Advisor Interest in Tax-Managed Long-Short SMAs Jumps to 60%
Updated
Updated · The Daily Upside · Sep 1
Advisor Interest in Tax-Managed Long-Short SMAs Jumps to 60%
3 articles · Updated · The Daily Upside · Sep 1
Summary
Nearly 60% of advisors now say tax-managed long-short SMAs are the product they most want to add, up from 33% a year earlier in Cerulli survey data.
Tax optimization is driving that demand, as the strategies can create extra tax-loss harvesting opportunities for high-net-worth clients with appreciated stock or looming business-sale proceeds.
AQR led retail long-short SMA assets at more than $55 billion in the first quarter, followed by Quantinno at about $48.3 billion and BlackRock at roughly $9.2 billion.
Advisors and managers still describe the products as niche tools because leverage, complexity and added fees limit their fit, especially outside major liquidity-event planning.
Treasury's broader scrutiny of tax-efficient investment structures has added context to the boom, though long-short SMAs were not specifically cited and advocates say they defer rather than erase taxes.