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Arini Capital faces losses as Aston Martin and Altice bets sour
The $22bn manager’s flagship master fund is down more than 8% year to date after July losses of almost 8% and near 1% declines in August.
London-based credit hedge fund Arini Capital Management has had a difficult year, with concentrated, leveraged bets in distressed European companies weighing on its flagship strategy, according to a report cited by Hedgeweek.
The report said Arini’s $22bn master fund is down more than 8% since the start of the year, following losses of almost 8% in July and close to 1% in August, a sharp reversal from prior performance.
Arini’s approach typically involves taking sizeable positions in distressed and high-yield debt and becoming a major creditor in financially pressured situations. In this year’s downturn, Altice International was identified as the largest single-name source of losses in July, after its bonds fell when valuable assets were moved beyond collateral available to creditors.
The fund was also hurt by developments at Aston Martin. Hedgeweek’s report said the carmaker transferred valuable naming and branding rights outside the reach of creditors owed more than £1.3 billion, sending its bonds sharply lower. Still, the manager has previously shown it can recover from large drawdowns, and performance was reported to be better in some other strategies this year, including a roughly 12% year-to-date gain in its credit opportunities fund and about a 7% return in direct lending.