Stealth concentration risk: How diversified are you really? 

While DeepSeek ended up not turning the entire artificial intelligence (AI) thematic on its head, it was only the first of many AI model release shocks to the market (see Claude Code and SaaS). This evidences how thematic trends can cut across everything investors do both in their portfolios and, with AI, increasingly their own workflow.

The importance of thematic trends raises a fundamental question: How do you make sure your portfolio is adequately diversified? In our latest report Stealth concentration risk: How diversified are you really? we aim to demonstrate how relying on high-level asset classes and historical patterns can risk missing critical changes happening just below the surface. For those investors who do not use a portfolio construction approach that builds total portfolios which are aligned, integrated and adaptive, they face the prospect of unintended exposures to thematic and structural risks that cut across simple class asset boundaries. To address this increasingly complex and ever-changing investment landscape, we believe a well thought out Total Portfolio Approach may yield more robust and dynamic portfolios.