Company profile

Ticker
SCU
Exchange
CEO
Robert Scott Shafir
Employees
Incorporated in
Location
Fiscal year end
Industry (SEC)
Former names
Och-Ziff Capital Management Group Inc., Och-Ziff Capital Management Group LLC
SEC CIK
SEC advisor number
801-56729
FINRA CRD number
107913
AUM ?
$43.05B (as of 12 Sep 19)
Accounts
131 (as of 12 Sep 19)
Employees
421 (121 investment advisory or research)
Address
Sculptor Capital Management
9 WEST 57TH STREET SUITE 1300
NEW YORK
NY 10019
Phone
(212)790-0000

SCU stock data

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FINRA relative short interest over last month (20 trading days) ?

Calendar

25 Feb 20
27 Feb 20
31 Dec 20

News

Company financial data Financial data

Quarter (USD) Dec 19 Sep 19 Jun 19 Mar 19
Revenue 271.8M 98.85M 103.51M 123.19M
Net income 48.1M -25.14M -8.63M -7.28M
Diluted EPS 1.45 -1.2 -0.46 1.73
Net profit margin 17.70% -25.43% -8.33% -5.91%
Net change in cash 114.12M -47.93M 29.99M -171.06M
Cash on hand 240.94M 126.81M 174.74M 144.75M
Annual (USD) Dec 19 Dec 18 Dec 17 Dec 16
Revenue 597.35M 507.22M 858.34M 770.36M
Net income 7.05M -24.28M 21.08M -124.68M
Diluted EPS 1.57 -1.26 0.97 -7.29
Net profit margin 1.18% -4.79% 2.46% -16.18%
Net change in cash -74.87M -153.7M 139.7M 75.74M
Cash on hand 240.94M 315.81M 469.51M 329.81M

Financial data from company earnings reports

49.4% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 79 0 +Infinity%
Opened positions 79 0 +Infinity%
Closed positions 0 0 NaN%
Increased positions 0 0 NaN%
Reduced positions 0 0 NaN%
13F shares
Current Prev Q Change
Total value 232.26M 0 +Infinity%
Total shares 10.51M 0 +Infinity%
Total puts 25.5K 0 +Infinity%
Total calls 82.8K 0 +Infinity%
Total put/call ratio 0.3
Largest owners
Shares Value Change
Abrams Capital Management 2.06M $45.5M NEW
BLK BlackRock 1.13M $25.02M NEW
MS Morgan Stanley 852.63K $18.84M NEW
Vanguard 804.05K $17.77M NEW
JPM JPMorgan Chase & Co. 540.05K $11.94M NEW
Samlyn Capital 535.7K $11.84M NEW
Odey Asset Management 510.58K $11.28M NEW
Nuveen Asset Management 492.58K $10.89M NEW
STT State Street 292.36K $6.46M NEW
BAC Bank of America 255.59K $5.65M NEW
Largest transactions
Shares Bought/sold Change
Abrams Capital Management 2.06M +2.06M NEW
BLK BlackRock 1.13M +1.13M NEW
MS Morgan Stanley 852.63K +852.63K NEW
Vanguard 804.05K +804.05K NEW
JPM JPMorgan Chase & Co. 540.05K +540.05K NEW
Samlyn Capital 535.7K +535.7K NEW
Odey Asset Management 510.58K +510.58K NEW
Nuveen Asset Management 492.58K +492.58K NEW
STT State Street 292.36K +292.36K NEW
BAC Bank of America 255.59K +255.59K NEW

Financial report summary

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Risks
  • Risks Related to Our Business
  • Difficult global market, economic or geopolitical conditions may materially adversely affect our business and cause significant volatility in equity and debt prices, interest rates, exchange rates, commodity prices and credit spreads. These factors can materially adversely affect our business in many ways, including by reducing the value or performance of the investments made by our funds and by reducing the ability of our funds to raise or deploy capital, each of which could materially adversely affect our financial condition and results of operations.
  • Terms of the United Kingdom’s transition in its withdrawal from the European Union.
  • An investment in our Class A Shares is not an alternative to an investment in any of our funds, and the returns of our funds should not be considered as indicative of any returns expected on our Class A Shares, although poor investment performance of, or lack of capital flows into, the funds we manage could have a materially adverse impact on our revenues and, therefore, the returns on our Class A Shares.
  • Investors in our funds have the right to redeem their investments in our funds on a regular basis and could redeem a significant amount of assets under management during any given quarterly period, which would result in significantly decreased revenues.
  • Our business, financial condition or results of operations may be materially adversely impacted by the highly variable nature of our revenues, results of operations and cash flows. In a typical year, a substantial portion of our incentive income and a large portion of our annual discretionary cash bonus expense is determined and recorded in the fourth quarter each year, which means that our interim results are not expected to be indicative of our results for a full year, causing increased volatility in the price of our Class A Shares.
  • Competitive pressures in the asset management business could materially adversely affect our business, financial condition or results of operations.
  • Damage to our reputation could harm our business.
  • Our indebtedness and Preferred Units may restrict our current and future operations, particularly our ability to respond to certain changes or to take future actions.
  • Subordinated Credit Facility
  • Changes in the method of determining LIBOR, or the replacement of LIBOR with an alternative reference rate, may adversely affect our credit arrangements and our collateralized loan obligation transactions.
  • Our business and financial condition may be materially adversely impacted by the loss of any of our key executive managing directors, particularly certain members of our Partner Management Committee.
  • Our ability to retain and attract executive managing directors, managing directors and other investment professionals is critical to the success and growth of our business.
  • We have experienced and may again experience periods of rapid growth and significant declines in assets under management, which place significant demands on our legal, compliance, accounting, risk management, administrative and operational resources.
  • We are highly dependent on information systems and other technology, including those used or maintained by third parties with which we do business. Any failure or breach in any such systems or infrastructure (including from a cyberattack) could materially impair our business, financial condition or results of operations.
  • We are subject to third-party litigation that could result in significant legal and other liabilities and reputational harm, which could materially adversely affect our business, financial condition or results of operations.
  • Extensive regulation of our business affects our activities and creates the potential for significant liabilities and penalties. Our reputation, business, financial condition or results of operations could be materially affected by regulatory issues.
  • The FCPA settlements could have a material adverse effect on our ability to raise capital for our funds.
  • Increased regulatory focus in the United States could result in additional burdens on our business.
  • Risk retention regulations could adversely affect our business.
  • A downturn in the global credit markets could adversely affect our CLO investments.
  • Regulatory changes in jurisdictions outside the United States could adversely affect our business.
  • If third-party investors in our funds exercise their right to remove us as investment manager or general partner of the funds, we would lose the assets under management in such funds, which would eliminate our management fees and incentive income derived from such funds.
  • Our failure to maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on our business, financial condition or results of operations.
  • Our failure to deal appropriately with conflicts of interest could damage our reputation and materially adversely affect our business, financial condition or results of operations.
  • Misconduct by our executive managing directors, employees or agents could harm us by impairing our ability to attract and retain investors and subjecting us to significant legal liability, regulatory scrutiny and reputational harm.
  • We may enter into new businesses, make future strategic investments or acquisitions or enter into joint ventures, each of which may result in additional risks and uncertainties in our business.
  • The terms of our outstanding Preferred Units, the Senior Credit Facility and the Subordinated Credit Facility and changes in the credit markets may negatively impact or may prohibit our ability to refinance our outstanding indebtedness or our ability to otherwise obtain attractive financing for our business, and may increase the cost of such financing if it is obtained. An increase in our borrowing costs may materially adversely affect our business, financial condition or results of operations.
  • Risks Related to Our Funds
  • Difficult market conditions can adversely affect our funds in many ways, including by negatively impacting their performance and reducing their ability to raise or deploy capital, which could materially reduce our revenues and adversely affect our business, financial condition or results of operations.
  • The historical returns attributable to our funds should not be considered as indicative of the future results of our funds or any future funds we may raise.
  • We are subject to counterparty default risks.
  • Poor performance of our funds would cause a decline in our revenues, results of operations and cash flows and could materially adversely affect our ability to retain capital or attract additional capital.
  • Our funds may determine to use leverage in investments, which could materially adversely affect our ability to achieve positive rates of return on those investments.
  • The due diligence process that we undertake in connection with investments by our funds may not reveal all facts that may be relevant in connection with making an investment.
  • Our funds may invest in relatively high-risk, illiquid assets, including structured products, and may fail to realize any profits from these activities for a considerable period of time or lose some or all of the principal investments.
  • Valuation methodologies for certain assets in our funds are subject to significant subjectivity and the values established pursuant to such methodologies may never be realized, which could result in significant losses for our funds.
  • Our funds make investments in companies that we do not control, exposing us to the risk of decisions made by others with whom we may not agree.
  • Our funds make investments in companies that are based outside of the United States, exposing us to additional risks not typically associated with investing in companies that are based in the United States.
  • Tariffs imposed by the current Administration and potential for further regulatory reform may create regulatory uncertainty for our funds and our investment strategies and adversely affect the profitability of our funds.
  • Risk management activities may materially adversely affect the return on our funds’ investments.
  • If our risk management processes and systems are ineffective, we may be exposed to material unanticipated losses.
  • Our funds’ investments are subject to numerous additional risks.
  • Risks Related to Our Organization and Structure
  • Our current and former executive managing directors’ total combined voting power could influence major corporate decisions that could conflict with the interests of our Class A Shareholders and materially adversely affect the market price of the Class A Shares.
  • Our Certificate of Incorporation and By-Laws contain provisions limiting the liability of our officers and directors to us, which also reduces remedies available to our Class A Shareholders for certain acts by such persons.
  • Because our executive managing directors hold their economic interest in our business directly in the Sculptor Operating Group, conflicts of interest may arise between them and holders of our Class A Shares, particularly with respect to tax considerations.
  • We intend to pay regular quarterly distributions to Class A Shareholders but our ability to do so may be limited by our holding company structure, as we are dependent on distributions from the Sculptor Operating Group to make distributions and to pay taxes and other expenses, and may be limited by contractual restrictions and obligations.
  • The declaration and payment of any future distributions will be at the sole discretion of our Board of Directors, which may change our distribution policy or reduce or eliminate our distributions at any time, in its discretion, and may be subject to contractual obligations and restrictions under Delaware law.
  • There are a number of risks involving the tax receivable agreement we are party to, including the risk that the Internal Revenue Service may challenge all or part of the tax basis increases and related increased deductions, and a court could sustain such a challenge, even with respect to amounts for which we have made payments pursuant to the tax receivable agreement.
  • We have agreed to indemnify certain executive managing directors and their related parties for certain losses in connection with the Recapitalization.
  • If we are deemed an investment company under the 1940 Act, the applicable restrictions could make it impracticable for us to continue our business as contemplated and would have a material adverse impact on the market price of our Class A Shares.
  • Risks Related to Our Shares
  • The market price and trading volume of our Class A Shares has been and may continue to be highly volatile, which could result in rapid and substantial losses for our shareholders.
  • The price of our Class A Shares may decline due to the large number of shares eligible for future sale and for exchange into Class A Shares.
  • Our current and former executive managing directors’ beneficial ownership of Class B Shares, the tax receivable agreement and anti-takeover provisions in our charter documents and Delaware law could delay or prevent a change in control.
  • Risks Related to Taxation
  • Our structure involves complex provisions of U.S. federal income tax law for which no clear precedent or authority may be available. Our structure also is subject to potential legislative, judicial or administrative change and differing interpretations, possibly on a retroactive basis.
  • As a result of the Recapitalization and the Corporate Classification Change, we expect to pay more corporate income taxes and may be required to make accelerated payments under the tax receivable agreement than under our prior structure. In addition, we may fail to realize some or all of the benefits of the Corporate Classification Change, or those benefits could take longer to materialize than expected, which could have a material and adverse effect on the trading price or the Class A Shares.
  • U.S. federal income tax reform could have uncertain effects.
  • Our structure is subject to other potential legislative, judicial or administrative changes and differing interpretations, possibly on a retroactive basis.
  • Tax gain or loss on disposition of our Class A Shares could be more or less than expected.
  • New rules regarding U.S. federal income tax liability arising from IRS audits of partnerships could adversely affect shareholders.
  • Our delivery of required tax information for periods prior to the Corporate Classification Change may be subject to delay, which may require Class A Shareholders to request an extension of the due date for their income tax returns.
  • Our ability to use net operating loss carryforwards to offset future taxable income may be subject to limitations.
Management Discussion
  • Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
  • This discussion contains forward-looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in “Part I—Item 1A. Risk Factors” of this report. Actual results may differ materially from those contained in any forward-looking statements. This MD&A should be read in conjunction with the consolidated financial statements and related notes included elsewhere in this annual report. An investment in our Class A Shares is not an investment in any of our funds.
  • As discussed in Note 3, on February 7, 2019, we completed the Recapitalization, which included a series of transactions that involved the reallocation of certain ownership interests in the Sculptor Operating Group to existing members of senior management, a “Distribution Holiday” on interests held by active and former executive managing directors, an amendment to the tax receivable agreement, a “Cash Sweep” to pay down the 2018 Term Loan and 2019 Preferred Units, and various other related transactions.
Content analysis ?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
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