Tax-Aware Growth Beyond Direct Indexing
Traditional direct indexing limits how often losses can be harvested. Tax-aware long/short investing introduces a more dynamic approach to realizing losses, without stepping away from market exposure.
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Expanded Tax-Loss Harvesting
Academic research shows tax-aware long/short strategies can generate significantly more tax-loss harvesting opportunities than traditional direct indexing.
Low Minimums
Get started with as little as $10,000, compared to seven-figure minimums often required by hedge funds using similar approaches.
Simple, Transparent Fees
Get access through alphaAI’s accessible, transparent fee structure, without hedge-fund complexity or pricing.
Stage 1
Long/short portfolio construction.
Stage 2
Adjust short exposure to generate pre-tax alpha.
Stage 3
Losses are continually generated by shorts.
Stage 4
Harvest losses periodically.
Stage 5
Losses used to offset capital gains or carried forward.
Offset Taxes From Real-World Events
Selling stocks?
Harvested losses may be used to offset realized capital gains.
Selling a business?
Carry forward harvested losses to help reduce future capital gains.
Selling real estate?
Harvested losses can help reduce capital gains taxes from real estate transactions.
Carry losses forward.
Unused losses may be carried forward indefinitely.
Start Building Your Loss Bank Today
Tax losses may be carried forward indefinitely. Starting earlier gives you more time to accumulate losses that can be used to offset future gains.
Shaped by decades of academic insight.
Our strategies are informed by rigorous academic and internal research.
Academic research suggests that tax-aware long/short approaches can expand tax-loss harvesting opportunities beyond traditional direct indexing, helping taxable investors be more intentional about after-tax outcomes over time.
Academic research highlights how tax-aware long/short structures can create more frequent opportunities to realize tax losses than traditional direct indexing, an insight that has shaped modern after-tax portfolio design.
Frequently Asked Questions
Find answers to common questions about alphaAI's tax-aware solutions.
What is Tax-Aware Long/Short investing?
Tax-Aware Long/Short combines long market exposure with systematic short positions to create more opportunities for tax-loss harvesting while staying invested.
How is this different from direct indexing?
Direct indexing relies on long-only holdings and opportunistic loss harvesting. A tax-aware long/short approach introduces short positions, which can generate additional loss events beyond what long-only portfolios typically allow.
Does this strategy try to outperform the market?
No. The primary focus is on improving after-tax efficiency through systematic loss realization, not predicting markets.
What happens if I don’t have capital gains this year?
Unused tax losses may be carried forward indefinitely and applied against capital gains in future years.
Who should consider this strategy?
Tax-Aware Long/Short is designed for taxable investors with current or expected capital gains who want to be more intentional about managing after-tax outcomes as part of a long-term plan.