Wes Gray 🇺🇸

Lots of chatter on ETFs being seeded via 351. Makes sense-we've seen a large increase in activity (and press e.g., @justinaknope @denitsa_tsekova). Here is an older article that talks about the top 10 ways to screw these up. etfarchitect.com/top-10-ways-to… Note: Economic substance is on the list

@TaxAlphaInsider Cc @gray_dvm

I recently learned racehorses qualify for 100% bonus depreciation, subject to rules and such. Wonder how the horses feel about that.

Can you replicate Mulvaney's rules. (And even if you could... could you actually stomach his trades?) open.substack.com/pub/concretumg…

@lhamtil @gs072887 @ImpliedFunding Outstanding

Big mood in the Larry house today with a hybrid challenge unlocked. 330 pause squat yesterday afternoon, then completed a 10k this morning. I blame @gs072887 & @ImpliedFunding for getting me into this

@DaveNadig Trust and brand become even more important in this world and reputation will become the coin of the realm.

Yes! Competition Good! It doesn't change the fact that the CFTC fired EVERY lawyer doing enforcement (like, 20 of 20), has NO active comissioners but chair, and is down 29% in headcount. Yet this is the new, burgeouning market we're going to innovate in. But I mean ...

2008 is a great case study to explore. Imagine you are levered long short, your short book explodes with gains, and then you are forced to cover (by govt decree in some cases) and eat massive st cap gains. Yowza. The only recourse is the tax liability u were trying to defer is probably gone 🤣

Tomorrow's blog is all about how short positions have a bunch of risks that long positions do not. There's nothing inherently wrong with short positions; it's just worth considering if the risk is appropriately compensated and asking managers how they manage risk. Nowadays, a diversified short portfolio goes a long way, but there are several more steps experienced managers take to monitor and cull risk.

New Post: Rethinking Trend Following: Optimal Regime-Dependent Allocation alphaarchitect.com/rethinking-tre…

@Schwarzenegger Motivator!

Still pumping.

Updated Post: Bank Monitoring with On-Site Inspections alphaarchitect.com/bank-monitoring

@TaxAlphaInsider Transitioning from an ETF to Direct Indexing? Bad Idea. - share.google/1HmsUf1fMTBlpW… There is a blog post on that 🤣

advisers wondering if they should replace their low-cost, indefinite deferral ETF with... direct indexing.

@vixologist Im colorblind so I'm not in charge of anything design related. Will pass the buck on this one 🤣

@alphaarchitect Damn! That orange background is hurting my eyes! Love the topic, though!

Got unused capital… just sitting there? If your goal is to hedge against income loss, there may be better options. Our latest whitepaper explores the Alpha Architect Tail Risk ETF ( $CAOS ) as a more effective alternative to capital reserves. Read here: funds.alphaarchitect.com/documents/whit… Learn more: funds.alphaarchitect.com/caos

***Job alert*** A friend of mine is building in wealth management. The founding team is very technical: ex-Tiger, Millennium, and Citadel. They're recruiting for two roles: 1) a family office CFO-type with extensive experience managing the estates of UHNW families. 2) a technical product manager / client-facing engineer with extensive experience building in finance/wealth/investing tech and actively experimenting with AI. The roles are both in-person and can be based in San Francisco or New York. Message me if this sounds like a good fit for you or someone you know.

Abstracting away from any specific ETF, if one is buying puts, but doesn't want to get eaten alive in carry costs, the puts need to be funded via different option bets that can help cover the put costs (e.g. put spreads). Unfortunately, the market is efficient, and these bets have risk/reward tradeoffs.

@SowingAlphaSeed Farmer, feel free to reach out for more details specific to the fund.

Everyone needs a little Jocko in their life!

@ThorBjornsson_ beast!

How heavy do you think I’ll have deadlifted by the end of my career?🤔😏

Banks are supposed to have a unique edge. Not just in lending. But in understanding borrowers, monitoring risk, and intervening when things go wrong...is that true? by @ebasilico alphaarchitect.com/?p=96914

A hedge fund manager can sponsor and seed an ETF using hedge fund assets, often through a Section 351 contribution, and may retain a large ownership stake, particularly at launch. The main regulatory hurdles are Section 12(d)(1) fund ownership limits, including the 3% cap absent relief, Sections 17(a) and 17(d) affiliate transaction restrictions because the same adviser manages both vehicles, and control concerns under Section 2(a)(9) if ownership becomes significant.

@TaxAlphaInsider That cracked me up, man. Well done

When you borrow from the options market via box spread.

@EricBalchunas Check out art museum there. Epic

Love this bball hoop/soccer goal set up (at park in downtown Madrid). Never seen that before. Here for ETF event Monday. Roaming around today.