Och-Ziff Capital Management Group LLCOZM

Morningstar Rating

Stock Research and Analysis

by Greggory Warren, CFA

Although Och-Ziff has seen its revenue and profitability affected this year by the decline in the equity markets and subsequent outflows from its funds, we think the firm's stronger relative performance and more diverse asset base should allow it to Read more

Bulls Say

Even with the bear market, Och-Ziff's AUM has increased from $5.8 billion at the end of 2003 to $21.9 billion at the end of the second quarter of 2009, which is reflective of a 28% compound annual growth rate.

Through the first six months of 2009, Och-Ziff's main fund, the OZ Master Fund, returned 12.3% versus just a 3.2% return for the S&P 500. By the end of August, all of its funds were well on their way toward surpassing their high-water marks.

Although the firm is experiencing an abnormal level of outflows, Och-Ziff believes that continuing to provide liquidity to its investors will allow it to attract new capital once the markets stabilize--especially because many of its peers have suspended redemptions in reaction to the market downturn. Read more

Bears Say

Hedge fund performance during the bear market was no better than most equity indexes', dispelling the notion that hedge funds can generate positive returns in both good and bad markets.

Och-Ziff entered 2009 with high-water marks on most of its funds, requiring the hedge fund manager to make investors whole for the negative performance recorded in 2008 before collecting performance fees this year.

Given the poor absolute performance of many hedge funds during the bear market, large institutional investors have challenged the fee structure at hedge funds, and in some cases, hedge funds have lowered fees in an attempt to keep investors from pulling money out of their funds. Read more

Strategy

Och-Ziff expects the performance of its four main funds--OZ Master Fund, OZ Europe Master Fund, OZ Asia Master Fund, and OZ Global Special Investments Master Fund--to exceed their respective benchmarks Read more

Management

Daniel Och has been calling the shots at Och-Ziff since he founded the firm with members of the Ziff family in 1994. Och honed his skills at Goldman Sachs GS for 11 years, working in both the risk arbitrage and equity trading operations of the investment Read more

Profile

Och-Ziff runs hedge funds for wealthy individuals and institutional investors. The company has three main funds--OZ Master Fund, OZ Europe Master Fund, and OZ Asia Master Read more

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