Concentration and factor exposure
Six ways a portfolio secretly holds one bet.
Concentration and factor exposure
| Concept | Explanation | |---|---| | Single-name concentration | Large dependence on one company or token. | | Sector concentration | Several holdings depend on one industry. | | Narrative concentration | Different tokens or stocks depend on the same market story. | | Factor concentration | Portfolio is dominated by growth, momentum, size, or another factor. | | Geographic concentration | Exposure depends on one country or currency. | | Counterparty concentration | Assets rely on one exchange, custodian, or protocol. |