The Morning Brief: More Redemptions Hit Och-Ziff

April 04, 2017   Stephen Taub

The hedge fund firm’s asset drain continues, with investors pulling close to $2 billion over the past month.

Dan Och’s Och-Ziff Capital Management has received close to $2 billion of redemptions. The firm reported that in the past month alone, total assets declined by $1.8 billion, to $31.9 billion. This occurred in a month when its flagship multi-strategy fund, OZ Master Fund, posted a 0.89 percent gain, boosting its gain for the year to 4.13 percent. OZ Asia Master Fund returned 1.13 percent in March and 6.22 percent for the quarter, while OZ Europe Master Fund rose 0.57 percent last month and 2.34 percent in the first quarter.


Shares of General Motors, a target of sometime-activist hedge fund firm Greenlight Capital, fell 3.4 percent on Monday, to close at $34.17, after investors were apparently disappointed in March car sales. Interestingly, GM sales rose 1.6 percent last month, the only domestic car maker to report an increase. GM is the fourth largest holding of David Einhorn’s Greenlight, which wants to break the company into two separate companies. Greenlight also has a large position in GM call options. The stock is also the seventh-largest U.S. long of Anchor Bolt, a Chicago hedge fund founded by Citadel alumnus Robert Polak.


Omega Advisors reported it has $3.6 billion in assets under management, up from $3.5 billion at the end of January. It is not clear how the firm’s funds have performed recently.


Adage Capital Partners disclosed it owns 4.95 million shares of Silver Run Acquisition Corporation II, or 5.5 percent of the total outstanding. Silver Run Acquisition Corporation II is an energy-focused special purpose entity sponsored by an affiliate of Riverstone Holdings. It completed its initial public offering on March 29.


Carlson Capital disclosed in a regulatory filing that as of March 22, it owned about 7.75 million shares of ProPetro Holding Corp., or 9.93 percent of the oilfield services provider. The Dallas hedge fund firm did not own any shares of ProPetro as of year-end.


Shares of Valeant Pharmaceuticals International fell more than 5 percent on Monday, to close at $10.47. There was no apparent news about the company. The stock is now down about 28 percent this year alone.

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