A ‘tax-aware’ diversification strategy

The potential tax implications of capital gains often make it easier said than done for highly concentrated stock owners to diversify their positions.

In a new study released earlier this year, two researchers from an asset management firm suggested that the technology advancements that enabled combining a form of leverage called variable prepaid forwards with direct indexing have evolved to the point that pairing the loan with a "long-short" stock strategy carries far more tax savings and higher after-tax returns.

Find more detail in the story below. And have a great week.