- overweight
- Usually refers to recommendation that leads an investor to increase their investment in a particular security or asset class. The increase 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 outperform, the investor may increase the exposure to U.S. equity to more than 40%. Bloomberg Financial Dictionary
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overweight o‧ver‧weight [ˌəʊvəˈweɪt◂ ǁ ˌoʊvər-] adjective1. HUMAN RESOURCES an overweight organization has too many people working for it:• an overweight monopoly
• The company is considered to be overweight and overbureaucratic.
2. FINANCE if someone is overweight in a particular type of investment in relation to other investments they hold, they have more of it than is usual, or more of it than they should have:• He suggested portfolio managers be overweight in shares in electronics, machine tool makers and utilities.
• Most people were overweight in the dollar because they believed in a US economic recovery.
— opposite underweight— overweight verb [transitive] :• Economists at Merrill Lynch are advising clients to overweight their holdings of US, Canadian, and Australian dollars.
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overweight UK US /ˌəʊvəˈweɪt/ adjective► FINANCE, STOCK MARKET used to describe portfolios (= combinations of investments) that include too much of a particular type of share, bond, etc.: »The investment team will eliminate an overweight position when it believes a security is overvalued.
► TRANSPORT heavier than is allowed: »If your luggage is overweight, you have to pay extra.
Financial and business terms. 2012.