Over Concentration is High Risk
Over concentration of an asset is similar to Lack of Diversification. Diversification of investments usually refers to spreading out investments across asset classes such as stocks, bonds, and cash. Over concentration is putting too much of your money into a particular stock or bond. Sometimes a broker “falls in love” with a particular stock and recommends the investor load up on it, or concentrate the portfolio in just a few stocks, or concentrates the portfolio in particular sectors, such as technology, energy, or metals.
This is a risky and dangerous strategy that often leads to disaster. A classic example is the technology bubble in the late 1990s. When the bubble burst, investors that were concentrated in technology stocks got crushed, and those that were invested using margin got completely wiped out. If your investment advisor recommended a particular stock, index fund, or sector, that was over concentrated in relation to your portfolio, you might have a strong claim if you suffered losses.
The Right Over Concentration Attorney
Heiner Law Offices has handled many over concentration cases throughout the years. Our firm has the knowledge to know what constitutes an over concentrated position. After you contact us, we will discuss the facts with you and examine your account statements. If we conclude you suffered losses because of an over concentrated position, after you retain us, we will aggressively pursue claims against the firm or individual that made the recommendations.
Our firm is very experienced with over concentration cases. We have the skill to press your claims to the full extent of the law and hold those that are responsible, accountable for your losses. You can count on our law firm’s experience to assist you as we fight to recover your losses.
Contact Us for a Free Consultation
Contact our office today to discuss your case. We offer a free initial consultation. You can reach us by phone at 801-366-5200 or via email. We try to take every case on a contingency basis which means we don’t collect a legal fee unless we successfully make a financial recovery for you.