You probably know that a well-executed hedge fund is a valuable addition to your portfolio. Hedge funds can generate significant returns not closely tied to global stock and bond markets, providing necessary diversification in these volatile times.

However, did you also know that you can wind up paying taxes on “phantom income,” depending on whether the manager of your fund is classified as a trader or an investor?

This and other hedge fund pitfalls you need to be aware of are discussed in the latest edition of Worth Magazine by MBAF’s wealth advisors, Are Hedge Funds a Suitable Investment for Taxable Investors? It is a must read for anyone with considerable capital invested in hedge funds.

For more than 20 years, Worth Magazine has been a trusted source for information relevant to the financial, legal and lifestyle issues unique to high net worth individuals. MBAF is proud to contribute to this valuable resource.

Taxation and compliance issues for high net worth individuals can be quite complex. If you would like to benefit from our expertise in these areas, or if you have further questions on this Advisory, do not hesitate to contact our Private Client Wealth specialists, or call us at 1-800-239-1474.