Memories are fresh – 2008 redux? Most likely no, but August 2011 was the 4th worst month ever in the history of hedge fund industry worldwide. The massive global sell‐off and maximum aversion to the risk trade, commodities, high‐beta emerging market equities and Russia‐related assets, was unanticipated by the Investment Advisor. From recent peak to August trough the benchmark MSCI Emerging Markets Europe (MXMU) crashed ‐30.49% and Russian stocks (RTS) were slightly worse ‐31.06%. This resulted in a material performance setback for Diamond Age and the second worst‐ever month (‐26.65%) for the Fund since launch February 2005.