underweight

underweight
Usually refers to recommendation that leads an investor to reduce their investment in a particular security or asset class. The reduction is usually with respect to a benchmark. Suppose that U.S. equities compose 40% of the benchmark portfolio. If one thinks the U.S. will underperform, the investor may reduce the exposure to U.S. equity to less than 40%. Bloomberg Financial Dictionary

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underweight un‧der‧weight [ˌʌndəˈweɪt◂ ǁ -ər-] adjective
FINANCE used to show that an investor has less of a particular investment than usual, or less of it than they should have:

• Investors would be wise to be underweight in the German banking and retailing sectors at the moment.

— underweight verb [transitive]

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underweight UK US /ˌʌndəˈweɪt/ adjective STOCK MARKET
used to describe portfolios that include too little of a particular type of share, bond, etc.: underweight in sth »

He's seriously underweight in Japanese bonds, which make up only 8% of his portfolio.

an underweight rating/recommendation »

They initiated coverage of both stocks with an underweight rating.

Compare OVERWEIGHT(Cf. ↑overweight)

Financial and business terms. 2012.

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Look at other dictionaries:

  • underweight — 1899, from UNDER (Cf. under) + WEIGHT (Cf. weight) …   Etymology dictionary

  • underweight — [adj] thin angular, anorectic, bony, gangly, malnourished, puny, scrawny, shadow, skeleton*, skin and bones*, skinny, starved, stringbean*, undernourished, undersized; concept 491 Ant. chubby, fat, overweight, plump, thick …   New thesaurus

  • underweight — ► ADJECTIVE ▪ below a weight considered normal or desirable …   English terms dictionary

  • underweight — [un′dər wāt΄; ] also, for adj. [, un΄dər wāt′] adj. below the normal, desirable, or allowed weight n. weight that is less than needed, desired, or allowed …   English World dictionary

  • Underweight — The term underweight refers to a human who is considered to be under a healthy weight. The definition is usually made with reference to the body mass index (BMI). A BMI of under 18.5 is usually referred to as underweight [National Heart Lung and… …   Wikipedia

  • underweight — 1. adjective a) Of an inappropriately or unusually low weight. Hes so underweight hes had to buy smaller clothes. b) Not too heavy for an intended purpose. Hes thirty pounds underweight …   Wiktionary

  • Underweight — 1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security s weight in the underlying benchmark portfolio. This often occurs when a portfolio is actively managed and underweighting a… …   Investment dictionary

  • underweight — un·der·weight wāt adj weighing less than the normal amount for one s age, height, and build <underweight children> <underweight adults typically have a body mass index of less than 18.5> …   Medical dictionary

  • underweight — [[t]ʌ̱ndəwe͟ɪt[/t]] ADJ GRADED: usu v link ADJ If someone is underweight, they are too thin, and therefore not healthy. Nearly a third of the children were severely underweight. Ant: overweight …   English dictionary

  • underweight — UK [ˌʌndə(r)ˈweɪt] / US [ˌʌndərˈweɪt] adjective thinner and lighter than normal, especially in a way that is unhealthy Their son appeared underweight for his size and age. Some of the babies were seriously underweight …   English dictionary

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