How IT Works

Three levers, compounding together.

Built on DGS's systematic equity framework, Apex Long-Short provides advisors greater flexibility for clients who want to amplify pre-tax alpha, control equity-market exposure, and maximize tax savings.

EQUITY

Flagship

Amplify the engine

Amplify the strategy’s pre-tax alpha by magnifying positive views on the long side of the portfolio and shorting less favorable stocks.

Strategy brief

EQUITY

Flagship

Control equity exposure

Benefit from DGS’s systematic equity strategy without needing to take on any net dollar equity market exposure.

Strategy brief

EQUITY

Flagship

Maximize tax benefits

Use the strategy's greater notional exposure to significantly improve tax benefits relative to a long-only strategy.

Strategy brief

Why it earned its place as DGS's flagship.

FIGURES AS OF Q4 · 2024

Adoption

#1

The most-allocated DGS strategy among independent RIAs and family offices.

Notional

560%

Combined long + short exposure — the highest in our peer set of systematic L/S managers.

Fee

0.3% - 1.5%

Significantly lower fees than comparable peers in the industry.*Estimated Range

Minimum

$1M

Lower account minimum than the standard $3M institutional floor.

Best fit Clients

Three Applications. One framework.

Apex is delivered in three configurations, depending on whether your client is entering with a concentrated appreciated position, migrating a legacy portfolio that has run out of runway, or planning around large capital gain events.

APEX DIVERSIFY

For wealth concentrated in a single position.

For clients whose wealth is concentrated in a single appreciated position and needs a more tax-aware path to diversification.

Public-company executives
Tech operators and founders
Clients with low-basis appreciated holdings

APEX REVIVE

For legacy portfolios that ran out of tax runway.

For clients with appreciated legacy assets or portfolios that have become harder to improve tax-efficiently.

Legacy low-basis portfolios in need of restructuring
Direct indexing accounts with diminishing loss-harvest yield
Inherited portfolios with embedded gains and broad drift

APEX TAX SHIELD

For large capital gain events.

For clients with large realized or expected capital gains, especially where tax impact is a major planning concern.

Business sale and large liquidity event
Hedge fund managers and investment bank partners
High-income clients in high-tax states

COMPARISON

Why long-short goes beyond traditional long-only.

Traditional long-only strategies meet the needs of many clients but are less effective when tax constraints dominate. APEX Long-Short offers higher expected pre-tax alpha and more loss-harvesting opportunities.

Traditional Long-Only (v1.0)

DGS Long-short Engine (v2.0)

Loss Generation capacity

Limited to Initial Capital (1x)

Exponentially scalable ( up to 5x )

Speed of Harvesting

Requires years to offset major events

Designed for rapid, massive year-one offsets

Market Trend Dependency

Requires market dips to harvest losses

Short side perpetually harvests losses even in roaring bull markets

Equity Risk Control

Locked at 100% market Exposure

Fully dialable down to Market Neutral ( 0% )

WHY DGS

Why advisors choose DGS Capital for long-short.

Decades of experience in systematic, tax-efficient investing.

A +10-year track record of building and running systematic, tax-smart investment strategies.

Lower fees, higher leverage than peers.

A cost-efficient structure delivering greater leverage flexibility for clients with suitable needs.

Flexible benchmark and strategy design.

Preconfigured systematic strategies to portfolios built around the advisor's own model.

Customized market beta to fit the client.

Tailored net exposure anywhere from full equity participation to market-neutral structures to meet client needs.

REAL CASE

A real long-short case, worked end-to-end.

CASE STUDY · APEX DIVERSIFY

$1.16M expected tax savings and 48% losses realized.

The client and his partners sold the majority of their long-held business at a valuation of over $50M. Each of the four partners received a check of $7.8M — with a capital gain liability of $7.6M.

NET CASH FLOWS

$4.2M

Legacy Equities
incl $2.0M unrealized gains

$6.2M

Cash Deposit

$10.4M

Total

Strategy Details

Global Equities
Multi Factor
70% Equity Exposure

150% Long, 80% Short

STRATEGY PERFORMANCE ( NET OF FEES )

Equity Portfolio Return 38.8%

Total Portfolio ( 70% Equity / 30% Cash )25.8%

Benchmark (Global Equities)27.7%

$6.2M Cumulative losses realized

9 MOTime in Strategy

$1.16MExpected tax Savings

48%Losses realized as % of deposit

* Results depend on market conditions, holding period and individual circumstances. Past performance does not guarantee future results. See disclosures.

We first partnered with DGS Capital in 2016, and they have been instrumental in our firm's growth ever since. As our client's needs have become more sophisticated, utilizing DGS's direct indexing platform to customize client portfolios has allowed us to offer solutions we could not have built on our own. Most of our clients work in the technology industry, and many have large unrealized gains in their company stock. The daily loss harvesting at DGS has significantly boosted after-tax returns for our clients while simultaneously allowing us to diversify out of concentrated stock positions. Enhancing the factor tilts compared to the mutual fund strategies we previously used has also been a big upgrade for our clients. Their service is as responsive and thoughtful several years later and we are glad we can treat them as an extension of our own team.

Michael P.

Region: Northeast

$100M - $500M

AUM

1 - 9

Firm Size

DGS has done an excellent job for our clients and our firm. We chose to work with them only after going through the due diligence of multiple providers, including legacy firms and some newer entrants in this space. We could not find any other provider that could match DGS's capabilities, personal touch, and responsiveness.

We were impressed with their transparency and thoroughness regarding their investment process and day-to-day portfolio management. In addition to building a factor-titled portfolio that matched our existing ETF and mutual fund portfolios, their ability to truly customize around an individual's values and beliefs has been a tremendous value add and is distinct in the marketplace.

Dan F.

Region Northwest

$100M-$500M

AUM

1-9

Firm Size

DGS has helped our firm in more ways than I can count. They have been instrumental in our success; we would not be where we are today without them. They handle all our investment and trading operation needs, from simple cash implementations to complicated multi-year legacy asset transitions. This allows us to focus on our client relationships and their planning needs. Their insights enable us to make better decisions for our existing clients and showcase the value we can bring to prospective clients. Most importantly, their service has been incredible. They are very proactive and have always been available to answer any questions or discuss specific client situations.

Justin N.

Region Midwest

$10M-$50M

AUM

1-9

Firm Size

APEX Long-Short, built for taxable wealth.

Three levers, compounding together.

Amplify the engine

Control equity exposure

Maximize tax benefits

Why it earned its place as DGS's flagship.

#1

560%

0.3% - 1.5%

$1M

Three Applications. One framework.

For wealth concentrated in a single position.

For legacy portfolios that ran out of tax runway.

For large capital gain events.

Why long-short goes beyond traditional long-only.

Traditional Long-Only (v1.0)

DGS Long-short Engine (v2.0)

Why advisors choose DGS Capital for long-short.

Decades of experience in systematic, tax-efficient investing.

Lower fees, higher leverage than peers.

Flexible benchmark and strategy design.

Customized market beta to fit the client.

How we compare line by line.

A real long-short case, worked end-to-end.

$1.16M expected tax savings and 48% losses realized.

$100M - $500M

1 - 9

$100M-$500M

1-9

$10M-$50M

1-9

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