Managing single-name concentration
research note, Research desk. Published on corpus day 3; reviewed every 90 days.
57d
Age
33d
To review
3
Passages
3
Cited by opportunities
Passages
Concentration above a household's policy threshold can be reduced through staged sales under an existing trading plan, an exchange fund, or hedging, each with different tax and liquidity costs.
Staged sales that realise short-term gains carry a higher tax cost than sales of lots held longer than one year.
A trading plan on its own does not restore a household to its policy threshold. It schedules sales, and the position stays above policy until they complete.
Disagreements this document is part of
concentration plan suffices
Concentrated positions under a trading plan is past the review date. The newer document is more likely to be current, but nothing here has been withdrawn, so both stand until a desk resolves it.
- This documentno: a trading plan schedules sales and the breach stands until they complete
- Concentrated positions under a trading planyes: the plan is the mitigation and no further action is required