Tax-aware long/short has a secret weapon

As long positions appreciate, portfolio equity grows and so does margin capacity, acting like a synthetic cash injection that sustains tax-loss harvesting potential

Tax-aware long/short has a secret weapon: margin

Margin allows tax-aware long/short strategies to conjure fresh cost basis out of thin air. That’s hyperbole, but not far off.

Get up to speed on tax-aware long/short strategies like the 130/30 and 250/150 here

In a long-only implementation, the portfolio’s tax-loss harvesting potential is limited by cost bas…