It’s not all doom and gloom for hedge funds like Och-Ziff
Posted by: in Stocks Money NewsFiled under: Good news, Market matters
Och-Ziff Capital Management, an asset manager currently in the process of becoming public, seems to be “weathering the storm,” according to DealBook. According to recently-filed paperwork related to the IPO, recent issues facing hedge funds (volatility spike, subprime issues, etc.) “have not materially impacted our funds’ performance.”
This leads me to believe that the funds were either bearish/uninvolved with subprime or they were long subprime but those losses were easily balanced out by some other positions’ gains. Either way, the important thing is that the firm’s funds are alive to trade another day unlike numerous Bear Stearns funds, Sowood, and so on.
It’s refreshing to see the media finally covering some positive hedge fund headlines. I’m aware of many other hedge funds that are still up 6-8% net on the year. As I’ve said in an earlier post, there are two sides to every trade and, as a result, for every fund that is ‘killed’ by something like subprime there is another fund that is prospering due to the panic.
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