Quant Giant AQR Cuts Income Tax Bills for Wealthy Clients (1)

Quant hedge fund AQR Capital Management is quietly touting a product that can do something extraordinary and potentially divisive: help slash how much income tax its investors have to pay.

While most tax-optimizing strategies on Wall Street seek to reduce what’s owed on any capital gains, the AQR TA Delphi Plus Fund LLC is able to generate losses that can be offset against income, including from wages and investments.

The vehicle is complex and available only to an elite tier of clients. But in the right circumstances, it could wipe out a significant portion of an investor’s taxable income — ...