Hedging Strategies

Frequently, the single largest asset an executive holds is stock in the company they work for. Our philosophy is that these large holdings should be protected like insurance that is used to protect your home and car. Some of these strategies may allow the executive to hedge, or diversify, their positions without liquidating and triggering a taxable event. These strategies may also be used to increase liquidity or enhance yield. We utilize four different strategies in hedging concentrated stock positions: zero-premium collars, variable pre-paid forward sale, contingent variable forward sale and exchange funds.