Daniel S. Och’s Och-Ziff Capital Management Group LLC (NYSE:OZM) (a.k.a. OZ Management) disclosed on Wednesday –with the SEC- its Estimated Unaudited Returns* and Estimated Unaudited Assets Under Management for August 2014. Its flagship fund, the OZ Master Fund, returned 0.49% in August**, and 2.57% between January 1 and August 31, 2014, inclusive. In addition, its OZ Europe Master Fund and OZ Asia Master Fund both posted negative returns for both August and the first eight months of the year.
The OZ Europe Master Fund lost 0.04% in August and 1.47% year-to-date, while the OZ Asia Master Fund fell 0.03% in August, and 4.25% year-to-date. According to this information, all of Och-Ziff Capital Management Group LLC (NYSE:OZM)’s main funds have underperformed the S&P 500 index, which has inched 8.19% year-to-date, and 3.77% in August alone. According to the fund’s public disclosures, the gains obtained from credit-related investments were surpassed by the losses that European and Asian stocks registered.
Och-Ziff Capital Management Group LLC (NYSE:OZM) also declared estimated unaudited assets under management of $46.1 billion, as of September 1, 2014. This implies a net increase of approximately $400 million from the $45.7 billion acknowledged as of August 1, 2014.
The hedge fund’s performance for July had been somewhat opposite: the OZ Master Fund had lost 0.12%, and the OZ Europe Master Fund and OZ Asia Master Fund had inched, 0.27% and 2.41%, respectively.
The funds’ weak performance has certainly been reflected on Och-Ziff Capital Management Group LLC (NYSE:OZM)’s stock, which lost 14.8% year-to-date, and 9.04% in August alone. However, another factor has also impacted on this steep fall. The fund has been object of plenty of bad press regarding some business dealings in Africa, which could include bribery and political corruption cases in Libya, the Democratic Republic of Congo, and Zimbabwe.
Despite this downtrend, the fund continues to attract big money. Since the beginning of the year, OZ Management has achieved to increase its assets under management by approximately $5.9 billion. Amongst the best-known investors in on Och-Ziff Capital Management Group LLC (NYSE:OZM), I would like to highlight Chuck Royce’s Royce & Associates, which last disclosed a 48% increase in its stake, and now owns 181,400 shares of the company. For his part, Jim Simons’ Renaissance Technologies last trimmed its exposure to the company by 57% and now owns 715,100 shares – or almost $10 million in stock.
* This information is being provided for investors in the company’s main master funds, and “is not necessarily indicative of the Company’s anticipated financial results” (SEC).
** Monthly performance data are based on the management’s estimates, and may change upon completion of the company’s month-end valuation procedures.
“Net return represents a composite of the average return of the feeder funds that comprise each of the Company’s most significant master funds. Net return is presented on a total return basis, net of all fees and expenses (except incentive income on unrealized gains attributable to investments that the Company, as investment manager, determines lack a readily ascertainable fair value, are illiquid or otherwise should be held until the resolution of a special event or circumstance (“Special Investments”) that could reduce returns on such Special Investments at the time of realization) and includes the reinvestment of all dividends and other income. Performance includes realized and unrealized gains and losses attributable to Special Investments and initial public offering investments that are not allocated to all investors in the feeder funds. Investors that were not allocated Special Investments and/or initial public offering investments may experience materially different returns” (SEC).
Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned.