This blog documents my MBA student life at Ryerson University, Canada (2010-2012). It was an attempt to demystify the MBA experience, help understand MBA topics & encourage MBA wannabes. I have a Pre-MBA blog about B-School application process (and a few other blogs) as well. I used to blog actively in the past and interact with readers regularly, but life got very busy after my MBA. Good luck. Take care. Cheers! Gerry.
Monday, December 26, 2011
"Smart Money" definition
- Cash invested or wagered by those considered to be experienced, well-informed, "in-the-know" or all three.
- Investments made by people experienced and well informed in matters of finance.
- money bet or invested by experienced gamblers or investors, esp with inside information.
- Investors whose decisions about what products or sectors to invest in turn out to be correct. Everyone wants to invest where the smart money is.
- Experienced investors and traders, who tend to spot trends and find investment opportunities before everyone else.
"Window Dressing" by Mutual Fund Managers.
At the end of the year, some mutual fund managers sell stocks that have seriously underperformed during the year. Called "window dressing", this practice is meant to keep these stocks off of their year-end reports.The theory behind buying window dressing stocks is that after a year of poor performance they may be reasonably priced; after being dumped in window dressing trades, their price may even be artificially low.
But sometimes, the stocks sold at the year end by Mutual Fund Managers do very well. For example, the stocks suggested as being likely candidates for window dressing by one expert gained an average of 15% between December 10th and January 15th - compared with the market's average performance of just 2.7%.
More soon....
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