Portfolio Manager

Comprehensive portfolio analysis and management skill that integrates with Alpaca MCP Server to fetch real-time holdings data and generate detailed portfolio reports with rebalancing recommendations.

Overview

Portfolio Manager analyzes your investment portfolio across multiple dimensions:

• Asset Allocation - Stocks, bonds, cash distribution vs target allocation
• Diversification - Sector breakdown, position concentration, correlation analysis
• Risk Assessment - Portfolio beta, volatility, maximum drawdown, risk score
• Performance Review - Winners/losers, absolute and relative returns, benchmarking
• Position Analysis - Detailed evaluation of individual holdings (HOLD/ADD/TRIM/SELL recommendations)
• Rebalancing Plan - Specific actions to optimize portfolio allocation

Features

✅ Alpaca Integration - Automatically fetches positions via Alpaca MCP Server ✅ Multi-Dimensional Analysis - Asset class, sector, geography, market cap, style ✅ Risk Metrics - Beta, volatility, drawdown, concentration, HHI ✅ Position Evaluation - Thesis validation, valuation, sizing, relative opportunity ✅ Rebalancing Recommendations - Prioritized actions (TRIM/ADD/HOLD/SELL) ✅ Comprehensive Reports - Markdown reports saved to repository ✅ Model Portfolios - Compare to Conservative/Moderate/Growth/Aggressive benchmarks

Prerequisites

Required: Alpaca Account and MCP Server

This skill requires:

1. Alpaca Brokerage Account (paper or live)

   • Sign up: https://alpaca.markets/
   • Paper trading account (free, simulated money) recommended for testing

2. Alpaca MCP Server configured in Claude

   • Provides access to portfolio positions via MCP tools
   • Setup guide: references/alpaca-mcp-setup.md

3. API Credentials (API Key ID and Secret Key)

   • Generate in Alpaca dashboard
   • Set environment variables:

     export ALPACA_API_KEY="your_api_key_id"
     export ALPACA_SECRET_KEY="your_secret_key"
     export ALPACA_PAPER="true"  # or "false" for live trading
     

Optional: Manual Data Entry

If Alpaca MCP Server is unavailable, you can provide portfolio data manually via CSV:

symbol,quantity,cost_basis,current_price
AAPL,100,150.00,175.50
MSFT,50,280.00,310.25

Installation

For Claude Desktop/Code Users

1. Copy skill to Claude Skills directory:

   cp -r portfolio-manager ~/.claude/skills/
   

2. Restart Claude to detect the skill

3. Configure Alpaca credentials (see Prerequisites)

For Claude Web App Users

1. Download ZIP package:

   • zip-packages/portfolio-manager.zip

2. Upload to Claude:

   • Click "+" in Claude web interface
   • Select "Upload Skill"
   • Choose portfolio-manager.zip

3. Note: Alpaca MCP Server may not be available in web version; use manual CSV data entry

Usage

Basic Portfolio Analysis

Simply ask Claude to analyze your portfolio:

"Analyze my portfolio"
"Review my current positions"
"How's my portfolio doing?"

The skill will:

1. Fetch positions from Alpaca via MCP
2. Enrich data with market information
3. Perform comprehensive analysis
4. Generate detailed report
5. Provide rebalancing recommendations

Specific Analysis Types

Asset Allocation Check:

"What's my current asset allocation?"
"Am I properly diversified?"

Risk Assessment:

"How risky is my portfolio?"
"What's my portfolio beta?"
"What are my biggest risks?"

Rebalancing:

"Should I rebalance my portfolio?"
"What should I buy or sell?"
"Is anything too concentrated?"

Position Review:

"Should I sell Tesla?"
"Is Apple overweight in my portfolio?"
"What should I do with my tech stocks?"

Performance:

"What are my best performing stocks?"
"Which positions are losing money?"
"How am I doing vs the S&P 500?"

Analysis Output

Portfolio Manager generates a comprehensive markdown report including:

1. Executive Summary

• Overall portfolio health
• Key strengths and concerns
• Primary recommendations

2. Holdings Overview

• All positions with quantities, values, P/L

3. Asset Allocation Analysis

• Current vs target allocation
• Sector breakdown
• Geographic distribution
• Market cap distribution

4. Diversification Assessment

• Position concentration analysis
• Sector diversification score
• Correlation concerns
• HHI concentration index

5. Risk Assessment

• Portfolio beta and volatility
• Maximum drawdown
• Risk concentrations
• Overall risk score

6. Performance Review

• Total portfolio value and P/L
• Best and worst performers
• Performance vs benchmark (if available)

7. Position Analysis

• Detailed analysis of top 10-15 holdings
• Thesis validation
• Valuation assessment
• Position sizing
• HOLD/ADD/TRIM/SELL recommendations

8. Rebalancing Recommendations

• Prioritized actions (High/Medium/Low priority)
• Specific trade recommendations
• Cash deployment suggestions
• Tax considerations

9. Action Items

• Immediate actions
• Medium-term tasks
• Monitoring priorities

Report Location: portfolio_analysis_YYYY-MM-DD.md in repository root

Reference Materials

The skill includes comprehensive reference documentation:

• references/alpaca-mcp-setup.md - Alpaca API setup guide
• references/asset-allocation.md - Asset allocation theory and frameworks
• references/diversification-principles.md - Diversification concepts and metrics
• references/portfolio-risk-metrics.md - Risk measurement and interpretation
• references/position-evaluation.md - Position analysis framework
• references/rebalancing-strategies.md - Rebalancing methodologies
• references/target-allocations.md - Model portfolios by risk profile
• references/risk-profile-questionnaire.md - Risk tolerance assessment

These references are loaded automatically by the skill as needed during analysis.

Testing Alpaca Connection

Before using the skill, test your Alpaca API connection:

python3 portfolio-manager/scripts/test_alpaca_connection.py

Expected output:

✓ Successfully connected to Alpaca API
Account Status: ACTIVE
Equity: $100,000.00
Cash: $50,000.00
Buying Power: $200,000.00
Positions: 5

If you see errors, consult references/alpaca-mcp-setup.md for troubleshooting.

Example Workflow

Initial Portfolio Review

1. Trigger analysis:

   User: "Analyze my portfolio"
   

2. Skill workflow:

   • Fetches positions from Alpaca MCP
   • Retrieves account information
   • Gathers market data for each position
   • Performs comprehensive analysis
   • Generates detailed report

3. Report generated:

   • portfolio_analysis_2025-11-08.md
   • Includes all analysis sections
   • Specific recommendations provided

4. Follow-up questions:

   User: "Why should I trim NVDA?"
   User: "What should I buy instead?"
   User: "Is my tech allocation too high?"
   

Ongoing Monitoring

Quarterly Review:

User: "Review my portfolio for Q4 2025"

After Market Events:

User: "How did the market crash affect my portfolio?"

Before Rebalancing:

User: "Generate rebalancing recommendations"

Key Concepts

Asset Allocation

Distribution of portfolio across asset classes (stocks, bonds, cash). The primary driver of portfolio risk and return.

Diversification

Spreading investments across multiple positions, sectors, and geographies to reduce unsystematic risk.

Rebalancing

Systematically selling overweight positions and buying underweight positions to maintain target allocation.

Position Sizing

Determining appropriate weight for each holding based on conviction, risk, and portfolio constraints.

Risk-Adjusted Returns

Evaluating performance relative to risk taken (Sharpe ratio, Sortino ratio).

Concentration Risk

Excessive exposure to single position, sector, or theme that creates elevated portfolio risk.

Limitations and Disclaimers

Important Notes:

1. Not Financial Advice - This tool provides informational analysis only, not personalized financial advice.

2. Data Accuracy - Analysis quality depends on Alpaca API data accuracy and third-party market data.

3. Market Conditions - Historical analysis may not predict future performance, especially during regime changes.

4. Tax Implications - Tax impact estimates are approximate only; consult a tax professional.

5. Execution Risk - Recommendations assume ability to execute trades at current market prices.

Always:

• Verify critical data independently
• Consult qualified financial advisor before major decisions
• Consider your unique circumstances, risk tolerance, and goals
• Review tax implications with tax professional

Troubleshooting

"Alpaca MCP Server not connected"

Solutions:

1. Verify MCP server is running (claude mcp status if available)
2. Check environment variables are set: echo $ALPACA_API_KEY
3. Restart Claude to reinitialize MCP servers
4. Verify API keys in Alpaca dashboard
5. See references/alpaca-mcp-setup.md for detailed setup

"Invalid API credentials"

Solutions:

1. Verify API Key ID and Secret Key (no typos, spaces)
2. Check ALPACA_PAPER setting matches your keys (paper vs live)
3. Regenerate API keys in Alpaca dashboard
4. Ensure account status is active

"No positions found"

Solutions:

1. Verify positions exist in Alpaca dashboard
2. Confirm you're checking correct account (paper vs live)
3. Check account number matches
4. Try refreshing: ask Claude to fetch positions again

Report seems inaccurate

Solutions:

1. Verify Alpaca data is current (check Alpaca dashboard)
2. Check if market data is delayed (free tier is 15-min delayed)
3. Manually verify a few key positions
4. Report discrepancies to improve analysis

Version History

• v1.0 (November 2025) - Initial release
  • Alpaca MCP Server integration
  • Comprehensive portfolio analysis
  • Multi-dimensional risk assessment
  • Position evaluation framework
  • Rebalancing recommendations
  • Model portfolio benchmarks

Support and Contributing

For Issues:

• Check references/ documentation
• Review troubleshooting section above
• Test Alpaca connection with test_alpaca_connection.py
• Check Alpaca API status: https://status.alpaca.markets/

For Questions:

• Alpaca API docs: https://alpaca.markets/docs/
• Alpaca community: https://forum.alpaca.markets/

Skill Enhancement Ideas:

• Additional broker integrations (Interactive Brokers, Schwab)
• Options portfolio analysis
• Factor exposure analysis
• Monte Carlo retirement projections
• Tax-loss harvesting automation

Related Skills

This skill works well in combination with:

• US Stock Analysis - Deep dive into individual positions
• Value Dividend Screener - Find replacement stocks for rebalancing
• Market News Analyst - Understand recent market-moving events
• Sector Analyst - Analyze sector rotation patterns
• US Market Bubble Detector - Assess overall market risk environment

License

See repository root for license information.

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Remember: Successful portfolio management requires discipline, patience, and long-term perspective. Use this skill to maintain systematic approach and avoid emotional decision-making. The best portfolio is one you can stick with through all market conditions.