Biotech Values

[Rocky3]

Hedge funds are “institutions.” Why wouldn’t they care about capital-gains taxes?

Really? How many hedge funds have you dealt with? Most of the time I am dealing with them is for charitable foundations, which are tax-free. But even on the private side, the hedge funds are all about pre-tax returns. They are generally short-term traders, and very rarely would have anything that is a long-term gain.

Mutual funds on the other hand do have to report after tax returns. But even there, the before tax number is what drives rankings. It would be the larger "long-term" mutual funds (Dodge and Cox, American Funds, etc) that might be the only ones that have enough bulk to get the attention of the company, and, since they are not the true tax paying entity, I doubt that they do anything.