repaired bulge of about the same size
6 years ago on my H34. It was football shaped and about 1/2 way down the rudder.I ground out the bulge down to white foam- about 1/2 inch deep. Then I built it back up using several layers of fiberglass cloth and epoxy- I used the stitched together coarse stuff for the first layer of 2. Then I sanded then wrapped the whole rudder in 2 layers of close weave cloth and epoxy. Sanded again. I made sure I put 2 holes in the bottom to drain when the boat is hauled every winter. I plug them with 4200 or silicon- what ever I have handy.Seems to be holding fine, this was the 5th winter and looks fine this spring