## KEY TAKEAWAYS
- Kyma Capital delivered 48% net returns to investors in 2025, marking the London-based hedge fund's strongest annual performance since inception in early 2019, according to Bloomberg.
- The fund's primary strategy centers on distressed debt investments—purchasing debt trading at significant discounts to par value from companies requiring debt restructuring or facing financial distress.
- Swiss pharmaceutical company Idorsia was the largest contributor to returns, with Kyma Capital positioned as one of the company's major creditors, indicating concentrated exposure to a single restructuring opportunity.
- Fund manager Akshay Shah, a former GSO Capital Partners investor, oversees the strategy that capitalizes on pricing dislocations and restructuring opportunities in leveraged companies.
- The 48% return substantially outpaced broader hedge fund performance, with global hedge fund assets reporting 36% growth in 2025, demonstrating the relative outperformance of the distressed debt strategy during the period.
## DETAILED SUMMARY
Kyma Capital, a London-based hedge fund managed by Akshay Shah, delivered 48% net returns to investors in 2025, according to Bloomberg sources with direct knowledge of the fund's performance. This result represents the fund's best annual performance since it commenced trading in early 2019, establishing a significant benchmark for the distressed debt investment strategy.
The fund's performance was driven primarily by concentrated positioning in distressed companies requiring debt restructuring. The largest single contributor to gains was a substantial creditor position in Idorsia, a Swiss pharmaceutical company. This investment exemplifies the fund's core strategy: acquiring debt instruments trading at steep discounts to face value from companies in financial distress, then generating returns through debt price appreciation, restructuring involvement, or workout gains.
Kyma Capital's distressed debt approach involves purchasing debt that typically trades at 40% or more below par value, enabling the fund to capture value through multiple vectors—including debt price recovery as company fundamentals improve, strategic influence during bankruptcy or restructuring processes, and debt-to-equity conversions that yield equity upside. Shah, who previously invested at GSO Capital Partners before establishing Kyma, has applied this specialist expertise to identify and execute distressed opportunities.
The 48% return substantially outperformed the broader hedge fund industry, which saw global assets expand 36% in 2025. This performance differential underscores both the distressed debt strategy's effectiveness during the measurement period and the concentrated risk profile inherent in such strategies, particularly given the fund's reliance on a single major position for outsized gains.
