"We don't much care for these folks, some prior posts after the jump."
-introduction to Jan. 31's "On Top Of the SEC Settlement: Och-Ziff Hedge Fund Execs Now Face Additional Federal Charges (OZM)".
One of the world's largest, public hedge funds, Och Ziff, gave active managers around the globel more reasons for concern this morning, when it reported results today which showed distributable earnings of $7.5 million, or one cent a share, in the quarter compared to a loss of $36.1 million, or 7 cents, a year earlier. For the full year, the company reported a loss of $121.3 million from a profit of $251.9 million in 2015. Revenue tumbled from $342.8mm to $281.3mm. However, the flashing red headline is just how much AUM the recent underperformance and legal problems by Daniel Och's investment vehicle have cost him.
As Bloomberg reports, Och Ziff suffered withdrawals of about $13 billion over the last 13 months as the company settled a five-year bribery probe and saw its founder Dan Och singled out by regulators for ignoring red flags and corruption risks.
Clients redeemed $8 billion in 2016 with an additional, and very concerning, $4.8 billion in the month of January. The outflows were concentrated in the multistrategy funds, the company said Wednesday in a statement. Some of the asset declines were offset with performance gains, including a 3.8% return for its biggest multistrategy fund last year. Assets under management for the firm decreased to $33.6 billion as of Feb. 1 from $43.7 billion a year earlier. The hedge fund had peaked at the end of 2014 with nearly $50 billion in AUM....MORE
Previously (the first story is a major piece from Institutional Investor last November):
"US Seeks Scalps in Och-Ziff Bribery Investigation" (OZM)
Och-Ziff Hedge Fund In Talks To Settle Charges It Financed Zimbabwe Torturers
Och-Ziff Capital Management Group Supplied the Money that Kept Mugabe in Power
Here's a decision-point stock chart for you: