Waypoint Opens FX Global Program

Jun 5 2007 | 10:40am ET

Huntington, N.Y.-based Waypoint Capital Management is opening its FX Global Yield program to outside investors. The program launched with proprietary capital in November, and has returned 13.82% net of fee since then.

Robert Calabretta, Waypoint’s founder, said he wanted to wait at least six months before opening the product because “most people want to see six months of trading before they invest in anything.” The program is also in the process of joining the Deutsche Bank Global Markets FXSelect Currency Managers platform.

FX Global Yield attempts to establish positions in regionally-hedged currency pairs utilizing proprietary yield, technical and fundamental inputs, according to the firm’s disclosure documents. It seeks to profit from both the carry and spot appreciation of higher yielding currencies and invests in emerging market and developed market currencies.

The program charges 2% for management and 20% for performance, with a $1 million minimum investment requirement.

Waypoint’s flagship product is its Diversified program, which systematically trades a broad mix of futures contracts, currencies, long- and short-term fixed-income instruments, equity indices and physical commodities. The program, which began trading in December 2002 and manages some $30 million, was up an estimated 12.55% last month, bringing its year-to-date returns to an estimated 22.32%.
“We have about 20% of our allocation to emerging market FX so we’re really benefiting from the fact that India and some other countries like Columbia and Brazil stopped intervening in their currencies to push it down,” said Calabretta. “These currencies have rallied pretty strongly. We’ve also benefited from surprising strength in the euro area, so higher interest rates in Europe have also helped us.”

Going forward, Calabretta says he is sticking with his current bets because “currencies are going to remain relatively stable but short and long rates in Europe and the United States will increase, and we think rates can go a lot higher than markets forecast right now.”

Calabretta, a former head trader for Deutsche Bank’s proprietary technical trading department, founded Waypoint in January 2002.

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