The Trump administration announced its intention to impose trade tariffs on several countries. A potential response from these nations could be retaliatory tariffs on U.S. exports. Investors will want to understand which market segments are most exposed to potential tariff-related disruptions.

In concentrated markets, investors can become wary of portfolios dominated by sentiment factors. A simple crowding-score-based constraint can help investors identify securities most at risk of de-rating. 

Using a simulation-based analysis, we demonstrate that in periods of high market concentration, both asset owners and asset managers could potentially benefit from considering a benchmark-splitting approach.