How to Compare Institutional Portfolios Using Concentration Metrics

Marcus Chen

Not all 13F portfolios carry equal signal. Here is how Top-5 concentration and position count help distinguish conviction stock pickers from index trackers.

Not all institutional portfolios carry equal signal. Some filers hold thousands of positions spread thinly while others concentrate capital in high-conviction bets. Concentration metrics help you distinguish signal from noise on 13F Insight.

TL;DR

  • Top-5 and Top-10 ratios reveal how much is in the largest positions.
  • Above 30% top-5 = active stock-picking conviction.
  • Below 15% top-5 = index-tracking or broad-mandate.
  • Position count alone is misleading.

Key Metrics

MetricWhat It Reveals
Top-5 WeightCapital in the biggest bets
Top-10 WeightBreadth of conviction
Position CountPortfolio breadth (can mislead)

Real Examples (Q4 2025)

FilerAUMTop-5PositionsType
Berkshire Hathaway$274B~70%~40Ultra-concentrated
Capital World$735B19.8%574Active picker
Dimensional$477B17.9%~15KFactor-based
Vanguard$6.9T24.8%17KIndex tracker
Norges Bank$935B26.3%1,577Sovereign fund

How to Interpret

High (>30%): Filers like Berkshire make enormous bets. Each change is a deliberate decision. Moderate (15-30%): Active managers with diversified conviction. Low (<15%): Broad mandates where individual changes carry less signal.

Norges Bank holds 1,577 positions across $935B — fewer than filers one-tenth its size. Position count alone tells you nothing about concentration.

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