Hedge Funds Performance

Balestra hurt by shorts, retains doomsday view


After several fantastic years, Jim Melcher’s Balestra Capital Partners has stumbled, and is down on the year for the first time since 2006.

Jim Melcher’s bearish views have cost his firm this year, as Balestra Capital Management’s fund is down 4.74% through September. Losses in the $1.5 billion Balestra Capital Partners, a global macro strategy, came from a variety of positions, namely shorts in equities, as well as puts on equities, euro, sterling and the yen. The AR Macro Index, meanwhile, is up 4.59% through September. “If the summer of 2010 ended with a whimper, a return to fall began with a bang,” Matt Luckett, co-portfolio manager and partner wrote in a September 2010 investor letter. “September was marked by a