N-CSRS

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-21815

PNC Absolute Return TEDI Fund LLC

(Exact name of registrant as specified in charter)

Two Hopkins Plaza
Baltimore, MD 21201
(Address of principal executive offices) (Zip code)

John M. Loder, Esq.
Ropes & Gray LLP
Prudential Tower
800 Bolyston Street
Boston, Massachusetts 02199-3600
(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-800-239-0418

Date of fiscal year end: March 31

Date of reporting period: September 30, 2010

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

PNC Absolute Return Funds

PNC Absolute Return Fund LLC
PNC Absolute Return TEDI Fund LLC
PNC Absolute Return Master Fund LLC

Semi-Annual Reports
September 30, 2010

Table of Contents (Unaudited)
September 30, 2010

	Page
Organizational Structure Summary		1
PNC Absolute Return Master Fund LLC Commentary		3
Financial Statements:
PNC Absolute Return Fund LLC
Statement of Assets and Liabilities		8
Statement of Operations		9
Statements of Changes in Members’ Capital		10
Statement of Cash Flows		11
Financial Highlights		12
PNC Absolute Return TEDI Fund LLC
Consolidated Statement of Assets and Liabilities		14
Consolidated Statement of Operations		15
Consolidated Statements of Changes in Members’ Capital		16
Consolidated Statement of Cash Flows		17
Consolidated Financial Highlights		18
PNC Absolute Return Master Fund LLC
Schedule of Investments		20
Statement of Assets and Liabilities		23
Statement of Operations		24
Statements of Changes in Members’ Capital		25
Statement of Cash Flows		26
Financial Highlights		27
Notes to Financial Statements		28
Other Information		39

PNC Absolute Return Funds

Organizational Structure Summary (Unaudited)
Period Ended September 30, 2010

PNC Absolute Return Fund LLC (the “Fund”) and PNC Absolute Return TEDI Fund LLC (the “TEDI Fund”, and together with the Fund, the “Feeder Funds”), are limited liability companies organized under the laws of the state of Delaware and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as closed-end, non-diversified, investment management companies. The Feeder Funds’ interests (“Interests”) are registered under the Securities Act of 1933, as amended, but are subject to substantial limits on transferability and resale.

The Feeder Funds seek capital appreciation and achieve this by investing substantially all of their assets in PNC Absolute Return Master Fund LLC (the “Master Fund”), a closed-end, non-diversified, investment management company organized under the laws of the state of Delaware and registered under the 1940 Act, with the same investment objective as the Feeder Funds. The Feeder Funds and Master Fund are referred to collectively within as the Funds.

This form of structure is commonly referred to as a “master-feeder” structure. Within this structure, the Feeder Funds (the “Members”) invest all or substantially all of their investable assets in the Master Fund. The Feeder Funds’ investment objectives are the same as those of the Master Fund. The following diagram is intended as a simplified illustration of the master-feeder structure:

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PNC Absolute Return Funds

Organizational Structure Summary (Continued) (Unaudited)
Period Ended September 30, 2010

The TEDI Fund is designed for investment by tax-exempt investors, including 401(k) plans and individual retirement accounts (“IRAs”) and invests substantially all of its investable assets in the Master Fund through a sole purpose intermediate entity, the PNC Absolute Return Cayman Fund LDC (the “Offshore Fund”), a Cayman Islands limited duration company with the same investment objectives as the TEDI Fund and Master Fund. The Offshore Fund makes no independent investment decisions and has no investment or other discretion over the investable assets. As the TEDI Fund controls substantially all of the operations of the Offshore Fund, the TEDI Fund financial statements are the consolidation of the TEDI Fund and the Offshore Fund. Inter-company balances have been eliminated through consolidation.

The Master Fund’s investment objective is to seek capital appreciation principally by investing in investment vehicles, typically referred to as hedge funds (“Investment Funds”) managed by third-party investment managers (“Investment Managers”) who employ a variety of alternative investment strategies each of which typically invests in either one or more absolute return strategies that tend to exhibit substantially lower volatility (as measured by standard deviation) than the average common stock trading on a U.S. exchange or an index of stocks, such as the S&P 500 Index. The Master Fund seeks Investment Funds that have historically shown relatively low (in some cases negative) correlation to each other, as well as low to negative correlation to broad equity and bond indices. Therefore, a fund of hedge funds, such as the Master Fund, focusing on the absolute return sector seeks to generate positive absolute returns over a market cycle with relatively low volatility.

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PNC Absolute Return Master Fund LLC
Master Fund Commentary (Unaudited)

September 30, 2010

Dear Members:

PNC Absolute Return Master Fund LLC¹ (the “Master Fund”) gained 0.88%, net of all fees and expenses, for the six months ended September 30, 2010 (the “Reporting Period”). The Master Fund produced positive returns in four of the six months ended September 30, 2010. To compare, the Master Fund outperformed the HFRX Absolute Return Index,² which generated a 0.53% return during the same time frame. The Master Fund also outperformed the -1.42% return of the S&P 500 Index³, although it lagged the 6.06% advance of the Barclays Capital U.S. Aggregate Bond Index⁴ over the same period.

As always, it is important to maintain a long-term perspective. Since its inception on December 27, 2002, the Master Fund has gained 3.47%, net of all fees, expenses and incentive allocations, on an annualized basis through September 30, 2010.

Market and Economic Review

The Reporting Period was truly a tale of two distinct quarters. During the first months of the Reporting Period, there was a decline in the performance of most risk assets, with volatility driven by a number of key macroeconomic factors. These factors included concerns surrounding the possible contagion effect of the European sovereign debt crisis, the potential impact of financial regulatory reform, data indicating decelerating economic activity, and a slowdown in the Chinese economy. Together, these anxieties resulted in a difficult combination of “sell” on rumor and “buy” when facts emerge. In turn, correlations of individual names within the equity market and across various markets, e.g. equities versus commodities, credit and currencies, were higher than during the 2008 financial crisis, despite lower absolute levels of volatility during these months of the second calendar quarter of 2010.

The third calendar quarter of 2010, on the other hand, was characterized by sharp shifts in investor sentiment, which translated into significant intra-month swings in risk asset performance. Ultimately, however, reports of strong second quarter corporate earnings, attractive valuations, the relatively underinvested position of investors, better than expected U.S. private sector payroll and manufacturing data, and accommodating reassurances from the Federal Reserve (the Fed) to backstop the U.S. economy drove risk assets markedly higher by the end of September 2010.

Master Fund Review

During the Reporting Period, the percentage of the Master Fund’s total assets allocated to the Global Macro, Managed Futures, Opportunistic Equity and Multi-Strategy strategies was modest. The following discussion focuses only on those strategies where the Master Fund had its greatest emphasis during the Reporting Period.

Credit-Based. Credit markets posted solid returns during the Reporting Period, as positive fund flows and an accommodative Fed served to support asset prices. The driving force behind the rally in credit assets was the clear predilection investors showed for bonds versus equities. A torrent of money poured into taxable fixed income products and out of equity funds during much of the

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Reporting Period. High yield corporate bonds, leveraged loans and emerging markets debt captured the most attention, as investors search for yield in a low interest rate environment. The Master Fund’s credit-based strategy managers generated positive absolute returns during the Reporting Period but significantly lagged the broader indices. While exposures⁵ were brought up, managers were slow to fully embrace the “risk on” trade. Instead, grudgingly, they had been forced to add exposure out of respect for market technicals rather than based on a belief in an improving macroeconomic backdrop. Conditions were not particularly favorable to long/short strategies, as the market traded with a high degree of credit correlation. This prevented managers from generating alpha, or added value, via security selection. The Master Fund’s best returns came from two segments of the credit universe—core distressed strategies and structured credit strategies. The Master Fund’s core distressed managers benefited from a rebounding equity market. This directly benefited managers’ holdings of post-reorganization equity as well as some of their process-oriented restructurings that have visibility to an eventual emergence from Chapter 11 bankruptcy. Structured credit managers within the Master Fund also notched a solid Reporting Period, owing primarily to the notably strong performance of residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS).

Hedged Equity. Global equity markets declined during the first several months of the Reporting Period, such that the MSCI All Country World Index⁶ fell 11.96% during the second calendar quarter. As markets capitulated, volatility increased. Perhaps the most notable evidence of such volatility was the large intraday drop in the Dow Jones Industrial Average⁷ on May 6^th, known as the “Flash Crash.” The Volatility Index (VIX)⁸ and asset correlations returned to levels not seen since the fall of 2008. Although the Master Fund’s long/short equity managers significantly outperformed equity indices during these months, performance generally was negative on an absolute basis. Market directionality clearly did not help the hedged style, but it was not the major source of frustration. Rather, it was an overall spike in correlations among stocks and sectors that impaired performance most, as managers moved aggressively to “de-risk” portfolios upon the realization that the pro-cyclical rally was coming to an abrupt end. During the third calendar quarter, Master Fund manager returns within this strategy component were strongly positive, albeit trailing the overall equity indices. Broadly speaking, the Master Fund’s long/short equity managers maintained somewhat conservative exposures, expressed either through lower gross exposures, higher average position liquidity, or less concentration. This is a reflection of the macroeconomic and regulatory uncertainty that overwhelmed their conviction of attractively valued companies with strong balance sheets and margins.

Event-Driven. The Master Fund’s event-driven strategy managers generally posted losses during the second calendar quarter before recouping them during the third calendar quarter. Merger arbitrage was a profitable strategy for the Master Fund during the Reporting Period overall, but with the risk-free rate so low, returns were mostly in the mid-single digit range, with some touching higher depending on the amount of leverage employed. During the Reporting Period, there were 56 deals announced. Deal activity was concentrated in the information technology, energy, health care and materials sectors. Deal value and premiums increased, but average deal size at $2.1 billion was significantly below historical averages. Returning to the market during the Reporting Period was the leveraged buyout bid, unsolicited deals, and deals with negative spreads⁹.

Within distressed strategies, investing remained subdued, as the par-weighted default rate for high yield corporate bonds decreased for 11 consecutive months. At the end of September 2010, the default rate on this segment of the fixed income market, as measured by Moody’s Investors Services, was 2.5%, the lowest level since December 2008 and down from approximately 11% in November

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2009. Similarly for high yield loans, the par-weighted default rate decreased to 3.9% at the end of September 2010, from 4.7% in November 2009. For as long as there is a dearth of activity in distressed investing, it is likely that event-driven managers will continue to focus on merger arbitrage, special situations and other corporate action-based strategies.

Strategy Ahead

At the end of September, forward-looking conversations with Investment Fund managers centered on the uncertainties facing the global economy. This is a radical change from the past when discussions with managers were more focused on individual holdings and microeconomic considerations.

We find investor expectations to be quite high for further quantitative easing by the Fed, whereby it will purchase U.S. Treasuries in an effort to stimulate more robust economic growth. Such anticipation seems to have put a floor under the equity market. Some market pundits have referred to this as the “Bernanke Put,” a clever reference to the policies of the former Fed chair. Meanwhile, it is also leading investors to largely shrug off incremental data that fails to meet expectations in lieu of data released in the market’s favor. So while the equity market has been neatly contained within a trading range that started nearly a year ago, the risk now seems, in our view, to lie on a breakout to the upside. As such, the Master Fund’s hedged equity managers, recognizing that asset prices are going to be far more sensitive to Fed policy than to the real economy, will likely, at the margin, go along for the ride.

Within the credit-based strategy, sub-fund managers appear less enamored with opportunities in traditional corporate distressed situations, as the level of default activity has tapered off and the class of mega-cap bankruptcies from 2009 (such as Lear, Delphi, Smurfit Stone, CIT and others) have exited their bankruptcies and begun life anew as lower-leveraged public companies. Certainly, there are still opportunities among the large bankruptcies, such as Lehman Brothers, Capmark and General Motors, but these feel like crowded trades with uncertain exit strategies. Two areas of opportunity that do continually pop up in discussions with managers are structured credit and private loan originations. Structured credit assets, in particular CMBS and RMBS, appear to offer good value and their returns are not necessarily predicated on any improvement in the macro economy as valuations already discount a draconian set of assumptions. With the near shut-down of traditional bank lending, managers are also looking to deploy capital in privately negotiated loan originations to the extent their mandate provides such flexibility. In our view, these opportunities offer the potential of double-digit yields with ample collateral and structural protections not found in other areas of the credit markets.

For event-driven strategy managers, we had expected that return drivers supporting merger arbitrage within event-driven equity sub-funds would improve in 2010 as businesses position themselves to be better placed to grow through corporate activity. While this had transpired to some degree with increased deal flow during the Reporting Period, we remain more constructive on the dynamics supporting future corporate activity. Corporate activity relating to mergers and spin-offs in general lag the economy, and we believe an absence of economic growth will, in all likelihood, be a catalyst as long as corporate confidence holds.

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Sincerely,

Ramius Alternative Solutions LLC

1	The Master Fund commenced investment operations on July 1, 2006. The performance and portfolio holdings discussed herein include the past performance and portfolio holdings of a predecessor fund with the same investment objective and strategies that transferred all of its assets to the Master Fund on July 1, 2006.
2	The HFRX Absolute Return Index is an investable hedge fund index designed to provide consistent returns with minimal correlation to the equity and fixed income markets.
3	The S&P 500 Index is a capitalization weighted index of 500 of the largest companies trading on the NYSE, as selected by Standard & Poor’s. Widely regarded as the standard for measuring large-cap U.S. stock market performance, the index includes exposure in all sectors and industries. An investor may not invest directly into the index.
4	The Barclays Capital U.S. Aggregate Bond Index (formerly the Lehman Brothers Aggregate Bond Index) is a market-weighted, intermediate-term bond index that encompasses U.S. Treasury and agency securities and investment grade corporate and international (dollar denominated) bonds. It is an unmanaged index frequently used as a general measure of bond market performance. An investor may not invest directly into the index.
5	Exposure typically signifies the dollar amount of long or short positions in a fund per dollar of equity.
6	The MSCI All Country World Index (the MSCI ACWI) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. As of May 27, 2010 the MSCI ACWI consisted of 45 country indices comprising 24 developed and 21 emerging market country indices. The developed market country indices included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States. The emerging market country indices included are: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.
7	The Dow Jones Industrial Average is the most widely used indicator of the overall condition of the stock market, a price-weighted average of 30 actively traded blue chip stocks, primarily industrials. The 30 stocks are chosen by the editors of the Wall Street Journal (which is published by Dow Jones & Company), a practice that dates back to the beginning of the century.
8	The Chicago Board Options Exchange (CBOE) Volatility Index® (VIX®) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. Since its introduction in 1993, VIX has been considered by many to be the world’s premier barometer of investor sentiment and market volatility.
9	Negative spread is where the company being acquired is trading at a price higher than the acquirer has formally bid. Typically, this signifies that investors believe a higher offer for the company is very likely.

Past performance is no guarantee of future results.

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PNC Absolute Return Fund LLC

Financial Statements

7

PNC Absolute Return Fund LLC

Statement of Assets and Liabilities (Unaudited)
September 30, 2010

Assets
Investment in Master Fund	$	23,435,863
Cash		29
Receivable from Master Fund for tender offers		1,000,000
Receivable from Manager		126,446
Restricted cash		98,513
Prepaid expenses		2,925
Total assets		24,663,776
Liabilities
Note payable for tender offers		1,098,513
Due to Master Fund		68,632
Administration fees payable		18,941
Chief Compliance Officer fees payable		1,036
Directors’ fees payable		887
Deferred compensation		750
Incentive fee payable		519
Other accrued expenses		61,465
Total liabilities		1,250,743
Net assets	$	23,413,033
Members’ capital
Capital	$	11,919,522
Accumulated net investment loss		(8,099,301	)
Accumulated net realized gain from investments		14,586,393
Net unrealized appreciation on investments		5,006,419
Members’ capital	$	23,413,033

The accompanying notes are an integral part of these financial statements.

8

PNC Absolute Return Fund LLC

Statement of Operations (Unaudited)
Six-Month Period Ended September 30, 2010

Net investment loss allocated from Master Fund
Dividend income	$	342
Expenses		(302,101	)
Net investment loss allocated from Master Fund		(301,759	)
Dividend income
Dividend income		29
Operating expenses
Administration fees		38,456
Legal fees		23,520
Printing fees		17,548
Audit fees		13,091
Tax expense		12,403
Insurance expense		7,420
Directors’ fees		7,313
Registration fees		2,507
Chief Compliance Officer fees		1,489
Incentive fee		519
Other expenses		7,738
Total operating expenses		132,004
Less:
Expense waiver/reimbursement from Manager		(184,711	)
Net operating expenses		(52,707	)
Net investment loss		(249,023	)
Net realized and unrealized gain on investments allocated from Master Fund
Net realized gain from investments		184,642
Net change in unrealized appreciation/depreciation on investments		316,329
Net realized and unrealized gain on investments allocated from Master Fund		500,971
Net increase in Members’ capital from operating activities	$	251,948

The accompanying notes are an integral part of these financial statements.

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PNC Absolute Return Fund LLC

Statements of Changes in Members’ Capital (Unaudited)

For the year ended March 31, 2010
From operating activities
Net investment loss	$	(721,671	)
Net realized gain from investments		2,413,198
Net change in unrealized appreciation/depreciation on investments		3,073,089
Net increase in Members’ capital from operating activities		4,764,616
Members’ capital transactions
Cost of Interests repurchased		(17,858,198	)
Net decrease in Members’ capital from capital transactions		(17,858,198	)
Members’ capital
Balance at beginning of year		36,639,797
Balance at end of year	$	23,546,215
For the six-month period ended September 30, 2010
From operating activities
Net investment loss	$	(249,023	)
Net realized gain from investments		184,642
Net change in unrealized appreciation/depreciation on investments		316,329
Net increase in Members’ capital from operating activities		251,948
Members’ capital transactions
Proceeds from sale of Interests		600,000
Adjustment for prior period estimated tenders *		14,870
Cost of Interests repurchased		(1,000,000	)
Net decrease in Members’ capital from capital transactions		(385,130	)
Members’ capital
Balance at beginning of period		23,546,215
Balance at end of period	$	23,413,033

* See Note 3H in Notes to Financial Statements.

The accompanying notes are an integral part of these financial statements.

10

PNC Absolute Return Fund LLC

Statement of Cash Flows (Unaudited)
Six-Month Period Ended September 30, 2010

Cash flows from operating activities
Net increase in Members’ capital from operating activities	$	251,948
Adjustments to reconcile net increase in Members’ capital from operating activities to net cash provided by operating activities
Purchases of investment in Master Fund		(809,287	)
Proceeds from the sale of investment in Master Fund		985,130
Net investment loss and realized/unrealized gain on investments allocated from Master Fund		(199,212	)
Decrease in restricted cash		2,337,307
Decrease in receivable from Manager		39,089
Decrease in prepaid expenses		7,036
Decrease in other receivable		4,000
Increase in administration fee payable		15,191
Increase in Chief Compliance Officer fees payable		647
Increase in deferred compensation		500
Increase in directors’ fees payable		220
Increase in due to Master Fund		68,632
Increase in incentive fee payable		519
Increase in other accrued expenses		20,746
Net cash provided by operating activities		2,722,466
Cash flows from financing activities
Proceeds from sales of Interests		100,000
Cost of Interests repurchased		(2,837,307	)
Adjustment for prior period estimated tenders		14,870
Net cash used in financing activities		(2,722,437	)
Net change in cash		29
Cash
Beginning of period		—
End of period	$	29

The accompanying notes are an integral part of these financial statements.

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PNC Absolute Return Fund LLC

Financial Highlights (Unaudited)

	Six-month
	period			Year			Year			Year			Year			Year
	ended			ended			ended			ended			ended			ended
	September			March 31,			March 31,			March 31,			March 31,			March 31,
	30, 2010			2010			2009			2008			2007 *			2006
Total return before incentive fee(1)		1.07	%(2)		13.75	%		(17.59	%)		3.29	%		6.25	%		7.59	%
Incentive fee		(0.00	%)(2)		0.00	%		0.00	%		(3.00	%)		(0.39	%)		(0.45	%)
Total return after incentive fee(1)		1.07	%(2)		13.75	%		(17.59	%)		0.29	%		5.86	%		7.14	%
Members’ capital, end of period (000’s)	$	23,413		$	23,546		$	36,640		$	50,485		$	53,123		$	54,777
Ratios to average net assets(3)
Net investment loss ratio,
before waivers and reimbursements		(3.51	%)(4)		(2.87	%)		(2.71	%)		(2.53	%)		(2.70	%)		(3.13	%)
net of waivers and reimbursements		(2.02	%)(4)		(1.99	%)		(1.93	%)		(2.00	%)		(2.17	%)		(2.37	%)
Expense ratio before incentive fee,
before waivers and reimbursements		3.52	%(4)		2.90	%		2.80	%		2.55	%		2.40	%		2.77	%
net of waivers and reimbursements		2.02	%(4)		2.02	%		2.02	%		2.02	%		1.87	%		2.02	%
Expense ratio before incentive fee, net of waivers and reimbursements		2.02	%(4)		2.02	%		2.02	%		2.02	%		1.87	%		2.02	%
Incentive fee		0.00	%(2)		0.00	%		0.00	%		0.05	%		0.39	%		0.43	%
Expense ratio after incentive fee, net of waivers and reimbursements		2.02	%(4)		2.02	%		2.02	%		2.07	%		2.26	%		2.45	%
Portfolio turnover		14.03	%(2)(5)		24.52	%(5)		11.39	%(5)		14.22	%(5)		35.12	%(5)		19.13	%

*	On July 1, 2006, the Fund converted into a feeder fund of PNC Absolute Return Master Fund LLC. Performance information prior to July 1, 2006 was that of the stand-alone Fund.
(1)	Total return is calculated for all Members taken as a whole. A Member’s return may vary from these returns based on the timing of capital transactions. Total return is calculated for the period indicated.
(2)	Not annualized.
(3)	Does not include expenses of the Investment Funds in which the Master Fund invests. The net investment income, expense and incentive fee ratios are calculated for all Members taken as a whole, and include income and expenses allocated from the Master Fund. The computation of such ratios based on the amount of income and expenses and incentive fee assessed to a Member’s capital may vary from these ratios based on the timing of capital transactions. The Manager has contractually agreed to waive certain Fund expenses. See Note 4C in Notes to Financial Statements.
(4)	Annualized.
(5)	The portfolio turnover shown represents the Master Fund’s portfolio turnover for July 1, 2006 to March 31, 2007, the years ended March 31, 2008, March 31, 2009 and March 31, 2010, and the six-month period ended September 30, 2010. Portfolio turnover for the Fund from April 1, 2006 to June 30, 2006 was 4.21%. Portfolio turnover is calculated for the period indicated.

The accompanying notes are an integral part of these financial statements.

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PNC Absolute Return TEDI Fund LLC

Consolidated Financial Statements

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PNC Absolute Return TEDI Fund LLC

Consolidated Statement of Assets and Liabilities (Unaudited)
September 30, 2010

Assets
Investment in Master Fund	$	3,203,347
Restricted cash		150,249
Receivable from Manager		67,149
Prepaid expenses		400
Total assets		3,421,145
Liabilities
Note payable for tender offers		150,249
Due to Master Fund		73,446
Administration fees payable		5,993
Chief Compliance Officer fees payable		1,747
Directors’ fees payable		1,305
Deferred compensation		750
Incentive fee payable		65
Other accrued expenses		59,350
Total liabilities		292,905
Net assets	$	3,128,240
Members’ capital
Capital	$	3,299,009
Accumulated net investment loss		(412,934	)
Accumulated net realized gain from investments		986,830
Net unrealized depreciation on investments		(744,665	)
Members’ capital	$	3,128,240

The accompanying notes are an integral part of these financial statements.

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PNC Absolute Return TEDI Fund LLC

Consolidated Statement of Operations (Unaudited)
Six-Month Period Ended September 30, 2010

Net investment loss allocated from Master Fund
Dividend income	$	62
Expenses		(46,255	)
Net investment loss allocated from Master Fund		(46,193	)
Operating expenses
Legal fees		24,221
Printing fees		17,548
Audit fees		13,091
Administration fees		12,654
Tax expense		12,403
Directors’ fees		7,731
Registration fees		2,994
Chief Compliance Officer fees		2,200
Other expenses		6,478
Total operating expenses		99,320
Less:
Expense waiver/reimbursement from Manager		(91,843	)
Net operating expenses		7,477
Net investment loss		(53,670	)
Net realized and unrealized gain on investments allocated from Master Fund
Net realized gain from investments		19,797
Net change in unrealized appreciation/depreciation on investments		35,791
Net realized and unrealized gain on investments allocated from Master Fund		55,588
Net increase in Members’ capital from operating activities	$	1,918

The accompanying notes are an integral part of these financial statements.

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PNC Absolute Return TEDI Fund LLC

Consolidated Statements of Changes in Members’ Capital (Unaudited)

For the year ended March 31, 2010
From operating activities
Net investment loss	$	(112,947	)
Net realized gain from investments		275,688
Net change in unrealized appreciation/depreciation on investments		332,836
Net increase in Members’ capital from operating activities		495,577
Members’ capital transactions
Cost of Interests repurchased		(1,600,000	)
Net decrease in Members’ capital from capital transactions		(1,600,000	)
Members’ capital
Balance at beginning of year		3,733,236
Balance at end of year	$	2,628,813
For the six-month period ended September 30, 2010
From operating activities
Net investment loss	$	(53,670	)
Net realized gain from investments		19,797
Net change in unrealized appreciation/depreciation on investments		35,791
Net increase in Members’ capital from operating activities		1,918
Members’ capital transactions
Proceeds from sale of Interests		500,000
Adjustment for prior period estimated tenders *		(2,491	)
Net increase in Members’ capital from capital transactions		497,509
Members’ capital
Balance at beginning of period		2,628,813
Balance at end of period	$	3,128,240

* See Note 3H in Notes to Financial Statements.

The accompanying notes are an integral part of these financial statements.

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PNC Absolute Return TEDI Fund LLC

Consolidated Statement of Cash Flows (Unaudited)
Six-Month Period Ended September 30, 2010

Cash flows from operating activities
Net increase in Members’ capital from operating activities	$	1,918
Adjustments to reconcile net increase in Members’ capital from operating activities to net cash provided by operating activities
Purchases of investment in Master Fund		(575,272	)
Proceeds from the sale of investment in Master Fund		2,491
Net investment loss and realized/unrealized gain on investments allocated from Master Fund		(9,395	)
Decrease in receivable from Master Fund for tender offers		1,500,000
Decrease in restricted cash		369,751
Increase in receivable from Manager		(14,910	)
Decrease in prepaid expenses		1,212
Decrease in other receivable		4,000
Decrease in incentive fee payable		(3,654	)
Increase in administration fee payable		2,243
Increase in Chief Compliance Officer fees payable		1,358
Increase in deferred compensation		500
Increase in directors’ fees payable		638
Increase in due to Master Fund		73,446
Increase in other accrued expenses		17,916
Net cash provided by operating activities		1,372,242
Cash flows from financing activities
Cost of Interests repurchased		(1,369,751	)
Adjustment for prior period estimated tenders		(2,491	)
Net cash used in financing activities		(1,372,242	)
Cash
Beginning of period		—
End of period	$	—

The accompanying notes are an integral part of these financial statements.

17

PNC Absolute Return TEDI Fund LLC

Consolidated Financial Highlights (Unaudited)

	Six-month
	period			Year			Year			Year			Period
	ended			ended			ended			ended			ended
	September			March 31,			March 31,			March 31,			March 31,
	30, 2010			2010			2009			2008			2007 *
Total return before incentive fee(1)		0.49	%(2)		13.29	%		(18.68	%)		3.01	%		3.85	%
Incentive fee		0.00	%(2)		(0.09	%)		0.00	%		0.00	%		(0.35	%)
Total return after incentive fee(1)		0.49	%(2)		13.20	%		(18.68	%)		3.01	%		3.50	%
Members’ capital, end of period (000’s)	$	3,128		$	2,629		$	3,733		$	4,467		$	2,825
Ratios to average net assets(3)
Net investment loss ratio,
before waivers and reimbursements		(7.40	%)(4)		(6.33	%)		(5.45	%)		(5.70	%)		(10.16	%)(4)
net of waivers and reimbursements		(2.73	%)(4)		(2.81	%)		(2.42	%)		(2.40	%)		(3.59	%)(4)
Expense ratio before incentive fee, before waivers and reimbursements		7.41	%(4)		6.27	%		5.55	%		5.77	%		9.56	%(4)
net of waivers and reimbursements		2.73	%(4)		2.74	%		2.52	%		2.47	%		2.99	%(4)
Expense ratio before incentive fee, net of waivers and reimbursements		2.73	%(4)		2.74	%		2.52	%		2.47	%		2.99	%(4)
Incentive fee		0.00	%(2)		0.09	%		0.00	%		0.00	%		0.51	%(2)
Expense ratio after incentive fee, net of waivers and reimbursements		2.73	%(4)		2.83	%		2.52	%		2.47	%		3.50	%(4)
Portfolio turnover(5)		14.03	%(2)		24.52	%		11.39	%		14.22	%		35.12	%(2)

*	The TEDI Fund was seeded on May 10, 2006 and commenced investment operations on July 1, 2006.
(1)	Total return is calculated for all Members taken as a whole. A Member’s return may vary from these returns based on the timing of capital transactions. Total return is calculated for the period indicated.
(2)	Not annualized.
(3)	Does not include expenses of the Investment Funds in which the Master Fund invests. The net investment income, expense and incentive fee ratios are calculated for all Members taken as a whole, and include income and expenses allocated from the Master Fund. The computation of such ratios based on the amount of income and expenses and incentive fee assessed to a Member’s capital may vary from these ratios based on the timing of capital transactions. The Manager has voluntarily agreed to waive certain TEDI Fund expenses. See Note 4C in Notes to Financial Statements.
(4)	Annualized.
(5)	Portfolio turnover represents the Master Fund’s portfolio turnover and is calculated for the periods indicated.

The accompanying notes are an integral part of these financial statements.

18

PNC Absolute Return Master Fund LLC

Financial Statements

19

PNC Absolute Return Master Fund LLC

Schedule of Investments (Unaudited)
September 30, 2010

Investment Strategy as a Percentage of Total Investments

					% of
					Members’
	Cost		Value		Capital
Investment Funds*
Credit Based
Blue Mountain Credit Alternatives Fund, L.P.(a)	$	600,831	$	1,047,392		3.93	%
Brigade Leveraged Capital Structures Fund, L.P.		803,680		977,953		3.67
Chatham Asset Partners High Yield Fund		880,000		893,321		3.35
Claren Road Credit Partners, L.P.		1,200,000		1,371,156		5.15
GSO Liquidity Partners L.P.		191,616		164,231		0.62
GSO Special Situations Fund, L.P.		230,739		250,179		0.94
MKP Credit, L.P.		1,193,430		1,897,902		7.12
Total Credit Based		5,100,296		6,602,134		24.78
Event-Driven
Canyon Value Realization Fund, L.P.		166,879		219,272		0.82
Castlerigg Partners, L.P.		160,846		115,419		0.43
Cerberus SPV, LLC		1,060,934		1,907,922		7.16
Lenado Partners, Series A of Lenado Capital Partners L.P.(b)		979,474		201,767		0.76
Luxor Capital Partners L.P.		880,000		910,396		3.42
Montrica Global Opportunities Fund, L.P.		156,078		89,528		0.34
Taconic Opportunity Fund, L.P.		897,415		1,161,365		4.36
Total Event-Driven		4,301,626		4,605,669		17.29
Global Macro
Argonaut Macro Partnership L.P.		880,000		923,583		3.47
Brevan Howard, L.P.		597,239		1,254,352		4.71
COMAC Global Macro Fund, L.P.		1,000,000		1,164,552		4.37
Total Global Macro		2,477,239		3,342,487		12.55

The accompanying notes are an integral part of the financial statements.

20

PNC Absolute Return Master Fund LLC

Schedule of Investments (Continued) (Unaudited)
September 30, 2010

					% of
					Members’
	Cost		Value		Capital
Investment Funds* (continued)
Hedged Equity
Atlas Global, LLC	$	1,500,000	$	1,713,384		6.43	%
OMG Opportunities 2X Fund Limited(a)		520,104		518,075		1.94
Perry Partners, L.P.		81,173		84,208		0.32
PFM Diversified Fund, L.P.		1,500,000		1,712,016		6.43
SAC Multi-Strategy Fund L.P.		82,925		80,850		0.30
SCP Ocean Fund, L.P.		1,000,000		1,751,494		6.58
Total Hedged Equity		4,684,202		5,860,027		22.00
Managed Futures
BlueTrend Fund L.P. (Class A)		762,473		866,805		3.25
Total Managed Futures		762,473		866,805		3.25
Multi-Strategy
Amaranth Partners, L.L.C.		156,400		95,812		0.36
Goldman Sachs Investment Partners		1,713,152		1,845,133		6.93
HBK SLV, LP		124,096		111,103		0.42
Millennium USA, LP		860,737		1,065,858		4.00
Total Multi-Strategy		2,854,385		3,117,906		11.71
Opportunistic Equity
SAC Capital Management L.P.		326,383		392,500		1.47
Total Opportunistic Equity		326,383		392,500		1.47
Volatility
Iconic Capital Partners L.P.		880,000		860,830		3.23
Total Volatility		880,000		860,830		3.23
Total Investment Funds		21,386,604		25,648,358		96.28
Registered Investment Company
PNC Advantage Institutional Money Market Fund Institutional Shares, 0.09%(c)		1,552,245		1,552,245		5.83
Total Investments	$	22,938,849	$	27,200,603		102.11	%

*	All Investment Funds are non-income producing. See Note 6 in Notes to Financial Statements for additional information on liquidity of Investment Funds.
(a)	Fund investment fully or partially segregated to cover tender offers.
(b)	This Investment Fund has been fair valued by the Master Fund’s Pricing Committee in accordance with procedures approved by the Board of Directors.
(c)	Rate shown is the 7-day effective yield as of September 30, 2010. See Note 5 in Notes to Financial Statements.

The accompanying notes are an integral part of the financial statements.

21

PNC Absolute Return Master Fund LLC

Schedule of Investments (Continued) (Unaudited)
September 30, 2010

As of September 30, 2010, the fair value of the Master Fund’s investments by country as a percentage of Members’ capital is as follows:

Country	Cost		Value
Cayman Islands - 2.28%	$	676,182	$	607,603
United States - 99.83%		22,262,667		26,593,000
	$	22,938,849	$	27,200,603

The aggregate cost of investments for tax purposes is expected to be similar to book cost of $22,938,849. Net unrealized appreciation on investments for tax purposes was $4,261,754 consisting of $5,275,680 of gross unrealized appreciation and $1,013,926 of gross unrealized depreciation.

The investments in Investment Funds shown above, representing 96.28% of Members’ capital, have been fair valued in accordance with procedures established by the Board of Directors.

The accompanying notes are an integral part of the financial statements.

22

PNC Absolute Return Master Fund LLC

Statement of Assets and Liabilities (Unaudited)
September 30, 2010

Assets
Investment Funds, at value (cost $21,386,604)	$	25,648,358
Investment in registered investment company, at value (cost $1,552,245)*		1,552,245
Receivable from fund investments sold		398,192
Due from Feeder Funds		142,078
Other receivables		41,949
Receivable from Manager		17,232
Prepaid expenses		13,472
Total assets		27,813,526
Liabilities
Due to feeder funds for tender offers		1,000,000
Management fee payable		86,374
Administration fees payable		13,560
Directors’ fees payable		9,545
Deferred compensation		7,416
Chief Compliance Officer fees payable		1,794
Other accrued expenses		55,627
Total liabilities		1,174,316
Net assets	$	26,639,210
Members’ capital
Capital	$	13,682,330
Accumulated net investment loss		(4,249,379	)
Accumulated net realized gain from investments		12,944,505
Net unrealized appreciation on investments		4,261,754
Members’ capital	$	26,639,210

 * See Note 5 in Notes to Financial Statements.

The accompanying notes are an integral part of these financial statements.

23

PNC Absolute Return Master Fund LLC

Statement of Operations (Unaudited)
Six-Month Period Ended September 30, 2010

Investment income
Dividend income	$	404
Operating expenses
Management fees		172,128
Administration fees		46,369
Directors’ fees		43,194
Legal fees		27,870
Tax expense		13,955
Audit fees		13,091
Printing fees		2,507
Line of credit facility fees		2,500
Chief Compliance Officer fees		2,247
Other expenses		24,495
Total operating expenses		348,356
Net investment loss		(347,952	)
Net realized and unrealized gain on investments
Net realized gain from investments		204,439
Net change in unrealized appreciation/depreciation on investments		352,120
Net realized and unrealized gain on investments		556,559
Net increase in Members’ capital from operating activities	$	208,607

The accompanying notes are an integral part of these financial statements.

24

PNC Absolute Return Master Fund LLC

Statements of Changes in Members’ Capital (Unaudited)

For the year ended March 31, 2010
From operating activities
Net investment loss	$	(876,204	)
Net realized gain from investments		2,688,886
Net change in unrealized appreciation/depreciation on investments		3,405,925
Net increase in Members’ capital from operating activities		5,218,607
Members’ capital transactions
Proceeds from sales of Interests		378,113
Cost of Interests repurchased		(19,908,195	)
Net decrease in Members’ capital from capital transactions		(19,530,082	)
Members’ capital
Balance at beginning of year		40,345,140
Balance at end of year	$	26,033,665

For the six-month period ended September 30, 2010
From operating activities
Net investment loss	$	(347,952	)
Net realized gain from investments		204,439
Net change in unrealized appreciation/depreciation on investments		352,120
Net increase in Members’ capital from operating activities		208,607
Members’ capital transactions
Proceeds from sale of Interests		1,384,559
Cost of Interests repurchased		(987,621	)
Net increase in Members’ capital from capital transactions		396,938
Members’ capital
Balance at beginning of period		26,033,665
Balance at end of period	$	26,639,210

The accompanying notes are an integral part of these financial statements.

25

PNC Absolute Return Master Fund LLC

Statement of Cash Flows (Unaudited)
Six-Month Period Ended September 30, 2010

Cash flows from operating activities
Net increase in Members’ capital from operating activities	$	208,607
Adjustments to reconcile net increase in Members’ capital from operating activities to net cash provided by operating activities
Net change in unrealized appreciation/depreciation on investments		(352,120	)
Net realized gain from investments		(204,439	)
Purchases of investments		(3,520,000	)
Proceeds from sale of investments		5,093,730
Net purchase of short-term investments		(1,336,234	)
Decrease in receivable from fund investments sold		1,351,327
Increase in due from Feeder Fund		(142,078	)
Increase in receivable from Manager		(222	)
Decrease in prepaid expenses		799
Decrease in dividend income receivable		12
Increase in other receivable		(6,936	)
Decrease in administration fee payable		(7,640	)
Decrease in management fee payable		(2,476	)
Increase in Chief Compliance Officer fees payable		1,405
Increase in deferred compensation		4,833
Increase in directors’ fees payable		2,101
Increase in other accrued expenses		12,393
Net cash provided by operating activities		1,103,062
Cash flows from financing activities
Proceeds from sales of Interests		1,384,559
Cost of Interests repurchased		(2,487,621	)
Net cash used in financing activities		(1,103,062	)
Cash
Beginning of period		—
End of period	$	—

The accompanying notes are an integral part of these financial statements.

26

PNC Absolute Return Master Fund LLC

Financial Highlights (Unaudited)

	Six-month
	period			Year			Year			Year			Period
	ended			ended			ended			ended			ended
	September			March 31,			March 31,			March 31,			March 31,
	30, 2010			2010			2009			2008			2007 *
Total return(1)		0.88	%(2)		13.43	%		(17.62	%)		3.29	%		4.42	%
Members’ capital, end of period (000’s)	$	26,639		$	26,034		$	40,345		$	55,100		$	56,079
Ratios to average net assets(3)
Net investment loss		(2.44	%)(4)		(2.16	%)		(2.03	%)		(1.93	%)		(1.92	%)(4)
Net operating expenses		2.44	%(4)		2.19	%		2.12	%		2.00	%		2.02	%(4)
Portfolio turnover rate		14.03	%(2)		24.52	%		11.39	%		14.22	%		35.12	%(2)

*	The Master Fund was seeded on May 10, 2006 and commenced investment operations on July 1, 2006.
(1)	Total return is calculated for all the Members taken as a whole. A Member’s return may vary from these returns based on the timing of capital transactions. The total return is calculated for the period indicated.
(2)	Not annualized.
(3)	Does not include expenses of the Investment Funds in which the Master Fund invests. The net investment income and expense ratios are calculated for all Members taken as a whole. The computation of such ratios based on the amount of income and expenses assessed to a Member’s capital account may vary from these ratios based on the timing of capital transactions.
(4)	Annualized.

The accompanying notes are an integral part of these financial statements.

27

PNC Absolute Return Funds

Notes to Financial Statements (Unaudited)
Six-Month Period Ended September 30, 2010

1. Organization

PNC Absolute Return Fund LLC (the “Fund”), PNC Absolute Return TEDI Fund LLC (the “TEDI Fund”) and PNC Absolute Return Master Fund LLC (the “Master Fund”), are limited liability companies organized under the laws of the state of Delaware and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as closed-end, non-diversified, investment management companies. The Fund’s and TEDI Fund’s interests are registered under the Securities Act of 1933, as amended, but are subject to substantial limits on transferability and resale.

The Fund was formed on May 8, 2002 and commenced investment operations on December 30, 2002. On August 11, 2005, the Fund’s Board of Directors approved a plan to restructure the Fund as a feeder fund in a master-feeder structure. The plan was approved by the Members at a special meeting held on October 7, 2005. On July 1, 2006, the Fund transferred all of its investable assets totaling $55,921,867, including its interests in the underlying investment funds, to the Master Fund. The Fund owned 88.0% of the Master Fund as of September 30, 2010.

The TEDI Fund was formed on August 4, 2005 with operations commencing on July 1, 2006. The TEDI Fund invests substantially all of its investable assets into the PNC Absolute Return Cayman Fund LDC (the “Offshore Fund”), which commenced operations on July 1, 2006. The TEDI Fund owned 100% of the Offshore Fund, and the Offshore Fund owned approximately 12.0% of the Master Fund as of September 30, 2010.

The Master Fund was formed on August 4, 2005 with operations commencing upon the transfer of $55,921,867 (comprised of $54,892,511 of fund investments, $796,101 of cash, $232,881 of receivable from fund investments sold, and $374 of dividends receivable) from the Fund on July 1, 2006. Unrealized appreciation on the fund investments of $12,732,962 was included in the transfer.

A Board of Directors (the “Board”) has overall responsibility for the oversight of the operations of the Fund, TEDI Fund and Master Fund (the “Funds”) on behalf of the Members. The Board consists of persons who are not “interested persons” (as defined in the 1940 Act).

PNC Capital Advisors, LLC (the “Manager”), a Delaware limited liability company, serves as manager of the Funds pursuant to an Investment Management Agreement, each with the Fund, TEDI Fund and Master Fund, dated January 22, 2010. The Manager is registered as an investment adviser under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), and is an indirect wholly-owned subsidiary of The PNC Financial Services Group, Inc. (“PNC”). The Manager supervises the management of the day-to-day operations of the Funds subject to the supervision of the Board.

At September 30, 2010, PNC Investment Corp., an affiliate of the Manager, had capital balances in the Fund and TEDI Fund (together, the “Feeder Funds”) of $20,120,512 (82.4%) and $133,222 (4.3%), respectively, prior to any September 30, 2010 tender amounts redeemed from the respective fund.

The Manager has delegated its responsibilities for formulating a continuing investment program for the Master Fund and investment decisions regarding the purchases and withdrawals of interests in the Investment Funds to Ramius Alternative Solutions LLC (the “Adviser”), pursuant to an

28

PNC Absolute Return Funds

Notes to Financial Statements (Continued) (Unaudited)
Six-Month Period Ended September 30, 2010

Investment Advisory Agreement dated January 22, 2010. The Adviser is registered as an investment adviser under the Advisers Act.

Generally, initial and additional subscriptions for limited liability company interests (“Interests”) by eligible Members may be accepted at such times as the Funds may determine. The Funds reserve the right to reject any subscriptions for Interests in the Funds. The Funds from time to time may offer to repurchase outstanding Interests pursuant to written tenders by Members. These repurchases will be made at such times and on such terms as may be determined by the Board, in its complete and absolute discretion. The financial statements of the Master Fund should be read in conjunction with the financial statements of the Feeder Funds.

2. Recent Accounting Developments

Improving Disclosures about Fair Value Measurements. In January 2010, the Financial Accounting Standards Board issued new guidance to improve disclosures about fair value measurement. The new guidance requires disclosure of significant transfers in and out of Level 1 and Level 2 of the fair value hierarchy and the reasons for those transfers. It also clarifies existing disclosures regarding the level of disaggregation and inputs and valuation techniques used to measure fair value for measurements that fall within Level 2 or Level 3 of the fair value hierarchy as well as the reasons for all transfers into and out of Level 3. This guidance is effective for fiscal years beginning after December 15, 2009. The Master Fund has adopted this accounting guidance effective April 1, 2010, and it has not had a material impact on the Master Fund’s Members’ capital or results of operations. The guidance also requires entities to separately present purchases, sales, issuances, and settlements in their reconciliation of Level 3 fair value measurements (i.e. to present such items on a gross basis rather than on a net basis), effective for fiscal years beginning after December 15, 2010 and for interim periods within those fiscal years. Adoption of this accounting guidance is currently being assessed but is not expected to have a material impact on the Master Fund’s Members’ capital or results of operations.

3. Significant Accounting Policies

The Funds’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The following is a summary of the significant accounting policies followed by the Funds:

A.	Portfolio Valuation
	The net asset values (assets less liabilities, including accrued fees and expenses) of the Funds are determined as of the close of business at the end of each month in accordance with the valuation principles set forth below or as may be determined from time to time pursuant to policies established by the Board. The Feeder Funds’ investment in the Master Fund represents substantially all of the Feeder Funds’ assets. All investments owned are carried at fair value, which is the portion of the net asset values of the Master Fund held by the Feeder Funds.
	The Master Fund’s investment valuation policy is set forth below.
B.	Investment Valuation
	The Master Fund’s investments in the Investment Funds are considered to be illiquid and can only be redeemed periodically. The Board has approved procedures pursuant to which the

29

PNC Absolute Return Funds

Notes to Financial Statements (Continued) (Unaudited)
Six-Month Period Ended September 30, 2010

Master Fund values its investments in Investment Funds at fair value. In accordance with these procedures, the fair value of investments in Investment Funds as of each month-end ordinarily is the value determined as of such month-end for each Investment Fund in accordance with each Investment Fund’s valuation policies and reported at the time of the Master Fund’s valuation. As a general matter, the fair value of the Master Fund’s interest in an Investment Fund will represent the amount that the Master Fund could reasonably expect to receive from an Investment Fund if the Master Fund’s ownership interest was redeemed at the time of valuation, based on information reasonably available at the time the valuation is made and that the Master Fund believes to be reliable. In the event that an Investment Fund does not report a month-end value to the Master Fund on a timely basis or the Adviser concludes that the value provided by the Investment Fund does not represent the fair value of the Master Fund’s interest in the Investment Fund, the Master Fund determines the fair value of such Investment Fund based on the most recent value reported by the Investment Fund, as well as any other relevant information available at such time.

Considerable judgment is required to interpret the factors used to develop estimates of fair value. Accordingly, the estimates may not be indicative of the amounts the Master Fund could realize in a current market exchange and the differences could be material to the financial statements. The use of different factors or estimation methodologies could have a significant effect on the estimated fair value. The values assigned to these investments are based on available information and do not necessarily represent amounts that might ultimately be realized, as such amounts depend on future circumstances and cannot reasonably be determined until the individual investments are actually liquidated.

In accordance with GAAP, authoritative guidance on fair value measurements and disclosure establishes a fair value hierarchy and specifies that a valuation technique used to measure fair value shall maximize the use of observable inputs and minimize the use of unobservable inputs. The objective of a fair value measurement is to determine the price 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 (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

• Level 1	Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Master Fund has the ability to access at the measurement date;
• Level 2	Quoted prices which are not active, or inputs that are observable (either directly or indirectly) for substantially the full term of the asset or liability; and
• Level 3	Prices, inputs or exotic modeling techniques which are both significant to the fair value measurement and unobservable (supported by little or no market activity).

30

PNC Absolute Return Funds

Notes to Financial Statements (Continued) (Unaudited)
Six-Month Period Ended September 30, 2010

Investments are classified within the level of the lowest significant input considered in determining fair value. In evaluating the level at which the Master Fund’s investments have been classified, the Master Fund has assessed factors including, but not limited to price transparency, the ability to redeem at net asset value at the measurement date and the existence or absence of certain restrictions at the measurement date. If the Master Fund has the ability to redeem from the investment at the measurement date or in the near-term (within one quarter of the measurement date) at net asset value, the investment is classified as a Level 2 fair value measurement. Alternatively, if the Master Fund will never have the ability to redeem at its option from the investment or is restricted from redeeming for an uncertain or extended period of time from the measurement date, the investment is classified as a Level 3 fair value measurement. The table below sets forth information about the level within the fair value hierarchy at which the Master Fund’s investments are measured at September 30, 2010:

Investments by Investment Strategy	Level 1		Level 2		Level 3		Total
Investment Funds
Credit Based	$	—	$	5,140,332	$	1,461,802	$	6,602,134
Event-Driven		—		910,396		3,695,273		4,605,669
Global Macro		—		2,418,904		923,583		3,342,487
Hedged Equity		—		5,694,969		165,058		5,860,027
Managed Futures		—		866,805		—		866,805
Multi-Strategy		—		1,065,858		2,052,048		3,117,906
Opportunistic Equity		—		—		392,500		392,500
Volatility		—		860,830		—		860,830
Registered Investment Company		1,552,245		—		—		1,552,245
Total Investments by Investment Strategy	$	1,552,245	$	16,958,094	$	8,690,264	$	27,200,603

The Master Fund recognizes transfers into and out of the levels indicated above at the end of the reporting period. The net Level 3 transfers in/(out) noted below are due to a change in liquidity of the underlying Investment Funds between the measurement dates.

The following table summarizes the changes in fair value of the Master Fund’s Level 3 investments for the six-month period ended September 30, 2010.

						Change in
						unrealized
	Balance as of		Realized gain /			appreciation /			Net purchases /			Net Level 3			Balance as of
Description	March 31, 2010		(loss)			depreciation			(sales)			transfers in/(out)			September 30, 2010
Credit Based	$	3,529,886	$	(2,455	)	$	144,583		$	(312,310	)	$	(1,897,902	)	$	1,461,802
Event-Driven		5,638,036		159,834			4,713			(2,107,310	)		—			3,695,273
Global Macro		—		—			—			—			923,583			923,583
Hedged Equity		207,302		(4,842	)		19,001			(56,403	)		—			165,058
Multi-Strategy		2,056,307		(2,492	)		50,565			(52,332	)		—			2,052,048
Opportunistic Equity		748,107		42,738			(35,521	)		(362,824	)		—			392,500
Total	$	12,179,638	$	192,783		$	183,341		$	(2,891,179	)	$	(974,319	)	$	8,690,264

											Opportunistic
	Credit Based		Event-Driven		Global Macro		Hedged Equity		Multi-Strategy		Equity
Change in unrealized appreciation/depreciation included in earnings related to the securities still held at reporting date	$	60,393	$	38,738	$	43,583	$	19,001	$	50,565	$	(35,521	)

31

PNC Absolute Return Funds

Notes to Financial Statements (Continued) (Unaudited)
Six-Month Period Ended September 30, 2010

For the six-month period ended September 30, 2010, there have been no significant changes to the Master Fund’s fair valuation methodologies. The Master Fund did not hold any investments with unfunded commitments on September 30, 2010.

C.	Income Recognition and Security Transactions
	Dividend income is recorded on the ex-dividend date. Security transactions are recorded on the effective date of the subscription in, or redemption out of, the Investment Fund or Master Fund. Realized gains and losses from Investment Fund transactions are calculated on the average cost basis.
	Distributions from an Investment Fund, if any, will be classified as investment income or realized gains in the Statement of Operations of the Master Fund, or alternatively, as a decrease to the cost of the Investment Fund based on the U.S. income tax characteristics of the distribution if such information is available. In cases where the tax characteristics of a distribution from an Investment Fund are not available, such distribution will be classified as investment income.
	The Feeder Funds will bear, as investors in the Master Fund, their share of the income, realized and unrealized gains and losses of the Master Fund.
D.	Segregated Investments
	A portion of the Feeder Funds’ investments in the Master Fund are segregated to refinance the Interests in the Master Fund. In addition, certain of the Master Fund’s investments have been segregated to finance the repurchase of Interests from tender offers.
E.	Fund Expenses
	The Funds bear all expenses incurred in their businesses other than those that the Manager assumes. The expenses of the Funds include, but are not limited to, the following: all costs and expenses related to investment transactions and positions for the Master Fund’s account; legal fees; administrative fees; auditing fees; custodial fees; costs of insurance; registration expenses; expenses of meetings of the Board and Members; all costs with respect to communications to Members; and other types of expenses as may be approved from time to time by the Board. The Master Fund allocates the expenses it incurs to the Feeder Funds. In addition, the Master Fund pays the expense allocated to, and incurred by, the Feeder Funds and is reimbursed by the Feeder Funds through the redemption of Interests by the Feeder Funds.
	The Investment Managers of the Investment Funds in which the Master Fund invests also receive fees for their services. These allocations/fees include management fees based upon the net asset value of the Master Fund’s investment and an incentive or performance fee based upon the Master Fund’s share of net profits in the Investment Fund. For the six-month period ended September 30, 2010, allocations/fees for these services ranged from 1.0% to 2.5% annually for management fees and ranged from 20% to 25% annually for the performance or incentive allocations.
F.	Income Taxes
	The Funds intend to operate, and have elected to be treated, as partnerships for Federal income tax purposes. Each Member is individually responsible for the tax liability or benefit relating to their distributive share of taxable income or loss. Accordingly, no provision for Federal income

32

PNC Absolute Return Funds

Notes to Financial Statements (Continued) (Unaudited)
Six-Month Period Ended September 30, 2010

	taxes is reflected in the accompanying financial statements. Tax years 2007, 2008 and 2009 remain subject to examination by Federal and State jurisdictions, including those States where investors reside or States where the Funds are subject to other filing requirements. The Funds may make payments to state and local tax agencies during the year for interest and/or penalties. Such payments, if any, are shown as a tax expense on each Fund’s Statement of Operations.
	On behalf of non-U.S. Members, the Master Fund withholds and pays taxes on U.S. source income allocated from Investment Funds.
G.	Distribution Policy
	The Feeder Funds have no present intention of making periodic distributions of net investment income or capital gains, if any, to Members. The amount and frequency of distributions, if any, will be determined in the sole discretion of the Board.
H.	Capital Accounts
	Monthly net profits or net losses of the Fund, TEDI Fund and Master Fund will be allocated to the capital accounts of the respective fund’s Members as of the last day of each month-end in accordance with Members’ respective investment percentages of the Fund, TEDI Fund or Master Fund. Net profits or net losses will be measured as the net change in the value of the Members’ capital of the respective fund during a month, or portion thereof, before giving effect to any repurchases of interest in the fund, and excluding the amount of any items to be allocated to the capital accounts of the Members of the fund, such as incentive fees and withholding taxes, other than in accordance with the Members’ respective investment percentages.
	Interests or portions of Interests in Members’ capital that have been tendered and accepted by the Funds for repurchase are reclassified as liabilities in the Statement of Assets and Liabilities. A Member will continue to receive an allocation of net profits or net losses in respect to the tendered interest of the respective fund during the fiscal period through the valuation date stated in the tender offer. Variances between prior period estimated tender amounts and the final accepted amounts at valuation date are reflected as an increase or decrease to capital in the current reporting period as Capital Adjustment for Prior Period Estimated Tenders on the Statement of Changes in Members’ Capital of the Feeder Funds.
I.	Restricted Cash
	The Feeder Funds hold non-interest bearing restricted cash, which serves as collateral for the notes payable for the tender offers. As of September 30, 2010, the Fund and TEDI Fund held restricted cash balances of $98,513 and $150,249, respectively.
J.	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Manager to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reported period. The Manager believes that the estimates utilized in preparing the Funds’ financial statements are reasonable and prudent; however, actual results could differ from these estimates.

33

PNC Absolute Return Funds

Notes to Financial Statements (Continued) (Unaudited)
Six-Month Period Ended September 30, 2010

4. Related Party Transactions

A.	Management Fees
	The Master Fund pays the Manager a quarterly management fee at the annual rate of 1.25% of the Members’ capital of the Master Fund as of the last day of the quarter including assets attributable to the Manager and before giving effect to any repurchases of Interests by the Master Fund that have not settled as of the end of the quarter. The Manager pays the Adviser half of the management fees earned from the Master Fund.
B.	Incentive Fees
	The Feeder Funds pay the Manager an annual incentive fee (“Incentive Fee”), payable at the fiscal period-end (the “Incentive Period”), equal to 10% of each Member’s net profits in excess of such Member’s “Loss Carryforward Amount” and the Benchmark Return. The Loss Carryforward Amount for each Member commences at zero and, for each Incentive Period, is increased or reduced by the net losses or net profits, respectively, allocated to each Member’s capital account for such Incentive Period. The “Benchmark Return” is a non-cumulative return, determined from the first date of the fiscal year, except if a Member’s initial capital contribution is made after the beginning of the fiscal year, the Benchmark Return is instead determined from such initial contribution date. The Benchmark Return as of any accounting date equals the average of the rates for the generic three-month LIBOR as of the last day of each of the four immediately preceding calendar quarters, as published by Bloomberg, L.P. The Manager will pay the Adviser to the Master Fund one-half of the Incentive Fee.
C.	Expense Limitation
	Pursuant to the Expense Limitation Agreement, the Manager has contractually agreed to waive and/or reimburse the Fund’s expenses to the extent necessary to ensure that the annualized ordinary operating expenses (excluding the Incentive Fee, if any) will not exceed 2.02% of the Fund’s average net assets. The Expense Limitation Agreement will remain in effect through June 30, 2011 and will automatically renew for successive one year periods thereafter unless the Manager, the Fund or the Fund and the Master Fund provide at least 30 days written notice of termination to the other parties. Certain operating expenses of the TEDI Fund have been voluntarily paid by the Manager. These voluntary payments are temporary and the Manager may terminate all or a portion of these voluntary payments at any time and without notice to Members.
D.	Administration and Other Fees
	The Funds have also retained the Manager to serve as the administrator and pay the Manager an administration fee at an annual rate of 0.20% and 0.25% of Members’ capital of the Master Fund and Feeder Funds, respectively, plus a $15,000 flat fee for each Feeder Fund. Effective June 1, 2010, the Manager retained PNC Global Investment Servicing (U.S.) Inc. (“PNC Global”) to replace SEI Investments Global Funds Services as sub-administrator to provide administrative, accounting and investor services, as well as serve in the capacity of transfer and distribution disbursing agent for the Funds. On July 1, 2010, PNC sold the outstanding stock of PNC Global to The Bank of New York Mellon Corporation. At the closing of the sale, PNC Global Investment Servicing (U.S.) Inc. changed its name to BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”). As compensation for services provided, the Manager pays BNY Mellon a fee pursuant to a written agreement between the Manager and BNY Mellon. BNY Mellon also serves as escrow agent for the Feeder Funds.

34

PNC Absolute Return Funds

Notes to Financial Statements (Continued) (Unaudited)
Six-Month Period Ended September 30, 2010

	PFPC Trust Company, which will be renamed BNY Mellon Investment Servicing Trust Company effective July 1, 2011, replaced SEI Private Trust Company on June 1, 2010 as custodian for the Master Fund’s and Feeder Funds’ assets.
E.	Board Fees
	Each Board member receives an annual retainer, payable quarterly in arrears by the Master Fund of $6,333 plus a $500 fee for each regular meeting attended, as well as a fee for special or telephonic meetings. Each Board member also receives an annual retainer of $1,000 for each Feeder Fund. The Board members will not receive any fees from the Feeder Funds for attending regular, special or telephonic Board meetings. The Co-Chairmen of the Board and the Chairman of the Audit Committee also receive an additional annual retainer from the Master Fund of $3,000 and $667, respectively. The Funds also reimburse all Board members for all reasonable out of pocket expenses. Total amounts incurred related to Board meetings by the Fund, TEDI Fund and Master Fund for the six-month period ended September 30, 2010 were $44,744, $13,493 and $43,194, respectively, which includes $37,431 and $5,762 allocated from the Master Fund to the Fund and TEDI Fund, respectively.
	Directors who receive fees are eligible for participation in the Funds’ Deferred Compensation Plan (the “Plan”), an unfunded, nonqualified deferred compensation plan. The Plan, which became effective January 1, 2010, allows each eligible Director to defer receipt of all or a percentage of fees that would otherwise be payable for services performed.

5. Investment in Affiliated Registered Investment Company

Pursuant to Securities and Exchange Commission rules, the Master Fund may invest in affiliated money market funds offered by PNC Funds and PNC Advantage Funds, each an investment management company registered under the 1940 Act for which the Manager acts as investment adviser. The total net purchases of PNC Advantage Institutional Money Market Fund for the six-month period ended September 30, 2010 was $1,336,234.

6. Concentration of Risk

The Master Fund invests primarily in Investment Funds that are not registered under the 1940 Act and invest in and actively trade securities and other financial instruments using different strategies and investment techniques, including leverage, which may involve significant risks. These Investment Funds may invest a high percentage of their assets in specific sectors of the market in order to achieve a potentially greater investment return. As a result, the Investment Funds may be more susceptible to economic, political, and regulatory developments in a particular sector of the market, positive or negative, and may experience increased volatility of the Investment Funds’ net asset value.

Various risks are also associated with an investment in the Master Fund, including risks relating to the multi-manager structure of the Master Fund, risks relating to compensation arrangements and risks relating to limited liquidity.

The following table summarizes the liquidity provisions related to the Master Fund’s investments in Investment Funds by investment strategy at September 30, 2010:

35

PNC Absolute Return Funds

Notes to Financial Statements (Continued) (Unaudited)
Six-Month Period Ended September 30, 2010

							Estimated
Investment Funds					Redemption		Remaining
by Investment Strategy	Fair Value		Redemption Period		Notice Period		Holding Period (2)
Credit Based (A)
Restricted (1)	$	1,461,802	Quarterly - 3 years		65 - 90 days		13 months
Unrestricted		5,140,332	Quarterly - Annually		45 - 90 days		None
Event-Driven (B)
Restricted (1)		3,695,273	Quarterly - Annually		60 - 90 days		14 months
Unrestricted		910,396	Quarterly		90 days		None
Global Macro (C)
Restricted (1)		923,583	Monthly		30 days		10 Months
Unrestricted		2,418,904	Monthly		60 - 90 days		None
Hedged Equity (D)
Restricted (1)		165,058		N/A		N/A	Unknown
Unrestricted		5,694,969	Monthly - Quarterly		30 - 65 days		None
Managed Futures (E)
Unrestricted		866,805	Monthly		60 days		None
Multi-Strategy (F)
Restricted (1)		2,052,048	Quarterly		91 days		16 months
Unrestricted		1,065,858	Quarterly		90 days		None
Opportunistic Equity (G)
Unrestricted		392,500	Annually		30 days		None
Volatility (H)
Unrestricted		860,830	Monthly		60 days		None

(1)	As of September 30, 2010, these Investment Funds have notified the Master Fund of certain restrictions on liquidity which may include side pocket investments, suspended redemptions, restrictions from redeeming for an extended period of time from the measurement date or other restrictions. Certain other Investment Funds have redemption terms which inhibit liquidity for a period greater than 90 days.
(2)	Represents remaining holding period of locked-up Investment Funds or estimated remaining restriction period for illiquid investments such as side pockets and suspended redemptions. For some illiquid investments, the remaining holding period is unknown and is either stated in the table or excluded from the range shown for other investments in the strategy.
(A)	Credit based aims to generate return via positions in the credit sensitive areas of the fixed income markets which generally covers corporate, structured and mortgage debt. A myriad of securities can be utilized for expressing long or short positions including investment grade corporate bonds, high yield bonds, bank loans, mortgage-backed securities, asset-backed securities, CDS, etc. Most portfolios are structured to have low interest rate exposure and many funds attempt to achieve returns with low/moderate volatility.
(B)	Event-driven covers several major strategies that all rely upon defined corporate events including merger arbitrage, activist, special situations/restructuring and distressed/bankruptcy investing. While market exposure can vary depending on the strategy and implementation, typically there is some exposure to large market movements, changes in credit spreads, market illiquidity and increased volatility.
(C)	Global macro seeks to profit from broad trends in global markets across equities, fixed income, credit, currency and commodity markets through a discretionary trading style typically predicated upon analysis of macroeconomic factors. Global macro tends to have low correlation with other strategies and offers performance opportunities in a variety of market environments.
(D)	Hedged equity focuses on equity strategies with low/moderate market exposure. The strategy attempts to profit from active security selection and management of long/short exposure profile. The funds have a modest cyclical dependence on equity returns and are typically managed to be low/moderate volatility.

36

PNC Absolute Return Funds

Notes to Financial Statements (Continued) (Unaudited)
Six-Month Period Ended September 30, 2010

(E)	Managed futures aims to profit from broad trends or reversals in global markets across equities, fixed income, credit, currency and commodity markets through systematic trading strategies typically executed through very liquid financial instruments. Managed futures strategies tend to be characterized by higher volatility returns but the uncorrelated nature of those returns can provide a benefit to overall portfolio construction.
(F)	Multi-strategy is an investment style that offers flexibility to allocate assets dynamically across a wide variety of strategies based on the opportunity set in each strategy at a given point in time.
(G)	Opportunistic equity focuses on equity strategies with moderate/high market exposure. Long positions are held in companies with improving fundamentals, price momentum and/or a catalyst. Short positions are held as hedges or alpha generating positions. Typically a more aggressive approach to managing exposure is utilized and some may have concentrated portfolios or an industry sector focus.
(H)	Volatility strategies cover a range of investment styles that focus on trading the volatility of securities in various asset classes including equity, fixed income, etc. The exposures can range from long, short or neutral to the direction of the volatility of a security or asset class.

7.	Financial Instruments with Off-Balance Sheet Risk
	In the normal course of business, the Investment Funds in which the Master Fund invests trade various financial instruments and enter into various investment activities with off-balance sheet risk. These include, but are not limited to, short selling activities, writing option contracts, contracts for differences, and interest rate, credit default and total return equity swaps contracts. The Master Fund’s risk of loss in these Investment Funds is limited to the fair value of these investments reported by the Master Fund. The Master Fund itself does not invest directly in securities with off-balance sheet risk.
8.	Guarantor Obligations and Indemnifications
	In the normal course of business, the Funds enter into contracts that contain a variety of warranties and representations, which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds expect the risk of loss to be remote.
9.	Investment Transactions
	For the six-month period ended September 30, 2010, the aggregate purchases and sales of the Master Fund by the Fund amounted to $809,287 and $985,130, respectively, and by the TEDI Fund amounted to $575,272 and $2,491, respectively. For the same period, aggregate purchases and sales of investments (excluding short-term securities) by the Master Fund were $3,520,000 and $5,093,730, respectively.
10.	Tender Offer
	On February 26, 2010, the Fund and TEDI Fund offered to purchase in cash an amount of Interests or portions of Interest up to $1.0 million and $1.5 million, respectively, of Members’ capital tendered by Members of the Fund and TEDI Fund at prices equal to the net asset values at June 30, 2010. Tenders with values in the amount of $985,130 and $1,502,491 were received and accepted by the Fund and TEDI Fund, respectively, from limited Members. Non-interest bearing promissory notes were issued by the Fund and TEDI Fund entitling the Members to a payment on or about 30 days after June 30, 2010. Members of the Fund and TEDI Fund received initial payments of

37

PNC Absolute Return Funds

Notes to Financial Statements (Continued) (Unaudited)
Six-Month Period Ended September 30, 2010

	$886,617 and $1,352,241, respectively, on August 3, 2010 and the remaining amounts will be paid promptly after completion of the Fund’s and TEDI Fund’s March 31, 2011 year-end audits.
	On February 26, 2010, the Master Fund also offered to purchase in cash an amount of Interests or portions of Interest up to $2.5 million of the Members’ capital of the Master Fund tendered by Members of the Master Fund at a price equal to the net asset value on June 30, 2010. Tenders with a value of $2,487,621 were received and accepted by the Master Fund from Members. Members received a payment on August 3, 2010.
	On September 10, 2010, the Fund and TEDI Fund offered to purchase in cash an amount of Interests or portions of Interest up to $1.0 million and $100,000, respectively, of Members’ capital tendered by Members of the Fund and TEDI Fund at prices equal to the net asset values at December 31, 2010. Tenders with an estimated value in the amount of $1.0 million were received and accepted by the Fund from limited Members. No tenders were received or accepted by the TEDI Fund from limited Members. Non-interest bearing promissory notes were issued by the Fund entitling the Members to an initial payment in an amount equal to at least 90% of the tender, on or about 30 days after December 31, 2010, and the remaining amount will be paid promptly after completion of the Fund’s March 31, 2011 year-end audit.
	On September 10, 2010, the Master Fund also offered to purchase in cash an amount of Interests or portions of Interest up to $1.1 million of the Members’ capital of the Master Fund tendered by Members of the Master Fund at a price equal to the net asset value on September 30, 2010. Tenders with an estimated value in the amount of $1.0 million were received and accepted by the Master Fund from Members. Members are entitled to receive an estimated payment of $1.0 million on or about 30 days after December 31, 2010.
11.	Line of Credit
	The Master Fund has a line of credit with Boston Private Bank & Trust Company. The Master Fund pays an annual facility fee to Boston Private Bank & Trust Company and interest equal to one quarter of one percent of the amount of the facility outstanding. For the six-month period ended September 30, 2010, the Master Fund had no borrowings outstanding.
12.	Subsequent Events
	The Funds have evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued. Based on this evaluation, no adjustments were required to the financial statements as of September 30, 2010.

38

PNC Absolute Return Funds

Other Information (Unaudited)
September 30, 2010

Portfolio Holdings Disclosure

The Funds file their complete schedules of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q within sixty days after the end of the period. The Funds’ Forms N-Q are available on the Commission’s web site at http://www.sec.gov, and may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Proxy Voting Policies and Procedures

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities, as well as information relating to how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, is available (i) without charge, upon request, by calling 1-800-239-0418; and (ii) on the Commission’s website at http://www.sec.gov.

39

Manager and Administrator
PNC Capital Advisors, LLC
Two Hopkins Plaza
Baltimore, Maryland 21201

Adviser
Ramius Alternative Solutions LLC
599 Lexington Avenue, 19^th Floor
New York, NY 10020

Sub-Administrator
BNY Mellon Investment Servicing (US) Inc.
400 Bellevue Parkway
Wilmington, DE 19809

Legal Counsel
Ropes & Gray LLP
Prudential Tower
800 Boylston Street
Boston, MA 02199-3600

Custodian
PFPC Trust Company
8800 Tinicum Boulevard, 4^th floor
Philadelphia, Pennsylvania 19153

40

Item 2. Code of Ethics.

Not applicable.

Item 3. Audit Committee Financial Expert.

Not applicable.

Item 4. Principal Accountant Fees and Services.

Not applicable.

Item 5. Audit Committee of Listed registrants.

Not applicable.

Item 6. Investments.

(a)	Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.
(b)	Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

There has been no change, as of the date of this filing, in any of the portfolio managers identified in response to paragraph (a)(1) of this Item in the registrant’s most recently filed annual report on Form N-CSR.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Registrant Purchases of Equity Securities

Period (Valuation Date)	Amount Purchased
June 30, 2010	$	1,502,491	1

¹ On February 26, 2010, the Registrant offered to purchase in cash an amount of Interests or portions of Interest up to $1.5 million of Members’ capital tendered by Members of the Fund at a price equal to the net asset value at June 30, 2010. The offer to purchase expired on March 30, 2010.

Item 10. Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11. Controls and Procedures.

(a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1)	Not applicable.
(a)(2)	Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(a)(3)	Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons.
(b)	Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(registrant) PNC Absolute Return TEDI Fund LLC

By (Signature and Title)*	/s/ Kevin A. McCreadie
	Kevin A. McCreadie, President
	(principal executive officer)

Date November 23, 2010

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*	/s/ Kevin A. McCreadie
	Kevin A. McCreadie, President
	(principal executive officer)

Date November 23, 2010

By (Signature and Title)*	/s/ John Kernan
	John Kernan, Treasurer
	(principal financial officer)

Date November 23, 2010

^*   Print the name and title of each signing officer under his or her signature.

EX-99.CERT

Exhibit 99.CERT

Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the
Sarbanes-Oxley Act

I, Kevin A. McCreadie, certify that:

1. I have reviewed this report on Form N-CSR of PNC Absolute Return TEDI Fund LLC;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 23, 2010	/s/ Kevin A. McCreadie
	Kevin A. McCreadie, President
	(principal executive officer)

Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the
Sarbanes-Oxley Act

I, John Kernan, certify that:

1. I have reviewed this report on Form N-CSR of PNC Absolute Return TEDI Fund LLC;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 23, 2010	/s/ John Kernan
	John Kernan, Treasurer
	(principal financial officer)

EX-99.RULE23C1

Exhibit 99.Rule23C1

THE OFFER TO PURCHASE

PNC ABSOLUTE RETURN TEDI FUND LLC
c/o UMB Fund Services
803 W. Michigan St. Ste A
Milwaukee, Wisconsin 53233

OFFER TO PURCHASE INTERESTS
DATED FEBRUARY 26, 2010

THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT
5:00 P.M., EASTERN TIME, ON MARCH 30, 2010,
UNLESS THE OFFER IS EXTENDED

To the Members of PNC Absolute Return TEDI Fund LLC:

     PNC Absolute Return TEDI Fund LLC, a closed-end, non-diversified management investment company organized as a Delaware limited liability company (the “Fund”), is offering to purchase for cash on the terms and conditions set forth in this Offer to Purchase and the related Letter of Transmittal (which together constitute the “Offer”) up to $1.5 million of the Fund’s Interest tendered by members of the Fund (“Members”) at a price equal to the net asset value as of June 30, 2010. (As used in this Offer, the term “Interest” or “Interests” as the context requires, shall refer to the Member’s limited liability company interests in the Fund and portions thereof representing beneficial interests in the Fund.)

     The Offer is being made to all Members and is not conditioned on any minimum amount of Interests being tendered, but is subject to certain conditions described below. Interests are not traded on any established trading market and are subject to strict restrictions on transferability pursuant to the Fund’s Limited Liability Company Agreement amended and restated as of June 30, 2006 and amended as of October 5, 2007 (the “LLC Agreement”).

     Members should realize that the value of the Interests tendered in the Offer likely will change between the last calculation of net asset value on December 31, 2009 and June 30, 2010, when the value of the Interests tendered to the Fund will be determined for purposes of calculating the purchase price of such Interests. Members tendering their Interests should also note that they will remain Members in the Fund, with respect to the Interests tendered and accepted for purchase by the Fund, through June 30, 2010, the valuation date of the Offer when the net asset value of their Interests is calculated. Any tendering Members who wish to obtain the most current estimated net asset value of their Interests should contact the Fund, at the telephone number or address set forth below, Monday through Friday, except holidays, during normal business hours of 8:30 a.m. to 5:00 p.m. (Eastern Time).

     Members desiring to tender all or any portion of their Interests in accordance with the terms of the Offer should complete and sign the attached Letter of Transmittal and mail or fax it to the Fund in the manner set forth below.

IMPORTANT

None of the Fund, its Manager, its Adviser or its Board of Directors makes any recommendation to any Member as to whether to tender or refrain from tendering interests. Members must make their own decisions about whether to tender interests, and, if they choose to do so, the portion of their interests to tender.

Because each Member’s investment decision is a personal one, based on each Member’s financial circumstances, no person has been authorized to make any recommendation on behalf of the Fund as to whether any Members should tender Interests pursuant to the Offer. No person has been authorized to give any information or to make any representations in connection with the Offer other than those contained herein or in The Letter of Transmittal. If given or made, such recommendation and such information and representations must not be relied on as having been authorized by the Fund.

This transaction has not been approved or disapproved by the Securities and Exchange Commission nor has the Securities and Exchange Commission or any State Securities Commission passed on the fairness or merits of such transaction or on the accuracy or adequacy of the information contained in this document. Any representation to the contrary is unlawful.

Questions, requests for assistance and requests for additional copies of the Offer may be directed to:

PNC Absolute Return TEDI Fund LLC
c/o UMB Fund Services
803 W. Michigan St. Ste A
Milwaukee, Wisconsin 53233

Phone: (800) 239-0418
Fax: (816) 860-3140

TABLE OF CONTENTS

SUMMARY TERM SHEET			1
	1.	BACKGROUND AND PURPOSE OF THE OFFER	2
	2.	OFFER TO PURCHASE AND PRICE	3
	3.	AMOUNT OF TENDER	4
	4.	PROCEDURE FOR TENDERS	4
	5.	WITHDRAWAL RIGHTS	5
	6.	PURCHASES AND PAYMENTS	5
	7.	CERTAIN CONDITIONS OF THE OFFER	6
	8.	CERTAIN INFORMATION ABOUT THE FUND	7
	9.	CERTAIN FEDERAL INCOME TAX CONSEQUENCES	7
	10.	MISCELLANEOUS	8

SUMMARY TERM SHEET

     This Summary Term Sheet highlights certain information concerning this Offer. To understand the Offer fully and for a more complete discussion of the terms and conditions of the Offer, please read carefully this entire Offer to Purchase and the related Letter of Transmittal. Section references are to this Offer to Purchase.

• As stated in the LLC Agreement and Prospectus, the Fund will purchase your Interests in the Fund at their net asset value (that is, the value of the Fund’s assets minus its liabilities, multiplied by the proportionate interest in the Fund you desire to redeem). The Offer will remain open until 5:00 p.m., Eastern Time, on March 30, 2010 unless the Offer is extended (the “Expiration Date”). The net asset value will be calculated for this purpose on June 30, 2010 (the “Valuation Date”). The Fund reserves the right to adjust the Valuation Date to correspond with any extension of the Offer.

• The Fund reserves the right to cancel, extend, amend or postpone the Offer at any time before 5:00 p.m., Eastern Time, on March 30, 2010 subject to conditions discussed in Section 7. Also note that although the Offer expires on March 30, 2010, you will remain a Member of the Fund with respect to the Interests you tendered that are accepted for purchase by the Fund through June 30, 2010, when the net asset value of your Interests is calculated.

• You may tender all of your Interests, a portion of your Interests defined as a specified dollar amount, or a portion of your Interests above the minimum required capital account balance of at least $50,000. If you tender only a portion of your Interests, you must maintain a capital account balance of at least $50,000 after giving effect to the amount repurchased by the Fund. The Fund reserves the right to reduce the amount you tender or to purchase your entire Interest in the Fund if the purchase would cause your capital account to have less than the required minimum balance.

• If the Fund accepts your tender then the Fund will give you a non-interest bearing and non-transferable promissory note (the “Promissory Note”) promptly after the Expiration Date, that entitles you to be paid an amount equal to the value, determined as of the Valuation Date, of the repurchased Interests.

• The Promissory Note will entitle you to an initial payment that will be in an amount equal to at least 90% of the unaudited net asset value of the purchased Interest, determined as of the Valuation Date (the “Initial Payment”). The Initial Payment will be made as of the later of (1) 30 days after the Valuation Date, or (2) if PNC Absolute Return TEDIMaster Fund LLC (the “Master Fund”), the investment company in which the Fund invests, has requested withdrawal of its capital from any investment funds in order to fund the purchase of Interests, within 10 business days after the Master Fund has received at least 90% of the aggregate amount withdrawn by the Master Fund from the investment funds.

• The Promissory Note will also entitle you to a second and final payment equal to (a) the net asset value of the purchased Interest determined as of the Valuation Date as it may be adjusted based upon the results of the annual audit of the Fund’s financial statements for the fiscal year ending March 31, 2011, minus (b) the Initial Payment. The Post Audit Payment, if any, will be made promptly after the completion of the Fund’s annual audit for its fiscal year ending March 31, 2011 (which it expects will be completed 60 days after the fiscal year end).

• If the Fund accepts the tender of all or a portion of your Interest, payments will generally be made in cash equal to the value of the Interests repurchased, however, the Fund may under certain limited circumstances pay all or a portion of the amounts due by an in-kind distribution of securities on a pro rata basis based on the aggregate net asset value of tendered Interests.

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• Following this summary is a formal notice of the Fund’s offer to purchase your Interests. If you desire to tender all or any portion of your Interest for purchase, you must do so by 5:00 p.m., Eastern Time, on March 30, 2010, the expected expiration date of the Offer. Until that time, you have the right to change your mind and withdraw any tender of your Interests.

• If you would like the Fund to purchase your Interests, you should (i) mail the Letter of Transmittal (enclosed with the Offer) to the Fund, c/o UMB Fund Services, 803 W. Michigan St. Ste A, Milwaukee, Wisconsin 53233; or (ii) fax it to the Fund at (816) 860-3140. In either case, the Letter of Transmittal must be received before 5:00 p.m., Eastern Time, on March 30, 2010. If you fax the Letter of Transmittal, you must also mail the original Letter of Transmittal to the Fund promptly after you fax it (although the original does not have to be received before 5:00 P.M., Eastern Time, on March 30, 2010). Of course, the value of your Interests likely will change between December 31, 2009 (the last time net asset value was calculated) and June 30, 2010, when the value of your investment will be determined for purposes of calculating the purchase price for Interests.

• If you would like to obtain the most current estimated net asset value of your Interests, which the Fund calculates monthly based upon the information it receives from the manager of the investment company in which the Fund invests, you may call (800) 239-0418 Monday through Friday, except holidays, during normal business hours of 8:30 a.m. to 5:00 p.m., Eastern Time, or write to the address listed above.

1. BACKGROUND AND PURPOSE OF THE OFFER.

     The purpose of the Offer is to provide liquidity to Members who hold Interests in the Fund, as contemplated by and in accordance with the procedures set forth in the Fund’s LLC Agreement and Prospectus.

     Because there is no secondary trading market for Interests, and transfers of Interests are prohibited without prior approval of the Fund, the Board of Directors of the Fund has determined, after consideration of various matters, including but not limited to those set forth in the LLC Agreement, that the Offer is in the best interests of Members in order to provide liquidity for Interests as contemplated in the LLC Agreement. The Fund intends to consider the continued desirability of making an offer to purchase Interests quarterly, but the Fund is not required to make any such offer.

     The purchase of Interests pursuant to the Offer will have the effect of increasing the proportionate interest in the Fund of Members who do not tender Interests. Members who retain their Interests may be subject to increased risks due to the reduction in the Fund’s aggregate assets resulting from payment for the Interests tendered. These risks include the potential for greater volatility due to decreased diversification. However, the Fund believes that this result is unlikely given the nature of the Fund’s investment program. A reduction in the aggregate assets of the Fund may result in Members that do not tender Interests bearing higher costs to the extent that certain expenses borne by the Fund are relatively fixed and may not decrease if assets decline.

     The Fund invests substantially all its assets in the Master Fund, a separate closed-end, non-diversified management investment company with the same investment objective as the Fund. All portfolio investments for the Fund are made at the Master Fund level. This structure is sometimes called

2

a “master/feeder” structure. The Master Fund is simultaneously making a concurrent tender offer to the Fund to repurchase interests in the Master Fund at least equivalent in value to the value of the Interests that the Fund is offering to repurchase. The Fund cannot make a repurchase offer larger than the repurchase offer made by the Master Fund.

     PNC Investment Corp., an affiliate of the Fund’s manager, PNC Capital Advisors, LLC (the “Manager”), is a direct Interest holder of the Fund. As of December 31, 2009, PNC Investment Corp., held 82.75% of the Fund’s net asset value. PNC Investment Corp. has informed the Company that it intends to tender a portion of its Interests in response to the Offer but that, if necessary, it will withdraw a portion of the amount tendered to allow any other Member that tenders its Interests to participate fully in the Offer.

     The Fund’s Offer is made to all its Members on the same terms, including affiliates of the Manager. If the amount of Interests duly tendered to the Fund prior to the expiration of the Offer exceeds $1.5 million of the Fund’s Interest as of June 30, 2010, the Valuation Date, then the Fund will in its sole discretion either (a) accept the additional Interests; (b) extend the Offer, if necessary, and increase the amount of Interests that the Fund is offering to purchase to an amount it believes sufficient to accommodate the excess Interests tendered as well as any Interests tendered during the extended Offer; or (c) accept Interests tendered on or before the Expiration Date for payment on a pro rata basis based on the aggregate net asset value of tendered Interests. The Fund generally will attempt to purchase those Interests tendered unless the aggregate value of those Interests tendered exceed $1.5 million on the Valuation Date.

     Interests that are tendered to the Fund in connection with this Offer will be retired, although the Fund will issue new Interests from time to time as set forth in its Prospectus.

     The tender of Interests by a Member will not affect the record ownership of such Member for purposes of voting or entitlement to any distributions payable by the Fund unless and until such Interests are purchased. Although the Offer expires on March 30, 2010, a Member remains a Member of the Fund with respect to the Interests tendered that are accepted for purchase through June 30, 2010, the Valuation Date, when the net asset value of the Interests is calculated and retains all rights in the Member’s tendered Interest, including voting rights, until the Valuation Date.

2. OFFER TO PURCHASE AND PRICE.

     The Fund will, on the terms and subject to the conditions of the Offer, purchase up to $1.5 million of the Fund’s Interests that are properly tendered by Members and not withdrawn (in accordance with Section 5 below) prior to 5:00 p.m., Eastern Time, on March 30, 2010. The Fund reserves the right to extend, amend or cancel the Offer as described in Sections 3 and 7 below. The value of the Interests tendered for purchase will be the net asset value of the Fund divided by the number of Interests outstanding on June 30, 2010, the Valuation Date, payable as set forth in Section 6. The Fund reserves the right to adjust the Valuation Date to correspond with any extension of the Offer.

     There is no established trading market for the Interests of the Fund, and the value of Interests at any particular time is based on the net asset value of the Fund at that time. Members may obtain monthly net asset value information, which the Fund calculates based upon the information it receives from the Master Fund in which the Fund invests, until the expiration of the Offer by contacting the Fund at the telephone numbers or address set forth on page 2, Monday through Friday, except holidays, during normal business hours of 8:30 a.m. to 5:00 p.m. Eastern Time.

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3. AMOUNT OF TENDER.

     Subject to the limitations set forth below, Members may tender their entire Interest or, alternatively, request a specific dollar amount or that a percentage of their Interest be purchased. A Member who tenders for purchase only a portion of such Member’s Interest shall be required to maintain a minimum capital account balance of at least $50,000 after giving effect to the amount repurchased by the Fund. If a Member’s tender of an amount less than all of its Interests causes the Member’s capital account balance to fall below the required minimum, the Fund reserves the right to reduce the amount to be purchased from such Member so that the required minimum balance is maintained or to purchase the Member’s entire Interest. The Offer is being made to all Members and is not conditioned on any minimum amount of Interests being tendered.

     If the amount of Interests that is properly tendered pursuant to the Offer and not withdrawn pursuant to Section 5 below is less than or equal to $1.5 million of the Fund’s Interest as of the Valuation Date (or such greater amount as the Fund may elect to purchase pursuant to the Offer), the Fund will, on the terms and subject to the conditions of the Offer, purchase all of the Interests so tendered unless the Fund elects to cancel or amend the Offer, or postpone acceptance of tenders made pursuant to the Offer, as provided in Section 7 below. If the amount of Interests duly tendered to the Fund prior to the expiration of the Offer and not withdrawn pursuant to Section 5 below exceeds $1.5 million of the Fund’s Interest as of the Valuation Date, the Fund may in its sole discretion either (a) accept the additional Interests; (b) extend the Offer, if necessary, and increase the amount of Interests that the Fund is offering to purchase to an amount it believes sufficient to accommodate the excess Interests tendered as well as any Interests tendered during the extended Offer; or (c) accept Interests tendered on or before the Expiration Date for payment on a pro rata basis based on the aggregate net asset value of tendered Interests. The Offer may be extended, amended or canceled in various other circumstances described in Section 7 below.

4. PROCEDURE FOR TENDERS.

     Members wishing to tender Interests pursuant to the Offer should mail a completed and executed Letter of Transmittal to the Fund at the address set forth on page 2 hereof, or fax a completed and executed Letter of Transmittal using the fax number set forth on page 2 hereof. The completed and executed Letter of Transmittal must be received, either by mail or by fax, no later than 5:00 p.m., Eastern Time, on March 30, 2010 unless the Offer is extended. Please note that, as set forth in the Letter of Transmittal, if a Member invests through a financial intermediary, the intermediary may require alternate instructions. Members should contact their intermediary for more information.

     The Fund recommends that all documents be submitted via certified mail, return receipt requested, or by facsimile transmission with confirmation of successful transmission. A Member choosing to fax a Letter of Transmittal must also send or deliver the original completed and executed Letter of Transmittal promptly thereafter. Members wishing to confirm receipt of a Letter of Transmittal may contact the Fund at the address or telephone number set forth on page 2 hereof. The method of delivery of any documents is at the election and complete risk of the Member tendering Interests including, but not limited to, the failure to receive any Letter of Transmittal or other document submitted by facsimile transmission. All questions as to the validity, form, eligibility (including time of receipt) and acceptance of tenders will be determined by the Fund, in its sole discretion, and such determination shall be final and binding. The Fund reserves the absolute right to reject any or all tenders determined by it not to be in appropriate form or the acceptance of or payment for which would, in the opinion of counsel for

4

the Fund, be unlawful. The Fund also reserves the absolute right to waive any of the conditions of the Offer or any defect in any tender with respect to any particular Interest or any particular Member, and the Fund’s interpretation of the terms and conditions of the Offer will be final and binding. Unless waived, any defects or irregularities in connection with tenders must be cured within such time as the Fund shall determine. Tenders will not be deemed to have been made until the defects or irregularities have been cured or waived. Neither the Fund, the Manager nor the Board of Directors shall be obligated to give notice of any defects or irregularities in tenders, nor shall any of them incur any liability for failure to give such notice.

5. WITHDRAWAL RIGHTS.

     Any Member tendering Interests pursuant to this Offer may withdraw the tender at any time prior to 5:00 p.m., Eastern Time, on March 30, 2010 (or if the Offer is extended, before any later Expiration Date). To be effective, any notice of withdrawal of a tender must be timely received at the address or fax numbers set forth on page 2 hereof. A form to give notice of withdrawal of a tender is available by calling the Fund at the telephone number indicated on page 2 hereof. All questions as to the form and validity (including time of receipt) of notices of withdrawal of a tender will be determined by the Fund, in its sole discretion, and such determination shall be final and binding. Interests subject to a properly withdrawn tender shall not thereafter be deemed to be tendered for purposes of the Offer. However, withdrawn Interests may be tendered again prior to the Expiration Date by following the procedures described in Section 4.

6. PURCHASES AND PAYMENTS.

     For purposes of the Offer, the Fund will be deemed to have accepted Interests that are tendered when it gives written notice to the tendering Member of its election to purchase such Interest.

     As set forth in Section 3, Members may tender all their Interests or a portion of their Interests. The amount a tendering Member will be paid will equal the value of the Interests tendered determined as of the Valuation Date and will be based upon the net asset value of the Fund’s assets as of that date, after giving effect to all allocations to be made as of that date. Members requesting a specific dollar amount will have the appropriate number of Interests purchased by the Fund from the Member’s capital account to satisfy the requested amount based upon the value of an Interest on the Valuation Date.

     If a Member tenders only a portion of its Interests, the Member will be required to maintain a capital account balance equal to $50,000 after giving effect to the amount repurchased by the Fund. If a Member’s tender of an amount less than all of its Interests causes the Member’s capital account balance to fall below the required minimum, the Fund reserves the right to reduce the amount to be purchased from such Member so that the required minimum balance is maintained or to purchase the Member’s entire Interest.

     If a Member’s tender is accepted, payment of the purchase amount will consist of the Promissory Note, a non-interest bearing, non-transferable promissory note. The Promissory Note will be mailed directly to the tendering Member after the Expiration Date. The Promissory Note will entitle the Member to receive the Initial Payment in an amount equal to at least 90% of the unaudited net asset value of the Interest tendered and accepted for purchase by the Fund as of the Valuation Date. Payment of this amount will be made as of the later of 30 days after the Valuation Date, or if the Master Fund has requested withdrawals of its capital from any of the investment funds in order to fund the purchase of Interests, 10 business days after the Master Fund has received at least 90% of the aggregate amount withdrawn by the Master Fund from the investment funds. The Promissory Note will also entitle the Member to receive the Post-Audit Payment, a contingent payment equal to the excess, if any, of (a) the

5

value of the purchased Interest determined as of the Valuation Date, as it may be adjusted based upon the results of the next annual audit of the Fund’s financial statements for its fiscal year ending March 31, 2011 (which is expected to be completed 60 days after the fiscal year end), minus (b) the Initial Payment. The Post Audit Payment will be made promptly after the completion of the Fund’s annual audit.

     Although the Fund has retained the option to pay all or a portion of the purchase price by distributing securities in-kind as set forth in its LLC Agreement, the purchase price will be paid entirely in cash except in the unlikely event that the Fund determines that the distribution of securities is necessary to avoid or mitigate any adverse effect of the Offer on the remaining Members. It is expected that cash payments for Interests acquired pursuant to the Offer, which will not exceed $1.5 million of the Fund’s Interests as of the Valuation Date (unless the Fund elects to purchase a greater amount), will be derived from: (a) cash on hand and (b) withdrawals of capital from the Master Fund in which the Fund invests.

     If the Fund has elected to accept Interests tendered on a pro rata basis, as described in Section 1 and 3 above, the interest not accepted for purchase must be tendered in response to a future offer by the Fund if the Member wishes to have them purchased by the Fund.

7. CERTAIN CONDITIONS OF THE OFFER.

     The Fund reserves the right, at any time and from time to time, to extend the period of time during which the Offer is pending by notifying Members of such extension. During any such extension, all Interests previously tendered and not withdrawn will remain subject to the Offer. The Fund also reserves the right, at any time and from time to time, up to and including acceptance of tenders pursuant to the Offer, to: (a) cancel the Offer in the circumstances set forth in the following paragraph and in the event of such cancellation not to purchase or pay for any Interests tendered pursuant to the Offer; (b) amend the Offer; and (c) postpone the acceptance of Interests. If the Fund determines to amend the Offer or to postpone the acceptance of Interests tendered, it will, to the extent necessary, extend the period of time during which the Offer is open as provided above and will promptly notify Members.

     The Fund may cancel the Offer, amend the Offer or postpone the acceptance of tenders made pursuant to the Offer if: (a) the Fund would not be able to liquidate interests in the investment funds in a manner that is orderly and consistent with the Fund’s investment objectives and policies in order to purchase Interests tendered pursuant to the Offer; (b) there is, in the judgment of the Fund’s Board of Directors, any (i) legal action or proceeding instituted challenging the Offer or otherwise materially adversely affecting the Fund, (ii) declaration of a banking moratorium by federal or state authorities or any suspension of payment by banks in the United States that is material to the Fund, (iii) limitation imposed by federal or state authorities on the extension of credit by lending institutions, (iv) suspension of trading on any organized exchange or over-the-counter market where the Fund has a material investment, (v) commencement of war, armed hostilities or other international or national calamity directly or indirectly involving the United States that is material to the Fund (the Fund acknowledges the military actions involving the United States in Iraq and Afghanistan and has determined, as of the date hereof, that such actions are not material to the Partnership), (vi) material decrease in the net asset value of the Fund from the net asset value of the Fund as of commencement of the Offer, or (vii) other event or condition that would have a material adverse effect on the Fund or its Members if Interests tendered pursuant to the Offer were purchased; or (c) the Fund’s Board of Directors determines that it is not in the best interests of the Fund to purchase Interests pursuant to the Offer. There can be no assurance that the Fund will exercise its right to extend, amend or cancel the Offer or to postpone acceptance of tenders pursuant to the Offer.

6

8. CERTAIN INFORMATION ABOUT THE FUND.

     The Fund is registered under the Investment Company Act of 1940, as amended, as a closed-end management investment company. It is organized as a Delaware limited liability company and the principal office of the Fund is located at Two Hopkins Plaza, Baltimore, Maryland. The Fund’s telephone number is (800) 239-0418. Interests are not traded on any established trading market and are subject to strict restrictions on transferability pursuant to the LLC Agreement.

     The Fund does not have any plans, proposals or negotiations that relate to or that the Fund anticipates would result in: (a) the acquisition by any person of additional Interests (other than routine sales as disclosed in the Fund’s registration statement); (b) any extraordinary transaction, such as a merger, reorganization or liquidations, involving the Fund; (c) any purchase, sale or transfer of a material amount of assets of the Fund; (d) any material change in the present dividend rate or policy, or indebtedness or capitalization of the Fund; (e) any change in the present board of directors or management of the Fund, including but not limited to, any plans or proposal to change the number of directors or to change any material term of the employment contract of any executive officer; (f) a sale or transfer of a material amount of assets of the Fund (other than as the Fund determines may be necessary or appropriate to finance any portion of the purchase price for Interests acquired pursuant to this Offer to Purchase or in connection with ordinary portfolio transactions of the Fund); (g) any other material change in the Fund’s structure or business, including any plans or proposals to make any changes in its investment policy for which a vote would be required by Section 13 of the 1940 Act, as amended; (h) any class of equity securities of the Fund to be delisted from a national securities exchange or cease to be authorized to be quoted in an automated quotation system operated by a national securities association; (i) any class of equity securities of the Fund becoming eligible for termination of registration under Section 12 (g) (4) of the Securities Exchange Act of 1934 (the “1934 Act”); (j) the suspension of the Fund’s obligation to file reports under Section 15 (d) of the 1934 Act; (k) the acquisition by any person of additional securities of the Fund or the disposition of securities of the Fund other than as set forth in the Fund’s registration statement; or (l) any changes in the Fund’s governing instruments or other actions that could impede the acquisition of control of the Fund.

     Man-Glenwood Lexington TEI, LLC, or an affiliate thereof (“MG”), a non-affiliated investment company, has filed a patent application relating to a structure that interposes a Cayman Islands entity between a registered investment company and an underlying master fund (the “Patent Application”). The Patent Application was published on February 2, 2006. In the event that the Patent Application is granted and it is determined that the master-feeder structure of which the Fund forms a part infringes on the MG patent, the Master Fund’s and/or the Fund’s Board of Directors may determine to enter into a licensing agreement pursuant to which the master-feeder structure may continue to operate without infringing on the MG patent. Such a licensing agreement will likely impose additional costs, in the form of licensing fees and other costs, on the Master Fund, the Fund and the Members.

9. CERTAIN FEDERAL INCOME TAX CONSEQUENCES.

     The following discussion is a general summary of the federal income tax consequences of the purchase of Interests by the Fund from Members pursuant to the Offer. Members should consult their own tax advisors for a complete description of the tax consequences to them of a purchase of their Interests by the Fund pursuant to the Offer.

     In general, a Member from whom Interests are purchased by the Fund will be treated as receiving a distribution from the Fund. Such Member generally will not recognize income or gain as a result of the purchase, except to the extent (if any) that the amount of consideration received by the Member exceeds such Member’s then adjusted tax basis in such Member’s Interests. A Member’s basis in such Member’s Interests will be reduced (but not below zero) by the amount of consideration received by the Member from the Fund in connection with the purchase of such Interest. A Member’s basis in such Member’s

7

Interests will be adjusted for income, gain or loss allocated (for tax purposes) to such Member for periods prior to the purchase of such Interest. Cash distributed to a Member in excess of the adjusted tax basis of such Member’s Interest is taxable as capital gain or ordinary income, depending on the circumstances. If the Fund purchases a Member’s entire Interest, the Member may recognize a loss, but only to the extent that the amount of consideration received from the Fund is less than the Member’s then adjusted tax basis in such Member’s Interest.

10. MISCELLANEOUS.

     The Offer is not being made to, nor will tenders be accepted from, Members in any jurisdiction in which the Offer or its acceptance would not comply with the securities or other laws of such jurisdiction. The Fund is not aware of any jurisdiction in which the Offer or tenders pursuant thereto would not be in compliance with the laws of such jurisdiction. However, the Fund reserves the right to exclude Members from the Offer in any jurisdiction in which it is asserted that the Offer cannot lawfully be made. The Fund believes such exclusion is permissible under applicable laws and regulations, provided the Fund makes a good faith effort to comply with any state law deemed applicable to the Offer.

     The Fund has filed an Issuer Tender Offer Statement on Schedule TO with the Securities and Exchange Commission, which includes certain information relating to this Offer. A free copy of such statement may be obtained by contacting the Fund at the address and telephone number set out on page 2 hereof or from the Securities and Exchange Commission’s internet web site, http://www.sec.gov. A copy may be inspected and copied at, and for a fee, may be obtained by mail from, the public reference office of the Securities and Exchange Commission at 450 Fifth Street, N.W., Washington, DC 20549.

8

EX-99.906CERT

Exhibit 99.906CERT

Certification Pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the
Sarbanes-Oxley Act

I, Kevin A. McCreadie, President of PNC Absolute Return TEDI Fund LLC (the “Registrant”), certify that:

1.	The Form N-CSR of the Registrant (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: November 23, 2010	/s/ Kevin A. McCreadie
	Kevin A. McCreadie, President
	(principal executive officer)

I, John Kernan, Treasurer of PNC Absolute Return TEDI Fund LLC (the “Registrant”), certify that:

1.	The Form N-CSR of the Registrant (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: November 23, 2010	/s/ John Kernan
	John Kernan, Treasurer
	(principal financial officer)