A guide to 130/30 loss harvesting

Apiero

Lisa Goldberg

Research

15 Pages

Apiero analyzes the effects of leverage on tax-managed public equity strategies by comparing 130/30 long/short portfolios to traditional long-only portfolios.

Key Takeaways

Increased Capital Losses: The 130/30 long/short portfolios generated 2.7 times more capital losses than long-only portfolios over the first 10 years, potentially offering higher tax alpha for investors with sufficient capital gains to offset.
Impact of Liquidation: Liquidating these portfolios can reduce the tax alpha by about half, indicating the importance of long-term investment horizons in such strategies.
Investor Suitability: Investors lacking short-term capital gains to offset may find traditional long-only loss harvesting or low-cost ETFs more desirable after considering costs and fees.
VIEW FULL REPORT

Join our newsletter to have all of this content + Exclusive Newsletter Bonus Content delivered to your inbox every week

Related Content

Asset Allocation
Putting Portfolios Together when the World is Falling Apart
May 2026
Momentum
The Intramonth Momentum Cycle
May 2026
Portfolio Management
Misplaced Anxiety? A Reassessment of Crowding in Systematic Investing
Apr 2026

The information contained in this communication is of a general nature for informational purposes only, and does not constitute financial, investment, tax or legal advice. The information contained within this communication reflects the opinions of those referenced herein, and do not reflect the opinions of The Idea Farm, L.P. and its affiliates. Such opinions expressed herein are as of the date of production and are subject to change at any time without notice due to various factors, including changing market conditions or tax laws. Where data or information prepared by third parties is presented, no representation, warranty, or undertaking, expressed or implied, is given to the accuracy or completeness of such information by The Idea Farm, L.P. or any other person. While such sources are believed to be reliable, The Idea Farm, L.P. does not assume any responsibility for the accuracy or completeness of such information and does not undertake any obligation to update the information contained herein as of any future date. Any links to third party websites are offered only for use at your own discretion. The Idea Farm L.P., and its affiliates, are separate and unaffiliated from any third parties listed herein and are not responsible for their products, services, policies or the content of their website. All investments are subject to varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy or product referenced directly or indirectly in this communication will be profitable, perform equally to any corresponding indicated historical performance level(s), or be suitable for your portfolio. Past performance is not an indicator of future results.

Scroll to Top