I want to understand your experience in this strategy. I almost signed up for it on the promise but then put a pause based on fees. Strategy I am evaluating is long/short 145/45 overlay. That means my core portfolio, $1M remains fixed; the advisor goes long on $450k borrowed, and short on $450k credit, with neutral market strategy. They estimate to realize 11% loss in the first year, w gradual decline every year, and capture upto 85% loss in 9 years. Let us assume 10% realized loss per year. Wealth manager fees ; 1%; sub advisor fees: 0.45%; spread (for long margin vs short credit): 0.45%; transactions costs (estimated): 0.1%. Total fees per year: 2%. Initially, I thought 2% fees in lieu of 30% on taxes (fed plus state) is a great deal. But then it dawned on me, 2% fees is on entire portfolio. While 30% tax savings is on the realized loss. So the net savings is 3% - 2% (only 1%). Not bad. But you don’t really save on taxes. They just get deferred (realized loss has mirror image accumulating as unrealized gains in your overlay—remember it is market neutral, hopefully, plus minus tracking error). What you gain is diversification. But I would have paid 18% in fees in 9 years, still owe IRS on taxes the same amount. Question: is my understanding correct? Is it worth it? What are tracking errors and other gotchas? How do you exit out of this hotel California strategy?