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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

Review my portfolio. Check concentration, sector and risk exposure, diversification, and flag any holdings that need attention or no longer fit my strategy.
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: 
Map where my holdings overlap in their exposure. Are several positions exposed to the same theme, sector, or risk factor?
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

Which holdings should I reconsider, and why? Separate "thesis has broken" from "just down in price."
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

If I wanted to reduce my biggest risk, what's the most efficient change to make, and what would it do to my concentration?
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: 
Each month, run a portfolio health check and flag concentration, risk, and any holdings that have drifted from their thesis.

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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.