A. Firm Information
Birch Run Investments, LLC (“Birch Run” or the “Advisor”) is a registered investment advisor with the U.S.
Securities and Exchange Commission (“SEC”), which is organized as a Limited Liability Company (“LLC”) under
the laws of the State of Delaware. Birch Run was founded in September 2016 and became a registered
investment advisor in December 2016. Birch Run is owned and operated by David Killian (President and Chief
Compliance Officer). This Disclosure Brochure provides information regarding the qualifications, business
practices, and the advisory services provided by Birch Run.
B. Advisory Services Offered
Birch Run offers investment management and related advisory services to institutional investors, high net worth
individuals, pension plans, and other types of investors (each referred to as a “client”).
Birch Run offers investment solutions via separately managed accounts for its clients. The Advisor offers several
strategies including Core Fixed Income, Intermediate Fixed Income, Intermediate Fixed Income Plus, Tax
Exempt Total Return, Short-Term Fixed Income, Short-Term Fixed Income Plus, Enhanced Cash, and Balanced.
In providing investment advisory services to a client, Birch Run maintains flexible strategies designed to conform
with each client’s individual investment objectives, whether such objectives are total return, current income, or
tax-exempt income. Birch Run provides these services on a discretionary basis and customizes the portfolio
strategy to meet the needs of each client. The client may request to place reasonable restrictions on the types of
investments to be held in their respective portfolio, subject to acceptance by the Advisor.
Birch Run typically constructs fixed income portfolios utilizing domestic investment-grade corporate bonds, U.S.
government and agency securities, and short-term fixed income instruments. The Advisor may also utilize high-
yield corporate bonds, asset-backed securities and other fixed income securities. In certain instances, the
Advisor may also utilize exchange-traded funds (“ETFs”) or mutual funds to represent a particular asset class or
sector. Balanced portfolios are customized based on the needs of each client and also include domestic equity
securities, ETFs, mutual funds and other types of investments, as appropriate for the client. In constructing the
client’s portfolio, the portfolio manager considers, among other factors, the security and credit quality composition
of the relevant benchmark and the composition of similar portfolios in a competitive peer group. Clients may
impose investment restrictions on their account[s] as to which securities may be purchased including types
of
asset, security quality and allocation amounts. Such investment restrictions are established by a mutually agreed
upon written investment policy statement or agreement.
Birch Run’s investment strategies are primarily long-term focused, but the Advisor may buy, sell or re-allocate
positions that have been held less than one year to meet the objectives of the client, liquidity needs and/or due to
market conditions. Birch Run will construct, implement and monitor the portfolio to ensure it meets the goals,
objectives, circumstances, and risk tolerance agreed to by the client. Birch Run evaluates and selects
investments for inclusion in client portfolios only after applying its internal due diligence process. Birch Run may
recommend specific positions to increase sector or asset class weightings. The Advisor may recommend
employing cash positions as a possible hedge against market movement. Birch Run may recommend selling
positions for reasons that include, but are not limited to, harvesting capital gains or losses, business or sector risk
exposure to a specific security or class of securities, overvaluation or overweighting of the position[s] in the
portfolio, change in risk tolerance of client, generating cash to meet client needs, or any risk deemed
unacceptable for the client’s risk tolerance.
All client assets will be managed within their designated brokerage account or pension account, pursuant to the
client investment management agreement. Please refer to Item 12 below.
Page 5
C. Client Account Management
Prior to engaging Birch Run to provide investment management services, each client is required to enter into an
investment management agreement with the Advisor that defines the terms, conditions, authority and
responsibilities of the Advisor and the client. These services may include:
• Establishing an Investment Strategy – Birch Run, in connection with the client, will design and implement
an investment strategy that seeks to achieve the unique goals of the client, which may be described in an
Investment Policy Statement (“IPS”) and other communications.
• Portfolio Construction – Birch Run will develop a portfolio for the client that is intended to meet the stated
goals and objectives of the client.
• Investment Management and Supervision – Birch Run will provide investment management and ongoing
oversight of the client’s relationship’s investment portfolio.
D. Wrap Fee Programs
Birch Run does not offer or participate in any wrap fee programs.
E. Assets Under Management
As of December 31, 2023, Birch Run manages $270,026,467 in assets. Clients may request more current
information at any time by contacting the Advisor.