Harvest more tax losses, automatically.

Tax alpha is the extra after-tax value an investor gets from managing taxes well, such as harvesting losses that offset taxable gains. alphaAI's tax alpha strategy is built to generate more of those losses than a typical portfolio.

Tax-aware long-short is a strategy that holds stocks expected to do well and shorts stocks expected to lag, while staying about 100% invested in the market. Both sides create chances to harvest tax losses, so it can produce more losses than long-only tax-loss harvesting.

alphaAI's strategy is designed to add two kinds of value. Tax alpha comes from harvesting losses on both the long and short side. Factor alpha comes from an AI model that ranks every S&P 500 stock on momentum and quality, holding the leaders and shorting the laggards, with the aim of beating the index before any tax savings. Neither is guaranteed.

AQR Capital Management found that direct indexing, which harvests losses from stocks you own, tends to taper off after a few years, peaking at about 30% of the original investment on average. Long-short strategies with enough leverage reached 100% within a few years while aiming to beat the index before tax. A follow-up AQR paper found much of the benefit comes from deferring gains rather than creating new losses. These are hypothetical research results, not alphaAI results. Read Beyond Direct Indexing (2023) and Loss Harvesting or Gain Deferral? (2023).

Harvested losses can offset capital gains, such as gains from selling RSUs, crypto, a business, or other investments. Up to $3,000 a year can also offset ordinary income, and unused losses carry forward to future years.

No. Tax-loss harvesting mainly defers taxes rather than eliminating them, because harvested positions carry a lower cost basis. The benefit depends on your tax situation, and alphaAI does not provide tax advice. Talk to a tax professional. AQR's research on gain deferral.

Tax-aware long-short uses margin and short selling, and it can lose money. It can lag the S&P 500, and losses on short positions are not capped. Tax benefits are not guaranteed, and tax rules can change. It is not suitable for every investor.

The planned advisory fee is 1% a year for the 130/30 version and 1.25% a year for the 145/45 version, with no performance fee. The planned minimum is $100,000.

Yes. Holding more stock than your account value uses margin, and Alpaca charges margin interest on borrowed amounts. Alpaca's stated margin interest rate is 5.00% to 6.50% a year, depending on account tier, and can change. Short positions can also carry stock borrow fees. These costs are separate from alphaAI's advisory fee.

It's possible but designed to be unlikely. The strategy keeps borrowing well under the limit, holds a margin buffer, and checks exposure every trading day, reducing it if needed. A sharp market move can still trigger a margin call, which could force sales at a loss.

The strategy aims to beat the S&P 500 before taxes, using the factor model, while staying about 100% invested in the market. Returns will differ from the index, often by a few percentage points a year, and can lag it. Beating the index is the goal, not a guarantee.

You can leave at any time. The strategy is designed to wind down the long and short layers gradually to manage the tax impact, or you can close everything at once. Because harvesting mostly defers taxes, selling can realize gains.

You'll get one 1099 from Alpaca. It will list more trades than a typical account, including short sales, so many people share it with a tax professional.

The strategy is in development. Request access to join the early access list, and we will email you when it opens.

In your own account at Alpaca Securities LLC, a registered broker-dealer and member of FINRA and SIPC. The account will be in your name.