A sidestep account run by a scion of New York real
estate dynasty is returning income to outward investors amid
bad performance, according to papers seen by Business
The account is O-Cap Management, a tiny New York-based sidestep fund
managed by Michael Olshan.
Olshan is a son of Morton Olshan, a authority and owners of
blurb genuine estate hulk Olshan Properties, and is a former
handling executive during sidestep account Jana Partners.
Launched during a Great Recession, O-Cap’s primary account lost
17.7% after fees from Sep 2009 through the finish of June
this year. The SP 500 was adult 161% over a same
O-Cap mislaid 4.3% in a second entertain this year and was down
8.03% year-to-date in 2017.
Michael Olshan did not respond to calls and emails, and the
fund’s arch financial officer, Lloyd Jagai, hung adult on a
Business Insider contributor when reached by phone.
In a Sep minute to clients, O-Cap blamed a waste on poor
marketplace conditions, indicating to a arise of pacifist investment
vehicles like ETFs, a jagged share of FAANG tech
bonds in a SP 500’s gains, and an altogether miss of public
zone opportunities. The association was heavily unprotected to
energy, a gamble that took a strike amid oil and gas attention turmoil,
losing 8.45% in a initial half of this year.
“We do not feel today’s marketplace is abundant with appealing buying
opportunities in a core sectors in that we focus,” Michael
Olshan wrote in a customer letter. “In a opinion, market
participants are holding on an augmenting volume of risk for lower
lapse expectations, and are doing so late in a cycle that has
been characterized by clever reflation in item prices and public
“Today’s open equity markets can be tangible by too most capital
chasing a scanty set of bargains,” Olshan added. “The outcome is
increasing risk holding for reduce and reduce return
The account continues to conduct income for Olshan and his family, and
pronounced it sees some-more opportunities in private association investments.
O-Cap Management is a tiny fund.
Documents filed with a Securities and Exchange Commission
contend a organisation hold $14.1 million in sum resources in a primary
account during a finish of March, 56% of that belonged to management.
Management owned 5% of a smaller fund, that had $5.8 million
Olshan comes from a prestigious and successful New York business
family, and O-Cap during one indicate had a sights set on
lifting as most as $1 billion, according to trade publication
Morton Olshan began shopping genuine estate properties in a 1950s
and amassed an huge portfolio of properties in Manhattan and
beyond. Today, Olshan Properties owns and manages “14,000
units of multifamily, 10 million block feet of retail, 3 million
block feet of bureau and 1,447 hotel bedrooms located opposite 11
states,” according to the company’s
Morton Olshan became a minority owners of a New York Yankees in
2000 and stays a member of a club’s house of
directors. He also serves as a member of The
President’s Council of a New York Public Library.
Andrea Olshan, Morton’s daughter and Michael’s older sister,
runs a family genuine estate business today.