FYR001: Concentrated Position

Key Take Aways

1. 
   

   A concentrated position is when a single investment, often a stock, makes up more than 10 percent of a portfolio.

   
   


2. 
   

   Concentration introduces a risk factor to the portfolio where the loss-of-value in a single position could materially impact the overall performance.

   
   


3. 
   

   Selling a concentrated position may have tax consequences depending on the type of account where the investment is held.

   
   


4. 
   

   Charitable contributions, multi-year disposition planning, and option strategies may be considered to lower potential tax burdens.

   
   

   *Individual circumstances may vary.

   
   

Vector's Joe Grochowski, CFP® and Jason Ranallo, CFA® discuss Concentrated Position inside a portfolio.

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