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Kirsten Bischoff, Opalesque New York: On Tuesday, hedge fund professionals met in New York for the final session in the series of four Opalesque Hedge Fund Workshops covering tax and legal issues. The morning’s discussions, which covered “Alternative Alternative Investments” focused on options strategies, commodities and hard assets, and infrastructure investing.

Economies of options trading Max Ansbacher, JD of Ansbacher Investment Management and author of three books on investing including “The New Options Market, Fourth Edition” opened the morning with a discussion on investment strategies with options as the principal source of income. The tax efficiency advantage which Ansbacher’s strategy exploits is based on the fact that 60% of all future’s and option’s trading income is long-term gain and subject to 15% minimum tax rate. The balance for many investors is short term. Therefore, net after tax income is 18% more than the same amount of ordinary income to investors in the top bracket. For example a 2004 gain of 21.67% equals an after tax return of 25.57% from ordinary income.

Commodities and hard assets Derek van Eck, MBA, Chief Investment Officer of Van Eck Global led the first part of the commodity fund topic. Many believe that commodities will continue to increase in price over the next few years and van Eck reviewed several of the growing middle class markets in countries whi......................

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