NinePointTwo Capital
Provider landscape

How the tax-aware long/short providers compare

Tax-aware long/short strategies have moved from institutional portfolios into the separately managed account market. A growing number of firms now run them for individual investors. This page compares six of the providers investors encounter most often. It is not an exhaustive list, and will continue to be updated.

Request a meeting As of August 2026

How six of the main providers compare

All figures published or sourced

Terms are the providers' published figures as of August 2026. NinePointTwo runs one of the strategies shown. Anything a provider does not publicly disclose is marked as such.

ProviderFoundedApproachMinimumManagement fee*Access
NinePointTwo PrismOur strategy2018In-house alpha models$1,000,0001.00% to 2.00%Direct or with an advisor
AQR Flex1,21998In-house alpha modelsNot publishedUp to 2.50%+ advisor fee (typically 0.50% to 1.25%)Through an advisor
Quantinno2,32018Not disclosedNot publishedNot published+ advisor fee (typically 0.50% to 1.25%)Through an advisor
Aperio by BlackRock2,41999Factor-tilted indexing$1,000,0000.55% to 0.90%+ advisor fee (typically 0.50% to 1.25%)Through an advisor
Cache52022Sub-advised via Brooklyn Investment Group$1,000,0000.50% to 1.00%Direct
Frec62021Index tracking with a chosen tilt$100,0000.50% to 1.30%Direct

NinePointTwo Prism

Our strategy
Founded
2018
Approach
In-house alpha models
Minimum
$1,000,000
Management fee*
1.00% to 2.00%
Access
Direct or with an advisor

AQR Flex1,2

Founded
1998
Approach
In-house alpha models
Minimum
Not published
Management fee*
Up to 2.50%+ advisor fee (typically 0.50% to 1.25%)
Access
Through an advisor

Quantinno2,3

Founded
2018
Approach
Not disclosed
Minimum
Not published
Management fee*
Not published+ advisor fee (typically 0.50% to 1.25%)
Access
Through an advisor

Aperio by BlackRock2,4

Founded
1999
Approach
Factor-tilted indexing
Minimum
$1,000,000
Management fee*
0.55% to 0.90%+ advisor fee (typically 0.50% to 1.25%)
Access
Through an advisor

Cache5

Founded
2022
Approach
Sub-advised via Brooklyn Investment Group
Minimum
$1,000,000
Management fee*
0.50% to 1.00%
Access
Direct

Frec6

Founded
2021
Approach
Index tracking with a chosen tilt
Minimum
$100,000
Management fee*
0.50% to 1.30%
Access
Direct

* Fees shown are each provider's own published management fee. AQR's figure is the retail cap stated in its Form CRS, and AQR does not publish tier-level terms. The advisor-only channels add the advisor's own fee on top. Published benchmarks put typical advisory fees near one percent, declining with account size, and the typical range shown, 0.50% to 1.25%, is drawn from that research rather than any provider's quoted terms. Fee ranges span each provider's available configurations, which differ, so the low end of one range generally reflects a smaller long/short extension than the high end of another. The approach labels are short characterizations drawn from each provider's own published descriptions. Financing, borrow, and trading costs apply at every provider and are not shown. NinePointTwo requires no advisor, and an investor who chooses to work with NinePointTwo through one pays that advisor's fee as well. NinePointTwo's fee is set by mandate, and full terms appear in our Form ADV Part 2A. Sources and as-of dates are listed at the end of the page. Confirm current terms with each provider.

About This Comparison

What the comparison covers

The comparison covers each provider's minimum, fee range, leverage, custody, and access channel.

NinePointTwo runs one of the strategies listed and earns fees only on its own. That is a conflict of interest, and the disclosures at the end of the page describe it. Facts about other providers come from public filings, websites, and press coverage as of the dates in the sources list. Terms change, so confirm them with each provider directly.

The questions an investor should put to any manager in this category are collected in How to evaluate a tax-aware long/short manager.

Illustration Tool

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Our illustration tool models hypothetical transitions to a tax-aware long/short portfolio. Position size, embedded gain, tax rates, and leverage are all adjustable.

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The Providers
01

NinePointTwo Prism

Approach
In-house alpha models
Minimum
$1,000,000
Fee
1.00% to 2.00%, by mandate
Advisor fee
None required
All-in management fee
1.00% to 2.00%
Leverage
Up to 300/200
Custody
Interactive Brokers
Access
Direct or with an advisor

NinePointTwo is a Los Angeles investment manager founded in 2018. The firm runs tax-agnostic quantitative hedge fund strategies alongside wealth management, and Prism is its tax-aware long/short strategy for separately managed accounts. Prism draws on the same in-house alpha and tax models, built and run by the firm's own team.

Prism runs from 150/50 to 300/200, with leverage, tracking error, and benchmark set around each client's circumstances. Accounts are custodied at Interactive Brokers, which has announced no restriction comparable to the 2026 retail caps. The strategy seeks pre-tax alpha alongside loss generation, and the firm does not run it for tax benefits alone.

Clients work directly with the team that builds the models, with no platform layer in between. An investor who prefers to keep an existing advisor can do that as well. The management fee runs from 1.00 to 2.00 percent by mandate, and full terms appear in our Form ADV Part 2A.

02

AQR Flex1,2

Approach
In-house alpha models
Minimum
Not published
Fee
Up to 2.50%1
Advisor fee
0.50% to 1.25%2
All-in management fee
Up to 3.75%2
Leverage
Up to 300/200
Custody
Multiple custodians
Access
Through an advisor

AQR is a systematic manager founded in 1998, and its research group wrote much of the published work behind tax-aware long/short investing. Flex is its long/short suite for taxable separately managed accounts.

Flex is distributed through advisors and wirehouses. AQR does not publish tier-level terms, and its Flex materials are restricted to investment professionals. Its Form CRS states that fees for retail separately managed accounts run up to 2.50 percent per year, negotiated between AQR and the advisor, with the advisor's own fee on top.

03

Quantinno2,3

Approach
Not disclosed
Minimum
Not published
Fee
Not published
Advisor fee
0.50% to 1.25%2
All-in management fee
Not published
Leverage
Not published
Custody
Multiple custodians
Access
Through an advisor

Quantinno is a quantitative manager focused on taxable investors, founded in 2018 by alumni of AQR's quantitative equity group. Its DEALS platform covers a core long/short extension, a transition strategy for concentrated positions, and a long/short overlay on holdings the investor does not want to sell. The firm describes its offering as personalized long/short solutions aimed at maximizing after-tax wealth.

DEALS is available through advisors, with no direct channel. Quantinno does not publish fee, minimum, or leverage terms. Third-party comparisons commonly report minimums of $1 million and up.

04

Aperio by BlackRock2,4

Approach
Factor-tilted indexing
Minimum
$1,000,000
Fee
0.55% to 0.90%4
Advisor fee
0.50% to 1.25%2
All-in management fee
1.05% to 2.15%2
Leverage
From 130/30
Custody
Fidelity and Schwab
Access
Through an advisor

Aperio built one of the first large direct indexing businesses and was acquired by BlackRock in 2021. Its long/short extension strategies add short positions to that harvesting engine, with composite history running since September 2022.

The strategies are available through advisors, with accounts custodied at Fidelity and Schwab. Aperio's Form ADV brochure discloses long/short fee schedules set by the account's gross exposure, running from 0.55 percent for configurations up to 150/50 to as much as 0.90 percent above them, charged on net account value. An advisor's own fee typically applies on top. Aperio suits an advised investor who wants a modest extension from a large direct indexing platform rather than a levered program.

05

Cache5,7

Approach
Sub-advised via Brooklyn Investment Group
Minimum
$1,000,000
Fee
0.50% to 1.00%
Advisor fee
None required
All-in management fee
0.50% to 1.00%
Leverage
Up to 200/100
Custody
Schwab
Access
Direct

Cache is a newer firm that began with exchange funds and added a tax-aware long/short product. The product is sub-advised by Brooklyn Investment Group, a Nuveen company, and custodied at Schwab. Cache describes the strategy as using a multi-factor alpha model that seeks pre-tax returns with tax-aware implementation. Investors can enroll directly online. The arrangement is self-directed. No advisor is involved, and the relationship is with the platform rather than with the sub-advisor's team. Selecting the configuration and coordinating the tax outcome stays with the investor.

Cache publishes its terms in full. Fees run from 0.50 to 1.00 percent by leverage tier, with a $1 million minimum. Schwab's April 2026 change caps new accounts at 200/100, which is now the top of Cache's range. The product fits an investor who wants direct enrollment at a retail custodian and does not need the larger configurations.

06

Frec6

Approach
Index tracking with a chosen tilt
Minimum
$100,000
Fee
0.50% to 1.30%
Advisor fee
None required
All-in management fee
0.50% to 1.30%
Leverage
Up to 250/150
Custody
Apex Clearing
Access
Direct

Frec is a direct-to-consumer platform that started in direct indexing and added long/short strategies in October 2025. Accounts clear through Apex, and enrollment is fully online. The arrangement is self-directed and automated. No advisor is involved, and the relationship is with the platform rather than with the people managing the strategy. Selecting the index, tilt, and leverage tier, and coordinating the tax outcome, stays with the investor.

Minimums start at $100,000, the lowest in the category, and rise with the leverage tier. Fees run from 0.50 to 1.30 percent. Apex has announced no cap, so Frec still offers 250/150 to new accounts. Frec opens the category to accounts smaller than the other providers accept. The tradeoffs are a young platform, a clearing firm rather than a bank-affiliated custodian, and a short live history.

Also Notable

Two recent entrants

Franklin Templeton Canvas8

Franklin Templeton added tax-aware long/short strategies to its Canvas platform in September 2025, starting with a US large cap 130/30. Canvas is an advisor platform, and the firm has said further leverage tiers will follow.

Parametric9

Parametric, part of Morgan Stanley, offers tax-managed long/short extension strategies through advisors. The strategies sit inside a platform known mainly for direct indexing.

Suitability

Matching the provider to the investor

No single provider suits every investor. Account size, channel preference, and the configuration sought decide most cases. For some investors another firm on this page is the better fit.

NinePointTwo

  • Accounts of $1 million and up
  • Configurations up to 300/200 for new accounts
  • A direct relationship with the team that builds and runs the models
  • A mandate customized around gains, risk tolerance, and the rest of the portfolio
  • Pre-tax alpha sought alongside the tax benefit

The direct platforms

  • Accounts below $1 million, which Frec accepts from $100,000
  • Comfort with online enrollment and a retail custodian
  • Comfort selecting and monitoring the configuration without an advisor
  • Configurations at or below 200/100 at Cache, or 250/150 at Frec
  • A standardized product over a customized mandate

The advisor-channel managers

  • An advisor already in place to select and monitor the manager
  • Access to AQR, Aperio, or Quantinno through that relationship
  • Acceptance of an advisor fee layered on the manager's fee
  • Comfort delegating configuration choices to the advisor
  • Terms negotiated through the advisor rather than published
Why NinePointTwo

Why work with NinePointTwo?

NinePointTwo Capital was founded as a quantitative investment firm specializing in long/short strategies. Below are some aspects that differentiate our tax-aware long/short offering.

01

Direct access to the team

Clients work with the investment professionals who build and run the models. No platform or distribution layer sits between the client and the strategy.

02

A single fee layer

No advisor is required, so a direct client pays one management fee. An investor who values an existing advisor relationship can keep it.

03

A mandate calibrated to the client

Leverage, tracking error, benchmark, and stock universe are set around each client's circumstances. The calibration is revisited as gains, risk tolerance, and the broader portfolio change.

04

In-house alpha models

The return forecasts and risk models behind Prism are built and run inside the firm. The strategy seeks pre-tax alpha alongside loss generation.

05

Long/short is the firm's core work

NinePointTwo also runs similar long/short equity strategies with no tax objective. The investment case is meant to stand on its own, with the tax benefit alongside.

06

Advisor and manager in one

The firm advises on the setup itself. That covers tracking error, leverage, benchmark and stock universe, wash sale management, and planning for an eventual unwind. The same team then manages the strategy, from stock selection to proprietary risk modeling and research.

Common Questions

FAQ
What is a tax-aware long/short strategy?

It is a separately managed account that holds long and short positions around a benchmark index. The short side lets the account harvest losses in most markets, including rising ones, while overall exposure stays close to the index. Harvested losses may offset gains elsewhere, and the strategies seek pre-tax alpha as well. Loss generation depends on market conditions and is not guaranteed.

Do all providers run the same kind of strategy?

No. The approach column summarizes the difference. NinePointTwo and AQR are quantitative managers that also run tax-agnostic hedge fund strategies, and their tax-aware accounts draw on in-house alpha models that forecast returns. Cache's product is sub-advised by Brooklyn Investment Group, a Nuveen company, and is described as using a multi-factor alpha model with tax-aware implementation. Frec tracks a chosen index with a growth, quality, or value tilt the investor selects, and Aperio extends its factor-tilted direct indexing with short positions. Quantinno, founded by AQR alumni, does not publish its methodology, and describes its platform as personalized long/short solutions aimed at maximizing after-tax wealth. Each characterization is drawn from the provider's own published descriptions. The distinction matters because the long/short extension should be an investment an investor wants on its own merits, with the tax benefit alongside.

What do these strategies cost?

Management fees in the category run from roughly 0.50 to 2.50 percent, and some managers disclose them only through advisors. Financing, stock borrow, and trading costs apply on top and grow with the size of the extension. Advisor-channel products add the advisor's own fee, which published research puts near one percent for many accounts, declining with size. Quoted cost figures follow different conventions, so comparisons need care.

What are the typical minimums?

Published minimums run from $100,000 at Frec to $1 million at most of the providers listed here, and AQR and Quantinno do not publish one. Typical accounts often run larger than the stated floor.

What did the 2026 custodian changes do?

Schwab capped new enrollments and incoming transfers in tax-aware long/short strategies at 200/100 leverage in April 2026. Fidelity paused new long/short account openings entirely, beginning in late 2025 and indefinitely from early 2026. Providers custodied outside those platforms, including Frec at Apex and NinePointTwo at Interactive Brokers, were not affected.

Is an advisor required?

It depends on the provider. AQR, Aperio, and Quantinno distribute through advisors and wirehouses. Cache, Frec, and NinePointTwo accept investors directly, and NinePointTwo also works alongside an existing advisor when a client prefers that.

Is more leverage better?

Not by itself. Larger extensions can generate more losses, and they carry more tracking error and higher financing costs at the same time. The configuration should match the investor's gains, risk tolerance, and time horizon rather than default to the largest available.

Why does this page exclude performance figures?

Performance presentations in this category are mostly hypothetical or simulated, and each firm's figures rest on its own assumptions. Placing them side by side would imply a precision the underlying numbers do not carry. Each provider shares its own materials and assumptions directly with prospective clients, and NinePointTwo does the same.

Market Context

Custodian limits now shape access

Schwab · April 2026
200/100

New enrollments and incoming transfers capped at 200/100 leverage.

Fidelity · since late 2025
Paused

New long/short account openings paused, indefinitely from early 2026.

Most tax-aware long/short accounts for individuals sit at retail brokerages. In April 2026, Schwab capped new enrollments and incoming transfers in these strategies at 200/100 leverage. Fidelity went further and paused new long/short account openings altogether, a pause that began in late 2025 and became indefinite in early 2026.7

The changes matter because loss generation and tracking error both scale with the size of the long/short extension. A provider whose custodian caps new accounts at 200/100 cannot offer the larger configurations, regardless of what its models support.

Two of the providers on this page are outside these limits. Frec clears through Apex, which has announced no comparable restriction. NinePointTwo custodies accounts at Interactive Brokers, which has announced no comparable restriction either, so its full range remains open to new accounts.

Sources

Facts about other providers are drawn from the public materials below. Each entry lists the date it was last checked.

  1. 1.AQR Capital Management, Tax-Aware Investing pages at aqr.com, and AQR's Form CRS dated March 31, 2026, published at aqr.com, which states that AQR typically charges retail investors up to 2.50 percent per year, negotiated between AQR and the client's advisor. AQR restricts its Flex strategy materials to investment professionals and does not publish tier-level terms or minimums for specific strategies. The firm's 1998 founding and the up-to-300/200 configuration range are from its public materials and press coverage. Checked August 2026. aqr.com
  2. 2.The advisor fee range shown for the advisor-only channels, in the table and the profiles, is illustrative rather than any provider's quoted terms, and the all-in management fee rows that include it are illustrative to the same extent. All-in management fees exclude financing, borrow, and trading costs, which are additional at every provider. Kitces Research reports median advisory fees of 1.00 percent of assets on accounts up to $1 million, stepping down to roughly 0.80 percent at $5 million. Cerulli Associates projects an average fee of 0.66 percent for clients with $10 million or more by 2026, as reported by Financial Planning. Actual advisor fees vary by firm, account size, and services provided. Checked August 2026. kitces.com
  3. 3.Quantinno, quantinno.com, including its description of personalized long/short managed account solutions aimed at maximizing after-tax wealth. Fee, minimum, and leverage terms are not published there. Reported minimums are from the Cache and Frec comparisons cited below. The firm's 2018 founding and founder background are from a published PrimeAlpha interview with Quantinno's chief investment officer. Checked August 2026. quantinno.com
  4. 4.Aperio (BlackRock), tax-managed equity SMA and long/short strategy pages at blackrock.com, and Aperio's Form ADV Part 2A brochure dated March 31, 2026, available through adviserinfo.sec.gov. The brochure discloses long/short advisory fees by gross exposure level, charged on net account value and negotiable: a 0.20 or 0.40 percent short advisory fee atop base index fees of 0.35 to 0.50 percent, which puts a US-benchmark configuration at or below 200 percent gross exposure at 0.55 percent, and a separate flat schedule of 0.45 or 0.90 percent for certain factor-tilted long/short strategies. The range shown starts at the composed 0.55 percent rate because the brochure does not specify which strategies receive the flat rate. Aperio's fact sheet for the US Large Cap 130-30 Quality Value strategy, no longer available at aperiogroup.com, listed the same 0.55 percent and a September 2022 composite inception, and the ~0.55 percent figure is also reported in the Frec comparison cited below. The $1 million minimum is as reported in the Frec comparison, and custody at Fidelity and Schwab is as reported in industry press. Aperio's Form CRS describes its services as primarily offered indirectly through third parties such as wealth managers and consultants. Aperio's 1999 founding and BlackRock's 2021 acquisition are from BlackRock's announcement and public company profiles. Checked August 2026. blackrock.com
  5. 5.Cache, product and provider comparison pages at usecache.com, including its published fee schedule, minimum, custody, sub-advisor, and the description of the strategy's multi-factor alpha model. The firm's 2022 founding is from its published company history, and Brooklyn Investment Group's acquisition by Nuveen is from Nuveen's 2025 announcement. Checked August 2026. usecache.com
  6. 6.Frec, product pages and provider comparison at frec.com, updated July 2026, including its published fees, minimums, leverage tiers, strategy description, Apex Clearing custody, and the firm's 2021 founding. Checked August 2026. frec.com
  7. 7.Schwab's April 2026 notice capping new tax-aware long/short enrollments and incoming transfers at 200/100, and Fidelity's pause on new long/short account openings, as reported by AdvisorHub, InvestmentNews, and the Frec comparison cited above. Checked August 2026. advisorhub.com
  8. 8.Franklin Templeton, press release of September 23, 2025, announcing tax-aware long/short strategies on the Canvas platform. Checked August 2026. businesswire.com
  9. 9.Parametric Portfolio Associates, long-short equity strategy pages at parametricportfolio.com. Checked August 2026. parametricportfolio.com

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Disclosures

Information about other providers is drawn from public filings, websites, and press coverage as of the dates in the sources list. Terms change, and this page may lag them. Confirm current terms directly with each provider. The advisor fee range shown for advisor-channel providers in the profiles is an illustrative range drawn from published advisory fee benchmarks rather than any provider's quoted terms, and the all-in management fee rows that include it are illustrative to the same extent. An investor who works with NinePointTwo through an advisor pays that advisor's fee as well. NinePointTwo is not affiliated with any other provider named on this page and does not endorse them. No other provider has reviewed or approved this material.

NinePointTwo earns management fees on its own strategies and earns nothing when an investor chooses another provider. That is a material conflict of interest in any comparison we publish. Our Form ADV Part 2A describes our fees and conflicts in full.

This page is informational and is not an offer, a solicitation, or investment, tax, or legal advice. It is not a recommendation of any provider, including NinePointTwo. Whether any strategy fits depends on facts specific to the investor.

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.

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A conversation covers how Prism compares on the dimensions above and which configuration fits your situation. Where an investor is better served by another provider on this page, we say so.

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