Alliance Capital adopted a similar system last year.

But Alliance Capital may not be willing to pay the price.

Alliance Capital was one of 60 outside money managers handling portions of the fund.

Alliance Capital, an asset management unit, earned $41 million, up 18 percent from the prior year's quarter.

Almost half of that amount, $178 million, went directly to Alliance Capital as an advisory fee.

Alliance Capital is the biggest mutual fund newcomer in the hedge-fund business.

Assets under management at Alliance Capital rose to $168.2 billion as of June 30, up 26 percent from a year earlier.

For example, one of the big losers in Enron was Alliance Capital.

Similarly, Alliance Capital ended yesterday at $15.625, off from roughly $17 three weeks ago.

The Commission ordered Alliance Capital to pay $250 million.