* Distributed EPS 12 cents vs. Street view 9 cents
* Fees rise on higher assets under management
(Adds CEO remarks, details from conference call)
BOSTON May 4 Hedge fund company Och-Ziff
Capital Management Group (OZM.N) reported higher-than-expected
first-quarter profit on Tuesday as an increase in assets under
management led to higher fees.
The New York-based company reported distributable earnings
of $49.2 million, or 12 cents per share, compared with $27.2
million, or 7 cents a share, a year earlier.
Analysts on average had expected 9 cents per share,
according to Thomson Reuters I/B/E/S.
Och-Ziff, which went public in November 2007, highlights
distributable earnings -- income from the Och-Ziff funds
segment less adjustable income taxes -- as the best measure of
"We think the capital inflow cycle for the hedge fund
industry is underway, and that we're well positioned for
growth," Chief Executive Daniel Och said on a conference call
The company estimated assets under management at $26
billion as of May 1, reflecting inflows of $1.6 billion for the
year to date and performance-driven appreciation of $900
million. It had assets of $25.3 billion as of April 1, up from
assets of $20.3 billion as of April 1, 2009.
Because of the inflows and gains, management fees for the
first quarter rose to $102 million from $94 million in the same
period a year earlier. The company also cited lower expenses
Och-Ziff has tried to distinguish itself from rivals by not
restricting investors' ability to withdraw cash, as many hedge
funds did during the financial crisis.
First-quarter results were down from the fourth quarter,
when Och-Ziff collects most of its incentive fees. On the
conference call Och-Ziff also said it had reallocated $714
million from its Global Special Investments fund to its Master
Fund, reflecting more interest in the latter fund from
(Reporting by Ross Kerber; editing by John Wallace and Derek