Dan Gropper’s Carronade Returns 12% Boosted by Talen, Lumen Bets

Multi-strategy credit hedge fund Carronade Capital Management gained 12.3% last year, buoyed by bets on troubled firms including nuclear energy producer Talen Energy Corp., airline parent Abra Group and Lumen Technologies Inc., according to an investor letter seen by Bloomberg.

The $2.2 billion fund, run by Aurelius and Elliott veteran Dan Gropper, benefited from Talen’s post-bankruptcy rebound after it struck a deal to sell a data-center campus and supply energy to Amazon Web Services. While the fund reduced its Talen wager “as a matter of portfolio risk management,” the company remains a meaningful exposure for Carronade, according ...