The Long Game Ins & Outs of Long Short Direct Indexing
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Feb 6, 2026 Brent Sullivan, a tax and wealth planning pro for high-net-worth clients and organizer of Basis Northwest, breaks down long-short direct indexing. He explains how it differs from long-only strategies. The conversation covers tax-loss harvesting stories, financing and margin mechanics, who benefits most, and the operational and jurisdictional risks to watch.
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Vet The Manager First
- Evaluate the manager's active process before using long-short strategies.
- Brent Sullivan says if you don't like the manager's philosophy, the strategy isn't for you.
200/100 Client Used Losses To De‑Risk
- One client used a 200/100 long-short portfolio to de-risk a concentrated holding and generate losses.
- The client traded international exposure and heavy losses for tax offsets and diversification.
Clients Use Direct Indexing To Offset Sales
- Thomas shared a client who sells in Q1 each year and routes proceeds into long-short direct indexing to offset gains.
- Another client had $5M invested and realized $900k in losses in six months.