UPDATE 1-Jefferies starts Och-Ziff Capital with buy

(Recasts; adds details, share movement) Nov 14 (Reuters) - Jefferies & Co started coverage of Och-Ziff Capital Management Group LLC (OZM.N) with a "buy" rating and said it viewed the hedge fund company as a long-term beneficiary of the current market upheaval.

Shares of the company, which went public a year ago, rose as much as 15 percent in early trade on the New York Stock Exchange.

"Through consistent returns, relative outperformance, and superior risk management, OZM should gain significant market share from competitors as capital is re-allocated to larger, more proven and experienced investment managers," the brokerage said in a note dated Nov. 13.

The New York-based company's multi-strategy investment style allows it to capitalize on investment opportunities globally, Jefferies said.

Och-Ziff has outperformed peers in a challenging market and is positioned to gain share and earn incentive fees in 2010, the brokerage said.

However, Och-Ziff will face redemptions in the near term as it can be used as a source of cash for institutions faced with liquidity constraints and/or capital commitments elsewhere, said Jefferies, which set a price target of $8 on the stock.

Och-Ziff shares were up almost 7 percent at $4.81 in late morning trade. They touched a high of $5.16 earlier. (Reporting by Amiteshwar Singh in Bangalore; Editing by Himani Sarkar)