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and legal specialists; monitors counter party risk; provides internal checks and balances; provides external controls (written confirmation on all corporate reorganization activity, next-day confirmations on all international trades); and conducts exposure analysis with prime brokers and daily reconciliations of positions, market value, and cash balances. This unit has 18 members, including the chief financial officer.

As managing member, Och is responsible for everything yet he knows how to delegate. He is very involved in portfolio decisions and is focused on the investment process. He leads the arbitrage/restructuring unit and is part of their daily meeting as well as that of the European group. While he is not part of the daily meetings of the convertible/distressed group, he is part of the process before any positions of size are put on.

Och's typical day starts on the way to the office when he speaks to the London office. At 8:15 A.M., the morning meeting begins and lasts until about 9:30. During the day, he is in constant touch with London, the analysts, and the traders.

Och focuses on the capacity issue as well. He looks at the firm's capabilities, its business units, depth of these business units, and the ability to get the team to work together. He plans for maximum capability and capacity. A recent example was the adding of the distressed credit unit.

As the business grows and becomes more complex and global, Och sees a bifurcation taking place. The available universe for Och-Ziff is different from that of other companies. "They can't compete with us. Take, for example, cross-border situations and distressed convertibles. As the business becomes more complex, a bifurcation is taking place."

Going forward, is there an area the firm may focus on more? So far, Och has not invested much in Asia because trades are usually directional or involve a credit bet or sovereign credit. Within the next five years, he feels true event-driven arbitrage and restructuring opportunities will become more available in Asia.

Technology positions in the portfolio are not a large percentage. There is no intentional underweighting or overweighting.

Och does not invest in private equity. He also does not allocate to other hedge fund managers.

There are seven partners in the firm including Ziff Brothers Investments. All of the business heads as well as the chief financial officer are