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Window Dressing

Copying from a certain place and feels its something of value. Seems like this window dress not too sexy leh. I need to ahem.

What Does Window Dressing Mean?
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 bear 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.

Investopedia explains Window Dressing
Performance reports and a list of the holdings in a mutual fund are usually sent to clients every quarter. Another variation of window dressing is investing in stocks that don’t meet the style of the mutual fund. For example, a precious metals fund might invest in stocks that are in a hot sector at the time, disguising the fund’s holdings, so clients really have no idea what they are paying for.

Window dressing may make a fund appear more attractive, but you can’t hide poor performance for long.

Perhaps you have picked up counters which the big boys (fund managers) are trying to jettison. They usually make these counters very attractive by leaving them with a picture perfect bullish break-out price pattern so that investors will “beo” at them.. Ever wonder why there have been so many breakouts that failed recently? . Actually they did not fail or lost steam, they are simply just fake breakouts….. specially engineered to appear on TA charts, patiently waiting to be picked up by enthusiastic investors who want to “cheong” and “huat ah….” during these times: Have you ever wonder how a US$57 billion loss of the country biggest investment house can be recovered within a year? Its simple. They just find a lot of suckers to pay for it, It is not smoke and mirror, its simply trading and portfolio management strategy.

Seasoned traders will neither “beo” nor “cheong” when they know big boys are window dressing, they leave them to the novice…. Some small lessons I picked up having spent years in investment banks,,,,,

Have fun….

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