An asset manager, a CFA charterholder, manages small-cap portfolios for institutional clients. The manager is convinced, given the deteriorating economic conditions, that as a group, small-cap equities will underperform during the next 12 months. To preserve her client’s wealth, the manager buys large-cap equities that he believes are better positioned to weather the expected economic downturn. The manager provides complete disclosure of these trades to his clients after the purchase. Has the manager violated any CFA Institute Standards of Professional Conduct()
A. No.
B. Yes, relating to suitability.
C. Yes, relating to misconduct.
