Overweight (redirected from overweighting)

Overweight

Refers to an investment position that is larger than the generally accepted benchmark.

Notes:

For example, if a company normally holds a portfolio whose weighting of cash is 10%, and then increases cash holdings to 15%, the portfolio would have an overweight position in cash.

See also: Benchmark, Portfolio, Portfolio Management, Underweight

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Overweight

Usually refers to recommendation that leads an investor to increase their investment in a particular security or asset class. The increase is usually with respect to a benchmark. Suppose that U.S. equities compose 40% of the benchmark portfolio. If one thinks the U.S. will outperform, the investor may increase the exposure to U.S. equity to more than 40%.