European opportunistic credit manager Chepstow Lane Capital achieved net returns of 13.24% in 2024, according to a report by Bloomberg News citing an investor letter.

Led by founder and former Soros Fund Management Portfolio Manager Agata Dornan, the fund had posted a 13.07% return in 2023, the letter noted.

Dornan launched Chepstow Lane Capital in 2022 in partnership with investment platform Forester Capital. The fund specialises in overlooked opportunities within the European corporate and financial credit markets and is one of the few hedge funds globally led by a female PM.

The year proved favourable for credit-focused asset managers, as many borrowers sought to refinance their debt amid supportive market conditions. For instance, Sona Asset Management, established by John Aylward, delivered an 18.8% return in its flagship fund, marking its fifth consecutive year of double-digit gains, according to another investor letter reviewed by Bloomberg.

Similarly, Andromeda Capital, led by Alberto Gallo, reported a 12% return, according to an anonymous source.

Chepstow Lane Capital also revealed that it closed its Founders Share Class to new investors in January, reaching $200m in commitments, with an additional $100m in reserved capacity. The fund has a total capacity to manage up to $1.5bn.

The firm recently expanded its investment team by hiring two new professionals: Luca Torchio, formerly of Intermediate Capital Group, and Jahanzeb Hassan, previously with Elliott Investment Management.