I think the LTCG issue is more common in VC and PE. That's not even touching QSBS. I probably disagree with the preferential taxation given to these categories,

I think the LTCG issue is more common in VC and PE. That's not even touching QSBS. I probably disagree with the preferential taxation given to these categories, but I'm definitely willing to change my mind. Hedge fund managers will rarely pay LTCG on their investments. It's not uncommon for all of their investment gains to be counted as ordinary income. Note that I didn't say realized gains so they'll pay ordinary income tax on gains that haven't even been realized.