It sounds like a lot of trades are made, what brokers do you use, what are the broker fees and what about tax implications?
We use Interactive Brokers. They have some of the lowest transaction fees in the industry and provide superior execution with excellent fills. They also provide a cutting edge trading platform and software which helps to minimize overhead associated with strategy management and ultimately our management fees. Tax implications are minimized as follows: First, we do not usually sell equity shares. Second, most of the hedging transactions offset each other. Third, the dividends plus 60% of the capital gains are taxed at 15% whereas the remaining 40% are short-term gains taxed at ordinary income rates.
