Och-Ziff Down Nearly 2% Despite Earnings Beat (OZM)

Och-Ziff Capital Management Group LLC OZM shares are down nearly 2%, trading inline with a broadly lower market, despite the publicly traded hedge fund being earnings estimates. The company said distributable earnings rose 33% on higher management fees, and is the number that Wall Street pays attention to, not net income. This came in at 16 cents per share on $138.4 million in revenues. Wall Street had been expecting earnings of 14 cents in distributable earnings on $119.2 million in revenues. “Our performance demonstrates the flexibility that our multi-strategy approach and international capabilities provide, enabling us to quickly respond to changes in the economic environment and capitalize on investment opportunities globally,” said Daniel Och, the company's CEO, in a statement. Assets under managements climbed to $29.4 billion as of May 1, up from $27.6 billion at the beginning of 2011. CEO Och went on to say, “We believe that capital inflows into the hedge fund industry are accelerating as institutional investors seek to increase the proportion of non-correlated strategies in their portfolios. Our dialog with both current and prospective fund investors is active, with interest from a diverse mix of investors worldwide. We remain confident that we are viewed as a manager of choice, which we believe positions us to attract a meaningful share of new industry flows.” At last check, shares were off 28 cents to $15.47, a loss of 1.8% so far on the trading session.