Client
Business leader with substantial equity position in a US based tech firm
Objective
How can we create a more balanced portfolio?
Solution
Downsize their stock position while retaining a stake in the business. Using call options, the client was able to receive a premium from owning the stock and to sell down their position at an attractive price.
Implement a ‘barbell’ investment strategy in which their remaining position in the high performing technology business was paired with a low risk, diversified fixed income portfolio.
Outcome
We retained significant equity in the high performing business they had helped to build and grow, while reducing their overall risk. Having reduced the size of their concentrated equity position, we redeployed the proceeds into a lower risk and highly diversified fixed income portfolio.
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