This has been discussed more than a few times here.<p>I've written my thoughts on this. its either very cunning or blatantly thumbing your nose at the tax code depending on where you sit.<p>Long story short, I think when the tell all book for RenTech is written you'll find that they are very smart but tax avoidance accounted for a much larger share of their returns than most people would expect.<p>> <a href="https://news.ycombinator.com/item?id=9859620#9859701" rel="nofollow">https://news.ycombinator.com/item?id=9859620#9859701</a><p>> <a href="https://news.ycombinator.com/item?id=13445232#13445506" rel="nofollow">https://news.ycombinator.com/item?id=13445232#13445506</a>
> A bipartisan Senate panel estimated in 2014 that Medallion investors underpaid their taxes by some $6.8 billion over more than a decade by masking short-term gains as long-term returns.<p>Holy shit.<p>That 10 year number is the equivalent of the NSF’s entire budget. [0]<p>This is t an accident. It’s criminal. And it’s not a surprise given that IRS enforcement has been declining over a decade and focusing on small taxpayers rather than wealthy individuals and corporate tax payers.[1]<p>[0] <a href="https://www.nsf.gov/about/budget/fy2018/" rel="nofollow">https://www.nsf.gov/about/budget/fy2018/</a><p>[1] <a href="https://www.propublica.org/article/earned-income-tax-credit-irs-audit-working-poor" rel="nofollow">https://www.propublica.org/article/earned-income-tax-credit-...</a>
This from a UK perspective weird why is basically a collective investment scheme liable to pay any CGT at all - isn't that the individual investors liability.<p>And in this case why are not all other funds being targeted.