(Adds details about quarter, quote)
By Svea Herbst-Bayliss
BOSTON Aug 5 Och-Ziff Capital Management Group
LLC, one of a handful of publicly listed hedge fund firms,
reported higher quarterly earnings on Tuesday as assets rose to
a record amid fresh demand for portfolios investing in real
estate, stocks and credit.
The New York-based company reported second-quarter
distributable earnings of $90.4 million, or 18 cents, as assets
under management hit $45.9 billion on June 30.
Distributable earnings excluded costs from Och-Ziff's
November 2007 initial public offering.
The results matched the average analyst estimate, according
to Thomson Reuters I/B/E/S. A year earlier the company earned
$77.5 million, or 16 cents a share.
The company will pay a dividend of 17 cents a share on Aug.
22 to holders of record on Aug. 15. In May it paid a dividend of
Assets under management have grown 25 percent since the end
of the second quarter of 2013, the company said. Clients added
$5.9 billion in new money during that time while $3.4 billion
came from performance-related appreciation. Pension funds,
private bank clients, and foreign governments have invested with
Och-Ziff in recent years, choosing its relatively conservative
The company has taken in more new money in the first seven
months of 2014 than all of 2013.
Year to date through August 1st, our organic net inflows
exceeded our full-year 2013 total by 46 percent, Daniel Och,
chairman and chief executive officer, said in a statement.
He said he expected pension funds and other institutions to
continue to increase their allocations to alternative asset
managers. "We will be a substantial beneficiary of his secular
trend as we further expand and diversify our business," Och
The bulk of the assets were invested in its multistrategy
hedge funds, including $27 billion in the flagship OZ Master
Fund, but credit portfolios and collateralized loan obligations
also grew, with a 34 percent and 82 percent jump in demand,
respectively, from a year ago.
In the first half of the year OZ Master returned 2.15
percent while the OZ Asia Master Fund lost 6.6 percent and the
OZ Europe Master Fund lost 1.92 percent.
(Editing by Lisa Von Ahn and Jeffrey Benkoe)