After ATRA, Tax Management Gains Importance

Daniel B. Eagan and Paul Robertson The US tax reform just enacted has made effective tax management of portfolios far more valuable for some investors. The old rules of thumb never really worked, but their shortcomings will now cost investors more.

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New US Tax Law May Reduce Portfolio Trading

Daniel B. Eagan, Paul Robertson and Tara Thompson-Popernik By raising capital-gains tax rates for some investors, the American Tax Relief Act alters the ground rules for tax-aware trading. If your taxable income exceeds $400,000 (single filer) or $450,000 (joint filer), there may now be less trading in your portfolio because each trade must clear a [...]

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Seniors: Act Fast If You Want to Transfer IRA Assets Directly to Charity

Daniel B. Eagan and Brian D. Wodar Philanthropic seniors in the US have only until the end of January to decide whether to make a tax-neutral transfer of up to $100,000 in IRA assets to the charity of their choice. For many, this could significantly lower their tax bill.

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How Much Hedge Fund Exposure Makes Sense?

Our research suggests that a well-diversified allocation to hedge funds might improve portfolio returns, but their greatest benefit is the risk reduction that comes from their low correlation to stocks. Here’s why.

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Skip the Surtax: A Tax-Saving Strategy for CRTs

Daniel B. Eagan, Steve Schilling and Tara Thompson Popernik A special provision buried deep in a recent set of proposed US Treasury regulations opens the door for charitable remainder trusts (CRTs) to protect gains from being subject to next year’s 3.8% Medicare surtax. Here’s how CRTs can reduce their beneficiaries’ tax burden. 

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To Wait or Not to Wait? That Is the Charitable Gifting Question

Daniel B. Eagan and Brian Wodar The tax impact of delaying a charitable gift by just a couple of weeks (until 2013) could be large, but it may not be positive for US taxpayers.

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Hedge Funds: Identifying Alpha and Mitigating Risk

Hedge funds have historically generated higher returns than stocks with less volatility, but they also pose several significant risks that volatility alone doesn’t capture, our research suggests. That makes careful due diligence and diversification of managers crucial. 

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Rooting Out Biases in Hedge-Fund Data

In a recent article, I discussed the conclusions about hedge fund’s historical returns and risk we reached after rooting out biases in the data available. Here’s how we sought to eliminate those biases.

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Hedge Funds: Separating Fact from Hype

It’s easy to understand the allure of hedge funds—and the fear they inspire. After conducting rigorous research aimed at separating fact from hype, we have concluded that hedge funds historically have had an attractive risk/return profile.

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Don’t Let Abuses Overshadow Value of 10b5-1 Plans

Daniel B. Eagan and Richard L.N. Weaver A recent Wall Street Journal article implied that some US executives have manipulated 10b5-1 programs to boost gains or reduce losses when trading company stock. Even if these abuses did occur, we think they shouldn’t obscure the value of 10b5-1 programs implemented in good faith.

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