Λεπτομέρειες βιβλιογραφικής εγγραφής
| Τίτλος: |
The Concentrated Stock Conundrum. |
| Συγγραφείς: |
Bouchey, Paul1 (AUTHOR) paul.bouchey@parametricportfolio.com, Poola, Ramesh2 (AUTHOR) ramesh.poola@creativeplanning.com, Pritamani, Mahesh3 (AUTHOR) mahesh.pritamani@parametricportfolio.com |
| Πηγή: |
Journal of Wealth Management. Fall2026, Vol. 29 Issue 2, p29-49. 21p. |
| Θεματικοί όροι: |
*Portfolio management (Investments), *Derivative securities, *Tax planning, *Tax returns, *Diversification in industry, *Investment risk |
| Περίληψη: |
This article addresses the complex challenges faced by investors who hold a substantial portion of their net wealth in a single highly appreciated stock or a small number of such stocks. We analyze the trade-offs between concentrated stock risk and the tax consequences of diversification, evaluating a suite of portfolio management strategies—including staged diversification, covered call writing, and variable prepaid forwards (VPFs)—each combined with a direct index or a tax-managed long–short portfolio. Using detailed simulation modeling, we compare these approaches against two benchmarks: holding the stock and selling upfront to invest in the market. Our results demonstrate that pairing VPFs with a tax-managed long–short portfolio delivers the strongest downside protection and highest median after-tax returns for investors with low-basis, concentrated positions. The framework established in the article offers a practical methodology for wealth managers seeking to optimize after-tax outcomes for their clients while mitigating the risks inherent in concentrated equity portfolios. [ABSTRACT FROM AUTHOR] |
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| Βάση Δεδομένων: |
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