Larry’s Story: Using Exchange Funds to Stay Diversified and In Control
Larry Albukerk has spent years investing across both private and public markets. Some of those bets paid off in a meaningful way, and like many investors with a good eye and a little luck, he ended up with a handful of positions that grew far larger than he expected.
“Sometimes I get lucky and those stocks turn into big positions and they become highly concentrated positions. And then I have to start thinking about how do I diversify and how do I become more tax efficient?”
For Larry, a position becomes concentrated once it crosses five or ten percent of his total portfolio. Once a holding reaches that size, it can influence everything: risk, taxes, and long-term planning.
Two decades of experience with exchange funds
Larry is not new to this world.
“I have experience with exchange funds going back 20 years. I know a lot about the exchange fund world.”
He explored the major offerings over the years from the traditional providers. None of them felt right.
“I was never comfortable because I was required to put in a lot of stock, more than I was comfortable with. The fees were very high. It was not very flexible, and everything I did had to go through certain advisors.”
The structure was rigid, the minimums were steep, the process was slow. And most importantly, it did not match the way Larry wanted to manage his own wealth.
Discovering a more flexible approach
When he came across Cache, the difference was clear.
“It was super flexible. I could put in the amount I wanted to put in. I could do it once a quarter. I could do it whenever I thought it was the appropriate time.”
That flexibility changed the experience entirely. Instead of committing a large block all at once, Larry could contribute over time, adjusting with the market, his goals, and his own comfort.
With Cache, he also had choices in how he diversified.
“Right now I am in the NASDAQ 100. I will probably participate in the S&P 500 fund as well.”
Why the structure mattered
The mechanics of exchange funds made intuitive sense to him.
“Now with an exchange fund, I made money, I paid taxes, I buy stock, I get diversified. I only paid taxes once and it is at my choosing, at my option. So that is the beauty of the exchange fund.”
This was the balance Larry always wanted: long-term growth, tax efficiency, and the comfort of knowing he was not exposed to a single outcome.
“I feel great about participating in the exchange fund because I am more in control, I am more diversified. If I feel like I put stock that might have done better than the exchange fund, I do not know where that is going to be in six months. Maybe it goes up, maybe it goes down. But I can sleep at night because I know that if the market does well, I will do well.”
Doing the homework
Larry dug into the details before moving his shares. What he found made him comfortable in a way the old-school providers never had.
“I did my due diligence. I learned that my money is actually being held by Bank of New York Mellon, which holds 50 trillion plus in capital. The fund administrators are independent. There is an independent audit.”
The decision felt straightforward once he understood the safeguards and the oversight involved,
“Once I learned of all these different checkpoints, I felt great about it.”
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