Lawyer For Portfolio Overconcentration And Failure To Diversify

Putting all your savings into one stock is like betting your entire future on a single hand. All investing carries risk, but overconcentration, placing too much capital into one stock, sector or asset class, is a preventable danger.

LewinsLaw, P.C., helps investors pursue investment loss recovery when an advisor fails to protect them. Attorney Richard Lewins brings insider brokerage industry experience that gives the firm a sharp ability to identify broker negligence. If you suffered losses from an unbalanced portfolio your advisor built, you may have a claim.

Diversification Versus Overconcentration: What Investors Need To Know

Diversification means spreading investments across assets, sectors and markets to reduce the impact of any single loss. Advisors have a duty to recommend a mix that fits your goals and risk tolerance. When they fail, portfolio concentration can grow until one event causes serious harm.

Overconcentration can appear in several forms, and while some advisors use 10-15% in one stock as a guideline, the appropriate level depends on your specific situation. Heavy exposure to one sector, geographic concentration in a single region and employer stock in a retirement account are other common patterns courts and arbitration panels examine to evaluate a failure to diversify claim.

Signs Your Portfolio May Be Overconcentrated

Broker misconduct often goes undetected until losses mount. If any of the following apply, it may be time to speak with a securities attorney:

• Your portfolio is heavily weighted in one stock or investment
• Your advisor recommended holding a concentrated position
• You suffered losses from a lack of diversification
• Your advisor disregarded your risk tolerance
• Your retirement account holds too much employer stock
• Your advisor never discussed the risks of a concentrated portfolio with you

Mr. Lewins has more than 30 years of experience handling claims against financial advisors, brokerage firms and investment advisors. That experience means the firm knows where wrongdoing hides and how to build a compelling case.

Find Out If Your Advisor Is Responsible For Your Losses

You trusted your advisor with your financial future, and that trust may have cost you. Mr. Lewins has represented clients in arbitrations before numerous arbitration forums including NYSE, ASE, PSE, FINRA, AAA and JAMS. Call the firm at 972-893-9245 or reach out online to schedule your consultation.