Mercer Advisors Logo
Close this search box.

Unwinding A Highly Concentrated Position in Equities

Doug Fabian

Senior Vice President


Do you have a highly concentrated position in a stock, mutual fund or exchange-traded fund (ETF)? Do you have a plan in place to reduce the risk and manage this position in a tax-efficient manner?

In a recent episode of the Science of Economic Freedom, we covered the pros and cons associated with a highly concentrated position, or HCP. And while an HCP can help you build wealth, it can also represent both a threat and a challenge to your financial goals.

In this episode of the Science of Economic Freedom, “Unwinding A Highly Concentrated Position in Equities,” we discuss the tactics and strategies needed to extricate yourself from a highly concentrated equity position so that you can add greater diversity to your holdings while also making sure you don’t sustain a massive tax hit in the process.

Topics covered in this episode include:

  • The reasons why investors are reluctant to sell down an HCP.
  • Why an HCP is good for asset accumulation, but not for asset protection.
  • How to implement “taxable gain harvesting.”
  • When to consider “gifting” shares to a family member.
  • Options strategies for managing HCPs.
  • Using an “exchange fund” to manage an HCP.
  • Key questions to ask before you unwind a highly concentrated position.

Plus, much more…