Jeffrey Fulk
speaker
308 appearances
1 recordings
1 series
first heard Feb 2026
last heard 5 Feb
Jeffrey Fulk’s voice in public audio — every appearance, attributed to the second.
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recordings per month · last 12 monthsRecordings per month over the last 12 months — 1 in all, peaking in Feb 2026 with 1.
Appearances
So the way that these structures typically work are that they will sell a portion of that $10 million position year one, and that will create...
let's just call it a $1.5 million capital gains tax.
And so then they will create a levered portfolio around that position.
And through the trading of that, they will try to harvest the equivalent of the 1.5 in losses to offset that gain that they already realized on that name that then they use that 1.5 million to trade the rest of the portfolio.
And so over a three to five year period, depending on the amount of leverage that you're willing to use, you can kind of disentangle that single position into a fully diversified position.
And then maybe more specifically to your question, at some point down the road, you are going to have positions again with a lot of gains in them.
And if you wanted to sell them all at any one point in time, you would inherently have a gain.
But as long as you give this time to work itself out and you can take specific distributions over time that are offset by losses in other parts of the portfolio, it is very tax efficient.
Yeah, most of these have a very like they'll target a date to where you could be pretty much fully liquid if you want to.
And you could liquidate with how much leverage you're willing to use, because the more leverage you use, the more losses you generate on the short side.
Most of the models we see are between five and 10 years in terms of being able to do that.
And then in terms of opportunity costs.
The opportunity cost should be very limited.
If the manager does a good job delivering returns against their target index that they're using as a proxy for the return that they're delivering, there shouldn't be any slippage.
That's right.
And we do like to marry up these strategies on the tax advantage side with the profits that we know that are going to be generated on the alternative side.
that are going to come through in the K-1 statements that clients are going to get.
So if they have losses that they can deliver against their K-1 profits, it's quite valuable as well.
I think that's fair.
I think that's evolving quite a bit.
Showing 101–120 of 308 · page 6 of 16
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