According to the good people at Bloomberg Och-Ziff Capital Management Group LLC, the hedge fund run by Daniel Och, reported a 94 percent drop in fourth-quarter profit on lower performance fees as most of the firm’s funds lost money in 2011.
Distributable profit, a measure excluding costs related to Och-Ziff’s 2007 initial public offering, fell to $16.8 million, or 4 cents a share, from $303.1 million, or 74 cents, a year earlier, the New York-based company said today in a statement. Earnings beat the 2-cent average estimate of eight analysts in a Bloomberg survey.
Performance fees shrank by 90 percent as Europe’s sovereign-debt crisis roiled markets. Three of the firm’s four funds declined last year, led by a 4.9 percent loss for the European fund. Market gains since the start of the year helped offset $300 million in redemptions, the firm said.
“Heading into the quarter, the set up for 2012 was earnings power and building back up that performance,” said Daniel Fannon, a Jefferies & Co. analyst based in San Francisco, who recommends investors buy the stock. “The outlook is one where we still expect a fair amount of growth in 2012…”
http://www.bloomberg.com/news/2012-02-09/och-ziff-net-income-drops-94-as-performance-fees-decline.html
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