{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,10,14]],"date-time":"2026-10-14T11:48:51Z","timestamp":1791978531706,"version":"4.4.0"},"posted":{"date-parts":[[2026]]},"group-title":"SSRN","reference-count":0,"publisher":"Elsevier BV","license":[{"start":{"date-parts":[[2026,1,1]],"date-time":"2026-01-01T00:00:00Z","timestamp":1767225600000},"content-version":"unspecified","delay-in-days":0,"URL":"https:\/\/www.uspto.gov\/ip-policy\/copyright-policy\/copyright-basics"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"abstract":"<jats:p>The asset-location literature tells a household to shelter its tax-inefficient assets and keep its tax-efficient ones in the taxable account, and derives that rule for assets that pay interest, dividends and capital gains. Advisers run stranger sleeves. A direct-indexing sleeve manufactures net capital losses. A tax-aware long-short sleeve manufactures far more of them, and no retirement account can hold it. A put-write sleeve earns ordinary interest on its collateral and short-term gains on its premiums. A factor sleeve realizes gains through turnover. We write the location problem for these four sleeves across a taxable account, a traditional IRA and a Roth as a convex piecewise-linear tax cost whose kink is where the taxable account's short-term losses and gains net to zero, and solve it. Once we measure balances after tax the IRA and the Roth are one account, so the problem reduces to what sits in the taxable account. The marginal cost of a sleeve there is its character cost plus a regime-dependent price on its net short-term flow, and a harvested loss can never be worth less than the recapture it creates, which bounds that price from below. Under that bound the ranking is the same in every regime and for every household we consider: long-short, direct indexing, factor tilt, put-write. The textbook order survives, and a 20-year simulation and an exhaustive grid agree it is the optimum. What the model changes is the sizing decision behind the order. With no outside gains a household running direct indexing and long-short holds more losses than it can use, and the long-short sleeve pays only through pre-tax alpha; with outside short-term gains its tax benefit is about 184 basis points per dollar of wealth shifted into it, up to a matched-book size with a closed form. Location is worth 12 to 41 basis points a year over a pro-rata mirror and 16 to 27 over the growth-to-Roth heuristic; the simulation puts the gaps at 19 to 32 and 33 to 40.<\/jats:p>","DOI":"10.2139\/ssrn.7608401","type":"posted-content","created":{"date-parts":[[2026,10,14]],"date-time":"2026-10-14T11:01:21Z","timestamp":1791975681000},"source":"Crossref","is-referenced-by-count":0,"title":["Which Sleeve Goes Where? Asset Location for Direct-Indexing, Long-Short, and Option-Income Mandates"],"prefix":"10.2139","author":[{"ORCID":"https:\/\/orcid.org\/0009-0000-2439-0566","authenticated-orcid":true,"given":"Anirban","family":"Majumdar","sequence":"first","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"78","container-title":[],"original-title":[],"deposited":{"date-parts":[[2026,10,14]],"date-time":"2026-10-14T11:01:21Z","timestamp":1791975681000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.ssrn.com\/abstract=7608401"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2026]]},"references-count":0,"URL":"https:\/\/doi.org\/10.2139\/ssrn.7608401","relation":{},"subject":[],"published":{"date-parts":[[2026]]},"subtype":"preprint"}}