Investing.com -- Gabe Plotkin, the hedge fund manager and Charlotte Hornets co-chairman, is planning to convert some of his personal assets into an exchange-traded fund using a tax-deferral strategy, according to Bloomberg News, citing people familiar with the matter.
Plotkin will provide the majority of initial securities for the Snowball ETF, said the people, who asked not to be identified because the information is private. A filing for the ETF was first made in December.
The fund will be created through a 351 conversion, a process that transforms an existing portfolio of assets into an ETF. The practice has gained popularity on Wall Street due to its potential tax advantages.
Plotkin shut down his hedge fund following a confrontation with meme-stock traders before purchasing a stake in the NBA team.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.