EconomyThe Big Business of Helping the Rich Dodge Taxes

A growing trend among wealthy people is “tax alpha,” the effort to reduce tax bills while also producing more profit. The rise of the S&P 500 over the past decade, driven largely by technology stocks, has left many investors with substantial gains. Those gains are often concentrated in a small number of companies, making diversification costly from a tax perspective. Wealthy investors are therefore exploring approaches such as tax-aware long-short strategies and 351 conversions to reposition their holdings while limiting taxes.