Dan Och Sees Opportunity From 'Cracks and Fissures' in Creditby
Falling oil and gas prices create opportunities for Och-Ziff
Joins Howard Marks and Dan Loeb in seeing smart credit wagers
Dan Och, the billionaire founder of Och-Ziff Capital Management LLC, said his $44.6 billion investment firm is preparing to take advantage of opportunities in debt markets amid new dislocations.
"What we’re seeing today that we didn’t see six months ago is the beginning of cracks and fissures in the credit markets," Och said Tuesday at an investment conference sponsored by Goldman Sachs Group Inc.
Falling oil and natural gas prices could create one opportunity for the firm in the debt markets, Och said. "We’re being patient," he said. "It’s not just energy. It’s other areas as well."
Och joins the likes of Oaktree Capital Group LLC’s Howard Marks and Third Point’s Dan Loeb in saying they are starting to see smart wagers on credit, particularly in distressed securities. Earlier today at the same conference, Marks said he sees the most opportunities to profit on distressed debt since the financial crisis. "It’s been a long, long time," Marks said.
Och said he plans to expand the firm’s credit business well beyond the $12 billion it manages today. Inflows into credit and real estate strategies somewhat offset outflows from the firm’s main multistrategy hedge funds in 2015, filings show.