US hedge fund Och-Ziff Capital Management, one of the world’s largest hedge funds and a bellwether for the industry, is redeploying cash and ramping up the level of risk in its portfolio, according to results filed on Tuesday.

The Och-Ziff funds – long known for their highly successful and conservative investment approach – now have around 14 per cent of their $22.6bn portfolio invested in structured credit products, up from 10 per cent last quarter, according to people close to the firm.