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
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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).
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

dressing up a portfolio

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.