Re:Buffett's Alpha (2018) [pdf]
by lindig on Saturday November 02, 2019 @09:47AM
(#21427673)
My understanding was that there is a tax advantage (or loophole) in this construct of having influence over a fund's trading rather than doing the trades yourself and holding the fund instead. Would you argue there is no such advantage?
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Re:Buffett's Alpha (2018) [pdf]
by codecritic on Saturday November 02, 2019 @10:16AM
(#21427815)
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.