CONCENTRATED STOCK

Concentrated to Build Wealth. Diversify to Stay Wealthy.

BakerAvenue employs a multi-disciplinary approach to the issue of concentrated stock management. We encompass solutions for diversification, income generation, hedging, and collateralization. Through a synthesis of Technical, Macro, and Fundamental disciplines, we guide clients through tax-efficient and price-optimized diversification and value-producing strategies such as cash flow generation for income.

We believe in an active approach to concentrated stock management. For example, the conventional method uses a static “hedge it and forget it” approach. Our “BakerAvenue Dynamic Hedging Approach System” (BADHAS®) employs hedges when stock trends are weak, but removes them when price trends are strong. It’s a more opportunistic approach that lowers costs and enhances potential returns.

Concentrated Stock

Wealth Management

  • Enable monetization of assets with customized concentrated stock management game plan for each client
  • Employ strategic diversification of concentrated stock position to support a desired standard of living

Value optimization

  • Produce potential cash flow income stream through selling of call options
  • Generate potential cash flow income stream by stock collateralization and the sale of market index put options
  • Conduct in-depth analysis of the stock’s fundamental and technical trends to identify optimal divesting opportunities

Reduce tax exposure

  • Review and analyze option vesting schedules and tax-lots from option exercises and restricted stock grants
  • Employ active tax-loss harvesting strategy with liquid assets to offset gains from concentrated stock diversification
  • Employ tax and estate planning strategies from our team of estate and tax professionals to enhance after-tax returns

Risk reduction

  • Actively hedge with protective puts
  • Potentially reduce or eliminate hedging costs with the simultaneous sale of call options
When you need to discuss your personal and professional life transitions, BakerAvenue is here for you.