The Trustee’s “Sell Strategy”

John Jeffrey Pankauski (West Palm Beach, Florida) and Robert E. Conner (officer, Thornapple Associates, Inc., Summit, New Jersey) have recently published their article entitled Looking for the Exits: A Fiduciary’s Sell Strategy Under the Prudent Investor Act, Prob. & Prop., Nov./Dec. 2006, at 40.

The purpose of this article is to provide guidance to fiduciaries and practitioners by considering an important aspect of a fiduciary’s role: fulfilling the obligation to preserve principal by having a sell strategy as part of an overall investment plan.  This article examines the sell strategies appropriate to an investment portfolio including publicly traded equities and fixed income instruments as well as cash.  In particular, this article focuses on the use of sell strategies for publicly traded stock.