Making the most of risk and hedging means knowing how to implement strategies and analysis into your investment objectives. At Atlas, we utilize these strategies if and when we determine they meet our clients’ overall investment objectives.

Concentrated Equity
Many corporate executives are faced with the challenge of managing the risks associated with low cost basis and restricted-stock holdings (i.e., concentrated equity positions). There are many strategies available, each with unique characteristics and requirements. In general, these strategies provide holders of concentrated equity positions the ability to protect against a decrease in the value of the stock, generate liquidity, diversify their exposure, and potentially defer capital gains taxes.

Some of these strategies include:

Restricted Stock Coordination & Sales, Officer & Affiliate Trading Programs (Rule 10b5-1), Hedging and Diversification Strategies, Equity Option Transactions, Exchange Funds, net unrealized appreciation (NUA) elections, Split-interest Trusts

For a more detailed analysis of concentrated equity risk mitigation techniques, visit the article in our Education and Research section by clicking here.

Currency and Interest Rates
How we hedge currency or interest rate risk depends on the evolving nature of each client’s financial profile and objectives. Typically, we may use currency futures as part of our currency arbitrage strategy or to hedge currency exposure that is not part of an alpha generating investment in a non-dollar security. We will use Treasury futures or interest rate swaps to adjust portfolio duration or interest rate risk exposure.