My understanding was that there is a tax advantage (or loophole) in this construct of having influence over a fund's trading rather than doing the trades yourself and holding the fund instead. Would you argue there is no such advantage?
Yes there is an advantage. US investors could be assessed at long-term rather than short-term capital gain rate by using such type of structures. I simply argue that this is not a core part of a quant fund's business. Any capable hedge fund could hire lawyers to set up such structures.