dressing up a portfolio


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Dressing up a portfolio

Money managers' strategy to make transactions for the sole purpose of making a portfolio look good to the investor near the end of a reporting period. See: Window dressing

Window Dressing

The act or practice of buying and selling securities on a portfolio immediately before a report is due in order to make the portfolio look more profitable or otherwise healthier than it has been. For example, the portfolio manager may sell stocks that have performed poorly and buy those that have performed well. Portfolios receive window dressing in order to make them look more attractive to prospective investors, which in turn makes the portfolio manager look more successful. The practice is also called dressing up a portfolio or portfolio dressing. See also: Manager Universe (benchmark).

dressing up a portfolio