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.