Highly concentrated UK stock portfolio with strong past returns and meaningful single company risk

Report created on Apr 21, 2026

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

Positions

This portfolio is extremely focused, with three holdings making up 100% of assets and all in stocks. Over half sits in a single UK industrial company, while roughly a fifth is in a global equity ETF and another fifth in a UK consumer-facing stock. This means the portfolio’s behaviour is largely driven by just one business, with the ETF providing a diversified “satellite.” A concentrated structure like this can lead to very strong outcomes if the key holdings do well, but also sharper swings if they struggle. Compared with broad multi-fund portfolios, this setup is more like backing a few strong views rather than spreading risk widely across many different ideas.

Growth Info

Historically, performance has been very strong: £1,000 grew to about £4,023, with a compound annual growth rate (CAGR) of 23.17%. CAGR is the “average yearly speed” of growth over the full period. This comfortably beat both the US market and global market benchmarks. The trade-off has been a deep maximum drawdown of -47.39%, nearly twice the benchmark falls during the same period. Drawdown measures the worst peak-to-trough drop, which matters emotionally and financially. Returns were also concentrated in a small number of days, showing that missing a few big moves would have changed outcomes a lot. Past success like this is encouraging, but it doesn’t guarantee similar results in future.

Projection Info

The Monte Carlo projection looks at many possible future paths by shuffling and resampling the past behaviour of the portfolio. It’s like running 1,000 different “what if” futures to see a range of plausible outcomes, not a single prediction. In these simulations, £1,000 most often ended around £2,860 over 15 years, with a wide middle range between roughly £1,794 and £4,205. The annualised return across all paths came out at 8.17%, notably lower than the historical CAGR, which reflects the uncertainty that future conditions might not match the past. There’s a 75.3% chance of a positive outcome in the model, but some paths still show losses, underlining that volatility remains a meaningful part of this portfolio’s profile.

Asset classes Info

  • Stocks
    100%

All of the portfolio sits in one asset class: equities. That keeps things simple but means there’s no built-in cushion from bonds, cash-like instruments, or alternative assets. Equity-only portfolios tend to move more with the economic cycle and company earnings news, which can mean larger swings both up and down. Many broad market benchmarks combine shares with other assets to smooth the ride; here, the entire experience is tied to stock market behaviour. This pure equity stance can be powerful in strong markets and more painful in downturns. The global ETF does add internal diversification across many companies, but it’s still all within the stock bucket rather than across different asset types.

Sectors Info

  • Industrials
    58%
  • Consumer Discretionary
    24%
  • Technology
    6%
  • Financials
    4%
  • Health Care
    2%
  • Telecommunications
    2%
  • Consumer Staples
    1%
  • Basic Materials
    1%
  • Energy
    1%
  • Utilities
    1%

Sector-wise, the portfolio is heavily tilted toward industrials at 58%, with consumer discretionary next at 24%. The remaining exposure is spread thinly across technology, financials, health care, telecoms, staples, materials, energy, and utilities. Compared to broad global equity benchmarks, which usually have larger weights in technology and financials, this mix is quite different. A big industrial tilt can tie performance more closely to economic activity, capital spending, and cycles in manufacturing and transportation. The sizable consumer discretionary slice means results may also react strongly to changes in consumer confidence and household spending. This sector profile helps explain why returns and drawdowns have both been more extreme than diversified global indices.

Regions Info

  • Europe Developed
    81%
  • North America
    14%
  • Japan
    1%
  • Asia Developed
    1%
  • Asia Emerging
    1%

Geographically, the portfolio is dominated by developed Europe at 81%, with North America at 14% and only very small slices in Japan and the rest of Asia. Relative to global benchmarks, which spread more evenly between North America, Europe, and Asia, this is a strong regional tilt. Because the two individual UK stocks are large positions, the portfolio is especially exposed to UK and European economic conditions, regulation, and currency moves. The global ETF introduces some US and broader international exposure, which is helpful for diversification, but its size means it can’t fully offset the European concentration. This setup has worked well recently, yet it also means a lot of the risk is anchored in a single region.

Market capitalization Info

  • Large-cap
    63%
  • Mid-cap
    26%
  • Mega-cap
    11%

By market capitalisation, the mix leans toward large-cap companies at 63%, with meaningful exposure to mid-caps at 26% and a smaller slice in mega-caps at 11%. Large-caps are typically more established firms with deeper markets and more analyst coverage, which can make their share prices a bit more stable than smaller peers. Mid-caps often sit in the “growthier but still established” zone, sometimes bringing more volatility but also more company-specific opportunity. The mega-cap component, largely coming from the global ETF’s top holdings, connects the portfolio to some of the world’s biggest listed businesses. Overall, the cap structure is fairly balanced, but the idiosyncratic risk of the big single-stock positions still dominates how the portfolio behaves day to day.

True holdings Info

  • Rolls-Royce Holdings PLC
    55.56%
  • Games Workshop Group PLC
    22.22%
  • NVIDIA Corporation
    0.94%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
  • Apple Inc
    0.87%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
  • Microsoft Corporation
    0.66%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
  • Amazon.com Inc
    0.46%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
  • Alphabet Inc Class A
    0.41%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
  • Taiwan Semiconductor Manufacturing Co. Ltd.
    0.35%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
  • Broadcom Inc
    0.33%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
  • Alphabet Inc Class C
    0.33%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
  • Top 10 total 82.13%

Looking through the holdings, most of the portfolio’s risk and return is driven by the two direct UK stocks, with Rolls-Royce alone over half of total weight. The ETF adds exposure to large global names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, TSMC, and Broadcom, but each is a very small slice of the total portfolio. There is no meaningful overlap between the big direct positions and the ETF’s top holdings, so hidden concentration from duplication is minimal; instead, concentration is very visible and explicit. Because only ETF top-10 holdings are considered here, overlap elsewhere could exist but is likely limited given the sizes involved. This structure means the ETF mainly acts as a diversified background layer behind two dominant, stock-specific bets.

Risk contribution Info

  • Rolls-Royce Holdings PLC
    Weight: 55.56%
    85.4%
  • Games Workshop Group PLC
    Weight: 22.22%
    8.9%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation
    Weight: 22.22%
    5.8%

Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ a lot from its weight. Here, the standout is Rolls-Royce: at 55.56% of the portfolio, it accounts for a striking 85.40% of total risk. That means most of the volatility experienced over time is essentially this one stock. Games Workshop, despite being 22.22% of the portfolio, contributes only 8.85% of risk, and the global ETF, also 22.22% by weight, adds just 5.76% of risk. This contrast illustrates how a volatile stock can dominate risk in the same way a loud instrument can dominate an orchestra. The numbers underline that this portfolio’s story is overwhelmingly tied to one company’s fortunes.

Risk vs. return

This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.

Click on the colored dots to explore allocations.

The risk–return chart shows the current portfolio sitting below the efficient frontier by 3.82 percentage points at its risk level. The efficient frontier is the curve representing the best expected return available for each level of risk using the same holdings in different mixes. The Sharpe ratio, which measures return per unit of risk above the risk-free rate, is 0.76 for the current portfolio versus 1.02 for the optimal mix and 0.79 for the minimum-variance version. This tells us that, using only these three holdings, there are mathematical combinations that would have offered better risk-adjusted returns. The current setup is therefore somewhat inefficient, mainly because the large single-stock weight increases risk more than it boosts expected return.

Ongoing product costs Info

  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.19%
  • Weighted costs total (per year) 0.04%

Costs are impressively low. The only explicit ongoing fee is the ETF’s total expense ratio (TER) of 0.19%, and when averaged across the whole portfolio this works out to about 0.04% per year. TER represents the annual operating cost of running the fund, taken directly from its assets. Low costs matter because they are one of the few things investors can reliably keep down, and small percentage differences compound over long periods. Holding individual stocks directly also avoids fund-level management fees on those portions. This cost profile is aligned with best practices for keeping friction minimal, meaning more of the portfolio’s gross returns have historically flowed through to the end investor rather than being eaten up by charges.

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