Arini Capital Management and Sona Asset Management's main hedge funds suffered significant losses in October, as a sharp decline in the junk-debt market impacted their holdings. London-based Arini's master fund lost 6.9% in the first half of October, extending its 2026 losses to 15.7% through September. Meanwhile, the Sona Master Fund dropped about 3.1% in the same two-week period, erasing its 2026 gains and marking the firm's worst month since its launch a decade ago.
The pain is concentrated among companies with the weakest credit ratings, with a Bloomberg index tracking CCC-rated European borrowers hitting its highest level since March 2020. Arini and Sona are among Europe's fastest-growing hedge funds, each managing over $20 billion in assets. Arini holds major positions in Altice International and Aston Martin Lagonda, while Sona experienced losses on Virgin Media O2 and Paramount Skydance Corp. debt.
Industry experts note the severity of the selloff, with Ivelina Green of Pearlstone Alternative stating that the credit pain happened over a short period and remains underappreciated. Diameter Capital Partners' flagship fund also flipped to negative returns this month. Both Arini and Sona declined to comment on the figures.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing