Arini Flagship Fund’s Year-to-Date Loss Widens to 32% as It Sells Holdings

Arini Capital Management’s flagship hedge fund’s year-to-date loss widened to 32% by the final days of October, and it sold some holdings. According to Sina Finance, citing a letter to investors, the fund, which focuses on high-yield debt, lost 19.7% in October amid continued weakness in credit markets. Managed by Hamza Lemssouguer, the fund reassessed its five largest positions, which together represented about two-thirds of its net asset value. The fund received $389 million in inflows over the past week, part of its $1.5 billion fundraising. The letter said the fund had underestimated dislocations in the CCC-rated bond market, which accounted for most of its exposure and led to strong co-movement among portfolio positions. The fund cut some positions and reduced total leverage to its lowest level since early 2022, while planning to further diversify its portfolio.