Och-Ziff Profit Dips As Taxes Soar

Nov 2 2011 | 10:52am ET

Och-Ziff Capital Management's assets under management and revenues continued to rise in the third quarter, but Uncle Sam's share grew, too.

The New York-based hedge fund said that its quarterly distributable profit fell 4% year-on-year to $49.9 million, as its tax rate almost doubled from the second quarter. Och-Ziff said it paid 42% in taxes in the third quarter compared to 22% in the second and 25% in the year-earlier period.

The firm's other numbers were good: Assets under management rose 8% year-on-year to $28.5 billion, rising another $400 million—including $200 million in inflows—since the end of the quarter. Revenue jumped 16% to $129.7 million, most of it due to a 15% increase in management fees.

Performance figures were more mixed. The firm's flagship is roughly flat through last month, while its Asia fund is down 1.4% and its European fund 3.3%. Och-Ziff's opportunistic fund is up 3.1%.

"During the third quarter of 2011, the global financial markets experienced significant turbulence in response to the European sovereign debt crisis and weaker macroeconomic conditions," CEO Daniel Och said. "Against this backdrop, we protected investor capital through our consistent and disciplined investment and risk management processes."

Including costs related to its initial public offering four years ago, Och-Ziff posted a $93.1 million loss on the quarter.


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Hedgies, Economists and Musicians Mingle At Milkin Mixers In Hamptons

Aug 25 2014 | 6:00am ET

Leave it to Michael Milken to bring some gravitas and sweat to the Hamptons -- along...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.