Preserve and Protect: How LLBH d/b/a Coastal Bridge Advisors kept our client’s wealth safe from exposure

Our creative problem solving allowed a former Fortune 100 president to preserve his wealth while unforeseen challenges threatened the company holding his deferred-compensation plan.

Our client, the former President of a Fortune 100 Company, had 80% of his wealth tied up in a ten-year payout deferred-compensation plan. Following our analysis, we made him aware of his exposure as an unsecured creditor of his former employer.

LLBH d/b/a Coastal Bridge Advisors’s independence and Wall Street relationships help preserve client’s wealth

To protect his net worth, we looked at traditional hedging techniques, such as protective puts and shorting the position. However, these options were prohibitively expensive.

Instead, we proposed the purchase of a credit default swap against a materially adverse event occurring at the Company.  Benefiting from our independence and longstanding Wall Street relationships, we were able to competitively bid the trade to several banks. Ultimately, we negotiated the transaction for a fraction of the customary cost.

As company stock plummeted, client’s peace of mind is preserved

Soon after we executed the transaction, the Company was severely impacted by two major natural disasters and a security breach, which drove the stock down by 70% and its bond rating from AAA to BBB.  Through our creative problem solving, we preserved our client’s wealth and peace of mind and enabled him to pursue a new, and highly successful, independent business venture.

 

IMPORTANT DISCLAIMER:
THESE CASE STUDIES ARE PROVIDED FOR ILLUSTRATIVE PURPOSES ONLY TO PROVIDE AN EXAMPLE OF THE FIRM’S PROCESS AND METHODOLOGY. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE RESULTS PORTRAYED IN THESE CASE STUDIES ARE NOT REPRESENTATIVE OF ALL OF THE FIRM’S CLIENTS OR THE CLIENTS’ EXPERIENCES. DIFFERENT TYPES OF INVESTMENTS INVOLVE VARYING DEGREES OF RISK, AND ACTUAL RESULTS MAY VARY MATERIALLY THAN THOSE PORTRAYED HEREIN. THEREFORE, IT SHOULD NOT BE ASSUMED THAT THE FUTURE RESULTS OF ANY SPECIFIC INVESTMENT OR INVESTMENT STRATEGY (INCLUDING THE INVESTMENTS AND/OR INVESTMENT STRATEGIES RECOMMENDED OR UNDERTAKEN BY THE FIRM) WILL BE PROFITABLE OR EQUAL THE RESULTS PORTRAYED HEREIN. AN INDIVIDUAL’S EXPERIENCE MAY VARY BASED ON HIS OR HER INDIVIDUAL CIRCUMSTANCES AND THERE CAN BE NO ASSURANCE THAT THE FIRM WILL BE ABLE TO ACHIEVE SIMILAR RESULTS IN COMPARABLE SITUATIONS. NO PORTION OF THESE CASE STUDIES IS TO BE INTERPRETED AS A TESTIMONIAL OR ENDORSEMENT OF THE FIRM’S INVESTMENT ADVISORY SERVICES AND IT IS NOT KNOWN WHETHER THE CLIENTS REFERENCED APPROVE OF THE FIRM OR ITS SERVICES. THE INFORMATION CONTAINED HEREIN SHOULD NOT BE CONSTRUED AS PERSONALIZED INVESTMENT ADVICE. PLEASE CONTACT US FOR ADDITIONAL INFORMATION WITH RESPECT TO THE STRATEGIES AND/OR INVESTMENTS DESCRIBED HEREIN.

Coastal Bridge Advisors has been named the Best Private Wealth Manager Under $5B by Private Asset Management

Learn More >https://www.coastalbridgeadvisors.com/coastal-bridge-advisors-wins-prominent-industry-award-for-best-private-wealth-manager-under-5b-2/