Aurelius Funds Post 72% Gain as Assets Dip Below $1 Billion (1)

Aurelius Capital Management is shifting away from its longstanding flexible fund structure as its so-called drawdown funds outperform and total assets slip below $1 billion.

The hedge fund’s drawdown strategies, which focus on a small number of concentrated investments, have posted double-digit returns this year through August, according to a person with knowledge of the matter. One such series — the Long-Term Opportunities Funds — has gained 71.54% since its January 2022 launch, the person said.

The funds benefited from exposure to the stock and credit of energy companies including Transocean Ltd. and Shelf Drilling Ltd., as well as ...