Investors Toss Drowning Blue River A Life Preserver

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.