This is a very common concern. HEDG Strategy is designed to address this issue. This strategy locks in most of the gains you already have in the portfolio (governed by the long PUT strike price). To pay for this long PUT, the strategy forgoes upside beyond a point. Thus it creates a Zero-Cost or Low-Cost "Collar" around your portfolio positions. The collar is periodically monitored and adjusted according to market conditions and client preferences. Attempt is made to make sure that the stock is not "called away".

Many clients choose this strategy as a foundational aspect of their Portfolio. This strategy is many times called "SWAN in BLACK SWAN". Sleep-well-at-night during Black Swan period/events!

This is similar to the concentrated position scenario. You should use combination of HEDG and MAREX strategy.

As a first step, you can protect your Portfolio using HEDG strategy.

On this protected Portfolio, use MAREX overlay strategy achieving Virtual Diversification. Exposure to various sectors and broad market is selectable.

This approach can create the effect "AS IF" you sold say some % of your portfolio and invested the proceeds into broad market, without actually selling the concentrated portfolio. Your concentrated Portfolio grows in a hedged manner on its own track. The MAREX Overlay has its own independent performance track. Composite performance is stacking of these two tracks.

As an illustrative example:

- Assume your portfolio grew by 20%.

- You had used MAREX overlay with say 50% exposure to S&P 500.

- Let us say S&P 500 grew by 15%, then your composite return will be :

20% PLUS (50% of 15%) i.e. a total of 27.5%

You have not liquidated any positions in your Portfolio. You have not borrowed on conventional Margin. You have expanded your market exposure in a hedged way.

HEDG and DISC Overlay on your Portfolio meets this goal. HEDG protects the Portfolio. On this protected Portfolio, DISC Overlay allows Income generation. Required Income level, Tax Treatment as well as level of risk are all selectable. Many families in or nearing retirement can meet their Income needs through this strategy. No portfolio positions are liquidated. This is one of the popular combination among clients of Soman Advisors

Invest Cash in Treasuries or Treasury Equivalents. Use DISC Strategy to get stacked performance with low, known risk. We will dial DISC strategy to low end of income spectrum.

Your Cash can be parked in this way. You always have access to your cash at short notice. Many companies have the same need

This is also a very common situation of people with Mature appreciated Portfolios. An example would be buying a second home or helping out children. Your mature Portfolio can be protected using HEDG strategy. A POCASH Overlay on this protected Portfolio, allows you to generate and withdraw Cash at low rate (~SOFR rate). No Principal or Interest payments are due until POCASH term expiry. At expiry, the withdrawn cash can be returned or the term can be extended (depending on prevailing interest rates).

The "interest" cost is treated as Capital Loss and can be used to offset other Capital Gains in the Portfolio

This is an important step in your financial journey. Soman Advisors works with clients to design portfolios that seek to simultaneously address growth, income, liquidity, diversification, and risk management through institutional-style overlay strategies.

A representative portfolio framework may include:

Treasury Exposure (or Treasury Equivalents) + MAREX + DISC + POCASH

1. Treasury & Treasury-Equivalent Foundation

Maintain portfolio capital/Cash in Treasuries or Treasury-equivalent instruments designed to provide Stability and liquidity, Ongoing income generation, Tax-aware implementation.

These holdings are fully liquid and form the foundational capital base of the portfolio.

2. MAREX Overlay — Hedged Market Participation

The MAREX overlay provides diversified hedged market exposure through carefully structured index and sector overlays, including S&P 500, Nasdaq, Small-cap and

Selected sector participation

Soman Advisors works closely with each client to determine the appropriate market and sector exposures based on their objectives and risk profile.

3. DISC Overlay — Additional Yield Enhancement

The DISC overlay is designed to generate additional hedged portfolio income and serves ongoing cash-flow needs.

For clients not requiring current income, the generated yield may be reinvested to support long-term compounding.

Soman Advisors combines these components into a coordinated overlay framework designed to enhance portfolio functionality without requiring disruptive liquidation of existing assets or conventional Margin Borrowing

Please contact Soman Advisors to discuss how these strategies may be customized for your portfolio and long-term financial objectives.This is an important critical step in your financial journey. You can work with Soman Advisors to structure your Portfolio as follows.