A modern solution for an age-old problem.
Suhas Joshi, Lead Advisor at Prospero Wealth, works with clients who often hold concentrated stock positions—whether they intend to or not. It’s a challenge he understands firsthand after his own stock-based compensation exposed him to concentration risk during stints at Facebook and Stripe.
“I did actively diversify, but there were periods where I got busy and suddenly the stock price went from $30 to $90… And now I'm trying to optimize taxes, and I found myself with almost 20% of my net worth in a single stock.”
To help clients with highly appreciated stocks manage risk more tax efficiently, he turned to Cache. Watch his story here, or read on for a detailed look at Cache for Advisors gives Prospero’s tech clients a new way to diversify their portfolios:
<p class="blog_disclosures-text">Suhas Joshi and Prospero Wealth are not current Cache clients but collaborate with Cache on behalf of their clients. Their experience may not be representative of the experience of others and is not a guarantee of future performance or success. A conflict of interest exists in that the advisor has a business relationship with Cache. The advisor was not compensated for the testimonial. Prospero Wealth is not affiliated with Cache.</p>
A better exchange fund for tech clients
Here’s what sets Cache apart:
- Wider Acceptance of Positions: “Not all exchange funds can take all positions, but Cache has been the one which has been more able to accept our clients’ positions.” By using the Nasdaq-100 as a benchmark, Cache has more room for high-growth names.
- Access for Non-Qualified Purchasers: “Not all of our clients are qualified purchasers. Cache accepts clients who are not qualified purchasers, which is huge.”
- Lower Costs and Minimums: “Cache has been clearly the more economical choice in terms of management fees… and Cache has some of the lower contribution minimums. Advisors can make Cache available to their clients, as an accessible and cost-effective option.
- A Modern Product Experience: “Cache has just a much better interface for us as advisors, for our clients. We can do a lot of self-serve onboarding.” And the ability to check for a match instantly streamlines the discovery process.
- Exceptional Support: “I've been really impressed with the team. The team has been super accessible to us, very responsive to our comments and feedback, and they're constantly improving the product experience side of things.”
(For a primer on exchange funds, see our exchange funds 101 article. We also have a much deeper dive here.)
If you want to dig deeper, here’s a detailed look at exchange funds.
Helping clients take control of concentration risk
Prospero Wealth offers clients the prospect of “navigating tomorrow while prospering today.” Whether it’s minimizing risk, optimizing taxes, or preserving future growth, The Cache Exchange Fund helps Joshi deliver on that promise – and it helps clients avoid the hold-or-sell dilemma Joshi faced when he was a tech employee.
Cache has become the firm’s go-to exchange fund solution for managing concentrated positions: “The fact that it's, in most cases, a better exchange fund and the better product side makes it really the thing I find myself recommending more often than not.”
If you’d like to see how Cache can help your firm, set up a time to talk or enter some basic information to see if an allocation is available.
<p class="blog_disclosures-text">Nasdaq-100 is a stock market index comprised of securities issued by 100 of the largest non-financial companies listed on the Nasdaq stock exchange. It is unmanaged and is not subject to fees and expenses typically associated with investment funds. Investments cannot be made directly into an index. Individual stocks mentioned are provided for illustrative purposes only and are not a recommendation to buy or sell any particular security.</p>
<p class="blog_disclosures-text">Cache Financials, Inc. (Cache) products are distributed by Cache Securities LLC, an SEC-Registered Broker-Dealer and Member of FINRA and SIPC. Cache Advisors LLC is the advisor to the Cache Exchange Fund and is an Investment Advisor registered with the SEC. Registration does not imply a certain level of skill or training. Investments are available only to residents of the United States in jurisdictions where Cache is registered.</p>
<p class="blog_disclosures-text">The purpose of this material is to inform, and it should not be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products. The investments mentioned may not be appropriate for all clients. All investments involve risk. Cache does not make investment recommendations; investors are responsible for their investment decisions. Before making an investment decision, each investor should carefully consider the risks associated with the investment and decide, based on their particular circumstances, that the investment is within their investment objectives and risk tolerance.</p>
<p class="blog_disclosures-text">The Cache Exchange Funds are alternative investments. Regulations require certain eligibility criteria for participation and are open to accredited investors or qualified purchasers with eligibility criteria as specified in the offering documents. Exchange funds are suitable only for eligible, long-term investors willing to forego liquidity and put capital at risk for substantial periods. Regulations require a minimum holding period to realize the potential advantages. They may also have higher fees than traditional investments.</p>
<p class="blog_disclosures-text">The information presented shall not constitute an offer to sell or the solicitation of any offer to buy Interests, which may only be made at the time a qualified offeree receives a Confidential Private Placement Memorandum describing the offering, the Fund’s governing documents, and subscription agreement (collectively, the “Offering Materials”).</p>
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