Balance Asset Management, the hedge fund firm started earlier this year by two ex-Bear Stearns bankers, has received a "significant long-term investment" from RMF, one of the world's largest fund of hedge fund managers.

The move is a coup for Balance founders Steven Audi and Kevin Robik, as RMF is a weighty industry player with $19.4bn (€16.3bn) under management. Balance launched its fund in January with a $2bn capacity. According to a hedge fund source, the fund is up 6% for the year so far.