Management Services for Corporate Executives
Concentrated Stock Management
We understand that holders of restricted and concentrated stock positions have a unique set of needs and demands. Our team works closely with an internal executive services group to help our clients best understand what they own and follow securities regulations to diversify positions, all while lessening the risk exposure to a concentrated company stock position.
To understand the complexities of concentrated stock management, we dive deeper into our knowledge of concentrated stock positions and their risks. These include, but are not limited to:
The price of a single stock can fluctuate much more dramatically than a diversified portfolio, exposing the investor to higher levels of market risk. Our team mitigates these rapid changes through careful consideration of clients’ portfolios, evaluating assets across a variety of disciplines.
A downturn in a particular company’s performance can lead to substantial financial losses for the concentrated shareholder. This means that company-side factors like poor management, competitive pressures, or regulatory issues can lead to substantial financial losses for the concentrated shareholder. Our team keeps informed in current global, legal, political, organizational, and economic factors that can influence stock value and affect our clients’ accounts.
Diversification of assets is crucial for long-term portfolio stability and risk-adjusted returns. In other words, our team is careful to ensure the safety of our clients’ assets by keeping our portfolios purposefully spread across a variety of holdings.
Significant capital gains taxes can follow when trying to sell a large, appreciated stock position. This can deter investors from diversifying, and thus strengthening, their portfolio even when it is financially wise to do so. Our team helps you make sure you sell your appreciated assets efficiently, helping you to retain the most possible portfolio growth from what you’ve earned.
When clients hold large positions, especially in less liquid stocks (such as small-cap stocks, penny stocks, over-the-counter stocks, stocks with low trading volume, trade restricted stocks, etc.) it can be difficult to sell without impacting the stock’s price. Our team helps to mitigate these concerns by ensuring that all trades conducted follow legal and regulatory guidelines.