According to a recent LinkedIn post from Equity Risk Sciences, separately managed accounts could reach $5T in assets by 2026 as demand grows for personalized portfolios and tax optimization. The post highlights the role of direct indexing in handling concentrated, low cost basis stock positions while warning that personalization without robust risk analytics may add complexity rather than clarity.
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The company’s commentary emphasizes measuring impairment risk in concentrated holdings using historical base rates from thousands of comparable cases, positioning data science as a key competitive edge for advisors. For investors, this focus suggests potential revenue opportunities for firms providing quantitative risk tools and research to RIAs, as well as a broader shift in the wealth management industry toward data-driven SMA and direct-indexing solutions.