Emerging market corporate debt boutique Arkaim Advisors has announced its intention to launch a hedge fund, focused on global EM distressed and credit opportunities.
The Distressed and Credit Opportunities strategy will be managed by CIO Dimitry Griko (pictured), who has led Arkaim’s $450m EM High Yield Corporate Debt strategy since 2015.
He will be supported by the firm’s five-strong credit team.
The strategy will invest in performing distressed debt, non-performing debt, and credit long/short opportunities.
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Arkaim’s Emerging Markets Corporate High Yield Debt strategy is the top-performing fund out of the 237 strategies within the FO Fixed Interest – Emerging Markets sector over five years, according to FE FundInfo data.
Over that period, the fund has returned 53.76% compared to the sector average of 0.87%, while it is also a top-quartile performer over one and three years.
Griko said: “Reflecting on the success of our current long-only Emerging Markets High Yield Corporate Debt Fund, we expect that the removal of liquidity and other UCITS-related constraints will allow for significant improvement of performance and crystalise 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.”
He added that, while the nature of the distressed assets in the portfolio will inherently make it less liquid compared to Arkaim’s existing daily liquity fund, it aims to offer a higher degree of liquidity than comparable distressed strategies.
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