Is the practice of using post-trade allocation to direct profitable trades to All Cap clients and unprofitable trades to Large Cap clients consistent with the Investment Adviser's duty to its clients?
1) Yes, because balancing performance among many clients is consistent with Adviser's fiduciary duty.
2) No, because Adviser is favoring a particular group of clients.
3) Yes, because all clients must be treated fairly.
4) No, because allocations may not be made post-trade.