BOSTON Feb 7 Och-Ziff Capital Management Group
LLC reported sharply higher quarterly profit that beat
Wall Street expectations after the investment management
company's incentive income surged on strong returns at its
The company reported fourth-quarter distributable earnings,
excluding costs related to its November 2007 initial public
offering, of $351.3 million, or 77 cents. That beat the Wall
Street estimate of 72 cent a share, according to Thomson Reuters
In 2011 when dramatic market movements made for difficult
trading conditions, Och-Ziff reported $16.8 million, or 4 cents
a share, in distributable earnings for the quarter.
Incentive income, or the fees that hedge fund managers earn
when their funds perform well, increased by 13 times to $568
million at the end of the fourth quarter as the firm's flagship
OZ Master Fund returned 11.6 percent for the full year after
having been off 0.5 percent in 2011.
Strong earnings helped boost the company's dividend to 75
cents per share, far more than the 66 cents Wall Street
expected. In the third quarter, the company paid out a 12 cent
Calling last year's investment returns "strong" and
forecasting a "strong start to 2013," Chief Executive Daniel Och
said the firm, one of a handful of publicly traded hedge funds,
is poised to grab a bigger market share as more investors look
to put money into hedge funds.
Already one of the industry's biggest firms, the New
York-based company had $33.1 billion in assets as of Feb. 1,
2013 for public pension funds, including the states of
Massachusetts and Florida, endowments and wealthy investors.