UK-based Stenham Asset Management has launched two new fund of hedge funds called Stenham Credit Opportunities and Stenham Healthcare.

Both funds have been running since 1 January and have had positive returns, the firm said in a statement. Stenham Credit Opportunities was launched with $21 million and has returned 3.44 per cent since inception.

The fund targets eight to 12 per cent annualised returns and invests in a concentrated portfolio of six to 10 credit managers.

It invests across a full spectrum of credit strategies, including best-in-class managers in credit long/short, structured credit and distressed debt strategies, the firm said.

"The fund is focused on managers who can actively short and benefit from the asymmetry in credit. It will take more directional exposure in structured credit and selected distressed investments, including liquidations as well as opportunities from bank deleveraging," said Tim Beck, senior research analyst and fund lead for Stenham Credit Opportunities.

Stenham Healthcare was launched with $15 million and has returned 7.48 per cent since its inception. The fund invests in a portfolio of six to 10 credit managers focused on the healthcare sector and targets returns above ten per cent.

"Valuations are still at historically low levels. Our portfolio attempts to combine specialist healthcare managers with complementary skills in a way that should provide outsized returns and reduced volatility relative to the overall healthcare indices," said Dominique Montier, senior executive and fund lead for Stenham Healthcare.

Stenham Asset Management has clients located primarily in the UK, the Channel Islands, the Caribbean, Europe, South Africa, Latin America, Japan, Asia-Pacific and the Middle East. The firm had $2.1 billion in total assets in February 2013.