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concentrated portfolio


Definition
A portfolio that holds a small number of different securities in order to achieve a level of diversification. Unlike higher levels of diversification, which could involve purchasing a large number of different securities in order to mitigate risk, a concentrated portfolio might have fewer than ten stocks.

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There’s More Than One Form of Active Portfolio ManagementPeople tend to assume that the only form of active portfolio management is through relatively concentrated portfolios. We think there's an equally legitimate form of active money management in running ... Read more


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