Och-Ziff Capital Management Group LLCNYSE
Och-Ziff Is On The Sidelines Until Investigations Are Complete
Alpha Gen Capital
Alpha Gen Capital
Mon, Oct. 17, 2:00 PM
- It's the kind of headline that makes one wonder if the bottom might already be in for traditional asset managers.
- The numbers won't surprise anyone who's been following along for any length of time: Over the three years ended Aug. 31, investors added nearly $1.3T to passive mutual funds and ETFs, while pulling more than $250M from active mutual funds.
- "Stock pickers, archetypes of 20th century Wall Street, are being pushed to the margins," write Anne Tergesen and Jason Zweig. "The pressure has gotten so great that passive has become the default,” says former Fidelity CIO Philip Bullen.
- And by the way, there's still plenty of room for the trend to continue - 66% of mutual and exchange-traded fund assets are still actively invested (down from 84% ten years ago).
- Active fund firms that don't “position themselves for the sea change” will be “relegated to the dustbin of history," said Cohen & Steers (NYSE:CNS) in shareholder letter earlier this year.
- Notable industry names: BLK, OZM, BEN, LM, GBL, CLMS, JNS, IVZ, TROW, AB, AMG, FII, WDR, APAM, MN, EV, AMP
Tue, Oct. 4, 1:01 PM
Thu, Sep. 29, 2:51 PM
- As reported yesterday, Och-Ziff (NYSE:OZM) has settled U.S. charges over the alleged payments of bribes in Africa. The company will pay $200M to the SEC as well as a criminal penalty of $213 to the DOJ.
- In addition, CEO Dan Och will pay about $2.2M to the SEC to settle charges against him. CFO Joel Frank's will be assessed a penalty at a later date.
- The stock continues to rally as the settlement won't be crimping the company's operations in any way. Shares +7% today.
Thu, Sep. 29, 9:58 AM
- The stock had a big day yesterday after Bloomberg reported Och-Ziff (NYSE:OZM) as being close to settling African bribery charges. The deferred prosecution agreement allows the company to operate as normal, with charges eventually being dropped if OZM stays out of trouble for a period.
- Compass Point upgrades to Buy from Neutral. The $5 PT suggests another 17-18% upside from yesterday's close.
- Shares +1.2% today to $4.30.
Wed, Sep. 28, 1:07 PM
- At issue is a federal probe into the funneling of millions of dollars of bribes to African officials, and a guilty plea from Och-Ziff (OZM +4.5%) could come as soon as Thursday, according to the report. The company has already reserved more than $400M for fines and penalties.
- The now-former head of its London-based investing arm Michael Cohen and others remain under investigation, and could also face charges.
Mon, Sep. 26, 12:09 PM
- "2 and 20" is moving towards "0 and 20" at Brevan Howard as the giant hedge fund firm will cut the management fee on its flagship fund to 0%. The 20% performance fee stays.
- The zero percent applies only to new money from existing clients and to any gains (if they come) to money already invested in the fund.
- It's a sign of the times for the struggling industry, where investors have pulled cash for three straight quarters for the first time since 2009. For Brevan Howard, its $14.5B Master Fund is on pace to mark its third straight losing year. The $18B firm overall expects about $3B of withdrawals at year-end, according to the WSJ report.
- In another sign of the times, Bloomberg reports on penny-pinching in the hedge fund capital of Greenwich. It's a sad tale including a $250K Mercedes S-Class gathering dust at the local dealer while $70K models fly out the door, and Barry Sternlicht not being able to unload his $6M mansion, though houses priced at $2M or less are still seeing plenty of interest.
- Interested party: Och-Ziff Management (OZM -0.3%).
Thu, Aug. 25, 10:48 AM
Wed, Aug. 17, 2:27 PM
- At issue are government probes into a web of complex oil and mining deals funded by Och-Ziff (OZM +4.9%) in Africa, and whether the company knowingly paid bribes to government officials in the Democratic Republic of Congo and Libya, according to Bloomberg.
- A Gabonese "fixer" with links to Och-Ziff was arrested yesterday and accused of regularly paying bribes to win mineral rights in Niger, Guinea, and Chad for a joint venture whose partners include a hedge fund (Och-Ziff, according to Bloomberg's sources).
- According to the report, Och-Ziff is in talks with prosecutors to enter a deferred-prosecution agreement.
Wed, Aug. 17, 1:00 PM
Thu, Aug. 4, 8:27 AM
- Nearly all of a multi-strategy fund Goldman arranged for employees will liquidate by September 1, reports Bloomberg. Managed by Och-Ziff (NYSE:OZM), the fund fell 6.9% over the past year, with assets dropping to about $350M from $423.6M in March.
- Och-Ziff has seen clients pull $3.1B from its funds in the 12 months ended in June, and another $3B through August, bringing AUM down to $39.1B.
Tue, Aug. 2, 1:00 PM
Tue, Aug. 2, 7:38 AM
Mon, Aug. 1, 5:30 PM
- ABC, ACCO, ADM, AET, AFSI, ALLT, ARW, AVP, BOFI, CAH, CARB, CEQP, CHH, CIE, CMI, CPPL, CSTM, CVS, DISCA, ECL, EIGI, EMR, ENOC, EPC, ETN, ETR, EXPD, FDP, GEO, GLT, GNRC, H, HCLP, HCN, HEP, HMC, HRS, HW, IDCC, IDXX, IIVI, IPI, IQNT, JLL, MLM, MMP, MNK, MOS, MZOR, NI, NJR, NNN, NRZ, NS, NWN, OZM, PBI, PFE, PG, PNW, RCL, RDC, RHP, SABR, SALE, SCAI, SHOO, SHPG, SODA, STX, SUI, TAP, TDC, VG, VSH, WCG, WNR, WNRL, XYL, ZEUS
Tue, Jul. 26, 11:22 AM
- In the largest monthly withdrawal since eVestment began tracking flows in 2009, investors pulled $20.7B from hedge funds in June. Don't blame the Brexit, as bailing out of hedge funds takes significantly longer than logging into one's E*Trade account to hit the sell button.
- Outflows are more likely the continuing of a trend out of active management and into passive.
- There's also performance-chasing: The 10 long/short equity funds with the largest outflows returned an average of -8.27% YTD, while those with the largest inflows returned an average of positive 4.55%.
- OZM flat on today's session, but down about 70% Y/Y.
Tue, Jul. 12, 10:04 AM
- Today it's Jefferies with a downgrade to Hold from Buy. WIth this session's 1.4% decline, OZM is now lower by more than 70% Y/Y.
- The company earlier this month reported a 7.5% decline in AUM in June and 12.1% for all H1.
- Previously: KBW throws in the towel on two alternative investment managers (July 11)
Mon, Jul. 11, 9:41 AM