Balestra Capital Partners, L.P. was positive +0.01% net during the month of February and is positive +0.78% net YTD as of February 29, 2012. As of March 1st, strategy assets were $1.94B USD and Balestra Capital, Ltd. managed a total of $2.16B USD.
The fund was down 4.78% for 2011. The fund has a superb long term track record with a 24% annual return since 1999 as we recently noted.
The fund is slightly net short, with a long position in gold as a hedge against currency devaluations. Equity positions are neutral, and most of the long positions are in mortgage REITs and utilities.
Shorts are held in the yen, Australian dollar, and Euro versus the dollar.
The fund manager is cautious about the recent rise in equity prices. He noted the improving economic conditions but questions remain about whether the recovery is sell sustaining. If the Government cut back now the economy would collapse resulting in a severe recession.
Additionally many questions remain concerning the entire world economy. What happens in Europe, China, the Middle East, etc. will have major impacts on American economic, political, and social outcomes. The world is changing rapidly. The old rules that so many investors rely upon may no longer apply the way they did during the great growth years after World War II.