Welcome to Titan’s Take, our POV on the latest.
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"If you really know businesses, you probably shouldn't own more than six of them. If you can identify six wonderful businesses, that is all the diversification you need and you're going to make a lot of money." Warren Buffett
Concentration. 64. No repeats. Or hesitations.
If you grew up in America, there are reasonable odds that you played the concentration clap game. Ironically, one of the most important words in wealth creation has been a part of your vocabulary since early childhood: Concentration.
Concentration is a question we get a lot. "How concentrated is too concentrated?" For example: if you're a Google employee and you have 70% of your net worth in Google stock…is that OK? Rules of thumb are useful, but can sometimes fail to land. They are shrugged aside as applying to other people, not to you. So instead of trying to answer this question via a rule of thumb, let's first take a look at the pinnacle of the investing sport: long-term hedge fund managers.
These firms spend hundreds, sometimes thousands, of hours researching a single investment. So when they fall in love with something, it's probably the right ceiling for how concentrated you should be too.
Case Study #1: Bill Ackman & Pershing Square
Bill runs an extremely concentrated portfolio. When Bill is high conviction, what does his concentration look like? His top position from his Q4 2025 13-F filing was Brookfield (BN) at 17% of the fund, followed by Uber (UBER) at 15%.
Case Study #2: Seth Klarman & Baupost
We talk a lot about Buffett; Seth has been deemed his protégé by some ("the Oracle of Boston"). He wrote a book that is out of print and costs $1,999 to buy. When Seth is high conviction, what does his concentration look like? Baupost's top position is Amazon (AMZN) at 13%.
Case study #3: Chris Hohn & TCI Fund Management
Based out of London, Chris has been quietly one of the top-performing long-term hedge fund managers for some time. He also runs one of the most concentrated portfolios we've seen: just five stocks represent the majority of the entire fund. But even Chris has limits. GE Aerospace (GE), the #1 position, represents only 30%.
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We see this more than you'd think: a new client, a Big Tech company, a stock that has absolutely crushed it for years. 60%, 70%, 80% of their net worth in one name. The returns got them there. The concentration risk is what keeps us up at night on their behalf.
Yes, we're thrilled they've accrued significant wealth. And yes, concentration can produce outsized returns. We'd be the first to admit that. (It's why our Flagship strategy is outperforming the market this year. Ciena, our largest position, is 12% of the portfolio.)
But there's always a but. Even the world's greatest hedge fund managers have ceilings on how concentrated they are. Buffett's quote at the beginning of this Titan's Take implies six positions. Evenly weighted, that would still be only 17% each.
If you find yourself with a large portion of your wealth tied up in one stock, give us a shout. This is an instance where thinking of yourself as the CEO of your own hedge fund holds true.
You Capital Management, Inc.
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From Giovanni Tiso, CFP®, Lead Financial Planner at Titan:
“The clients who built real wealth through a single stock weren't wrong to concentrate. They were right, and it paid off. But even the world's best hedge fund managers have a ceiling, and a plan for when to act. That's what separates holding with intention from just holding. Before we sell anything, we look at every lot, every cost basis, every tax implication, because how you unwind a position matters as much as when. That's what we call Titan Smart Sell. And bringing it to zero may not be the recommendation. But protecting what you've built always is.”
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Titan Global Capital Management, Inc.
PO Box 4668 | PMB 85274
New York, New York 10163-4668 US
© 2026 Titan, All rights reserved.
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As of the time of publishing, Alphabet Inc. (GOOG), Amazon (AMZN), Ciena Corporation (CIEN), and Uber Technologies, Inc. (UBER) are holdings in Titan's Flagship strategy; and General Electric Company ("GE Aerospace") (GE) is a holding in Titan's Opportunities strategy.
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