Ryan Paterson: When a lack of concentration is a good thing

Mitigating concentrated equity positions

clock • 7 min read

There are a number of reasons why a client may have accumulated a concentrated equity position, writes Ryan Paterson, and a number of strategies advisers can use to address this risky situation

A large amount of wealth owned by private clients throughout the world is held in the form of concentrated single-asset positions - and there are a number of different types of investor who may find themselves in a situation where they have accumulated a concentrated equity position. Successful entrepreneurs, for example, usually have a significant portion of their net worth tied to a single asset - the company they founded. Business owners, who sell their company and receive a sizeable portion of the proceeds in stock, end up in the same position. Some investors - particularly compan...

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