Forbes Article on Concentrated Equity Features Cerity Partners

Forbes recently published an article on concentrated equity featuring commentary by John Hyman, Partner and Head of Investment Management, and Chase Norcini, Principal. Below is an excerpt:

For founders, executives and employees with substantial equity ownership, career success can sometimes bring financial risk. When equity in a single company represents a significant share of someone’s total net worth, their financial future can become closely tied to the performance of that one investment. But for executives whose savvy and belief in their company helped them build wealth, selling can feel like a betrayal.

“Founders and long-tenured executives often feel a strong identity or loyalty connection to ‘their’ stock,” says John Hyman, a partner and head of investment management at Cerity Partners. “This can lead to overconfidence bias and a reluctance to diversify — even when they’re advised to.”