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Arini Capital Management flagship fund drops about 8% in July

The decline followed losses on debt tied to Aston Martin Lagonda after a new £550m financing deal with HPS Investment Partners effectively bypassed existing bondholders.

Reported · Written up by our desk · Hedge Funds

Hamza Lemssouguer’s Arini Capital Management saw its flagship hedge fund fall about 8% in July, according to a Bloomberg-cited report relayed by Hedgeweek and based on people familiar with the results.

The losses were linked to several credit positions turning against the London-based manager, including Arini’s exposure to debt associated with Aston Martin Lagonda. The company secured a £550m ($750m) financing package with HPS Investment Partners last month to strengthen liquidity, a transaction that effectively bypassed existing bondholders, including a creditor group led by Arini, sending the affected debt lower.

Arini also took losses on equity tranches of credit-default swaps designed to protect against losses on Virgin Media debt. Hedgeweek said the July drop marked a reversal for Lemssouguer, a well known distressed and special-situations credit investor whose strategy relies on concentrated, high-conviction trades.

Despite a muted start to 2026, with the flagship fund up 1.37% through June, the July loss erased much of that progress. Hedgeweek added that the broader European leveraged loan market was broadly flat in July, returning 0.09%, while Arini’s master fund was up about 3.5% for August through Thursday and its Credit Opportunities Fund was up 12.5% for the year.

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