--- title: "Position sizes | RupeeCase Terminal" description: "The Position sizes card: top 5 share, largest position, the Herfindahl index, effective holdings and, on a portfolio, the cash share." source_url: "https://www.rupeecase.com/learn/terminal/concentration-herfindahl" --- ## Watch: Position sizes Position sizes, on the Holdings tab, shows how spread the money is.Position sizes: what do Herfindahl and effective holdings say? 5 chapters, 1:12, with voice and music 1. [Chapter 1Where it is0:10](/instiv2/media/tut4/concentration-herfindahl-where-phone-dark-v4-va2.mp4) 2. [Chapter 2What it means0:26](/instiv2/media/tut4/concentration-herfindahl-meaning-phone-dark-v4-va2.mp4) 3. [Chapter 3Worked example0:06](/instiv2/media/tut4/concentration-herfindahl-example-phone-dark-v4-va2.mp4) 4. [Chapter 4How to read it0:20](/instiv2/media/tut4/concentration-herfindahl-reading-phone-dark-v4-va2.mp4) 5. [Chapter 5Watch out0:10](/instiv2/media/tut4/concentration-herfindahl-watch-phone-dark-v4-va2.mp4) Screens from the RupeeCase app on sample data. Strategy figures are model, back tested, as of the date on screen. Formula and example numbers are illustrative. Mark as watched 6In this screen ## Every button the video points at. A still from each chapter with its buttons and fields numbered. Pick a number to zoom in on it; hover the still for a close up; Esc shows the whole screen again. Sample data, no order is placed. **1**Where it is**2**What it means**4**How to read it ### Chapter 1: Where it is 1 Show the whole screen 1 Show the whole screen 1. 1**Position sizes**Position sizes, on the Holdings tab, shows how spread the money is. Shown in the video, not on this still ### Chapter 2: What it means 123 Show the whole screen 123 Show the whole screen 1. 1**Five largest**Top 5 share adds up the five largest positions. Shown in the video, not on this still 2. 2**Sum of squared shares**Herfindahl adds every share squared: 1 means one position. Shown in the video, not on this still 3. 3**One over Herfindahl**Effective holdings: the equal positions that would match it. Shown in the video, not on this still ### Chapter 4: How to read it 12 Show the whole screen 12 Show the whole screen 1. 1**Under Holdings**Here 22 holdings count like about 17 equal ones. Shown in the video, not on this still 2. 2**Cash beside the holdings**On a portfolio, Cash share shows the cash on its own. Shown in the video, not on this still ## Where it is ScreenHoldings tab, Position sizesAdvanced The Holdings tab, Position sizes card. Top 5 share, Largest position and Holdings show in Basic; Effective holdings and Herfindahl in Advanced; Cash share on a portfolio. Indices in this video: [Allcap](/strategies/allcap) (strategy page) and [Large Cap Multi Asset](/strategies/largecap-multi-asset) (the sample portfolio). ## What it means The card measures how much of the money sits in a few names. Top 5 share adds the five largest positions; Largest position names the biggest. Herfindahl adds up every position's share squared: 1 means one position holds everything, and an equal split over N names gives 1 / N. Effective holdings turns it back into a count: the number of equal positions that would be just as concentrated. On a portfolio, Cash share is the cash beside the holdings. ## The formula Square each position's share and add the squares: that is the Herfindahl index. One over it is the effective number of holdings. As computed in the RupeeCase app`Share = position weight / total weight (portfolio: live value / holdings value, cash left out) Herfindahl = sum of share squared (0 to 1) Effective holdings = 1 / Herfindahl Top 5 share = sum of the five largest shares Cash share = cash / (holdings value + cash), portfolio only` ## Worked example Example only * 4 positions at 25% each: 4 x 0.25 x 0.25 = 0.25, effective 4 * One at 70%, three at 10%: 0.49 + 3 x 0.01 = 0.52 * Effective holdings 1 / 0.52 = 1.9 ## How to read it * At equal weights Effective holdings matches Holdings, as on Allcap's 60. * Effective holdings well under Holdings: a few positions carry most of the money. * A higher Herfindahl means more concentration. ## Watch out * It counts positions, not how they move together: two similar stocks still count as two. * On a portfolio the shares leave cash out; Cash share shows it on its own. * On a multi asset portfolio an ETF can be the largest position. ## Transcript Tap Sound on for voice and music. These are the captions of the video, chapter by chapter. 1. 0:00**Where it is.** Position sizes, on the Holdings tab, shows how spread the money is. 2. 0:10**What it means.** Top 5 share adds up the five largest positions. 3. 0:36**Worked example.** Worked example, example only: 4 positions at 25% each: 4 x 0.25 x 0.25 = 0.25, effective 4. One at 70%, three at 10%: 0.49 + 3 x 0.01 = 0.52. Effective holdings 1 / 0.52 = 1.9. 4. 0:42**How to read it.** Here 22 holdings count like about 17 equal ones. 5. 1:02**Watch out.** Watch out: It counts positions, not how they move together: two similar stocks still count as two. On a portfolio the shares leave cash out; Cash share shows it on its own. On a multi asset portfolio an ETF can be the largest position. ## Terms in this tutorial * [Herfindahl](/learn/glossary#herfindahl)A concentration score: each position's share squared, all added up. * [Cash share](/learn/glossary#cash-share)The part of a portfolio sitting in cash rather than in stocks. * [Position sizes](/learn/glossary#position-sizes)How the money is spread across the stocks held. * [diversification](/learn/glossary#diversification)Spreading capital across assets that do not move together. ## Learn it in depth * [Module 4.2: Position Sizing8 min read, free](/learn/path-4/module-4-2-position-sizing) * [Module 4.5: Risk Management for Systematic Portfolios9 min read, free](/learn/path-4/module-4-5-risk-management) TKeep watching ## Next tutorial. [1:06Next tutorial, Read a strategyMarket cap bands: how does the app call a stock large or small?How the Composition card sorts holdings into Large, Mid, Small, Micro cap or Other by NSE index membership, and how the index lists are grouped.Watch next](/learn/terminal/market-cap-bands-and-indices) ### Related tutorials * [1:00Read a strategy, BasicThe Holdings table: what do entry, last price and weight mean?1:00 video, BasicWatched](/learn/terminal/reading-the-holdings-table) * [0:56Find and compare, AdvancedCorrelation: how closely did two lines move together?0:56 video, AdvancedWatched](/learn/terminal/correlation-and-diversification) * [1:06Read a strategy, BasicGrowth per year: how fast did the model grow?1:06 video, BasicWatched](/learn/terminal/growth-per-year) [All 67 terminal tutorials](/learn/terminal/) Try it in Practice ## See it on your own screen. Practice mode runs the whole terminal without real orders, so you can open any strategy and find every screen from this tutorial for yourself. 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