The Indicator from Planet Money · Monday, September 28, 2026
Some of the wealthiest Americans are utilizing complex investment strategies, pioneered by hedge funds like AQR Capital Management, to significantly reduce or even eliminate their tax liabilities. These 'tax-aware' strategies engineer investment losses to offset gains, a practice that has seen rapid growth and drawn scrutiny from policymakers and the IRS.
“But right now, some millionaires and billionaires are plowing their money through a tax loophole so big, it could allow them to slash their taxes to zero.”
“They have thousands and thousands of positions, many long, many short. They borrow money, and they create losses.”
“Grow your money and slash your tax bill. That is what AQR is promising.”