What is a Long Short strategy?

1. Gain or loss on a short sale is capital, and the wash-sale rule applies to short sales — IRS Publication 550, Investment Income and Expenses, "Short Sales" (IRC §§ 1233, 1091(e)). https://www.irs.gov/publications/p550

2. Capital losses offset capital gains — IRS Topic No. 409, Capital Gains and Losses (IRC § 1211(b)). https://www.irs.gov/taxtopics/tc409

3. A margined or short position can lose more than the amount deposited — FINRA Rule 2264, Margin Disclosure Statement ("You can lose more funds than you deposit in the margin account"); SEC, Office of Investor Education and Advocacy, "Stock Purchases and Sales: Long and Short." https://www.finra.org/rules-guidance/rulebooks/finra-rules/2264 · https://www.investor.gov/introduction-investing/investing-basics/how-stock-markets-work/stock-purchases-and-sales-long-and

4. Margin lending uses the account as collateral and exposes investors to larger losses — SEC, Office of Investor Education and Advocacy, "Margin Account"; FINRA, Margin Regulation. https://www.investor.gov/introduction-investing/investing-basics/glossary/margin-account · https://www.finra.org/rules-guidance/key-topics/margin-accounts

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Backtested Performance
Backtested performance represents hypothetical returns and does not reflect trading in actual client accounts. Back-tested performance also differs from actual performance because it is achieved through the retroactive application of portfolios designed with the benefit of hindsight. As a result, the portfolios used in the back-testing process may be changed from time to time and the effect on hypothetical performance results could be either favorable or unfavorable. As a simulation methodology, in general, backtesting has certain limitations. It does not involve or take into account financial risk and does not take into account that material and market factors may have impacted investment decision making, all of which can adversely affect actual trading results and performance. Back-tested performance also does not represent trading costs or the impact of taxes.

Tax liabilities will vary for each client and can result from various activities in taxable and tax-deferred accounts. These activities include, but are not limited to rebalancing of portfolios, any sale of securities, tax-loss harvesting, interest, dividends and capital gains from securities held in taxable accounts. There are also tax liabilities associated with distributions from tax-deferred accounts. Not all Vise clients follow Vise’s recommendations and depending on the unique and changing client and market situations, Vise or the primary adviser of the client may further customize a Vise portfolio for particular clients so that actual client accounts differ materially from those shown.

Further, simulated performance does not reflect the impact that economic and market factors might have had on the advisor’s decision making if the advisors were actually managing client money. As a result of these and other variances, actual performance for client accounts have been and are likely to be materially different and may be lower than the results shown in the back-tested performance.

Backtesting Methodology
The backtesting for Vise-managed strategies employs Vise’s security selection and weighting model based on financial data and prices, according to Vise’s proprietary methodology. Vise-managed strategies use a multi-factor approach to security selection and weighting based on securities’ size, volatility, relative price and profitability fundamentals. For each strategy, factor scores are calculated from a set of selected fundamental factors and combined to create a multi-factor score and universe rank for each security. This relative ranking drives security selection and weighting decisions. The simulated performance shown includes the reinvestment of dividends but does not reflect the deduction of investment advisory fees and other expenses. A client’s investment returns will be reduced by the advisory fees or other expenses it may incur. Fees are fully described in Vise’s Form ADV brochure.