AB: Five Questions on Risk in Concentrated Equities Today

As equity markets cope with fresh volatility from China to Europe, managing risk is a top priority. In our view, concentrated portfolios stand up to scrutiny on risk—even in today’s complex market conditions. Concentrated portfolios are a popular way to capture high conviction in equities. But many investors worry that by focusing on a small number of stocks, they may be more vulnerable when volatility strikes. These five questions can help gauge whether that’s really true.

 

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Five Questions on Risk in Concentrated Equities Today