When Lehman Brothers declared bankruptcy in September 2008 and the financial system hovered on the brink of collapse, many startups decided to postpone the launch of their funds. Steven Hornstein, former high-yield trader at Donaldson, Lufkin & Jenrette, however, was not put off by crashing markets. He rolled out Global Credit Advisers, launching the firm's debut fund in October 2008.
The flagship GCA Credit Opportunities Fund, which focuses on high-yield and corporate distressed debt,...