Summary
Proper asset allocation is the primary driver of long-term investment returns. While individual stock selection provides alpha, the overarching mix—Stocks, Bonds, Alternatives, and Cash—determines your portfolio's risk profile. At Gery Wes, we focus on **Concentration Efficiency**, ensuring your wealth is not overly exposed to a single sector or employer.
Allocation & Risk Simulator
Input your current portfolio concentrations to calculate your institutional Risk Score. A score of 100 indicates optimal diversification.
Understanding Concentration Risk
Concentration risk occurs when a portfolio has an outsized exposure to a single asset class, sector, or company. This can lead to catastrophic losses if that specific segment underperforms the broader market.
- Employer Stock: Most institutional employees are already exposed to their employer through their primary income. Holding more than 10% of your wealth in employer stock doubles this risk.
- Sector Clustering: Over-exposure to Tech or Energy can lead to high volatility during sector-specific downturns.
Dynamic Rebalancing
Institutional portfolios require systematic rebalancing. This involves selling "high" assets and buying "low" assets to maintain your target allocation. Gery Wes advisors help automate this process using quantitative triggers rather than emotional reactions.