Could tax-aware long/short power additional diversification?

How does portfolio design change if tax friction is solved?

Taxable wealth: what I’m reading

• Matt Levine: Floor Traders Want Their Seats Back (no dividend ETF)

• AQR (2017): Taxes, Shorting, and Active Management

• IRS: Rev. Rul. 2003-7 (variable prepaid forwards)

• Welch, Quisenberry (2005): Increasing the Tax-Effectiveness of Concentrated Wealth Strategies (variable prepaid forwards)

• AQR (2023): Beyond Direct Indexing: D…