Haddad manages discretionary portfolios for high-net-worth c…
Haddad manages discretionary portfolios for high-net-worth clients. At quarter-end, his largest client’s portfolio is underperforming its benchmark. Haddad reallocates a portion of the portfolio into higher-volatility equities that remain within the client’s stated mandate but materially increase short-term downside risk. He does not communicate this shift to the client.Haddad’s actions are best described as: