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Dressing |
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A trading activity 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.
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Performance
reports and a list of the holdings in a mutual fund are usually sent
to clients every quarter. So before this time the fund manager will
sell stocks with large losses, therefore only reporting positions
that have appreciated in value.
Another way mutual funds window dress is by purchasing a successful
stock on the very last day of the quarter so it could report the stock
as part of the fund's quarterly holdings. |
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Dictionary
