December 11, 2024 6:00 AM
DEFINITION
By Staff Reporters
SPONSOR: http://www.MarcinkoAssociates.com
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To most people the holiday season means decorations at home and at work, but it also can mean “window dressing” in your mutual fund.
This somewhat disparaging term is used to describe the practice of a mutual fund making cosmetic changes to its portfolio just before the end of each calendar quarter. It’s done because funds publish their exact holdings of securities four times a year based on what they own at the end of each quarter.
“The basic concept is that managers are either hiding their mistakes or adding winners to make themselves look a little smarter,” says Russ Kinnel, director of manager research at fund researcher Morningstar Inc. in Chicago. “Of course, it doesn’t necessarily help performance,” he adds.
Santa Rally: https://medicalexecutivepost.com/2021/12/16/what-is-the-santa-claus-stock-market-rally/
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Posted by Dr. David Edward Marcinko MBA MEd CMP™
Categories: "Ask-an-Advisor", Financial Planning, Funding Basics, Glossary Terms, Investing, Touring with Marcinko
Tags: Marcinko, Morningstar, mutual fund window dressing, Mutual Funds, Russ Kinnel, santa claus rally, wall street window dressing, window dressing
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