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Hedge fund tax strategies fuel surge in US margin lending
Growing demand for tax-efficient long-short investment strategies offered by hedge fund managers including AQR and Quantinno has contributed to a sharp increase in US margin lending, with Charles Schwab reporting borrowing balances of $188bn in the third quarter, according to a report by the Wall Street Journal. Schwab's margin loan balances nearly doubled year on year, including approximately $61bn linked to long-short tax-aware strategies, which use leverage and short selling to generate tax losses while seeking to match or outperform equity indices. Assets managed through these strategies h
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