Bernstein’s Options Advantage Strategy Losses? 

Investors looking to recovery their losses in the Bernstein Options Advantage Strategy may now have a path to recover their losses. In 2017 Alliance Bernstein offered its clients a proprietary options investment fund that sought 2 percent returns net of fees. Many of the Bernstein advisors recommended that its clients borrow the investment funds on margin. The Fund was designed to operate in a low interest rate and low volatility environment. When interest rates and volatility increased in 2022 the Fund's investors suffered significant losses. In 2022 Bernstein investors could have achieved greater than 2 percent returns without risk in money market funds, CD's, and short term treasuries instead of this improperly managed proprietary options program.  

The Financial Industry Regulatory Authority or “FINRA” offers a dispute resolution forum where Bernstein fund options investors can file a claim to recovery money on their losses. The purported proprietary strategy in the “options advantage strategy” claimed it to be well researched and had a solid track record. The strategy suffered major losses in 2022 and now investors who were looking for conservative returns are now thinking that they may have not been given a full and complete risk disclosure of how the fund would perform in a rising rate environment.  

FINRA arbitrations have already been filed against Sanford C. Bernstein & Co. and Alliance Bernstein for losses relating to the Options Advantage Strategy. The claims allege that Bernstein utilized its discretion to speculate on the market direction using both call and put options on major market indexes, which resulted in substantial losses were incurred from the strategy.  

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