David’s Story: Finding a Better Path Out of a Concentrated Position
After spending nearly a decade at Tesla, David Zhang had lived through the company’s biggest ups and downs. Like many early employees, equity became a meaningful part of his compensation, and over time, a vital part of his net worth.
“At least a part of everyone who works at a company that is giving equity as part of its compensation believes in the potential of that equity and believes in the potential of the company and the mission.”
By the time David left Tesla last year, that belief had turned into something else: a highly concentrated position in a single stock.
Recognizing the need to diversify
“Diversification has always been in the back of my mind,” he said. “Anytime you realize any kind of gain, you have to think about taxes.”
But, like most employees with hard-earned equity, selling was not a simple decision. The tax bill would be significant, and the timing never felt ideal. The potential upside was still tempting, but the emotional attachment was real.
Discovering exchange funds
When David eventually came across exchange funds, the logic clicked immediately.
“I think exchange funds, from the moment I learned about them, always made sense to me as being part of the toolkit of diversification because of how they work and the clear benefits of deferring the taxes on having that transaction in exchange of your concentrated stock for a diversified basket of stock.”
Problem was, the existing options did not feel built for people like him.
“The traditional exchange funds come with costs and minimums and often a relationship you need with certain institutions. For those reasons, they are not always accessible or the right option depending on your exact situation.”
He needed something more flexible, something that could accommodate both the size of his position and his desire for a more modern, transparent experience.
Why he chose Cache
When David discovered Cache, the difference was immediate.
“Cache has lower minimums, lower fees. It was more convenient, more flexible, more accessible, and I also felt like I had more control over my finances with it.”
Instead of rigid structures, long wait times, and institutional hurdles, Cache provided a streamlined alternative that matched how modern investors expect products to work.
“For me, I was just really happy to find something that really fit what I needed in my diversification goals.”
Sharing the path forward
Now that he’s diversified, David finds himself talking to friends and former colleagues who are facing the same problem he once had: too much of their wealth tied to one company.
“I have talked to many colleagues, ex-colleagues, friends who are in similar positions and I always mention using an exchange fund or having a look into them. And of course I mention using Cache because again, I think it is just a more superior exchange fund offering than other competitors.”
Diversification was more than a financial decision for David, it’s a way to protect the wealth he’d spent years building.
And with Cache, he finally found a path that felt right.
Ready to Take the Next Step?
If you’re sitting on a concentrated stock position, you don’t have to ride the rollercoaster. Cache gives you the tools to diversify on your terms—with institutional-grade access and real tax advantages.
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