Amelia Pollard

Sure.

So tax loss harvesting as a practice has actually been around for decades, by some measures maybe even a century.

And it basically involves selling securities at a loss, so the ones that have lost money, to offset gains elsewhere in your portfolio.

So it basically is a way to ensure that if you've had some losing investments at the end of the year, you can write that off on your tax bill and pay a little less in taxes.

What these hedge funds are doing is they're using leverage and short selling, which are new dimensions to this practice of tax loss harvesting, to basically turbocharge the strategy.

And they're able to generate way more consistent tax losses and at a bigger scale with leverage.

Why is that the case?

Yeah.

So there are two hedge funds in particular that have really led the charge on this.

One is called AQR, which by some measures is the biggest hedge fund in the world.

And the other one is called Quantino.

It's really taken off in the last couple of years, seemingly from what I found in my reporting from word of mouth.

And so because these strategies and funds are really targeted towards organizations,

ultra high net worth and high net worth investors.

These are social groups where people kind of exchange investment ideas and products that they're investing in.

And I think that it's also worked.

You know, there have been really kind of consistent and strong returns the last few years.

And so it's attracted a lot of capital.

I mean, one thing that's happened in the U.S.

over the last decade is that the really crazy bull market with stocks has just generated this...