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 the proceeds from the sale of part of the stake were redeployed into a lower risk and highly diversified fixed income portfolio
Outcome
The client retained significant equity in the high performing business they had helped to build and grow, while moderating overall risk.