Ryan Paterson: When a lack of concentration is a good thing

Mitigating concentrated equity positions

clock • 7 min read

There are a number of reasons why a client may have accumulated a concentrated equity position, writes Ryan Paterson, and a number of strategies advisers can use to address this risky situation

A large amount of wealth owned by private clients throughout the world is held in the form of concentrated single-asset positions - and there are a number of different types of investor who may find themselves in a situation where they have accumulated a concentrated equity position. Successful entrepreneurs, for example, usually have a significant portion of their net worth tied to a single asset - the company they founded. Business owners, who sell their company and receive a sizeable portion of the proceeds in stock, end up in the same position. Some investors - particularly compan...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Fifty years after 'Bogle's Folly', what comes next for financial advice?

Fifty years after 'Bogle's Folly', what comes next for financial advice?

'Indexing will continue to grow, but the wrapper through which investors access it will change'

Gillian Hepburn
clock 12 October 2026 • 4 min read
Chris Justham: Why the industry must 'entertain and engage' investors

Chris Justham: Why the industry must 'entertain and engage' investors

‘We can’t just offer them a dry cracker and ask them to chew it down’

Chris Justham
clock 07 October 2026 • 3 min read
Jupiter Merlin makes 'keystone' changes and cuts charges on Select range to attract advisers

Jupiter Merlin makes 'keystone' changes and cuts charges on Select range to attract advisers

Two new funds launched

Michael Nelson
clock 06 October 2026 • 6 min read