portfolio dressing

portfolio dressing definition - business

portfolio dressing

The addition and deletion of securities by an institutional investor before the end of a financial reporting period in order to make the portfolio appear acceptable to investors. Typically, portfolio dressing involves the sale of big losers and the addition of big gainers to convey the impression that the portfolio manager is competent. Also called dressing up a portfolio.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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