Fund Insider

AllianceBernstein Tightens Investment Belt

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.