Ownership Submission
FORM 3
 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
  MERCANTILE BANKSHARES CORP
 2. Date of Event Requiring Statement (Month/Day/Year)
06/30/2006		 3. Issuer Name and Ticker or Trading Symbol
Mercantile Absolute Return Fund for Tax-Exempt/Deferred Investors (TEDI) LLC [N/A]
(Last)
(First)
(Middle)
2 HOPKINS PLAZA		 4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director __X__ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
5. If Amendment, Date Original Filed(Month/Day/Year)
(Street)

BALTIMORE, MD 21201		 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security
(Instr. 4)		 2. Amount of Securities Beneficially Owned
(Instr. 4)		 3. Ownership Form: Direct (D) or Indirect (I)
(Instr. 5)		 4. Nature of Indirect Beneficial Ownership
(Instr. 5)
Limited Liability Company Interest (1) $ 135,000 (1) (2) (3)
D (1)
 

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 4)		 2. Date Exercisable and Expiration Date
(Month/Day/Year)		 3. Title and Amount of Securities Underlying Derivative Security
(Instr. 4)		 4. Conversion or Exercise Price of Derivative Security 5. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 5)		 6. Nature of Indirect Beneficial Ownership
(Instr. 5)
Date Exercisable Expiration Date Title Amount or Number of Shares

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
MERCANTILE BANKSHARES CORP
2 HOPKINS PLAZA
BALTIMORE, MD 21201		     X    

Signatures

Mercantile Bankshares Corporation By: /s/ John L. Unger, Secretary 08/22/2006
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 5(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Mercantile Absolute Return Fund for Tax Exempt/Deferred Investors (TEDI) LLC (the ?Company?) is a limited liability company organized under the laws of the State of Delaware and registered under the Investment Company Act of 1940, as amended, as a closed-end, non-diversified management investment company. Each Interest is a percentage of ownership interest in the Company. The value of each Interest is the corresponding percentage of the net asset value of the Company (as more fully set forth in the Company documents available with the Securities and Exchange Commission (?SEC?)). Filer?s Interest has been held directly by Mercantile Bankshares Corporation (?MBC?) since June 30, 2006, which was the effective date of the registration statement filed by the Company with the SEC on June 29, 2006 (the ?Registration Statement?). Filer?s Interest was in exchange for the seed capital that MBC placed into the Company.
(2) Filer?s Interest represented 100% of the outstanding Interests of the Company as of June 30, 2006. However, as a result of subsequent sales of Interest, Filer?s Interest currently represents less than 100% of the outstanding Interests. The percentage interest in the Company held by MBC at a given time is related to the investments made by other investors in the Company and is subject to change when other investors buy or sell Interests. The audited financials attached by reference to the Registration Statement inadvertently state that the seed money Interest was held by and received in exchange for consideration tendered by Mercantile Capital Advisors, Inc., an indirect wholly-owned subsidiary of MBC. In fact, as noted herein, MBC directly paid for and received the Interest.
(3) The Interest held by MBC represented 100% of the Interests outstanding at the conclusion of the transaction.

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