London-based Pelham Capital is plotting a return to the hedge fund arena with a new vehicle, seeking to rebuild after a challenging period that saw the firm’s assets shrink from $4.5bn in 2020 to around $1bn by 2023, according to a report by the Financial Times.

The fund, which expected to launch under the name Bayes Hill in May or June, will be led by Kayvan Larizadeh, formerly Pelham’s deputy, with founder Ross Turner committing $100m of his own capital and agreeing not to withdraw it for three years. Turner will have no formal role in managing the fund or in investor fundraising.

Pelham’s previous master fund suffered heavy losses in 2021 and 2022, partly due to overexposure to growth-oriented names and an overly broad portfolio, leading to a long-term annualised return of roughly 5% since the fund’s 2007 inception. A rebound in late 2025, driven by positions in Hilton, Siemens Energy, and Safran, helped the firm recoup some losses and exceed its high-water mark, unlocking performance fees.

The new fund will focus on a more concentrated strategy, targeting around 15 high-quality companies alongside smaller emerging names, aiming to combine proven compounders with potential growth stories. Asset targets are set at $2bn–$3bn, reflecting a desire to remain nimble and avoid liquidity pressures from outsized positions.