Concentrated positions can be some of the most challenging assets for investors to navigate. On paper, the problem may seem straightforward: one holding has grown very large, creating outsized exposure in the portfolio.
In practice, the path forward is rarely simple.
A concentrated position may come from entrepreneurial wealth, equity compensation, inherited shares, a long-term conviction holding, a corporate event, or even a fund position that quietly grew into an outsized exposure. Each situation carries its own tax profile, emotional context, liquidity needs, and planning constraints.
That is why we created the Concentrated Positions Playbook: a practical guide to help advisors and consultants frame the conversation, evaluate client constraints, and understand how systematic, tax-aware position reduction can work in practice.
Key insights from the playbook
- Concentrated positions are rarely just investment problems.
Taxes, emotional attachment, timing needs, and client history all shape the right path forward. - Speed and tax efficiency are often in tension.
Diversifying quickly can create a large tax event; moving slowly can leave clients exposed to single-stock risk. The solution lies in finding the optimal balance for each client and executing it systematically. - Risk reduction usually requires position reduction.
Hedges and completion portfolios may help, but reducing company-specific risk ultimately means reducing the position itself. - A systematic process can reduce decision fatigue.
Coordinating security sales with tax-loss harvesting opportunities can help clients make progress without trade-by-trade decisions. - Modeling makes the trade-offs clearer.
Client-specific scenarios can help show potential timelines, tax impact, and paths forward.
Download the full playbook by completing the form below.
What’s a Rich Text element?
The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.
Static and dynamic content editing
A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!
How to customize formatting for each rich text
Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.
.png){kind=spacer}