diff --git a/docs/agent/CURRENT_STATE.md b/docs/agent/CURRENT_STATE.md
index 93555e26..c829e364 100644
--- a/docs/agent/CURRENT_STATE.md
+++ b/docs/agent/CURRENT_STATE.md
@@ -1,6 +1,6 @@
 # Current Milestone
 
-Portfolio Manager Phase 1 (data foundation) complete and merged. All 4 Supabase tables live, 51 tests passing (including integration tests against live DB).
+Portfolio Manager Phases 2-5 complete. All 93 tests passing (4 integration skipped).
 
 # Recent Progress
 
@@ -12,10 +12,20 @@ Portfolio Manager Phase 1 (data foundation) complete and merged. All 4 Supabase
   - Business logic: avg cost basis, cash accounting, trade recording, snapshots
 - **PR #22 merged**: Unified report paths, structured observability logging, memory system update
 - **feat/daily-digest-notebooklm** (shipped): Daily digest consolidation + NotebookLM source sync
+- **Portfolio Manager Phases 2-5** (current branch):
+  - `tradingagents/portfolio/risk_evaluator.py` — pure-Python risk metrics (log returns, Sharpe, Sortino, VaR, max drawdown, beta, sector concentration, constraint checking)
+  - `tradingagents/portfolio/candidate_prioritizer.py` — conviction × thesis × diversification × held_penalty scoring
+  - `tradingagents/portfolio/trade_executor.py` — executes BUY/SELL (SELLs first), constraint pre-flight, EOD snapshot
+  - `tradingagents/agents/portfolio/holding_reviewer.py` — LLM holding review agent (run_tool_loop pattern)
+  - `tradingagents/agents/portfolio/pm_decision_agent.py` — pure-reasoning PM decision agent (no tools)
+  - `tradingagents/portfolio/portfolio_states.py` — PortfolioManagerState (MessagesState + reducers)
+  - `tradingagents/graph/portfolio_setup.py` — PortfolioGraphSetup (sequential 6-node workflow)
+  - `tradingagents/graph/portfolio_graph.py` — PortfolioGraph (mirrors ScannerGraph pattern)
+  - 48 new tests (28 risk_evaluator + 10 candidate_prioritizer + 10 trade_executor)
 
 # In Progress
 
-- Portfolio Manager Phase 2: Holding Reviewer Agent (next)
+- Portfolio Manager Phase 6: CLI integration / end-to-end wiring (next)
 - Refinement of macro scan synthesis prompts (ongoing)
 
 # Active Blockers
diff --git a/tradingagents/graph/portfolio_graph.py b/tradingagents/graph/portfolio_graph.py
index 8095d854..7d91af84 100644
--- a/tradingagents/graph/portfolio_graph.py
+++ b/tradingagents/graph/portfolio_graph.py
@@ -168,7 +168,10 @@ class PortfolioGraph:
         }
 
         if self.debug:
+            final_state = {}
             for chunk in self.graph.stream(initial_state):
                 print(f"[portfolio debug] chunk keys: {list(chunk.keys())}")
+                final_state.update(chunk)
+            return final_state
 
         return self.graph.invoke(initial_state)
diff --git a/tradingagents/portfolio/candidate_prioritizer.py b/tradingagents/portfolio/candidate_prioritizer.py
index ea10cd27..ac9bd879 100644
--- a/tradingagents/portfolio/candidate_prioritizer.py
+++ b/tradingagents/portfolio/candidate_prioritizer.py
@@ -72,21 +72,22 @@ def score_candidate(
     conviction_weight = _CONVICTION_WEIGHTS.get(conviction, 1.0)
     thesis_score = _THESIS_SCORES.get(thesis, 1.0)
 
-    # Diversification factor based on sector exposure
+    # Diversification factor based on sector exposure.
+    # Tiered: 0.0× (sector full), 0.5× (70–100% of limit), 1.0× (under 70%), 2.0× (new sector).
     max_sector_pct: float = config.get("max_sector_pct", 0.35)
     concentration = sector_concentration(holdings, portfolio_total_value)
     current_sector_pct = concentration.get(sector, 0.0)
 
     if current_sector_pct >= max_sector_pct:
-        diversification_factor = 0.0
+        diversification_factor = 0.0  # sector at or above limit — skip
     elif current_sector_pct >= 0.70 * max_sector_pct:
-        diversification_factor = 0.5
+        diversification_factor = 0.5  # near limit — reduced bonus
     elif current_sector_pct > 0.0:
-        diversification_factor = 1.0
+        diversification_factor = 1.0  # existing sector with room
     else:
-        diversification_factor = 2.0
+        diversification_factor = 2.0  # new sector — diversification bonus
 
-    # Held penalty
+    # Held penalty: already-owned tickers score half (exposure already taken).
     held_tickers = {h.ticker for h in holdings}
     held_penalty = 0.5 if ticker in held_tickers else 1.0
 
diff --git a/tradingagents/portfolio/risk_evaluator.py b/tradingagents/portfolio/risk_evaluator.py
index 005c2001..d7f7cb9a 100644
--- a/tradingagents/portfolio/risk_evaluator.py
+++ b/tradingagents/portfolio/risk_evaluator.py
@@ -108,6 +108,10 @@ def value_at_risk(
     if not returns:
         return None
     sorted_returns = sorted(returns)
+    # Require at least 20 observations for a statistically meaningful VaR estimate.
+    # With fewer points the percentile calculation is unreliable.
+    if len(sorted_returns) < 20:
+        return None
     idx = max(0, int(math.floor(percentile * len(sorted_returns))) - 1)
     return sorted_returns[idx]
 
diff --git a/tradingagents/portfolio/trade_executor.py b/tradingagents/portfolio/trade_executor.py
index 577e32e4..a11bd573 100644
--- a/tradingagents/portfolio/trade_executor.py
+++ b/tradingagents/portfolio/trade_executor.py
@@ -77,7 +77,7 @@ class TradeExecutor:
         sells = decisions.get("sells") or []
         buys = decisions.get("buys") or []
 
-        # --- SELLs first ---
+        # --- SELLs first (frees cash before BUYs; no constraint pre-flight for sells) ---
         for sell in sells:
             ticker = (sell.get("ticker") or "").upper()
             shares = float(sell.get("shares") or 0)