Our customized portfolios are driven by individual client need. The investment strategy of a customized portfolio may require using additional asset classes and portfolio construction techniques than what is typical in our core asset allocation portfolio strategy. For example, a customized portfolio may incorporate individual equity positions or utilize certain hedging strategies. Customized portfolios typically fall into three categories: Concentrated Equity, Legacy or Hybrid.
Concentrated Equity Portfolios
Certain clients are employees or senior management of private or public companies and end up with significant wealth exposed to one company’s stock, options or RSUs. Parkside works with clients of private companies to develop a pre- and post-IPO (or merger/acquisition) strategy that incorporates client needs and goals, tax-efficiency, diversification and risk considerations and reduction. For public company employees, we focus on the same needs and goals with particular attention to 10b5-1 selling plans and ongoing compliance with stock selling requirements.
Many clients come to Parkside with existing portfolios comprised of individual equities (some with significant embedded capital gains) and would like to determine the best, most tax-efficient strategy for these legacy portfolios. Our plan might include managing the existing portfolio and its individual equity and bond positions as-is on a go-forward basis, or it might include implementing a plan to transition the legacy portfolio to a diversified asset allocation portfolio over time. We also might suggest specific adjustments to a legacy portfolio's geographic or sector exposures to achieve better equity diversification and lower risk. The right approach is determined by what is best for our clients' needs.
For a portion of our clients, we manage portfolios that combine our core asset allocation portfolio strategy with certain equity exposure allocated to select individual equity positions.