codecritic
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6 years ago
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on: Buffett's Alpha (2018) [pdf]
Yes there is an advantage. US investors could be assessed at long-term rather than short-term capital gain rate by using such type of structures. I simply argue that this is not a core part of a quant fund's business. Any capable hedge fund could hire lawyers to set up such structures.
codecritic
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6 years ago
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on: Buffett's Alpha (2018) [pdf]
Taxes on trading profits are not paid on each trade. A losing trade cancels out some profits from a winning trade, and tax will be assessed at the aggregate each financial year. Tax optimization contributes to the financial success operationally, but not is a core part of a quant fund's business.
