Och-Ziff: Keep insider, non-public information to yourself

By Rob Copeland

Mon Oct 28, 2013

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The $33.9 billion hedge fund colossus says providing non-public information to the firm could have 'detrimental effect' on relationship.


Och-Ziff Capital Management, manager of $33.9 billion in hedge fund money, would really, absolutely--when it comes down it, in even the most extreme of circumstances--prefer if you didn't put it in a position to see any inside information.

That was the message of an email sent out Tuesday to all the firm's external partners, including brokers, research providers and vendors.

"OZM would like to remind your firm not to provide it with any material non-public information, or any information that you or your firm is obliged to keep confidential, is not authorized to disclose to OZM, or was not authorized to receive," read the note from the firm's compliance department.

The missive, a full version of which is pasted below, was followed by a bald threat.

"Please do not send OZM any unsolicited teasers, PPMs, OMs, slide decks, or other descriptions of potential opportunities, as doing so will have a detrimental effect on your relationship with OZM."

The email is sent once a year, and is unrelated to SAC Capital Management's highly-publicized legal troubles this year, according to a person familiar with the firm. Jonathan Gasthalter, an external spokesman for Och-Ziff at Sard Verbinnen & Co., declined comment on the record.

The full letter (with contact info redacted):

Subject: Material Non-Public & Confidential Information - REMINDER

Good Morning,

*Please note that Och-Ziff Capital Management ("OZM") is sending this email to all of its brokers, third-party research providers, vendors and other advisors as a reminder and proactive measure.*

OZM would like to remind your firm not to provide it with any material non-public information, or any information that you or your firm is obliged to keep confidential, is not authorized to disclose to OZM, or was not authorized to receive (collectively, "Confidential Information") unless OZM has executed a written confidentiality agreement relating specifically to that information. Please note that as an investment manager, OZM trades securities and other financial instruments of various public and private companies. OZM does not agree to keep confidential any information your firm may provide and does not agree to any restrictions on its trading activities, except pursuant to a written confidentiality agreement executed by OZM. Please do not send OZM any unsolicited teasers, PPMs, OMs, slide decks, or other descriptions of potential opportunities, as doing so will have a detrimental effect on your relationship with OZM. If your firm discloses any such information to OZM in a manner inconsistent with this paragraph, OZM may be precluded from trading certain financial instruments which could cause significant losses or prevent OZM's realizing of significant profits. In addition, such disclosures could result in your firm or OZM's subjection to civil or criminal liability.

If your firm would like to present an investment opportunity or a potential transaction to OZM for consideration, your firm must do so either without the use of Confidential Information or by contacting Legal and Compliance at the following email address: compliancedeals@ozcap.com. If OZM is interested in learning more about such an opportunity, OZM may be willing to enter into a written confidentiality agreement having a defined term and agreed upon duration. Only at that point would OZM agree to receive any Confidential Information from you. OZM therefore requests that your firm does not disclose or otherwise make available to us any Confidential Information, however obtained, unless and until OZM enters into a written confidentiality agreement.

Please distribute this email to everyone at your firm who may contact OZM regarding any investment opportunity or potential transaction.

ISSN: 2151-1845 / CDC10004H