Tea with ENZA: What is "window dressing"?

We often come across the phrase "window dressing" when we watch the business news on TV or read the "Money" section in the newspapers. What does it mean?

Does it mean buying some curtains and blinds for the windows in the buildings along Shenton Way?

Anyway, Solace, a guest blogger, asked that I put this question to ENZA and here is the reply:

Wow what a big question...

I assume your reader is asking about fund managers...

most fund managers do index hugging, only to what extend... So, there will be some winner and loser in the holding... they will normally look at the trend and decide. Trend in the sense of macro view, for example REITs is not going to do so well this year, they hold less...

They will never sell everything unless it is necessary (such as liquidation of funds or market correction)

FMs will sell the loss making fund and liquidate some of the profitable (due to client withdrawal or portfolio balancing after the selling of loss-making funds) However, this generally apply to big funds...

smaller Fund house don't do that due to the scale of the funds. (capital loss are deem to be eligible for a tax reduction at year end filing)

And window dressing normally occur for FMs at every quarter end.

No windows involved. Definitely, no curtains and blinds too.

Related post:
Tea with ENZA: Explaining Mr. Market's behaviour.