Fox Run Management LLC

Fox Run Management is an SEC-registered investment adviser that manages pooled hedge-fund vehicles on a fully discretionary basis, reporting approximately $695.8 million in regulatory assets under management. The firm serves two private-fund vehicles — its flagship quantitative hedge fund and a segregated portfolio of another private fund via a subadvisory arrangement — and does not advise individual retail clients.

The firm employs computer-driven, quantitative strategies, including algorithmic trading and statistical arbitrage, developed through back-testing and simulations, with generally short holding periods, high turnover, use of leverage and short selling. Trades are executed through a prime broker and broker-provided “algos,” with U.S. exchange trades allocated on a pari passu basis via an omnibus account while certain European exchange activity is conducted solely for the segregated portfolio.

Several structural features distinguish the firm from many peers: it is controlled by a single principal who is also economically connected to affiliated entities that receive performance-based allocations, and the adviser is deemed to have custody of its flagship fund due to that affiliation. The firm has longstanding operations dating to the late 1990s, manages accounts side-by-side with omnibus allocations, and receives execution and research benefits from its prime broker while not participating in formal soft-dollar arrangements.