Portfolio Margining: A New Way to Hedge Concentrated Stock Positions
Mar 4, 2010
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By Thomas J. Boczar, Esq., LL.M., CPWA, CFA, and Douglas Engmann
Prepaid variable forwards have often been used to hedge, monetize, and defer capital gains taxes, but their use often triggered IRS scrutiny. Now, a new technique called portfolio margining can put more cash in your client's pocket with less tax and audit risk and more flexibility.