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Company Links |
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Major Stock Holders
(Prior To
Offering) |
Name |
Class A |
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Daniel Och |
48.50% |
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David Windreich |
11.20% |
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Michael Cohen |
6.70% |
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Ziffs |
10.00% |
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Zoltan Varga |
4.10% |
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Business Environment |
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The asset management business involves managing investments on behalf of third parties in exchange for contracted fees and other income. The industry manages trillions of dollars of assets, and can be broadly divided into two categories: traditional asset management and alternative asset management.
Based on their relative share of new investment flows, alternative asset managers have gained relative market share from traditional asset managers and are expected to continue to do so, as investors seek strategies that deliver diversification to improve the risk-adjusted return of their portfolios. According to McKinsey & Company, the percentage of net new investment flows into alternative asset classes grew from 7% to 22% between 2001 and 2005.
The term “hedge funds” generally refers to privately held and unregistered collective investment vehicles. Because they are not subject to the investment limitations imposed by the 1940 Act, hedge funds differ from traditional investment vehicles, such as mutual funds, by the strategies they employ and the asset classes in which they invest.
According to Hedge Fund Research, as of December 31, 2006, there were 9,462 hedge funds in existence globally, spanning a range of target risk-return profiles. Global assets under management in the hedge fund industry, as reported by HFR Industry Reports, have grown by approximately 25% annually since 1990 to exceed $1.4 trillion at December 31, 2006. Net inflows in 2006 increased to a record high of $126 billion, as compared to $47 billion in 2005.
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Company Strategy |
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The Company is a leading international, institutional alternative asset management firm and one of the largest alternative asset managers in the world.
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Product/Services Portfolio |
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The Company’s funds are typically organized using a “master-feeder” structure. This structure is commonly used in the hedge fund industry and calls for the establishment of one or more U.S. or non-U.S. “feeder” funds, which are separate legal entities and have different structures and operations designed for distinct groups of investors. These feeder funds hold shares in a “master” fund that is the primary investment vehicle for its feeder funds.
The Company has established five master funds, four of which are focused on a specific investment strategy or geographic region. The Company’s flagship fund, OZ Master Fund, Ltd., is a global multi-strategy fund that participates in all of its investment strategies. These master funds are managed by the Och-Ziff Operating Group.
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Investment Analysis |
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Total revenues increased by $85.6 million, or 43%, to $284.4 million for the three months ended March 31, 2007 compared to $198.8 million the three months ended March 31, 2006.
Total expenses increased by $57.1 million, or 28%, to $263.5 million for the three months ended March 31, 2007 compared to $206.4 million the three months ended March 31, 2006.
Net income was $85.2 million for the three months ended March 31, 2007 compared to $45.9 million for the three months ended March 31, 2006, an increase of $39.3 million, or 86%
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Income Data (Thousand $ Except EPS) |
| Year |
Revenues |
Costs |
Oper Income |
Taxes |
Net Income |
EPS |
| 2004
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285,926 |
414,110 |
0.00 |
9,785 |
193,780 |
0.00 |
| 2005
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511,808 |
747,133 |
0.00 |
9,898 |
260,891 |
0.00 |
| 2006
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1,005,833 |
1,089,968 |
0.00 |
23,327 |
588,007 |
0.00 |
| 2007
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284,366 |
263,528 |
0.00 |
3,640 |
85,188 |
0.00 |
| *As of period ended March 31, 2007
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Balance Sheet Data
(Thousand $) |
Year |
Cash |
Acct Recv. |
Inventory |
Total Cur Assets |
Total Cur Liability |
PPE |
Total Assets |
LT Debt |
SH Equity |
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2005 |
69,550 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
24,305,342 |
0.00 |
738,695 |
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2006 |
23,590 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
36,075,049 |
0.00 |
1,247,664 |
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2007 |
44,450 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
22,768,010 |
0.00 |
1,258,384 |
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*As of period ended March 31, 2007
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| Cash
Flow Summary
(Thousand $) |
Year |
Net Cash-Ops |
Net Cash-Inv |
Net Cash-Fin |
Net Change |
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2004 |
-3,993,845 |
0.00 |
4,012,336 |
15,120 |
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2004 |
-2,867,283 |
0.00 |
2,911,313 |
41,750 |
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2006 |
-4,202,594 |
0.00 |
4,170,147 |
-45,960 |
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2007 |
-603,442 |
0.00 |
652,949 |
20,860 |
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*As of period ended March 31, 2007
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- Avoid 
- Short-Term Growth
- Long-Term Growth 
- Long-Term Value 