WestSpring, formed in May this year by Ralph Nacey and Eric Phillipps, will seek to exploit market inefficiencies through a combined fundamental and quantitative approach to credit analysis, the firm said in a statement.

The amount of the investment was not disclosed by the firm.

Mr Nacey and Mr Phillipps have worked together since 2002, most recently at Brigadier Capital Management, the long-short credit-focused hedge fund, where Mr Nancy was chief investment officer and portfolio manager, and Mr Phillipps lead trader.

“ among a select group of managers that have a deep understanding of the inefficiencies surrounding asset backed security and credit valuations, and we expect this knowledge to allow the WestSpring team to continue to deliver impressive returns. We are confident in their ability to build a high quality alternative investment business and we believe this strategic relationship is a great opportunity for our investors,” said Clive Peggram, chief executive of FRM Capital Advisors.

WestSpring’s first fund is expected to be launched in September this year.

Earlier this month, FRM Capital Advisors announced a similar partnership with Connecticut-based hedge funds firm JD Capital Management, WealthBriefing reported.

FRM Capital Advisors is a division of Financial Risk Management, the global fund of hedge funds group, managing approximately $9 billion worldwide.