the portfolio rule, (c)(1)(ii): a portfolio position that substantially overlaps the holdings

A portfolio is 20 or more unrelated issuers, (c)(1)(i). A position in more than one stock but not a portfolio is instead a separate position in each stock, (c)(1)(v), tested under the general rule, (b)(1)

Step 2 the position reflects a portfolio: stocks of 20 or more unrelated issuers UNDECIDED

“Substantially overlap” is set out in Reg. § 1.246-5(c)(1)(iii).

Step Two tests the whole position; Step Three the largest percentage of it, (c)(1)(iii)(C). Testing dates: (c)(1)(iv)

Step 3 substantial overlap: Step Two, for the whole position or the largest percentage of it that overlaps (Step Three) UNDECIDED

Step One builds the Subportfolio: for each stock in the position, the lesser of its value in the position and in the holdings, (c)(1)(iii)(A). Short of 70 percent, Step Three repeats Steps One and Two on a smaller position; the largest percentage that overlaps is substantially similar or related to its Subportfolio, (c)(1)(iii)(C)

Step 4 substantial overlap UNDECIDED

Subportfolio: Step One, (c)(1)(iii)(A). Short of 70 percent, Step Three tests a smaller part of the position, (c)(1)(iii)(C)