Arkaim Advisors announces intention to launch Distressed and Credit Opportunities Fund

Arkaim Advisors, a specialist in emerging market corporate debt, has revealed plans to launch a new hedge fund targeting distressed and credit opportunities worldwide. The Distressed and Credit Opportunities Fund, which will emphasize emerging markets, aims to leverage Arkaim's extensive experience in high-yield corporate debt management.

Leveraging Expertise from the EM High Yield Corporate Debt Strategy

The new fund will be overseen by Chief Investment Officer Dimitry Griko, who has led Arkaim’s Emerging Markets High Yield Corporate Debt Fund since 2015. Griko and his five-member credit team will apply the same proven strategies that have made their existing fund a market leader, consistently outperforming other distressed hedge funds despite operating within strict liquidity and leverage limitations.

The fund’s investment approach will remain grounded in rigorous downside risk assessment and a focus on recovery value, critical components for managing distressed assets.

The removal of UCITS-related liquidity constraints will allow us to significantly improve performance and crystallise our expertise. The Distressed and Credit Opportunities Fund will leverage our proven investment strategies that have propelled our current fund to its leading position, while fully exploiting the opportunities for returns offered by distressed assets.

Dimitry Griko, CIO of Arkaim Advisors on fund's potential to capitalize on distressed asset opportunities.

Unique Blend of Liquidity and High Distress-Driven Returns

Unlike traditional distressed funds, which are often constrained by illiquidity, Arkaim's Distressed and Credit Opportunities Fund promises a relatively higher degree of liquidity while offering top-tier returns from distressed assets. Griko emphasized that, while the new fund will be less liquid than the current long-only UCITS fund, it will still outperform many comparable distressed funds, particularly those heavily involved in private debt.

While the nature of the distressed assets in the new fund's portfolio will inherently make it less liquid compared to our current fund, which has daily liquidity, it nevertheless promises to offer a higher degree of liquidity than comparable distressed funds, especially those involved with private debt. This unique combination of top rank distress-driven returns and enhanced liquidity is what sets our upcoming Fund apart in the market.

Dimitry Griko, CIO of Arkaim Advisors

The fund’s strategy will encompass a range of opportunities, including:

• Performing Distressed Debt: Offering significant cash yield, this segment will overlap with the more volatile portion of Arkaim’s current UCITS fund.
• Non-Performing Debt: Focused on maximization of recovery from defaulted debt.
• Credit Long/Short Positions: A strategy to capitalize on issuer selection, providing protection against market fluctuations and reducing fund performance volatility.

By combining high returns from distressed assets with enhanced liquidity, Arkaim's new fund aims to stand out in an increasingly competitive market.