Former AllianceBernstein CEO to open new firm

Former AllianceBernstein CEO Lewis A. Sanders will launch a new firm as early as January, according to sources who declined to be identified. John Mahedy, now CIO of U.S. and North American value equities at AllianceBernstein, will leave AllianceBernstein in mid-October to join Mr. Sanders, the sources said. Mr. Mahedy will serve as CIO of the new investment firm. At AllianceBernstein, Gerry Paul and David Yuen will become co-CIOs of U.S. large-cap value equities when Mr. Mahedy leaves, while Mr. Paul will become sole CIO of North American value equities. Mr. Yuen will retain his current duties as director of research for U.S. large-cap value equities. Mr. Paul, meanwhile, will relinquish his role as head of global diversified strategies to Drew Demakis, who has served as a member of that team. Mr. Paul will retain his other role as head of global diversified value services. AllianceBernstein spokesman John Meyers confirmed the pending changes, saying the transition would be seamless because Mr. Paul, a 22-year Bernstein veteran, and Mr. Yuen, an 11-year Bernstein veteran, have long “worked hand in glove with John.” Mr. Sanders didn’t immediately return calls to his home for comment. Mr. Mahedy also did not immediately return calls.