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Quick Takes
Economic Substance Doctrine
March 30, 2026
With tax-aware investing on the rise, identifying strategies with real value has never been more important. This video explores the economic substance doctrine and why strong pre-tax investment logic is essential for sustainable after-tax returns.
Tax Matters
Why More Alpha Can Mean More Tax Benefits
March 19, 2026
In this piece, we discuss how, in tax-aware long-short investing, pre-tax alpha not only enhances returns but can also improve tax outcomes and reduce transition costs.
Working Paper
The Tax Benefits of Pre-Tax Alpha
March 18, 2026
This paper shows that pre-tax alpha may enhance tax benefits in tax-aware long-short strategies by accelerating NAV growth and creating new positions that support loss realization. The result is meaningfully higher after-tax wealth—especially at longer horizons and higher levels of leverage.
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).