Concentrated Stock Analysis

A concentrated stock position is any large accumulation of stock in one company relative to the investor’s total wealth. Longtime employees, executives, and investors may end up with a significant percentage of their total investable assets invested in the one stock, putting them in a concentrated stock position. In instances when a large portion of an investor’s total assets is tied up in one stock, it poses risks to their investment strategy and diversification.  Concentrated stock positions can also create tax consequences and liquidity challenges. We help investors with concentrated stock positions intelligently manage the associated risks with the goal of smoothing out the large position into a well-diversified portfolio. We define a concentrated stock position as any investment in one stock that represents 10%, or more, of the investor’s total investable assets.