A hedge fund that was set up to play on a recovery in southern Europe is up over 90% this year.

Madrid-based Armada Capital's Armada Lynx fund, a roughly €10 million long/short equity fund, is up 93% this year through October 28 on the back of a concentrated portfolio of stock picks. This year's gains reverse the losses of 32% it suffered between its launch in September 2010 and the end of last year.