Protecting the value of large positions and enhancing investment flexibility.
High-profile initial public offerings, stock-for-stock acquisitions, inheritance and stock-based compensation are just a few of the causes that have left many executives in the enviable yet precarious position of owning large concentrations of a single stock.
Often, the inability or unwillingness to sell—whether due to insider status, capital gains implications, legal restrictions or an overall attachment to the position—can complicate the management of risks associated with these holdings.
At UBS, we are fully focused on how we can best optimize your concentrated equity positions, protect against declines in value and enhance returns by "monetizing" a position. We also allow for diversification, increase borrowing capacity and defer costly capital gains costs.
Depending on your situation, strategies may include remaining unhedged, selling securities or over-the-counter (OTC) covered call options, purchasing OTC put options, using zero premium collars, and taking advantage of maximum monetization and asset protection (MMAP).
To understand more about how we can maximize the benefits of your concentrated stock solutions, connect with a UBS Financial Advisor, or find a UBS Financial Advisor.
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