X.L., a Bermuda-based insurer, has probably gone furthest by offering to insure clients' profits and net worth, which in effect amounts to insuring their overall risk portfolio.
The law firms are run by lawyers, and while there may be sharing of costs and cross-referral of clients, profit-sharing is rarely allowed.
Instead of the usual 2 and 20 fee structure, SAC reportedly charges a 3 percent management fee and as much as 50 percent of its clients' profits".
They usually charge an annual fee of 1-2% of assets, plus 20% of profits (but if they lose money in one year, they cannot charge clients' profits in a later year until the losses have been recouped).
This appeals to hedge funds, which tend to be short term and take at least a twenty-per-cent commission on clients' profits; Icahn, who said that his fund had paid an average price of seventeen dollars and twenty cents per share — and controlled at least thirteen million shares — stood to gain perhaps three dollars on each share he sold, plus his own fee, of twenty-five per cent.
But their advice to the not-yet-formed Bush campaign certainly puts them in a position to increase their influence -- as Washington door openers or even future Cabinet officials -- and their clients' profits.
The clients then profited from trading on the stocks ahead of the expected drop in the companies shares.
Schwab also disclosed that institutional clients had profited from informal trading relationships, which allowed them to trade in and out of funds in its Excelsior fund family.
The company said that certain clients had profited from informal trading relationships that allowed them to trade in and out of funds in US Trust's Excelsior fund family.
Good move at least for his clients who profited by tripling their investments.
In fact, the Madoff client who profited from his investment spoke on the condition that he not be identified, out of concern that he might be sought out to repay some of his gains to the receiver or bankruptcy trustee for Mr. Madoff.
