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This guide covers running a health check on your portfolio, a periodic review of concentration, exposure, and risk that catches problems before they cost you. The most common finding is hidden concentration: several positions quietly exposed to the same driver. The Skill behind this workflow is Portfolio Monitor.

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When to use this

  • Doing a periodic review of your holdings
  • Checking whether you have become too concentrated
  • Understanding your real risk and sector exposure
  • Finding positions that no longer fit your strategy

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Step 1: Run the review

If your Playbook holds your risk rules and sizing limits, the review will measure your holdings against them.

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Step 2: Surface hidden concentration

Position-level concentration is easy to see; driver-level concentration is not. Ask for it:
Owning five different names that all depend on the same driver is concentration, even if no single position is large.

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Step 3: Identify what needs action

A position being down is not a reason to act; a position whose thesis has broken is.

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Step 4: Decide on changes

For acting on the review, see Rebalancing strategies.

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Make it recurring

A health check is most useful as a habit. Schedule it:

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Common mistakes

  • Confusing price moves with broken theses. A stock being down does not mean the investment case changed. Distinguish the two.
  • Only looking at position size. The bigger risk is often correlated exposure across several positions, not one large holding.
  • Reviewing too rarely. A portfolio drifts continuously. A periodic check catches drift before it becomes a problem.