Tax Matters
Food for Thought: Tracking Error
October 15, 2025
This piece challenges the notion that all tracking error is bad, comparing it to the idea that all calories are unhealthy. It explains how “rewarded” tracking error—taken in pursuit of alpha—differs from “unrewarded” tracking error, helping investors understand when taking on tracking error can be beneficial for achieving long-term goals.
Tax Matters
The Impact of Liquidation Taxes on the Lifecycle Benefits of Tax-Aware Long-Short Strategies
July 31, 2025
While liquidation taxes may seem like a drawback for TA LS strategies, this analysis shows they typically do not erase the significant tax and performance benefits accumulated over time. Thoughtful unwind planning can further enhance after-tax outcomes.
Tax Matters
Experience Matters: Addressing Five Common Criticisms of Tax Aware Long-Short (TA LS) Strategies
May 27, 2025
This paper addresses five common criticisms of Tax-Aware Long-Short (TA LS) strategies, arguing that most concerns stem from implementation inexperience rather than flaws in the strategy itself. It emphasizes that experienced long-short managers are best positioned to deliver tax-aware benefits without compromising pre-tax alpha.
Journal Article
Are Completion Portfolios Effective for Managing Concentrated Stock Risk?
May 14, 2025
This paper investigates the most effective ways to manage the risk of concentrated stock positions.
Tax Matters
CRUTs, Tax-Aware Strategies, and Concentrated Stock Diversification
April 1, 2025
When implemented well, CRUTs can be a valuable tool, combining wealth preservation with philanthropy. Our latest papers are meant to help investors maximize the benefits of these strategies.
Tax Matters
The Enduring Appeal of Gain Deferral, Part 4
March 19, 2025
Our first post in this series showed the power of deferral for building wealth; our second showed how robust the value of deferral is to changes in future tax rates on capital gains; our third considers whether deferral is still the right choice if an investor is able to find a strategy with a higher expected return. Here, we build on Part 3 by adding a tool investors and advisors increasingly have access to: tax-aware transition.
Working Paper
A Brief Guide to the Mathematics and Taxation of Charitable Remainder Unitrusts
March 18, 2025
We provide a practical guide for financial planners and wealth management professionals on charitable remainder unitrusts (CRUTs).
Working Paper
Combining Charitable Remainder Unitrusts and Tax-Aware Strategies to Diversify Low-Basis Stock
March 18, 2025
We show how combining charitable remainder unitrusts (CRUTs) with tax-aware strategies can help investors diversify low-basis stock and enhance after-tax wealth accumulation. Our findings suggest that investors and their advisors should integrate philanthropy and investment management to optimize wealth preservation and charitable impact.
Tax Matters
The Enduring Appeal of Gain Deferral, Part 3
March 12, 2025
Our first post in this series showed the power of deferral for building wealth, and our second showed how robust the value of deferral is to changes in future tax rates on capital gains. But what if you’re able to find a new investment with a higher expected return?
Tax Matters
Our Research into Tax-Aware Long-Short Investing
January 28, 2025
As the concept of tax-aware long-short investing becomes a mainstay of private wealth planning, we wanted to clearly articulate some core findings of our research, and help parse the jargon of this rapidly growing but sometimes confusing area.