Och Ziff experiences net loss in third quarter

02 Nov, 2010

US asset manager Och Ziff Capital Management Group reported a net loss of $93.5 million for the third quarter ended September 30, 2010.

Its assets under management (AUM), however, rose to $26.3 billion at October 1, 2010. This was a 4% increase from the $25.3 billion recorded on July 1, 2010. The company’s latest AUM figures represented a 19% jump since October 1, 2009, when the AUM stood at $22.1 billion.

The estimated AUM at November 1, 2010 was $27.2 billion. This was attributed to capital net inflows of $2.4 billion and performance-related appreciation of $1.7 billion.

The Och Ziff funds saw positive estimated year-to-date net returns through October 31, 2010. The OZ Master Fund posted gains of 6.7% while the OZ Europe Master Fund saw a positive return of 6%. The OZ Asia Master Fund experienced gains of 9% while the OZ Global Special Investments Master Fund posted returns of 10.5%.

Chairman and chief executive officer of Och-Ziff Daniel Och said the company had generated positive, risk adjusted returns during the third quarter and through October 2010. He added the investment environment had improved relative to the first half of 2010 and that the company saw new opportunities in many of its investment strategies.

"We remain confident that capital allocations to alternative asset managers will be significant, but think that the environment has further reinforced the importance of manager selection. We believe that our year-to-date capital net inflows reflect a leading market share of those to the hedge fund industry and to absolute return managers in particular," said Och.

The net loss in the third quarter of 2010 was a result of the company’s reorganisation in connection with its initial public offering in November 2007. Och Ziff expected the amortisation of these expenses to result in a net loss on an annual basis through 2012.