ~~event~~of ~~driven~~its ~~sector~~Advisors. ~~include~~The ~~catalyst-activist,~~estimated ~~merger~~remaining ~~arbitrage/special~~holding ~~situations,~~periods ~~credit~~of ~~opportunities/distressed~~its ~~securities~~remaining ~~and~~underlying ~~multi-strategy~~investments ~~investing.~~range ~~Other~~from ~~strategies~~one ~~may~~to befive ~~employed as well~~years.

~~Event~~(4) ~~Driven~~Redemptions ~~Managers~~can ~~Asset~~be Trmade quarterly with 60 days’ notice, or at the sole discretion of the Managing Member.

~~HFS,~~(5) ~~the~~RVM ~~managing~~ceased ~~member of EDM, created EDMAT, a Delaware statutory trust, for the benefit of~~ its ~~investors,~~trading ~~including~~activities ~~the~~effective ~~Company.~~on ~~Goldman~~July ~~Sachs Trust Company~~1, ~~a Delaware Corporation~~2009, isand ~~the trustee~~will ofdissolve ~~EDMAT~~at (the ~~“Trustee”).~~time ~~The~~all ~~Trustee appointed HFS as the “Special Assets Direction Advisor,” responsible for, among other duties, disposition of EDMAT~~ assets. Onare ~~March 31~~liquidated, ~~2009,~~liabilities ~~EDM~~are ~~transferred~~satisfied toand ~~EDMAT~~liquidation ~~its interest~~proceeds inare ~~certain~~distributed ~~illiquid~~through ~~investments,~~payment ~~including~~of ~~illiquid~~a ~~investments~~liquidating ~~made~~distribution. byRVM ~~Advisor~~suspended ~~Funds,~~redemptions aspending ~~well~~the ascompletion ~~liquidating~~of ~~vehicles that~~ the ~~Advisors~~liquidation ~~formed as liquidity decreased for previously liquid investments, such as certain credit instruments~~proceedings. ~~EDM~~ ~~transferred~~The toestimated ~~EDMAT~~remaining ~~the~~holding ~~economic~~periods ~~risks and benefits~~ of its ~~interests~~remaining inunderlying ~~such~~investments ~~assets.~~range Infrom ~~connection~~one ~~with~~to ~~such~~five ~~transfer, each investor in EDM, including the Company, was issued its pro-rata share of EDMAT interests~~ years.

9(6) HFPO ceased its trading activities effective December 31, 2012 and was subsequently liquidated in March 2013.

~~HEDGE~~The ~~FUND~~investment ~~MANAGERS~~strategy ~~(DIVERSIFIED)~~for ~~LLC~~each Investee is as follows:

~~NOTES TO~~Equity ~~FINANCIAL~~Long/Short ~~STATEMENTS~~Managers LLC

~~(Unaudited)~~ELSM seeks risk-adjusted absolute returns with volatility lower than the broad equity markets, primarily through long and short investment opportunities in the global equity markets. Strategies generally involve making long and short equity investments, often based on the Advisor’s assessment of fundamental value compared to market price, although Advisors employ a wide range of styles. Strategies that may be utilized in the equity long/short sector include catalyst-activist, consumer, diversified, energy, growth, long-bias, real estate, multi-strategy, short-term trading and value. Other strategies may be employed as well.

~~June~~Event ~~30,~~Driven ~~2013~~Managers LLC

~~Note 3~~ EDM seeks risk-adjusted ~~Investments~~absolute returns with volatility and correlation lower than the broad equity markets by allocating assets to Advisors that operate primarily in ~~affiliated~~the ~~Investees~~global event driven sector. Event driven strategies seek to identify security price changes resulting from corporate events such as restructurings, mergers, takeovers,

~~based~~9 on its ownership in EDM as of the transfer date. Distributions from EDMAT in respect of EDMAT interests will be made to holders of EDMAT interests, including the Company, as amounts in respect of the assets transferred to EDMAT are received from the Advisors. However, the actual timing of these distributions will be dependent on the Advisors’ ability to liquidate positions as market conditions allow, and it could be a significant period of time before such positions are realized or disposed of.

GlobalTable Tacticalof Trading Managers LLC Contents

~~GTTM~~HEDGE ~~seeks~~FUND ~~long-term~~MANAGERS ~~risk-adjusted~~(DIVERSIFIED) ~~returns~~LLC by allocating its assets to Advisors that employ strategies primarily within the tactical trading sector. Tactical trading strategies are directional trading strategies that generally fall into one of the following two categories: managed futures strategies and global macro strategies. Managed futures strategies involve trading in the global futures and currencies markets, generally using systematic or discretionary approaches. Global macro strategies generally utilize analysis of macroeconomic, geopolitical and financial conditions to develop views on country, regional or broader economic themes and then seek to capitalize on such views by trading in securities, commodities, interest rates, currencies and various financial instruments.

~~Relative~~NOTES TO ~~Value~~FINANCIAL ~~Managers~~STATEMENTS ~~LLC~~

RVM ceased its trading activities effective July 1, 2009 and will dissolve at the time all assets are liquidated, liabilities are satisfied and liquidation proceeds are distributed through payment of a liquidating distribution. Investors in RVM (~~including the Company~~Unaudited) ~~will receive proceeds from the liquidation over time as RVM receives redemption proceeds from Advisor Funds.~~

~~Management~~September ~~fees~~30, ~~and~~2013 ~~incentive allocation/fees~~

HFS does not charge the Company any management fee or incentive allocation at the Investee level. The underlying Advisor Funds held by the Investees charge management and incentive allocation/fees to the Investees. The following table reflects the contractual weighted average Advisors’ management fee and incentive allocation/fee rates at the Investee level for the six months ended JuneNote ~~30, 2013 and June~~3 ~~30, 2012. The weighted average is based on the period~~-~~end~~ Investments ~~fair values of each investment~~ in ~~the~~affiliated ~~Advisor~~Investees Fund in proportion to the Investee’s total investments. The fee rates used are the contractual rates charged by each Advisor. The Advisors’ management fee and incentive allocation/fee are not paid to the Managing Member.

	June 30, 2013						June 30, 2012
Investee	Managementfees			Incentiveallocation/fees			Managementfees			Incentiveallocation/fees
ELSM		1.42	%		17.52	%		1.59	%		19.97	%
EDM		1.66	%		18.92	%		1.69	%		19.01	%
EDMAT		1.46	%		17.79	%		1.48	%		17.98	%
GTTM		2.12	%		21.63	%		2.08	%		21.39	%
RVM		1.56	%		12.23	%		1.62	%		12.59	%
HFPO		N/A			N/A			—	%(1)		—	%(1)

spin-offs, and other special situations. Corporate event arbitrageurs generally choose their investments based on their perceptions of the likelihood that the event or transaction will occur, the amount of time that the process will take, and the perceived ratio of return to risk. Strategies that may be utilized in the event driven sector include catalyst-activist, merger arbitrage/special situations, credit opportunities/distressed securities and multi-strategy investing. Other strategies may be employed as well.

~~(1)~~Event ~~The~~Driven ~~sole~~Managers ~~Advisor~~Asset ~~Fund~~Tr ~~within HFPO is illiquid and the Advisor has elected to forego the management and incentive fees. HFPO was liquidated in March 2013.~~

10HFS, the managing member of EDM, created EDMAT, a Delaware statutory trust, for the benefit of its investors, including the Company. Goldman Sachs Trust Company, a Delaware Corporation, is the trustee of EDMAT (the “Trustee”). The Trustee appointed HFS as the “Special Assets Direction Advisor,” responsible for, among other duties, disposition of EDMAT assets. On March 31, 2009, EDM transferred to EDMAT its interest in certain illiquid investments, including illiquid investments made by Advisor Funds, as well as liquidating vehicles that the Advisors formed as liquidity decreased for previously liquid investments, such as certain credit instruments. EDM transferred to EDMAT the economic risks and benefits of its interests in such assets. In connection with such transfer, each investor in EDM, including the Company, was issued its pro-rata share of EDMAT interests based on its ownership in EDM as of the transfer date. Distributions from EDMAT in respect of EDMAT interests will be made to holders of EDMAT interests, including the Company, as amounts in respect of the assets transferred to EDMAT are received from the Advisors. However, the actual timing of these distributions will be dependent on the Advisors’ ability to liquidate positions as market conditions allow, and it could be a significant period of time before such positions are realized or disposed of.

~~HEDGE~~Global ~~FUND~~Tactical ~~MANAGERS~~Trading ~~(DIVERSIFIED)~~Managers LLC

~~NOTES TO~~GTTM ~~FINANCIAL~~seeks ~~STATEMENTS~~long-term risk-adjusted returns by allocating its assets to Advisors that employ strategies primarily within the tactical trading sector. Tactical trading strategies are directional trading strategies that generally fall into one of the following two categories: managed futures strategies and global macro strategies. Managed futures strategies involve trading in the global futures and currencies markets, generally using systematic or discretionary approaches. Global macro strategies generally utilize analysis of macroeconomic, geopolitical and financial conditions to develop views on country, regional or broader economic themes and then seek to capitalize on such views by trading in securities, commodities, interest rates, currencies and various financial instruments.

~~(Unaudited)~~Relative Value Managers LLC

~~June~~RVM 30ceased its trading activities effective July 1, ~~2013~~2009 and will dissolve at the time all assets are liquidated, liabilities are satisfied and liquidation proceeds are distributed through payment of a liquidating distribution. Investors in RVM (including the Company) will receive proceeds from the liquidation over time as RVM receives redemption proceeds from Advisor Funds.

~~Note 4 -~~Management ~~Fair~~fees ~~Value~~and ~~Measurements~~incentive allocation/fees

~~The~~HFS ~~fair~~does ~~value~~not ofcharge athe ~~financial~~Company ~~instrument is~~any management fee or incentive allocation at the ~~amount~~Investee ~~that~~level. ~~would~~The underlying beAdvisor ~~received~~Funds toheld ~~sell~~by anthe ~~asset~~Investees orcharge ~~paid~~management and incentive allocation/fees to ~~transfer~~the aInvestees. ~~liability~~The infollowing antable ~~orderly~~reflects ~~transaction~~the ~~between~~contractual ~~market~~weighted ~~participants~~average atAdvisors’ ~~the~~management ~~measurement~~fee ~~date.~~and incentive

~~The~~10 Company uses NAV as its measure of fair value for investments in Investees when (i) the fund investment does not have a readily determinable fair value and (ii) the NAV of the investment fund is calculated in a manner consistent with the measurement principles of investment company accounting, including measurement of the underlying investments at fair value. In evaluating the level at which the fair value measurements of the Company’s investments have been classified, the Company has assessed factors including, but not limited to, price transparency, the ability to redeem at NAV at the measurement date and the existence or absence of certain restrictions at the measurement date. The three levels of the fair value hierarchy are described below:

•Table Levelof 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;Contents

•HEDGE ~~Level~~FUND 2MANAGERS ~~— Quoted prices in markets that are not active or financial instruments for which significant inputs are observable~~ (~~including investments in Investees that can be redeemed at the measurement date or in the near-term at NAV~~DIVERSIFIED), ~~either~~LLC ~~directly or indirectly; and~~

•NOTES TO ~~Level~~FINANCIAL 3STATEMENTS — Prices or valuations that require significant unobservable inputs (including investments in Investees that will never have the ability to be voluntarily redeemed or are restricted from redemption for an uncertain or extended period of time from the measurement date).

~~The~~(Unaudited) ~~following tables set forth by level within the fair value hierarchy the Company’s assets and liabilities by investment strategy at fair value measured at June 30, 2013 and December 31, 2012:~~

	June 30, 2013
Assets	Level 1		Level 2		Level 3		Total
Investees by investment strategy:
Equity Long/Short	$	—	$	136,432,555	$	—	$	136,432,555
Event Driven		—		93,852,554		8,905,599		102,758,153
Tactical Trading		—		107,761,754		—		107,761,754
Relative Value		—		—		321,271		321,271
Multi-Sector		—		—		—		—
Total	$	—	$	338,046,863	$	9,226,870	$	347,273,733

September 30, 2013

	December 31, 2012
Assets	Level 1		Level 2		Level 3		Total
Investees by investment strategy:
Equity Long/Short	$	—	$	155,842,998	$	—	$	155,842,998
Event Driven		—		99,506,680		10,169,426		109,676,106
Tactical Trading		—		121,112,624		—		121,112,624
Relative Value		—		—		479,148		479,148
Multi-Sector		—		—		350,745		350,745
Total	$	—	$	376,462,302	$	10,999,319	$	387,461,621

Note 3 - Investments in affiliated Investees

11 allocation/fee rates at the Investee level for the nine months ended September 30, 2013 and September 30, 2012. The weighted average is based on the period-end fair values of each investment in the Advisor Fund in proportion to the Investee’s total investments. The fee rates used are the contractual rates charged by each Advisor. The Advisors’ management fee and incentive allocation/fee are not paid to the Managing Member.

HEDGE FUND MANAGERS (DIVERSIFIED) LLC


	September 30, 2013						September 30, 2012
Investee	Management fees			Incentive allocation/fees			Management fees			Incentive allocation/fees
ELSM		1.56	%		19.08	%		1.61	%		19.52	%
EDM		1.50	%		19.09	%		1.70	%		19.01	%
EDMAT		1.34	%		15.24	%		1.48	%		17.36	%
GTTM		2.03	%		21.51	%		2.07	%		21.09	%
RVM		—	%⁽¹⁾		—	%⁽¹⁾		1.79	%		13.88	%
HFPO		N/A			N/A			—	%⁽¹⁾		—	%⁽¹⁾

~~NOTES TO~~(1) ~~FINANCIAL~~The ~~STATEMENTS~~sole Advisor Fund within RVM and HFPO is illiquid and the Advisor has elected to forego the management and incentive fees. HFPO was liquidated in March 2013.

~~(Unaudited)~~Note 4 - Fair Value Measurements

~~June~~The ~~30,~~fair ~~2013~~value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

~~Note~~The Company uses NAV as its measure of fair value for investments in Investees when (i) 4the fund investment does not have a readily determinable fair value and (ii) -the ~~Fair~~NAV ~~Value~~of ~~Measurements~~the investment fund is calculated in a manner consistent with the measurement principles of investment company accounting, including measurement of the underlying investments at fair value. In evaluating the level at which the fair value measurements of the Company’s investments have been classified, the Company has assessed factors including, but not limited to, price transparency, the ability to redeem at NAV at the measurement date and the existence or absence of certain restrictions at the measurement date. The three levels of the fair value hierarchy are described below:

~~Included~~• inLevel ~~cash~~1 ~~and~~— ~~cash~~Unadjusted ~~equivalents~~quoted onprices ~~the~~in ~~Balance~~active ~~Sheet~~markets that are ~~investments~~accessible inat ~~money market~~the ~~funds~~measurement ~~with~~date afor ~~fair value of $15~~identical,~~355,675~~ ~~and~~unrestricted ~~$19,660,555, which were classified as Level 1~~ assets asor ~~of June 30, 2013 and December 31, 2012, respectively.~~ liabilities;

~~The~~• ~~following~~Level ~~tables~~2 ~~summarize~~— ~~the~~Quoted ~~changes~~prices in ~~fair~~markets ~~value~~that ofare ~~the~~not ~~Company’s~~active ~~Level 3~~or ~~investments~~financial instruments for which significant inputs are observable (including investments in Investees that can be redeemed at the ~~quarter~~measurement ~~ended~~date ~~June 30,~~or ~~2013~~in ~~and~~the ~~June 30,~~near-term ~~2012~~at NAV), ~~respectively:~~either directly or indirectly; and

• Level 3 — Prices or valuations that require significant unobservable inputs (including investments in Investees bythat ~~investment~~will ~~strategy~~ never have the ability to be voluntarily redeemed or are restricted from redemption for an uncertain or extended period of time from the measurement date).

	Event Driven			Relative Value			Total
Balance as at April 1, 2013	$	10,573,835		$	352,034		$	10,925,869
Net realized gain/(loss) on investments in affiliated investees		56,961			—			56,961
Net change in unrealized gain/(loss) on investments in affiliated investees held at June 30, 2013		(235,876	)		(30,763	)		(266,639	)
Sales		(1,489,321	)		—			(1,489,321	)
Transfers out of Level 3		—			—			—
Balance at June 30, 2013	$	8,905,599		$	321,271		$	9,226,870

InvesteesTable byof investment strategy Contents

	Event Driven			Relative Value			Multi-Sector			Total
Balance as at April 1, 2012	$	12,023,615		$	1,256,576		$	466,324		$	13,746,515
Net realized gain/(loss) on investments		—			—			—			—
Net change in unrealized gain/(loss) on investments in affiliated investees held at June 30, 2012		(69,606	)		(11,579	)		(10,122	)		(91,307	)
Sales		—			—			—			—
Balance as at June 30, 2012	$	11,954,009		$	1,244,997		$	456,202		$	13,655,208

HEDGE FUND MANAGERS (DIVERSIFIED) LLC

~~The following tables summarize the changes in fair value of the Company’s Level~~NOTES 3TO ~~investments~~FINANCIAL ~~for~~STATEMENTS ~~the six months ended June 30, 2013 and June 30, 2012, respectively:~~

~~Investees~~(Unaudited) ~~by investment strategy~~

	Event Driven			Relative Value			Multi-Sector			Total
Balance as at January 1, 2013	$	10,169,426		$	479,148		$	350,745		$	10,999,319
Net realized gain/(loss) on investments in affiliated investees		56,961			8,334			(212,641	)		(147,346	)
Net change in unrealized gain/(loss) on investments in affiliated investees held at June 30, 2013		168,533			(44,063	)		—			124,470
Sales		(1,489,321	)		(122,148	)		(138,104	)		(1,749,573	)
Transfers out of Level 3		—			—			—			—
Balance at June 30, 2013	$	8,905,599		$	321,271		$	—		$	9,226,870

September 30, 2013

12Note 4 - Fair Value Measurements

~~HEDGE~~The ~~FUND~~following ~~MANAGERS~~tables ~~(DIVERSIFIED)~~set ~~LLC~~forth by level within the fair value hierarchy the Company’s assets and liabilities by investment strategy at fair value measured at September 30, 2013 and December 31, 2012:

NOTES TO FINANCIAL STATEMENTS


	September 30, 2013
Assets	Level 1		Level 2		Level 3		Total
Investees by investment strategy:
Equity Long/Short	$	—	$	128,689,178	$	—	$	128,689,178
Event Driven		—		88,395,952		7,905,775		96,301,727
Tactical Trading		—		98,612,609		—		98,612,609
Relative Value		—		—		303,416		303,416

Total	$	—	$	315,697,739	$	8,209,191	$	323,906,930

(Unaudited)


	December 31, 2012
Assets	Level 1		Level 2		Level 3		Total
Investees by investment strategy:
Equity Long/Short	$	—	$	155,842,998	$	—	$	155,842,998
Event Driven		—		99,506,680		10,169,426		109,676,106
Tactical Trading		—		121,112,624		—		121,112,624
Relative Value		—		—		479,148		479,148
Multi-Sector		—		—		350,745		350,745

Total	$	—	$	376,462,302	$	10,999,319	$	387,461,621

~~June~~Included in cash and cash equivalents on the Balance Sheet are investments in money market funds with a fair value of $12,398,711 and $19,660,555, which were classified as Level 1 assets as of September 30, 2013 and December 31, 2012, respectively.

~~Note~~The following tables summarize the changes in fair value of the Company’s Level 3 investments for the quarter ended September ~~4 -~~30, ~~Fair~~2013 ~~Value~~and ~~Measurements~~September 30, 2012, respectively:

Investees by investment strategy

	Event Driven			~~Relative Value~~Multi-Sector		~~Multi-Sector~~Relative Value			Total
Balance as at January 1, 2012	$	13,856,921		$	1,125,167	$	691,659		$	15,673,747
Balance at July 1, 2013	$	8,905,599		$	—	$	321,271		$	9,226,870
Net realized gain/(loss) on investments in affiliated investees		(527,~~972~~882	)		—		—			(527,~~972~~882	)
Net change in unrealized gain/(loss) on investments in affiliated investees held at June 30, 2012		(388,719	)		119,830		(235,457	)		(504,346	)
Net change in unrealized gain/(loss) on investments in affiliated investees held at September 30, 2013		(98,350	)		—		(17,855	)		(116,205	)
Sales		(1893,~~461,221~~592	)		—		—			(1893,~~461,221~~592	)
Balance as at June 30, 2012	$	11,954,009		$	1,244,997	$	456,202		$	13,655,208
Balance at September 30, 2013	$	7,905,775		$	—	$	303,416		$	8,209,191

~~Note 5 -~~12 ~~Fees~~

TheTable Company incurs a monthly management fee paid in arrears to HFS equal to 1.25% per annum of the net assets of the Company as of each month-end. Contents

~~The~~HEDGE ~~Company~~FUND ~~incurs~~MANAGERS a monthly administration fee payable to SEI equal to one-twelfth of 0.02% of the net assets of the Company as of each month-end which is included in administration fee in the Statement of Operations. The Company also incurs an indirect monthly administration fee to SEI at the Investee level which is included in realized and unrealized gain/(~~loss~~DIVERSIFIED) onLLC investments in affiliated Investees in the Statement of Operations. For the three months ended June 30, 2013 and June 30, 2012, the Company’s pro-rata indirect share of the administration fee charged at the Investee level totaled $42,391 and $61,136, respectively. For the six months ended June 30, 2013 and June 30, 2012, the Company’s pro-rata indirect share of the administration fee charged at the Investee level totaled $87,263 and $123,073, respectively.

~~Note~~NOTES ~~6 -~~TO ~~Risk~~FINANCIAL ~~Management~~STATEMENTS

~~The~~(Unaudited) Investees’ investing activities and those of the Advisor Funds in which they invest expose the Company to various types of risks that are associated with the financial investments and markets in which the Investees and such Advisor Funds invest. In the ordinary course of business, HFS, in its capacity as Managing Member of the Company and the Investees, attempts to manage a variety of risks, including market, operational, liquidity and credit risk and attempts to identify, measure and monitor risk through various mechanisms including risk management strategies and credit policies. HFS monitors risk guidelines and diversifies exposures across a variety of instruments, markets and counterparties.

~~Item 1A~~September ~~of Part I of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31~~30, ~~2012~~2013 ~~provides details of these and other types of risks, some of which are additional to the information provided in these financial statements.~~

~~Asset~~Note ~~allocation~~4 is- ~~determined~~Fair byValue ~~the~~Measurements Company’s Managing Member who manages the allocation of assets to achieve the investment objectives. Achievement of the investment objectives involves taking risks. The Managing Member exercises judgment based on analysis, research and risk management techniques when making investment decisions. Divergence from target asset allocations and the composition of the Company’s investments is monitored by the Company’s Managing Member.

13Investees by investment strategy

HEDGE FUND MANAGERS (DIVERSIFIED) LLC


	Event Driven			Multi-Sector			Relative Value			Total
Balance at July 1, 2012	$	11,954,009		$	456,202		$	1,244,997		$	13,655,208
Net realized gain/(loss) on investments in affiliated investees		1,980			—			—			1,980
Net change in unrealized gain/(loss) on investments in affiliated investees held at September 30, 2012		50,858			(87,650	)		(775	)		(37,567	)
Sales		(1,067,816	)		—			—			(1,067,816	)

Balance at September 30, 2012	$	10,939,031		$	368,552		$	1,244,222		$	12,551,805

~~NOTES~~The following tables summarize the changes in fair value of the Company’s Level 3 investments for the nine months ended September TO30, ~~FINANCIAL~~2013 ~~STATEMENTS~~and September 30, 2012, respectively:

~~(Unaudited)~~Investees by investment strategy

June 30, 2013


	Event Driven			Multi-Sector			Relative Value			Total
Balance at January 1, 2013	$	10,169,426		$	350,745		$	479,148		$	10,999,319
Net realized gain/(loss) on investments in affiliated investees		66,139			(212,641	)		8,334			(138,168	)
Net change in unrealized gain/(loss) on investments in affiliated investees held at September 30, 2013		53,123			—			(61,918	)		(8,795	)
Sales		(2,382,913	)		(138,104	)		(122,148	)		(2,643,165	)

Balance at September 30, 2013	$	7,905,775		$	—		$	303,416		$	8,209,191

~~Note 6 -~~Investees ~~Risk~~by ~~Management~~investment strategy

Market risk


	Event Driven			Multi-Sector			Relative Value		Total
Balance at January 1, 2012	$	13,856,921		$	691,659		$	1,125,167	$	15,673,747
Net realized gain/(loss) on investments in affiliated investees		(85,650	)		—			—		(85,650	)
Net change in unrealized gain/(loss) on investments in affiliated investees held at September 30, 2012		(303,203	)		(323,107	)		119,055		(507,255	)
Sales		(2,529,037	)		—			—		(2,529,037	)

Balance at September 30, 2012	$	10,939,031		$	368,552		$	1,244,222	$	12,551,805

~~The~~Note ~~potential~~5 ~~for~~- ~~changes~~Fees ~~in the fair value of the Company’s investment portfolio is referred to as market risk. Commonly used categories of market risk include currency risk, interest rate risk and price risk.~~

~~(i)~~The Company incurs a monthly management fee paid in arrears to HFS equal to 1.25% ~~Currency~~per ~~risk~~annum of the net assets of the Company as of each month-end.

~~The~~13 Advisor Funds may invest in financial investments and enter into transactions denominated in currencies other than its functional currency. Consequently, the Company, its Investees and their Advisor Funds may be exposed to risks that the exchange rate of its functional currency relative to other foreign currencies may change in a manner that has an adverse effect on the value of that portion of the Company’s or Investees’ assets or liabilities denominated in currencies other than the functional currency.

(ii) InterestTable rateof risk Contents

~~The~~HEDGE ~~Advisor~~FUND ~~Funds~~MANAGERS ~~may~~(DIVERSIFIED) ~~invest~~LLC in fixed income securities and derivatives. Any change to market interest rates relevant for particular securities may result in the Advisors being unable to secure similar returns on the expiration of contracts or the sale of securities. In addition, changes to prevailing interest rates or changes in expectations of future rates may result in an increase or decrease in the value of the securities held. In general, if interest rates rise, the value of the fixed income securities and derivatives will decline. A decline in interest rates will in general have the opposite effect.

~~(iii)~~NOTES ~~Price~~TO ~~risk~~FINANCIAL STATEMENTS

~~Price risk~~(Unaudited) is the risk that the value of the Investees’ and Advisor Funds’ financial investments will fluctuate as a result of changes in market prices, other than those arising from currency risk or interest rate risk whether caused by factors specific to an individual investment, its issuer or any factor affecting financial investments traded in the market.

AsSeptember ~~all of the Company’s investments in Investees and the Investees’ investments in Advisor Funds are carried at fair value with changes in fair value recognized in the Statement of Operations~~30, ~~all~~2013 changes in market conditions will directly affect net assets. The Company’s maximum risk of loss is limited to the Company’s investment in the Investees. The Investees’ maximum risk of loss is limited to the Investees’ investment in the Advisor Funds.

~~The~~Note ~~fair~~5 value of the Investees’ investments in the Advisor Funds is determined utilizing NAVs supplied by, or on behalf of, the Advisors of each Advisor Fund. Furthermore, NAVs received from the administrator of the Advisor Funds may be estimates and such values will be used to calculate the NAV of the Investees for purposes of determining amounts payable on redemptions and reported performance of the Investees. Such estimates provided by the administrators of the Advisor Funds may be subject to subsequent revisions which may not be reflected in the Investees’ final month-~~end~~ ~~NAV.~~ Fees

~~Operational~~The ~~risk~~Company incurs a monthly administration fee payable to SEI equal to one-twelfth of 0.02% of the net assets of the Company as of each month-end which is included in administration fee in the Statement of Operations. The Company also incurs an indirect monthly administration fee to SEI at the Investee level which is included in realized and unrealized gain/(loss) on investments in affiliated Investees in the Statement of Operations. For the three months ended September 30, 2013 and September 30, 2012, the Company’s pro-rata indirect share of the administration fee charged at the Investee level totaled $39,420 and $53,075, respectively. For the nine months ended September 30, 2013 and September 30, 2012, the Company’s pro-rata indirect share of the administration fee charged at the Investee level totaled $126,683 and $176,148, respectively.

~~Operational~~Note ~~risk~~6 is- ~~the~~Risk ~~potential~~Management for loss caused by a deficiency in information, communications, transaction processing and settlement and accounting systems. The Company’s service providers maintain controls and procedures for the purpose of mitigating operational risk. Reviews of the service levels of service providers are performed on a regular basis. No assurance is given that these measures will be 100% effective. Operational risk also exists at the Investee and Advisor Fund level.

14The Investees’ investing activities and those of the Advisor Funds in which they invest expose the Company to various types of risks that are associated with the financial investments and markets in which the Investees and such Advisor Funds invest. In the ordinary course of business, HFS, in its capacity as Managing Member of the Company and the Investees, attempts to manage a variety of risks, including market, operational, liquidity and credit risk and attempts to identify, measure and monitor risk through various mechanisms including risk management strategies and credit policies. HFS monitors risk guidelines and diversifies exposures across a variety of instruments, markets and counterparties.

~~HEDGE~~Item 1A ~~FUND~~of ~~MANAGERS~~Part I of ~~(DIVERSIFIED)~~the ~~LLC~~Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012 provides details of these and other types of risks, some of which are additional to the information provided in these financial statements.

~~NOTES TO~~Asset ~~FINANCIAL~~allocation ~~STATEMENTS~~is determined by the Company’s Managing Member who manages the allocation of assets to achieve the investment objectives. Achievement of the investment objectives involves taking risks. The Managing Member exercises judgment based on analysis, research and risk management techniques when making investment decisions. Divergence from target asset allocations and the composition of the Company’s investments is monitored by the Company’s Managing Member.

~~(Unaudited)~~Market risk

~~June~~The 30potential for changes in the fair value of the Company’s investment portfolio is referred to as market risk. Commonly used categories of market risk include currency risk, ~~2013~~interest rate risk and price risk.

~~Note~~(i) ~~6 -~~Currency ~~Risk~~risk ~~Management~~

~~Liquidity~~The ~~risk~~Advisor Funds may invest in financial investments and enter into transactions denominated in currencies other than its functional currency. Consequently, the Company, its Investees and their Advisor Funds may be exposed to risks that the exchange rate of its functional currency relative to other foreign currencies may change in a manner that has an adverse effect on the value of that portion of the Company’s or Investees’ assets or liabilities denominated in currencies other than the functional currency.

~~Liquidity~~(ii) ~~risk~~Interest israte ~~the~~ risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. The Company provides for the subscription and redemption of units and it is therefore exposed to the liquidity risk of meeting member redemptions.

~~In order to meet its obligations associated with~~The ~~financial~~Advisor ~~liabilities,~~Funds ~~the~~may ~~Company~~invest ~~primarily redeems from the investments~~ in ~~the~~fixed ~~Investees.~~income ~~However,~~securities ~~the~~and ~~Company’s investments in the Investees may only be redeemed on a limited basis~~derivatives. AsAny ~~detailed~~change into ~~“Note~~market ~~3 — Investments~~interest ~~in affiliated~~rates ~~Investees”,~~relevant ~~neither~~for ~~EDMAT~~particular ~~nor~~securities ~~RVM~~may ~~provide investors with a voluntary redemption right. As a~~ result, in the ~~Company~~Advisors ~~may~~being ~~not~~unable ~~be able~~ to ~~quickly~~secure ~~liquidate~~similar ~~some~~returns ofon ~~its investments in order to meet liquidity requirements.~~ the

~~Certain~~14 of the Company’s Investees may have liquidity exposure related to the recovery value of claims against Lehman Brothers Holdings, Inc. and certain of its subsidiaries and affiliates (“Lehman”). At the time of the Lehman insolvency, estimates of the recovery value of the Lehman assets were received from the majority, but not all, of the Advisor Funds, and the Company had no way of independently verifying or otherwise confirming the accuracy of the information provided. As a result, there can be no guarantee that such estimates were accurate. Based on the information received, the gross indirect exposure to Lehman did not materially affect the Company’s net assets at that time. There still remains significant uncertainty with respect to the ultimate outcome of the Lehman insolvency proceedings, and therefore the amounts ultimately recovered from Lehman could differ from such estimates, and such differences could be material at the Advisor Fund Level. The Company does not anticipate that the outcome of the Lehman insolvency proceedings will have a material impact on the results of its operations.

CertainTable of the Advisor Funds held by the Investees are subject to various lock-up provisions. Additionally, an Advisor may, at its discretion, transfer a portion of an Investee’s investment in the Advisor Fund into share classes where liquidity terms are directed by the Advisor in accordance with the Advisor’s operating agreement, commonly referred to as side pocket share classes (“side pockets”). These side pockets may have restricted liquidity and prohibit the Investees from fully liquidating their investments without delay. The managing member of the Investees attempts to determine each Advisor’s strategy on side pockets through its due diligence process prior to making an allocation to the Advisor. However, no assurance can be given on whether or not the Advisor will implement side pockets during the investment period. The Advisors may also, at their discretion, suspend redemptions or implement other restrictions on liquidity which could impact the Investees’ ability to meet redemptions submitted by the Company. As of June 30, 2013 and December 31, 2012, approximately 2% of the Company’s investments in the Investees were considered illiquid due to restrictions implemented by the Advisors of the investments held by Investees, excluding contractual restrictions imposed by the Advisors at the time of purchase, such as lock-ups. In addition, as of June 30, 2013 and December 31, 2012, approximately 3% of the Company’s members’ equity was considered illiquid due to restrictions implemented by the Investees. The sum of these amounts represents the total amount of the Company’s members’ equity which was considered illiquid as of June 30, 2013 and December 31, 2012. Contents

ToHEDGE ~~mitigate~~FUND ~~some~~MANAGERS of(DIVERSIFIED) ~~the~~LLC ~~liquidity risks above, the Company has the ability to suspend redemptions prior to the effectiveness of redemption requests at the Managing Member’s sole discretion should conditions warrant.~~

15NOTES TO FINANCIAL STATEMENTS

~~HEDGE FUND MANAGERS~~ (~~DIVERSIFIED~~Unaudited) ~~LLC~~

~~NOTES TO~~September ~~FINANCIAL~~30, ~~STATEMENTS~~2013

~~(Unaudited)~~Note 6 - Risk Management

~~June~~ expiration 30of contracts or the sale of securities. In addition, ~~2013~~changes to prevailing interest rates or changes in expectations of future rates may result in an increase or decrease in the value of the securities held. In general, if interest rates rise, the value of the fixed income securities and derivatives will decline. A decline in interest rates will in general have the opposite effect.

~~Note 6 -~~(iii) ~~Risk~~Price ~~Management~~risk

~~Credit~~Price risk is the risk that the value of the Investees’ and Advisor Funds’ financial investments will fluctuate as a result of changes in market prices, other than those arising from currency risk or interest rate risk whether caused by factors specific to an individual investment, its issuer or any factor affecting financial investments traded in the market.

~~Credit~~As ~~risk~~all isof the Company’s ~~risk~~investments ~~that~~in ~~one~~Investees ~~party~~and tothe aInvestees’ ~~contract~~investments in Advisor Funds are carried at fair value with changes in fair value recognized in the Statement of Operations, all changes in market conditions will ~~cause~~directly aaffect ~~financial~~net assets. The Company’s maximum risk of loss ~~for~~is limited to the ~~other~~Company’s ~~party~~investment byin ~~failing~~the Investees. The Investees’ maximum risk of loss is limited to ~~discharge~~the anInvestees’ ~~obligation~~investment in the Advisor Funds.

The ~~Managing~~fair ~~Member~~value ~~has~~of ~~adopted~~the ~~procedures~~Investees’ toinvestments ~~reduce~~in ~~credit~~the ~~risk~~Advisor ~~related~~Funds tois ~~the~~determined ~~Company’s~~utilizing ~~dealings~~NAVs ~~with~~supplied ~~counterparties~~by, ~~and~~or ~~Advisor Funds.~~on ~~Before~~behalf ~~transacting~~of, ~~with~~the Advisors ~~any~~of ~~counterparty~~each or Advisor Fund. Furthermore, NAVs received from the ~~Managing~~administrator ~~Member~~of orthe ~~its~~Advisor ~~affiliates~~Funds ~~evaluate~~may ~~both~~be ~~creditworthiness~~estimates and ~~reputation~~such byvalues ~~conducting~~will abe ~~credit~~used ~~analysis~~to calculate the NAV of the ~~party,~~Investees ~~their~~for ~~business~~purposes of determining amounts payable on redemptions and reported ~~reputation~~performance of the Investees. ~~The~~Such ~~credit~~estimates ~~risk~~provided ~~of approved~~by ~~counterparties~~the ~~and~~administrators of the Advisor Funds ~~are~~may ~~then~~be ~~monitored~~subject onto ansubsequent ~~ongoing~~revisions ~~basis,~~which ~~including~~may ~~periodic~~not ~~reviews~~be ofreflected ~~financial~~in ~~statements~~the ~~and~~Investees’ ~~interim~~final ~~financial~~month-end ~~reports as needed~~NAV.

~~Some~~Operational ~~of the Investees’ investments in Advisor Funds may have had credit exposure related to the bankruptcy of Lehman. See “Liquidity~~ risk” ~~for further information related to Lehman exposure.~~

~~Investment~~Operational risk is the potential for loss caused by a deficiency in ~~Investees~~information, communications, transaction processing and settlement and accounting systems. The Company’s service providers maintain controls and procedures for the purpose of mitigating operational risk. Reviews of the service levels of service providers are performed on a regular basis. No assurance is given that these measures will be 100% effective. Operational risk also exists at the Investee and Advisor Fund level.

~~The~~Liquidity ~~Managing Member generally has limited access, if at all, to specific information regarding the Advisors’ portfolios held by the Investees and relies on valuations provided by, or on behalf of,~~risk the Advisors. The Company will be affected by the Advisors’ investment policies and decisions in direct proportion to the amount of the Company’s assets that are invested with each Investee. The NAV of the Advisors’ assets will fluctuate in response to, among other things, various market and economic prospects of investments that the Advisors make, and as a result, the NAV of the Investees and the Company will be impacted. Generally, the NAVs provided by, or on behalf of, the Advisors are only audited on an annual basis and are not subject to independent third party verification. Typically, audited financial statements are not received before issuance of the Company’s financial statements.

InLiquidity ~~the~~risk ~~normal~~is ~~course of business,~~ the ~~Advisor Funds may trade various financial instruments and enter into various investment transactions with off-balance sheet~~ risk, ~~which~~that ~~include,~~the ~~but~~Company ~~are not limited to, securities sold short, futures, forwards, swaps and written options. The Managing Member generally~~ will ~~have~~encounter ~~limited~~difficulty ~~ability~~in tomeeting ~~monitor~~obligations ~~such~~associated ~~investments,~~with ~~to obtain full~~financial ~~and current information and to exercise control rights over such investments~~liabilities. ~~This~~The ~~could~~Company ~~have~~provides anfor ~~adverse effect on~~ the ~~performance~~subscription ~~of such investments~~ and, ~~therefore,~~redemption ~~on the performance~~ of ~~the~~units ~~Investees~~ and ~~the~~it ~~Company.~~is Intherefore ~~order~~exposed to ~~manage~~the ~~this~~liquidity risk~~, the~~ ~~Managing~~of ~~Member~~meeting ~~performs~~member ~~due diligence reviews with respect to the Advisors’ valuation policies and procedures and performs certain analytical procedures with respect to the NAV information received~~redemptions. ~~The review and procedures performed by the Managing Member support its ability to rely on the NAVs supplied by, or on behalf of, the Advisors.~~

In order to meet its obligations associated with financial liabilities, the Company primarily redeems from the investments in the Investees. However, the Company’s investments in the Investees may only be redeemed on a limited basis. As detailed in “Note 3 7— -Investments ~~Related~~in ~~parties~~affiliated Investees”, neither EDMAT nor RVM provide investors with a voluntary redemption right. As a result, the Company may not be able to quickly liquidate some of its investments in order to meet liquidity requirements.

~~The~~Certain ~~management~~of ~~fee~~the ~~payable~~Company’s inInvestees may ~~the~~have ~~Balance~~liquidity ~~Sheet~~exposure ~~represents~~related ~~management~~to ~~fees~~the ~~due~~recovery tovalue ~~HFS~~of atclaims ~~June 30~~against Lehman Brothers Holdings, ~~2013~~Inc. and ~~December 31~~ certain of its subsidiaries and affiliates (“Lehman”). At the time of the Lehman insolvency, ~~2012~~estimates of the recovery value of the Lehman assets were received from the majority, ~~respectively.~~but

~~Included~~15 ~~in the redemptions payable on the Balance Sheet at June 30, 2013 and December 31, 2012 were redemptions due to the Managing Member of $42,580 and $60,416, respectively.~~

ForTable the six months ended June 30, 2013, the Company earned dividends of $1,301 from an investment in Goldman Sachs Financial Square Government Fund, a money market fund managed by Goldman Sachs Asset Management, L.P., an affiliate of HFS. For the six months ended June 30, 2012 the Company earned dividends of $5,600 from an Contents

16HEDGE FUND MANAGERS (DIVERSIFIED) LLC

~~HEDGE~~NOTES TO ~~FUND~~FINANCIAL ~~MANAGERS~~STATEMENTS ~~(DIVERSIFIED) LLC~~

~~NOTES TO~~(Unaudited) ~~FINANCIAL STATEMENTS~~

~~(Unaudited)~~September 30, 2013

~~June~~Note ~~30,~~6 ~~2013~~- Risk Management

~~Note 7 -~~ not ~~Related~~all, ~~parties~~of the Advisor Funds, and the Company had no way of independently verifying or otherwise confirming the accuracy of the information provided. As a result, there can be no guarantee that such estimates were accurate. Based on the information received, the gross indirect exposure to Lehman did not materially affect the Company’s net assets at that time. There still remains significant uncertainty with respect to the ultimate outcome of the Lehman insolvency proceedings, and therefore the amounts ultimately recovered from Lehman could differ from such estimates, and such differences could be material at the Advisor Fund Level. The Company does not anticipate that the outcome of the Lehman insolvency proceedings will have a material impact on the results of its operations.

Certain of the ~~investment~~Advisor inFunds ~~Goldman~~held ~~Sachs~~by ~~Financial~~the ~~Square~~Investees ~~Government~~are ~~Fund~~subject to various lock-up provisions. Additionally, an Advisor may, at its discretion, transfer a ~~money~~portion ~~market~~of ~~fund~~an ~~managed~~Investee’s investment in the Advisor Fund into share classes where liquidity terms are directed by ~~Goldman~~the ~~Sachs~~Advisor ~~Asset~~in ~~Management~~accordance with the Advisor’s operating agreement, Lcommonly referred to as side pocket share classes (“side pockets”).P These side pockets may have restricted liquidity and prohibit the Investees from fully liquidating their investments without delay., anThe ~~affiliate~~managing member of ~~HFS~~the Investees attempts to determine each Advisor’s strategy on side pockets through its due diligence process prior to making an allocation to the Advisor. AtHowever, ~~June~~no assurance can be given on whether or not the Advisor will implement side pockets during the investment period. The Advisors may also, at their discretion, suspend redemptions or implement other restrictions on liquidity which could impact the Investees’ ability to meet redemptions submitted by the Company. As of September 30, 2013 and December 31, 2012, ~~the~~approximately ~~fair~~1% ~~values~~and of2%, ~~such~~respectively, ~~money~~of ~~market~~the Company’s investments in the Investees were ~~$15~~considered illiquid due to restrictions implemented by the Advisors of the investments held by Investees,~~355~~ excluding contractual restrictions imposed by the Advisors at the time of purchase,~~675~~ ~~and~~such ~~$19~~as lock-ups. In addition,~~660~~ as of September 30,~~555~~ 2013 and December 31, 2012, ~~respectively~~approximately 3% of the Company’s members’ equity was considered illiquid due to restrictions implemented by the Investees. The ~~Company~~sum ~~will~~of ~~bear~~these ~~its~~amounts ~~proportionate~~represents ~~share~~the total amount of ~~all~~the ~~fees,~~Company’s ~~including~~members’ ~~investment~~equity ~~advisory~~which ~~fees,~~was considered ~~paid~~illiquid byas ~~the~~of ~~money~~September 30, ~~market~~2013 ~~funds~~and December 31, 2012.

~~The~~To ~~Advisor~~mitigate ~~Funds~~some ~~may~~of ~~have~~the ~~executed~~liquidity ~~investment~~risks ~~transactions~~above, the ~~with~~Company ~~various~~has ~~affiliates~~the ability to suspend redemptions prior to the effectiveness of redemption requests at the Managing Member’s sole discretion should conditions warrant.

~~Directors~~Credit ~~and~~risk executive officers of the Company and the Managing Member owned less than 1% of the Company’s equity at June 30, 2013 and December 31, 2012. Employees of Goldman, Sachs & Co. owned less than 1% of the Company’s equity at June 30, 2013 and December 31, 2012.

~~Members’~~Credit ~~Equity~~risk ~~for~~is ~~Class A~~the ~~Series~~risk 1that asone ~~disclosed~~party into ~~“Note~~a 8contract —will cause ~~Members’~~a ~~equity”~~financial ~~includes~~loss ~~equity~~for ~~provided by~~ the ~~Managing~~other ~~Member~~party atby ~~June 30,~~failing ~~2013 and December 31,~~to ~~2012,~~discharge ofan ~~$1,132 and $1,091, respectively~~obligation.

~~Note 8 -~~The ~~Members~~Managing Member has adopted procedures to reduce credit risk related to the Company’s ~~equity~~dealings with counterparties and Advisor Funds. Before transacting with any counterparty or Advisor Fund, the Managing Member or its affiliates evaluate both creditworthiness and reputation by conducting a credit analysis of the party, their business and reputation. The credit risk of approved counterparties and Advisor Funds are then monitored on an ongoing basis, including periodic reviews of financial statements and interim financial reports as needed.

AtSome ~~June 30,~~of ~~2013 and December 31, 2012,~~ the ~~Company~~Investees’ ~~had~~investments ~~Class A~~in ~~units~~Advisor ~~outstanding.~~Funds ~~Each~~may ~~series~~have ~~of Class A~~had ~~units~~credit isexposure ~~identical~~related ~~in every regard except with respect~~ to ~~its~~the bankruptcy ~~individualized~~of ~~incentive allocation base~~Lehman. ~~Effective~~See ~~January 1,~~“Liquidity ~~2013,~~risk” ~~Class A~~for ~~Series~~further ~~52,~~information ~~Series~~related ~~91,~~to ~~Series~~Lehman ~~92, and Series 97 through Series 109 units were converted into Class A Series 46 units~~exposure.

~~The~~16 ~~Company’s unit activity for the six month period ended June 30, 2013 and the year ended December 31, 2012 is as follows:~~

	December 31, 2012		Unit Conversion		Subscriptions		Redemptions			June 30, 2013
Class A:		2,930,982.83		2,881.76		12,500.00		(431,538.09	)		2,514,826.50
	December 31, 2011		Unit Conversion		Subscriptions		Redemptions			December 31, 2012
Class A:		4,330,758.94		—		64,919.36		(1,464,695.47	)		2,930,982.83

AtHEDGE ~~June 30,~~FUND ~~2013~~MANAGERS ~~and~~(DIVERSIFIED) ~~December 31,~~LLC ~~2012, members’ equity consisted of the following:~~

	December 31,2012		Subscriptions		Redemptions			Net income/(loss)		June 30,2013
Managing Member	$	—	$	—	$	(42,580	)	$	618,578	$	575,998
Class A:		371,595,683		1,250,000		(55,877,386	)		13,925,307		330,893,604
Total	$	371,595,683	$	1,250,000	$	(55,919,966	)	$	14,543,885	$	331,469,602

NOTES TO FINANCIAL STATEMENTS

	December 31,2011		Subscriptions		Redemptions			Net income/(loss)		December 31,2012
Managing Member	$	—	$	—	$	(60,416	)	$	60,416	$	—
Class A:		522,278,771		6,491,936		(179,612,320	)		22,437,296		371,595,683
Total	$	522,278,771	$	6,491,936	$	(179,672,736	)	$	22,497,712	$	371,595,683

(Unaudited)

17September 30, 2013

~~HEDGE~~Note ~~FUND~~6 ~~MANAGERS~~- ~~(DIVERSIFIED)~~Risk ~~LLC~~Management

~~NOTES TO~~Investment ~~FINANCIAL~~in ~~STATEMENTS~~Investees risk

~~(Unaudited)~~The Managing Member generally has limited access, if at all, to specific information regarding the Advisors’ portfolios held by the Investees and relies on valuations provided by, or on behalf of, the Advisors. The Company will be affected by the Advisors’ investment policies and decisions in direct proportion to the amount of the Company’s assets that are invested with each Investee. The NAV of the Advisors’ assets will fluctuate in response to, among other things, various market and economic prospects of investments that the Advisors make, and as a result, the NAV of the Investees and the Company will be impacted. Generally, the NAVs provided by, or on behalf of, the Advisors are only audited on an annual basis and are not subject to independent third party verification. Typically, audited financial statements are not received before issuance of the Company’s financial statements.

~~June~~In 30the normal course of business, ~~2013~~the Advisor Funds may trade various financial instruments and enter into various investment transactions with off-balance sheet risk, which include, but are not limited to, securities sold short, futures, forwards, swaps and written options. The Managing Member generally will have limited ability to monitor such investments, to obtain full and current information and to exercise control rights over such investments. This could have an adverse effect on the performance of such investments and, therefore, on the performance of the Investees and the Company. In order to manage this risk, the Managing Member performs due diligence reviews with respect to the Advisors’ valuation policies and procedures and performs certain analytical procedures with respect to the NAV information received. The review and procedures performed by the Managing Member support its ability to rely on the NAVs supplied by, or on behalf of, the Advisors.

Note 8 7 - ~~Members’~~Related ~~equity~~parties

The ~~following~~management ~~amounts~~fee ~~represent~~payable in the ~~units~~Balance ~~outstanding~~Sheet ~~and~~represents ~~NAV~~management ~~per~~fees ~~unit~~due ~~for~~to ~~each~~HFS ~~series:~~at September 30, 2013 and December 31, 2012, respectively.

	June 30, 2013				December 31, 2012
	Unitsoutstanding		NAVper unit		Unitsoutstanding		NAVper unit
Managing Member		—		—		—		—
Class A:
Series 1		1,280,697.52	$	157.62		1,484,075.35	$	151.91
Series 45		31,780.06		103.10		31,780.06		99.36
Series 46		832,002.54		104.82		743,756.34		101.05
Series 47		20,000.00		102.77		20,000.00		99.03
Series 49		45,522.73		103.60		61,022.73		99.87
Series 50		92,212.62		101.81		98,685.95		98.05
Series 51		51,300.00		101.75		58,800.00		98.00
Series 52		—		—		52,323.77		100.62
Series 66		15,965.80		112.82		19,601.91		108.55
Series 68		15,702.29		112.82		15,702.29		108.55
Series 69		9,881.94		112.82		9,881.94		108.55
Series 70		6,848.67		112.82		6,848.67		108.55
Series 72		6,915.70		112.82		6,915.70		108.55
Series 73		1,335.83		112.82		1,335.83		108.55
Series 82		—		—		6,147.24		104.31
Series 83		5,460.80		108.40		5,460.80		104.31
Series 91		—		—		27,500.00		100.69
Series 92		—		—		16,000.00		100.52
Series 93		16,750.00		103.27		18,250.00		99.53
Series 94		27,450.00		103.46		34,200.00		99.73
Series 95		31,500.00		102.39		40,417.34		98.64
Series 96		11,000.00		103.49		21,000.00		99.76
Series 97		—		—		17,000.00		101.19
Series 98		—		—		11,250.00		101.26
Series 99		—		—		8,500.01		103.12
Series 100		—		—		37,607.54		104.96
Series 101		—		—		9,500.00		103.82
Series 102		—		—		2,500.00		104.19
Series 103		—		—		23,243.86		104.61
Series 104		—		—		12,500.00		103.05
Series 105		—		—		7,675.50		101.86
Series 106		—		—		4,500.00		101.37
Series 107		—		—		9,000.00		101.32
Series 108		—		—		5,500.00		102.25
Series 109		—		—		2,500.00		102.76
Series 117		2,500.00		101.20		—		—
Series 120		10,000.00		98.73		—		—
Total		2,514,826.50				2,930,982.83

Included in the redemptions payable on the Balance Sheet at September 30, 2013 and December 31, 2012 were redemptions due to the Managing Member of $89,501 and $60,416, respectively. For the nine months ended September 30, 2013, the Company earned dividends of $1,513 from an investment in Goldman Sachs Financial Square Government Fund, a money market fund managed by Goldman Sachs Asset Management, L.P., an affiliate of HFS. For the nine months ended September 30, 2012 the Company earned dividends of $8,785 from an investment in Goldman Sachs Financial Square Government Fund, a money market fund managed by Goldman Sachs Asset Management, L.P., an affiliate of HFS. At September 30, 2013 and December 31, 2012, the fair values of such money market investments were $12,398,711 and $19,660,555, respectively. The Company will bear its proportionate share of all fees, including investment advisory fees, paid by the money market funds.

18The Advisor Funds may have executed investment transactions with various affiliates of the Managing Member.

~~HEDGE~~Directors ~~FUND~~and ~~MANAGERS~~executive ~~(DIVERSIFIED)~~officers ~~LLC~~of the Company and the Managing Member owned less than 1% of the Company’s equity at September 30, 2013 and December 31, 2012. Employees of Goldman, Sachs & Co. owned less than 1% of the Company’s equity at September 30, 2013 and December 31, 2012.

~~NOTES~~Members’ equity for Class TOA ~~FINANCIAL~~Series ~~STATEMENTS~~1 as disclosed in “Note 8 — Members’ equity” includes equity provided by the Managing Member at September 30, 2013 and December 31, 2012, of $1,142 and $1,091, respectively.

~~(Unaudited)~~17

JuneTable 30,of 2013 Contents

~~Note 9 -~~HEDGE ~~Ownership~~FUND inMANAGERS ~~Investees~~(DIVERSIFIED) LLC

~~During the six months ended June~~NOTES ~~30,~~TO ~~2013~~FINANCIAL ~~and~~STATEMENTS the year ended December 31, 2012, the Company’s ownership percentage of certain Investees exceeded 50%. This ownership percentage will fluctuate as a result of the Company’s investment strategy and investor subscriptions and redemptions at the Company and Investee levels. The Company does not consolidate the results of the Investees in its financial statements because the Company does not invest in such Investees for purposes of exercising control; ownership in excess of 50% may be temporary; and the consolidation of these balances would not enhance the usefulness or understandability of information to the members. The Company does not exercise control over majority owned Investees. The following tables summarize the Company’s ownership in the Investees at June 30, 2013 and December 31, 2012:

	June 30, 2013
	Companyinvestment		Investeeequity(1)		% owned bythe Company(1)
ELSM	$	136,432,555	$	372,156,630		36.66	%
EDM		93,852,554	$	286,025,183		32.81	%
EDMAT		8,905,599	$	31,692,077		28.10	%
GTTM		107,761,754	$	501,686,785		21.48	%
RVM		321,271	$	1,223,036		26.27	%
Total	$	347,273,733
	December 31, 2012
	Companyinvestment		Investeeequity(1)		% owned bythe Company(1)
ELSM	$	155,842,998	$	379,799,470		41.03	%
EDM		99,506,680	$	285,567,970		34.85	%
EDMAT		10,169,426	$	36,189,621		28.10	%
GTTM		121,112,624	$	519,094,098		23.33	%
RVM		479,148	$	1,824,051		26.27	%
HFPO		350,745	$	590,725		59.38	%
Total	$	387,461,621

(Unaudited)

~~(1) The Investees’ equity used in the calculation of the percentage owned by the Company is based on the net assets per the Investee’s Balance Sheet and in accordance with ASC 480~~September 30, ~~“Distinguishing~~2013 ~~Liabilities from Equity.”~~

Note 10 8 - ~~Indemnifications~~ Members’ equity

~~The~~At ~~Company~~September 30, ~~enters~~2013 ~~into~~and ~~contracts~~December 31, ~~that~~2012, ~~contain a variety of indemnification arrangements. The indemnification arrangements~~ the Company ~~has~~had ~~entered~~Class A ~~into~~units ~~with service providers include provisions for the Company to indemnify and hold harmless such service providers for certain liabilities~~outstanding. ~~These~~Each ~~indemnification~~series ~~arrangements typically cover liabilities~~of ~~incurred~~Class A byunits ~~service~~is ~~providers~~identical in ~~connection~~every ~~with~~regard ~~the~~except ~~services provided under the contractual arrangements~~ with ~~the~~respect ~~Company~~to ~~and~~its ~~are~~individualized ~~generally~~incentive ~~entered~~allocation ~~into~~base. asEffective ~~part~~January 1, of2013, aClass A ~~negotiated~~Series ~~contractual~~52, ~~arrangement~~Series ~~stipulating the furnishing of the delineated services. However~~91, ~~under~~Series ~~the terms of such contractual arrangements~~92, ~~the~~and ~~Company~~Series ~~will~~97 ~~not~~through beSeries ~~required~~109 tounits ~~indemnify service providers in certain situations to the extent that the liabilities incurred by the service providers~~ were ~~caused by the gross~~converted ~~negligence,~~into ~~willful~~Class A ~~misconduct,~~Series ~~bad~~46 units.

19The Company’s unit activity for the nine month period ended September 30, 2013 and the year ended December 31, 2012 is as follows:

HEDGE FUND MANAGERS (DIVERSIFIED) LLC


	December 31, 2012		Unit Conversion		Subscriptions		Redemptions			September 30, 2013
Class A:		2,930,982.83		2,881.76		12,500.00		(590,970.10	)		2,355,394.49


	December 31, 2011		Unit Conversion		Subscriptions		Redemptions			December 31, 2012
Class A:		4,330,758.94		—		64,919.36		(1,464,695.47	)		2,930,982.83

~~NOTES~~At September TO30, ~~FINANCIAL~~2013 ~~STATEMENTS~~and December 31, 2012, members’ equity consisted of the following:

(Unaudited)


	December 31, 2012		Subscriptions		Redemptions			Net income/ (loss)		September 30, 2013
Managing Member	$	—	$	—	$	(89,501	)	$	773,182	$	683,681
Class A:		371,595,683		1,250,000		(78,554,264	)		16,939,175		311,230,594

Total	$	371,595,683	$	1,250,000	$	(78,643,765	)	$	17,712,357	$	311,914,275

June 30, 2013


	December 31, 2011		Subscriptions		Redemptions			Net income/ (loss)		December 31, 2012
Managing Member	$	—	$	—	$	(60,416	)	$	60,416	$	—
Class A:		522,278,771		6,491,936		(179,612,320	)		22,437,296		371,595,683

Total	$	522,278,771	$	6,491,936	$	(179,672,736	)	$	22,497,712	$	371,595,683

~~Note 10 -~~18 ~~Indemnifications~~

faith,Table reckless disregard of duties, or similar conduct on the part of the service provider. The Company’s maximum exposure under these arrangements is unknown. It is not possible to estimate the maximum potential exposure under these agreements, because the indemnification arrangements relate to unforeseeable liabilities suffered as a result of the conduct of the Company or other parties, which is presently unknown or unforeseeable. However, the Company has not had prior claims or losses pursuant to these indemnification arrangements and expects the risk of material loss to be remote. Contents

~~Note 11 -~~HEDGE ~~Financial~~FUND ~~Highlights~~MANAGERS (DIVERSIFIED) LLC

~~Financial highlights for the Company for the three and six months ended June~~NOTES ~~30,~~TO ~~2013~~FINANCIAL ~~and~~STATEMENTS ~~2012 are as follows:~~

	Three Months EndedJune 30,						Six Months EndedJune 30,
	2013			2012			2013			2012
	Class ASeries 1			Class ASeries 1			Class ASeries 1			Class ASeries 1
Per unit operating performance:
Net asset value, beginning of period	$	157.40		$	149.75		$	151.91		$	144.87
Income from operations:
Net realized and unrealized gain/(loss)		0.86			(1.55	)		7.23			3.91
Net investment income/(loss)(1)(2)		(0.64	)		(0.58	)		(1.52	)		(1.16	)
Total income/(loss) from operations		0.22			(2.13	)		5.71			2.75
Net asset value, end of period	$	157.62		$	147.62		$	157.62		$	147.62
Ratios to average members’ equity(3)
Expenses		1.59	%		1.58	%		1.63	%		1.56	%
Incentive allocation		0.01			0.00			0.17			0.00
Total expenses and incentive allocation		1.60	%		1.58	%		1.80	%		1.56	%
Net investment income/(loss)(2)		(1.59	)%		(1.58	)%		(1.79	)%		(1.56	)%
Total return (prior to incentive allocation)		0.15	%		(1.43	)%		3.93	%		1.89	%
Incentive allocation		(0.01	)		(0.00	)		(0.17	)		(0.00	)
Total return(4)		0.14	%		(1.43	)%		3.76	%		1.89	%

(Unaudited)

~~(1)~~September ~~Net~~30, ~~investment~~2013 ~~income/(loss) is calculated based on average units outstanding during the period.~~

~~(2)~~Note ~~Includes~~8 ~~incentive~~- ~~allocation,~~Members’ ~~if applicable.~~equity

~~(3)~~ The ~~ratios~~following ofamounts ~~expenses~~represent ~~and net investment income/(loss) to average members’ equity are calculated by dividing total expenses and net investment income /(loss), respectively, by~~ the ~~month-end~~units ~~average~~outstanding members’ equity for the period. The ratio of expenses to average members’ equity is annualized. The ratio of incentive allocation, if any, to average members’ equity is not annualized. The ratios to average members’ equity calculated above do not include the Company’s proportionate share of the net investment income and ~~expenses~~NAV ofper ~~the~~unit ~~Investees. The ratios to average members’ equity~~ for each ~~member may vary based on individualized incentive allocation bases and the timing of capital transactions.~~series:


	September 30, 2013				December 31, 2012
	Units outstanding		NAV per unit		Units outstanding		NAV per unit
Managing Member		—		—		—		—
Class A:
Series 1		1,170,808.45	$	159.06		1,484,075.35	$	151.91
Series 45		22,891.79		104.04		31,780.06		99.36
Series 46		807,305.70		105.77		743,756.34		101.05
Series 47		20,000.00		103.71		20,000.00		99.03
Series 49		42,022.73		104.54		61,022.73		99.87
Series 50		92,212.62		102.74		98,685.95		98.05
Series 51		42,800.00		102.68		58,800.00		98.00
Series 52		—		—		52,323.77		100.62
Series 66		15,007.98		113.89		19,601.91		108.55
Series 68		15,702.29		113.89		15,702.29		108.55
Series 69		9,881.94		113.89		9,881.94		108.55
Series 70		6,848.67		113.89		6,848.67		108.55
Series 72		6,915.69		113.89		6,915.70		108.55
Series 73		1,335.83		113.89		1,335.83		108.55
Series 82		—		—		6,147.24		104.31
Series 83		5,460.80		109.44		5,460.80		104.31
Series 91		—		—		27,500.00		100.69
Series 92		—		—		16,000.00		100.52
Series 93		16,750.00		104.21		18,250.00		99.53
Series 94		27,450.00		104.40		34,200.00		99.73
Series 95		31,500.00		103.32		40,417.34		98.64
Series 96		8,000.00		104.43		21,000.00		99.76
Series 97		—		—		17,000.00		101.19
Series 98		—		—		11,250.00		101.26
Series 99		—		—		8,500.01		103.12
Series 100		—		—		37,607.54		104.96
Series 101		—		—		9,500.00		103.82
Series 102		—		—		2,500.00		104.19
Series 103		—		—		23,243.86		104.61
Series 104		—		—		12,500.00		103.05
Series 105		—		—		7,675.50		101.86
Series 106		—		—		4,500.00		101.37
Series 107		—		—		9,000.00		101.32
Series 108		—		—		5,500.00		102.25
Series 109		—		—		2,500.00		102.76
Series 117		2,500.00		102.12		—		—
Series 120		10,000.00		99.68		—		—

Total		2,355,394.49				2,930,982.83

~~HEDGE~~19 ~~FUND MANAGERS (DIVERSIFIED) LLC~~

NOTES TOTable FINANCIALof STATEMENTS Contents

HEDGE FUND MANAGERS (~~Unaudited~~DIVERSIFIED) LLC

~~June~~NOTES TO ~~30,~~FINANCIAL ~~2013~~STATEMENTS

~~Note 11 -~~(Unaudited) ~~Financial Highlights~~

~~(4)~~September 30, ~~The~~2013 components of total return are calculated by dividing the change in the per unit value of each component for the period by the NAV per unit at the beginning of the period. The total return for Class A Series 1 units is calculated taken as a whole and is not annualized. The total return for each member may vary based on individualized incentive allocation bases and the timing of capital transactions.

~~The~~Note ~~per~~9 ~~unit~~- ~~operating~~Ownership ~~performance,~~in ~~ratios~~Investees ~~to average net assets and total return are calculated and presented for the initial series.~~

~~Note~~During the nine months ended September 1230, 2013 and the year ended December -31, ~~Significant~~2012, the Company’s ownership percentage of certain Investees exceeded 50%. This ownership percentage will fluctuate as a result of the Company’s investment strategy and investor subscriptions and redemptions at the Company and Investee levels. The Company does not consolidate the results of the Investees in its financial statements because the Company does not invest in such Investees for purposes of exercising control; ownership in excess of 50% may be temporary; and the consolidation of these balances would not enhance the usefulness or understandability of information to the members. The Company does not exercise control over majority owned Investees. The following tables summarize the Company’s ownership in the Investees at September 30, 2013 and December 31, 2012:

The following is a summary of financial information for Investees that represented more than 20% of the Company’s total assets and/or income as of and/or for the six months ended June 30, 2013 (the “Significant Investees”):


	September 30, 2013
	Company investment		Investee equity⁽¹⁾		% owned by the Company⁽¹⁾
ELSM	$	128,689,178	$	383,852,612		33.53	%
EDM		88,395,952	$	283,460,152		31.18	%
EDMAT		7,905,775	$	28,134,034		28.10	%
GTTM		98,612,609	$	487,143,741		20.24	%
RVM		303,416	$	1,155,062		26.27	%

Total	$	323,906,930


	December 31, 2012
	Company investment		Investee equity⁽¹⁾		% owned by the Company⁽¹⁾
ELSM	$	155,842,998	$	379,799,470		41.03	%
EDM		99,506,680	$	285,567,970		34.85	%
EDMAT		10,169,426	$	36,189,621		28.10	%
GTTM		121,112,624	$	519,094,098		23.33	%
RVM		479,148	$	1,824,051		26.27	%
HFPO		350,745	$	590,725		59.38	%

Total	$	387,461,621

(1) The Investees’ equity used in the calculation of the percentage owned by the Company is based on the net assets per the Investee’s Balance Sheet and in accordance with ASC 480, “Distinguishing Liabilities from Equity.”

~~The~~Note ~~balance~~10 ~~sheets~~- asIndemnifications ~~of June 30, 2013 and December 31, 2012, are summarized as follows:~~

	June 30, 2013
	ELSM		EDM		GTTM
Assets
Investments in Investees, at fair value	$	306,616,476	$	249,582,579	$	313,319,016
Investments in affiliated Investees, at fair value		38,289,436		24,744,881		197,232,752
Cash and cash equivalents		497,090		11,556,258		12,956,770
Other assets		54,376,325		12,817,868		14,784,753
Total assets	$	399,779,327	$	298,701,586	$	538,293,291
Liabilities and Net Assets
Liabilities
Redemptions payable	$	22,084,129	$	12,024,500	$	34,044,063
Loan payable		5,000,000		—		—
Accrued expenses and other liabilities		538,568		651,903		2,562,443
Total liabilities		27,622,697		12,676,403		36,606,506
Net assets		372,156,630		286,025,183		501,686,785
Total liabilities and net assets	$	399,779,327	$	298,701,586	$	538,293,291

The Company enters into contracts that contain a variety of indemnification arrangements. The indemnification arrangements the Company has entered into with service providers include provisions for the Company to indemnify and hold harmless such service providers for certain liabilities. These indemnification arrangements typically cover liabilities incurred by service providers in connection with the services provided under the contractual arrangements with the Company and are generally entered into as part of a negotiated contractual arrangement stipulating the furnishing of the delineated services. However, under the terms of such contractual arrangements, the Company will not be required to indemnify service providers in certain situations to the extent

2120

HEDGETable FUNDof MANAGERS (DIVERSIFIED) LLC Contents

~~NOTES TO~~HEDGE ~~FINANCIAL~~FUND ~~STATEMENTS~~MANAGERS (DIVERSIFIED) LLC

~~(Unaudited)~~NOTES TO FINANCIAL STATEMENTS

~~June~~(Unaudited) ~~30, 2013~~

~~Note 12 -~~September ~~Significant~~30, ~~Investees~~2013

	December 31, 2012
	ELSM		EDM		GTTM
Assets
Investments in Investees, at fair value	$	379,593,219	$	249,255,409	$	328,713,522
Investments in affiliated Investees, at fair value		—		24,152,692		201,813,152
Cash and cash equivalents		1,876,062		24,595,019		1,635,585
Other assets		18,541,017		3,414,541		14,000,000
Total assets	$	400,010,298	$	301,417,661	$	546,162,259
Liabilities and Net Assets
Liabilities
Redemptions payable	$	19,735,371	$	15,277,149	$	13,395,455
Loan payable		—		—		12,000,000
Accrued expenses and other liabilities		475,457		572,542		1,672,706
Total liabilities		20,210,828		15,849,691		27,068,161
Net assets		379,799,470		285,567,970		519,094,098
Total liabilities and net assets	$	400,010,298	$	301,417,661	$	546,162,259

Note 10 - Indemnifications

~~Statement~~ that the liabilities incurred by the service providers were caused by the gross negligence, willful misconduct, bad faith, reckless disregard of ~~Operations~~duties, or similar conduct on the part of the service provider. The Company’s maximum exposure under these arrangements is unknown. It is not possible to estimate the maximum potential exposure under these agreements, because the indemnification arrangements relate to unforeseeable liabilities suffered as a result of the conduct of the Company or other parties, which is presently unknown or unforeseeable. However, the Company has not had prior claims or losses pursuant to these indemnification arrangements and expects the risk of material loss to be remote.

~~For~~Note ~~the three months ended June~~11 ~~30, 2013 and June~~- ~~30,~~Financial ~~2012,~~highlights ~~the statements of operations are summarized as follows:~~

	June 30, 2013
Income/(Loss)	ELSM			EDM			GTTM
Net realized gain/(loss) on Investees	$	11,731,477		$	10,704,376		$	3,155,975
Net change in unrealized gain/(loss) on Investees		(12,686,028	)		(3,976,523	)		(349,009	)
Investment income		174			294			382
Expenses		(408,423	)		(409,611	)		(1,448,728	)
Net income/(loss) from operations	$	(1,362,800	)	$	6,318,536		$	1,358,620

Financial highlights for the Company for the three and nine months ended September 30, 2013 and 2012 are as follows:

	June 30, 2012
	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
Income/(Loss)	ELSM			EDM			GTTM
	2013			2012			2013			2012
Net realized gain/(loss) on Investees	$	3,759,762		$	5,570,926		$	50,358
	Class ASeries 1			Class ASeries 1			Class ASeries 1			Class ASeries 1
Net change in unrealized gain/(loss) on Investees		(9,752,553	)		(6,213,429	)		(7,787,311	)
Per unit operating performance:
Investment income		206			1,727			1,605
Net asset value, beginning of period	$	157.62		$	147.62		$	151.91		$	144.87
Expenses		(440,696	)		(469,803	)		(1,335,352	)
Income from operations:
Net income/(loss) from operations	$	(6,433,281	)	$	(1,110,579	)	$	(9,070,700	)
Net realized and unrealized gain/(loss)		2.16			3.00			9.40			6.91
Net investment income/(loss)(1)(2)		(0.72	)		(0.60	)		(2.25	)		(1.76	)
Total income/(loss) from operations		1.44			2.40			7.15			5.15
Net asset value, end of period	$	159.06		$	150.02		$	159.06		$	150.02
Ratios to average members’ equity(3)
Expenses		1.62	%		1.60	%		1.63	%		1.58	%
Incentive allocation		0.05			0.00			0.22			0.00
Total expenses and incentive allocation		1.67	%		1.60	%		1.85	%		1.58	%
Net investment income/(loss)(2)		(1.67	)%		(1.60	)%		(1.84	)%		(1.57	)%
Total return (prior to incentive allocation)		0.96	%		1.63	%		4.93	%		3.55	%
Incentive allocation		(0.05	)		0.00			(0.22	)		0.00
Total return(4)		0.91	%		1.63	%		4.71	%		3.55	%

22(1) Net investment income/(loss) is calculated based on average units outstanding during the period.

~~HEDGE~~(2) ~~FUND~~Includes ~~MANAGERS~~incentive ~~(DIVERSIFIED)~~allocation, ~~LLC~~if applicable.

~~NOTES TO~~(3) ~~FINANCIAL~~The ~~STATEMENTS~~ratios of expenses and net investment income/(loss) to average members’ equity are calculated by dividing total expenses and net investment income /(loss), respectively, by the month-end average members’ equity for the period. The ratio of expenses to average members’ equity is annualized. The ratio of incentive allocation, if any, to average members’ equity is not annualized. The ratios to average members’ equity calculated above do not include the Company’s proportionate share of the net investment income and expenses of the Investees. The ratios to average members’ equity for each member may vary based on individualized incentive allocation bases and the timing of capital transactions.

~~(Unaudited)~~21

JuneTable 30,of 2013 Contents

~~Note 12 -~~HEDGE ~~Significant~~FUND ~~Investees~~MANAGERS (DIVERSIFIED) LLC

~~For the six months ended June~~NOTES ~~30,~~TO ~~2013~~FINANCIAL ~~and~~STATEMENTS ~~June 30, 2012, the statements of operations are summarized as follows:~~

	June 30, 2013
Income/(Loss)	ELSM			EDM			GTTM
Net realized gain/(loss) on Investees	$	16,143,080		$	12,995,213		$	6,009,864
Net change in unrealized gain/(loss) on Investees		5,387,141			7,254,899			11,617,372
Investment income		443			1,123			1,056
Expenses		(812,006	)		(814,426	)		(2,939,376	)
Net income/(loss) from operations	$	20,718,658		$	19,436,809		$	14,688,916

(Unaudited)

	June 30, 2012
Income/(Loss)	ELSM			EDM			GTTM
Net realized gain/(loss) on Investees	$	8,786,805		$	9,620,926		$	5,386,853
Net change in unrealized gain/(loss) on Investees		11,273,542			3,777,581			(1,661,020	)
Investment income		491			3,022			2,426
Expenses		(931,287	)		(977,380	)		(2,639,599	)
Net income/(loss) from operations	$	19,129,551		$	12,424,149		$	1,088,660

September 30, 2013

~~Statement~~Note of11 - Financial ~~Cash~~highlights ~~Flows~~

~~For~~(4) The components of total return are calculated by dividing the ~~six~~change ~~months~~in ~~ended~~the ~~June 30,~~per ~~2013~~unit ~~and~~value ~~June 30,~~of ~~2012,~~each component for the ~~statements~~period by the NAV per unit at the beginning of ~~cash~~the ~~flows~~period. ~~are~~The ~~summarized~~total return for Class A Series 1 units is calculated taken as ~~follows:~~a whole and is not annualized. The total return for each member may vary based on individualized incentive allocation bases and the timing of capital transactions.

	June 30, 2013
	ELSM			EDM			GTTM
Cash flows from operating activities
Net income/(loss) from operations	$	20,718,658		$	19,436,809		$	14,688,916
Net change in investments in Investees and affiliated Investees		34,687,307			(919,359	)		19,974,906
Net change in operating assets and liabilities		(35,772,197	)		(9,323,966	)		104,984
Net cash provided by/(used in) operating activities		19,633,768			9,193,484			34,768,806
Cash flows from financing activities
Net subscriptions/(redemptions)		(26,012,740	)		(22,232,245	)		(11,447,621	)
Proceeds/(repayments) from loan		5,000,000			—			(12,000,000	)
Net cash provided by/(used in) financing activities		(21,012,740	)		(22,232,245	)		(23,447,621	)
Net change in cash and cash equivalents		(1,378,972	)		(13,038,761	)		11,321,185
Cash and cash equivalents at beginning of period		1,876,062			24,595,019			1,635,585
Cash and cash equivalents at end of period	$	497,090		$	11,556,258		$	12,956,770

The per unit operating performance, ratios to average net assets and total return are calculated and presented for the initial series.

23Note 12 - Significant Investees

~~HEDGE~~The ~~FUND~~following ~~MANAGERS~~is a summary of financial information for Investees that represented more than 20% of the Company’s total assets and/or income as of and/or for the nine months ended September 30, 2013 (~~DIVERSIFIED)~~the ~~LLC~~“Significant Investees”):

~~NOTES TO~~Balance Sheet ~~FINANCIAL STATEMENTS~~

~~(Unaudited)~~The balance sheets as of September 30, 2013 and December 31, 2012, are summarized as follows:

June 30, 2013


	September 30, 2013
	ELSM		EDM		GTTM
Assets
Investments in Investees, at fair value	$	313,768,129	$	250,544,715	$	294,297,110
Investments in affiliated Investees, at fair value		40,475,720		25,447,854		195,495,307
Cash and cash equivalents		2,049,770		10,059,046		13,068,396
Other assets		68,360,891		5,534,610		1,769,351

Total assets	$	424,654,510	$	291,586,225	$	504,630,164

Liabilities and Net Assets
Liabilities
Redemptions payable	$	15,711,231	$	7,467,875	$	15,119,007
Loan payable		24,551,099		—		—
Accrued expenses and other liabilities		539,568		658,198		2,367,416

Total liabilities		40,801,898		8,126,073		17,486,423
Net assets		383,852,612		283,460,152		487,143,741

Total liabilities and net assets	$	424,654,510	$	291,586,225	$	504,630,164

~~Note 12 -~~22 ~~Significant Investees~~

	June 30, 2012
	ELSM			EDM			GTTM
Cash flows from operating activities
Net income/(loss) from operations	$	19,129,551		$	12,424,149		$	1,088,660
Net change in investments in Investees and affiliated Investees		11,238,279			9,497,998			(50,660,944	)
Net change in operating assets and liabilities		17,194,286			9,523,426			(5,855,179	)
Net cash provided by/(used in) operating activities		47,562,116			31,445,573			(55,427,463	)
Cash flows from financing activities
Net subscriptions/(redemptions)		(30,916,967	)		(23,155,000	)		54,621,874
Proceeds/(repayments) from loan		(15,650,000	)		—			—
Net cash provided by/(used in) financing activities		(46,566,967	)		(23,155,000	)		54,621,874
Net change in cash and cash equivalents		995,149			8,290,573			(805,589	)
Cash and cash equivalents at beginning of period		2,383,725			11,003,284			11,203,993
Cash and cash equivalents at end of period	$	3,378,874		$	19,293,857		$	10,398,404

24HEDGE FUND MANAGERS (DIVERSIFIED) LLC

~~Item~~NOTES TO 2.FINANCIAL ~~Management’s~~STATEMENTS ~~Discussion and Analysis of Financial Condition and Results of Operations~~

~~Overview~~(Unaudited)

~~The~~September ~~following discussion~~30, ~~should~~2013 ~~be read in conjunction with the financial statements of Hedge Fund Managers (Diversified) LLC (the “Company”) and the related notes thereto.~~

~~The~~Note ~~Company is a Delaware limited liability company organized in March 2002 to operate as an investment fund. It commenced operations on April~~12 ~~1, 2002. HFS, a Delaware limited liability company, serves as the Company’s managing member (the “Managing Member”). Effective May~~- 1,Significant ~~2013,~~Investees ~~Goldman Sachs Hedge Fund Partners, LLC was renamed “Hedge Fund Managers (Diversified) LLC.”~~

As of June 30, 2013, the Company had total assets of $362,648,458 compared with total assets of $407,674,216 as of December 31, 2012. Total liabilities of the Company were $31,178,856 as of June 30, 2013 compared with $36,078,533 as of December 31, 2012. Members’ equity of the Company was $331,469,602 as of June 30, 2013 compared with $371,595,683 as of December 31, 2012.


	December 31, 2012
	ELSM		EDM		GTTM
Assets
Investments in Investees, at fair value	$	379,593,219	$	249,255,409	$	328,713,522
Investments in affiliated Investees, at fair value		—		24,152,692		201,813,152
Cash and cash equivalents		1,876,062		24,595,019		1,635,585
Other assets		18,541,017		3,414,541		14,000,000

Total assets	$	400,010,298	$	301,417,661	$	546,162,259

Liabilities and Net Assets
Liabilities
Redemptions payable	$	19,735,371	$	15,277,149	$	13,395,455
Loan payable		—		—		12,000,000
Accrued expenses and other liabilities		475,457		572,542		1,672,706

Total liabilities		20,210,828		15,849,691		27,068,161
Net assets		379,799,470		285,567,970		519,094,098

Total liabilities and net assets	$	400,010,298	$	301,417,661	$	546,162,259

~~The~~Statement ~~Company’s investment objective is to target attractive long-term risk-adjusted returns across a variety~~ of ~~market~~Operations environments with volatility and correlation that are lower than those of the broad equity markets. To achieve this objective, the Company allocates all or substantially all of its assets among investment funds managed by the Managing Member (such funds and any successor funds thereto, individually, an “Investment Fund” and collectively the “Investment Funds”), each of which (directly or through other entities) allocates its assets to, or invests in entities (“Advisor Funds”) managed by, independent investment managers (collectively, the “Advisors”) that employ a broad range of investment strategies primarily within one or more of the following hedge fund sectors (each, an “Investment Sector” and, collectively, the “Investment Sectors”): the tactical trading sector, the equity long/short sector, the event driven sector and the relative value sector. Currently, substantially all of the Company’s assets are invested in three Investment Funds, each of which is managed by the Managing Member. The current Investment Funds are Global Tactical Trading Managers LLC (“GTTM”), which employs investment strategies in the tactical trading sector; Equity Long/Short Managers LLC (“ELSM”), which employs investment strategies within the equity long/short sector; and Event Driven Managers LLC (“EDM”), which employs investment strategies within the event driven sector. The balance of the Company’s assets are invested in Event Driven Managers Asset Tr (“EDMAT”), which is a trust containing certain interests in illiquid assets transferred by EDM and Relative Value Managers LLC (“RVM” and together with EDMAT and the Investment Funds, the “Investees”) which, along with EDMAT, is in the process of liquidation. In addition, the Company may, directly or indirectly, allocate assets to Advisors whose principal investment strategies are not within one of the Investment Sectors referenced herein.

~~Performance~~For of the ~~Company~~three ~~in any~~months ~~period~~ended ~~will~~September 30, be2013 ~~dependent upon the performance in the relevant period by the Investees~~ and ~~the~~September 30, ~~weighted average percentage of the Company’s assets in each of the Investees during the period. In addition~~2012, ~~performance is determined by~~ the ~~allocation~~ bystatements ~~the Investment Funds~~ of ~~their~~operations ~~assets~~are ~~with~~summarized ~~the~~as ~~various~~follows: ~~Advisors and the performance of each of those Advisors.~~

While the Managing Member currently expects to allocate assets to all the Investment Sectors through allocations to the Investment Funds, the Managing Member has no constraints with respect to the percentage of the Company’s assets to be allocated, directly or indirectly, to any single Advisor, group of Advisors, Investment Fund, or Investment Sector, or with respect to the number of Investment Funds and Advisors to which, directly or indirectly, assets of the Company are allocated at any time. The percentage of the Company’s assets to be allocated to any single Advisor, group of Advisors, Investment Fund or Investment Sector, and the number of Investment Funds and Advisors to which the Company allocates assets from time to time will be determined by the Managing Member in its sole discretion, based on factors deemed relevant by the Managing Member at the time of such allocation, which may include the amount of the Company’s assets under management, constraints on the capital capacity of the Investment Funds and Advisors, the availability of attractive opportunities, and other portfolio construction and portfolio management considerations.


	September 30, 2013
Income/(Loss)	ELSM			EDM			GTTM
Net realized gain/(loss) on Investees	$	10,767,491		$	1,682,809		$	(1,721,737	)
Net change in unrealized gain/(loss) on Investees		4,032,946			3,624,400			(6,344,475	)
Investment income		35			186			230
Expenses		(402,839	)		(406,508	)		(1,390,084	)

Net income/(loss) from operations	$	14,397,633		$	4,900,887		$	(9,456,066	)


	September 30, 2012
Income/(Loss)	ELSM			EDM			GTTM
Net realized gain/(loss) on Investees	$	9,686,491		$	4,506,787		$	3,355,671
Net change in unrealized gain/(loss) on Investees		(251,020	)		1,618,437			9,395,293
Investment income		1,331			1,693			1,349
Expenses		(407,088	)		(430,543	)		(1,414,079	)

Net income/(loss) from operations	$	9,029,714		$	5,696,374		$	11,338,234

~~Certain~~23 of the Company’s Investees may have liquidity exposure related to the recovery value of claims against Lehman Brothers Holdings, Inc. and certain of its subsidiaries and affiliates (“Lehman”). At the time of the Lehman insolvency, estimates of the recovery value of the Lehman assets were received from the majority, but not all, of the Advisor Funds, and the Company had no way of independently verifying or otherwise confirming the accuracy of the information provided. As a result, there can be no guarantee that such estimates were accurate. Based on the information received, the gross indirect exposure to Lehman did not materially affect the Company’s net assets at that time. There still remains significant uncertainty with respect to the ultimate outcome of the Lehman insolvency proceedings, and therefore the amounts ultimately recovered from Lehman could differ from such estimates, and such differences could be material at the Advisor Fund Level. The Company does not anticipate that the outcome of the Lehman insolvency proceedings will have a material impact on the results of its operations.

TheTable managing member of EDM created EDMAT, a Delaware statutory trust, for the benefit of its investors, including the Company. On March 31, 2009, EDM transferred to EDMAT its interest in certain illiquid investments, including illiquid investments made by Advisor Funds, as well as liquidating vehicles that Advisors formed as liquidity decreased for previously liquid investments, such as certain credit instruments. See “—Liquidity and Capital Resources” for a further discussion of EDMAT. Contents

~~RVM~~HEDGE ~~ceased~~FUND ~~trading~~MANAGERS activities effective July 1, 2009 and will dissolve at the time all assets are liquidated, liabilities are satisfied and liquidation proceeds are distributed through payment of a liquidating distribution. Investors in RVM (~~including the Company~~DIVERSIFIED) ~~will~~LLC receive proceeds from the liquidation over time as RVM receives redemption proceeds from Advisors. See “— Liquidity and Capital Resources” and Item 3. “Quantitative and Qualitative Disclosures About Market Risk — Risk Management.”

~~The~~NOTES TO ~~Company’s~~FINANCIAL ~~results~~STATEMENTS depend on the Managing Member, including in its capacity as managing member of each of the Investment Funds, and the ability of the Managing Member to recognize and capitalize on trends and other profit and investment opportunities within the Investment Sectors. Unlike many operating businesses, general economic or seasonal conditions may not have any direct effect on the profit potential of the Company due to the uncertain nature of the Company’s investments and since the Company’s investments in the Investment Funds are managed to seek to eliminate or reduce the impact of general economic or seasonal conditions. In addition, the Company’s past performance is not necessarily indicative of future results. Each Investment Fund allocates assets to Advisors that invest in various markets at different times and prior activity in a particular market does not mean that such market will be invested in by the Advisors or will be profitable in the future.

~~Results~~(Unaudited) ~~of Operations for the Three and Six Months Ended June 30, 2013 and June 30, 2012~~

~~The~~September ~~following presents a summary of the operations for the three and six months ended June~~ 30, 2013 and June 30, 2012 and a general discussion of each material Investee’s performance during those periods. The Investees’ dealing net asset value (“NAV”) and reported performance are prepared using the latest information available from the Advisor Funds at the time of such valuation in accordance with their LLC Agreement. The Investees’ investments in the Advisor Funds are determined utilizing NAVs supplied by, or on behalf of, the Advisors of each Advisor Fund. Furthermore, NAVs received from the administrator of the Advisor Funds may be estimates and such values will be used to calculate the NAV of the Investees for purposes of determining amounts payable on redemptions and reported performance of the Investees. Such estimates provided by the administrators of the Advisor Funds may be subject to subsequent revisions which may not be reflected in the Investees’ final month-end dealing NAV. The annual audited financial statements may reflect adjustments for such subsequent revisions which may result in a variance between the Investees’ total return reported in their audited financial statements and the reported performance based on the month-end dealing NAV.

~~Performance~~Note ~~for the Three and Six Months Ended June~~12 ~~30,~~- Significant ~~2013~~Investees

~~The~~For ~~Company’s net realized and unrealized gain/(loss) for~~ the ~~three~~nine ~~and six~~ months ended ~~June~~September 30, 2013 ~~was $1,942,076~~ and ~~$17,538,429,~~ ~~respectively, compared to the Company’s net realized and unrealized gain/(loss) for the three and six months ended June~~September 30, 2012, the statements of ~~$(5,438,816)~~operations ~~and~~are ~~$14,349,287,~~summarized ~~respectively.~~as follows:


	September 30, 2013
Income/(Loss)	ELSM			EDM			GTTM
Net realized gain/(loss) on Investees	$	26,910,571		$	14,678,022		$	4,288,127
Net change in unrealized gain/(loss) on Investees		9,420,087			10,879,299			5,272,897
Investment income		478			1,309			1,286
Expenses		(1,214,845	)		(1,220,934	)		(4,329,460	)

Net income/(loss) from operations	$	35,116,291		$	24,337,696		$	5,232,850

Overview


	September 30, 2012
Income/(Loss)	ELSM			EDM			GTTM
Net realized gain/(loss) on Investees	$	18,473,296		$	14,127,713		$	8,742,524
Net change in unrealized gain/(loss) on Investees		11,022,522			5,396,018			7,734,273
Investment income		1,822			4,715			3,775
Expenses		(1,338,375	)		(1,407,923	)		(4,053,678	)

Net income/(loss) from operations	$	28,159,265		$	18,120,523		$	12,426,894

~~The~~Statement ~~Company~~of isCash ~~designed~~Flows to be broadly exposed to the hedge fund market by allocating its assets to the Investment Funds in the Investment Sectors. As further described under Item 3. “Quantitative and Qualitative Disclosures About Market Risk — Risk Management,” quantitative analysis is combined with judgment to determine weightings, strategic return, risk and correlation estimates to inform the quantitative analysis. Judgment is applied to both estimates and weights in an attempt to achieve exposure to hedge funds while targeting attractive risk adjusted returns.

~~April~~For ~~brought weaker economic data early in~~ the ~~month,~~nine ~~making~~months ~~the~~ended ~~direction of fiscal and monetary policy somewhat more difficult to forecast. This was not the case in Japan~~September 30, ~~where~~2013 ~~the Bank of Japan’s announcement of expanded asset purchases confirmed policymakers’ dovish intent, weakening the yen further~~ and ~~extending the rally in Japanese equities. Gold prices experienced a sharp mid-month decline~~September 30, ~~partially driven by uncertainty over central bank policy in the U.S.~~2012, while underwhelming growth data out of emerging markets underscored a weakening demand outlook for commodities more broadly. Higher levels of intra-month volatility were reflective of investors’ struggle to discern between a temporary pause in data and a more lasting downturn. Despite aggregate quarterly earnings and sales growth that were also characteristic of a low-growth macro environment, positive momentum and bullish sentiment ultimately prevailed, with most equity markets finishing higher at month-end. However, the consistent improvement in economic data, which fueled the upward momentum early in the year, gave way to mixed messages in May. Optimism from better U.S. payrolls and strong Japanese growth data was tempered by weaker U.S. manufacturing, tepid Chinese activity data and persistent sluggishness in Europe. Concerns were initially shrugged off as markets marched higher, but this shifted when policy uncertainty resurfaced with Federal Reserve Chairman Ben Bernanke’s suggestion that quantitative easing could be tapered “in the next few meetings” if data continues to improve. This coincided with a sharp rise in yields as investors repriced fixed income assets. While some had expected Bernanke to qualify his initial comments on tapering in subsequent statements, he reinforced that tapering would likely begin “later this year” following the Federal Open Market Committee’s June meeting. Monetary policy also influenced markets elsewhere, with the European Central Bank and Bank of ~~England~~cash ~~remaining~~flows onare ~~hold~~summarized ~~despite~~as ~~challenging~~follows: economic conditions, while the Bank of Japan’s aggressive program of quantitative easing continued to be a key driver of Japanese asset price performances. The potential shift in monetary policy has had global implications, with emerging market assets and other carry-oriented investments coming under pressure. Market volatility has increased alongside a shift in cross-asset correlations, with investors acutely focused on digesting macro data releases and their impact on central banks’ reaction function.

Equity market momentum slowed notably over the quarter, but the MSCI World still ended with a positive return of 0.7% after strong gains throughout the first half of the quarter were not fully offset by losses starting in the second half of May. The small positive performance overall came with notable regional dispersion. Japan was among the strongest markets over the quarter with the Topix index (Total Return, in JPY) up 9.7%. The S&P 500 in the U.S. gained 2.9% over the quarter while the DJ Stoxx 600 in Europe declined by 3.0%. Emerging markets continued to struggle over the second quarter and especially in June with the MSCI Emerging Markets losing 8.0% over the quarter. High yield bonds, as measured by the Credit Suisse High Yield Index, lost around 1.4% over the quarter as both rising rates and declining risk sentiment in June hurt performance.


	September 30, 2013
	ELSM			EDM			GTTM
Cash flows from operating activities
Net income/(loss) from operations	$	35,116,291		$	24,337,696		$	5,232,850
Net change in investments in Investees and affiliated Investees		25,349,370			(2,584,468	)		40,734,257
Net change in operating assets and liabilities		(49,755,763	)		(2,034,413	)		12,925,359

Net cash provided by/(used in) operating activities		10,709,898			19,718,815			58,892,466

Cash flows from financing activities
Net subscriptions/(redemptions)		(35,087,289	)		(34,254,788	)		(35,459,655	)
Proceeds/(repayments) from loan		24,551,099			—			(12,000,000	)

Net cash provided by/(used in) financing activities		(10,536,190	)		(34,254,788	)		(47,459,655	)

Net change in cash and cash equivalents		173,708			(14,535,973	)		11,432,811
Cash and cash equivalents at beginning of period		1,876,062			24,595,019			1,635,585

Cash and cash equivalents at end of period	$	2,049,770		$	10,059,046		$	13,068,396

As24 mentioned above, central bank activity and especially the Federal Reserve’s comments on potential tapering of its quantitative easing program led to rising yields in most major developed markets. The increases were most pronounced in the U.S. and the UK, where 10-year yields increased by 64 bps and 68 bps respectively, but also Europe (10-year yields +44 bps) and Japan (10-year yields +30 bps) saw increasing yields. In foreign exchange, the U.S. dollar weakened slightly against the euro and the British pound, but strengthened against most other currencies, especially from emerging market or commodity-related economies, including 12.3% against the Australian dollar, 9.4% against the Brazilian real and 8.7% against the Indian rupee. The Japanese yen continued to weaken over the quarter, despite a short bout of yen strength in May, as monetary and fiscal easing continued in Japan. Commodity markets were generally negative over the quarter; the S&P GSCI Total Return Index lost 5.9%. Losses were most pronounced in precious metals as gold was down more than 20% and silver more than 30%.

27Table of Contents

~~The~~HEDGE ~~Company~~FUND ~~cannot~~MANAGERS ~~predict~~(DIVERSIFIED) ~~which~~LLC Investment Sector and accordingly which Investee will perform best in the future. The table below illustrates the portfolio weighting of each material Investee as of June 30, 2013, as well as each material Investee’s net return for the three and six months ended June 30, 2013.

Investee	Portfolio Weight as a %of Members’ Equity(1)			Three Months EndedJune 30, 2013Net Return(2)			Six Months EndedJune 30, 2013Net Return(2)
ELSM		41.16	%		(0.31	)%		5.36	%
EDM		28.31	%		2.24	%		7.00	%
GTTM		32.51	%		0.51	%		3.25	%

NOTES TO FINANCIAL STATEMENTS

(1Unaudited) Members’ equity, used in the calculation of the fair value of the Investees as a percentage of members’ equity, is reduced for member redemptions that are paid after the balance sheet date according to ASC 480, “Distinguishing Liabilities from Equity.” Members redemptions are included in redemptions payable in the Balance Sheet of the financial statements.

~~(2)~~September ~~These returns are based on the performance of Class C Series 1 units for ELSM~~30, ~~EDM~~2013 and GTTM. The returns include administration fees. No management fee or incentive allocation was charged by the managing member of the Investment Funds with respect to the Company’s investment in any of the Investment Funds. Past performance is not indicative of future results, which may vary.

~~For~~Note ~~the three and six months ended June~~12 ~~30, 2013, the Company’s Class~~- ~~A Series 1 units~~Significant ~~returned~~Investees ~~0.14% and 3.76%, respectively net of fees and incentive allocation.~~

The Investees


	September 30, 2012
	ELSM			EDM			GTTM
Cash flows from operating activities
Net income/(loss) from operations	$	28,159,265		$	18,120,523		$	12,426,894
Net change in investments in Investees and affiliated Investees		47,407,122			25,503,112			(54,942,151	)
Net change in operating assets and liabilities		20,956,396			4,062,744			11,426,282

Net cash provided by/(used in) operating activities		96,522,783			47,686,379			(31,088,975	)

Cash flows from financing activities
Net subscriptions/(redemptions)		(72,754,418	)		(52,432,409	)		27,188,106
Proceeds/(repayments) from loan		(17,500,000	)		2,800,000			—

Net cash provided by/(used in) financing activities		(90,254,418	)		(49,632,409	)		27,188,106

Net change in cash and cash equivalents		6,268,365			(1,946,030	)		(3,900,869	)
Cash and cash equivalents at beginning of period		2,383,725			11,003,284			11,203,993

Cash and cash equivalents at end of period	$	8,652,090		$	9,057,254		$	7,303,124

~~The~~25 ~~material Investees’ performance during the three and six months ended June 30, 2013 is described in the following.~~

EquityTable Long/Shortof Managers LLC Contents

AsItem of2. ~~June 30, 2013, ELSM represented approximately 41% of the Company~~Management’s ~~members’~~Discussion ~~equity. ELSM returned (0.31)%~~ and ~~5.36%,~~Analysis ~~respectively,~~of ~~for~~Financial ~~Class C~~Condition ~~Series 1 units for the three~~ and ~~six~~Results ~~months~~of ~~ended June 30, 2013.~~ Operations

~~For~~Overview ~~the Three Months Ended June 30, 2013~~

~~ELSM~~The ~~Advisors generated negative performance in the second quarter. In April, ELSM Advisors generated negative absolute performance,~~following ~~although~~discussion ~~there~~should ~~was~~be ~~some~~read dispersion. Top performing ELSM Advisors benefited from idiosyncratic stock gains and long exposure to more defensive sectors such as telecom, healthcare, and consumer staples. ELSM Advisors with greater net exposure to cyclical sectors and greater exposure to small market capitalization companies tended to underperform. In May, ELSM Advisors generated positive absolute performance, with most Advisors finishing the month in ~~positive~~conjunction territory. Top performing ELSM Advisors benefited from idiosyncratic stock gains, greater exposure to the U.S. and Europe, and long exposure to more cyclical sectors such as financials, industrials and technology. Underperforming ELSM Advisors suffered losses from long exposure to emerging markets and more defensive sectors, while short exposure broadly detracted across sectors. In June, ELSM Advisors generated negative absolute performance, although there was fairly high dispersion across Advisors. Performance of the sector in aggregate was generally in line with ~~ELSM Advisors’ net exposure given~~ the ~~moderate~~financial ~~decline~~statements of ~~global~~Hedge ~~equities.~~Fund ~~Top~~Managers ~~performing~~(Diversified) ~~ELSM~~LLC ~~Advisors benefited from long exposure to~~ (the ~~U.S.~~“Company”) and ~~to more defensive sectors including telecommunications and consumer staples, in addition to consumer discretionary. Given~~ the ~~weakness~~related innotes ~~emerging markets and Europe, underperforming ELSM Advisors lagged from exposure to those markets~~thereto. ~~ELSM Advisors with greater long exposure to more cyclical sectors, such as information technology, energy, and materials, also lagged peers.~~

28The Company is a Delaware limited liability company organized in March 2002 to operate as an investment fund. It commenced operations on April 1, 2002. HFS, a Delaware limited liability company, serves as the Company’s managing member (the “Managing Member”). Effective May 1, 2013, Goldman Sachs Hedge Fund Partners, LLC was renamed “Hedge Fund Managers (Diversified) LLC.”

~~For~~As of September 30, 2013, the ~~Six~~Company ~~Months~~had ~~Ended~~total ~~June~~assets of $337,229,234 compared with total assets of $407,674,216 as of December 31, 2012. Total liabilities of the Company were $25,314,959 as of September 30, 2013 compared with $36,078,533 as of December 31, 2012. Members’ equity of the Company was $311,914,275 as of September 30, 2013 compared with $371,595,683 as of December 31, 2012.

~~ELSM~~The ~~Advisors~~Company’s ~~generated~~investment ~~positive~~objective ~~performance~~is to target attractive long-term risk-adjusted returns across a variety of market environments with volatility and correlation that are lower than those of the broad equity markets. To achieve this objective, the Company allocates all or substantially all of its assets among investment funds managed by the Managing Member (such funds and any successor funds thereto, individually, an “Investment Fund” and collectively the “Investment Funds”), each of which (directly or through other entities) allocates its assets to, or invests in entities (“Advisor Funds”) managed by, independent investment managers (collectively, the ~~first~~“Advisors”) ~~half~~that employ a broad range of ~~2013~~investment asstrategies ~~gains~~primarily within one or more of the following hedge fund sectors (each, an “Investment Sector” and, collectively, the “Investment Sectors”): the tactical trading sector, the equity long/short sector, the event driven sector and the relative value sector. Currently, substantially all of the Company’s assets are invested in three Investment Funds, each of which is managed by the ~~first~~Managing ~~quarter~~Member. ~~were~~The ~~not~~current ~~fully~~Investment ~~offset~~Funds are Global Tactical Trading Managers LLC (“GTTM”), which employs investment strategies in the tactical trading sector; Equity Long/Short Managers LLC (“ELSM”), which employs investment strategies within the equity long/short sector; and Event Driven Managers LLC (“EDM”), which employs investment strategies within the event driven sector. The balance of the Company’s assets are invested in Event Driven Managers Asset Tr (“EDMAT”), which is a trust containing certain interests in illiquid assets transferred by ~~losses~~EDM and Relative Value Managers LLC (“RVM” and together with EDMAT and the Investment Funds, the “Investees”) which, along with EDMAT, is in the process of liquidation. In addition, the Company may, directly or indirectly, allocate assets to Advisors whose principal investment strategies are not within one of the ~~second~~Investment ~~quarter~~Sectors referenced herein.

~~While~~Performance ~~rising~~of ~~equity~~the ~~markets~~Company ~~provided~~in aany ~~tail~~period ~~wind~~will ~~for~~be ~~ELSM~~dependent ~~Advisors~~upon in the ~~first quarter, idiosyncratic~~ performance ~~from stock picking was also strong and ELSM Advisors generated positive performance~~ in ~~every~~the ~~month.~~relevant Inperiod ~~January,~~by ~~top~~the ~~performing~~Investees ~~ELSM Advisors benefited from idiosyncratic stock gains~~ and ~~long exposure to~~ the ~~financials, healthcare, energy~~weighted ~~and~~average ~~consumer~~percentage ~~sectors.~~of ~~Underperforming~~the ~~ELSM~~Company’s ~~Advisors~~assets ~~were~~in ~~generally~~each ~~more~~of ~~defensively~~the ~~positioned~~Investees ~~with~~during ~~lower~~the ~~overall net exposure, while short exposure broadly detracted across sectors given equity market strength~~period. In ~~February~~addition, ~~top~~performance ~~performing~~is ~~ELSM Advisors~~determined ~~benefited~~by ~~from~~the ~~idiosyncratic~~allocation ~~stock~~by ~~gains and long exposure to~~ the ~~consumer~~Investment ~~staples,~~Funds ~~industrials,~~of ~~and~~their ~~healthcare~~assets ~~sectors.~~with ~~Given weakness in emerging markets, underperforming ELSM Advisors suffered losses from those markets as well as from exposure to~~ the ~~energy~~various ~~and materials sectors. In March, top performing ELSM~~ Advisors ~~benefited from idiosyncratic stock gains~~ and ~~long exposure to more defensive sectors such as healthcare, consumer staples, and telecom. Given~~ the ~~continued~~performance ~~weakness in~~of ~~emerging~~each ~~markets, ELSM Advisors again lagged from exposure to~~ of those ~~markets. Short exposure broadly detracted across ELSM~~ Advisors ~~given the positive market conditions in March~~.

~~Performance~~While ~~was more mixed during~~ the ~~second~~Managing ~~quarter~~Member ofcurrently ~~the~~expects ~~year~~to ~~with~~allocate ~~losses~~assets into ~~April~~all ~~and~~the ~~June~~Investment ~~not~~Sectors ~~offset~~through allocations byto ~~gains~~the inInvestment ~~May. In April~~Funds, ~~top performing~~the ~~ELSM~~Managing ~~Advisors~~Member ~~benefited~~has ~~from~~no ~~idiosyncratic~~constraints ~~stock~~with ~~gains~~respect ~~and~~to ~~long~~the ~~exposure~~percentage toof ~~more~~the ~~defensive~~Company’s ~~sectors~~assets ~~such~~to asbe ~~telecom~~allocated, ~~healthcare,~~directly ~~and~~or ~~consumer~~indirectly, ~~staples.~~to ~~ELSM~~any ~~Advisors~~single ~~with~~Advisor, ~~greater~~group ~~net~~of ~~exposure~~Advisors, toInvestment ~~cyclical~~Fund, ~~sectors~~or ~~and greater exposure to~~Investment ~~small~~Sector, ~~market~~or ~~capitalization~~with ~~companies~~respect ~~tended~~ to ~~underperform.~~the Innumber ~~May,~~of ~~top~~Investment ~~performing~~Funds ~~ELSM~~and Advisors ~~benefited~~to ~~from~~which, ~~idiosyncratic~~directly ~~stock~~or ~~gains~~indirectly, ~~greater~~assets ~~exposure~~of to the ~~U.S.~~Company ~~and~~are ~~Europe,~~allocated ~~and~~at ~~long~~any ~~exposure~~time. toThe ~~more~~percentage ~~cyclical~~of ~~sectors~~the ~~such~~Company’s asassets ~~financials, industrials,~~to ~~and~~be ~~technology.~~allocated ~~Underperforming~~to ~~ELSM~~any ~~Advisors~~single ~~suffered~~Advisor, ~~losses~~group ~~from~~of Advisors, ~~long~~Investment ~~exposure~~Fund toor ~~emerging~~Investment ~~markets~~Sector, and ~~more~~the ~~defensive~~number ~~sectors,~~of ~~while~~Investment ~~short~~Funds ~~exposure~~and ~~broadly~~Advisors ~~detracted~~to ~~across~~which ~~sectors.~~the InCompany ~~June,~~allocates ~~top~~assets ~~performing ELSM Advisors benefited~~ from ~~long~~ ~~exposure~~time to ~~the~~time ~~U.S.~~will ~~and~~be todetermined ~~more~~by ~~defensive~~the ~~sectors~~Managing ~~including~~Member ~~telecommunications~~in ~~and~~its ~~consumer~~sole ~~staples~~discretion, inbased ~~addition~~on tofactors ~~consumer~~deemed relevant ~~discretionary.~~by ~~Given~~ the ~~weakness~~Managing inMember ~~emerging~~at ~~markets~~the ~~and~~time ~~Europe~~of such allocation, ~~underperforming~~which ~~ELSM~~may ~~Advisors~~include ~~lagged~~the ~~from~~amount ~~exposure to~~of ~~those~~the ~~markets.~~Company’s ~~ELSM~~assets ~~Advisors~~under ~~with~~management, ~~greater~~constraints ~~long~~on ~~exposure~~the tocapital ~~more~~capacity ~~cyclical~~of ~~sectors~~the ~~such~~Investment asFunds ~~information~~and ~~technology~~Advisors, ~~energy~~the availability of attractive opportunities, and ~~materials,~~other ~~also~~portfolio ~~lagged~~construction ~~peers~~and portfolio management considerations.

~~Event~~26 ~~Driven Managers LLC~~

AsTable of June 30, 2013, EDM represented approximately 28% of the Company’s members’ equity. EDM returned 2.24% and 7.00%, respectively, for Class C Series 1 units for the three and six months ended June 30, 2013. Contents

~~For~~Certain of the ~~Three~~Company’s ~~Months~~Investees ~~Ended~~may ~~June 30~~have liquidity exposure related to the recovery value of claims against Lehman Brothers Holdings, ~~2013~~Inc. and certain of its subsidiaries and affiliates (“Lehman”). At the time of the Lehman insolvency, estimates of the recovery value of the Lehman assets were received from the majority, but not all, of the Advisor Funds, and the Company had no way of independently verifying or otherwise confirming the accuracy of the information provided. As a result, there can be no guarantee that such estimates were accurate. Based on the information received, the gross indirect exposure to Lehman did not materially affect the Company’s net assets at that time. There still remains significant uncertainty with respect to the ultimate outcome of the Lehman insolvency proceedings, and therefore the amounts ultimately recovered from Lehman could differ from such estimates, and such differences could be material at the Advisor Fund Level. The Company does not anticipate that the outcome of the Lehman insolvency proceedings will have a material impact on the results of its operations.

~~Performance~~The managing member of EDM ~~Advisors~~created ~~in the second quarter was modestly positive~~EDMAT, ~~with~~a ~~gains~~Delaware ~~generated during April and May, followed by losses in June. Most sub-strategies employed by EDM Advisors (e.g. special~~statutory ~~situations equities~~trust, ~~merger~~for ~~arbitrage,~~the ~~various~~benefit ~~distressed~~of ~~situations~~its ~~and structured credit) generated positive performance during April and May~~investors, ~~but~~including ~~suffered~~the ~~in June as macroeconomic concerns, most notably investor sensitivity around Federal Reserve tightening, led to broad losses across risk assets~~Company. ~~Across~~On ~~strategies~~March 31, ~~EDM Advisors with greater net long exposures and/or portfolios with higher degrees of underlying risk generally performed best given the positive trend~~2009, ~~although these~~ EDM ~~Advisors~~ ~~tended~~transferred to ~~perform~~EDMAT ~~worse~~its interest in ~~June~~certain asilliquid ~~risk assets broadly declined. As expected~~investments, ~~EDM~~including ~~Advisors~~illiquid ~~with~~investments ~~more~~made ~~balanced~~by ~~and/or~~Advisor ~~net~~Funds, ~~short~~as ~~exposures experienced more muted performance during the quarter. Event driven equities generally performed~~ well ~~during~~ ~~the~~as ~~second~~liquidating ~~quarter,~~vehicles ~~with a strong market backdrop in April and May, along with outperformance from some common holdings~~ that ~~experienced idiosyncratic events during the quarter. Merger arbitrage performance was also generally positive,~~ ~~although~~Advisors itformed ~~represented~~as ~~somewhat~~liquidity ~~limited~~decreased ~~exposure~~ for ~~many~~previously ~~EDM~~liquid ~~Advisors. Corporate credit performed well in April and May~~investments, ~~supported~~such byas ~~low~~certain ~~Treasury~~credit ~~yields and positive equity market performance during the first two months of the quarter~~instruments. ~~While~~See ~~the upside~~“—Liquidity inand ~~credit~~Capital ~~has~~Resources” ~~been~~for ~~somewhat~~a ~~capped~~further bydiscussion ~~already rich valuations, credit continued to rally throughout most~~ of ~~April and May with yields on performing credit hovering near record lows~~EDMAT.

29RVM ceased trading activities effective July 1, 2009 and will dissolve at the time all assets are liquidated, liabilities are satisfied and liquidation proceeds are distributed through payment of a liquidating distribution. Investors in RVM (including the Company) will receive proceeds from the liquidation over time as RVM receives redemption proceeds from Advisors. See “— Liquidity and Capital Resources” and Item 3. “Quantitative and Qualitative Disclosures About Market Risk — Risk Management.”

~~Additionally~~The Company’s results depend on the Managing Member, aincluding ~~number~~in its capacity as managing member of ~~commonly~~each ~~held~~of ~~stressed,~~the ~~distressed~~Investment Funds, and ~~liquidation~~the ~~investments~~ability ~~contributed~~of ~~positively~~the Managing Member to ~~performance~~recognize ~~during~~and ~~the~~capitalize ~~quarter~~on ~~for~~trends ~~EDM~~and ~~Advisors~~other inprofit ~~aggregate~~and investment opportunities within the Investment Sectors. ~~Structured~~Unlike ~~credit~~many operating businesses, general economic or seasonal conditions may not have any ~~exposure~~direct ~~was~~effect ~~also~~on athe ~~contributor,~~profit ~~with~~potential ~~price~~of ~~appreciation~~the ~~seen~~Company ~~across~~due ~~most~~to ~~portfolios~~the ~~invested~~uncertain innature ~~RMBS,~~of ~~CMBS~~the Company’s investments and ~~structured~~since ~~corporate~~the ~~credit.~~Company’s ~~Portfolio~~investments ~~hedges~~in ~~detracted~~the ~~over~~Investment Funds are managed to seek to eliminate or reduce the ~~quarter~~impact ~~given~~of general economic or seasonal conditions. In addition, the ~~broad~~Company’s ~~appreciation~~past ~~across~~performance ~~most~~is ~~risk~~not necessarily indicative of future results. Each Investment Fund allocates assets, ~~however,~~to Advisors that invest in various markets at different times and prior activity ~~they~~in ~~were~~a ~~one~~particular ofmarket ~~the~~does ~~few~~not ~~areas~~mean that ~~generated~~such ~~positive~~market ~~performance~~will ~~across~~be ~~portfolios~~invested in ~~June~~by the Advisors or will be profitable in the future.

~~For~~Results of Operations for the ~~Six~~Three and Nine Months Ended ~~June~~September 30, 2013 and September 30, 2012

~~EDM~~The ~~Advisors~~following ~~generated~~presents a ~~positive~~summary ~~performance~~of inthe operations for the ~~first~~three ~~half~~and ofnine months ended September 30, 2013 asand ~~performance~~September 30, ~~was~~2012 ~~positive~~and ina ~~every~~general ~~month~~discussion ~~except for~~of ~~June~~each material Investee’s performance during those periods. The ~~drivers~~Investees’ ofdealing net asset value (“NAV”) and reported performance ~~were~~are ~~largely~~prepared ~~consistent~~using ~~throughout~~the latest information available from the ~~first~~Advisor ~~six~~Funds ~~months,~~at the time of such valuation in accordance with their LLC Agreement. The Investees’ investments in the ~~majority~~Advisor ofFunds are ~~sub-strategies~~determined ~~employed~~utilizing NAVs supplied by, ~~EDM~~or on behalf of, the Advisors ~~generating~~of ~~positive~~each ~~performance~~Advisor ~~through~~Fund. ~~May~~Furthermore, ~~but~~NAVs ~~suffering~~received from the administrator of the Advisor Funds may be estimates and such values will be used to calculate the NAV of the Investees for purposes of determining amounts payable on redemptions and reported performance of the Investees. Such estimates provided by the administrators of the Advisor Funds may be subject to subsequent revisions which may not be reflected in ~~June~~the Investees’ final month-end dealing NAV. The annual audited financial statements may reflect adjustments for such subsequent revisions which may result in a variance between the Investees’ total return reported in their audited financial statements and the reported performance based on the month-end dealing NAV.

~~Event~~27 driven equities generally performed well, with a strong market backdrop for much of the semester and outperformance from some common holdings. Merger arbitrage performance was also generally positive, although it represented somewhat limited exposure for many EDM Advisors. Fixed income performed well, supported by low Treasury yields and positive equity market performance for most of the first half of the year. While the upside in credit has been somewhat capped by already rich valuations, credit continued to rally throughout much of the period with yields on performing credit hovering near record lows by the end of the second quarter. Additionally, a number of commonly held stressed, distressed and liquidation investments contributed positive performance for many EDM Advisors. Structured credit exposure was also a notable contributor, with price appreciation across RMBS, CMBS and structured corporate credit. Portfolio hedges served as detractors through May given the broad appreciation across most risk assets and the continuation of muted and downward trending volatility. However, hedges were one of the few areas that generated positive performance across portfolios during June.

GlobalTable Tacticalof Trading Managers LLC Contents

AsPerformance ~~of June 30, 2013, GTTM represented approximately 33% of the Company’s members’ equity. GTTM returned 0.51% and 3.25%, respectively,~~ for ~~Class C Series 1 units for~~ the ~~three~~Three and ~~six~~Nine ~~months~~Months ~~ended~~Ended ~~June~~September 30, 2013.

~~For~~The Company’s net realized and unrealized gain/(loss) for the ~~Three~~three ~~Months~~and ~~Ended June~~nine months ended September 30, 2013 was $4,526,790 and $22,065,219, respectively, compared to the Company’s net realized and unrealized gain/(loss) for the three and nine months ended September 30, 2012 of $9,060,888 and $23,410,175, respectively.

~~GTTM~~Overview Advisors realized positive performance in the second quarter, as gains in April and May were not fully offset by losses in June. Gains in April were realized by both Managed Futures and Macro GTTM Advisors. Macro GTTM Advisors benefited from foreign exchange trading, most notably from short exposure to the Japanese yen. Trading in fixed income was mixed overall. Managed Futures GTTM Advisors generated gains from long positions across global equity indices, particularly in the U.S. and Japan. Fixed income trading also contributed positively. Trading in commodities was mixed, but broadly negative for Managed Futures GTTM Advisors with long energy positions and positive for those with short precious metals exposure. In May, gains were realized by Macro GTTM Advisors but were partially offset by losses generated by Managed Futures GTTM Advisors. Macro GTTM Advisors mostly generated positive performance in fixed income, driven by short exposure in the U.S., as well as in foreign exchange trading due to short yen exposure. Trading in equities was more mixed due to regional dispersion, while commodities trading generated losses due to a broad sell-off across the complex. Managed Futures GTTM Advisors experienced notable losses as long bond positions suffered as yields increased across the curve, most notably in the U.S. trading in currencies also generated losses, with Advisors with long positions in emerging market currencies suffering. Trading in commodities was more mixed, while trading in equities partially offset losses as long positions across global indices appreciated in the month. In June, losses were realized by both Macro and Managed Futures GTTM Advisors, but with a large degree of dispersion. Most Managed Futures GTTM Advisors realized moderate losses, but a number of funds were notable outliers to the downside. Long positions in global equities were the largest detractor in most cases. Residual long positions in fixed income detracted for most managers, although these were largely liquidated, or

30The Company is designed to be broadly exposed to the hedge fund market by allocating its assets to the Investment Funds in the Investment Sectors. As further described under Item 3. “Quantitative and Qualitative Disclosures About Market Risk — Risk Management,” quantitative analysis is combined with judgment to determine weightings, strategic return, risk and correlation estimates to inform the quantitative analysis. Judgment is applied to both estimates and weights in an attempt to achieve exposure to hedge funds while targeting attractive risk adjusted returns.

After a challenging end to the ~~even~~second ~~reversed~~quarter after May 22nd, bywhen ~~month-end~~Federal Reserve Chairman Ben Bernanke first discussed the chance of tapering of the Federal Reserve’s quantitative easing policy, risk markets moved steadily higher through July as markets became more comfortable with the likely implications of tapering and other shifts in global monetary policy. ~~Within~~Macro ~~commodities~~data was not uniformly positive but generally showed improvement, ~~short~~as ~~positions~~European Purchasing Manager Indices (PMIs) surged to their highest level in nearly ~~precious~~two ~~metals~~years and ~~long~~U.S. ~~positions~~payrolls improved more than expected, with these data points only partially tempered by continued softness in ~~crude~~the ~~oil~~Chinese ~~helped~~economy. toWith ~~offset~~this supportive backdrop, many equity indices rose toward new highs, while credit largely recouped losses ~~elsewhere~~from the second quarter. ~~Macro~~Government ~~GTTM~~bonds ~~Advisors~~stabilized ~~experienced~~after ~~wide~~a sharp sell-off in May and June, albeit with continued daily volatility. In August, risk assets traded sideways through the early part of the month, as mixed macro ~~performance~~data ~~dispersion~~led to choppy price action given the ~~intra-month~~dependence ~~reversals~~of inthe ~~several~~Federal ~~markets.~~Reserve’s ~~Attribution~~tapering ~~from~~decision ~~currencies~~on ~~was~~the ~~varied~~strength ~~but~~of ~~likely~~the ~~negative~~economic recovery. This gave way to downward momentum in ~~aggregate~~equities as the month progressed, with bond yields rising amid light news flow as ainvestors ~~pullback~~digested inthe likelihood and implications of the ~~trend~~move. Geopolitical risk also reasserted itself with the prospect of a ~~stronger~~military strike on Syria. Aside from the continued focus on the uncertain direction of U.S. ~~dollar~~monetary ~~resulted~~policy, markets intook ~~losses~~note of reasons for ~~many~~renewed ~~Advisors~~optimism elsewhere. ~~Trading~~A sharp improvement in European economic activity did not escape notice, prompting some investors to revisit the relatively cheap valuation of European equities and leading to ~~fixed~~outperformance ~~income~~compared to other geographies. September was ~~mixed~~an event-heavy month, ~~while~~with ~~long~~the ~~positions~~outcomes generally supporting continued improvement in risk sentiment. Early macro data lent credence to those optimistic about global growth, as PMI numbers broadly exceeded expectations, with this positive impulse only partially mitigated by a somewhat disappointing U.S. ~~and~~payrolls ~~Japanese~~report. ~~equities~~Next, ~~resulted~~U.S. politicians walked back from their harsh rhetoric regarding Syria, thereby easing geopolitical risks. Through the first half of the month though, the most eagerly anticipated event was the Fed’s monetary policy decision. The outcome was equal to the drama leading up to it, as the Federal Open Market Committee surprised the prevailing market consensus by electing not to taper the pace of asset purchases. This provided renewed fuel for the move higher, but the momentum proved to be short-lived. U.S. politics again stole the stage late in ~~modest~~the ~~losses~~month, with the prospect of a government shutdown and a debt ceiling debate weighing on risk assets.

~~For~~After the ~~Six~~more ~~Months~~muted ~~Ended~~returns in the second quarter, equity ~~June 30~~markets resumed their positive trajectory from earlier in the year as the MSCI World Index rose by 8.2% over the quarter. While the majority of markets were positive, ~~2013~~the theme of regional differentiation continued with the S&P 500 in the U.S. gaining 5.2%, the DJ Stoxx 600 in Europe 8.9% and the Topix Index in Japan 6.1%. Emerging markets were able to recover some of the losses from the second quarter with the MSCI Emerging Markets Index up 5.9% in the third quarter, but unlike most developed markets, the index remains in negative territory year-to-date. Credit markets also generated positive returns with the Credit Suisse High Yield Index up 2.4% over the quarter. In fixed income markets, the upward trend in yields continued, given the prospects of reduced quantitative easing in the U.S. However, a significant part of this move higher in yields was reversed in September. After peaking early in the month, yields started to move lower when a below-expectations payroll report in the U.S. made markets discount the probability of tapering and intensified after the Federal Open Market Committee announced their decision to maintain the pace

~~GTTM~~28 ~~Advisors contributed positive performance in the first half of the year as GTTM Advisors in aggregate generated positive returns in every month except for June.~~

ForTable Macro GTTM Advisors, equity and FX positions were the primary driver of positive performance in January and March, while trading in commodities and fixed income was more mixed in these months. In February, positive performance was generally driven by long positions in fixed income, U.S. equities and credit. While performance in foreign exchange was mixed, depending on U.S. dollar positions, long commodity exposure generally contributed losses. Managed Futures GTTM Advisors also generated positive performance in January and March with largely similar attribution. Equity and foreign exchange positions contributed positively while especially in January fixed income positions were a notable detractor and commodities trading was largely mixed in both months. Performance was more mixed in February when fixed income was the most notable contributor to performance, as long positioning across the curve benefited as yields decreased in the second half of the month. Trading in equities also contributed positively as long positions generated gains despite giving back some performance near month-end. Commodities trading was a significant detractor as long energies positions suffered, while trading in foreign exchange also detracted. Contents

~~Macro~~ of ~~GTTM~~asset ~~Advisors~~purchases ~~also~~in ~~generated~~their ~~positive~~September 18th ~~performance~~meeting. ~~during~~From the ~~second~~end ~~quarter.~~of InJune ~~April,~~to ~~positive~~the ~~performance~~end ~~was~~of ~~primarily~~September, ~~driven~~U.S. ~~by foreign~~10-year ~~exchange~~yields ~~trading~~rose ~~while~~around ~~fixed~~12bps, ~~income~~but ~~trading~~that ~~was~~is ~~more~~down ~~mixed.~~from ~~Currency~~a ~~positions~~49bps ~~continued~~increase ~~to contribute positively in May and performance contribution~~ from ~~fixed~~the quarter’s ~~income~~peak ~~turned~~level ~~largely~~reached ~~positive,~~on ~~driven~~September ~~by short positions~~5th. ~~Long~~Interest ~~equity~~rates ~~positions still~~in ~~contributed~~Europe ~~positively~~generally infollowed ~~April~~a ~~but~~similar ~~were~~path ~~more~~with ~~mixed~~UK in10-year ~~May.~~yields ~~There~~up ~~was~~28bps ~~notable~~and ~~performance~~European ~~dispersion~~10-year ~~across~~yields ~~Macro~~up ~~GTTM~~5bps ~~Advisors~~between in June, as30 ~~many~~and ~~markets~~September ~~experienced~~30, ~~notable reversals~~2013. ~~Attribution~~The ~~from~~continued ~~currencies~~commitment toward ~~was~~low ~~varied~~policy ~~but~~rates ~~likely negative~~ in ~~aggregate,~~all asthree aeconomies ~~pullback~~meant, inhowever, ~~the~~that ~~trend~~2-year ofyields aeither ~~stronger~~came ~~U.S.~~down ~~dollar~~marginally ~~resulted~~or, in ~~losses~~the ~~for~~case ~~many~~of ~~Advisors.~~the ~~Trading~~UK, inincreased ~~fixed~~only ~~income was mixed~~slightly, ~~while~~leading ~~long~~to ~~positions~~steeper inyield Ucurves.S. ~~and~~Interest ~~Japanese~~rates ~~equities~~in ~~resulted~~Japan infollowed ~~modest~~a ~~losses~~different ~~and~~path ~~short~~over the ~~positions~~third inquarter ~~gold~~as ~~or other~~continued ~~precious~~easing ~~metals~~of ~~were~~monetary ~~profitable~~policy ~~for~~by ~~some~~the ~~Advisors.~~Bank ~~Managed~~of ~~Futures~~Japan ~~GTTM~~pushed ~~Advisors~~yields inlower ~~aggregate~~with ~~contributed~~10-year ~~losses~~yields ~~over~~down ~~the~~around ~~quarter~~17bps asfrom ~~gains~~the inend ~~April~~of ~~were~~the ~~more~~second ~~than~~quarter ~~offset~~to bythe ~~losses~~end inof ~~May~~the ~~and~~third ~~June~~quarter. ~~Gains~~In inforeign ~~April~~exchange, ~~were~~the ~~largely~~U.S. ~~driven~~dollar generally byweakened ~~long positions~~against inother ~~global~~developed ~~equities~~market ~~and~~currencies ~~long~~but ~~positions~~strengthened inagainst ~~fixed~~a ~~income,~~number ~~while~~of ~~commodities~~emerging ~~trading~~market ~~was~~currencies ~~more~~as ~~negative.~~higher Inyields ~~May,~~in the ~~main~~U.S. ~~detractor~~continued ~~were~~to ~~long~~put ~~positions~~emerging in fixed income ~~that~~and ~~were~~currency ~~negatively~~markets ~~impacted~~under inpressure. ~~the~~The ~~rising~~most ~~yield~~notable move ~~environment.~~from ~~Trading~~the ~~in currencies~~end ~~also~~of ~~contributed~~June ~~losses~~to ~~while~~the ~~commodities~~end ~~were~~of ~~more~~September ~~mixed~~was ~~and~~a ~~equities~~13.6% ~~generally~~depreciation ~~contributed~~of ~~positively.~~the ~~May’s~~Indian ~~trend~~rupee. ~~reversed~~Commodity inmarkets ~~June,~~were ~~when~~mostly ~~equity~~positive ~~trading~~over ~~was~~the quarter; the ~~main~~S&P ~~detractor~~GSCI ~~for~~Total ~~Managed~~Return ~~Futures~~Index ~~GTTM~~gained ~~Advisors~~4.8%. ~~Foreign~~The ~~exchange~~notable ~~and fixed~~exceptions ~~income~~to ~~performance~~this ~~was~~trend ~~more~~were ~~mixed~~some agricultural ~~but~~commodities. ~~detracted~~Most ~~for~~notably, acorn ~~number~~and ofsoybeans ~~managers~~experienced ~~while~~significant ~~short~~declines ~~positions~~ in ~~precious~~July ~~metals~~ and ~~long~~September ~~positions~~and inended ~~crude~~the ~~oil~~quarter ~~helped~~down ~~offset~~35% ~~some~~and of18% ~~the losses~~respectively.

~~Performance~~The Company cannot predict which Investment Sector and accordingly which Investee will perform best in the future. The table below illustrates the portfolio weighting of each material Investee as of September 30, 2013, as well as each material Investee’s net return for the ~~Three~~three and ~~Six~~nine ~~Months~~months ~~Ended~~ended ~~June~~September 30, ~~2012~~2013.

The Company’s net realized and unrealized gain/(loss) for the three and six months ended June 30, 2012 was $(5,438,816) and $14,349,287, respectively, compared to the Company’s net trading gain/(loss) for the three and six months ended June 30, 2011 of $(7,236,940) and $1,249,716, respectively.


Investee	Portfolio Weight as a % of Members’ Equity⁽¹⁾			Three Months Ended September 30, 2013 Net Return⁽²⁾			Nine Months Ended September 30, 2013 Net Return⁽²⁾
ELSM		41.26	%		3.84	%		9.41	%
EDM		28.34	%		1.78	%		8.90	%
GTTM		31.61	%		(1.64	)%		1.56	%

~~Overview~~(1) Members’ equity, used in the calculation of the fair value of the Investees as a percentage of members’ equity, is reduced for member redemptions that are paid after the balance sheet date according to ASC 480, “Distinguishing Liabilities from Equity.” Members’ redemptions are included in redemptions payable in the Balance Sheet of the financial statements.

~~After~~(2) aThese ~~very~~returns ~~benign~~are ~~start~~based toon the ~~year,~~performance ~~the~~of ~~second~~Class ~~quarter~~C ofSeries ~~2012~~1 ~~proved~~units tofor beELSM, ~~more~~EDM ~~challenging~~and ~~for~~GTTM. ~~markets~~The returns include administration fees. ~~Volatility~~No ~~increased~~management ~~notably over~~fee ~~the~~or ~~quarter~~incentive ~~and~~allocation ~~most~~was ~~risk~~charged ~~assets~~by ~~suffered~~the amanaging ~~significant~~member ~~decline,~~of ~~giving~~the ~~back~~Investment aFunds ~~large~~with ~~part~~respect ofto the ~~gains~~Company’s ~~made~~investment ~~during~~in any of the ~~first~~Investment ~~quarter~~Funds. ~~Most~~Past ~~risk~~performance ~~assets~~is ~~started~~not ~~into~~indicative ~~the~~of ~~quarter~~future ~~with~~results, anwhich ~~early~~may ~~sell-off,~~ vary.

31For the three and nine months ended September 30, 2013, the Company’s Class A Series 1 units returned 0.91% and 4.71%, respectively, net of fees and incentive allocation.

following a weaker U.S. payrolls report, but after a recovery over the second half of April, performance was largely flat over the month as a whole. That changed notably in May, when bearishness dominated market sentiment. Risk assets sold off steadily throughout the month as markets were confronted with a steady stream of negative data points and headlines, including European sovereign debt concerns and disappointing economic data releases in the U.S. and China. Markets remained choppy in June as a continued deterioration in economic data was balanced against a more proactive stance from policymakers. The ~~month~~Investees was characterized by high volatility and choppiness with some of the year’s largest one-day moves in the S&P 500 realized in June. An easing of near-term concerns in Europe spurred a rally into month-end as the outcome of the widely anticipated Greek elections was more benign than some had feared and a new agreement on European bank recapitalizations suggested the potential for eliminating the circular funding link between financials and sovereigns. Over the quarter as a whole, global equity markets (proxied by the MSCI World Index) were down 5.1%. While performance was generally negative across regions there was notable dispersion with emerging markets (proxied by the MSCI Emerging Markets Index) down 10.0% whereas U.S. equities (proxied by the S&P 500) only lost 2.8%. Commodities also reflected the deteriorating global growth picture with the S&P GSCI Total Return Index losing 12.4% over the quarter, driven by losses in energy, industrial metals and precious metals, whereas agriculturals continued to perform positively. In foreign exchange markets, investors’ more cautious attitude to risk assets was reflected in a broadly stronger U.S. dollar. The U.S. dollar rallied primarily against emerging market currencies, including the Brazilian Real, the Indian Rupee and the Russian Ruble, but also the Euro depreciated 5.1% against the U.S. dollar, reflecting the market’s concerns around the sovereign debt situation. In fixed income, yields in major developed markets returned to their declining trend after having increased during the first quarter of the year. This move was most pronounced at the back end of the U.S. government bond curve, where 30-year yields declined by 58 bps and 10-year yields by 56 bps. 10-year U.K. Gilt yields declined by 47 bps and 10-year German Bund yields fell by 21 bps. Performance in credit was positive over the month as the negative performance impact from a widening in credit spreads (for example, the spread on the Credit Suisse High Yield Index increased by 41 bps) was offset by the positive performance impact from lower yields, as mentioned above. Overall, the Credit Suisse High Yield Index generated a positive return of 1.56% over the quarter.

The ~~table below illustrates the portfolio weighting of each~~ material ~~Investee as of June 30, 2012, as well as each material Investee~~Investees’s ~~net~~performance ~~return~~during ~~for~~ the three and ~~six~~nine months ended ~~June~~September 30, ~~2012.~~2013 is described in the following.

Investee	Portfolio Weight as a %of Members’ Equity(1)			Three Months EndedJune 30, 2012Net Return(2)			Six Months EndedJune 30, 2012Net Return(2)
ELSM		45.32	%		(1.38	)%		4.34	%
EDM		27.23	%		(0.26	)%		3.90	%
GTTM		35.38	%		(1.39	)%		0.78	%

Equity Long/Short Managers LLC

~~(1)~~As ~~Members’~~of ~~equity~~September 30, ~~used~~2013, inELSM ~~the~~represented ~~calculation~~approximately of41% ~~the fair value~~ of the ~~Investees~~Company’s ~~as a percentage of~~ members’ equity,. isELSM ~~based~~returned on3.84% ~~the~~and ~~members’~~9.41%, ~~equity~~respectively, ~~per~~for ~~the~~Class C ~~Balance~~Series 1 units ~~Sheet~~for the three and innine ~~accordance~~months ~~with~~ended ~~ASC 480~~September 30, ~~“Distinguishing Liabilities from Equity~~2013.”

~~(2)~~For ~~These returns are based on~~ the ~~performance~~Three ofMonths ~~Class~~Ended ~~C Series 1 units for ELSM~~September 30, ~~EDM~~2013 and GTTM. The returns include administration fees. No management fee or incentive allocation was charged by the managing member of the Investment Funds with respect to the Company’s investment in any of the Investment Funds. Past performance is not indicative of future results, which may vary.

~~For~~ELSM ~~the~~Advisors ~~three~~generated ~~and~~positive ~~six~~performance ~~months~~in ~~ended~~the ~~June 30,~~third ~~2012,~~quarter ~~the~~with ~~Company’s~~gains ~~Class A Series 1 units~~in ~~returned~~July ~~(1.43)%~~ and ~~1.89%,~~September ~~respectively~~offsetting ~~net~~losses ofin ~~fees and incentive allocation~~August.

3229

TheTable Investeesof Contents

~~The~~In ~~material~~July, ~~Investees’~~ELSM Advisors generated positive performance ~~during~~in aggregate. Top performing ELSM Advisors benefited from idiosyncratic stock gains and long exposure to more cyclical sectors such as industrials, consumer discretionary, and financials, as well as U.S. healthcare. Underperforming ELSM Advisors lagged from exposure to emerging markets as well as from greater long exposure to more defensive sectors such as consumer staples and telecommunications. In August, ELSM Advisors generated negative performance overall, although there was fairly high dispersion across strategies. U.S.-focused ELSM Advisors generally underperformed, in accordance with the ~~three~~general underperformance of U.S. equities. Top performing ELSM Advisors benefited from long exposure to more cyclical sectors such as energy and ~~six~~information ~~months~~technology, ~~ended~~as well ~~June 30~~as select emerging markets. ELSM Advisors with greater long exposure to more defensive sectors such as consumer staples and telecommunications, ~~2012~~as iswell ~~described~~as financials, and greater small cap exposure generally underperformed. In September, ELSM Advisors generated positive performance. Top performing ELSM Advisors benefited from higher net exposure, concentration in more beta-sensitive stocks, long exposure to more cyclical sectors such as industrials and consumer discretionary, and greater exposure to small cap stocks. ELSM Advisors with greater long exposure to more defensive sectors such as consumer staples and telecommunications in the ~~following~~U.S. lagged peers, while short exposure broadly detracted.

~~Equity~~For ~~Long/Short~~the ~~Managers~~Nine ~~LLC~~Months Ended September 30, 2013

AsELSM ofAdvisors ~~June 30,~~generated ~~2012,~~positive ~~ELSM~~performance ~~represented approximately~~in ~~45%~~the offirst ~~the~~nine ~~Company’s~~months ~~members’~~of ~~equity.~~2013 ~~ELSM~~as ~~returned~~gains ~~(1.38)%~~in ~~and~~the ~~4.34%,~~first ~~respectively,~~and ~~for~~third ~~Class C~~quarter ~~Series 1 units~~were ~~for~~not ~~the~~fully ~~three~~offset ~~and~~by ~~six~~losses ~~months~~in ~~ended~~the ~~June 30,~~second ~~2012~~quarter.

~~For~~While rising equity markets provided a tail wind for ELSM Advisors in the ~~Three~~first ~~Months~~quarter, ~~Ended~~idiosyncratic ~~June 30~~performance from stock picking was also strong and ELSM Advisors generated positive performance in every month. In January, ~~2012~~top performing ELSM Advisors benefited from idiosyncratic stock gains and long exposure to the financials, healthcare, energy and consumer sectors. Underperforming ELSM Advisors were generally more defensively positioned with lower overall net exposure, while short exposure broadly detracted across sectors given equity market strength. In February, top performing ELSM Advisors benefited from idiosyncratic stock gains and long exposure to the consumer staples, industrials, and healthcare sectors. Given weakness in emerging markets, underperforming ELSM Advisors suffered losses from those markets as well as from exposure to the energy and materials sectors. In March, top performing ELSM Advisors benefited from idiosyncratic stock gains and long exposure to more defensive sectors such as healthcare, consumer staples, and telecom. Given the continued weakness in emerging markets, ELSM Advisors again lagged from exposure to those markets. Short exposure broadly detracted across ELSM Advisors given the positive market conditions in March.

~~ELSM~~Performance ~~Advisors~~was ~~generated~~more ~~negative~~mixed ~~performance~~during in the second quarter of ~~2012~~the year with losses in April and June not offset by gains in May. In April, top performing ELSM Advisors benefited from idiosyncratic stock gains and long exposure to more defensive sectors such as ~~volatile~~telecom, ~~markets~~healthcare, and ~~macroeconomic~~consumer ~~concerns~~staples. ~~created~~ELSM aAdvisors ~~challenging~~with ~~environment~~greater ~~for~~net exposure to cyclical sectors and greater exposure to small market capitalization companies tended to underperform. In May, top performing ELSM Advisors benefited from idiosyncratic stock ~~picking~~gains, greater exposure to the U.S. and Europe, and long exposure to more cyclical sectors such as financials, industrials, and technology. Underperforming ELSM Advisors suffered losses from long exposure to emerging markets and more defensive sectors, while short exposure broadly detracted across sectors. In June, top performing ELSM Advisors benefited from long exposure to the U.S. and to more defensive sectors including telecommunications and consumer staples, in addition to consumer discretionary. Given the weakness in emerging markets and Europe, underperforming ELSM Advisors lagged from exposure to those markets. ELSM Advisors with greater long exposure to more cyclical sectors such as information technology, energy, and materials, also lagged peers.

In ~~April,~~the ~~ELSM~~third ~~Advisors generally realized flat performance~~quarter, ~~although~~losses ~~there~~in August ~~was~~were ~~some~~more ~~dispersion~~than ofoffset ~~performance.~~by ~~Alpha~~gains ~~generation during the month was strong~~ in ~~some~~July ~~cases~~and ~~with~~September. aIn ~~number~~July, of ELSM Advisors ~~generating~~generated ~~flat to~~ positive performance ~~despite~~in ~~losses across most developed equity markets~~aggregate. Top performing ELSM Advisors benefited from ~~long exposure to consumer discretionary and consumer staples, as well as from~~ idiosyncratic stock gains. ~~Underperforming~~and ~~ELSM Advisors realized losses from~~ long exposure to financials, information technology, and to a lesser extent, energy & materials. In May, ELSM Advisors generally realized losses, although many outperformed relative to global equity markets. Most ELSM Advisors performed relatively well through the first half of May, and while some managers realized more significant losses as the sell-off accelerated in the month’s third week, in the aggregate, managers still outperformed their level of net exposure, albeit with wide dispersion across the strategy. Given the significant directional move in markets, ELSM Advisors with higher net exposure struggled, while ELSM Advisors with lower net exposure realized more modest losses and a small number of ELSM Advisors produced positive performance. From a sector perspective, ELSM Advisors with long exposure concentrated in financials or cyclical sectors ~~underperformed,~~ while losses were more limited for ELSM Advisors with long exposure concentrated in defensive sectors. In June, ELSM Advisors realized a mix of positive and negative performance with low dispersion, as macroeconomic issues such as ~~political developments~~industrials, ~~policy~~consumer ~~announcements~~discretionary, and shifting investor sentiment created a risk-on/risk-off environment. Most ELSM Advisors entered the month with relatively low levels of net exposure. Following the sharp sell-off in equities at the beginning of the monthfinancials, ~~ELSM~~as ~~Advisors~~well ~~that~~as ~~further reduced risk in response missed the ensuing market rally. In response to economic stimulus and the~~ U.S. ~~Supreme Court’s ruling related to~~ healthcare. ~~legislation,~~Underperforming ELSM Advisors ~~with~~lagged ~~long positions~~from ~~focused~~exposure into ~~the~~emerging ~~financials~~markets ~~and~~as ~~health~~well ~~care~~as ~~sectors~~from ~~generally~~greater ~~outperformed,~~long ~~while ELSM Advisors with~~ exposure to ~~the~~more ~~technology~~defensive ~~and consumer~~ sectors ~~generally~~such ~~lagged.~~as ~~Short~~consumer ~~exposures~~staples ~~broadly detracted or were flat across sectors.~~ and

~~For the Six Months Ended June~~ 30, ~~2012~~

ELSMTable Advisors finished the first six months of 2012 with positive performance as gains generated during the first quarter were not fully offset by losses in May. Contents

telecommunications. In August, ELSM Advisors generated ~~broadly~~negative ~~positive~~ performance ~~throughout~~overall, although there was fairly high dispersion across strategies. U.S.-focused ELSM Advisors generally underperformed, in accordance with the ~~first~~general ~~quarter~~underperformance of ~~2012~~U.S. Inequities. ~~January,~~Top performing ELSM Advisors’ ~~performance~~ benefited from anlong ~~aggressive~~exposure ~~broad~~to ~~sector~~more ~~rotation~~cyclical ~~effect~~sectors ~~that~~such ~~caused~~as ~~the~~energy ~~weakest~~and ~~sectors~~information oftechnology, ~~2011~~as well as select emerging markets. ELSM Advisors with greater long exposure to ~~rally~~more ~~significantly~~defensive ~~and~~sectors ~~outperform~~such ~~the~~as ~~markets~~consumer ~~during~~staples ~~the~~and ~~month~~telecommunications, ~~including~~as well as financials, ~~materials,~~and ~~industrials,~~greater ~~consumer~~small ~~discretionary~~cap ~~and technology~~exposure generally underperformed. In ~~February~~September, ~~most~~ ELSM Advisors ~~finished~~generated in positive performance. ~~territory~~Top asperforming ~~well.~~ELSM InAdvisors ~~general,~~benefited ~~many~~from ofhigher ~~the~~net ~~same~~exposure, ~~trends~~concentration ~~that~~in ~~had~~more ~~characterized~~beta-sensitive ~~January~~stocks, ~~continued~~long ~~into~~exposure ~~February.~~to ~~Cyclical~~more cyclical sectors, such as ~~technology,~~industrials ~~financials,~~and consumer discretionary , and ~~energy~~greater ~~continued~~exposure to ~~lead~~small ~~the rally during the month~~cap stocks. ~~In March,~~ ELSM Advisors ~~generally~~with ~~realized~~greater ~~modest~~long ~~positive~~exposure ~~performance,~~to ~~producing~~more ~~returns~~defensive ~~that~~sectors ~~were~~such ~~generally~~as inconsumer ~~line~~staples ~~with~~and ~~that~~telecommunications ofin ~~global~~the ~~equity~~U.S. ~~markets~~lagged ~~in aggregate~~peers, ~~although~~while ~~there~~short ~~was~~exposure ~~some dispersion~~broadly ~~of performance across the sector~~detracted.

33Event Driven Managers LLC

~~Performance~~As ~~turned~~of ~~negative~~September 30, ~~over the second quarter~~2013, ~~primarily~~EDM ~~driven by losses in May. In~~represented ~~April,~~approximately ~~ELSM~~28% ~~Advisors~~of ~~generally realized flat performance. Alpha generation during~~ the ~~month~~Company’s ~~was~~members’ ~~strong in some cases with a number of ELSM Advisors generating flat to positive performance despite losses across most developed~~ equity ~~markets~~. ~~Top performing~~EDM ~~ELSM~~returned ~~Advisors~~1.78% ~~benefited from long exposure to consumer discretionary~~ and ~~consumer staples~~8. ~~Underperforming ELSM Advisors realized losses from long exposure to financials~~90%, ~~information technology~~respectively, ~~and,~~for toClass C ~~a lesser extent, energy~~Series ~~& materials.~~1 units Infor ~~May, ELSM Advisors generally realized losses, although many outperformed relative to global equity markets. Given~~ the ~~significant~~three ~~directional move in markets, ELSM Advisors with higher net exposure struggled, while ELSM Advisors with lower net exposure realized more modest losses~~ and anine ~~small~~months ~~number~~ended ~~of ELSM Advisors produced positive performance. Performance turned largely flat again in June as macroeconomic issues such as political developments~~September 30, ~~policy announcements, and shifting investor sentiment created a risk-on/risk-off environment~~2013. Most ELSM Advisors entered the month with relatively low levels of net exposure. In response to economic stimulus and notable healthcare legislation, ELSM Advisors with long positions focused in the financials and health care sectors generally outperformed, while ELSM Advisors with exposure to the technology and consumer sectors generally lagged.

~~Event~~For ~~Driven~~the ~~Managers~~Three ~~LLC~~Months Ended September 30, 2013

AsEDM ofAdvisors ~~June 30,~~generated ~~2012,~~positive ~~EDM~~performance ~~represented approximately~~in ~~27% of~~ the ~~Company’s~~third ~~members’~~quarter ~~equity.~~of ~~EDM~~2013 ~~returned~~as ~~(0.26)%~~losses ~~and~~in ~~3.90%,~~August ~~respectively,~~did ~~for~~not ~~Class C~~offset ~~Series 1 units~~gains ~~for~~in ~~the~~July ~~three~~ and ~~six months ended June 30, 2012~~September.

~~For~~Most sub-strategies applied by EDM Advisors (e.g. special situations equities, merger arbitrage, various distressed situations, and structured credit) generated positive performance during July and September, but suffered in August. Across strategies, EDM Advisors with greater net long exposures and/or portfolios with higher degrees of underlying risk generally performed best given the ~~Three~~positive ~~Months~~trend, ~~Ended~~although ~~June 30~~these EDM Advisors tended to perform worse in August as risk assets declined broadly. As expected, ~~2012~~EDM Advisors with more balanced and/or net short exposures experienced more muted performance during the quarter. Event driven equities generally performed well during the third quarter of 2013, with a strong market backdrop in July and September. Common portfolio holdings within the stressed and distressed credit space, as well as liquidations, contributed positively to performance during the quarter. Merger arbitrage was also positive for the quarter, although it continues to be a small exposure in EDM Advisors’ portfolios and thus is not a significant contributor to performance. Corporate credit was also a contributor for EDM Advisors during the quarter as credit spreads across investment grade and high yield compressed. Structured credit exposures were a contributor for the quarter with price appreciation seen across most portfolios invested in RMBS, CMBS, and structured corporate credit. Portfolio hedges detracted over the quarter given the broad appreciation across most risk assets.

~~EDM~~For ~~Advisors generally generated mixed performance during~~ the ~~second~~Nine ~~quarter~~Months ofEnded ~~2012~~September 30, as2013 ~~market volatility rose sharply following a benign first quarter.~~

~~In April,~~ EDM Advisors ~~collectively~~generated positive ~~realized muted~~ performance. ~~Corporate credit exposure generally contributed positive returns, particularly~~ in ~~financial liquidation positions, while structured credit generally retraced some gains from~~ the ~~previous~~first nine months. ~~Performance~~of ~~for~~2013 ~~special~~as ~~situations~~performance ~~equity and merger arbitrage positions~~ was ~~mixed following~~ positive ~~performance~~in ~~during the~~every ~~first~~month ~~quarter~~except offor ~~2012.~~June ~~Attribution~~and ~~from hedges was somewhat flat, although short European sovereign exposure was generally beneficial to performance~~August. ~~During~~The ~~May,~~drivers ~~EDM Advisors collectively realized negative performance as concerns around the macro environment returned. Equity exposure was broadly a source~~ of ~~negative~~ performance, ~~with losses from special situations equity, although there~~ were alargely ~~few~~consistent ~~merger~~throughout ~~arbitrage positions which contributed positively over~~ the ~~month. Corporate credit markets were relatively resilient through early May~~year, ~~but~~with ~~sold~~the ~~off~~majority ~~sharply~~of ~~into month~~sub-~~end~~strategies asemployed ~~risk~~by ~~sentiment deteriorated on an increase in negative economic news. Structured credit also detracted from performance. Offsetting some losses,~~ EDM ~~Advisors~~ ~~generally benefited from portfolio hedges in May. Market declines during May continued into early June, but eventually reversed course before month-end. Consequently, EDM~~ Advisors ~~collectively~~generating ~~generated~~positive ~~muted~~ performance ~~during~~through ~~June.~~May ~~Equity~~as ~~exposure was~~well ~~a source of mixed returns~~ as ~~equity special situations generally contributed positively during the second half of the month alongside a slight improvement~~ in ~~risk~~July ~~sentiment~~and September, ~~although~~but ~~core~~suffering ~~merger arbitrage positions experienced mixed performance. Despite a weak start~~ in June, ~~leveraged credit markets performed well during the month with high-yield bonds~~ and ~~loans each posting strong positive returns~~August. Similarly, structured credit valuations rebounded as the overall market sentiment for risk assets improved and as capital continued to flow into the structured credit opportunity. Performance of hedges and macro-oriented positions was mixed during June, but largely detracted from performance.

~~For~~Event driven equities generally performed well, with a strong market backdrop for much of the ~~Six~~first ~~Months~~half ~~Ended~~of ~~June 30~~the year and outperformance from some common holdings. Merger arbitrage performance was also generally positive, ~~2012~~although it represented somewhat limited exposure for many EDM Advisors. Fixed income performed well, supported by low Treasury yields and positive equity market performance for most of the first half of the year. While the upside in credit has been somewhat capped by already rich valuations, credit continued to rally throughout much of the period with yields on performing credit hovering near record lows by the end of the second quarter. Additionally, a number of commonly held stressed, distressed and liquidation investments

~~EDM~~31 ~~Advisors generally produced positive returns during the first half of 2012, as positive performance over the first quarter outweighed negative performance in the second quarter.~~

InTable Januaryof and February, EDM Advisors generally benefited from “risk on” sentiment, with long positions in both equities and credit contributing to performance. While positioning was still relatively balanced in January Contents

34 contributed positive performance for many EDM Advisors. Structured credit exposure was also a notable contributor, with price appreciation across RMBS, CMBS and structured corporate credit. Portfolio hedges served as detractors through May given the broad appreciation across most risk assets and the continuation of muted and downward trending volatility. However, hedges were one of the few areas that generated positive performance across portfolios during June.

~~after~~Performance of EDM Advisors was also positive during the ~~2011~~third ~~volatility~~quarter. ~~and~~Most sub-strategies applied by EDM Advisors ~~did~~(e.g. ~~not~~special ~~fully~~situations ~~participate~~equities, inmerger ~~the~~arbitrage, ~~rally~~various distressed situations, ~~positioning~~and ~~was~~structured ~~more~~credit) ~~bullish~~generated inpositive ~~February~~performance during July and September, ~~resulting~~but suffered in ~~more~~August. ~~positive~~Across ~~performance.~~strategies, ~~Positive~~EDM ~~sentiment~~Advisors ~~from~~with ~~January~~greater net long exposures and/or ~~February~~portfolios ~~largely~~with ~~carried~~higher ~~through~~degrees of underlying risk generally performed best given the ~~month~~positive oftrend, ~~March~~although these EDM Advisors tended to perform worse in August as ~~well~~risk assets declined broadly. As expected, ~~albeit~~EDM Advisors with ~~some~~more ~~reversals~~balanced ~~throughout~~and/or net short exposures experienced more muted performance during the ~~month~~quarter. ~~Equity~~Event ~~exposure~~driven equities generally performed well during the third quarter of 2013, ~~including~~with ~~special~~a ~~situations~~strong ~~equity~~market backdrop in July and ~~merger~~September. Common ~~arbitrage~~portfolio ~~positions~~holdings within the stressed and distressed credit space, ~~generally~~as well as liquidations, contributed to portfolios during the quarter. Merger arbitrage was also positive ~~returns~~for the quarter, although it continues to be a small exposure in EDM ~~March.~~Advisors’ ~~Credit~~portfolios and thus is not a significant contributor to performance. Corporate credit was ~~more~~also ~~muted,~~a ~~due~~contributor ~~partly~~for toEDM ~~rising~~Advisors ~~rates~~during asthe ~~well~~quarter as ~~widening~~ credit spreads inacross ~~some~~investment ~~instances~~grade and high yield compressed. ~~Through~~Structured ~~most~~credit exposures ofwere ~~the~~a ~~first~~contributor for the quarter ofwith ~~2012~~price appreciation seen across most portfolios invested in RMBS, ~~hedges~~CMBS, and ~~short~~structured ~~exposure~~corporate ~~typically~~credit. Portfolio hedges detracted ~~from~~in ~~performance~~the asthird ~~prices~~quarter of ~~risk~~2013 given the broad appreciation across ~~assets~~most ~~generally~~risk ~~rose~~assets.

~~Performance~~Global ~~was~~Tactical ~~more~~Trading ~~mixed~~Managers ~~during~~LLC the second quarter of 2012 as market volatility started to pick up again. Performance was generally muted in April and June. Corporate credit positions generally contributed positively while structured credit positions detracted in April but were more positive in June. Equity special situations and merger arbitrage performance was mixed during both months. However, this muted performance was offset by losses in May when EDM Advisors collectively realized negative performance as concerns around the macro environment returned. Equity exposure was broadly a source of negative performance, with losses from special situations equity, although there were a few positive idiosyncratic drivers from merger arbitrage investments. Corporate credit markets were relatively resilient through early May, but sold off sharply into month-end as risk sentiment deteriorated on an increase in negative economic news. Structured credit also detracted from performance. EDM Advisors generally benefited from portfolio hedges in May, which offset some losses.

~~Global~~As ~~Tactical~~of ~~Trading~~September 30, ~~Managers~~2013, ~~LLC~~GTTM represented approximately 32% of the Company’s members’ equity. GTTM returned (1.64)% and 1.56%, respectively, for Class C Series 1 units for the three and nine months ended September 30, 2013.

AsFor ~~of June 30, 2012, GTTM represented approximately 35% of~~ the ~~Company’s~~Three ~~members’~~Months ~~equity.~~Ended ~~GTTM returned (1.39)% and 0.78%, respectively, for Class~~September ~~C Series 1 units for the three and six months ended June~~ 30, ~~2012.~~2013

~~For~~GTTM ~~the~~Advisors ~~Three~~realized ~~Months~~negative ~~Ended~~performance ~~June 30~~in the third quarter, ~~2012~~as losses in both July and August were not fully offset by gains in September.

~~Tactical~~In ~~trading~~July, ~~strategies~~GTTM ~~generated~~Advisors experienced losses in aggregate. For both Macro and Managed futures GTTM Advisors, long U.S. dollar positions were the largest detractor whereas long positions in equity indices generally contributed positively. In fixed income, long positions in European rates contributed positively for some Macro GTTM Advisors, while early gains on short positions in the U.S. were reversed later in the month. Commodity trading was negative ~~performance~~overall, with losses on short positions in precious metals. In August, Macro and Managed Futures GTTM Advisors experienced losses driven by foreign exchange and equities positions. In foreign exchange, long positions in the ~~second~~U.S. ~~quarter~~dollar detracted in the early part of ~~2012~~the month, with some managers reducing risk and missing most of the subsequent recovery. ~~Both~~In ~~macro~~equities, long positive in indices detracted. Short positions in U.S. fixed income were generally profitable for Macro GTTM Advisors and ~~managed~~short- and medium-term Managed futures GTTM Advisors. Commodity trading was mixed for Macro GTTM Advisors Managed futures GTTM Advisors as long positions in crude oil were profitable, but were in some cases offset by losses on short positions in grains and metals. In September, GTTM Advisors ~~exhibited~~experienced ~~fairly~~in ~~high~~aggregate realized positive performance. Macro GTTM Advisors’ performance in September was positive in aggregate but with large dispersion ~~throughout~~across managers. Exposure to equity indices was the ~~quarter~~largest contributor as positions in Japan and the U.S. experienced strong gains. Fixed income trading was more mixed and currency trading detracted from performance as long U.S. dollar positioning suffered in the month. Macro GTTM Advisors’ directional exposure to commodities remained low, ~~but~~translating ~~overall~~to ~~generated~~a ~~negative~~muted impact on returns. Managed futures GTTM Advisors realized negative performance in ~~the~~September. ~~aggregate~~Gains were experienced from long positions across developed market equity indices, while losses were realized from long commodities positioning. Trading in fixed income and currencies was more mixed.

In32 both April and May, managed futures GTTM Advisors experienced strong gains while macro GTTM Advisors experienced broadly flat performance. Managed futures GTTM Advisors benefitted from long positions in fixed income, most notably in Europe and the United States, as yields decreased. Fixed income positioning was more mixed for macro GTTM Advisors, which resulted in a larger dispersion of returns. Performance was mixed in currency trading as macro GTTM Advisors had mixed positioning in both the U.S. dollar and the Euro, leading only some macro GTTM Advisors to profit from the general depreciation of both currencies in April and the Euro in May. Both macro and managed futures GTTM Advisors experienced losses in equity trading, as GTTM Advisors tended to be long in both developed and emerging market indices, both of which suffered as concerns over global economic growth worsened in the quarter. Both macro and managed futures GTTM Advisors had mixed positioning in commodities throughout the quarter, which led to dispersed returns across the asset class. In June, GTTM Advisors experienced losses across asset classes as many GTTM Advisors maintained a more bearish view on global growth, which hurt performance. Managed futures GTTM Advisors were the primary driver of losses for the sector, while macro GTTM Advisors experienced more moderate losses. Fixed income trading was a significant detractor in June as long positions suffered as price action reversed from the prior month with yields increasing month-on-month. Conversely, some select macro GTTM Advisors profited from short fixed income positioning. Equities trading was a detractor for both macro and managed futures GTTM Advisors in June, as most GTTM Advisors were bearishly positioned throughout the quarter, which led to losses in June. Trading in currencies also detracted as many GTTM Advisors had long positions in the U.S. dollar, which depreciated against most currencies in June. Some macro GTTM Advisors partially offset these losses with long emerging market currency positions, which realized positive performance in June. Trading in commodities led to mixed performance in June due to limited consensus in positioning.

35Table of Contents

For the ~~Six~~Nine Months Ended ~~June~~September 30, ~~2012~~2013

~~Tactical~~GTTM ~~trading~~Advisors ~~strategies~~ generated positive performance in the first ~~six~~nine months of ~~2012~~2013 as ~~both macro and managed futures GTTM Advisors overall generated~~ gains in the first ~~quarter~~ and ~~negative~~second ~~performance~~quarter inexceeded losses in the ~~second~~third quarter.

InFor ~~both~~Macro ~~January and February, macro~~ GTTM Advisors, ~~and~~equity ~~managed futures GTTM Advisors experienced gains as healthy economic data~~ and anforeign ~~improving~~exchange ~~investor~~positions ~~risk~~were ~~sentiment~~the ~~benefited~~primary ~~tactical~~driver ~~trading~~of ~~strategies.~~positive performance ~~Macro~~in ~~GTTM~~January ~~Advisors~~ and ~~managed~~March, ~~futures~~while ~~GTTM~~trading ~~Advisors broadly benefited from gains~~ in ~~long-biased~~ commodities ~~trading~~ and ~~performance~~fixed income was more mixed in ~~currency~~these ~~trading~~months. ~~Macro~~In ~~GTTM~~February, ~~Advisors~~positive performance was generally ~~profited~~driven ~~from~~by ~~trading~~long positions in fixed income, U.S. equities and ~~had~~credit. ~~mixed~~While performance in foreign ~~equities~~exchange was mixed, ~~while~~depending ~~managed~~on ~~futures~~U.S. ~~GTTM~~dollar ~~Advisors~~positions, ~~inversely experienced~~long ~~gains~~commodity inexposure ~~long~~generally ~~developed~~contributed ~~and~~losses. ~~emerging~~Managed ~~market~~Futures ~~equity~~GTTM ~~positioning~~Advisors ~~and~~also ~~realized~~generated ~~mixed~~positive performance in ~~fixed~~January ~~income.~~and March ~~was~~with ~~characterized~~largely bysimilar ~~mixed economic data, which cast uncertainty over recently improved investor risk sentiment~~attribution. InEquity and ~~aggregate,~~foreign ~~tactical~~exchange ~~trading~~positions ~~strategies~~contributed ~~experienced~~positively ~~negative~~while ~~performance.~~especially ~~Managed~~in ~~futures~~January ~~GTTM~~fixed ~~Advisors~~income positions were ~~the~~a ~~primary~~notable ~~driver~~detractor ofand ~~losses~~commodities ~~for~~trading ~~the~~was ~~sector,~~largely ~~while~~mixed ~~macro~~in ~~GTTM~~both ~~Advisors~~months. ~~realized~~Performance ~~modest~~was ~~losses~~more mixed in ~~aggregate~~February ~~with~~when ~~fairly high dispersion. Trading in~~ fixed income ~~generally~~was ~~contributed~~the most ~~positively~~notable ~~for~~contributor ~~macro~~to ~~GTTM~~performance, ~~Advisors~~as ~~while~~long ~~trading~~positioning inacross ~~currencies~~the ~~and~~curve ~~commodities~~benefited ~~generally~~as ~~detracted.~~yields ~~Losses~~decreased ~~for~~in ~~managed~~the ~~futures~~second ~~GTTM~~half ~~Advisors~~of ~~occurred~~the ~~primarily~~month. Trading in ~~fixed~~equities ~~income,~~also contributed positively as long positions ~~suffered,~~ ~~most~~generated ~~notably~~gains indespite ~~U.K.~~giving ~~and~~back ~~U.S.~~some performance ~~government~~near ~~bonds~~month-end. ~~Managed~~Commodities ~~futures~~trading ~~GTTM~~was ~~Advisors~~a ~~also~~significant ~~had~~detractor ~~limited~~as ~~success~~long ~~trading~~energies inpositions ~~both~~suffered, ~~currencies~~while ~~and~~trading ~~commodities,~~in ~~both~~foreign ofexchange ~~which~~also detracted ~~in March~~.

InMacro ~~both~~GTTM ~~April~~Advisors ~~and~~also ~~May,~~generated ~~managed~~positive ~~futures~~performance ~~GTTM~~during ~~Advisors~~the ~~experienced~~second ~~strong~~quarter. ~~gains~~In ~~while~~April, ~~macro~~positive ~~GTTM~~performance ~~Advisors~~was ~~experienced~~primarily ~~broadly~~driven ~~flat performance.~~by ~~Managed~~foreign ~~futures~~exchange ~~GTTM~~trading ~~Advisors~~while ~~benefitted~~fixed ~~from~~income ~~long~~trading was more mixed. Currency positions continued to contribute positively in ~~fixed~~May ~~income~~and ~~but~~performance ascontribution from fixed income ~~positioning~~turned ~~was~~largely ~~more~~positive, ~~mixed~~driven ~~for~~by ~~macro~~short ~~GTTM~~positions. ~~Advisors,~~Long ~~there~~equity ~~was~~positions ~~greater~~still ~~dispersion~~contributed ofpositively ~~returns~~in ~~for~~April ~~macro~~but ~~GTTM~~were ~~Advisors~~more mixed in May. ~~Performance~~There was ~~mixed in~~notable ~~currency~~performance ~~trading~~dispersion ~~and~~across ~~both~~Macro ~~macro~~GTTM ~~and~~Advisors ~~managed~~in ~~futures~~June, ~~GTTM~~as ~~Advisors~~many markets experienced ~~losses~~notable inreversals. ~~equity~~Attribution ~~trading.~~from ~~Both~~currencies ~~macro~~was ~~and~~varied ~~managed~~but ~~futures~~likely ~~GTTM~~negative ~~Advisors~~in ~~had~~aggregate, ~~mixed~~as ~~positioning~~a pullback in ~~commodities~~the ~~throughout~~trend ~~the~~of ~~quarter,~~a ~~which~~stronger ~~led~~U.S. dollar toresulted ~~dispersed~~in ~~returns across~~losses ~~the~~for ~~asset~~many ~~class~~Advisors. InTrading ~~June~~in fixed income was mixed, ~~GTTM~~while ~~Advisors~~long ~~experienced~~positions ~~losses~~in ~~across~~U.S. ~~asset~~and ~~classes~~Japanese asequities ~~many~~resulted ~~GTTM~~in ~~Advisors~~modest ~~maintained~~losses aand ~~more~~short ~~bearish~~positions ~~view~~in ongold ~~global~~or ~~growth,~~other ~~which~~precious ~~hurt~~metals ~~performance.~~were ~~Managed~~profitable ~~futures~~for ~~GTTM~~some Advisors. Managed ~~were~~Futures ~~the~~GTTM ~~primary~~Advisors ~~driver~~in ofaggregate contributed losses ~~for~~ over the ~~sector,~~quarter ~~while~~as ~~macro~~gains ~~GTTM~~in ~~Advisors~~April ~~experienced~~were more ~~moderate~~than ~~losses.~~offset ~~Fixed~~by ~~income~~losses ~~trading~~in ~~was~~May aand ~~significant~~June. ~~detractor~~Gains in ~~June~~April aswere largely driven by long positions ~~suffered~~in asglobal ~~price~~equities ~~action~~and ~~reversed~~long ~~from~~positions ~~the~~in ~~prior~~fixed income, ~~month.~~while ~~Conversely~~commodities ~~some~~trading ~~select~~was ~~macro~~more ~~GTTM~~negative. ~~Advisors profited~~In ~~from~~May, ~~short~~the ~~fixed~~main ~~income~~detractor ~~positioning.~~were ~~Equities~~long ~~trading~~positions ~~was~~in afixed ~~detractor~~income ~~for~~that ~~both~~were ~~macro~~negatively ~~and~~impacted ~~managed~~in ~~futures~~the ~~GTTM~~rising ~~Advisors~~yield ~~in June~~environment. Trading in currencies also ~~detracted~~contributed aslosses ~~GTTM~~while ~~Advisors~~commodities ~~had~~were more ~~uniform~~mixed ~~long~~and ~~positioning~~equities ingenerally ~~the~~contributed Upositively.S. ~~dollar~~May’s ~~which depreciated~~trend ~~against~~reversed ~~most currencies~~ in June., ~~Some~~when ~~macro~~equity trading was the main detractor for Managed Futures GTTM Advisors. ~~partially~~Foreign ~~offset~~exchange ~~these~~and ~~losses~~fixed ~~with~~income ~~long~~performance ~~emerging~~was ~~market~~more ~~currency~~mixed ~~positions.~~but ~~Trading~~detracted infor a ~~commodities~~number ~~led~~of tomanagers ~~mixed~~while ~~performance~~short positions in ~~June~~precious ~~due~~metals toand ~~limited~~long ~~consensus~~positions in ~~positioning~~crude oil helped offset some of the losses.

~~Comparison~~In ofJuly, ~~Selected~~GTTM ~~Financial~~Advisors ~~Information~~experienced losses in aggregate. For both Macro and Managed futures GTTM Advisors, long U.S. dollar positions were the largest detractor whereas long positions in equity indices generally contributed positively. In fixed income, long positions in European rates contributed positively for some Macro GTTM Advisors, while early gains on short positions in the ~~Three~~U.S. were reversed later in the month. Commodity trading was negative overall, with losses on short positions in precious metals. In August, Macro and ~~Six~~Managed ~~Months~~Futures ~~ended~~GTTM ~~June 30~~Advisors experienced losses driven by foreign exchange and equities positions. In foreign exchange, ~~2013~~long positions in the U.S. dollar detracted in the early part of the month, with some managers reducing risk and ~~June 30~~missing most of the subsequent recovery. In equities, ~~2012~~long positions in indices detracted. Short positions in U.S. fixed income were generally profitable for Macro GTTM Advisors and short- and medium-term Managed futures GTTM Advisors. Commodity trading was mixed for Macro GTTM Advisors Managed futures GTTM Advisors as long positions in crude oil were profitable, but were in some cases offset by losses on short positions in grains and metals. In September, GTTM Advisors experienced in aggregate realized positive performance. Macro GTTM Advisors’ performance in September was positive in aggregate but with large dispersion across managers. Exposure to equity indices was the largest contributor as positions in Japan and the U.S. experienced strong gains. Fixed income trading was more mixed and currency trading detracted from performance as long U.S. dollar positioning suffered in the month. Macro GTTM Advisors’ directional exposure to commodities

~~Dividend~~33 ~~Income~~

Dividend incomeTable for the three and six months ended June 30, 2013 was $351 and $1,301, respectively, compared to dividend income for the three and six months ended June 30, 2012 of $3,192 and $5,600, respectively. The Company’s dividend income fluctuates with the level of cash available to invest. Contents

~~Expenses~~ remained low, translating to a muted impact on returns. Managed futures GTTM Advisors realized negative performance in September. Gains were experienced from long positions across developed market equity indices, while losses were realized from long commodities positioning. Trading in fixed income and currencies was more mixed.

~~The~~Performance ~~management fee~~ for the ~~three~~Three and ~~six~~Nine ~~months~~Months ~~ended~~Ended ~~June~~September 30, ~~2013 was $1,128,720 and $2,324,923, respectively, compared to the management fee for the three and six months ended June 30,~~ 2012 of $1,625,405 and $3,312,655, respectively. Because the management fee is calculated as a percentage of the Company’s net assets as of each month end (equal to one-twelfth of 1.25% of the net assets of the Company of the applicable month), the changes in the expense were due to fluctuations in the Company’s net assets for the period ended June 30, 2013 compared to the same period in 2012.

36The Company’s net realized and unrealized gain/(loss) for the three and nine months ended September 30, 2012 was $9,060,888 and $23,410,175, respectively, compared to the Company’s net realized and unrealized gain/(loss) for the three and nine months ended September 30, 2011 of $(20,007,989) and $(18,758,273), respectively.

~~Professional~~Overview fees for the three and six months ended June 30, 2013 were $245,836 and $544,088, respectively, compared to professional fees for the three and six months ended June 30, 2012 of $326,497 and $638,847, respectively. The decrease in professional fees for the period ended June 30, 2013 was primarily due to decreased costs related to reduced agreed-upon procedures for regulatory filing requirements for Extensible Business Reporting Language (“XBRL”).

~~The~~After ~~Company~~a ~~incurs~~challenging asecond ~~monthly~~quarter, ~~administration~~markets ~~fee~~recovered ~~payable~~notably over tothe ~~SEI~~summer ~~equal~~months. toVolatility ~~one-twelfth~~declined ofacross ~~0.02%~~the majority of asset classes and most risk assets ended the ~~net~~quarter higher. Equities and other risk assets traded in a wide range in July but generally finished higher, with markets traveling a choppy path as downward pressure from persistent weakness in economic data was reversed on multiple occasions by encouraging rhetoric from policymakers. Policymakers on both sides of the ~~Company~~Atlantic reiterated their willingness to act in response to weak data, as Federal Reserve Bank Chairman Ben Bernanke listed an array of ~~each~~easing ~~month~~options ~~end.~~at ~~For~~his ~~the~~semiannual ~~three~~congressional testimony and ~~six~~ECB ~~months~~President ~~ended~~Mario ~~June 30,~~Draghi ~~2013,~~provided renewed support for risk assets with his comments that the ECB would do “whatever it takes” to save the ~~Company~~euro. ~~incurred~~Risk anassets ~~administration~~continued ~~fee~~to ofdrift ~~$24,935~~higher in August and ~~$50,950,~~continued ~~respectively~~supportive rhetoric from policymakers was accompanied by stronger economic data, ~~compared~~most tonotably in the ~~administration~~U.S. ~~fee~~payrolls ~~for~~report, to support markets. Despite the ~~three~~rally, ~~and~~longer-term ~~six~~uncertainty ~~months~~persisted ~~ended~~in ~~June 30~~August, ~~2012~~with a series of ~~$32~~data releases,~~882~~ ECB and ~~$66~~FOMC meetings,~~754,~~ ~~respectively.~~and ~~Through~~a ~~its~~German ~~investments~~court indecision regarding the ~~Investment Funds,~~constitutionality of the ~~Company~~European ~~continues~~Stability toMechanism ~~bear~~(“ESM”) alooming in ~~pro-rata~~the ~~portion~~first half of September. However, the ~~administration~~risk ~~fee~~rally ~~paid~~accelerated toin the ~~administrator~~first half of ~~the~~September ~~Investment~~as ~~Funds~~anticipation ~~for~~of ~~services~~a ~~provided~~more toforceful ~~the~~policy ~~Investment~~response ~~Funds.~~was ~~For~~confirmed by strong statements from the ~~three~~ECB and ~~six~~the ~~months~~Federal ~~ended~~Reserve ~~June 30,~~and ~~2013,~~ the German ~~Company’s~~constitutional ~~pro-rata~~court ~~indirect~~decision ~~share~~was in favor of the ~~administration~~ESM. ~~fee~~Risk ~~charged~~assets atfailed ~~the~~to ~~Investee~~follow ~~level~~through ~~totaled~~on ~~$42,391~~these ~~and~~moves ~~$87,263,~~in ~~respectively,~~the ~~compared~~second tohalf of the ~~Company’s~~month ~~pro-rata~~though ~~indirect~~as ~~share~~economic ofdata ~~the~~releases ~~administration~~became ~~fee~~more ~~charged~~mixed. atOther ~~the~~lingering ~~Investee~~concerns ~~level for~~also ~~the~~resurfaced ~~three~~with ~~and~~investors focusing ~~six~~on ~~months~~the ~~ended~~Chinese ~~June 30~~slowdown, ~~2012~~the ofU.S. ~~$61~~fiscal cliff,~~136~~ and ~~$123,073,~~ongoing ~~respectively~~political hurdles in Europe as potential risks. ~~SEI~~Despite issome ~~the~~moderation, ~~administrator~~most ofrisk ~~each~~assets ~~Investment~~nevertheless ~~Fund~~finished September in positive territory.

~~Miscellaneous~~Over ~~expenses~~the ~~for~~third quarter as a whole, global equity markets (proxied by the ~~three~~MSCI World Index) were up 6.7%, more than offsetting the losses from the second quarter. Performance was largely positive across regions and ~~six~~relatively ~~months~~similar ~~ended~~in ~~June 30~~the United States, ~~2013~~Europe and emerging markets. Two notable exceptions were ~~$24~~Japan (proxied by the TOPIX Index in JPY) and China (proxied by the Shanghai SE Composite Index),~~121~~ which were down (4.2%) and ~~$75~~(6.3%) over the quarter,~~884,~~ respectively. Performance was also positive across commodities with the S&P GSCI Total Return Index gaining 11.5% over the quarter. Among the strongest commodities sectors were agriculturals and precious metals. In agriculturals, ~~compared~~prices increased primarily due to ~~miscellaneous~~an ~~expenses~~expected negative weather-related supply impact, for example reflected in the ~~three~~price of the front month futures contract for wheat increasing by more than 20%. Precious metals prices continued to trend higher as many large central banks continued their unorthodox monetary easing programs. The general positive sentiment for risk assets was also reflected in currency markets as the U.S. dollar sold off against the majority of developed and ~~six~~emerging ~~months~~markets, ~~ended~~with ~~June~~ the Brazilian real, Indian rupee and Chinese renminbi being notable exceptions. In fixed income, yields in major developed markets continued to decline and yield curves broadly steepened as long term rates declined less notably, or even increased. For example, 2 year yields in the Eurozone declined by 10 bps, whereas 30 year yields only fell by 7 bps. In the United, States, short term yields also declined ~~2012~~whereas of30 ~~$62~~year yields actually increased by 7 bps over the quarter. In addition,~~636~~ after fixed income rallied primarily in July and ~~$115~~August,~~540~~ part of the decline in yields was reversed in September. Performance in credit was positive over the month as the asset class benefitted from both declining yields as well as tighter credit spreads. For example, ~~respectively~~the spread on the Credit Suisse High Yield Index compressed by 68 bps over the quarter, resulting in a positive total return of 4.3%.

~~Incentive~~34 ~~Allocation~~

TheTable Incentive Allocation for the three and six months ended June 30, 2013 was $25,971 and $618,578, respectively, compared to the three and six months ended June 30, 2012 of $(7,464) and $7,119, respectively. Because the incentive allocation is calculated as a percentage of any new net appreciation in the net asset value attributable to each series, the changes in the incentive allocation were due to fluctuations in net income from operations for the period resulting in certain series of Class A Shares moving above or below their high watermark. Contents

~~Other~~The ~~than~~Company cannot predict which Investment Sector and accordingly which Investee will perform best in the ~~management~~future. ~~fee,~~The ~~professional~~table ~~fees,~~below ~~administration~~illustrates ~~fees,~~the ~~miscellaneous~~portfolio ~~expenses~~weighting ~~and~~of ~~incentive~~each ~~allocation~~material Investee as of September 30, ~~there~~2012, ~~are~~as ~~no other~~well ~~fees~~as ~~directly~~each ~~borne~~material byInvestee’s net return for the ~~Company.~~three and nine months ended September 30, 2012.

Liquidity and Capital Resources


Investee	Portfolio Weight as a % of Members’ Equity⁽¹⁾			Three Months Ended September 30, 2012 Net Return⁽²⁾			Nine Months Ended September 30, 2012 Net Return⁽²⁾
ELSM		43.50	%		2.23	%		6.67	%
EDM		26.73	%		1.97	%		5.94	%
GTTM		34.06	%		2.42	%		3.23	%

~~The~~(1) ~~Company~~Members’s ~~liquidity requirements consist of cash needed to fund investments in the Investment Funds in accordance with the Company’s investment strategy~~equity, toused ~~fund quarterly redemptions and to pay costs and expenses. The Company periodically re-allocates its investments~~ in the ~~Investment~~calculation ~~Funds~~of ~~based on~~ the ~~performance~~fair value of the ~~Investment~~Investees ~~Funds~~as ~~and other factors. Redemptions are permitted on~~ a ~~quarterly~~percentage ~~basis and written notices~~ of ~~redemption~~members’ ~~must be delivered to the Company at least 91 days prior to the applicable valuation date~~equity, ~~which~~ is ~~the~~reduced ~~day~~for ~~immediately~~member ~~preceding the applicable redemption date. Accordingly, the Company cannot predict the level of~~ redemptions inthat ~~the~~are ~~Company~~paid ~~for~~after ~~any quarterly period until 91 days prior to~~ the ~~redemption~~balance sheet date. ~~The~~according ~~Company endeavors~~ to ~~pay~~ASC ~~redemption proceeds within 45 days following the redemption date~~480, ~~without~~“Distinguishing ~~interest.~~Liabilities Iffrom ~~the Company faces a liquidity problem, the redemptions may be limited or postponed under certain limited circumstances~~Equity.” ~~The Managing~~ Member’s ~~ability~~redemptions toare ~~limit~~included ~~or postpone redemptions~~ in ~~the Company enables the Company to control and to some extent avoid a liquidity problem. However, substantial~~ redemptions ofpayable ~~units~~ in the ~~Company~~Balance ~~could~~Sheet ~~require the Company to liquidate certain~~ of ~~its investments in~~ the ~~Investment~~financial ~~Funds in order to raise cash to fund the redemptions, which could have a material adverse effect on the NAV of the units and the performance of the Company~~statements.

~~The Company~~(2) ~~can~~These ~~fund~~returns ~~its~~are ~~liquidity~~based ~~requirements~~on bythe ~~liquidation~~performance ~~(through~~of ~~redemptions~~Class C Series 1 units for ELSM, EDM and GTTM. The returns include administration fees. No management fee or asincentive ~~otherwise~~allocation ~~permitted~~was incharged by the ~~LLC~~managing ~~Agreements~~member of the Investment Funds) ofwith ~~its~~respect ~~investments~~to in the ~~Investment~~Company’s ~~Funds~~investment ~~and~~in ~~from~~any ~~new~~of ~~investments~~the ~~from~~Investment ~~existing~~Funds. ~~and~~Past ~~new investors.~~performance ~~Neither~~is ~~EDMAT~~not ~~nor~~indicative ~~RVM~~of ~~provide~~future ~~investors~~results, ~~with~~which amay vary.

37For the three and nine months ended September 30, 2012, the Company’s Class A Series 1 units returned 1.63% and 3.55%, respectively, net of fees and incentive allocation.

voluntary redemption right. Redemptions can be made quarterly, subject to certain limitations. During certain historic periods, the Company only took in investments from existing investors and limited subscriptions from new qualified investors; however, the Company has been accepting additional amounts of new subscriptions throughout the second quarter of 2013. The ~~Company~~Investees may close again and stop accepting subscriptions at any time without notice at the sole discretion of the Managing Member. The acceptance of future subscriptions in the Company will be determined by the Managing Member in its sole discretion. Although the Managing Member has been receiving new subscriptions, any liquidity requirements in the near term may need to be funded through the redemption of existing investments in the Investment Funds to the extent new investments are not received in sufficient amounts to cover redemptions. If the Company seeks to redeem all or a portion of its investment positions in any of the Investment Funds, the Investment Fund, to the extent it does not have cash on hand to fund such redemption, will need to liquidate some of its investments. Substantial redemptions of membership units in an Investment Fund, including by the Company, could require the Investment Fund to liquidate certain of its investments more rapidly than otherwise desirable in order to raise cash to fund the redemptions and achieve a market position appropriately reflecting a smaller asset base. This could have a material adverse effect on the value of the membership units redeemed and the membership units that remain outstanding and on the performance of the Investment Fund. Under certain exceptional circumstances, such as force majeure, the managing member of an Investment Fund (currently, the Managing Member) may find it necessary (a) to postpone redemptions if it determines that the liquidation of investments in the Investment Fund to fund redemptions would adversely affect the NAV per membership unit of the Investment Fund or (b) to set up a reserve for undetermined or contingent liabilities and withhold a certain portion of redemption proceeds. In such circumstances, the Investment Fund would likely postpone any redemptions.

~~Certain~~The ~~investment~~material ~~positions~~Investees’ inperformance ~~which~~during the ~~Investment~~ ~~Funds~~three ~~have a direct or indirect interest are illiquid. The Advisors may invest in restricted or non-publicly traded securities, securities on foreign exchanges~~ and ~~futures.~~nine ~~These~~months ~~positions~~ended may be illiquid because certain exchanges limit fluctuations in certain securities and futures contract prices during a single day by regulations referred to as “daily price fluctuation limits” or “daily limits”. Under such daily limitsSeptember 30, ~~during~~2012 ais ~~single~~described trading day no trades may be executed at prices beyond the daily limits. Once the price of a particular security or futures contract has increased or decreased by an amount equal to the daily limit, positions in ~~that security or contract can neither be taken nor liquidated unless traders are willing to effect trades at or within~~ the ~~limit~~following.

InEquity ~~addition,~~Long/Short ~~certain~~Managers ofLLC the investments held by the Investment Funds are subject to various lock-up provisions. Additionally, the Advisors of the investments held by the Investment Funds may, at their discretion, transfer a portion of the Investment Funds’ investment into share classes where liquidity terms are directed by the Advisor in accordance with the respective investment’s private placement memorandum, commonly referred to as side pocket share classes (“side pockets”). These side pockets may have restricted liquidity and prohibit the Investment Funds from fully liquidating their investments without delay. The managing member of each Investment Fund attempts to determine each Advisor’s strategy on side pockets through its due diligence process prior to making an allocation to the investment managed by the Advisor. However, no assurance can be given on whether or not the Advisor will implement side pockets during the investment period. The Advisors of the investments held by the Investment Funds may also, at their discretion, suspend redemptions or implement other restrictions on liquidity which could impact the Investment Funds’ ability to meet redemptions submitted by the Company. As of June 30, 2013, approximately 2% of the Company’s investments in the Investees were considered illiquid due to restrictions implemented by the Advisors of the investments held by Investees, excluding contractual restrictions imposed by the Advisors at the time of purchase, such as lock-ups. In addition, as of June 30, 2013, approximately 3% of the Company’s members’ equity was considered illiquid due to restrictions implemented by the Investees. The sum of these amounts represents the total amount of the Company’s members’ equity which was considered illiquid as of June 30, 2013.

~~HFS,~~As ~~the managing member~~ of ~~EDM~~September 30, ~~created~~ ~~EDMAT~~2012, ~~for~~ELSM ~~the~~represented ~~benefit~~approximately 44% of ~~its investors, including~~ the Company’s members’ equity. ~~Goldman~~ELSM ~~Sachs~~returned ~~Trust Company,~~2.23% aand ~~Delaware~~6.67%, ~~Corporation~~respectively, isfor ~~the~~Class ~~trustee~~C ofSeries ~~EDMAT~~1 ~~(the~~units ~~“Trustee”).~~for ~~The Trustee appointed HFS as~~ the ~~“Special~~three ~~Assets~~and ~~Direction~~nine ~~Advisor”,~~months ~~responsible~~ended ~~for~~September 30, ~~among~~2012. ~~other things, disposition of~~

38For the Three Months Ended September 30, 2012

~~EDMAT~~ELSM ~~assets.~~Advisors Ongenerated ~~March 31,~~positive ~~2009,~~performance ~~EDM transferred to EDMAT its interest~~ in ~~certain illiquid investments, including illiquid investments made by Advisor Funds, as well as liquidating vehicles that~~ the ~~Advisors~~third ~~formed~~quarter as ~~liquidity~~rising ~~decreased~~equity ~~for~~markets ~~previously liquid investments, such as certain credit instruments. EDM transferred to EDMAT the economic risks~~ and ~~benefits~~improved ~~of its interests in the assets. In connection with such transfer, each~~ investor insentiment ~~EDM,~~provided ~~including~~a the Company, was issued its pro-rata share of EDMAT interests based on its ownership in EDM as of the transfer date. Distributions from EDMAT in respect of EDMAT interests will be made to holders of EDMAT interests,good ~~including~~environment ~~the~~for ~~Company,~~ELSM asAdvisors ~~amounts in respect of the assets transferred~~ to ~~EDMAT~~both ~~are~~benefit ~~received~~ from ~~the~~positive ~~Advisors. However, the actual timing of these distributions will be dependent on the Advisors’ ability to liquidate positions as~~ market ~~conditions~~ ~~allow,~~returns and itgenerate ~~could~~excess bereturns afrom ~~significant~~stock ~~period of time before such positions are realized or disposed of~~selection.

~~The~~In ~~Company received~~July, ~~subscriptions~~ELSM ~~from~~Advisors ~~new~~realized ~~and~~moderately ~~existing~~positive ~~investors~~performance ofwith $1low dispersion. ELSM Advisors with long net exposure in more defensive sectors such as telecom,~~000~~ consumer staples,~~000~~ and $1healthcare generally outperformed ELSM Advisors with greater net exposure to cyclical sectors,~~250~~ including consumer discretionary,~~000,~~ ~~respectively~~information technology, ~~during~~and materials. Stock selection also contributed to performance amid the ~~three~~dispersion resulting from the quarterly earnings season and ~~six~~ELSM ~~months~~Advisors ~~ended~~benefited ~~June 30,~~from ~~2013~~long positions focused in more stable companies with less economic sensitivity. ELSM Advisors with greater exposure to small market capitalization companies tended to underperform given the pronounced difference between small cap and large cap stock performance during the month. In August, ELSM Advisors generally generated positive performance although there was some dispersion of $1performance across the sector. Top performing ELSM Advisors benefited from long exposure to cyclical sectors,~~900~~ including information technology,~~000~~ ~~and~~consumer $6discretionary,~~241,936,~~ ~~respectively~~and financials, ~~during~~as ~~the~~well ~~three~~as ~~and~~from ~~six~~idiosyncratic ~~months~~stock ~~ended~~gains. ~~June 30~~Underperforming ELSM Advisors had greater exposure to more defensive sectors, ~~2012.~~including consumer staples and telecommunications, and realized losses from long exposure to

~~Demand~~35 from new and existing investors varies from period to period based upon market conditions, the Company’s returns and other alternative investments available to investors. The Company believes that in more recent periods investors’ interest has decreased from earlier periods as investors have sought to reduce overall portfolio exposure.

TheTable Company paid out redemptions in the amount of $27,716,023 and $61,345,943, respectively, during the three and six months ended June 30, 2013 and $21,983,874 and $46,900,061, respectively, during the three and six months ended June 30, 2012. The Company had redemptions payable in the amount of $28,264,359 at June 30, 2013 and $33,690,336 at December 31, 2012. The Company funded the redemptions made in 2012 and in January, April, and July 2013 by making redemptions from the Investment Funds in proportion to the then current weightings and through the use of uninvested cash on hand. The Managing Member expects the Company to fund future redemptions in a similar manner and does not believe that the redemptions payable in July 2013 had a material adverse effect on the value of the units or the performance of the Company. Contents

~~Demand~~ the ~~for~~emerging ~~redemptions~~markets ~~varies~~and ~~from~~Asia. ~~period~~Short toexposure ~~period~~broadly ~~based~~detracted ~~upon~~across sectors given the positive market conditions. In September, ELSM Advisors generally generated positive absolute performance, although there was some dispersion across the ~~Company’s~~strategy. ~~returns~~Net exposure rose from relatively low levels during August, translating to moderate upside capture in the early part of September. ELSM Advisors only slightly increased risk throughout the month of September as they remained focused on company fundamentals rather than technical market factors. Top performing ELSM Advisors benefited from idiosyncratic stock gains and ~~other~~long exposure to cyclical sectors which led the most ~~alternative~~recent ~~investments~~leg ~~available~~of the rally, as well as healthcare and telecom. Underperforming ELSM Advisors had greater exposure to ~~investors~~more defensive sectors such as consumer staples and utilities. Short exposure broadly detracted from absolute performance across sectors given the positive market returns.

~~Subject~~For ~~to applicable law,~~ the ~~Company~~Nine ~~and~~Months ~~each~~Ended Investment Fund may, but are not required to, borrow from (including through direct borrowings, borrowings through derivative instruments, or otherwise) The Goldman Sachs Group, Inc. or its affiliates, including Goldman, SachsSeptember ~~& Co. (collectively referred to herein~~30, ~~together~~ ~~with~~2012 their affiliates, directors, partners, trustees, managers, members, officers and employees, as the “GS Group”), or other parties, when deemed appropriate by its managing member, including to make investments and distributions in respect of redemptions of membership units, to pay expenses or for other purposes.

AsELSM ofAdvisors ~~June 30,~~finished ~~2013,~~ the ~~Company had~~first ~~cash~~nine ~~and~~months ~~cash~~of ~~equivalents~~2012 onwith ~~hand~~positive ofperformance ~~$15,374,725.~~as Asgains ofgenerated ~~December 31,~~during ~~2012,~~ the ~~Company~~first ~~had~~and ~~cash~~third ~~and~~quarter ~~cash~~were not ~~equivalents~~fully onoffset ~~hand~~by oflosses ~~$20~~in the second quarter,~~212,595~~ particularly in May.

~~Investments~~ELSM asAdvisors generated broadly positive performance throughout the first quarter of ~~June 30~~2012. In January, ~~2013~~ELSM ~~were~~Advisors’ ~~$347,273,733~~performance asbenefited ~~compared~~from an aggressive broad sector rotation effect that caused the weakest sectors of 2011 to ~~$387~~rally significantly and outperform the markets during the month,~~461~~ including financials,~~621~~ asmaterials, ~~of December 31~~industrials, ~~2012~~consumer discretionary and technology. ~~The~~In ~~decrease~~February, ~~was~~most ~~primarily~~ELSM ~~due~~Advisors tofinished ~~net~~in ~~redemptions~~positive ~~made~~territory byas ~~the~~well. ~~Company~~In ~~from~~general, many of the ~~Investment~~same trends that had characterized January continued into February. ~~Funds~~Cyclical sectors, ~~partially~~such ~~offset~~as bytechnology, ~~net~~financials, ~~realized~~consumer discretionary and ~~unrealized~~energy ~~gains~~continued to lead the rally during the ~~six~~month. ~~months~~In ~~ended~~March, ~~June 30~~ELSM Advisors generally realized modest positive performance, ~~2013~~producing returns that were generally in line with that of global equity markets in aggregate, although there was some dispersion of performance across the sector.

~~Management~~Performance ~~fee payable~~turned ~~represents~~negative over the ~~management~~second ~~fees~~quarter, ~~due~~primarily todriven ~~the~~by ~~Managing~~losses ~~Member~~in May. ~~Management~~In ~~fee~~April, ~~payable~~ELSM asAdvisors generally realized flat performance. Generation of ~~June 30,~~excess ~~2013~~returns from stock selection during the month was ~~$2,324,923~~strong asin ~~compared~~some cases with a number of ELSM Advisors generating flat to $1positive performance despite losses across most developed equity markets. Top performing ELSM Advisors benefited from long exposure to consumer discretionary and consumer staples. Underperforming ELSM Advisors realized losses from long exposure to financials,~~729~~ information technology,~~340~~ asand, ofto ~~December~~a lesser extent, energy 31& materials. In May, ~~2012~~ELSM Advisors generally realized losses, although many outperformed relative to global equity markets. ~~Because~~Given the ~~management~~significant ~~fee~~directional ismove ~~calculated~~in asmarkets, ELSM Advisors with higher net exposure struggled, while ELSM Advisors with lower net exposure realized more modest losses and a ~~percentage~~small number of ~~the Company’s~~ELSM ~~net~~Advisors ~~assets~~produced positive performance. Performance turned largely flat again in June as ofmacroeconomic ~~each~~issues ~~month~~such ~~end,~~as ~~the~~political ~~liability~~developments, ~~related~~policy toannouncements, ~~management~~and ~~fees~~shifting ~~will~~investor sentiment ~~fluctuate~~created ~~based~~a risk-on/risk-off ~~the~~environment. ~~fluctuation~~Most ofELSM Advisors entered the month ~~end~~of ~~NAV~~June with relatively low levels of ~~the~~net ~~Company~~exposure. ~~The~~In ~~increase~~response into ~~Management~~economic ~~fee~~stimulus ~~payable~~and isnotable ~~due~~healthcare tolegislation, ELSM Advisors with long positions focused in the ~~amount~~financials and ~~timing~~health ofcare ~~the payment~~sectors ofgenerally ~~the~~outperformed, ~~monthly~~while ~~management~~ELSM ~~fee~~Advisors with exposure to the ~~Managing~~technology ~~Member~~ and ~~fluctuations~~consumer insectors ~~the~~generally ~~NAV~~lagged.

39Positive performance resumed in the more benign market environment of the third quarter. In July, ELSM Advisors realized moderately positive performance with low dispersion. Performance was generally stronger for ELSM Advisors with long exposure in more defensive sectors. ELSM Advisors were also able to generate positive performance from individual stock selection as the quarterly earnings season led to notable dispersion between individual stock performances. In August, ELSM Advisors generally generated positive performance although there was some dispersion of performance across the sector. Top performing ELSM Advisors benefited from long exposure to cyclical sectors, as well as from idiosyncratic stock gains. Underperforming ELSM Advisors had greater exposure to more defensive sectors and realized losses from long exposure to the emerging markets and Asia. In September, ELSM Advisors generally generated positive absolute performance. Net exposure rose from relatively low levels during August, translating to moderate upside capture in the early part of September. ELSM Advisors only slightly increased risk throughout the month as they remained focused on

~~The~~36 Company generally expects that its cash flows from liquidating its investment positions in the Investment Funds to the extent necessary, and from new subscriptions into the Company, are adequate to fund its operations and liquidity requirements.

TheTable value of the Company’s directly held cash and financial instruments is not expected to be materially affected by inflation. At the Investee level, given that EDM’s Advisors seek to profit from price movements and can take both positive and negative views on the drivers of such movements, their outlooks may include a view on the direction of inflation, with the outcome of their trades derived, at least in part, from the accuracy of such a view. No first-order endemic effects from inflation, as may exist in long-only bond portfolios, are expected. Further, extended changes in inflation may be associated with strong up or down trends in interest rates, creating a favorable environment for GTTM’s Advisors, and therefore contributing to the Company’s profit potential. However, unexpected changes in inflation can also give rise to rapid reversals in interest rate markets, creating an environment in which such Advisors, and the Company, potentially may suffer losses. The impact of changes in inflation on equity long/short strategies used by ELSM’s Advisors is difficult to predict and depends upon how large the change is in both absolute terms and relative to expectations. A sharp increase in inflation could hurt certain sectors, such as regional banks, homebuilders, and autos, while sharp downward moves could be beneficial for equities. If a downward move were too large, however, it could give rise to concerns about deflation. In all cases, however, the Company endeavors to take inflation, and its possible effects on each of the Investment Funds, into account when it develops its investment strategies. Contents

~~Recent~~ company ~~Accounting~~fundamentals ~~Pronouncements~~rather than technical market factors. Top performing ELSM Advisors benefited from idiosyncratic stock gains and long exposure to cyclical sectors as well as healthcare and telecom. Underperforming ELSM Advisors had greater exposure to more defensive sectors.

InEvent ~~June~~Driven ~~2013,~~Managers ~~the~~LLC Financial Accounting Standards Board (the “FASB”) issued Accounting Standard Update (“ASU”) No. 2013-08, Financial Services — Investment Companies (Topic 946), which creates a two-tiered approach to assess whether an entity is an investment company. The guidance will also require an investment company to measure noncontrolling ownership interests in other investment companies at fair value and will require additional disclosures relating to investment company status, any changes thereto and information about financial support provided or contractually required to be provided to any of the investment company’s investees. The guidance is effective for financial statements with fiscal years beginning on or after December 15, 2013 and interim periods within those fiscal years. The adoption of ASU No. 2013-08 will not materially affect the Company’s financial condition, results of operations or cash flows.

~~Critical~~As ~~Accounting~~of ~~Policies~~September 30, 2012, EDM represented approximately 27% of the Company’s members’ equity. EDM returned 1.97% and ~~Estimates~~5.94%, respectively, for Class C Series 1 units for the three and nine months ended September 30, 2012.

~~Use~~For ofthe ~~estimates~~Three Months Ended September 30, 2012

~~The discussion~~Following ~~and~~mixed ~~analysis~~performance ofin the ~~Company’s~~second ~~financial~~quarter, ~~condition~~when ~~and~~market ~~results~~volatility ofrose ~~operations are based on the Company’s financial statements~~sharply, ~~which~~price action ~~are~~across ~~expressed~~risk inassets ~~U.S.~~was ~~dollars~~generally ~~and~~positive ~~have~~throughout ~~been~~much ~~prepared in accordance with U.S. GAAP. Preparation~~ of the ~~Company’s~~third financial statements requires the Managing Member to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions are based on the best available informationquarter, ~~but~~allowing ~~actual~~EDM ~~results~~Advisors ~~may differ from those estimates. A summary of the Company’s significant accounting policies is set forth in Note 2~~ to ~~the~~generate ~~Company’s~~broadly ~~financial~~positive ~~statements~~returns. ~~The measurement of fair value, as set forth below, is the Company’s most significant accounting policy.~~

~~Fair~~In ~~value~~July, oflong credit exposure was generally a contributor to performance for EDM Advisors, with a rally in rates, spread compression in corporate credit, idiosyncratic developments in certain liquidation investments and positive performance in structured credit. Equity special situations were generally a positive contributor to performance as well, and merger arbitrage exposure was generally a modest contributor to performance. Performance from hedges was mixed, with equity market hedges generally detracting but peripheral European sovereign hedges generally contributing positively, although partially reversing as markets rallied into month-end. Through August, credit market activity slowed into month-end, with limited new issuance activity and lower secondary trading volumes. Nonetheless, performance was positive in leveraged credit. However, structured credit attribution during August was generally muted following two strong months of performance in June and July. Equity exposure, in both merger arbitrage as well as equity special situations, was generally a source of positive returns. Performance from hedges, including equity market hedges and peripheral European sovereign hedges, was largely negative in August. In September, with stimulative monetary responses propelling markets and limited near term catalysts that might cause a market sell-off, many EDM Advisors benefited from having been positioned for positive market performance with long credit and equity exposures. A few EDM Advisors had been positioned long volatility and directionally net short, which led to losses or muted performance in September.

~~The~~For ~~Company’s investments in Investees are subject to~~ the ~~terms~~Nine ~~and~~Months ~~conditions~~Ended ~~of the operating agreements of the respective Investees. These investments are carried at fair value~~September 30, ~~which~~2012 is based on the Company’s attributable share of the net assets of the respective Investee. The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

40EDM Advisors generally produced positive returns during the first nine months of 2012, as positive performance over the first and third quarters outweighed slight negative performance in the second quarter.

~~U.S. GAAP~~In ~~has~~January aand ~~three-level~~February, ~~fair~~EDM ~~value~~Advisors ~~hierarchy~~generally ~~for~~benefited ~~disclosure~~from of“risk ~~fair~~on” ~~value~~sentiment, with long positions in ~~measurements~~both equities and credit contributing to performance. ~~The~~While ~~fair~~positioning ~~value~~was ~~hierarchy~~still ~~prioritizes~~relatively ~~inputs~~balanced toin January after the ~~valuation~~2011 ~~techniques~~volatility ~~used~~and toEDM ~~measure~~Advisors ~~fair~~did ~~value,~~not ~~giving~~fully participate in the ~~highest~~rally, ~~priority~~positioning towas ~~Level 1~~more ~~inputs~~bullish in February, resulting in more positive performance. Positive sentiment from January and February largely carried through the ~~lowest~~month toof ~~Level 3~~March ~~inputs.~~as Awell, ~~financial~~albeit ~~instrument’s~~with ~~level~~some inreversals throughout the month. Equity exposure, including special situations equity and merger arbitrage ~~fair~~positions, ~~value~~generally ~~hierarchy~~contributed ispositive ~~based~~returns onin March. Credit performance was more muted, due partly to rising rates as well as widening credit spreads in some instances. Through most of the ~~lowest~~first ~~level~~quarter of ~~any~~2012, ~~input~~hedges ~~that~~and isshort ~~significant~~exposure typically todetracted ~~its~~from ~~fair~~performance ~~value~~as ~~measurement~~prices of risk assets generally rose.

~~The~~Performance ~~Company uses~~was ~~NAV~~more asmixed ~~its~~during ~~measure~~the second quarter of ~~fair~~2012 ~~value~~as ~~for~~market ~~investments~~volatility instarted ~~Investees.~~to Inpick ~~evaluating~~up ~~the~~again. ~~level~~Performance atwas ~~which~~generally ~~the~~muted ~~fair~~in ~~value~~April ~~measurements~~and ofJune. ~~the~~Corporate ~~Company’s~~credit ~~investments~~positions ~~have~~generally ~~been~~contributed ~~classified,~~positively ~~the~~while ~~Company~~structured ~~has~~credit ~~assessed~~positions ~~factors~~detracted ~~including,~~in April but ~~not~~were ~~limited~~more ~~to,~~positive ~~price~~in ~~transparency,~~June. ~~the~~Equity ~~ability~~special tosituations ~~redeem~~and atmerger ~~NAV~~arbitrage atperformance ~~the~~was ~~measurement~~mixed ~~date~~during ~~and~~both ~~the~~months. ~~existence~~However, orthis ~~absence~~muted ofperformance ~~certain~~was ~~restrictions~~offset atby ~~the~~losses ~~measurement~~in ~~date.~~May ~~See~~when ~~Note~~EDM 2Advisors ~~and~~collectively ~~Note 3~~realized tonegative ~~the~~performance ~~Company’s~~as ~~financial~~concerns ~~statements.~~around the macro

~~For~~37 the six months ended June 30, 2013 and the fiscal year ended December 31, 2012, approximately 100% of the fair value of the Company’s pro-rata share of investments in the Investees was determined predominantly from utilizing NAVs provided by external advisors. At June 30, 2013 and December 31, 2012, investments valued using quoted market prices represented 0% of the fair value of the Company’s pro-rata share of investments in the Investees.

ValuationsTable generally are made based on information the Company or the Investees, as applicable, receive from the Advisors. This information is generally not audited, except at year-end, and could prove to be inaccurate due to inadvertent mistakes, negligence, recklessness or fraud by the Advisors. The Company receives preliminary and final NAVs from each of the Investees on a monthly basis. Historically, the Company has not experienced any material variance between the preliminary and final NAVs, which would have required adjustment to the Company’s financial statements. If the Managing Member determines that any such valuation may be inaccurate or incomplete, the Managing Member may determine the fair value of the asset based on information available to, and factors deemed relevant by, the Managing Member at the time of such valuation. Generally, however, neither the Company nor the Investees will receive independent valuations with respect to the assets managed by Advisors and will not in many cases be able to conduct any independent valuations on their own or to cause any third parties to undertake such valuations. In addition, valuations of illiquid securities and other investments are inherently uncertain and may prove to be inaccurate in hindsight. These risks are more fully described in the Company’s Form 10-K for the year ended December 31, 2012 (the “Form 10-K”). Contents

~~The~~ environment ~~valuation~~returned. ~~provisions~~Equity ofexposure ~~the~~was ~~Company’s~~broadly ~~LLC~~a ~~Agreement~~source ~~and the LLC Agreements~~ of ~~the~~negative ~~Investment~~performance, ~~Funds provide the Managing Member~~ with ~~greater~~losses ~~flexibility~~from tospecial ~~more~~situations ~~accurately value the Company’s assets (for purposes of subscriptions~~equity, ~~redemptions~~although ~~and~~there ~~fees)~~were ~~in circumstances where the Managing Member has information available to it indicating that~~ a ~~valuation~~few ~~may~~positive beidiosyncratic ~~inaccurate~~drivers ~~or incomplete, although generally, as described above, the Managing~~from ~~Member~~merger ~~will~~arbitrage ~~not have access to independent valuations and will rely on valuations provided by the Advisors~~investments. ~~Valuations~~Corporate ~~are~~credit ~~performed~~markets inwere arelatively ~~substantially~~resilient ~~similar~~through ~~manner~~early ~~for EDMAT. Accordingly~~May, tobut ~~the~~sold ~~extent~~off ~~that~~sharply ~~the~~into ~~Managing~~month-end ~~Member~~as ~~determines~~risk ~~that~~sentiment ~~a valuation~~deteriorated ~~provided~~on by an ~~Advisor~~increase ~~may~~in benegative ~~inaccurate~~economic ~~or incomplete, the additional flexibility on the Company’s valuation practices is designed to make the Company’s valuations more accurate~~news. ~~For~~Structured ~~example,~~credit toalso ~~the~~detracted ~~extent an Advisor has~~from ~~allocated~~performance. ~~assets~~EDM toAdvisors angenerally ~~Advisor~~benefited ~~Fund~~from ~~that~~portfolio ~~has~~hedges ~~provided~~in ~~the Company with a valuation report indicating a positive valuation~~May, ~~but~~which ~~the~~offset ~~Managing~~some Member is aware that the Advisor Fund has filed for bankruptcy, the Managing Member will be able to take the bankruptcy into account to attempt to more accurately determine the fair value of such assetslosses.

~~There~~Performance ~~has~~turned positive ~~been~~again noover ~~situation~~the third quarter of 2012. In July, both special situations equity and credit exposures contributed positively. The latter benefitted from spread compression in corporate credit as well as idiosyncratic developments in certain ~~during~~liquidation ~~the~~investments ~~periods~~and ~~contained~~positive performance in ~~this~~structured ~~Quarterly~~credit. ~~Report~~In onAugust, ~~Form 10~~credit market activity slowed into month-Qend, ~~where~~with ~~the~~limited ~~Managing~~new ~~Member~~issuance ~~has~~activity ~~determined~~and ~~that~~lower ~~the~~secondary ~~valuation~~trading ~~provided~~volumes. byNonetheless, anperformance ~~Advisor~~was orpositive ~~independent~~in leveraged ~~investment~~credit. ~~manager~~However, structured credit attribution during August was generally muted. Equity exposure, in ~~which~~both ~~one~~merger arbitrage as well as equity special situations, was generally a source of ~~the~~positive ~~Investment~~returns. ~~Funds~~Performance ~~had~~from ~~invested~~hedges, including equity market hedges and peripheral European sovereign hedges, was ~~not~~largely negative in August. In September, many EDM Advisors benefited from having been positioned for positive market performance with long credit and equity exposures, ~~complete~~benefitting from the market rally after stimulative policymaker action. A few EDM Advisors had been positioned long volatility and directionally net short, which led to losses or ~~was~~muted ~~inaccurate~~performance in September.

41Global Tactical Trading Managers LLC

~~Off-Balance~~As ~~Sheet~~of ~~Risk~~September 30, 2012, GTTM represented approximately 34% of the Company’s members’ equity. GTTM returned 2.42% and 3.23%, respectively, for Class C Series 1 units for the three and nine months ended September 30, 2012.

InFor the ~~normal~~Three ~~course~~Months ofEnded ~~business~~September 30, ~~the~~2012 Advisors of the Advisor Funds may trade various financial instruments and enter into various investment transactions with off-balance sheet risk, which includes, but are not limited, to securities sold short, futures, forwards, swaps and written options. There are no off-balance sheet or material contingent liabilities at the Company or Investee levels.

~~Contractual~~In ~~Obligations~~aggregate, tactical trading strategies generated positive performance in the third quarter, driven by macro GTTM Advisors, while managed futures GTTM Advisors realized flat performance.

~~The~~In ~~Company~~July, ~~does~~managed ~~not~~futures ~~have~~GTTM ~~any~~Advisors generated notable positive returns and macro GTTM Advisors were also positive. Managed futures GTTM Advisors benefitted from long~~-term~~ ~~debt~~positions in fixed income, most notably in European and U.S. fixed income instruments as yields decreased over the month. Macro GTTM Advisors ~~obligations~~experienced mixed performance in fixed income trading as exposures varied, ~~capital~~particularly orat ~~operational~~the ~~lease~~back ~~obligations~~end orof developed market yield curves. Trading in foreign exchange also contributed positively for both managed futures and macro GTTM Advisors as long U.S. dollar positioning benefited from an appreciation against several other currencies, most notably against the euro, which sold off on the back of continued pessimistic sentiment towards Europe. Trading in commodities generated mixed performance. GTTM Advisors with net long~~-term~~ ~~debt~~positioning ~~liabilities~~in grains typically outperformed, driven by the heat wave in the U.S. Midwest, which led to a rally in grains prices, while short exposure to energy commodities detracted due to a strong rally across the sector. Global equities rallied in July, which led to mixed results for GTTM Advisors, many of which had switched from long to short equity exposure over the prior several months; however, risk in equities was relatively low, so the contribution to performance was limited. In both August and September, there was a high dispersion of returns among GTTM Advisors but in aggregate they experienced losses, driven by managed futures GTTM Advisors. Managed futures GTTM Advisors suffered from their long fixed income positioning, most notably in both European and U.S. fixed income instruments as price action reversed. Trading in foreign exchange also detracted, as most GTTM Advisors entered August with a more bearish view on Europe, which suffered as the euro appreciated against the U.S. dollar as a result of the improved sentiment towards Europe. Trading in equities generated positive performance for most GTTM Advisors who were broadly bullishly positioned and benefited from the appreciation in major global equity markets. Commodity trading generated mixed performance, given the dispersion of positioning across managers.

4238

ItemTable 3.of Quantitative and Qualitative Disclosures About Market RiskContents

~~The~~For ~~following table lists~~ the ~~significant~~Nine ~~market~~Months ~~risk~~Ended ~~sensitive instruments held by the Company, through the Investees, as of June~~September 30, ~~2013 and as of December 31,~~ 2012, as indicated by the Fair Value/Value at Risk column and the Net Realized and Unrealized Gain/(Loss) column from January 1, 2013 to June 30, 2013 and from January 1, 2012 to December 31, 2012. Because of the uncertain nature of the investments that the Company engages in through the Investees, the Managing Member believes the entire portfolio value of the Company is at risk. The Managing Member is unable to track the impact of market volatility, credit and interest rate risk on the units because in many cases it does not receive information on individual investments made by Advisors or their aggregate holdings and so is not in a position to track such risks on an aggregate basis.

	Six Months Ended June 30, 2013
Investee	% of Members’Equity(1)			FairValue/Value atRisk		Net Realizedand UnrealizedGain/(Loss)(In millions)			Liquidity
ELSM		41.16	%	$	136,432,555	$	7.6			(2	)
EDM		28.31			93,852,554		6.3			(3	)
EDMAT		2.69			8,905,599		0.2			(4	)
GTTM		32.51			107,761,754		3.6			(5	)
RVM		0.10			321,271		(0.0	)		(6	)
HFPO		—			—		(0.2	)		(7	)
Total		104.77	%(8)	$	347,273,733	$	17.5
	Year Ended December 31, 2012
Investee	% of Members’Equity(1)			FairValue/Value atRisk		Net Realizedand UnrealizedGain/(Loss)(In millions)			Liquidity
ELSM		41.94	%	$	155,842,998	$	14.3			(2	)
EDM		26.78			99,506,680		9.3			(3	)
EDMAT		2.74			10,169,426		(0.6	)		(4	)
GTTM		32.59			121,112,624		7.3			(5	)
RVM		0.13			479,148		0.1			(6	)
HFPO		0.09			350,745		(0.3	)		(7	)
Total		104.27	%(8)	$	387,461,621	$	30.1

Tactical trading strategies generated positive performance in the first nine months of 2012 as both macro and managed futures GTTM Advisors overall generated gains in the first and third quarter, offsetting negative performance in the second quarter.

~~(1)~~In both ~~Members’~~January ~~equity~~and February, ~~used~~macro inGTTM ~~the~~Advisors ~~calculation~~and ofmanaged ~~the~~futures ~~investments~~GTTM Advisors experienced gains as ahealthy ~~percentage~~economic ofdata ~~members’~~and an improving investor risk sentiment benefited tactical trading strategies. Macro GTTM Advisors and managed futures GTTM Advisors broadly benefited from gains in long-biased commodities trading and performance was mixed in currency trading. Macro GTTM Advisors generally profited from trading in fixed income and had mixed performance in equities, while managed futures GTTM Advisors inversely experienced gains in long developed and emerging market equity positioning and realized mixed performance in fixed income. March was characterized by mixed economic data, ~~based~~which oncast uncertainty over recently improved investor risk sentiment. In aggregate, tactical trading strategies experienced negative performance. Managed futures GTTM Advisors were the ~~members’~~primary ~~equity~~driver ~~per~~of losses for the ~~Balance~~sector, ~~Sheet~~while ~~and~~macro GTTM Advisors realized modest losses in ~~accordance~~aggregate with ~~ASC~~fairly high ~~480~~dispersion. Trading in fixed income generally contributed positively for macro GTTM Advisors while trading in currencies and commodities generally detracted. Losses for managed futures GTTM Advisors occurred primarily in fixed income, ~~“Distinguishing~~as ~~Liabilities~~long positions ~~from~~suffered, ~~Equity~~most notably in U.”K. and U.S. government bonds. Managed futures GTTM Advisors also had limited success trading in both currencies and commodities, both of which detracted in March.

~~(2)~~In ~~Redemptions~~both ~~can~~April beand ~~made~~May, ~~quarterly~~managed ~~with~~futures 61GTTM ~~days’~~Advisors ~~notice~~experienced strong gains while macro GTTM Advisors experienced broadly flat performance. Managed futures GTTM Advisors benefitted from long positions in fixed income but as fixed income positioning was more mixed for macro GTTM Advisors, orthere atwas greater dispersion of returns for macro GTTM Advisors. Performance was mixed in currency trading and both macro and managed futures GTTM Advisors experienced losses in equity trading. Both macro and managed futures GTTM Advisors had mixed positioning in commodities throughout the ~~sole~~second ~~discretion~~quarter, which led to dispersed returns across the asset class. In June, GTTM Advisors experienced losses across asset classes as many GTTM Advisors maintained a more bearish view on global growth, which hurt performance. Managed futures GTTM Advisors were the primary driver of losses for the ~~Managing~~sector, ~~Member~~while macro GTTM Advisors experienced more moderate losses. Fixed income trading was a significant detractor in June as long positions suffered as price action reversed from the prior month. Conversely some select macro GTTM Advisors profited from short fixed income positioning. Equities trading was a detractor for both macro and managed futures GTTM Advisors in June. Trading in currencies also detracted as GTTM Advisors had uniform long positioning in the U.S. dollar which depreciated against most currencies in June. Some macro GTTM Advisors partially offset these losses with long emerging market currency positions. Trading in commodities led to mixed performance in June due to limited consensus in positioning.

~~(3)~~In ~~Redemptions~~July, ~~can~~managed befutures ~~made~~GTTM ~~quarterly~~Advisors ongenerated ornotable ~~after~~positive returns and macro GTTM Advisors were also positive. Managed futures GTTM Advisors benefitted from long positions in fixed income as yields broadly decreased over the ~~first~~month. ~~anniversary~~Macro GTTM Advisors experienced mixed performance in fixed income trading as exposures varied. Trading in foreign exchange also contributed positively for both managed futures and macro GTTM Advisors as long U.S. dollar positioning benefited from an appreciation against several other currencies. Trading in commodities generated mixed performance. Global equities rallied in July, which led to mixed results for GTTM Advisors, many of which had switched from long to short equity exposure over the ~~initial~~prior ~~purchase~~several ofmonths; however, risk in equities was relatively low, so the ~~units~~contribution to performance was limited. In both August and September, there was a high dispersion of returns among GTTM Advisors but in aggregate they experienced losses, driven by managed futures GTTM Advisors. Managed futures GTTM Advisors suffered from their long fixed income positioning as price action reversed. Trading in foreign exchange also detracted, as most GTTM Advisors entered August with ata ~~least~~more 91bearish ~~days’~~view ~~notice~~on Europe, orwhich atsuffered as the ~~sole~~euro ~~discretion~~appreciated ofagainst the ~~Managing~~U.S. ~~Member~~dollar. Trading in equities generated positive performance for most GTTM Advisors who were broadly bullishly positioned and benefited from the appreciation in major global equity markets. Commodity trading generated mixed performance, given the dispersion of positioning across managers.

~~(4)~~39 EDMAT does not provide investors with a voluntary redemption right. Pursuant to the terms of the trust agreement for EDMAT, distributions will be made to holders of interests in EDMAT as EDMAT receives proceeds in respect of its Advisors. The estimated remaining holding period of its remaining underlying investments range from one to five years.

(5)Table Redemptions can be made quarterly with 60 days’ notice, or at the sole discretion of the Managing Member.Contents

~~(6)~~Comparison ~~RVM~~of ~~ceased~~Selected ~~its~~Financial ~~trading~~Information ~~activities~~for ~~effective~~the onThree ~~July 1, 2009,~~ and ~~will~~Nine ~~dissolve~~Months atended ~~the time all assets are liquidated~~September 30, ~~liabilities are satisfied~~ 2013 and ~~liquidation~~September 30, ~~proceeds~~2012 are distributed through payment of a liquidating distribution. RVM suspended redemptions pending the completion of the liquidation proceedings. The estimated remaining holding period of its remaining underlying investments range from one to five years.

43Dividend Income

~~(7)~~Dividend ~~HFPO~~income ~~ceased~~for ~~its~~the ~~trading~~three ~~activities~~and ~~effective~~nine ~~December~~months 31ended September 30, 2013 was $212 and $1,513, respectively, compared to dividend income for the three and nine months ended September 30, 2012 of $3,185 and ~~was~~$8,785, ~~subsequently~~respectively. ~~liquidated~~The inCompany’s ~~March~~dividend ~~2013~~income fluctuates with the level of cash available to invest.

(8) The total value of the Company’s investment in the Investees exceeded 100% of members’ equity because members’ equity reflected certain accrued liabilities of the Company, including fees and expenses, and also reflected redemptions payable on the balance sheet date.Expenses

~~Risk~~The ~~Management~~management fee for the three and nine months ended September 30, 2013 was $1,042,239 and $3,367,162, respectively, compared to the management fee for the three and nine months ended September 30, 2012 of $1,407,032 and $4,719,687, respectively. Because the management fee is calculated as a percentage of the Company’s net assets as of each month end (equal to one-twelfth of 1.25% of the net assets of the Company of the applicable month), the changes in the expense were due to fluctuations in the Company’s net assets for the period ended September 30, 2013 compared to the same period in 2012.

InProfessional fees for the ~~ordinary~~three ~~course~~and ofnine ~~business~~months ended September 30, ~~the~~2013 ~~Managing~~were ~~Member~~$246,717 and ~~including~~$790,805, inrespectively, ~~its~~compared ~~capacity~~to asprofessional ~~managing~~fees ~~member~~for of the ~~Investment~~three ~~Funds,~~and ~~attempts~~nine tomonths ~~manage~~ended aSeptember 30, ~~variety~~2012 of ~~risks~~$343,803 ~~including~~and ~~market~~$982,650, ~~credit and operational risk~~respectively. The ~~Managing~~decrease ~~Member, including~~ in ~~its~~professional ~~capacity~~fees asfor ~~managing member of~~ the ~~Investment~~period ~~Funds, attempts~~ended ~~to identify~~September 30, ~~measure~~2013 ~~and~~was ~~monitor~~primarily due ~~risk~~to ~~through~~decreased ~~various~~costs ~~mechanisms~~related ~~including~~to ~~risk~~reduced ~~management~~agreed ~~strategies~~upon ~~and~~procedures ~~credit~~for ~~policies.~~regulatory ~~These~~filing ~~include~~requirements ~~monitoring~~for ~~risk~~Extensible ~~guidelines~~Business ~~and~~Reporting ~~diversifying~~Language ~~exposures across a variety of instruments, markets and counterparties~~(“XBRL”).

~~Market~~The ~~risk~~Company isincurs ~~the~~a ~~risk~~monthly ofadministration ~~potential~~fee ~~significant~~payable ~~adverse~~to ~~changes~~SEI equal to one twelfth of 0.02% of the ~~value~~net assets of ~~financial~~the ~~instruments because~~Company as of ~~changes~~each inmonth ~~market~~end. ~~conditions~~For ~~such~~the asthree ~~interest~~and ~~rates,~~nine ~~foreign~~months ~~exchange~~ended ~~rates~~September 30, 2013, ~~equity~~the ~~prices~~Company incurred an administration fee of $23,551 ~~credit~~and ~~spreads~~$74,501, ~~liquidity~~respectively, compared to the administration fee for the three and ~~volatility~~nine inmonths ~~commodity~~ended orSeptember 30, ~~security~~2012 ~~prices.~~of ~~The~~$29,388 ~~Managing~~and ~~Member~~$96,142, ~~including~~respectively. inThrough its ~~capacity~~investments asin the ~~managing~~Investment ~~member~~Funds, the Company continues to bear a pro-rata portion of the administration fee paid to the administrator of the Investment Funds, ~~monitors~~for ~~its~~services ~~exposure~~provided to ~~market~~the ~~risk~~Investment atFunds. ~~both~~For the ~~Advisor~~three and ~~portfolio~~nine ~~level~~months ~~through~~ended ~~various~~September 30, 2013, ~~analytical~~the ~~techniques.~~Company’s Atpro-rata indirect share of the ~~Advisor~~administration fee charged at the Investee level totaled $39,420 ~~market~~and ~~risk~~$126,683, isrespectively, ~~monitored~~compared onto athe ~~regular~~Company’s ~~basis.~~pro-rata ~~Full~~indirect ~~position~~share ~~level~~of ~~transparency~~the ~~refers~~administration tofee charged at the ~~Advisors~~Investee ~~currently~~level ~~subscribing~~for tothe ~~RiskMetrics~~three ~~HedgePlatform~~and nine months ended September 30, 2012 of $53,075 and $176,148, respectively. SEI is the administrator of each Investment Fund.

~~The~~Miscellaneous ~~Managing~~expenses ~~Member leverages RiskMetrics HedgePlatform, a leading hedge fund transparency service provider,~~ for ~~collecting, modeling and aggregating holdings data from underlying Advisors as well as for computing multiple risk analytics, including Value-at-Risk (“VaR”), for both~~ the ~~underlying Advisor~~three as well as the Company. Where position level detail is available, the Managing Member, including in its capacity as managing member of the Investment Funds, monitors its exposure to market risk through a variety of analytical techniques, including VaR and ~~scenario~~nine ~~analysis~~months ~~(stress~~ended ~~testing). The Managing Member looks at VaR over a one-day horizon at the 95% and 99% confidence intervals. As of June~~September 30, 2013, ~~the~~were Managing Member had full position level transparency for approximately 76% (as a percentage of fair value investments) of the Advisors in which the Company invests through the Investment Funds. Based on the June 30$46,023 ~~2013 Investment Fund allocation to Advisors~~ and ~~the underlying holdings of these Advisors~~$121, ~~the 95% and 99% daily VaR of the Company is 48 bps and 68 bps~~907, respectively. Holdings-based VaR is calculated using Monte Carlo simulations with a three year look back period and is based on actual holdings of Advisors for which position level detail is available; for Advisors where position level detail is not available, ~~realized~~compared ~~return~~to ~~history~~miscellaneous ofexpenses the Advisor is utilized. The Managing Member believes that the holdings-based VaR assumptions it utilizes are reasonable, given that VaR is only one determinant in the Managing Member’s overall risk management. However, holdings-based VaR has its own limitations. It is effective for ~~risk estimation at short horizons and has limited utility for medium or long horizon risk estimation, since it is computed for a static portfolio and does not account for~~ the ~~dynamic~~three ~~trading behavior of underlying Advisors. Further, its computation can be inaccurate due to mapping~~ and ~~modeling~~nine ~~limitations~~months ~~associated with complex~~ended portfolios of underlying Advisors and the simplifying assumptions used to account for Advisors who do not provide position level details. Therefore, the Managing Member supplements the holdings-based VaR with a historical VaR metric. This historical VaR metric is calculated using a rolling 36 month historical covariance matrix of underlying Advisors and the JuneSeptember 30, ~~2013~~2012 ~~allocations to underlying Advisors. As~~ of ~~June 30~~$38,217 ~~2013, the historical 95%~~ and ~~99% daily VaR of the Company is 36 bps and 51 bps~~$153,757, respectively. Where position level detail is unavailable, an Investment Fund relies on risk reports provided by the Advisors as well as through open communication channels with Advisors, which generally includes site visits and monthly conference calls. The Company’s maximum risk of loss is limited to the Company’s investment in the Investment Funds. The risks involved are more fully described in the Company’s Form 10-K.

~~The~~Incentive ~~managing~~Allocation member of the Investment Funds monitors Advisors to prevent style drift. “Style drift” is defined as Advisors changing their investment style from the Investment Fund’s expectations. Where position level detail is available, the managing member of the Investment Funds monitors leverage against predetermined limits.

44The Incentive Allocation for the three and nine months ended September 30, 2013 was $154,604 and $773,182, respectively, compared to the three and nine months ended September 30, 2012 of $9,089 and $16,208, respectively. Because the incentive allocation is calculated as a percentage of any new net appreciation in the net asset value attributable to each series, the changes in the incentive allocation were due to fluctuations in net income from operations for the period resulting in certain series of Class A Shares moving above or below their high watermark.

~~Position~~Other ~~sizing~~than ~~limits~~the ~~are~~management ~~also~~fee, ~~monitored~~professional tofees, ~~ensure~~administration ~~Advisors~~fees, ~~are~~miscellaneous ~~properly~~expenses ~~diversified~~ and ~~risk~~incentive ~~normally is not concentrated in one or relatively few positions. In some cases~~allocation, ~~the~~there ~~managing member of the Investment Funds also has the ability to monitor approved trading instruments to ensure Advisors~~ are ~~not trading securities outside their mandate. Where position level detail is not available, the managing member of the Investment Funds~~no ~~relies~~other onfees ~~both~~directly ~~written~~borne ~~and~~by ~~oral Advisor communications. The risks involved are more fully described in~~ the Company~~’s Form 10-K~~.

At40 the Company’s portfolio level, the Company’s portfolio construction process is designed to provide for adequate diversification. Each Investment Fund is a portfolio of approximately 10-30 underlying Advisors and the managing member of each of the Investment Funds regularly reviews portfolio statistics, such as relative contribution to risk, to confirm that risk is not concentrated in any single Advisor. The managing member of the Investment Funds, in its sole discretion, may determine from time to time the number of Advisors with which the Investment Funds invest based on factors such as the amount of assets under management of the Investment Funds, the availability of attractive opportunities, and other portfolio construction considerations. Any such greater concentration with any single Advisor or in any single investment strategy may entail additional risks. The risks involved are more fully described in the Company’s Form 10-K.

QuantitativeTable analysis is combined with judgment to determine weightings, strategic return, risk and correlation estimates to inform the quantitative analysis. Judgment is applied to both estimates and weights in an attempt to achieve exposure to hedge funds while delivering attractive risk-adjusted returns. The approximate weights of the material Investees were 41% ELSM, 28% EDM and 33% GTTM as of June 30, 2013 as a percentage of members’ equity. The approximate weights of the material Investees were 42% ELSM, 27% EDM and 33% GTTM as of December 31, 2012 as a percentage of members’ equity. This portfolio construction process is designed to create a diversified hedge fund portfolio with attractive return and risk characteristics. Contents

~~The~~Liquidity Managing Member may, from time to time, vary or change materially the actual allocation of assets made by the Company, as it deems appropriate in its sole discretion, including without limitation by way of allocation of Company assets to any new Investment Fund or Advisor, complete or partial withdrawal of an allocation from any existing Investment Fund or Advisor, a reallocation of assets among existing Investment Funds or Advisors, or any combination of the foregoing. In carrying out any reallocation of Company assets, the Managing Member will have the sole discretion to determine the manner of such reallocation, including from which Investment Funds or Advisors to withdraw assets and toCapital ~~which~~Resources Investment Funds or Advisors to allocate assets. Any reallocation of Company assets, for purposes of diversification, attempts to meet target allocations or otherwise, may take a significant period of time to implement due to the liquidity provisions and restrictions of the Investment Funds and the Advisors and for other reasons. There can be no assurance that market or other events will not have an adverse impact on the strategies employed by multiple Investment Funds and Advisors. Investment Funds and Advisors may at certain times hold large positions in a relatively limited number of investments. The Company could be subject to significant losses if an Investment Fund or an Advisor holds a large position in a particular investment that declines in value that cannot be liquidated without adverse market reaction or is otherwise adversely affected by changes in market conditions or circumstances. While the Managing Member currently expects to allocate assets to all the Investment Sectors (other than relative value) through allocations to the Investment Funds, the Managing Member has no constraints with respect to the percentage of the Company’s assets to be allocated, directly or indirectly, to any single Advisor, group of Advisors, Investment Fund, or Investment Sector, or with respect to the number of Investment Funds and Advisors to which, directly or indirectly, assets of the Company are allocated at any time. The percentage of the Company’s assets to be allocated to any single Advisor, group of Advisors, Investment Fund or Investment Sector, and the number of Investment Funds and Advisors to which the Company allocates assets from time to time will be determined by the Managing Member in its sole discretion, based on factors deemed relevant by the Managing Member at the time of such allocation, which may include the amount of the Company’s assets under management, constraints on the capital capacity of the Investment Funds and Advisors, the availability of attractive opportunities, and other portfolio construction and portfolio management considerations.

The Company’s liquidity requirements consist of cash needed to fund investments in the Investment Funds in accordance with the Company’s investment strategy, to fund quarterly redemptions and to pay costs and expenses. The Company periodically re-allocates its investments in the Investment Funds based on the performance of the Investment Funds and other factors. Redemptions are permitted on a quarterly basis and written notices of redemption must be delivered to the Company at least 91 days prior to the applicable valuation date, which is the day immediately preceding the applicable redemption date. Accordingly, the Company cannot predict the level of redemptions in the Company for any quarterly period until 91 days prior to the redemption date. The Company endeavors to pay redemption proceeds within 45 days following the redemption date, without interest. If the Company faces a liquidity problem, the redemptions may be limited or postponed under certain limited circumstances. The Managing Member’s ability to limit or postpone redemptions in the Company enables the Company to control and to some extent avoid a liquidity problem. However, substantial redemptions of units in the Company could require the Company to liquidate certain of its investments in the Investment Funds in order to raise cash to fund the redemptions, which could have a material adverse effect on the NAV of the units and the performance of the Company.

The Company ~~invests~~can infund ~~the~~its ~~Investment~~liquidity ~~Funds~~requirements by liquidation (through redemptions, ~~and~~or ~~may~~as ~~from~~otherwise ~~time~~permitted toin ~~time~~the ~~redeem~~LLC ~~its~~Agreements ~~membership units~~of the Investment Funds) of its investments in the Investment Funds and from new investments from existing and new investors. Neither EDMAT, ~~RVM,~~ nor ~~HFPO~~RVM provide investors with a voluntary redemption right. ~~The~~Redemptions ~~Investment~~can ~~Funds~~be made quarterly, subject to certain limitations. During certain historic periods, the Company only took in ~~turn~~investments from existing investors and limited subscriptions from new qualified investors; however, ~~maintain~~the ~~relationships~~Company ~~with~~has ~~counterparties~~been ~~that~~open ~~include~~to new subscriptions throughout the ~~Advisors~~third quarter of 2013. ~~These~~The ~~relationships~~Managing ~~could~~Member ~~result~~has indetermined that effective December 1, 2013, the Company will only accept ~~concentrations~~subscriptions offrom ~~credit~~existing ~~risk~~investors and will no longer accept subscriptions from new investors. ~~Credit~~The ~~risk~~Company ~~arises~~may begin accepting subscriptions again from new qualified investors at any time at the ~~potential~~sole ~~inability~~discretion of ~~counterparties~~the toManaging ~~perform~~Member. ~~their~~The acceptance ~~obligations~~of ~~under~~future subscriptions in the ~~terms~~Company ofwill be determined by the ~~contract,~~Managing ~~including~~Member in its sole discretion. Although the Managing Member has been receiving new subscriptions, any liquidity requirements in the ~~case~~near term may need to be funded through the redemption of existing investments in the ~~Company’s~~Investment Funds to the extent new investments are not received in sufficient amounts to cover redemptions. If the Company seeks to redeem all or a portion of its investment positions in any of the Investment Funds, the ~~potential~~ ~~inability~~Investment Fund, to the extent it does not have cash on hand to fund such redemption, will need to liquidate some of its investments. Substantial redemptions of membership units in an Investment Fund, including by the Company, could require the Investment Fund to ~~satisfy~~liquidate certain of its ~~redemption~~investments ~~obligations~~more rapidly than otherwise desirable in order to raise cash to fund the redemptions and achieve a market position appropriately reflecting a smaller asset base. ~~The~~This could have a material adverse effect on the value of the membership units redeemed and the membership units that remain outstanding and on the performance of the Investment Fund. Under certain exceptional circumstances, such as force majeure, the managing member of ~~the~~an Investment ~~Funds~~Fund (currently, the Managing Member) ~~has~~may ~~formal~~find ~~credit-review~~it ~~policies~~necessary (a) to ~~monitor~~postpone ~~counterparty~~redemptions ~~risk~~if it determines that the liquidation of investments in the Investment Fund to fund redemptions would adversely affect the NAV per membership unit of the Investment Fund or (b) to set up a reserve for undetermined or contingent liabilities and withhold a certain portion of redemption proceeds. In such circumstances, the Investment Fund would likely postpone any redemptions.

InCertain ~~addition~~investment topositions ~~market~~in ~~risk~~which ~~and~~the ~~credit~~Investment ~~risk,~~Funds ~~the~~have ~~Managing~~a ~~Member,~~direct ~~including~~or inindirect ~~its~~interest ~~capacity~~are asilliquid. ~~managing~~The Advisors ~~member~~may ofinvest ~~the~~in ~~Investment~~restricted ~~Funds, allocates~~or ~~resources~~non-publicly totraded ~~mitigate~~securities, ~~operational~~securities ~~risk.~~on ~~Operational~~foreign ~~risk~~exchanges isand ~~the~~futures. ~~potential~~These ~~for~~positions ~~loss~~may ~~caused~~be byilliquid abecause ~~deficiency~~certain inexchanges ~~information,~~limit ~~communication,~~fluctuations ~~transaction~~in ~~processing,~~certain ~~settlement~~securities and ~~accounting~~futures ~~systems.~~contract ~~The~~prices ~~Managing~~during ~~Member,~~a single ~~including~~day inby ~~its capacity~~regulations referred to as ~~managing~~“daily ~~member~~price offluctuation ~~the~~limits” ~~Investment~~or ~~Funds,~~“daily ~~maintains~~limits”. ~~controls~~Under ~~and~~such ~~procedures~~daily ~~for~~limits, ~~the~~during ~~purpose~~a ofsingle ~~mitigating~~trading ~~its~~day ~~own~~no ~~operational~~trades ~~risk~~may ~~but~~be itexecuted ~~does~~at ~~not~~prices ~~have~~beyond ~~control~~the ~~over~~daily limits. Once the ~~systems~~price of ~~the~~a particular ~~Advisors.~~security Inor ~~addition,~~futures ~~the~~contract ~~Managing~~has ~~Member,~~increased ~~including in~~or ~~its~~decreased ~~capacity~~by asan ~~managing~~amount ~~member~~equal ofto the ~~Investment~~daily ~~Funds~~limit, ~~deploys~~positions ~~resources~~in tothat ~~assess~~security ~~control~~or ~~systems,~~contract ~~legal~~can ~~risk,~~neither ~~compliance~~be ~~risk,~~taken ~~operations~~nor ~~and~~liquidated ~~treasury~~unless ~~risk,~~traders ~~credit~~are ~~risk,~~willing ~~accounting~~to ~~risk~~effect ~~and~~trades ~~reputational~~at ~~risk.~~or within the limit.

~~Fraud~~41 and other business risks cannot be eliminated; however, the Managing Member, including in its capacity as managing member of the Investment Funds, seeks to significantly reduce such risks. The portfolio risk management process includes an effort to monitor and manage risk, but should not be confused with and does not imply low risk. There can be no assurance that the Managing Member, including in its capacity as managing member of the Investment Funds, will be able to implement its risk guidelines or that its risk monitoring strategies will be successful.

ItemTable 4.of Controls and ProceduresContents

AsIn addition, certain of the ~~end~~investments held by the Investment Funds are subject to various lock-up provisions. Additionally, the Advisors of the ~~period~~investments ~~covered~~held by ~~this~~the ~~report~~Investment Funds may, anat ~~evaluation~~their ~~was~~discretion, ~~carried~~transfer ~~out~~a portion of the Investment Funds’ investment into share classes where liquidity terms are directed by the ~~Managing~~Advisor in ~~Member~~accordance with the respective investment’s ~~management~~private placement memorandum, ~~with~~commonly ~~the~~referred ~~participation~~to ofas ~~its~~side ~~principal~~pocket ~~executive~~share ~~officer~~classes (“side pockets”). These side pockets may have restricted liquidity and ~~principal~~prohibit the Investment Funds from ~~financial~~fully ~~officer~~liquidating ~~(or~~their ~~persons~~investments ~~performing~~without ~~similar~~delay. ~~functions),~~The managing member of each Investment Fund attempts to determine each Advisor’s strategy on side pockets through its due diligence process prior to making an allocation to the ~~effectiveness~~investment managed ofby the ~~design~~Advisor. ~~and~~However, ~~operation~~no ofassurance ~~the~~can ~~Company’s~~be ~~disclosure~~given ~~controls~~on ~~and~~whether ~~procedures~~or ~~(as~~not ~~defined~~the inAdvisor ~~Rule 13a-15(e)~~will ~~under~~implement side pockets during the ~~Securities~~investment ~~Exchange~~period. ~~Act~~The Advisors of ~~1934~~the investments held by the Investment Funds may also, asat their discretion, suspend ~~amended~~redemptions ~~(the~~or ~~“Exchange~~implement ~~Act”)).~~other ~~Based~~restrictions on ~~that~~liquidity ~~evaluation,~~which could impact the ~~Company~~Investment Funds’s ~~principal~~ability ~~executive~~to ~~officer~~meet ~~and~~redemptions ~~principal~~submitted ~~financial~~by ~~officer~~the ~~(or~~Company. ~~persons~~As ~~performing~~of ~~similar~~September 30, ~~functions)~~2013, ~~concluded~~approximately ~~that~~1% of the Company’s ~~disclosure~~investments ~~controls~~in ~~and~~the ~~procedures~~Investees were ~~effective~~considered asilliquid ofdue to restrictions implemented by the ~~end~~Advisors of the ~~period~~investments ~~covered~~held by ~~this~~Investees, ~~report.~~excluding Incontractual ~~addition,~~restrictions noimposed ~~change~~by in the ~~Company’s~~Advisors ~~internal~~at ~~control~~the ~~over~~time ~~financial~~of ~~reporting~~purchase, (such as ~~defined~~lock-ups. inIn ~~Rule~~addition, as of September ~~13a-15(f)~~30, ~~under~~2013, approximately 3% of the ~~Exchange~~Company’s ~~Act)~~members’ ~~occurred~~equity ~~during~~was ~~the~~considered ~~most recent~~illiquid ~~fiscal~~due ~~quarter~~to ~~that~~restrictions ~~has~~implemented ~~materially~~by ~~affected,~~the orInvestees. isThe ~~reasonably~~sum ~~likely~~of tothese ~~materially~~amounts ~~affect,~~represents the total amount of the Company’s ~~internal~~members’ equity ~~control~~which ~~over~~was ~~financial~~considered ~~reporting~~illiquid as of September 30, 2013.

46HFS, the managing member of EDM, created EDMAT for the benefit of its investors, including the Company. Goldman Sachs Trust Company, a Delaware Corporation, is the trustee of EDMAT (the “Trustee”). The Trustee appointed HFS as the “Special Assets Direction Advisor”, responsible for, among other things, disposition of EDMAT assets. On March 31, 2009, EDM transferred to EDMAT its interest in certain illiquid investments, including illiquid investments made by Advisor Funds, as well as liquidating vehicles that the Advisors formed as liquidity decreased for previously liquid investments, such as certain credit instruments. EDM transferred to EDMAT the economic risks and benefits of its interests in the assets. In connection with such transfer, each investor in EDM, including the Company, was issued its pro-rata share of EDMAT interests based on its ownership in EDM as of the transfer date. Distributions from EDMAT in respect of EDMAT interests will be made to holders of EDMAT interests, including the Company, as amounts in respect of the assets transferred to EDMAT are received from the Advisors. However, the actual timing of these distributions will be dependent on the Advisors’ ability to liquidate positions as market conditions allow, and it could be a significant period of time before such positions are realized or disposed of.

~~PART~~The Company received subscriptions from new and existing investors of $0 and $1,250,000, respectively, during the three and nine months ended September ~~II —~~30, ~~OTHER~~2013 ~~INFORMATION~~and of $250,000 and $6,491,936, respectively, during the three and nine months ended September 30, 2012.

~~Item~~Demand 1from new and existing investors varies from period to period based upon market conditions, the Company’s returns and other alternative investments available to investors. ~~Legal~~The ~~Proceedings~~Company believes that in more recent periods investors’ interest has decreased from earlier periods as investors have sought to reduce overall portfolio exposure.

~~There~~The Company paid out redemptions in the amount of $28,221,779 and $89,567,722, respectively, during the three and nine months ended ~~are~~September 30, no2013 ~~material~~and ~~pending~~$72,647,186 ~~legal~~and ~~proceedings~~$119,547,247, torespectively, ~~which~~during the three and nine months ended September 30, 2012. The Company orhad redemptions payable in the amount of $22,766,379 at September 30, 2013 and $33,690,336 at December 31, 2012. The Company funded the redemptions made in 2012 and in January, April, July and October 2013 by making redemptions from the Investment Funds in proportion to the then current weightings and through the use of uninvested cash on hand. The Managing Member isexpects the Company to fund future redemptions in a ~~party~~similar ormanner toand ~~which~~does ~~any~~not believe that the redemptions payable in October 2013 had a material adverse effect on the value of ~~their~~the ~~assets~~units ~~are~~or ~~subject~~the performance of the Company.

~~Item~~Demand ~~1A.~~for ~~Risk~~redemptions ~~Factors~~varies from period to period based upon market conditions, the Company’s returns and other alternative investments available to investors.

~~None.~~ 42

ItemTable 2. Unregistered Sales of Equity Securities and Use of ProceedsContents

~~From~~Subject ~~January 1~~to applicable law, ~~2013~~the Company and each Investment Fund may, but are not required to, ~~June 30~~borrow from (including through direct borrowings, ~~2013~~borrowings through derivative instruments, ~~aggregate~~or ~~subscriptions~~otherwise) ~~totaled~~The $1Goldman Sachs Group,~~250~~ Inc. or its affiliates,~~000~~ including Goldman, Sachs & Co. ~~Details~~(collectively ofreferred ~~the~~to ~~sale~~herein, oftogether with their affiliates, directors, partners, trustees, managers, members, officers and employees, as the ~~series~~“GS Group”), or other parties, when deemed appropriate by its managing member, including to make investments and distributions in respect of redemptions of membership units, ~~are~~to aspay ~~follows:~~expenses or for other purposes.

Date of Sale	Class andSeries ofUnits		Number ofUnits Sold		Number ofInvestors		TotalSubscriptionAmount
March 1, 2013		Class A Series 117		2,500.00		1		250,000
June 1, 2013		Class A Series 120		10,000.00		1		1,000,000
Total				12,500.00		2	$	1,250,000

As of September 30, 2013, the Company had cash and cash equivalents on hand of $13,322,304. As of December 31, 2012, the Company had cash and cash equivalents on hand of $20,212,595.

~~The~~Investments ~~units~~as ~~were~~of ~~sold~~September 30, at2013 were $~~100.00~~323,906,930 ~~per~~as ~~unit.~~compared ~~The sale was not subject~~ to ~~any~~$387,461,621 ~~underwriting~~as ~~discount~~of ~~or commission~~December 31, 2012. The ~~units~~decrease ~~were~~was ~~privately~~primarily ~~offered~~due ~~and~~to ~~sold~~net toredemptions ~~accredited~~made ~~investors~~by ~~pursuant~~the toCompany ~~Rule 506~~from ofthe Investment ~~Regulation D~~Funds, ~~and~~partially ~~the~~offset ~~sales~~by ~~were~~net ~~exempt~~realized ~~from~~and ~~registration~~unrealized ~~under~~gains during the ~~Securities~~nine ~~Act~~months ofended ~~1933~~September 30, 2013.

~~Pursuant~~Management tofee ~~the~~payable ~~Company’s~~represents ~~limited~~the ~~liability~~management ~~company~~fees ~~agreement,~~due ~~holders of units may redeem their units upon 91 days’ prior written notice~~ to the Managing Member. ~~(unless~~Management ~~such~~fee ~~notice~~payable isas ~~waived~~of bySeptember 30, ~~the~~2013 was ~~Managing Member in its sole discretion)~~$1,796,146 onas ~~each~~compared ~~January 1,~~to ~~April~~ $1,729,340 ~~July 1~~as orof ~~October~~December 131, ~~occurring~~2012. onBecause orthe ~~after~~management ~~the~~fee ~~first~~is ~~anniversary~~calculated ofas ~~the~~a ~~purchase~~percentage of ~~such~~ ~~units by~~ the ~~holder~~Company’s ~~(each~~net aassets ~~“Redemption Date”).~~as ~~Units~~ of aeach ~~particular~~month ~~series~~end, ~~will~~the beliability ~~redeemed~~related atto amanagement ~~per~~fees ~~unit~~will ~~price~~fluctuate based ~~upon~~ on the ~~NAV~~fluctuation of ~~such~~the ~~series~~month asend NAV of the ~~close~~Company. ofThe ~~business~~increase onin ~~the~~Management ~~day~~fee ~~immediately~~payable ~~preceding~~is ~~the Redemption Date~~due ~~(taking~~to ~~into~~the ~~account~~amount ~~the~~and ~~allocation~~timing of ~~any net appreciation or depreciation in~~ the ~~net~~payment ~~assets~~ of the ~~Company~~monthly ~~for the accounting period then ending), after reduction for any~~ management fee ~~and incentive fee and other liabilities~~ to the ~~extent~~Managing ~~accrued~~Member orand ~~otherwise~~fluctuations ~~attributable~~in to the ~~units being redeemed~~NAV. ~~The Company paid out redemptions of $27,716,023 during the three months ended June 30, 2013.~~

~~Item~~The 3.Company ~~Defaults~~generally ~~Upon~~expects ~~Senior~~that ~~Securities~~its cash flows from liquidating its investment positions in the Investment Funds, to the extent necessary, and from new subscriptions into the Company are adequate to fund its operations and liquidity requirements.

~~Not~~The value ~~applicable~~of the Company’s directly held cash and financial instruments is not expected to be materially affected by inflation. At the Investee level, given that EDM’s Advisors seek to profit from price movements and can take both positive and negative views on the drivers of such movements, their outlooks may include a view on the direction of inflation, with the outcome of their trades derived, at least in part, from the accuracy of such a view. No first-order endemic effects from inflation, as may exist in long-only bond portfolios, are expected. Further, extended changes in inflation may be associated with strong up or down trends in interest rates, creating a favorable environment for GTTM’s Advisors, and therefore contributing to the Company’s profit potential. However, unexpected changes in inflation can also give rise to rapid reversals in interest rate markets, creating an environment in which such Advisors, and the Company, potentially may suffer losses. The impact of changes in inflation on equity long/short strategies used by ELSM’s Advisors is difficult to predict and depends upon how large the change is in both absolute terms and relative to expectations. A sharp increase in inflation could hurt certain sectors, such as regional banks, homebuilders, and autos, while sharp downward moves could be beneficial for equities. If a downward move were too large, however, it could give rise to concerns about deflation. In all cases, however, the Company endeavors to take inflation, and its possible effects on each of the Investment Funds, into account when it develops its investment strategies.

~~Item~~Recent 4.Accounting ~~Reserved~~Pronouncements

~~Item~~Investment 5Companies (Accounting Standards Codification (“ASC”) 946). ~~Other~~In ~~Information~~June 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-08, “Financial Services — Investment Companies (Topic 946) — Amendments to the Scope, Measurement, and Disclosure Requirements.” ASU No. 2013-08 clarifies the approach to be used for determining whether an entity is an investment company and provides new measurement and disclosure requirements. ASU No. 2013-08 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2013. Earlier application is prohibited. Adoption of ASU No. 2013-08 is not expected to materially affect the Company’s financial condition, results of operations, or cash flows.

~~Forward-Looking Statements~~43

ThisTable Form 10-Q contains certain “forward-looking statements” regarding the operation of the Company and the Company’s investment objective, including, among other things: Contents

•Critical ~~investment~~Accounting ~~strategies~~Policies and ~~allocations~~Estimates ~~of assets;~~

•Use ~~future~~of ~~performance;~~estimates ~~and~~

•The ~~trends~~discussion and analysis of the Company’s financial condition and results of operations are based on the Company’s financial statements, which are expressed in U.S. dollars and have been prepared in accordance with U.S. GAAP. Preparation of the ~~Investment~~Company’s ~~Sectors~~financial statements requires the Managing Member to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions are based on the best available information, but actual results may differ from those estimates. A summary of the Company’s significant accounting policies is set forth in Note 2 to the Company’s financial statements. The measurement of fair value, as set forth below, is the Company’s most significant accounting policy.

47Fair value of investments

~~Forward-looking~~The ~~statements~~Company’s ~~are~~investments ~~typically~~in ~~identified~~Investees byare subject to the ~~use~~terms and conditions of ~~terms~~the ~~such~~operating ~~as “may,”~~agreements ~~“will,”~~of ~~“should,”~~the ~~“expect,”~~respective ~~“intend,”~~Investees. ~~“plan,”~~These ~~“anticipate,”~~investments ~~“estimate,”~~are ~~“believe,”~~carried ~~“continue,”~~at ~~“predict~~fair value,” ~~“potential”~~which oris based on the ~~negative~~Company’s attributable share of ~~such~~the ~~terms~~net ~~and~~assets ~~other~~of ~~comparable~~the ~~terminology~~respective Investee. ~~These~~The ~~statements~~fair ~~are~~value ~~only~~of ~~predictions~~a ~~and~~financial ~~are~~instrument ~~not~~is ~~historical~~the ~~facts.~~amount ~~Actual~~that ~~events~~would be received to sell an asset or ~~results~~paid ~~may~~to ~~differ~~transfer ~~materially~~a liability in an orderly transaction between market participants at the measurement date.

~~The~~U.S. ~~forward-looking~~GAAP ~~statements~~has ~~included~~a ~~herein~~three-level ~~are~~fair ~~based~~value onhierarchy ~~the~~for ~~Managing~~disclosure ~~Member~~ of ~~the~~fair ~~Company’s current expectations, plans,~~value ~~estimates~~measurements. ~~and~~The ~~beliefs~~fair ~~that~~value ~~involve~~hierarchy ~~numerous~~prioritizes ~~risks~~inputs ~~and uncertainties. Assumptions relating~~ to the ~~foregoing~~valuation ~~involve~~techniques ~~judgments~~used ~~with respect~~ to, ~~among~~measure ~~other~~fair ~~things~~value, ~~future~~giving ~~economic,~~the ~~competitive~~highest ~~and~~priority ~~market~~to ~~conditions~~Level 1 ~~and~~inputs ~~future business strategies~~ and ~~decisions,~~ ~~all~~the oflowest ~~which are difficult or impossible~~ to ~~predict~~Level 3 ~~accurately~~inputs. ~~and~~A ~~many~~financial ~~of which are beyond the Company~~instrument’s ~~control.~~level ~~Any~~in of the fair ~~assumptions~~value ~~underlying~~hierarchy ~~the~~is ~~forward-looking~~based ~~statements~~on ~~contained herein could be inaccurate and, therefore,~~ the ~~Managing~~lowest ~~Member~~level of ~~the~~any ~~Company~~input ~~cannot assure Members~~ that ~~the~~is ~~forward-looking~~significant ~~statements~~to ~~included~~its infair ~~this~~value ~~Form 10-Q will prove to be accurate~~measurement.

InThe ~~light~~Company uses ofNAV ~~the~~as ~~significant~~its ~~uncertainties~~measure ~~inherent~~of infair ~~the~~value ~~forward-looking~~for ~~statements~~investments ~~included~~ in ~~this~~Investees. ~~Form 10-Q,~~In evaluating the ~~inclusion~~level ofat ~~such~~which ~~information~~the ~~should~~fair ~~not~~value bemeasurements ~~regarded~~of asthe aCompany’s ~~representation~~investments byhave ~~the Company~~been orclassified, the ~~Managing~~Company ~~Member~~has ~~that~~assessed ~~the~~factors ~~investment~~including, ~~objective~~but ~~set~~not ~~forth~~limited into, price ~~this~~transparency, ~~Form 10-Q~~the ~~will~~ability beto ~~achieved.~~redeem ~~The~~at ~~Company~~NAV ~~cautions~~at ~~Members~~the ~~that~~measurement ~~forward-looking~~date ~~statements~~and ~~are~~the ~~not~~existence ~~guarantees~~or ~~and~~absence ~~that~~of ~~the~~certain ~~actual~~restrictions ~~results~~at ~~could~~the ~~differ~~measurement ~~materially~~date. ~~from those~~See ~~expressed~~Note or2 ~~implied~~and inNote 3 to the ~~forward-looking~~Company’s financial statements.

~~Risk~~For ~~Factors~~the nine months ended September 30, 2013 and the fiscal year ended December 31, 2012, 100% of the fair value of the Company’s pro-rata share of investments in the Investees was determined predominately from utilizing NAVs provided by external advisors. At September 30, 2013 and December 31, 2012, investments valued using quoted market prices represented 0% of the fair value of the Company’s pro-rata share of investments in the Investees.

InValuations ~~addition~~generally are tomade based on information the ~~risks~~Company ~~identified~~or inthe ~~our~~Investees, ~~Form 10-K~~as applicable, ~~which~~receive from the Advisors. This information is ~~incorporated~~generally ~~herein~~not byaudited, ~~reference~~except at year-end, and could prove to be inaccurate due to inadvertent mistakes, negligence, recklessness or fraud by the ~~following~~Advisors. ~~list~~The ~~indicates~~Company ~~some~~receives preliminary and final NAVs from each of the Investees on a monthly basis. Historically, the Company has not experienced any material variance between the preliminary and final NAVs, which would have required adjustment to the ~~risks~~Company’s ~~that~~financial ~~could~~statements. ~~impact~~If the ~~likelihood~~Managing Member determines that any ~~forward-looking~~such ~~statements~~valuation may be inaccurate or incomplete, the Managing Member may determine the fair value of the asset based on information available to, and factors deemed relevant by, the Managing Member at the time of such valuation. Generally, however, neither the Company nor the Investees will ~~come~~receive ~~true:~~independent valuations with respect to the assets managed by Advisors and will not in many cases be able to conduct any independent valuations on their own or to cause any third parties to undertake such valuations. In addition, valuations of illiquid securities and other investments are inherently uncertain and may prove to be inaccurate in hindsight. These risks are more fully described in the Company’s Form 10-K for the year ended December 31, 2012 (the “Form 10-K”).

• The ~~Company~~valuation ~~relies~~provisions onof the ~~Managing~~Company’s ~~Member~~LLC Agreement and the ~~Advisors~~LLC ~~and~~Agreements ~~there~~of ~~can~~the beInvestment noFunds ~~assurance~~provide ~~that~~ the ~~allocation~~Managing ~~and~~Member with ~~investment~~greater ~~decisions~~flexibility ~~made~~to bymore ~~the~~accurately ~~Managing~~value ~~Member and~~ the ~~Advisors~~Company’s ~~will~~assets be(for ~~successful;~~

•44 ~~Changes to the Investment Strategies by the Managing Member may not be successful and may have an adverse effect on the Company;~~

•Table Redemptions of Units are subject to a substantial waiting period and potentially outdated information;Contents

• purposes ~~Certain~~of ~~Advisors~~subscriptions, ~~impose~~redemptions ~~restrictions~~and onfees) ~~redemptions~~in ~~and~~circumstances where the Managing Member has information available to it indicating that a valuation may ~~impose~~be ~~redemption~~inaccurate ~~fees~~or ~~under~~incomplete, ~~certain~~although generally, ~~circumstances;~~as andescribed ~~Investment~~above, ~~Fund’s~~the ~~inability~~Managing Member will not have access to ~~redeem~~independent ~~its~~valuations ~~interests~~and ~~may~~will ~~have~~rely on valuations provided by the Advisors. Valuations are performed in a ~~material~~substantially ~~adverse~~similar ~~effect~~manner onfor EDMAT. Accordingly, to the ~~Investment~~extent that ~~Funds~~the Managing Member determines that a valuation provided by an Advisor may be inaccurate or incomplete, the additional flexibility on the Company’s ~~and~~valuation practices is designed to make the Company’s ~~investment~~valuations ~~program~~more ~~and~~accurate. ~~investment~~For example, ~~objective;~~to the extent an Advisor has allocated assets to an Advisor Fund that has provided the Company with a valuation report indicating a positive valuation, but the Managing Member is aware that the Advisor Fund has filed for bankruptcy, the Managing Member will be able to take the bankruptcy into account to attempt to more accurately determine the fair value of such assets.

•There ~~Substantial~~has ~~redemptions~~been ~~could~~no ~~have~~situation aduring ~~material~~the ~~adverse~~periods ~~effect~~contained in this Quarterly Report on Form 10-Q where the ~~Company;~~Managing Member has determined that the valuation provided by an Advisor or independent investment manager in which one of the Investment Funds had invested was not complete or was inaccurate.

•Off-Balance ~~Valuation~~Sheet ~~of the Company’s Investments;~~Risk

•In ~~The~~the ~~Company’s~~normal ~~NAV~~course ~~estimates~~of ~~are~~business, ~~and~~the inAdvisors of the ~~future~~Advisor ~~will~~Funds ~~ultimately~~may ~~be,~~trade ~~based~~various onfinancial ~~estimates~~instruments ofand ~~valuations~~enter ~~provided~~into various byinvestment ~~third~~transactions ~~party~~with ~~Advisors~~off-balance sheet risk, which ~~may~~includes, but are not belimited, ~~accurate~~to orsecurities ~~may~~sold ~~need~~short, tofutures, beforwards, ~~adjusted~~swaps inand written options. There are no off-balance sheet or material contingent liabilities at the Company ~~future;~~or Investee levels.

•Contractual ~~The~~Obligations ~~Managing Member of the Investment Funds may make investment decisions based on limited or incomplete information;~~

• The Company ~~faces~~does ~~legal~~not have any long-term debt obligations, ~~tax~~capital ~~and~~or ~~regulatory~~operational ~~risks~~lease ~~that~~obligations ~~may~~or ~~adversely~~other ~~affect~~long-term ~~the~~debt ~~Company;~~liabilities.

•45 ~~Advisors’ activities may be limited due to investment by the Company; Advisors may limit investment by the Company;~~

•Table Performance of the Company, the Investment Funds, the offshore fund, affiliated funds and Advisors is not indicative of future results;Contents

•Item A3. ~~Member’s~~Quantitative ~~investment in the Company will be affected by the investment policies~~ and ~~decisions~~Qualitative ofDisclosures ~~Advisors~~About ~~which~~Market ~~are outside the Company’s control;~~Risk

48The following table lists the significant market risk sensitive instruments held by the Company, through the Investees, as of September 30, 2013 and as of December 31, 2012, as indicated by the Fair Value/Value at Risk column and the Net Realized and Unrealized Gain/(Loss) column from January 1, 2013 to September 30, 2013 and from January 1, 2012 to December 31, 2012. Because of the uncertain nature of the investments that the Company engages in through the Investees, the Managing Member believes the entire portfolio value of the Company is at risk. The Managing Member is unable to track the impact of market volatility, credit and interest rate risk on the units because in many cases it does not receive information on individual investments made by Advisors or their aggregate holdings and so is not in a position to track such risks on an aggregate basis.

• Investment Fund allocations to Advisor Funds are difficult to monitor and control;


	Nine Months Ended September 30, 2013
Investee	% of Members’ Equity⁽¹⁾			Fair Value/Value at Risk		Net Realized and Unrealized Gain/(Loss) (In millions)			Liquidity
ELSM		41.26	%	$	128,689,178	$	12.3			(2	)
EDM		28.34			88,395,952		7.9			(3	)
EDMAT		2.53			7,905,775		0.1			(4	)
GTTM		31.61			98,612,609		2.0			(5	)
RVM		0.10			303,416		(0.1	)		(6	)
HFPO		—			—		(0.2	)		(7	)

Total		103.84	%⁽⁸⁾	$	323,906,930	$	22.0


	Year Ended December 31, 2012
Investee	% of Members’ Equity⁽¹⁾			Fair Value/Value at Risk		Net Realized and Unrealized Gain/(Loss) (In millions)			Liquidity
ELSM		41.94	%	$	155,842,998	$	14.3			(2	)
EDM		26.78			99,506,680		9.3			(3	)
EDMAT		2.74			10,169,426		(0.6	)		(4	)
GTTM		32.59			121,112,624		7.3			(5	)
RVM		0.13			479,148		0.1			(6	)
HFPO		0.09			350,745		(0.3	)		(7	)

Total		104.27	%⁽⁸⁾	$	387,461,621	$	30.1

•(1) ~~The~~Members’ ~~Investment~~equity, ~~Funds’~~used ~~and~~in the ~~Advisors’~~calculation of the investments ~~may~~as ~~not~~a bepercentage ~~diversified~~of ~~and~~members’ ~~there~~equity, ~~can~~based beon nothe ~~assurance~~members’ ~~that~~equity per the

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