RT Journal Article
SR Electronic
T1 Mitigating the Legal Duties of Fiduciaries and Financial Advisors to Manage Stock Concentration Risk
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP 16
OP 34
DO 10.3905/jwm.2007.684876
VO 10
IS 1
A1 Thmas J. Boczar
YR 2007
UL https://pm-research.com/content/10/1/16.abstract
AB This article describes the rapidly expanding duties of fiduciaries and financial advisors to manage single stock concentration risk. The results of an informal but comprehensive survey indicate that most fiduciaries and advisors currently manage stock concentration risk in an ad hoc, almost antiquated, fashion. A “best practices” framework is developed that could be used by fiduciaries and advisors to assist them in satisfying their legal duties. By following these best practices, stock concentration risk management services will be delivered through a systematic, uniform and consistent methodology with the result that each and every client should implement the strategy that is optimal given their particular circumstances.TOPICS: Technical analysis, portfolio construction, risk management