Gabe Plotkin, known for his role as a hedge fund manager and as co-chairman of the Charlotte Hornets, is arranging to transfer some personal assets into an exchange-traded fund as part of a tax-deferral plan, according to people familiar with the matter.
Those individuals said Plotkin intends to contribute the bulk of the securities that will comprise the initial portfolio for the proposed Snowball ETF. The filing to establish the fund was first submitted in December, the people said. The sources requested anonymity because the information has not been made public.
The vehicle is slated to be formed using a so-called 351 conversion - a mechanism that converts an existing collection of securities into an ETF. Market participants have increasingly used this technique because of the potential tax benefits it can provide when moving assets into exchange-traded funds.
Plotkin previously closed his hedge fund after an episode involving confrontations with meme-stock traders. After winding down the fund, he went on to acquire an ownership stake in an NBA franchise.
Context and procedural notes
The 351 conversion referenced here is a structural step that reorganizes an existing portfolio into a listed fund vehicle. The specific operational and tax outcomes for the proposed Snowball ETF were not detailed by the people who spoke about the plan.
- Filing timeline: An initial filing for the ETF was made in December.
- Seed capital: Plotkin is said to be providing the majority of the initial securities for the fund.
- Motivation cited: The conversion is being pursued as part of a tax-deferral strategy.
Beyond these points, the information available is limited to the accounts of unnamed individuals and has not been publicly confirmed by Plotkin or other named parties. The article does not provide additional operational details about the proposed fund, nor does it include statements from regulatory bodies or outside advisers.