Portfolio Risk Profile™

Portfolio Risk Profile™

Every investor page includes a Portfolio Risk Profile™ panel that scores the *structure* of the investor's most recent disclosed 13F portfolio. It answers one question: how is this portfolio built — concentrated or spread out, clustered in one sector or diversified, actively rotated or held steady?

What "risk" means here. The score measures portfolio *structure* observable in public filings — never a prediction of returns, losses, or future performance. A "High" score is not a warning and a "Low" score is not an endorsement.

The composite score

Each investor gets a 0–100 composite with four bands:

• 0–34 Low · 35–54 Moderate · 55–74 Elevated · 75–100 High

The composite blends three dimensions: 45% concentration, 35% sector, 20% turnover. If a dimension can't be scored (see "No data yet" below), the remaining weights are renormalized so it neither inflates nor dilutes the result.

Dimension 1 — Concentration (45%)

How much of the portfolio rides on a few positions:

• Top-10 weight — the share of total value in the ten largest holdings
• HHI (Herfindahl–Hirschman Index) — the sum of squared position weights; higher = lumpier
• Position count — fewer than ~10 positions adds sparsity risk; 50+ adds none

Dimension 2 — Sector exposure (35%)

How clustered the portfolio is by sector:

• Top-sector weight and a sector-level HHI, computed over *classified* holdings only
• "Unclassified" holdings are a data gap, not a real sector — they are excluded from the math, and the panel notes what share was excluded
• If less than half the portfolio's value has sector classifications, the dimension reports insufficient data rather than a misleading score

Dimension 3 — Turnover (20%)

How much the portfolio changed quarter-over-quarter:

• Value churn — the absolute dollar change across all positions relative to average portfolio size; ~40%+ churn in a single quarter scores as maximum
• New positions and full exits are listed as supporting detail

"No data yet"

Honesty over false precision. Two common cases:

• First tracked quarter — every position registers as "new" because there is no prior filing to compare, which is *no baseline*, not 100% turnover. The panel shows N/A until a second quarter exists.
• Unclassified sectors — when most holdings lack sector data, the sector dimension is excluded until the data is backfilled.

The AI risk read

A 2–3 sentence narrative, generated from the computed metrics only, describes the portfolio's structure in plain English. It is compliance-checked before display, cached per filing period, and regenerated only when a new 13F arrives. Dimensions without data are never mentioned.

Caveats

All inputs come from public 13F filings, which disclose long US equity positions only — shorts, options hedges, cash, bonds, and non-US holdings are not included, and filings may be up to 45 days delayed. The profile describes reported structure at a point in time.

Disclaimer: Educational research only. Nothing on InvestorLens is financial, legal, or tax advice, and no score is a recommendation or a prediction of future returns.