Och-Ziff Capital Management Group, the largest publicly traded hedge-fund firm in the U.S., on Wednesday reported $8 billion of client withdrawals for the past year.
The latest set of net withdrawals reduced the firm’s total assets to less than $38 billion overall. Och-Ziff also disclosed in a quarterly earnings report that redemptions of funds have continued to pile up in 2017.
Founder Daniel Och told analysts on Wednesday that the “worst quarter is behind us.”
For the quarter ended in December, the company reported a profit of $2.8 million, or 2 cents a share, compared with a year-earlier loss of $22.3 million, or 12 cents a share. Excluding certain items, the company said it earned a penny a share.
The New York-based firm’s stock fell 8% to $3.35 by Wednesday afternoon, all but wiping out its gains for the year. The shares were down by 66% over the past five years.
Och-Ziff is suffering from a general disillusionment among investors regarding hedge funds—the industry has reported a record five consecutive quarters of outflows—as well as more individual issues. The firm last year agreed to pay $412 million after a subsidiary pleaded guilty to conspiracy to commit bribery in Africa.
Mr. Och’s day contrasted with that of one-time rival Fortress Investment Group. Fortress shares were up 28% after it announced a takeover by Japanese technology giant SoftBank Group.
An Och-Ziff spokesman declined to comment.