Och-Ziff Capital Management Group’s assets under management totaled $44.6 billion as of Sept. 30, down 7.1% from three months earlier and down 4.7% on a year-to-year comparison.
The alternative investment manager’s earnings report, released Tuesday, said the decline in total assets in the year ended Sept. 30 was driven by net outflows of $1.7 billion and distributions of $1.1 billion, offset by $540 million of performance gains.
Among the firm’s four main investment categories, only one strategy — institutional credit — experienced positive growth, up 51.1% to $7.1 billion during the year ended Sept. 30. Assets managed in the strategy, however, declined 7.6% in the quarter.
Och-Ziff’s credit opportunistic funds fell 3.9% to $4.9 billion in both the year and the quarter ended Sept. 30.
Och-Ziff reported its aggregate $12 billion managed in credit strategies is up 22% for the year, pushed by net inflows of $2.9 billion and investment gains of $63 million, and offset by $839 million of distributions in its closed-end opportunistic credit funds.
Och-Ziff’s real estate funds were down 9.5% in the year and down 5% in the quarter ended Sept. 30, to $1.9 billion.
Och-Ziff’s multistrategy hedge funds totaled $29.5 billion as of Sept. 30, down 12.7% for 12 months and down 10.6% for three months. The company reported net outflows from the funds of $4.8 billion and performance gains of $400 million during the year.
In terms of performance, year-to-date through Sept. 30, the net-of-fees returns of its hedge funds were Och-Ziff European Multi-Strategy UCITS Fund, 4.1%; OZ Europe Master Fund, 3.7%; OZ Asia Master Fund, 2.8%; OZ Master Fund, -2.1%; and OZ Enhanced Master Fund, -4.1%.
“While challenging market conditions adversely affected the performance of the OZ Master Fund during the third quarter … we believe the current environment plays to our strengths as fundamental, bottoms-up investors and will enable us to generate positive, absolute returns,” said Daniel S. Och, chairman and CEO, in the earnings report.