When the bubble burst, the stocks he had not sold or hedged went down the drain, but the stock value that was protected was saved and he sold the yacht, so he is doing well, Boyd says.
Regarding another client, the company he worked at was bought by the tech giant EMC for cash and stock, which the client will receive over the next several years. ClearPath invested the cash and created a rolling hedge for the stock options he will receive over time, Connaughton says.
The volatile nature of the tech industry and the conservative bent of their clients require some creative thinking for the ClearPath advisors, the pair says.
“We follow the parts of the tech industry that we think are coming up and talk to the individuals within it,” Boyd says. “Then we try to get the client early before a liquidity event and help them plan for the future.”