Key Takeaways
- • Arkaim Advisors, a specialist in emerging market corporate debt, announced plans to launch a new Distressed and Credit Opportunities Fund with a global mandate and emphasis on emerging markets.
- • The fund will be led by Chief Investment Officer Dimitry Griko, who has managed Arkaim's Emerging Markets High Yield Corporate Debt Fund since 2015, supported by a five-member credit team with a track record of outperforming comparable distressed hedge funds.
- • Removal of UCITS-related liquidity constraints will enable the new fund to improve performance while maintaining higher liquidity than traditional distressed funds, addressing a structural limitation of the existing UCITS-regulated strategy.
- • The fund will apply proven investment methodologies centered on rigorous downside risk assessment and recovery value analysis, with availability in both US dollars and euros across founder and ordinary share classes.
Summary
Arkaim Advisors has announced its intention to launch a Distressed and Credit Opportunities Fund, marking an expansion of the firm's existing emerging market corporate debt capabilities. The new hedge fund will target distressed and credit opportunities globally, with a particular emphasis on emerging markets, leveraging the firm's established expertise in high-yield corporate debt management.
The fund will be managed by Dimitry Griko, Arkaim's Chief Investment Officer, who has led the firm's flagship Emerging Markets High Yield Corporate Debt Fund since 2015. Griko will oversee a five-member credit team whose track record demonstrates consistent outperformance relative to other distressed hedge funds despite operating under UCITS-imposed liquidity and leverage constraints. According to Griko, the new structure will enable material performance improvements: "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."
A key differentiator of the new fund is its intended balance between liquidity and return potential. Unlike traditional distressed funds typically constrained by asset illiquidity, Arkaim's vehicle is designed to offer relatively higher liquidity while maintaining exposure to distressed asset returns. The fund's investment approach remains anchored in rigorous downside risk assessment and recovery value analysis—disciplines that have proven effective in the firm's existing UCITS strategy. The fund will be denominated in US dollars and euros, with both founder and ordinary share classes available to investors.
The fund will be managed by Dimitry Griko, Arkaim's Chief Investment Officer, who has led the firm's flagship Emerging Markets High Yield Corporate Debt Fund since 2015. Griko will oversee a five-member credit team whose track record demonstrates consistent outperformance relative to other distressed hedge funds despite operating under UCITS-imposed liquidity and leverage constraints. According to Griko, the new structure will enable material performance improvements: "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."
A key differentiator of the new fund is its intended balance between liquidity and return potential. Unlike traditional distressed funds typically constrained by asset illiquidity, Arkaim's vehicle is designed to offer relatively higher liquidity while maintaining exposure to distressed asset returns. The fund's investment approach remains anchored in rigorous downside risk assessment and recovery value analysis—disciplines that have proven effective in the firm's existing UCITS strategy. The fund will be denominated in US dollars and euros, with both founder and ordinary share classes available to investors.
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