What Top-Ten Breadth Tells You That Top-Five Concentration Misses

Sarah Mitchell

Top-five concentration is useful, but top-ten breadth often gives a better sense of how much room is left outside the headline names.

Top-five concentration tells you how heavy the very front of the portfolio is. Top-ten breadth tells you how much of the portfolio still lives beyond the obvious headlines. You usually need both.

Why Top-Ten Breadth Helps

Two funds can have similar top-five concentration but very different top-ten structures. One may keep adding meaningful positions beyond the first cluster. The other may thin out quickly after the first few names.

Recent Examples

Our giant-filer breadth comparison shows this clearly. JPMorgan and Vanguard both own the big market leaders, but their top-ten structures still help distinguish how broad the filing really is.

How to Use This on 13F Insight

  1. Check top-five concentration first.
  2. Then compare it with top-ten concentration.
  3. If the jump from top five to top ten is large, the portfolio still has meaningful secondary positions.
  4. If the jump is small, the portfolio may be much more front-loaded than it looks.

What People Get Wrong

  • Mistake: Top-five tells the whole story. Reality: The next five positions can still materially shape the filing.
  • Mistake: Top-ten always matters more. Reality: It depends on the fund style, but it is often the better cross-fund comparison tool.
  • Mistake: Similar top five means similar portfolios. Reality: The back half of the top ten often reveals important differences.

FAQ

When is top-ten breadth especially useful?

When comparing large diversified funds that own many of the same leadership names.

What does a big top-five to top-ten jump mean?

It means the next layer of positions still carries meaningful weight.

Should I always calculate both?

Yes, especially for cross-fund comparisons.

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