JPMorgan Asset Management is launching a new strategy aimed at wealthy investors seeking to maximise after-tax returns, drawing on techniques popularised by quantitative hedge funds AQR Capital Management and Two Sigma Investments, according to a report by Bloomberg.
The new JP Morgan Tax-Smart Disciplined Equity Long Short Strategy takes long positions in US large- and mid-cap stocks while selectively shorting other names to generate losses that can offset capital gains. The approach reflects a growing trend among high-net-worth investors to reduce tax liabilities in a market where prolonged gains have created concentrated and heavily appreciated portfolios.
AQR has led the way in tax-efficient quantitative investing holding around $45bn in similar strategies as of September, while Two Sigma launched its own tax-aware fund earlier this year. WorldQuant is also planning a comparable tax-conscious strategy in 2026.
