Gabe Plotkin, hedge fund manager and co-chairman of the Charlotte Hornets, plans to transfer part of his personal assets into an exchange-traded fund (ETF) using a tax deferral strategy. To establish the fund, a Section 351 conversion process is expected to be used, which allows an existing portfolio of assets to be transformed into an ETF. This approach has gained popularity on Wall Street due to its potential tax advantages.

Plotkin will contribute a significant portion of the initial securities for the Snowball ETF. The application to create this ETF was filed in December.

Previously, Plotkin closed his hedge fund following events related to the surge in meme stock trading, and later acquired a stake in an NBA basketball team.