Kyma Capital, the London-based hedge fund founded by former GSO Capital Partners investor Akshay Shah, delivered net returns of around 48% in 2025, driven by a series of successful distressed debt investments, according to a report by Bloomberg.
The report cites unnamed people familiar with the matter as revealing that the performance marked the firm’s strongest annual result since launching in 2019, and significantly outpaced the broader hedge fund industry, which returned an average of 12.5% last year, according to Hedge Fund Research.
Kyma’s gains were led by its investment in Swiss pharmaceutical company Idorsia, where the fund emerged as one of the company’s largest creditors. Bondholders agreed to extend debt maturities and inject additional financing, while notes were restructured with potential upside linked to experimental drug assets.
The fund also benefited from positions in Liquid Telecom, where Kyma acquired debt at distressed levels before prices recovered close to par following fresh equity injections from investors including Alphabet and Nvidia. Additional gains came from investments in French healthcare group Emeis, formerly Orpea, where discounted loans were later refinanced.
Kyma manages approximately $440m in assets and focuses on globally traded, mid-sized distressed capital structures, targeting situations where looming maturities and tight credit spreads create market dislocations.
