* Q4 shr $0.69 vs estimate $0.33
* Assets under management $23.1 bln at yr-end
(Adds details about earnings, CEO quote)
BOSTON Feb 11 Hedge fund company Och-Ziff
Capital Management Group LLC (OZM.N) on Thursday reported
higher-than-expected quarterly earnings because it collected
more incentive fees as its portfolios delivered strong
The New York-based company reported distributable earnings
of $281.4 million or 69 cents per share, beating analysts'
average forecast of 33 cents. A year earlier, the company
reported distributable earnings of $28.9 million or 7 cents.
Och-Ziff, which went public in November 2007, highlights
distributable earnings -- income from the Och-Ziff Funds
segment minus adjustable income taxes -- as the best measure of
At the end of December, Och-Ziff reported $23.1 billion in
assets under management, up 4 percent from the previous quarter
but down 14 percent from a year earlier when investors began
pulling money out of hedge funds at the height of the financial
For Och-Ziff, which distinguished itself from many rivals
by not restricting investors' ability pull out, money began to
flow in again during the last weeks of the year.
In the last quarter, the firm's assets climbed $802
million, boosted by $305 million in net new money and $497
million in performance related appreciation.
Three of Och-Ziff's four portfolios reported double-digit
gains with the OZ Asia Master Fund turning in the best
performance with a 33.96 percent gain.
"We surpassed the high-water marks on our assets under
management with our OZ Master Fund having one its best years
ever and our Asia Master Fund achieving record performance,"
Chairman and Chief Executive Officer Dan Och said in a
High water marks are the performance hurdles that money
losing funds must pass in order to resume collecting incentive
fees. During the financial crisis many funds were below their
high water marks.
Total revenue jumped 214 percent to $440.6 million and
incentive income, which hedge funds collect when their
portfolios are doing well, surged to $345.6 million from $6.7
million a year earlier.
The company's fourth-quarter net loss narrowed to $47.2
million to from $112.2 million a year earlier. The loss was
partly tied to non-cash expenses related to the amortization of
(Reporting by Svea Herbst-Bayliss, editing by Gerald E.
McCormick and Derek Caney)