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UPDATE 2-Och-Ziff posts net loss, but economic income rises
August 6, 2008 / 12:09 PM / 9 years ago

UPDATE 2-Och-Ziff posts net loss, but economic income rises

(Adds share price, detail)

NEW YORK, Aug 6 (Reuters) - Hedge fund manager Och-Ziff Capital Management Group LLC (OZM.N) posted a second-quarter net loss on Wednesday due to IPO-related costs, but economic income rose, helped by strong revenue growth.

The New York-based firm said its quarterly net loss was $60.8 million, or $1.05 per share, compared with a profit of $114.3 million in the period a year earlier.

Expenses rose to $522.2 million from $321.2 million on reorganization costs connected with its initial public offering last November.

“We are well positioned to grow assets under management as we extend our performance track record and make consistent progress in building our private investment platforms,” said Och-Ziff in a statement.

Economic income, a measure widely used in the hedge fund industry which represents pretax income that doesn’t include allocations to the company’s partners for pre-IPO interests, rose 15 percent to $93.3 million. Revenue increased 23 percent to $147.1 million.

Distributable net earnings were 13 cents per share, matching analysts’ average forecast, according to Reuters Estimates.

Assets under management totaled $33.6 billion at June 30, flat with the previous quarter. The company declared a quarterly dividend of 11 cents per share.

Och-Ziff shares rose 11 cents to $17.20 on the New York Stock Exchange. (Reporting by Christopher Kaufman and Dane Hamilton; Editing by Brian Moss and John Wallace)

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