January was a tough month for hedge fund managers across the board, which makes Balestra Capital Partners return that much more impressive.
Last month, James Melchers $450 million global macro fund climbed 9.7%, following an astonishing gain of almost 200% earned last year by shorting subprime. By comparison, the Absolute Return Macro Index returned a paltry 0.08%, and the Composite Index experienced its third worst month since 1998.
The funds returns were lifted, in part, by continued profit-taking on short subprime positions. Melcher has now sold almost all of the funds credit default swaps on collateralized debt obligations. His negative