medium · CFA Level I ethics
Julian, a portfolio manager at Oakridge Capital, intends to sell a significant position in Helion Rail for his fund tomorrow due to deteriorating fundamentals. Julian also holds Helion Rail in his personal brokerage account and executes a sale today to realize a tax loss before the fund's transaction.
According to Standard VI(B) Priority of Transactions, which statement best describes Julian's conduct?
- Julian did not violate the Standard because tax-loss harvesting is a personal financial planning activity exempt from priority rules.
- Julian's actions are permissible provided the size of his personal trade is less than 1% of the fund's daily volume.
- Julian violated the Standard because he traded ahead of the fund to protect his personal financial interest.
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