According to WSJ.com, all four of Och-Ziff’s hedge funds posted growth in December, while NYtimes.com reported that the firm’s AuM had expanded by $700m last month to end 2009 at $23.5bn, up 6.3%.

Because Och-Ziff has managed to meet its high water mark last year, it was able to start collecting performance fees from its investors.

Other Och-Ziff’s funds also posted positive results, including one dedicated to Europe that was up 0.3% for December and 16.3% for 2009. Och-Ziff’s Asia Master Fund was rose 1.6% last month and ended the year with a 33.6% gain. The company’s Global Special Investments Master Fund was up by almost 1% for the same period, and 8.3% for the year.

However, these funds remain below their high water marks because of the losses they incurred in 2008.

The firm’s encouraging performance last year attracted investors to pour more money into the company.

As early as September last year, Och-Ziff reported double-digit returns and claimed to have recouped most of its heavy losses made in 2008. The New York-based firm's flagship OZ Master Fund, Ltd gained 17.06% in the first eight months of 2009 after having lost 15.9% last year when most hedge funds suffered heavy losses during the financial crisis.

As a further sign that the company was back on its feet, Och-Ziff confirmed in November it would buy TPG’s stake in the British department store chain Debenhams PLC after the U.S. buyout firm made its exit from the business.

Och-Ziff Capital Management Group LLC is a leading, global institutional alternative asset management firm. It was founded by Daniel Och in partnership with the Ziff family in 1994.

P-D