Wednesday, 25 November 2015
Last updated 3 hours ago
Feb 9 2012 | 1:37pm ET
A difficult 2011 has hit Och-Ziff Capital Management's bottom line in a big way.
The New York-based hedge fund said today that its fourth-quarter profit plummeted 94%. Distributable profits were just $16.8 million, down from $303.1 million for the fourth quarter of 2010. The difference, of course, was the performance of the firm's hedge funds.
With most of its funds in the red last year, Och-Ziff's performance fee income fell by 90%. "Last year was particularly volatile, characterized by the most difficult market conditions since 2008," CEO Daniel Och said.
Och-Ziff said it suffered $38 million in net redemptions in the fourth quarter, cutting assets under management to $28.8 billion. It's bounced back since, with $500 million in performance gains in January offsetting another $300 million in redemptions.
Those performance gains—all four of Och-Ziff's funds were in the black last month—put the firm's flagship back over its high-water mark, ensuring that it will be able to charge performance fees this year if its performance keeps up. The OZ Master Fund rose 1.6% on the month.
Och-Ziff's OZ Asia Master Fund rose 2.6%, its Europe Master Fund 1.9% and its OZ Special Investments Master Fund 1.3%.
Using generally accepted accounting principles—not excluding costs from the firm's 2007 initial public offering—Och-Ziff lost $137 million on the quarter. In the year-earlier period, the loss was $22.8 million.
Costs from the IPO are set to leave Och-Ziff with a GAAP loss until this year.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…