JPMorgan Joins AQR, Two Sigma in Launching ‘Tax-Aware’ Strategy

JPMorgan Asset Management is tapping into a booming market for wealthy investors with the launch of a private fund designed to maximize after-tax returns by generating losses.

The J.P. Morgan Tax-Smart Disciplined Equity Long Short Strategy takes bullish positions in a basket of stocks while also betting against certain companies, according to a person familiar with the matter who asked not to be identified discussing private information. The shorted names will ideally produce losses that the fund can then harvest to offset capital gains.