Bloomberg Surveillance · Tuesday, August 11, 2026
Tax loss harvesting is a strategy that takes advantage of tax implications by selling securities at a loss to offset capital gains, thereby creating more credits. This approach is seen as a key area of growth in discretionary management and a way to generate outperformance by exploiting tax inefficiencies.
“Well, this has been powering a lot of the growth in the industry for actively managed accounts, And in the simplest form, it takes advantage of the fact that on a tax basis, you want two tracks tax the individual security transaction.”
“Tax management is really the area of growth within discretionary management. Candidly, I look at it and say it is absolutely incredible value added and everybody should have that in their toolkit, and we absolutely do have that capability to do it.”
“But at the same time, it's a fascinating concession that the only outperformance you can really generate for investors at this point is taking advantage of the inefficiencies created by Uncle Sam's tax collections, rather than trying to outperform the market itself.”