Long-Short Strategy: An Integrated Equity Solution
Dual-Engine Growth Integrating Pre-Tax Alpha with Tax Harvesting
The Aris Investing’s Long-Short Strategy is a systematic, active extension building block designed to integrate directly as a completion sleeve within an advisor’s total portfolio architecture. While the strategy utilizes a long-short overlay to capture relative opportunities between securities, it is engineered to maintain a Beta-one profile, delivering a market-like experience with enhanced tax and alpha potential.
Why Long-Short in a Portfolio?
Solving the "Tax Decay" of Long-Only Portfolios
Traditional long-only portfolios suffer from a structural flaw: as they age and accumulate gains, the opportunity to harvest losses naturally evaporates. This "tax decay" leaves investors "tax-locked" and unable to offset gains from other parts of their wealth. Transitioning to an active extension framework - the Aris Long-Short strategy - acts as a structural upgrade, refreshing the portfolio's ability to generate tax assets by providing a consistent stream of new tax lots, regardless of how long the core positions have been held.
An All-Weather After-Tax Return Equity Sleeve
Unlike traditional strategies that rely on market downturns to generate losses, a Long-Short strategy functions as an all-weather tax engine. By maintaining an integrated short sleeve, the strategy can harvest losses across different market cycles—capturing opportunities in the short sleeve during bull markets and the long sleeve during bear markets - delivering consistent after-tax returns across all regimes.
The Aris Long-Short Strategy: An Integrated Upgrade
Institutional Pedigree, Private Wealth Access
Aris brings institutional-grade sophistication, previously reserved for hedge funds, into a transparent, single-line format. The strategy is not just a quantitative model - it is a disciplined, factor-aware engine led by a team with decades of experience at premier global firms. This pedigree ensures that the operational complexities of shorting—such as borrow management and risk monitoring—are handled with the same rigor found at the world's largest investment houses.
A Complement, Not a Competitor
Unlike traditional "siloed" products that demand a total liquidation of current holdings, Aris is built as a complement. It is designed to sit alongside a client’s existing active managers or concentrated positions as a completion sleeve. We build an active extension overlay that optimizes the total portfolio’s tax and risk profile around your existing convictions, acting as a stabilizer rather than a disruptor.
Bespoke Advantages for the Architect
Every HNW balance sheet is unique. Aris provides the "bespoke advantage" by tailoring long-short exposure to account for specific client constraints. Whether it is managing around a large legacy technology position or neutralizing unintended sector overlaps from other managers, we provide the structural flexibility required for a truly customized total portfolio architecture.
Excess Returns to Support Structural Complexity
A sophisticated strategy must justify its own footprint. Aris utilizes a Multi-Factor Signal to tilt toward high-conviction factors, targeting excess pre-tax returns that are intended to offset the structural costs of the overlay. By seeking to outperform the benchmark through disciplined stock selection, we ensure that the strategy adds value on both sides of the ledger—pre-tax alpha and post-tax efficiency.
The Aris Long-Short Strategy: Built for Modern Portfolio Architects
Aris is designed for professionals who view the balance sheet as a dynamic system. By shifting from a "product" mindset to a "solutions" mindset, we provide the building blocks necessary to manage complexity at scale.
Modern RIAs: The Systems Integrator
For advisors who treat portfolios as integrated systems rather than a collection of siloed products, Aris acts as a completion sleeve - a centralized engine that harmonizes multiple active managers, ensures factor neutrality, and provides a consolidated view of risk and tax across the entire household.
Tactical Allocators: Precision Risk Management
Investors who require precision tools to navigate shifting market regimes utilize an active extension framework to maintain full market exposure while capturing relative performance dispersion. The strategy is built for those who value disciplined, daily risk monitoring and the ability to tilt toward high-conviction factors without abandoning their core benchmark.
Tax Alpha Seekers: Structural Efficiency
Designed for high-net-worth clients who need a structural solution to unlock "tax-locked" portfolios and sustain loss harvesting over the long term. Aris is for the investor who understands that Tax Alpha is a primary driver of terminal wealth and requires an all-weather engine to generate offsets for private equity, real estate, or concentrated stock gains.
Alpha Diversifiers: Idiosyncratic Returns
For portfolios looking beyond broad market beta, Aris offers the ability to capture idiosyncratic returns through factor-driven tilts. By utilizing our Composite Multi-factor Signal to go long and short, we provide a diversifier that targets excess pre-tax returns, providing an additional layer of performance that is independent of simple market direction.
Designed to Support Bespoke Portfolio
Outcomes
A modular, institutional-grade equity building block designed to integrate into total portfolio frameworks, expand relative opportunity, and support disciplined risk and tax-aware investing for modern advisors.
