Fox Run Alpha

Fund, L.P.

Fund Investment Objectives

The investment objective of the Fund is to achieve sustainable absolute returns while incurring low risk through implementing various orthogonal quantitative strategies that have been thoroughly back-tested. Broadly speaking, these are market neutral long/short strategies that rely on mathematical algorithms of technical and fundamental indicators to generate buy and sell signals. Emphasis is placed on strategies that seek appreciation or depreciation from common stocks that in the Fund's statistical or mathematical analysis have exhibited pricing irregularities and appear to have the potential for mean reversion or where fundamental and technical data indicates a potential for price continuation. A stock's short-term price performance is compared to similar stocks or their derivatives as observed by various quantitative measures of a technical and/or fundamental nature. The Fund utilizes a highly sophisticated and customized execution platform for its security selection. The holding period for the strategies is short-term, typically ranging from 2-4 days to 2-6 weeks. The Fund intends to use leverage depending on the relative attractiveness of the underlying strategies employed. If the manager determines that on a risk/reward basis a reduction of positions is warranted, a reduction of the leverage is subsequently employed as a method of reducing exposure to the strategy. Similarly, if the risk/reward dictates an increase in the number of positions, increasing employed leverage will be used to increase overall exposure to the strategy. The portfolio will be managed to reduce systematic risk through diversification over a larger group of securities and strategies as much as possible without diluting the performance or the focus of the Fund's efforts. The strategies are research intensive and rely heavily on sophisticated technology and extensive back-testing for verification and implementation. The risk management techniques are in place to optimize risk vs. return through diversification and portfolio rebalancing.