"The final week of every quarter is known as “window dressing week.” It’s when
portfolio managers sell stocks that have done poorly during the quarter and
replace them with ones that did well.
The idea is to make themselves look good: Reports to investors include snapshots of major fund holdings at the end of the quarter. So packing the big winners into the fund makes the manager look like a great stock picker.
But if those winners were added to the fund at only the last minute, it was too late. Most of the gains came earlier – so your fund didn’t benefit. Moreover, the winners often are sold soon after the reporting period ends"
Thursday, December 28, 2006
Is your fund manager deceiving you? Read on | TheNewsTribune.com | Tacoma, WA
Is your fund manager deceiving you? Read on TheNewsTribune.com Tacoma, WA: