Och-Ziff Capital Management is still feeling the effects of
a bribery scandal that resulted in a $412 million settlement
with the government last year. The publicly traded hedge fund
firm disclosed that assets under management declined by $3.6
billion in the last month alone, leaving it with $33.5 billion
at year-end. The reduction seems to mostly reflect redemptions,
given that the multistrategy firm’s flagship hedge
fund, the OZ Master Fund, returned 0.72 percent for the month.
It finished the year up 3.82 percent. The OZ Europe Master Fund
was also up for the month, by 1.61 percent. For the full year
it rose 3.70 percent. On the other hand, OZ Asia Master Fund
lost 2.27 percent in December, extending its loss for the year
to 5.39 percent. Altogether, the hedge fund firm’s
assets declined by roughly 25 percent in 2016. The firm earlier
said it suffered $6 billion in redemptions in the first three
quarters of the year.
Shares of hedge fund favorite Marathon Petroleum Corp. fell
3.2 percent, to close at $51.24, even though Credit Suisse
raised its price target on the stock from $55 to $63. The
investment bank made its move following the
company’s announcement that it will accelerate
plans to "drop down" assets to its master limited partnership.
As we reported,
Elliott Management Corp. earlier disclosed owning about 4
percent of the shares and urged the company to initiate a
Soroban Capital Partners is also a top-ten holder, with 2
percent of the shares.
The Chemours Company surged 4.6 percent, to $22.19, after it
was announced the company’s stock will be added to
the S&P MidCap 40 Index. The stock has been one of the top
performers, more than quadrupling in price last year. The
chemical company is a major holding of
Greenlight Capital, which in turn is the
company’s largest shareholder.