If 15% or more of your portfolio is invested in one single asset, you have what’s known as a “concentrated portfolio.” There are a number of ways investors can end up with a concentrated position; in many cases, these investors are corporate executives with equity-based compensation packages that include ISOs and preferred stock. No matter the reason, having a concentrated portfolio means you may be taking on more risk than you realize. Fortunately, there are strategies that can help manage those risks.
On March 4th, we hosted a webinar on concentrated portfolios. Specifically, we discussed...
- Why a concentrated stock position increases your risk
- How investors end up with a concentrated stock position
- How to use options and exchange funds to minimize concentration risk without selling
- Why some investors struggle to get out of a concentrated position
Meet the presenters:
Lyle Wolberg, CFP®
Lyle is one of the founding Partners of Telemus and is responsible for managing some of the firm’s largest relationships. Lyle has more than 21 years of industry experience across all areas of financial wealth planning and investment management, including as a Financial Advisor at Merrill Lynch and as Senior Vice President of Investments at UBS Financial Services.
Eric Metz, CFA
Eric is the President and Chief Investment Officer of SpiderRock Advisors, where he oversees all investment strategies and portfolio management activities at the firm. Prior to joining SRA, Eric was the Derivatives Strategist and a Portfolio Manager at RiverNorth Capital Management, managing both mutual fund and hedge fund assets. Eric is a CFA Charterholder, a member of the CFA Institute and the CFA Society of Chicago, and a board member of the OIC Institutional Advisory Council.
Blake Dinger, CFA
Blake is a Senior Analyst at SpiderRock Advisors and a CFA Charterholder. Prior to joining SpiderRock in 2016, Blake worked as a Financial Advisor at Raymond James Financial. Blake holds a BA in Economics from the University of Michigan.