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Curated Proprietary Funds Creating Problems for Investors

AllianceBernstein is a SEC-registered investment-management firm that boasts more than $500 billion in assets under management. According to AllianceBernstein’s website, the firm “delivers a comprehensive range of investment strategies across the capital structure” and market strategies that target fixed income, multi-asset, equities, and alternatives-based objectives.

AllianceBernstein’s private wealth management office, known as Bernstein Wealth Management, is geared towards servicing high-net worth individuals. The firm touts a variety of proprietary products including curated mutual funds, income producing closed-end funds, and what the firm refers to as “retirement focused variable product series.” Because AllianceBernstein manages every aspect of these funds from creation to customer sale, the firm keeps any associated costs and fees when a customer decides to invest.

Unfortunately, some of AllianceBernstein’s proprietary funds have performed poorly of late, resulting in losses, suspension of distributions, and illiquidity issues for the funds’ investors. Among AllianceBernstein’s problematic funds are:

  • AllianceBernstein Securitized Asset LP, a pooled investment hedge fund focused on mortgage-related securities, asset-backed securities, collateralized loan obligations, and others.
  • AllianceBernstein Energy Opportunity Fund, LP, which focuses on income-producing investments in the oil and gas industry.

Despite general volatility in the markets due to the Covid-19 pandemic, some of the losses incurred by AllianceBernstein investors may be the result of fund mismanagement and/or the failure to disclose certain conflicts, asset exposures, or over-concentrations in asset classes within these AllianceBernstein “house funds.”

Contact Silver Law Group if You Lost Money Investing With AllianceBernstein

As a SEC-registered investment advisor, AllianceBernstein must act as a fiduciary, which means it must act in the best interest of its clients. This high standard includes requirements to act in good faith and make certain disclosures when making investment recommendations. Silver Law Group is experienced in representing investors in claims that their registered investment advisor breached this duty.

Silver Law Group represents the interests of investors who have been the victims of investment fraud. Managing Partner Scott Silver is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and represents investors nationwide in securities investment fraud cases. Silver Law Group represents investors in securities arbitration claims. Please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (866) 441-7871.

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