Och-Ziff Capital Management Group LLC (NYSE: OZM) stock rose 3.17% on January 4th, 2018 (Source: Google finance)
GSA Capital Partners LLP cut its position in shares of OZM by 34.9% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission.
Meanwhile, OZM has announced a comprehensive strategic plan that includes a significant equity reallocation by Chairman Daniel S. Och and former executive managing directors to current executive managing directors, facilitates deleveraging of the Company’s balance sheet, and converts the Company’s tax classification from a partnership to a corporation.
On the other hand, for the third quarter of 2018, OZM has reported a Distributable Earnings loss of $5.2 million, or $0.01 per Adjusted Class A Share, compared to Distributable Earnings of $39.8 million, or $0.07 per Adjusted Class A Share, for the third quarter of 2017. For the first nine months of 2018, Distributable Earnings were $47.2 million, or $0.09 per Adjusted Class A Share, compared to $128.8 million, or $0.23 per Adjusted Class A Share, for the first nine months of 2017.
Distributable Earnings excluding the legal provision recorded in the second and third quarters of 2018 were $10.9 million, or $0.02 per Adjusted Class A Share, for the third quarter of 2018, and $74.4 million, or $0.14 per Adjusted Class A Share, for the first nine months of 2018.
The quarter-to-date decline was primarily due to lower incentive income and management fees, the legal provision recorded during the quarter, as well as higher compensation and benefits. These decreases in Distributable Earnings were partially offset by a reduction in tax receivable agreement and other payables, which was primarily due to lower U.S. Federal corporate income tax rates in 2018, and higher interest income.
The year-to-date decline was primarily due to lower incentive income and management fees, as well as the legal provision recorded in the period. These decreases in Distributable Earnings were partially offset by a reduction in tax receivable agreement and other payables, which was primarily due to lower U.S. Federal corporate income tax rates in 2018, as well as higher interest income and lower compensation and benefits expenses
Moreover, the year-over-year increase in assets under management was driven primarily by performance-related appreciation and the closing of additional CLOs and an aircraft securitization within Institutional Credit Strategies. These increases were partially offset by net outflows in the Company multi-strategy funds, as well as distributions in certain multi-strategy funds that the Company decided to close.