* Distributable earnings at 16 cents a share
* Wall Street had expected 14 cents a share
* Rise in management fees boosted earnings
(Adds details on earnings)
BOSTON, May 3 Och-Ziff Capital Management Group
(OZM.N) reported a 33 percent rise in quarterly profit on
Tuesday, beating Wall Street estimates, as demand for its hedge
funds boosted management fees.
Having pulled in nearly $2 billion in fresh money over the
last year, Och-Ziff, one of only a handful of publicly traded
hedge fund firms, said its management fees climbed nearly 19
Distributable earnings rose to $65.2 million, or 16 cents
per share, from $49.2 million, or 12 cents per share, a year
earlier. Analysts on average had expected 14 cents per share,
according to Thomson Reuters I/B/E/S.
Total revenue climbed to $138.4 million from $109.4 million
as management fee revenue rose to $121.3 million.
The New York-based company, which oversees money for
investors like Calpers, America's largest public pension fund,
highlights distributable earnings -- which excludes costs
related to its November 2007 initial public offering -- as the
best measure of its performance.
The company reported a net loss of $95.5 million, or 99
cents, for the quarter, related largely to expenses from the
Known for its conservative management style, Och-Ziff has
benefited from investors' new appetite for alternative
investments like hedge funds. At the end of the first quarter,
assets under management stood at $29 billion, up from $27.9
billion at the end of the previous quarter and up from $24.8
billion a year earlier.
"We believe that capital inflows into the hedge fund
industry are accelerating as institutional investors seek to
increase the proportion of non-correlated strategies in their
portfolios," Chairman and Chief Executive officer Daniel Och
said in a statement. "Our dialog with both current and
prospective investors is active," Och added.
Since the end of the quarter, assets have climbed even more
and stood at $29.4 billion on May 1, the company said, citing
$400 million in new inflows and $1.1 billion in performance
related appreciation for the rise.
At the end of the first quarter, the OZ Master Fund, the
firm's biggest, had $20.1 billion in assets and had returned
3.36 percent during the first three months of the year when the
average hedge fund gained 1.99 percent.
For the first quarter of 2011, Och-Ziff will pay out a
dividend of 13 cents a share for holders of record on May 12.
That is up from the 9 cents a share dividend the company paid
out for the first quarter of 2010.
(Reporting by Svea Herbst-Bayliss, editing by Lisa Von Ahn,