Holding the concentrated position. No costs or taxes today, but you stay exposed to single-stock risk. Taxes don’t disappear; they’re deferred and grow as the stock appreciates.
Selling outright. Immediate diversification and elimination of single-stock risk. But a large, one-time tax hit (often 30% to 40% of gains), paid immediately and irreversibly.
Using Cache Long/Short. Gradual diversification while staying invested. Potential ability to offset gains with harvested losses over time. Flexibility to adjust pace. The tradeoffs: ongoing costs, added complexity (including leverage and short exposure), tax benefits that accrue over time rather than immediately, and a required multi-year horizon.
There’s no perfect answer. The choice depends on which cost you’re most willing to accept.