IRS Position Holds

The most likely path is that the IRS and Treasury maintain their position that the AQR-linked structure generated artificial tax results and can be challenged for prior years. Hedge funds and advisers respond by increasing reserves, revising partnership allocations, and preparing for audits rather than expecting a quick reversal.

Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.