Will ‘window dressing’ boost Apple shares?

“Apple Inc. (AAPL) shares are up 47.2% year-to-date as of 3/23/2012,” Bachar Samawi writes for Seeking Alpha. “This makes Apple the sixth best performing stock in the NASDAQ-100 index while it maintains the second highest analysts’ rating. Despite institutional ownership of 69.98%, Apple is actually ranked 72 out of 100 in such category. As we approach the last day of the quarter, could Apple shares get an even bigger boost from portfolio managers’ seasonal ritual of ‘window dressing?'”

“Window dressing is the term applied to the activity of predominantly buying in-favor stocks and selling out-of-favor stocks prior to the end of a quarter,” Samawi writes. “Many portfolio managers engage in such activity in order to appeal to potential fund investors as managers disclose their funds’ holdings at the end of the quarter; by showing ownership of winning stocks, and non-ownership of losing stocks, a potential investor may find a certain fund more appealing than another for its ‘apparent’ ability to pick winners.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Brawndo Drinker” for the heads up.]


  1. disposableidentity, “another reason mutual funds are a bad idea”. How often does a prospectus come along touting MSFT in its Top Ten? Or Top 1%? And when was the last time MSFT went up in price? But, it’s a name folks recognize as a Profit Maker.
    So … what ARE the five better-performing stocks? And, were they also better performing each of the past two calendar years? Oh … never mind the second part – I can get that out of the system.

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