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 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.