Saturday, January 4, 2014

$40.6 billion AUM

The estimated unaudited amount of assets under management is approximately $40.6 billion, which reflects a net increase of approximately $1.4 billion last month.
  December 2013
Estimate (1)(2)
    December  2013

OZ Master Fund
OZ Europe Master Fund
OZ Asia Master Fund

Buy owner-managers who want their stock to go up for solid reasons. The firm went public in 2007, and these insiders have a five-year lockup. That means they can’t sell until late 2012. I would expect the partners to cash out some of their stake at that time. They have every incentive to the get the stock price up before then. 

Moreover, they eat their own cooking. Of the $30 billion in assets under management, about 9% is money the partners and employees invested themselves. They have every incentive to do well in their funds because a good chunk of it is their own money. Plus, the partners take no salary or bonus. They get paid the way shareholders get paid through distributions. 

The distributions reflect the performance of the year prior. The big dividend is always the last dividend, declared at the end of the year and paid in February. It’s also a simple business. Gather assets, get paid. Invest well, get paid. There is little mystery here. It generates a lot of cash and has little need to reinvest that cash in the business.

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