At the limits: The funds with the most in a single stock

For managers looking to add alpha to their portfolios, striking the balance between stock concentration and portfolio diversification can be a tricky one.

In recent years, the balance has favoured the former category: a "concentrated portfolio" has become shorthand in marketing literature for a fund that targets significant outperformance, albeit with more risk involved. Now focused funds are coming to the fore once more, as investors seek to move away from the beta rally seen in recent years: the likes of Rathbones' multi-asset head David Coombs are now buying into concentrated funds on the view that alpha will be harder to come by this year. There may be other, less widely appreciated merits to the funds: Investment Week reported back...