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Concentrated Position Management
Optimize around concentrations to create bespoke, risk-managed portfolios.
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Current Challenge
The traditional approach to managing concentrated positions has largely replicated general portfolio construction—applying index-style diversification in hopes of reducing risk. However, this method often leaves clients with two unsatisfying options: remain heavily overexposed to specific risk factors or sell a substantial portion of the concentrated holding to bring the portfolio allocation in line with its benchmark. The former can undermine performance goals, and the latter is seldom practical due to restrictions, tax consequences, or emotional attachment.
Asset diversification does not guarantee a balanced risk profile in and of itself, as many index or mutual funds are overexposed to certain factors. Therefore, simply adding diversified funds around a concentrated position may fail to achieve the desired outcome. Effective management requires a far more nuanced approach—one that involves deep risk analysis and sophisticated allocation optimization. Unfortunately, many advisers lack the time or resources to conduct these time-intensive and complex processes, leaving clients with unmanaged risks and portfolios that don’t align with their long-term objectives.
Asset diversification does not guarantee a balanced risk profile in and of itself, as many index or mutual funds are overexposed to certain factors. Therefore, simply adding diversified funds around a concentrated position may fail to achieve the desired outcome. Effective management requires a far more nuanced approach—one that involves deep risk analysis and sophisticated allocation optimization. Unfortunately, many advisers lack the time or resources to conduct these time-intensive and complex processes, leaving clients with unmanaged risks and portfolios that don’t align with their long-term objectives.
Pave Solution
Pave transforms the management of concentrated positions by leveraging its proprietary asset scoring system, which provides deep insight into the specific risk and return drivers of the concentrated holding. With this detailed understanding, Pave’s optimization engine constructs a complementary asset allocation designed to offset the risks of the concentrated position while aligning the overall portfolio with the client's benchmark. This approach not only helps balance risk but also aims to enhance long-term performance.
Suggested portfolios are generated in seconds, and advisers can enable Autopilot to let Pave dynamically adjust allocations as market conditions and asset characteristics evolve. This ensures that portfolios stay aligned with each client’s preferences and goals over time. With Pave, advisers can now deliver personalized, risk-aware concentrated position management at scale—something that was previously complex and resource-intensive to execute effectively.
Suggested portfolios are generated in seconds, and advisers can enable Autopilot to let Pave dynamically adjust allocations as market conditions and asset characteristics evolve. This ensures that portfolios stay aligned with each client’s preferences and goals over time. With Pave, advisers can now deliver personalized, risk-aware concentrated position management at scale—something that was previously complex and resource-intensive to execute effectively.
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See It in Action
Learn how to implement Value-based Personalization Screens within Pave
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Reimagine Your Firm's Potential
Evolve your investment strategies and client relationships through the power of automation and personalization.
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Implement Value-based Personalization Screens and turn on Autopilot to save each advisor up to 60 days a year.
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Personalize
Further personalize Value-based Personalization Screens to create portfolios as unique as your clients.
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Start saving up to 18 hours per week with automated portfolio management
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4 Source: Vanguard; Pave performance is actual performance of the Islay affiliate Systematic Alpha investments, LLC. Please see disclaimers at the end for more details
The above material is for educational purposes only and not an offer, solicitation, or recommendation. Investing is speculative and involves risk, including the possible loss of principal. Performance herein is from Pave affiliate, Systematic Alpha Investments, LLC (“Systematic Alpha”). Systematic Alpha is a registered investment adviser. Such registration does not imply any level of expertise by the registrant. Performance assumes the reinvestment of all interest, capital gains, dividends, and fees and expenses of 0.5% charged on an annualized basis. Past performance is no guarantee of future results. Performance results may vary on an investor-by-investor basis.
For Financial Professional Use Only.
Any videos are for illustrative purposes only, Pave is not recommending any specific investments.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.
We take protecting your data and privacy very seriously. Please see our privacy policy here.
Pave Investment Advisors, LLC is an SEC Registered Investment Advisor. Such registration does not imply any level of expertise.
Securities offered through Pave Securities, LLC – New York, NY. Member FINRA/SIPC. You can review Pave Securities LLC with FINRA’s BrokerCheck BrokerCheck.
Advisory Services are only offered through Pave Investment Advisors, LLC., an SEC Registered Investment Advisor which is an affiliate of Pave Securities, LLC.
Pave Securities, LLC and Pave Investment Advisors, LLC do not offer tax or legal advice.
The news, resources and articles available on this site are being presented for educational purposes only and should not be considered specific investment or planning advice applicable to each individual.
Please see ADV Part 2A here and Form CRS here.
For Additional Information and Important Disclosures please click here.
Any videos are for illustrative purposes only, Pave is not recommending any specific investments.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.
We take protecting your data and privacy very seriously. Please see our privacy policy here.
Pave Investment Advisors, LLC is an SEC Registered Investment Advisor. Such registration does not imply any level of expertise.
Securities offered through Pave Securities, LLC – New York, NY. Member FINRA/SIPC. You can review Pave Securities LLC with FINRA’s BrokerCheck BrokerCheck.
Advisory Services are only offered through Pave Investment Advisors, LLC., an SEC Registered Investment Advisor which is an affiliate of Pave Securities, LLC.
Pave Securities, LLC and Pave Investment Advisors, LLC do not offer tax or legal advice.
The news, resources and articles available on this site are being presented for educational purposes only and should not be considered specific investment or planning advice applicable to each individual.
Please see ADV Part 2A here and Form CRS here.
For Additional Information and Important Disclosures please click here.
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