New Investor Poised To Enter Junk Market


OZF Capital, a unit of Ziff Brothers Investments, is planning to become the junk market's newest buy-side player, according to market sources. Company officials declined to provide details about the plans, citing SEC regulations. Neither the size of the fund nor the volume of expected transactions was available at press time.

However, market sources familiar with the plans said the investments will cover a broad spectrum of junk bonds and distressed debt, with a special focus on media and telecommunications.

Sources also said that the firm has been hiring high yield pros over the past several weeks. Jacob Gulkowitz, formerly a high yield portfolio manager at Deutsche Banc Alex. Brown and at BT Alex. Brown before that, was hired last month. And Avi Katz, formerly on the high yield research team at Standard Bank, was hired last month as well.

Both will report to senior managing members Steve Freidheim and Dan Och. Freidheim also joined the new firm recently, coming over from Deutsche Bank's fixed income department, where he was a managing editor.

Dan Och was formerly at Goldman, Sachs & Co. as an equity arbitrage and market neutral fund specialist.