When Och-Ziff Capital Management learned it faced two federal probes into its dealings with Libya’s sovereign wealth fund, the publicly-traded hedge fund manager notified one set of its investors—but not the other.
New York-based Och-Ziff informed its shareholders about the civil and criminal probes, The Wall Street Journal reports. But it did not tell investors in its funds.
Some of those investors called Och-Ziff following the March disclosure to express their displeasure. One even redeemed from the firm, according to the Journal. Still, the lapse doesn’t appear to have unduly harmed Och-Ziff, which reported a record level of assets this week.
Och-Ziff said it was limited in what it could say about the ongoing investigation. “We’re as transparent as we can be” with clients, CFO Joel Frank said in May.