Our latest thinking for U.S. tax-aware investors and their advisors.
Tax Matters
September 8, 2026
Liquidity need not be an all-or-nothing decision. Our latest research explores how investors may be able to access meaningful cash from tax-aware long-short strategies while remaining invested and retaining key portfolio attributes.
Tax Matters
August 11, 2026
Nathan Sosner, AQR Principal and guest co-editor of a recent special issue of The Journal of Wealth Management, identifies ten principles for managing concentrated positions. One point is especially clear: concentrated wealth is not simply a problem to solve, but an asset to manage thoughtfully over time.
Tax Matters
August 6, 2026
As tax-aware long-short investing gains attention, we welcome thoughtful conversations that can help investors distinguish credible strategies from weaker approaches. We believe these strategies should be grounded in time-tested investment models, prioritize expected pre-tax profits, and balance tax efficiency with economic substance.
Tax Matters
August 6, 2026
AQR Principal Nathan Sosner was guest co-editor for a special issue of The Journal of Wealth Management on managing concentrated wealth. Drawing on behavioral finance, investment analysis, wealth planning, and practitioner experience, the issue offers practical perspectives on navigating the transition from wealth creation to wealth preservation.
Tax Matters
June 15, 2026
This article explains how U.S. tax law generally looks through legal wrappers to economic substance—and why structures designed primarily to engineer tax outcomes may create more compliance and reputational risk.
Tax Matters
March 19, 2026
In this piece, we discuss how, in tax-aware long-short investing, pre-tax alpha not only enhances returns but can also improve tax outcomes and reduce transition costs.
Tax Matters
October 15, 2025
This piece challenges the notion that all tracking error is bad, comparing it to the idea that all calories are unhealthy. It explains how “rewarded” tracking error—taken in pursuit of alpha—differs from “unrewarded” tracking error, helping investors understand when taking on tracking error can be beneficial for achieving long-term goals.
Tax Matters
May 27, 2025
This paper addresses five common criticisms of Tax-Aware Long-Short (TA LS) strategies, arguing that most concerns stem from implementation inexperience rather than flaws in the strategy itself. It emphasizes that experienced long-short managers are best positioned to deliver tax-aware benefits without compromising pre-tax alpha.
Tax Matters
April 1, 2025
When implemented well, CRUTs can be a valuable tool, combining wealth preservation with philanthropy. Our latest papers are meant to help investors maximize the benefits of these strategies.
Tax Matters
March 19, 2025
Our first post in this series showed the power of deferral for building wealth; our second showed how robust the value of deferral is to changes in future tax rates on capital gains; our third considers whether deferral is still the right choice if an investor is able to find a strategy with a higher expected return. Here, we build on Part 3 by adding a tool investors and advisors increasingly have access to: tax-aware transition.
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