Form ADV Part 2A
NinePointTwo's brochure describes its services, fees, conflicts of interest, and the risks of its strategies.
Read Form ADV Part 2APartner with NinePointTwo
Tax-Aware Long/Short for RIAs
Prism, NinePointTwo's tax-aware long/short strategy, is available to RIAs at a custodian that does not restrict long/short accounts.Registered investment advisers keep their clients and their role as adviser while NinePointTwo manages the strategy.
- New accounts from $1M
- Portfolio margin available
- Customized SMAs
- Proprietary alpha models
How It Works
How an Advisor Connects a Client Account
NinePointTwo manages Prism at a custodian that does not restrict long/short accounts.New accounts there can use portfolio margin and the strategy's full leverage range.Advisors who custody elsewhere can open accounts there for these clients, and NinePointTwo can help with the setup.
How the account is structured
The advisor
Registered investment advisor
- The client relationship
- Planning and asset allocation
- The client's other holdings
Selects NinePointTwo
Separately managed account
The client's account
Held in the client's name at the custodian
Manages the strategy
NinePointTwo
Manager
- Tax-aware long/short strategy
- Only the connected account
- Portfolio manager access
The advisor selects the strategy for a client
The advisor selects NinePointTwo as the manager of a client account at the custodian. Once NinePointTwo accepts it, management begins.
The account stays in the client's name
The account remains the client's own, and the client keeps full ownership of it. NinePointTwo manages the tax-aware long/short strategy in it.
The advisor keeps the relationship
The advisor continues to advise the client. Financial planning and the client's overall asset allocation stay with the advisor.
Other assets stay where they are
NinePointTwo manages only the account connected to it. The advisor continues to manage the client's other holdings where they are.
Access
Why Tax-Aware Long/Short Became Harder to Access
Charles Schwab and Fidelity Investments have been the two main custodians for tax-aware long/short accounts.
- Schwab minimum
- Since September 16, 2026, new long/short accounts need $10 million.
- Schwab margin
- New accounts get Regulation T margin only, which allows about 150/50.
- Fidelity
- Fidelity has not opened new long/short accounts since December 2025.
- Fidelity custody
- Fidelity will require advisory firms to hold $100 million at Fidelity by mid-2027.
For smaller advisory firms, a $10 million minimum excludes most of the clients the strategy would suit.Clients who clear it are held to Regulation T margin, which allows only lower leverage.
Schwab and Fidelity terms as of October 21, 2026.
Terms
Account Terms
- Minimum
- $1M
- Accounts generally begin at $1 million, in the client's own name.
- Configurations
- Set per client
- Leverage, tracking error, and benchmark are set for each client, starting at 130/30.
- NinePointTwo's fee
- From 0.50%
- Negotiated by account size and configuration, up to 2.00%.
- Liquidity
- Daily
- No lockup. Separately managed accounts maintain full liquidity.
- Financing and costs
- Negotiated terms
- NinePointTwo has negotiated financing terms with the custodian. Commissions and borrow fees apply.
- Performance fee
- None
- An asset-based management fee only, with no commissions to NinePointTwo.
Full fee terms appear in NinePointTwo's Form ADV Part 2A.
Moving Positions
Transferring Stock and Coordinating Wash Sales
Low-basis stock moves in kind
A client can fund the account with existing stock as well as cash. Shares transfer in kind, so the move itself realizes no gain. NinePointTwo can then sell a concentrated position down over several years. Losses realized by the long/short positions may offset the gains along the way. Prism Diversify applies the tax-aware long/short strategy this way.
Wash sales run through the advisor
NinePointTwo sees only the connected account. The wash sale rule looks across all of a client's accounts, including retirement accounts. A purchase elsewhere within 30 days before or after a loss sale in the account can disallow that loss. Shorting a stock the client holds in another account can also be treated as a constructive sale of that holding.
How wash sales are coordinated
The advisor shares outside holdings
At onboarding, the advisor sends the client's holdings at other firms and any securities the client wants to avoid.
NinePointTwo restricts those securities
NinePointTwo restricts those securities in the account to help avoid wash sales and constructive sales.
The advisor reports changes
The advisor flags new positions or dividend reinvestment in outside accounts as they occur.
Reporting
What the Advisor Sees
Daily look-through
Every position in the account, long and short, is visible each day in the custodian's online portal.
Monthly reports
Monthly statements and account reports are available in the same portal.
Tax statements
The custodian issues the account's tax statements, including a standard 1099.
Performance
Account performance is reported in the portal alongside the positions and statements.
The advisor can also reach the portfolio managers who build and run the models.They can walk through the account's positioning, its realized gains and losses, and how the configuration was chosen.
Due Diligence
Diligence Materials
Form CRS
The client relationship summary sets out the firm's services, fees, and conflicts in brief.
Read Form CRSPerformance on request
NinePointTwo does not publish performance for Prism on its website or in other public materials. Advisors and their clients can request it directly.
Request itFAQ
Questions From Advisors
How does an advisor connect a client account to NinePointTwo?
The advisor selects NinePointTwo as the manager of a client account at NinePointTwo's custodian. Once NinePointTwo accepts the account, it begins managing the tax-aware long/short strategy.
Who holds the assets?
The custodian, currently Interactive Brokers, holds the account in the client's name. NinePointTwo manages the tax-aware long/short strategy in that account only.
What if the advisor uses a different custodian?
NinePointTwo can help an advisor open accounts at its custodian for the clients it wants to place in the strategy. For larger relationships, NinePointTwo can consider working with another custodian.
Does the advisor keep the client relationship?
Yes. The advisor remains responsible for planning and the rest of the client's assets. NinePointTwo manages only the connected account.
Does NinePointTwo contact the advisor's clients directly?
No. NinePointTwo works through the advisor. It does not market to the advisor's clients and does not seek to take over the relationship.
What does the client pay?
The client pays NinePointTwo's management fee, which runs from 0.50 to 2.00 percent. The client also pays the advisor's own fee, along with the account's trading and financing costs at the custodian. Full fee terms appear in NinePointTwo's Form ADV Part 2A.
Does NinePointTwo pay advisors or share its fee?
No. NinePointTwo does not pay advisors, share its management fee, or compensate anyone for referring clients.
What is the minimum, and what leverage is available?
Accounts generally begin at $1 million. Configurations start at 130/30 and extend across the strategy's full leverage range. Leverage, tracking error, and benchmark are set for each client. Configurations above 150/50 need portfolio margin approval on the account at the custodian.
Which tax-aware long/short approaches are available?
All three Prism approaches are available. Prism Diversify unwinds a concentrated, low-basis position. Prism Max runs a full tax-aware long/short account. Prism Enhance adds an overlay to an existing portfolio.
Can a client transfer low-basis stock into the account?
Yes. Stock moves into the account in kind, so the transfer itself realizes no gain. NinePointTwo can then sell the position down over time while the account realizes losses that may offset the gains.
How are wash sales handled when the client has other accounts?
NinePointTwo sees only the connected account, so coordination runs through the advisor. The advisor shares the client's holdings in other accounts at onboarding, and NinePointTwo restricts those securities in the account. The advisor updates NinePointTwo when the other accounts change.
Does NinePointTwo publish Prism tax-aware long/short performance?
NinePointTwo does not publish performance for Prism, its tax-aware long/short strategy, on its website or in other public materials, consistent with its compliance policies. Prospective clients and their advisors can request that performance information directly. NinePointTwo has managed quantitative strategies since 2018 and tax-aware long/short strategies since 2025. Prism draws on the same in-house models. Tax-aware long/short managers generally do not publish live results for these separately managed accounts on their public websites.
Who builds and runs the models?
NinePointTwo's portfolio managers research, build, and run the return and tax models in-house. NinePointTwo Capital LLC is an SEC-registered investment adviser and a fee-only fiduciary.
Get in Touch
Describe a Client Situation
One client is enough to start. A portfolio manager will follow up to talk through the holdings, the embedded gains, and the timing.
Disclosures
This page describes how registered investment advisers can access NinePointTwo's tax-aware long/short strategy as a separately managed account at an unaffiliated custodian. It is informational and is not an offer, a solicitation, or investment, tax, or legal advice. Whether the strategy fits a client depends on facts specific to that client.
NinePointTwo Capital LLC is not affiliated with the custodians it uses. A client of an advisor pays that advisor's fee in addition to NinePointTwo's management fee and the account's trading and financing costs. NinePointTwo has no access to a client's other accounts. Wash sales and constructive sales caused by activity in those accounts can reduce or defer the strategy's tax benefits. Withdrawing from or closing an account requires unwinding its long and short positions and its leverage, which can realize gains and create a tax liability. Form ADV Part 2A describes NinePointTwo's fees and conflicts of interest in full.
Investing involves substantial risk, including the possible loss of principal. Tax-aware long/short strategies involve unique risks, including short selling and leverage, and may not be suitable for all investors. The effectiveness of tax management strategies depends on individual taxpayer circumstances and may vary. Past performance is not indicative of future results. See our Disclosures page for additional important information.