Window Dressing Season Starts

Web Designer, Author, Portfolio Manager, Quantitative, Technical & Qualitative Analyst • Jun 24, 2014 at 11:42 AM EDT

'Window Dressing' is a strategy used by mutual fund and portfolio managers near the year or quarter end to improve the appearance of the portfolio/fund performance before presenting it to clients or shareholders. To window dress, the fund manager will sell stocks with large losses

With one week to go before the end of the quarter Window Dressing has now begun.

Definition of Window Dressing

A strategy used by mutual fund and portfolio managers near the year or quarter end to improve the appearance of the portfolio/fund performance before presenting it to clients or shareholders. To window dress, the fund manager will sell stocks with large losses and purchase high flying stocks near the end of the quarter. These securities are then reported as part of the fund's holdings.

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