Zurich-based Harcourt Investment Consulting has launched the Belmont (Lux) Recovery, a diversified fund of hedge funds dedicated to credit and distressed assets.

The fund comprises hedge funds engaging in the debt of companies which are stressed, in financial distress, undergoing bankruptcy or major restructurings. The fund’s managers are diversified by geography, style and industry sectors.

The aim is to offer a stable return profile while keeping correlation to equity and fixed income markets low. Risks are further minimised through careful bottom-up manager selection: the fund will invest in 15-20 managers.

Harcourt has been an active investor in the distressed space for a number of years, starting with the last distressed cycle, in 2002.