Any thoughts/color on Arini?
One of the faster growing credit HFs launched over the last few years, curious if anyone has color on performance/culture/comp/etc across the London/NY offices
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Also curious
Great place all around
Hamza seems cool...
Proceed with caution
Care to elaborate a bit? I have heard mostly positive things and performance and growth is stellar, but keen to understand your POV
Why?
Told you.
These guys take bananas risk from what I've heard. Has been working out so far though...
Risk appetite is unconstrained- as the user said above, proceed with caution
Totally disagree with above comments. The guys on this thread think too much like CLO investors and not enough like equity investors. Investing in credit like it’s equity — for convexity and NOT for yield or carry — is what credit hedge funds should be doing.
Arini returns have been amazing, including in 2022 when they were up when every other fund was down. So at the very least they must be putting on factor hedges that work. I think they are up low double digits YTD 2025.
What some more junior guys such as others positing here don’t see is that Arini swing for high convexity bets that often can and do offset themselves. Sfrfp holdco worked, Argid uns clearly did not — though who knows with some volume recovery in US and cost takeout maybe the reorg equity for Argid will work out.
Tldr it’s an incredible opportunity to work there and think too many guys here work in performing/CLO/liquid long short to really understand their MO.
Hi Hamza
I am a bit surprised they are not in thames... guess not enough convexity in the class b?
for real…the class b is essentially all equity return
Would you mind touching on what you said about “investing in credit like it’s equity, for convexity”. What exactly does this strategy look like in performing and stressed HY?
Interesting post MDiHF. Dm me if you'd like to expand on it.
it aged perfectly
Nomination for WSO hall of fame posts
Hahahahahahahaha.
Kind regards.
Is the NY office a good place to be, or is it really centered around London? Also noticed a lot of non-targets in their NYC office. Nothing against it but almost seems like they select for it.
Most credit hedge funds that are on the leaner side self select for intelligent, proactive, and for mid-senior level well networked, people. Prestige or ranking of school plays little role if any - I don’t even know where many of my close relationships on the buyside/other brand name funds went to school, and it’s completely irrelevant in my view.
So If you worked on a good sell side distressed/HY desk or solid banking group and/or at a reputable PE/ credit buyside seat, I don’t think school even scratches people’s during hiring. Exception being if you went to the same school as guy driving the hiring decision and that guy is an involved alumni (donor, etc), in which case it’s a clear positive.
Who is the HH for them?
See for yourself what they've done in Kem One - too much AUM too quick not enough ideas
I don’t know about yall, but most of Arinis returns have been from large successful LME trades. I know they are here to stay, but do I think it takes a smart distressed debt fund to get the outcomes they get? Not really, they’re just ballsy and risk on when they go in, get size and trade out. That can make equity like returns per what the MD said before but that’s not an equity style approach to diligence or actually finding value. Long story short, don’t what future holds for them. Going into CLO and private credit which means he’s trying to leverage the firms name to create more predictable business lines.
And look at Lowell....
Sure but look at sats, claritev, sfr, lumen. I’m sure they made a killing in a variety of other stuff, probably euro real estate in 23/4.
Lowell and many small fry stuff has gone against them — no doubt there. As have brightspeed, astound, ardagh on larger cap names.
But regardless they are up low 20% net now YTD 2025 so I think finding stuff they lost $ on is irrelevant. Whats clear is that they sized up their winners so as to offset their losers
Their book has much more dispersion of outcomes than most in credit and much more concentration. The same could be said of so many equity SM books. For every SK Hynix or Vistra you’ll find a UNH or a RH or a Charter…
Knowing guys there who are more junior to many who are quite senior what I’ll say is they generally do decent fundamental work, have good firm infrastructure, and are growing fast. If I were younger and not already in a solid seat, I wouldn’t forgoe the opportunity to interview or work there.
The expansion into private credit / clo should be expected…everyone from silverpoint to diameter has done it because guys who start these places want to eventually sell their firms to Apollo or Brookfield or whomever, and only way to do that is by scaling fee revenue.
.
Nothing but winners
Bumping this up - how is it looking these days ? :D
-26%
Hahahahahaha
can anyone provide some flavour on the comp level?
Anyone seen a performance update?
Lol no, no update since July or whatever....
…Wonder if their media budget has been wiped out
Know many people there, old and new faces. Dynamic and rewarding place to work, high vol / sharpe for a credit investing and rewriting the playbook on a number of situs / mandates. Hit rate is high and the bag of winners and losers is speculative for now, though a few stupid mistakes in the latter camp: Kemone; Reno d Medici; Ardagh; Consolis; Altice (Let’s see) but winners on the other side too as others have mentioned here.
If you are young, hungry and smart then a great place to be. If you want to be Associate #69 or VP #96 at BlackCuck Capital churning out process and memos for a 10-15% yoy pay raise then not the place to be.
Classic distressed trader swing - when numbers up I’m smart, when numbers down just swing. No wonder fewer and fewer jobs / shops like that.
Big swings massive respect for the ballsiness - like to see how they turn around Aston
Down 16% as of October 2nd and that's before the latest 15 points gap down in VMED.
Everyone good? Credit investing with equity approach?
-22% YTD
Heard they blowing up? Whats going on
They're blowing up
Got more info / insight?
Anyone have any color on their altice size? Find that one so strange tbh even we lowly equity investors all know drahi is not to be trusted. To make drahi a huge position in your fund is just asking for it.
Seems like ultimate outcome here will heavily depend now on LP terms and just how much of the book is the illiquid stuff... wouldn't be surprising at all to see news they are gating redemptions v soon as there is always a tipping point in such situations
Well their bet in Altice France worked. So probably think they can repeat it here? Or they are large enough to do something non-linear WITH drahi and not AGAINST him
Not so bad, would guess a 10-15% position using their marks so roughly 5% if had to MTM
if nobody pulls out arini is fine
https://www.wsj.com/finance/investing/hedge-fund-arini-offloads-800-million-in-debt-as-losses-deepen-2d24626c?mod=mhp
Longer list of names. There's a rumor going around some names on that list aren't marked to market yet.
"Arini executives said the firm outperforms because it uses a complex hedging tool meant to protect it from big losses. The model hasn't been tested in a prolonged market downturn."
Anyone have any colour on the contribution from this hedging tool?
Would expect like most strategies the hedging is a market downturn type tool. Big issue with that type of hedging that market isn’t actually going through a real downturn other than in CCCs which have gotten hit by a bus and is more a decompressionary move.
Give it 3-4 months before a WSJ article on Citadel hiring Arini's Gavin Yates to perform another situational awareness-like snipe at Arini's positions. Word on the street is every reputable credit shops are circling around Hamza's positions to take him out.
Sorry, v little credit knowledge here. How would they do this?
Illiquid market, if street knows his positions everyone will be wary of. Not like equities where can get out easily, credit is a differtent beast
Wait to buy his position at ridiculous low prices (and not before) when he is margin called and a forced seller. So refuse to trade with them because you know they are in trouble and take them out for pennies on the dollar.
In normal circumstances, they would transact at a higher price as you wouldn't expect them to be forced to sell to cover margin calls.
Because the market is so illiquid you only have a few participants that need to coordinate (not even explicitly) for that to work. In a market with more liquidity someone at the margin would be willing to transact at a higher price (closer to the "true" value of the holdings).
Is Sona any different?
any updates
Heard they’re cooked - not sure how you come back from this
Giga cooked it seems
Don’t wanna kick someone whilst they’re down, but down 32% through October is heroically bad
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