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Reading 11 Concentrated Assets Tools vs Strategies

So this is a little confusing. There seems to be a clear distinction between Single Concentrated tools vs Single Concentrated strategies.

Tools include outright sale, monetization, and hedging

Strategy include monetization, hedging, and yield enhancement

Is this just something I have to memorize or is there a ryhm to all this madness?

Level 3 is kinda like going to a buffet and getting more food than you can finish. Quitting and throwing it away hurts more than if you just sit down and finish it. - VWJETTY

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Isn’t monetization and yield enhancement same thing or at least very similar?

Strategy should include:

  • monetization
  • hedging
  • sale

Each strategy has its own tools to reach certain goal and which of those might be used depends on client’s situation and requirements.

Gone fishing...

No tools is sale, monetization, and hedging. I wish I could put up clips from the text but it’s written there.

Tools = sale, monetization, hedge

Strategy = monetization, hedge, yield enhancement

I don’t think monetization and yield enhancment is similiar at all. Monetization requires you to hedge your current position (like a protective put) from downside risk. Whereas yield enhancement is simply looking for premium $ inflow (covered call) so no hedging is required here.

Level 3 is kinda like going to a buffet and getting more food than you can finish. Quitting and throwing it away hurts more than if you just sit down and finish it. - VWJETTY

My government had pubic tender to monetize public highways. Due to your post above, could you explain me how to hedge a highway with protective put? Otherwise, Goldman Sachs was chosen for advisory regarding this monetization.

Gone fishing...