When concentration hides inside tidy sector labels

A book that shows 20% energy and 15% banks can still be fragile if two equities dominate each sleeve. Labels calm the eye; active risk does not care about labels.

Weight is not the whole story

Equal weights across ten financials can still embed heavy rate sensitivity. A concentration review should ask which factor the sleeve actually represents — not only how the pie chart is coloured.

Inheritance and inertia

Concentrated books often arrive by inheritance or by refusing to trim winners. Neither origin is a strategy. Mapping single-name dominance makes the next conversation factual instead of moral.

Reductions need a sequence

Cutting everything at once is rarely necessary. Prioritising by contribution to active risk gives a sequence an adviser or family can follow without theatrical turnover.

If this sounds familiar, our concentration review is built for held equity books rather than theoretical model portfolios.