Och: No need to ‘hedge’ bets on firm

Daniel Och is hoping the bloodletting at his hedge fund is almost over.

Och-Ziff ’s assets under management have plunged by roughly $10 billion to $32 billion over the last year, with clients yanking their money as the hedge fund paid hefty fines and disgorgements to settle US criminal and civil bribery charges.

“We believe that the redemption cycle that started in the second quarter of last year has largely ended,” Och said Tuesday on an earnings call with analysts.

In the first four months of the year, investors pulled $6.9 billion from the fund.

“We are one quarter away from … all clients having had the ability to redeem since this cycle began,” he said.

Last September, Och-Ziff paid $413 million to settle charges that it violated the Foreign Corrupt Practices Act by paying bribes to African officials, including the son of deceased Libyan dictator Moammar Gadhafi.

Broader skepticism about the hedge fund industry was also a reason why clients sought redemptions.

Last August, the fund cut its manage- ment fee by a quarter percent in an effort to stanch the redemption requests.

“We think investors are comfortable with our pricing,” Och said Tuesday.

Despite headwinds, Och-Ziff ’s main fund is up 4.1 percent for the quarter and 11.9 percent for the 12 months ending March 31, which has made Och-Ziff ’s communications with clients a little easier.

“The dialogue has shifted,” Och said, adding later, “Our goal is to continue to perform and do other things to accelerate that shift.”