Och-Ziff Capital Management Group LLC (NYSE:OZM) Q1 2019 Earnings Conference Call Transcript

May 09, 2019 • 08:30 am ET


Och-Ziff Capital Management Group LLC (NYSE:OZM) Q1 2019 Earnings Conference Call Transcript


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Good morning, and welcome to the Oz Management's First Quarter 2019 Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions). As a reminder, this conference (technical difficulty) I would now like to introduce (technical difficulty) conference, Adam Willkomm, Head of Business Development and Shareholder Services at Oz Management.

Adam Willkomm

Thank, Marcella. Good morning, everyone, and welcome to our call. Joining me today are Rob Shafir, our Chief Executive Officer; and Tom Sipp, our Chief Financial Officer. Today's call may include forward-looking statements, many of which are inherently uncertain and outside of our control. Before we get started, I need to remind you that Oz Management's actual results may differ, possibly materially, from those indicated in these forward-looking statements. Please refer to our most recent SEC filings for a description of the risk factors that could affect our financial results, our business and other matters related to these statements. The Company does not undertake any obligation to publicly update any forward-looking statements.

During today's call, we will be referring to economic income, distributable earnings and other financial measures that are not prepared in accordance with US GAAP. Information about and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are available in our earnings release, which is posted on our website. No statements made during this call should be construed as an offer to purchase shares of the Company or an interest in any of our funds or any other entity.

Earlier this morning, we reported first quarter 2019 GAAP net income of $37 million or $1.81 per basic and $1.73 per diluted Class A share. On an economic income basis, we reported first quarter 2019 distributable earnings of $30 million or $0.55 per adjusted Class A share. We declared a $0.37 dividend for the first quarter.

If you have any questions about the information provided in our press release and on our call this morning, please feel free to follow up with me.

With that, let me turn the call over to Rob.

Robert Shafir

Thanks, Adam. Good morning, everyone. We're off to a solid start in 2019. We achieved strong investment performance and made significant progress towards the strategic goals that we set forth for the year. Let me first turn to investment performance. Oz Master Fund was up 7.9% net for the quarter and is up 11.4% net year-to-date through April 30. There were positive contributions from nearly all strategies in the fund, led by global equities. These returns were a product of both our alpha-generating investment ideas and the tailwinds of rising markets.

There were a number of positive macro developments during the quarter. The Federal Reserve decided not to -- to hold off further interest rate increases. The fear of a recession was reduced. Economic data was steady and there was a growing perception that trade discussions between the US and China were headed in an encouraging direction. That