The Concentration Conversation: Clients with Low-Cost Basis, Concentrated Stock Positions. – Morgan Stanley – 5.7.25

Summary:

On Demand CE

Join Lou Mandia, Head of RIA Strategy and Distribution within the Institutional Equity Division at Morgan Stanley, and Brian Smith, CFP, Co-Head of Wealth Strategies Group at Eaton Vance, for a conversation on concentrated stock positions.

In a current market environment filled with episodic volatility and a potential need for liquidity, clients may be experiencing several factors that can complicate risk mitigation of their concentrated stock positions in the portfolio. For example, tax implications, a need for downside protection, an inherited bullish conviction, legal restrictions, and sentimental attachment to the position. They may hesitate to sell the stock due to tax consequences or biases such as overconfidence or inertia. Morgan Stanley and Eaton Vance offer a number of solutions beyond holding or selling the stock.

Topics to be discussed:

• Hedging & Monetization overlay strategies, including covered calls, costless collars, and variable prepaid forwards
• Tax mitigation and deferral strategies, including exchange funds and charitable giving strategies
• The five strategies for navigating concentration risk

Accepted for 1 CFP/ IWI / CFA CE Credit

Speakers:

Lou Mandia, Head of RIA Strategy & Distribution, delivers the firms “Integrated Morgan Stanley’’ initiative to RIAs and Family Office, helping clients curate bespoke portfolio solutions to achieve targeted outcomes. Prior to joining Morgan Stanley, Lou spent three years at UBS spearheading RIA and Broker Dealer distribution within the Global Equity Division, and six years at Goldman Sachs & Co, focused on structured investments and cross-asset distribution.

About US: Morgan Stanley’s Advisor Solutions Team:
The Morgan Stanley Advisor Solutions Team (MSAS) within the Institutional Equity Division (IED) provides best in class service that reflects the Firm’s commitment to thought leadership, innovative solutions, and cutting-edge strategies while offering Registered Investment Advisors (RIAs) the flexibility to hold collateral at third-party custodians. MSAS specializes in Hedging & monetization strategies for client’s with concentrated stock positions, Structured Products, Thematic Investment Strategies.

Brian is an executive director of Eaton Vance Distributors, Inc., part of Morgan Stanley Investment Management (MSIM). He is co-head of the Wealth Strategies Group, responsible for managing a team of product and relationship specialists predominantly focused on solutions for wealthy investors and developing new product offerings to address client needs. The group works with financial advisors and the firm’s sales representatives to help educate and implement strategies such as customized separately managed accounts, tax-loss harvesting, concentrated stock solutions, charitable giving and options overlay. He joined Eaton Vance in 2016. Morgan Stanley acquired Eaton Vance in March 2021. Brian began his career in the investment management industry in 2011. Previously at Eaton Vance, he was a wealth strategy specialist in the Wealth Strategies Group, responsible for consulting with internal and external partners to craft security-level and portfolio-level solutions for wealthy investors. Before joining Eaton Vance, he was a trader and junior advisor at Fidelity Investments. Brian earned a B.S. from Stonehill College. He holds the Certified Financial Planner (CFP^®) designation.