Och-Ziff Fourth-Quarter Profit Falls 54% on Lower FeesKelly Bit
Och-Ziff Capital Management Group LLC, the hedge fund firm run by Daniel Och, said fourth-quarter profit fell 54 percent on lower performance fees.
Distributable profit, a measure excluding some costs related to Och-Ziff’s 2007 initial public offering, decreased to $255.4 million, or 50 cents a share, from $559 million, or $1.15, a year earlier, the New York-based company said today in a statement. Earnings per share beat the 34-cent average estimate of eight analysts surveyed by Bloomberg.
Investors deposited a net $5.2 billion into Och-Ziff’s funds in 2014. They withdrew $1.1 billion since the end of the year, reducing assets as of Feb. 1 to $46.7 billion. Och-Ziff is known for its multistrategy hedge funds that speculate on everything from rising and falling stock prices to mergers and bankruptcies and has sought to expand its credit, real estate and long-short equities businesses to attract clients.
“2014 was a strong year for our firm, as demonstrated by the growth and diversification we achieved in our business,” Och said in the statement.
Och-Ziff’s distributable earnings don’t comply with generally accepted accounting principles. The firm reported net income of $84.7 million, or 47 cents a share. That compares with $199.1 million, or $1.13 a share, a year earlier.
Och-Ziff’s OZ Master Fund rose 5.5 percent last year, the firm said. The OZ Europe Master Fund increased 1.8 percent in 2014 and the OZ Asia Master Fund climbed 4 percent.
Och, a former Goldman Sachs Group Inc. trader, left the firm in 1994 to start a hedge fund for Ziff Brothers Investments LLC, which managed the Ziff family’s publishing fortune. He oversaw money solely for the Ziffs for five years and then opened his fund to outside investors in 1999.