The ZEGA 130 | 30 Tax Aware Long Short Strategy (ZTAX) is designed to provide upside market hedged growth on 100% of the portfolio. Then ZEGA builds in a synthetic borrow of funds as an alternative to margin using a tactic called a short box trade. Using the extra 30%, ZEGA puts an additional long 30% position on while simultaneously adding a -30% short position. The goal is to let winners run as unrealized gains while seeking tax loss harvesting opportunities on the short positions. The net exposure winds up being 130% long market exposure with -30% short exposure. They are deployed in an SMA format and utilize ETFs and Options.

Recommended Usage

• As part of an overall portfolio as a piece seeking tax harvesting with post-tax alpha
• Investors who prioritize a balance between portfolio returns with the potential value created by tax efficiency
• Investors that are comfortable with inherent leverage in a 130 | 30 strategy and borrowing within a portfolio to create leverage
• For investors who have embedded capital gains, including concentrated positions, where capital losses would be valuable on a tax equivalent basis to assist in seeking to reduce tax liability with the main goal of net post-tax alpha in an SMA wrapper.

Register for our Webinar

Join us for a webinar featuring Derek Moore of ZEGA Investments on Tuesday, May 12 at 1:00 PM Central. Derek will discuss the ZEGA ZTAX strategy. Register now to hold your place.