Och-Ziff Capital Management Group is dropping its distressed debt fund at the end of this year. In a recent letter to investors obtained by Alternative Investment News, an LMW sister publication, firm founder Dan Och announced that the firm is separating itself from the Och Ziff Freidheim Credit Opportunities Fund. The fund is run by Steve Freidheim.
The letter stated, "We are very supportive of Steve and his effort." This has led to speculation that Freidheim will set up shop on his own. The fund held $1.2 billion in assets in 2003, according to Alpha magazine's rankings of the top 100 hedge funds.
Freidheim is also the manager of the distressed allocation for the firm's flagship multi-strategy fund. In January, the fund had a 32% distressed allocation, and in a letter to investors, Och announced his intentions to reduce the slug. A subsequent letter in April revealed the allocation had been reduced to 20%.
Calls to Freidheim were not returned. Och was traveling and did not return messages left at his New York office. The letter referred inquiries to investor relations, but calls to investor relations officials J.K.Brown and Kevin Silva were not returned.
