Define: Dressing Up A Portfolio

UK Accounting Glossary

Definition: Dressing Up A Portfolio



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Full Definition of Dressing Up A Portfolio


Dressing up a portfolio refers to the practice of some portfolio managers of selling weak stocks and purchasing strong stocks near the end of a reporting period to improve the portfolio’s appearance. Dressing up a portfolio enables managers to present an impressive-looking portfolio in quarterly or annual fund reports. Another term for dressing up a portfolio is window dressing. The problem with dressing up a portfolio is that stocks are generally sold at large losses and purchased at premiums for dressing up a portfolio. Dressing up a portfolio may produce a portfolio that looks good on paper but has a dismal investment performance. Another version of dressing up a portfolio is investing in stocks that don’t match the fund’s investing style. Adding highly speculative technology stocks to a blue-chip fund is an example of dressing up a portfolio.


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Definition Sources


Definitions for Dressing Up A Portfolio are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th February 2020.