Och-Ziff rises on fund performance, upbeat note

Shares of Och-Ziff Capital Management Group LLC rose Friday after a Jefferies analyst noted the strong performance of the alternative asset manager's funds so far this year.

Analyst Daniel Fannon raised his 2010 earnings estimate to 75 cents per share, up from 68 cents per share.

In a note to investors, Fannon said Och-Ziff's Master Fund was up 0.9 percent in March and 4.38 percent for the year. That compares with the 11.5 percent drop in the S&P.

Performance was positive across all Och-Ziff's funds in March, which should help generate higher fees, Fannon wrote.

Redemptions are also slowing; the $2.1 billion in redemptions for March was also below Jefferies' estimate of $3 billion, Fannon said.

Credit Suisse analyst Craig Siegenthaler also raised his estimate on Thursday for Och-Ziff to 65 cents per share, from the previous 54 cents per share, based on the higher probability of generating fund performance fees. He also boosted his price target by $1 to $7.

Och-Ziff stock rose 35 cents, or 5.2 percent, to $7.14 in morning trading.