Och-Ziff Capital Management Group LLC (NYSE:OZM) is set to close the year on a strong note on the back of strong performance reported in November.
Bulent Ozcen of RBC Capital Market anticipates the institutional alternative asset manager would have generated inflows of $250 million in November.
Strong performance in November
According to the RBC Capital’s analyst, Och-Ziff Capital Management Group LLC (NYSE:OZM)’s performance remained strong in November as the analyst anticipates performance across Och-Ziff’s major funds to be about 115 basis points against 108 basis points reported in October.
The analyst ascribes the slight improvement in the performance to the OZ Asia Master Fund’s 204 basis points performance, up from 47 basis points. However, the analyst points out this strong performance was somewhat offset by the OZ European Master Fund, which was up only 141 basis point as against 209 basis point clocked in October.
With Och-Ziff Capital Management Group LLC (NYSE:OZM)’s flagship fund, the OZ Master Fund generating performance of 1.09% in November, the RBC analyst anticipates Och-Ziff Capital Management to finish the year on a very strong note.
RBC maintains Outperform rating on OZM
Bulent Ozcen of RBC Capital Market points out that the year-to-date performance also remains strong with the OZ Master Fund up 12.2%, the OZ Europe Master Fund up 11.6% and OZ Asia Master Fund up 12.3%. Furthermore, the assets under management have grown 22.9% year-to-date, with the AUM growing from $31.9 billion to $39.2 billion between January 1st and December 1st 2013.
With consistent performance posted by Och-Ziff Capital Management Group LLC (NYSE:OZM), RBC maintains its Outperform rating on Och-Ziff Capital Management. Though Och-Ziff Capital Management’s dividend yield might have dropped over the past few months, RBC continues to like Och-Ziff Capital Management as it still offers one of the most attractive dividend yields in the sector.
Man Group gets Underperform rating
RBC Capital reiterated its Underperform rating on Man Group, which is another publicly traded alternative investment manager.
As reported earlier, the world’s largest publicly traded hedge fund, Man Group PLC (OTCMKTS:MNGPF), has been experiencing a continuing outflow of clients in recent years. The hedge fund has been struggling to create value for shareholders and clients since the financial crisis.
In the meanwhile, Goldman Sachs Group Inc (NYSE:GS) downgraded Fortress Investment Group LLC (NYSE:FIG) to Neutral from its earlier Buy rating as the stock outperformed with 75% YTD return against average asset manager’s return of 42%. Goldman reckons the softer 4Q to-date performance of the hedge fund and key public PE investments could also be near-term headwinds for Fortress.