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Bigger Position, Smaller Risk

CLIENT SITUATION

Client-held businesses can be wonderful places to create wealth. Many times these become the subject of a liquidity event. A liquidity event may include a concentrated position in a publicly held company, requiring thoughtful assessment and management of the risks associated with a concentrated position.

OUR SOLUTION

An Abbot Downing client took one manufacturing business public and sold another, retaining substantial stock in both enterprises. Her asset managers carefully diversified both positions, selling stock a little at a time to avoid price depression. As attractive opportunities arose, they moved assets into hand-picked, client-appropriate investment vehicles in a variety of market sectors.

THE RESULT

The client’s diversified portfolio helps reduce risk and is positioned to grow in a variety of economic conditions.


DISCLOSURES

These materials are provided for general education and illustration purposes only. They were prepared by Abbot Downing and have been obtained or derived from information we consider reliable, but we cannot guarantee their accuracy or completeness. Abbot Downing does not undertake to advise you of any change in the information contained in these materials.

Wells Fargo & Company and its affiliates do not provide legal advice. Please consult your legal advisors to determine how this information may apply to your own situation. Whether any planned tax result is realized by you depends on the specific facts of you own situation at the time your taxes are prepared.