New Strategies for High-Net-Worth Investors to Manage Stock Risks
Envestnet Offers Tailored Solutions to Address Common Investment Challenges
Managing concentrated stock positions can be a struggle for high-net-worth (HNW) investors. Whether derived from stock grants, inheritance, or long-term investments, these positions pose unique challenges. To address this, Envestnet has introduced the Options Strategy Quantitative Portfolio (QP), providing customizable strategies such as covered calls, protective puts, and collars. These options allow HNW clients to hedge against market volatility while gradually managing their exposure.
By utilizing these options-based solutions, investors can lower their downside risk, generate additional income, and spread out taxable gains. This approach helps avoid significant tax liabilities that can arise from large stock sales. Moreover, selling large holdings can be challenging without affecting market prices, emphasizing the need for structured unwinding.
Envestnet’s strategy is designed to be both scalable and personalized, using quantitative modeling to meet each investor’s specific risk tolerance and financial goals.
Finsum: This new offering not only enhances portfolio flexibility but also takes steps to preserve long-term wealth, helping advisors address the diverse needs of HNW clients more effectively.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
