> ## Documentation Index
> Fetch the complete documentation index at: https://docs.driven.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# Portfolio Health Check

> How to run a portfolio health check in Driven: review concentration, sector exposure, risk, and holdings that have drifted from their thesis, and decide what to do.

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](/skills/portfolio-monitor).

## 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

## Step 1: Run the review

```text theme={null}
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](/concepts/playbook) holds your risk rules and sizing limits, the review will measure your holdings against them.

## Step 2: Surface hidden concentration

Position-level concentration is easy to see; driver-level concentration is not. Ask for it:

```text theme={null}
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.

## Step 3: Identify what needs action

```text theme={null}
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.

## Step 4: Decide on changes

```text theme={null}
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](/guides/portfolio/rebalancing-strategies).

## Make it recurring

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

```text theme={null}
Each month, run a portfolio health check and flag concentration, risk, and any holdings that have drifted from their thesis.
```

## 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.

## Related

* [Portfolio Monitor Skill](/skills/portfolio-monitor) — the workflow behind this guide
* [Risk exposure analysis](/guides/portfolio/risk-exposure-analysis) — deeper on risk
* [Rebalancing strategies](/guides/portfolio/rebalancing-strategies) — acting on the findings