Taxes mess up the endowment model

Institutional managers are always surprised by the complexity of private wealth

What I’m reading…

• Tax management

  • Aperio: What Would Yale Do If It Were Taxable?

  • AQR: The Impact of Liquidation Taxes on the Lifecycle Benefits of Tax-Aware Long-Short Strategies

  • Parametric: Active Tax Loss Harvesting in Fixed Income: Checking In at Midyear

  • BlackRock/Aperio: Long/short extensions diversify concentrated stock tax-neutrally

  • Dimensional: Another Hidden Cost for Index Funds: Index Share Changes

  • MSCI: The Cost of Access: Understanding Price Efficiency of ADRs

  • Vest: Synthetic Borrow (not an ad!)

  • Alpha Architect: How Buffer ETFs Promise to Protect You (and Why They Can’t Do It All)

• Gambling and collecting

  • Reuters: Polymarket receives green signal from CFTC for US return

  • Foolish Baseball: Baseball Is Ruining Gambling

  • Reddit: A Full Breakdown of Pokémon's Coming Correction

  • Editorial: I’m not sure what role, if any, advisers should play in their clients’ gambling and collecting habits. Both have some weird tax quirks. My only comment is that they are huge, growing, and can sometimes get out of control. Let me know if tax (or other) analysis would be interesting.

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Cool pic of long/short financing costs

From BlackRock/Aperio

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Bond tax-loss harvesting is a thing

From Parametric

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After hopping on a quick call

Mariners etsy witch

I don’t care if you like baseball.

Random guy bought a spell (yes) on Etsy for $19.99 and the mariners are 5-0 since.

This is ridiculous and joyful. And everyone could use some silliness now.

Last night at the Mariners game: witch hats, Halloween, broomsticks. Why not.

Coming Sunday: The other phantom menace

Have a great Friday