Now On Demand • 1 CE Credit
Tax-Aware Long-Short: Alpha Comes First! Don't Let the Tax Tail Wag the Dog
Tax-aware long-short has become one of the fastest-growing categories in separate account management. The rise of quants and automation has made these strategies scalable to minimums that weren't possible five years ago, and RIA adoption is accelerating.
But as the space grows, a critical question is getting overlooked: Does the math actually work for your clients? Join Wayne Ferbert, Andy Pratt, and Hannah Sheldon from Burney Advisor Services as they present original research examining every 10-year return window from 2000 through 2025, comparing direct indexing, 130/30 direct indexing, and actively managed 130/30 with alpha at varying levels.
Their conclusion is clear: without alpha, the fees and margin costs often consume most of the tax benefit. Alpha isn't a bonus. It's what makes the strategy worth doing.
What you'll learn:
- Why the tax harvesting part is the easy part, and why the real question advisors should be asking is whether their manager can generate enough alpha to justify the cost
- What 16 rolling 10-year windows of return data show about when 130/30 strategies outperform straight direct indexing, and when they don't
- How direct indexing portfolios ossify in rising markets, why that limits future tax alpha, and how long-short extensions are being used to solve for it
- How alpha compounds differently over time depending on whether it's generated through individual stocks or an actively managed ETF on the long side
- How to evaluate any tax-aware long-short manager before putting clients in, including what questions most advisors aren't asking
On Demand Events
From Lockups to Liquidity: Using 351 Conversions to enter ETFs
At the time of the launch of a new ETF, Section 351 of the IRS Code allows investors to exchange appreciated stocks or ETFs for ETF shares on a tax-deferred basis. Advisors can now use a tool previously limited to family offices & institutions. Come join Brent Sullivan from Tax Alpha Insider as he moderates a discussion on the tax-deferral power of Section 351 conversions. Brent has been a leading voice in this field, and you will want to hear his take on how advisors create tax value for clients.
Long Only Is Lazy: Advisor Use Cases for Tax-Aware Long-Short
Traditional long-only equity strategies may grow wealth, but they often leave material tax advantages on the table. In today’s environment, advisors need tools that help clients grow and optimize their tax exposure. Come join Brent Sullivan from Tax Alpha Insider as he moderates a discussion about Tax Aware Long short investing. Brent has been a leading voice in this field and you will want to hear his take on how advisors create tax value for clients.
Long Only is Lazy: Creating Tax Alpha in Up Markets
Tax-aware long-short has become the fastest-growing category in separate account management, with over $100 billion in net new assets in the last 15 months. If you're running long-only equity strategies for your high-net-worth clients, the question isn't whether to explore this space. It's how far behind you already are. Join Brent Sullivan from Tax Alpha Insider as he moderates a conversation about what's driving this wave of advisor adoption and what it means for your practice. Brent has been a leading independent voice covering tax-aware investing, and he'll bring his frontline perspective on how advisors are creating real tax value for clients.
Tax-Aware Long-Short: Alpha Comes First! Don't Let the Tax Tail Wag the Dog
Tax-aware long-short has become one of the fastest-growing categories in separate account management. The rise of quants and automation has made these strategies scalable to minimums that weren't possible five years ago, and RIA adoption is accelerating. But as the space grows, a critical question is getting overlooked: Does the math actually work for your clients? Join Wayne Ferbert, Andy Pratt, and Hannah Sheldon from Burney Advisor Services as they present original research examining every 10-year return window from 2000 through 2025, comparing direct indexing, 130/30 direct indexing, and actively managed 130/30 with alpha at varying levels. Their conclusion is clear: without alpha, the fees and margin costs often consume most of the tax benefit. Alpha isn't a bonus. It's what makes the strategy worth doing.
Long-Short & 130-30 Resources
