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.


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Strippers Accused Of Robbing Hedge-Fund Manager Face Jail

Oct 20 2014 | 9:20am ET

A group of alleged stripper-thieves—whose victims include a hedge-fund manager...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.