Och-Ziff Is On The Sidelines Until Investigations Are Complete
Alpha Gen Capital
Alpha Gen Capital
Today, 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
Tue, Jul. 5, 2:45 PM
Tue, Jun. 28, 10:01 AM
Thu, May 26, 8:51 AM
- The $2.9T industry could lose about 25% of its assets in the next year thanks to continuing underperformance, says Blackstone (NYSE:BX) President Tony James.
- For its part, Blackstone is the world's largest allocator to hedge funds, provides startup money to managers, and takes equity stakes in hedge funds. While performance is a concern within Blackstone, James says results in its hedge fund businesses are topping the industry average.
- Hedge fund underperformance is likely the result of the sustained bull market, says James, as many hedged funds are just that ... hedged.
- As for '2 and 20,' it's "hard to justify these days," he says.
- Interested parties include: OZM, CG, FIG
Tue, May 3, 7:49 AM
- Q1 distributable earnings, ex-item, of $57.5M or $0.11 per share v.s $126.7M and $0.25 one year ago.
- AUM of $43.2B falls from $48.3B, with multi-strategy funds AUM of $27.B down from $33.9B. AUM has fallen further to an estimated $42B as of May 1.
- CEO Dan Och: "The global markets have been challenging to date, but this is not the first time we have navigated an environment like this."
- Conference call at 8:30 ET
- Previously: Och-Ziff Capital Management misses by $0.02, misses on revenue (May 3)
- OZM flat premarket