Ellington Financial Inc. — Director's Dealing 2011

May 5, 2011

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: Ellington Financial LLC (EFC)
CIK: 0001411342
Period of Report: 2011-05-03

Reporting Person: Vranos Michael W (Director, Co-Chief Investment Officer, 10% Owner)
Reporting Person: VC INVESTMENTS LLC (10% Owner)
Reporting Person: EMG Holdings, L.P. (10% Owner)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2011-05-03	Common shares	J	2639	$0.00	Acquired	2608381	Indirect

Footnotes

F1: The shares were issued in connection with the first quarter 2011 incentive fee payable to Ellington Financial Management LLC ("EFM"), our manager, pursuant to our management agreement.

F2: The shares are owned indirectly by each of Michael W. Vranos ("Mr. Vranos") and VC Investments LLC ("VC"). See footnote (3) below for additional information regarding the ownership of these shares.

F3: Three affiliated hedge funds ("Hedge Funds") own 1,250,000 Common Shares. Each of EMG Holdings, L.P. ("EMGH") and EFM owns 1,335,945 Common Shares and 22,436 Common Shares, respectively, as of the date of this Form 4. Ellington Capital Management, LLC ("ECM") is the general partner of the Hedge Funds. VC is the general partner of EMGH and the managing member of EFM and ECM. Mr. Vranos is the managing member of, and holds a controlling interest in, VC. Mr. Vranos, together with VC and, with respect to 1,335,945 Common Shares, EMGH, share the power to direct the voting and disposition of the Common Shares, and may be regarded as the beneficial owners of the Common Shares owned beneficially or of record by each other.

F4: Each of Mr. Vranos, VC and EMGH disclaims beneficial ownership of any Common Shares owned beneficially or of record by each other except to the extent of it or his pecuniary interest therein.