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The Case for a Concentrated Portfolio

A concentrated portfolio is a high-conviction strategy that can serve as an effective component of a well-executed asset allocation strategy. We have found that a focused group of well-researched companies, each with a sustainable long-term competitive advantage, can provide superior protection against a permanent loss of capital when compared to portfolios with a higher number of holdings, each with a lower degree of conviction. Further, with fewer companies to oversee, concentrated portfolios allow portfolio managers to more intimately understand their companies, and own their best ideas, thereby potentially decreasing the risk of underperformance.

Past performance is not a guarantee of future results.

Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.