Marginal Position
The position being evaluated for addition to a portfolio that already holds other names. The right size for a marginal position is determined by its standalone conviction AND its contribution to portfolio-level risk -- not by standalone conviction alone. A high-conviction marginal position in an already-concentrated sector cluster may merit half its standalone size; a moderate-conviction marginal position that diversifies an over-concentrated portfolio may merit larger size than its standalone conviction would suggest. The marginal-position frame is the operational form of the portfolio-fit screen.
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Related terms
Absorption Rate · AFFO per Share · Allowed Return on Equity · Alternative Investments · Anchor Tenant · Assets Under Management
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