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Money Management

Och-Ziff’s assets rise 1.3% in quarter, drop 3.2% for year

Och-Ziff Capital Management Group CEO Robert Shafir

Och-Ziff Capital Management Group's assets under management totaled $32.8 billion as of March 31, up 1.3% from Dec. 31 and down 3.2% from March 31, 2017, the firm's earnings release said Wednesday.

Net inflows for the quarter totaled $381 million, investment appreciation totaled $425 million and fund distributions totaled $398 million for a net increase of $408 million, the earnings report showed.

By contrast, for the quarter ended March 31, 2017, investment appreciation of $932 million was offset by net outflows totaling $4.8 billion and fund distributions totaling $66 million, for a net decline of $3.9 billion.

Among asset classes managed by Och-Ziff, institutional credit strategies solely accounted for the quarterly growth in total AUM, with $11.2 billion in AUM as of March 31, a 10.3% increase over Dec. 31 and up 39.5% from March 31, 2017.

Multistrategy hedge fund AUM, meanwhile, totaled $13.3 billion as of March 31, down 2.7% from three months earlier and down 24.7% from a year earlier.

Opportunistic credit fund AUM totaled $5.4 billion as of March 31, down 1.6% from Dec. 31 and up 2.7% from March 31, 2017.

Real estate fund AUM totaled $2.5 billion as of March 31, a 0.9% drop from the end of the previous quarter and up 10.7% from the end of the year-earlier quarter.

Assets under management in Och-Ziff's "other" category fell to $439 million, a 25.4% drop from three months earlier. The total was also down 35.9% from a year ago.

CEO Robert Shafir said in a transcript of the earnings call that as May 1, total AUM had fallen about $150 million from the March 31 figure to $32.7 billion.

"Part of my vision and strategy for OZ in the near term is to invest our resources in our scale funds within our core multistrategy credit and real estate businesses," Mr. Shafir said.

The OZ Master Fund, the company's largest multistrategy hedge fund, returned a net 2.1% during the first quarter.

Revenues for the firm totaled $128.4 million during the first quarter, compared to $139.2 million during the first quarter of 2017. Net income totaled $3.5 billion for the quarter, compared to a net loss of $4.3 billion during the first quarter of 2017. Fourth quarter of 2017 numbers were not made available.