London-based credit hedge fund Arini Capital Management has suffered a sharp reversal in performance, with its flagship strategy down almost 16% this year after a series of losses on debt linked to financially troubled companies, according to a report by the Financial Times.The report cites unnamed people familiar with the returns as revealing that Arini’s master fund fell an estimated 7.6% in September, taking its year-to-date decline to 15.7%. The fund, which accounts for around $7.3bn of Arini’s approximately $22bn in assets, has now posted three consecutive monthly losses.The strategy fell by almost 8% in July and roughly 1% in August, extending a difficult period for the credit-focused hedge fund. Final September performance figures are expected to be determined later this month.The losses come despite Arini raising $1.5bn for its flagship fund in recent weeks, including $425m at the beginning of October. The remainder of the new capital is expected to be allocated by early 2027.Arini has built a reputation for making concentrated investments in the debt of companies facing financial difficulties, often using leverage to amplify returns. The firm also trades credit-default swaps, allowing it to take positions on the likelihood of companies defaulting on their obligations.Some of its recent investments have come under significant pressure. Arini has substantial exposure to the debt of telecommunications companies Altice International and Brightspeed, while its holdings of Aston Martin bonds have also been hit after the luxury-car manufacturer transferred some valuable assets beyond the direct reach of creditors.Altice International’s senior bonds are trading at less than half their face value as negotiations continue over a potential restructuring of the company’s debt. Arini is among a group of senior creditors seeking terms that would give them a preferential recovery compared with other lenders.Brightspeed, the Apollo-backed US broadband provider, has also seen its bonds and loans fall sharply as it begins discussions with creditors over how to address a debt burden of around $10bn.The strategy’s concentrated approach has previously produced substantial gains. Investors earned a 73% return from Arini’s main hedge fund during its first four years, although the strategy has also experienced significant drawdowns before recovering as concerns surrounding individual borrowers eased.
| # | Наименование новости | Тональность | Информативность | Дата публикации |
|---|---|---|---|---|
| 1 | Arini raises $1.5bn for credit strategy despite flagship fund loss | 0 | 5.9 | 06-10-2026 |
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