Long/short: No one is talking about "coordinated deleveraging"
What if everyone gets squeezed at the same time?
Basis Northwest 2026 is sold out. The waitlist has 45 people on it. We expect to release another 5 or so seats this week.
The best way to stay up to date on future Basis events is this newsletter.
🔴 Basis Northwest upcoming events…
Wednesday, May 27, 2026
🍔 5:30 - 7:30 PM PT: Canvas kick-off reception (RSVP)
Friday, May 29, 2026
🔱 7:10 PM PT: Mariners Game - 10 seats left (RSVP)
tax mgt 🤝 risk mgt
This is my shorthand for “tax management is risk management.”
I’ve been saying this a lot lately.
In direct indexing, “risk” usually means underperformance relative to some benchmark (“poor tracking error,” as they say).
In tax-aware long/short strategies (130/30, 250/150, etc.), “risk” means the same thing, though there are many additional sources of said risk.
Tax-aware long/short assets are well above $150 billion now. You can get up to speed on tax-aware long/short here.
I’ve been exploring local risks, like short squeeze, lender policy changes, and manager underperformance (AQR’s recent research on this is excellent), for several months now.
Today, I’m zooming out and looking at a systemic risk and asking What if everyone unwinds their leverage at the same time?
