Window Dressing Time (and why SVL will be 3.21+) I just posted this on SANDSTORM GOLD's Board and should paste it here too:
We are entering the Major Window Dressing period of the year. Window Dressing is done to some degree each QTR, but the Big One is End of September and End of October. This is the End of Year for most All Mutual Funds. It pays to research this...many articles, a few I found on SeekingAlpha. I'll paste a few clips, and then consider how much both Sandstorm Gold and SilverCrest will be Accumulated. SilverCrest @ 3.21 will be a Triple or 200% Gainer, Sandstorm has a Split-Adjusted Low of 4.95, both made their Low on Oct 4, 2011. Gain over 100% and that 15 will make us a Triple or 200% Gainer. Fund Managers are thrilled to find a 50% Gainer. The clips explain how and why these stocks will be Accumulated, to show as Holdings regardless of when they bought. Its the End of Year Annual report that gets sent out and Highlighted trying to attract new clients and give the current ones a glowing "Picture".
You can use this knowledge also to look for Losers that get way Oversold
“A strategy used by mutual fund and portfolio managers near the year or quarter end to improve the appearance of the portfolio/fund performance before presenting it to clients or shareholders. To window dress, the fund manager will sell stocks with large losses and purchase high-flying stocks near the end of the quarter. These securities are then reported as part of the fund's holdings.” In other words, fund and portfolio managers intentionally deceive their investors, making it appear that they’ve always been in highflying stocks during the current quarter.
https://seekingalpha.com/article/228280-window-dressing-tricks-and-treats
Window Dressing Tricks and Treats
October 4, 2010
Window dressing is defined as the act partaken by a portfolio manager to strategically manage his funds' holdings to better serve capital acquisition efforts. It's a superficial manipulation of the appearance of a fund's past activity in order to garner new capital, and you need to be aware of it, and maybe even profit from it.
Last week brought the close of the third quarter for most corporations. However, about half of the institutional mutual funds in existence close their fiscal year and quarter at the end of October. Still, "window dressing" should be factoring into the movement of stocks today. Window dressing is defined as the acts partaken by portfolio managers to strategically manage their funds' holdings to better serve capital acquisition efforts. Indeed, those investment pools with October year-ends will be engaging in such action through the month ahead, and may be already doing so in order to pre-empt their peers and to gain better exit and entry points for specific trades.
What this means is that portfolio managers are, and will be, actively shuffling out of the fiscal year's losers, or stocks that have lost significant value this year, and into winners, or capital gainers. This dresses their prospectuses up in order to attract investors that might act on perception. It's like Andre Agassi's memorable advertising campaign, where he utters the unforgettable phrase, "Image is everything." Image indeed plays an important role in the distribution of capital.
The theory behind window dresses is based on investment company observation that prospective investors will place their money in funds that hold names they know have increased in value in recent times, and not in the funds that hold the shares of recent losers. When one sees a fund holds a stock that has had a dramatic loss of value, one might be less inclined to send a check out to that particular fund manager. The same goes for the year's big winners held in portfolios.
finance.yahoo.com/mbview/userview/?&u=jolly...7...
The mutual funds all end their fiscal year at the end of September or October. ... 30 day wash sale rule) and mutual funds that sold for window dressing may buy ...
Stocks are volatile today because mutual fund managers are doing some window dressing to close the quarter. Fund managers are simply trying to make their funds lookas attractive as possible before disclosing an updated list of holdings to the public. So, they're buying stocks that have large gains, and selling their losers.
If you were a Fund Manager what would you invest in. BTW, there is one SeekingAlpha article that shows the Gains picked up in the final month and final 5 days of the big gainers...amazing
Low OCT 4 = 4.95
Oct 4, 2011 DayLow = 0.99, Close = 1.02, Split Adj.= 5.10
LOW = OCT 4 Low = 1.07, 1.13 CLOSE