Balestra Capital Partners, the hedge fund firm launched by former Olympic fencer Jim Melcher, experienced its worst month in nearly four years.
The Wall Street Journal reported that New York-based Balestra lost more than 6% last month due to bullish bets Japanese stocks and against the yen. The fund is down about 9% in the first two months of this year, after returning 8% in 2013.
While many hedge funds made money in 2013 using the “long Nikkei, short yen” trade, this year saw a reversal of that trend. The article stated that the Nikkei fell 7% this year and the yen has strengthened against the dollar.
Melcher, who competed in the 1972 Olympics in Munich, founded Balestra in 1979. Balestra currently manages about $1.5 billion in assets, although it had about $2.2 billion in AuM at its peak.