How Much is Your Concentrated Position Really Benefiting You?

Published: August 1, 2016

Family wealth often comes from the substantial appreciation, over time, of a single holding. You may have created this wealth or perhaps inherited it. The end result, however, may be that a significant portion of your wealth is tied up in a single asset, exposing you to greater risk and opportunity costs than you may realize.

There are pros and cons to each way you can diversify and mitigate the risks that accompany a large holding. Before deciding on any strategy, it is important to determine what you are trying to accomplish with your assets and to understand how the different investment strategies impact your portfolio and your ability to reach your investment goals.

In How Much is Your Concentrated Position Really Benefiting You?, Klingenstein Fields Advisors (KF Advisors) identifies different types of concentrated holdings and outlines the pros and cons of different diversification alternatives from a liquidity and tax perspective.

Download PDF

Important Disclosures

This material is provided for informational or educational purposes only and should not be construed as investment, accounting, tax or legal advice. Always consult a financial, tax and/or legal professional regarding your specific situation. This communication is not intended as a recommendation or as investment advice of any kind. It is not provided in a fiduciary capacity and may not be relied upon for or in connection with the making of investment decisions. Nothing herein constitutes or should be construed as an offering of advisory services or an offer to sell or a solicitation to buy any securities or a recommendation to invest in any specific investment strategy. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future returns. The views expressed herein are as of a particular point in time and are subject to change without notice. The information and opinions presented herein are general in nature and have been obtained from, or are based on, sources believed by Klingenstein Fields Advisors (“KF Advisors’) to be reliable, but KF Advisors makes no representation as to their accuracy or completeness. Although the information provided is carefully reviewed, KF Advisors cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided. KF Advisors represents two investment advisers registered with the Securities and Exchange Commission: Klingenstein, Fields & Co., L.P. and KF Group, LP. If you are a KF Advisors client, please remember that it remains your responsibility to advise KF Advisors, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.