Och-Ziff Capital Management’s share price may be sinking, but its assets under management continue to rise.

The New York-based hedge fund giant said today it managed about $33.2 billion on Jan. 1. That represents an increase of more than $3 billion, or 10%, since the end of the third quarter of 2007.

In addition, the firm reported strong performances for its hedge funds, which finished 2007 up double digits. Specifically, the Oz Master Fund, Oz Europe Master Fund, Oz Asia Master Fund and Oz Global Special Investments Master Fund returned 11.65%, 14.87%, 12.25% and 12.22% respectively through December 2007.

The group went public in November 2007, raising more than $1 billion in a listing on the New York Stock Exchange. Since the IPO, its stock price has fallen from $32 to about $26.