United States: Och-Ziff Saw $2.5 Billion of Outflows After Bribery Accord
Author(s): Katia Porzecanski | Date: November 2, 2016 | Language: English
Source: http://www.bloomberg.com/ | URL: https://goo.gl/QQlnsR | Type: Text
Och-Ziff Capital Management Group LLC, the hedge fund that settled a federal bribery probe in September, said clients pulled $2.5 billion of assets in the last month.
The firm suffered withdrawals of $2.4 billion on Oct. 1, and about $102 million over the rest of the month, the company said Wednesday in a statement. Some of the asset declines were offset by performance gains. Assets under management for the firm were $37 billion as of Nov. 1, a decrease of $2.3 billion from Sept. 30.
Founder Dan Och is seeking to repair the firm after a Sept. 29 a settlement with the Securities and Exchange Commission and the Justice Department. An Och-Ziff unit pleaded guilty to charges stemming from a plot to pay bribes to win investments in Africa. The uncertainty around the lengthy investigation spurred client redemptions, while legal costs weighed on the firm. Goldman Sachs Group Inc.’s retirement plan decided to pull its investment from Och-Ziff, while pension funds for New Jersey and Rhode Island trimmed their holdings.
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