2 days ago
BlackRock, Goldman Scale Up Tax Trades in $3 Trillion SMA Boom
This year's stock market turbulence has punished ordinary investors. But for the wealthy, it's opened up fresh opportunities to convert equity swings into tax breaks — fueling a growing Wall Street business that turns volatility into a financial advantage.
BlackRock Inc., Goldman Sachs Group Inc. and Morgan Stanley are among firms scaling up a strategy known as tax-loss harvesting, typically offered through customized portfolios called separately managed accounts. When markets drop, managers sell stocks trading below their purchase price to realize losses. Those losses offset gains elsewhere in a portfolio, reducing clients' tax liabilities while maintaining overall portfolio exposure.
