Geneva-based fund of hedge funds Peak Partners has launched a new vehicle focusing on credit strategies.

The Mont Blanc Summit fund invests in credit, distressed and asset-based lending strategies. In its first three months of trading, the fund, which manages US$57 million, returned 1.95%. It is currently offered in U.S. dollar, euro and Swiss francs share classes.

“Most hedge fund managers pursue trading-based strategies that seek to generate absolute returns in every type of market,” said Robert Seiler, portfolio manager. “However, experience shows that it is difficult to discriminate between skill and luck and that even talented traders experience difficult times that can produce significant drawdowns for investors. The current credit crunch environment is ideal to launch such a product as it provides the underlying managers with very attractive deals—which have the potential to generate outsized returns over the coming years.”