AllianceBernstein Falls Most in Six Months After Reporting Quarterly Loss
AllianceBernstein Holding LP (AB) fell the most in almost three years after the New York-based money management firm reported a loss for the fourth quarter and said clients withdrew $13.2 billion.
The shares tumbled 13 percent to close at $14.35 in New York trading, the biggest one-day drop since April 23, 2009. The company reported a loss of $199.5 million, or $1.97 per unit, in the quarter, compared with a profit of $42.9 million, or 42 cents, in the same period of 2010.
Results for the quarter were dragged down by a one-time $587 million non-cash charge related to changes in employee compensation, which had previously been announced.
Over the past four years customers have pulled more than $200 billion from the firm, much of it coming from the company’s institutional equity business. In a statement, Chief Executive Officer Peter Kraus referred to the money manager’s “ongoing investment underperformance in our largest equity services.”
To contact the reporter on this story: Charles Stein in Boston at cstein4@bloomberg.net
To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net
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