CONCENTRATED POSITIONS

Many of our clients have built significant wealth accumulating their company stock. Others have inherited a large amount of stock in a single company, sometimes passed down through the generations. When it comes time to diversify and "lock in" this wealth, the emotional and tax-related issues are often overwhelming. A single stock that constitutes a large portion of an investor's net worth raises a number of important questions:

• What are the risks of holding a concentrated position?
• How much of the concentrated position,if any, should I liquidate?
• Should I consider utilizing a hedge?
• Do the diversification benefits of selling outweigh the tax consequences?
• Should I let my emotional attachment to the stock affect my decision?

Vista's ability to give objective advice allows us to construct an appropriate diversification plan taking all of these factors into consideration.