Och-Ziff's trading in AIG stock is discussed, and the following statements are made:
"Och-Ziff Capital Management Group LLC (OZM), the hedge-fund firm with $31.8 billion under management, added stakes in American International Group Inc. (AIG) in the third quarter before superstorm Sandy devastated the Eastern U.S... Och-Ziff tripled its stake to 33.2 million shares, it said in a filing."
The Bloomberg news posting continued by saying:
"AIG has fallen 16 percent from a 20-month closing high of $37.21 on Oct. 18. The firm hasn’t announced losses from the storm that made landfall Oct. 29, killing at least 100 people in the U.S. Sandy caused insured losses of $20 billion to $25 billion, according to Risk Management Solutions Inc."
At peak, OZM's position in AIG was worth $1.235 billion. Then it dropped 16% -- a cool $200 million.
Great trade girls. Still "managing" funds that are making 5% on average this year? Or is it now 4%?
1) Why did OZM believe that the risks AIG takes were not properly priced into its stock? They quite obviously were.
2) What did Hank Paulsen have to say about secret insider hurricane information? Shouldn't the public at large be made aware of such brilliant prognostications when they occur?
3) Would someone who bought QQQ on January 2, 2012, and held it to the present date, have made over ten percent greater return on his investment than OZM's funds made this year on average?
4) If you were a stupid Arab country that parks dollars in hedge funds, would you pull out of Och-Ziff?
5) How many more recoveries from hurricane-style disasters does Och-Ziff intend to help fund with investor capital?