Turning Losses into Gains

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Several years ago, while we were examining an externally managed tax-loss harvesting account, we realized the funds simply stopped producing losses. As we wondered what to do next, we decided to call one of the smartest guys we knew in the space - Hoon Kim.

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Hoon wasn’t just any guy, he was a PhD in accounting with years of experience in alpha signal research, portfolio construction, performance attribution and portfolio analytics at AQR.  As luck would have it, Hoon was ready to strike out on his own and was preparing to launch a strategy that would address this market need for taxable investors.

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Hoon launched Quantinno Capital Management with Todd Saunders, Albert Kim, with Glenn Shirley and Paul Giordano joining shortly after. We decided to partner with Quantinno as an early client and a seed investor in the business.

What we saw in Hoon was an innovator in a relatively commoditized space. Simply put, Quantinno uses a long/short approach that allows one to tailor individualized solutions across various accounts to produce sustainable tax alpha. Instead of a one-size fits all approach, Quantinno was able to sit down and describe the unique attributes for each account to fit each owner.

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As we think about the unique tax and investment issues we face, we believe there is a large and growing market for customized tax-efficient solutions. We believe Quantinno is at the forefront of this innovation and will scale into the preferred solution for sophisticated taxable investors everywhere.