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April 03, 2008

Och Ziff Funds report performance losses in 4th Qtr.

Och Ziff Capital Management (ticker: OZM) repoted that all four of its funds experienced losses in the firsdt quarter.  The OZ Master fund, which is the firms flagship fund, is down 0.85% year-to-date while the Europe Master Fund has fallen 1.75% YTD, the Asia Master Fund is down 2.58% YTD, and the Global Special Investments Master Fund declined 0.60% in the same time frame.

This of course comes on the heels of a dismal fourth quarter when the firm announced that assets were down $774 million. 

This morning stock is trading at $20.00 per share which is down roughly 44 cents (-2.15%) from yesterday's close. 

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Conviction List

  • BUY Goldman Sachs (ticker: GS)
    Recent Px: $180
    12 Mo. Target Px: $230
    Goldman Sachs is a "best of breed" firm that prints money like no other on Wall Street. Trading at 9 times next years earning there is no reason to see this stock going lower than recent volatility has suggested. Recent earnings announcement surpassed analyst expectations. I would expect them to continue doing so. Buying in the 160s or lower would be a good buy.

    SELL Bear Stearns Corp. (ticker: BSC)
    Recent Px: $10
    12 Mo. Target Px: N/A
    JP Morgan got a heck of a deal and even felt bad about their initial offering price that they raised the bid from $2 to $10 per share. I guess it always possible that the deal falls apart and other outside bids are submitted but not without losing their building. Its a virtual lock at this point. Therefore, I think its time to look elsewhere.

    BUY Ultra Petroleum (ticker: UPL)
    Recent Px: $78
    12 Mo. Target Px: $100
    Ultra Petroleum's knack for oil and gas exploratory success makes this name a "must have" in the portfolio. This Houston-based firm has interests and business in Green River Basin, Wyoming, and offshore China.

    BUY iShares China 25 (ticker: FXI)
    Recent Px: $145
    12 Mo. Target Px: $175
    Chinese economist have forecasted a 11% growth in GDP for this year...and that comes on the heels of a slowing US economy. One word: "WOW!"

    BUY Dow Jones Ultra 200% Index (ticker: DDM)
    Recent Px: $70
    12 Mo. Target Px: $88
    Goldman superstar Abbey Cohen has predicted that the DJIA will see 14700 this year. With that logic and her call in mind, then consider using the 2:1 magnification etf that is based on the Dow's performance.

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