AllianceBernstein Tightens Investment Belt

The axe is swinging at AllianceBernstein (AB), which likely hasn't seen a profitable quarter in years. The company announced it had canned a total of 237 people, lowering headcount to 4,760 at March 31, from 4,997 in December, and another 75 are expected to be sacked any minute. Among the 237 were 31 investment professionals, including analysts, PMs, CIOs, directors of research and traders. Presumably these are the 31 that watch Cramer for investment advice and start every conference call Q&A with the words "Great quarter..."

The lucky 4,760 who are still left at AB should not get too comfy - after all they work at a company that is not allowed to short securities in the biggest bear market in 70 years.

Comments

[Old Trader:]

Tyler,

Doesn't AB primarily run mutual funds? Not many of those work the short side of street. I understand they're fairly well regarded overseas (their funds, I mean), where they have a large presence, which might be a long term saving grace for the firm.

Btw, I enjoy your stuff and you've become a "must read" for me.

Apr 01 09:43 PM

[Fund Insider:]

Old trader, if you look to children for investing advice, maybe you should visit the local maternity ward for even more of it.
This kid is a know nothing who thinks because he had some menial position at a couple of asset management firms he is qualified to opine on anything at all. AB like Fidelity, Pimco and many other large fund managers must follow the wishes of their clients.
Hedge fund clients want them to have long/short strategies but most mutual fund clients do not. Mututal funds are usually used for asset allocation by clients or their advisors, and the prefer to decide when to lighten up on exposure themselves, and have their fund manager (read research firm) follow and pick stocks, and leave the macro asset allocation to the client. Other clients want asset allocation in one stop shopping and most of these firms offer same. Most funds can buy S&P500 put futures if they so choose to hedge downside risk but clients want upside potential in their stock funds, safety in their money market funds.

Apr 02 04:01 PM

[ozcutty2:]

Hasn't seen a profitable quarter in years? What? They've been profitable as far as i can see.

Apr 02 07:24 PM