#United States #New York #Neuberger Berman #Custom Direct Investing #Tax-managed strategy

Neuberger Berman's Innovative Long/Short Strategy

Neuberger Berman, a leading private and independent investment management firm, has recently launched a new tax-managed long/short strategy as part of its ongoing expansion of the Custom Direct Investing (NB CDI™) platform. This strategic addition aims to improve both pre-tax and after-tax returns for clients and addresses the increasing interest in long/short investment approaches.

The firm announced that the first portfolio under this new strategy was initiated in May, showcasing its commitment to adapting to market demands and client needs. The long/short strategy employs leverage, set at 130% long and 30% short, which seeks to enhance returns while offering a mechanism for better tax liability management.

As of May 30, 2025, Neuberger Berman manages around $6.6 billion in assets within the NB CDI™ platform. This significant number underscores the firm's robust standing in the investment management industry, where high-net-worth (HNW) and ultra-high-net-worth individuals seek tailored solutions that align with their financial goals.

The decision to launch this long/short strategy is partly due to feedback from wealth clients and endowments, who have increasingly sought assistance in managing their portfolios with a tax-conscious outlook. Scott Kilgallen, Managing Director and Head of North American Intermediary at Neuberger Berman, highlights the critical need for investment strategies that accommodate changing tax landscapes while generating alpha—a measure of excess return over a benchmark—through what is termed 'tax alpha'.

Blending Quantitative and Fundamental Research

The uniqueness of Neuberger Berman's approach lies in its combination of quantitative and fundamental insights, aimed at boosting expected returns. The firm provides a comprehensive tax-aware toolkit for clients across the United States and Canada, which includes:

• - Tax-managed long-only equity portfolios, spanning across core, fundamental active, and quantitative models.
• - Tax-managed long/short strategies developed specifically to fit clients' unique circumstances.
• - Options strategies crafted to manage concentrated stock positions effectively.

This thorough and nuanced approach to portfolio management is essential for clients who must navigate the complexities of taxation on their investments. Having a wealth manager that understands these aspects lends peace of mind, particularly for high-net-worth individuals looking to optimize their investment performance while minimizing tax liabilities.

A Legacy of Excellence and Innovation

Founded in 1939, Neuberger Berman has built a stellar reputation as a private, employee-owned investment manager dedicated to providing unmatched service and performance. With over 2,800 employees in 26 countries, the firm manages approximately $515 billion across diverse portfolios that encompass equities, fixed income, private equity, real estate, and hedge funds for a global clientele of institutions, advisors, and individuals.

Moreover, Neuberger Berman's consistent recognition by Pensions & Investments as one of the best places to work in money management for over a decade reflects its commitment to fostering a constructive and engaging workplace culture. This dedication is evident in their investment approach, which is characterized by active management, rigorous fundamental research, and engaged ownership.

In conclusion, Neuberger Berman’s new tax-managed long/short strategy is a significant addition to its offerings, catering specifically to the needs of sophisticated investors seeking to enhance their portfolio's attention to tax implications. As the tax environment evolves, customizable and adaptive investment strategies are paramount for investors committed to achieving optimal financial outcomes. For further information, visit Neuberger Berman’s official site at www.nb.com.