MarketPR
The US Treasury has sent a warning to hedge funds over investment techniques sold under the label of "tax alpha," with officials directly questioning the explosive growth of tax-loss harvesting strategies.
Shares of AMG fell in the session after the scrutiny became public.
Treasury's position Tax-loss harvesting, the practice of selling securities at a loss to offset taxable gains, has grown into a packaged product that some hedge funds market as a source of investment outperformance.
Officials have now signaled that the scale of that growth has attracted government attention.
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