Equity Hedging strategies & techniques, significant single stock concentrations, custom monetization

Equity Hedging

Equity hedging and risk management techniques are a solution for many investors who are subject to an undesirable level of risk due to having a substantial portion of their net worth tied up in one or a few individual stocks. The concentration may be due to an inheritance, sale of a business or a number of other reasons.

Equity hedging strategies1 may offer the ability to protect, monetize (convert into cash) or enhance the yield of positions that an investor may not want to sell, or are possibly unable to sell. There are two common types of equity hedging solutions: equity collars2 and variable prepaid forwards. Listed options and exchange funds are additional hedging strategies3 that may be employed4, depending on your individual situation. Equity hedging strategies are speculative, lack liquidity, and are not suitable for all investors, and there is no assurance they will succeed.

Your Private Wealth Management team will work closely with our equity hedging specialists—leveraging SunTrust’s market expertise and results-oriented innovation—to understand your individual circumstances and customize a solution for your particular objectives.

To speak with a Private Wealth Management advisor call 866.495.5416.

Disclaimer

1Offered by SunTrust Investment Services, Inc.

2Transactions costs for multi-leg options strategies, including collars, may be significant as they involve multiple commission charges.

3Variable prepaid forwards are subject to investment risks, including possible loss of principal. Capital gains tax is deferred until maturity of the contract at which time a taxable event may be triggered by the delivery of the actual shares. There may also be counter-party risk is such a transaction in the event the executing firm defaults. If such an event were to occur, there would be a loss of downside protection.

4Options trading entails significant risk and is not suitable for all investors. For a current options disclosure document, please call the Centralized Supervision Group, 804.594.1167. Investors should consult with their tax advisor in order to determine tax implications of options transactions. Supporting documentation for any claims, if applicable, will be furnished upon request.

Contact Us

To speak with a Private Wealth Management advisor:

  • 866.495.5416

Securities, Investment and Insurance Products and Services:

  • Are Not FDIC or any other Government Agency Insured
  • Are Not Bank Guaranteed
  • May Lose Value

© 2014 SunTrust Banks, Inc.

Equal Housing SunTrust Bank is an Equal Housing Lender. Member FDIC.

Equal Housing Equal Housing Lender. SunTrust Mortgage, Inc.

SunTrust, SunTrust Mortgage, SunTrust at Work, SunTrust Mobile Banking, SunTrust PortfolioView, SunTrust Robinson Humphrey, SunTrust Solid Theft Protection, Ridgeworth Funds, RidgeWorth Capital Management, Wealth Select, AMC Fund Select, AMC Pinnacle, AMC Premier, Access 3, Bank Your Way Snapshot, Signature Advantage Brokerage, Custom Choice and Sure Pay are federally registered service marks of SunTrust Banks, Inc. All other trademarks are the property of their respective owners.

Services provided by the following affiliates of SunTrust Banks, Inc.: Banking and trust products, including investment advisory products and services, are provided by SunTrust Bank, member FDIC; securities, insurance (including annuities), and other investment products and services are provided by SunTrust Investment Services, Inc., an SEC registered broker/dealer and a member of the FINRA and SIPC, and a licensed insurance agency; investment advisory products and services are offered by SunTrust Investment Services, Inc. and Ridgeworth Capital Management, Inc.; mortgage products and services are provided by SunTrust Mortgage, Inc.

SunTrust Mortgage, Inc. - NMLS #2915, 901 Semmes Avenue, Richmond, VA 23224, toll free 1-800-634-7928 CA: licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, IL: Illinois Residential Mortgage Licensee, MA: Mortgage Lender license #-ML-2915, NH: licensed by the New Hampshire Banking Department, NJ: Mortgage Banker License - New Jersey Department of Banking and Insurance, and RI: Rhode Island Licensed Lender. © 2014 SunTrust Banks, Inc. SunTrust and SunTrust Mortgage are federally registered service marks of SunTrust Banks, Inc. How can we help you shine? is a service mark of SunTrust Banks, Inc.

"SunTrust Advisors" may be officers and/or associated persons of the following affiliates of SunTrust Banks, Inc.: SunTrust Bank, our commercial bank, which provides banking, trust and asset management services; SunTrust Investment Services, Inc., an SEC registered investment adviser and broker-dealer, which is a member of FINRA and SIPC, and a licensed insurance agency, and which provides securities, annuities and life insurance products, and other investment services.

SunTrust Private Wealth Management, International Wealth Management, Business Owner Specialty Group, Sports and Entertainment Group, and Legal and Medical Specialty Groups are marketing names used by SunTrust Banks, Inc., SunTrust Investment Services, Inc., and Ridgeworth Capital Management, Inc.

SunTrust Robinson Humphrey is the trade name for the corporate and investment banking services of SunTrust Banks, Inc. and its subsidiaries, including SunTrust Robinson Humphrey, Inc., member FINRA and SIPC.