Taxing Consequences: The Dark Side of Wealthy Investors' New Favorite Strategy Wealthy investors are pouring billions into tax aware long short strategies, or TALS, which promise to offset capital gains taxes.
However, this trend comes with significant risks and uncertainties that threaten to upend the tax law. Since 2022, over $170 billion has flowed into TALS, growing from a mere $2 billion in just three years.
Wealth managers are reaping hefty fees from these products, which are touted as "phenomenally profitable and sticky.