Really bad take. Tl;dr DATs are the worst of hedge funds and SPACs thrown into a tax inefficient vehicle
First, DATs have to pay corporate income tax on their staking yield, ETFs do not
Second, DATs have absurd fees (to pay for fat cat exec comp), ETFs do not
Third, DATs would have to pay corporate income tax on any appreciation in their assets if they have to sell (for example, to buyback stock), ETFs do not
Fourth, DATs are absurdly opaque in their shares outstanding and value of assets held, while ETFs are notoriously transparent
DATs are like taking Warren Buffet’s criticism of hedge funds vs ETFs, and making the hedge fund returns even worse by making them tax inefficient. DATs are wanna be hedge funds - often with comp similar to the “2 and 20” model, but even worse because the “20” isn’t just on performance, it cuts into principal (similar to SPACs).
DATs are the sins this industry will pay most dearly for in the next bull, when the administration turns over and it becomes abundantly clear how badly public market investors got fleeced
First, DATs have to pay corporate income tax on their staking yield, ETFs do not
Second, DATs have absurd fees (to pay for fat cat exec comp), ETFs do not
Third, DATs would have to pay corporate income tax on any appreciation in their assets if they have to sell (for example, to buyback stock), ETFs do not
Fourth, DATs are absurdly opaque in their shares outstanding and value of assets held, while ETFs are notoriously transparent
DATs are like taking Warren Buffet’s criticism of hedge funds vs ETFs, and making the hedge fund returns even worse by making them tax inefficient. DATs are wanna be hedge funds - often with comp similar to the “2 and 20” model, but even worse because the “20” isn’t just on performance, it cuts into principal (similar to SPACs).
DATs are the sins this industry will pay most dearly for in the next bull, when the administration turns over and it becomes abundantly clear how badly public market investors got fleeced
@0xBreadguy @tarunchitra your take on the last @_choppingblock pod was similarly awful - see above
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