Patent ID: 6832209
Filing Date: 2004-12-14
Classification: G06Q

Abstract:
A tax efficient investment method comprising:a) organizing a pass-through entity into which a group of investors provide capital; b) running a computer program which projects expected future performance of financial instruments and displays results; c) purchasing for the pass-through entity, from the financial instruments evaluated by the computer program, a first group of instruments which is expected to perform better than a market consisting of the population of financial instruments of the type evaluated and selling short a second group of instruments which is expected to perform worse than said market; d) funding the purchase of the first group of financial instruments with the proceeds from the short sales and with borrowings secured by the purchased financial instruments along with capital from the pass-through entity whereby the ratio of the sum of the absolute values of the first and second groups of instruments to the capital from the pass-through entity is at least 200 when expressed as a percent; e) selling financial instruments from the first group or covering short positions from the second group to produce short term capital losses which exceed the sum of short term capital gains realized from the sale of financial instruments from the first group and covering of short positions from the second group; and f) making in-kind distributions of investments to investors withdrawing from the pass-through entity.