The new trend among the rich is “tax alpha,” which is the pursuit of lowering one’s tax bill while generating more profit along the way. It can be traced to a quadrupling of the S&P 500 over the past decade, largely driven by technology stocks. The rally has left many investors with huge gains, often concentrated in a handful of companies.
To diversify those positions without a big tax bill, the wealthy are looking at investment techniques like tax-aware long-short and 351 conversions. Modern techniques and technology have helped wring savings out of century-old provisions in the US tax code.
A Tax Strategy for the Rich Built the World’s Largest Hedge Fund: https://bloom.bg/4pY0APl
Cliff Asness’s AQR supercharged tax-loss harvesting, erasing IRS bills for the wealthiest.
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