2026 is the year of high-profile tech IPOs, with valuations at eye-popping levels. For early investors holding low-basis shares in these companies, an IPO brings opportunity but also the challenge of managing concentration risk without incurring an oversized capital gains bill. This may be a champagne problem, but it needs to be solved nevertheless and can be addressed through thoughtful planning. We lay out an after-tax wealth framework for managing concentrated stock, organized around four principles: exclude the gain when possible, defer it when exclusion is not possible, offset it through loss harvesting, and hedge and diversify concentration risk when appropriate². There is no single best strategy for managing the risk and…