Hedging Strategies

Cedrus offers a wealth of knowledge to clients who need solutions to monetize and to limit the risk of concentrated stock positions, as well as to optimize the tax consequences of owning low-cost-basis stock. We offer a range of innovative strategies around liquidity, asset protection and enhancing the value of clients' assets. Cedrus can help clients diversify through public or private sales.

Hedging strategies are customized to suit each investor's requirements.

The following strategies are examples:

  • Purchase Put Options: protects the value of equity position
  • Covered Call Writing: generates additional income from position
  • Option Collar: protects a concentrated equity position at no initial out-of-pocket expense
  • Basket Hedges: hedges the risk of an equity position for which a direct hedge is inappropriate either because of trading, legal or contractual restrictions, or the unavailability of a direct hedge
  • STAMPS: Structured Asset Monetization and Protection Strategy
  • Private Sale of Restricted Stock

These strategies may also offer substantial tax benefits over the sale of securities.