Cache Long/Short | Tax-Aware Strategy for Concentrated Stock

Cache Long/Short

An institutional strategy to diversify your winning stocks and manage taxes.

Diversify concentrated stock, tax-efficiently
Reduce concentration gradually while generating tax offsets, without selling all at once.
Offset realized capital gains
Had a big year from stocks, RSUs, or active trading? Harvest losses to offset those gains, with any excess carried forward.
Prepare for an upcoming liquidity event
Build potential tax offsets ahead of an IPO or planned diversification, in coordination with your tax advisor.
Position for after-tax outcomes
Use it as a “long-short direct indexing” solution. Manage gains over time, while staying invested in the market.

A step-by-step overview of how the Cache Long/Short tax-loss harvesting strategy is structured and managed over time.

Start with your portfolio
You begin with your concentrated stock, plus any other assets you'd like to include — ETFs, mutual funds, or cash. These form the core of your portfolio. The more you contribute, the faster the strategy can work.
Add long and short extensions
The size is determined on your risk tolerance. Larger extensions can help to accelerate diversification, but also increase overall risk and tracking error. Smaller ones are intended to take a more gradual approach.
Harvest losses as markets move
As markets move in either direction, the long and short extensions generate ongoing opportunities to realize losses. Those losses offset the gains from selling your concentrated stock — so you diversify tax-efficiently over time.
Simplify on your timeline
When you're ready to exit, you can choose to gradually dial back the extensions. What remains is a diversified, long-only portfolio. Unused losses can potentially carry forward to offset future gains from rebalancing, distributions, or liquidity events.

Held at Schwab, in your name
You own the underlying securities directly, in your own brokerage account, not a pooled fund.
Expert investment management
Trading, factor rebalancing, and tax-aware execution are handled by BKLN’s experienced portfolio management team.
Self serve-onboarding
Open and fund your account entirely online, on your own timeline. See your portfolio and activity with a real-time digital experience.
Automated monitoring
Built on a sophisticated tax-aware engine that seeks to avoid wash sales against stocks you hold in your portfolio.

Higher Risk
Extensions use margin borrowing and short sales, which increase risk, especially during volatile markets.
Performance Variability
Returns may deviate from benchmark performance, especially at higher borrowing levels.
Losses aren’t guaranteed
Loss harvesting is not guaranteed, and varies by market conditions.

Cache Long/Short is designed to help modern investors manage their tax-aware investments with ease.

Design your portfolio and extensions
Choose your goal, select your benchmark and set your extension size (borrowing %). You’ll also go through a risk assessment to ensure you are a fit.
Set up your Schwab account
Open your managed Schwab account (held in your name, joint, or trust) and fund the account with your core assets.
Harvest and transition gradually
Let the long/short engine work for you. The portfolio runs continuously, losses are harvested systematically, as volatility may create opportunities to realize tax offsets over time.

Access all the tools you need to diversify your concentrated stocks in one place.

"Cache solved a problem I'd been facing for years - how to diversify after over a decade of accumulating my previous company's stock without a massive tax hit." - Client: Anonymous, Ex-Engineer, Amazon
"Cache brought simplicity and transparency to the exchange fund process that was traditionally complex and opaque." - Client: Kranthi Ravi, Formerly Sr. Director, ServiceNow