Hedge Fund Pain Compounded as Surprise Tax Hit Awaits Investors
- Point72 could be affected by law’s new interest deduction cap
- Tax lawyer says IRS rules create ‘worst possible situation’
Photographer: Andrew Harrer/Bloomberg
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A surprise tax blow could be looming for investors in hedge funds such as Point72 Asset Management.
President Donald Trump’s tax law curbs the coveted deductions that most businesses were allowed to take for the interest they pay on loans. During the tax overhaul debate, private equity firms were the fiercest critics of the provision, arguing it would change the calculus for their deals that often rely on debt.