Och-Ziff Capital Management isn't gonna sugarcoat this one or try to give you the runaround: the returns its been generating of late, to use a technical phrase, suck big time. You know it and they know it. And since the firm is currently focusing on putting out the fire that is a 5-year investigation into "whether it knowingly paid bribes to get investments from Libya," it's gonna do something hedge funds are typically loathe to do, if you'll stick out this rough patch.
Troubled New York-based Och-Ziff Capital Management will be shaving 25 basis points off its multistrategy fund management fees — a move that will instantly siphon nearly $65 million from the $42 billion firm, and the pockets of its partners. That’s enough cash for Chief Executive Daniel Och to buy a nifty new Gulfstream G650 private jet...The company warned of fee pressure in its second-quarter filing with the Securities and Exchange Commission, noting $4.9 billion in net outflows and weak performance. It added that other hedge funds face similar pressure, and that a fee reduction was “likely.”