Investors Toss Drowning Blue River A Life Preserver

Mar 4 2008 | 1:00am ET

Investors have extended a $100 million lifeline to a Colorado hedge fund battered by bad bets on municipal bonds last week.

Blue River Asset Management raised the new funds from both exiting and new investors in an effort to stave off collapse. The firm was forced into a fire sale of assets after its Muni Bond Opportunity Universal Unit Trust suffered big losses in the municipal bond market late last week; some of the new money will be used to buy the assets the firm was forced to sell. Nor, apparently, is the firm done raising new cash.

Blue River was betting on a rise in long-date munis, but last week saw prices fall and spreads soar to record levels, The Wall Street Journal reports.

JPMorgan Chase said it help orchestrate the bailout, and that it was working to help Blue River raise more new money.


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...