By Derek Moore
ZEGA is excited to announce our new whitepaper and summary is now available to download on our site. Within the paper we outline the nature of the problem, the additional risk, and how advisors can offer real value for their clients by finally offering a viable solution. Often advisors are frustrated when presented with low cost basis concentrated stock due to the perceived nature of not being able to help their client. Within the paper we outline those frustrations, the reasons why, and potential solutions.
An investor who accumulates a concentrated stock position in their investment portfolio typically reacts in one of two ways: “It’s not a problem” or “Sure it’s riskier, but there’s nothing I can do about it.” An astute advisor knows neither of these statements rings true.
- Jay Pestrichelli & Derek Moore
- Why concentrated stock positions
- What investors want
- Understanding concentration risk
- When diversification doesn’t work
- So, what are my options?
- The tools of hedging
- Adding income and tax management
- The hedger’s opportunity
- The Conagra case study
We encourage you to download both versions and to share them with your clients who might be affected by similar situations. Jay and Derek also, for those audibly inclined, previously recorded two different podcasts on the subject. You can check those out below by clicking the play button.
Hedging Concentrated Stock Positions
Case Study: Hedging Single Stock Risk