I have a concentrated position in a single (blue chip) company that’s run up far, far beyond its cost basis. The dividends are nice, but the risk not. My assumption has always been that the only way out was to bite the bullet, start selling some of it off, and eat the taxes. But given the state I live in, they would be significant.
Recently, I came across an ad for an “exchange fund” (Glidepath) on this site. Hadn’t heard of these before. I believe I get the basic idea - pooling to de-risk, lock up period, etc. However, I’m very unclear about the actual mechanics, and so I’m hoping someone would be willing to answer some basic questions and describe their experience.
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1. How big and how diverse are the pools that get created? I imagine there are a lot of people sitting on huge gains in ai stocks right now; and I really don’t need to be in a pool that’s just me plus a million shares of sandisk.
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1. How are the contributors selected? Can you
wind
1. up in a pool full of dogshit?
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1. Are the pools managed at all, or is the composition frozen for the entire lock-up?
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1. Alternatively, does the composition constantly churn as participants cycle out and new one
s
1. enter?
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1. What kind of performance numbers do these funds put up, relative to standard indices?
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1. The ad I saw for glidepath claims that they’ve driven the fee structure for the creation and maintenance of their funds very low. Any concrete info on this?
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1. Is it worth the hassle?
As I said, while I get the idea at a very general level, the concrete mechanics are unclear, and so I’d be grateful for any knowledgeable responses.
Thanks.
PS Nothing against sandisk.
EDIT: tried to fix formatting