Our latest thinking for U.S. tax-aware investors and their advisors.
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
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.
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.
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.
Tax Matters
Can Capital Losses Offset Gains from the Sale of Low-Basis Real Property?
November 1, 2024
In general, capital losses realized on stocks or other assets may offset capital gains, but not ordinary income, from the sale of a property. Therefore, it is important to understand which portion of the gain from the sale would be treated as capital gain and which would be treated as ordinary income.
Tax Matters
Separating the Wheat from the Chaff
October 8, 2024
Investors seeking tax efficiency must look for strategies motivated by a pre-tax investment rationale, otherwise known as “economic substance.”
Tax Matters
Levering Up to Do Good
July 9, 2024
Long/short tax aware strategies can be a win-win for the charitably inclined: larger donations for the charity and larger tax benefits for the donor.
Tax Matters
A 3-for-1 Solution for Concentrated Stock
April 9, 2024
Long/short tax-aware factor strategies may provide the means to offset gains resulting from a transition from a concentrated stock to a diversified portfolio.