Balestra Capital is a hedge fund management institution founded by James Melcher. Balestra Capital manages Balestra Capital Partners, Balestra Income Partners, and Balestra Spectrum Partners. The fund uses a research intensive strategy to assess global macroeconomic trends and seeks to understand how macroeconomic trends will affect asset classes. Balestra Capital Partners was founded in 1991. Since its founding, the fund has yielded 23 percent a year compared to the 13 percent return of the S&P 500. Balestra Capital Partners gained about 200% in 2007 after it bet against the sub-prime and housing market.