Tax-managed long-short equity strategies gain traction with RIAs
Updated
Updated · Wealth Management · May 4
Tax-managed long-short equity strategies gain traction with RIAs
9 articles · Updated · Wealth Management · May 4
Morningstar says nine such funds launched in 2025 and two more in 2026, as Natixis, J.P. Morgan, Neuberger Berman, WisdomTree, NEOS and QuantumStreet expand offerings.
Managers market them to offset capital gains and exploit volatility, but advisers warn higher fees, leverage, tracking error and limited upside can hurt portfolios.
Fidelity has stopped opening new long-short accounts, Schwab capped RIA allocations at 30%, and analysts say the strategies suit only some investors, especially around one-off gains.
Why are Wall Street's biggest custodians suddenly restricting popular tax-saving strategies they once promoted?
Do 'tax-saving' equity strategies actually cost investors more in fees and risk than they save on taxes?
In today's AI-driven market, are long-short strategies a brilliant tax play or just a high-stakes gamble?