Waypoint Capital Management waypoint.altavra.com

Waypoint Capital Management offers the following trading programs to clients deemed to be Qualified Eligible Persons ("QEP") as defined in CFTC Regulation 4.7.

Diversified Futures Program

Waypoint Capital Management relies on technical rather than fundamental information as the basis for its trading decisions in the Diversified Program. The primary objective of the trading program is to identify and exploit medium and long-term price trends in futures and currency markets. The Diversified Futures Program is designed to analyze mathematically recent trading characteristics of each market and compare such characteristics to the historical trading pattern of the particular market. The program utilizes proprietary trend identification and risk management strategies that are intended to enable it to benefit from sustained price trends with the goal of protecting the account from high levels of risk and volatility. Over the course of a long-term trend, times exist when the potential reward of a market appears to be outweighed by the risk. In such circumstances some of Waypoint Waypoint Capital Management’s trading programs may exit the position prior to the end of the trend. While the result may be that program is out of the market during a significant portion of a trend, Waypoint Capital Management expects that the accompanying decrease in volatility of performance is adequate reward.

Diversified Futures 2XL Program

The Diversified Futures 2XL Program is identical to the Diversified Futures Program but trades at twice the amount of leverage as does the Diversified Futures Program.

FX Global Yield Program

The FX Global Yield Program is an actively managed currency trading program. Waypoint Capital Management relies on both fundamental and technical information as the basis for its trading decisions in the FX Global Yield Program. The primary objective of the trading program is to position in the most attractive regionally hedged currency pairs utilizing a proprietary matrix of yield, fundamental, and technical inputs. The program attempts to profit from both carry and spot appreciation of higher yielding currencies in such a way that the portfolio is protected from periods of adverse movements in spot levels currency markets. The FX Global Yield Program currently trades proprietary funds only.

MARKET RISKS ARE INHERENT IN ALL TRADING METHODS TO VARYING DEGREES. THE TRADING METHOD OF WAYPOINT IS SPECULATIVE AND ENTAILS SUBSTANTIAL RISKS. NO ASSURANCES CAN BE GIVEN THAT WAYPOINT WILL ACHIEVE ITS INVESTMENT OBJECTIVES. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.  THE RISK OF LOSS IN TRADING FUTURES, OPTIONS AND OFF-EXCHANGE FOREX CAN BE SUBSTANTIAL.

Trading Policy

While Waypoint Capital Management normally follows a disciplined systematic approach to trading, on occasion it may override the signals generated by the programs. This may take the form of a decision not to trade a certain futures contract or reducing the number of contracts traded and is based on such factors as past market volatility, amount of risk, potential return and margin requirements. Such modifications may not necessarily be beneficial to the results achieved.

Risk Management and Leverage

Waypoint Capital Management applies a portfolio management strategy to measure and manage overall portfolio risk. This strategy includes portfolio structure, capital allocation, and risk limitation. One objective of portfolio management is to determine periods of relatively high and low portfolio risk, and when such points are reached Waypoint Capital Management may reduce or increase position size accordingly. It is possible, however, that during periods of reduction in position size the return that would have been realized had the account been fully invested would be reduced. Waypoint Capital Management estimates that aggregate margin for all positions generally will range between 15% and 40% of an account’s net assets with an average of approximately 25% over time. From time to time, margin commitments may be above or below these ranges. In some instances, due to the lack of volume in a particular market, an account’s position will be limited to the number of contracts that Waypoint Capital Management believes can be bought or sold without undue adverse price movement at the time of execution. In such cases the account’s portfolio would be influenced by liquidity factors to the extent that its positions in such markets might be substantially smaller than its positions in other markets which appear to offer greater liquidity.

Continuing Research

Proprietary research is conducted on an ongoing basis to refine Waypoint Capital Management’s trading strategies and to attempt to improve risk-adjusted returns. Waypoint Capital Management expects to develop additional trading programs and to modify existing programs and to employ such programs for some or all client accounts.

Allocation of Orders

Waypoint Capital Management may use "bunched" orders to trade client accounts. A bunched order combines trading orders of client accounts when the orders are called into a brokerage firm. Waypoint Capital Management will only use bunch orders for multiple accounts if the order is for like trades/transactions (ie. the same commodity and month of a futures contract or for the same forward contract, date and currency etc). Waypoint Capital Management shall instruct the brokerage firm to use a price allocation procedure based on brokerage account numbers to allocate the trades amongst the accounts included in the bunched order in the following manner:

.: All accounts are listed using the account numbers of a brokerage firm.

.: Trades are assigned with the highest account number on the list receiving the highest buy and the highest sell, and the next highest account number on the list receiving the next highest buy and the next highest sell and so on.

.: The lowest account number on the list receives the lowest buy and the lowest sell and the next lowest account number on the list receives the next lowest buy and the next lowest sell and so on.

.: The actual amount of contracts/positions that are allocated to each account comes from instructions from Waypoint Capital Management, not the brokerage firm.

Waypoint Capital Management shall, at least quarterly, analyze the performance of its accounts to ensure that its allocation procedures have been fair and equitable, i.e., customers in the same trading program achieve similar results over time. Waypoint Capital Management shall document its analysis.

Waypoint Capital Management will make the following information available to customers upon request: (1) the general nature of the allocation methodology; (2) a summary of composite data sufficient for a customer to compare his results with those of other relevant customers and any account in which the account manager has an interest; and (3) an indication whether any account in which the account manager has an interest can be included with customer accounts in bunched orders. Waypoint Capital Management is confident that the allocation method currently in use is a fair and equitable one.

Robert E. Calabretta, age 42, is the President, Director and sole owner of Waypoint Capital Management LLC. Robert Calabretta is listed with the CFTC as a principal of Waypoint Capital Management and also registered as an associated person effective April 2, 2002 and is an associate member of the NFA. Waypoint Capital Management currently manages approximately $50 million for institutional Clients in two core trading strategies. Robert Calabretta has been involved as a trader in alternative investments for over 15 years. From March 31, 2000, until he formed Waypoint Capital Management in January 2002, Robert Calabretta was a private investor. From June 1997 until March 2000, Robert Calabretta was employed by Deutsche Bank as Head Trader of the Proprietary Technical Trading Department and had a major role in the ongoing research and development of Deutsche Bank’s technical and quantitative futures and currency trading programs. Robert Calabretta’s team developed and successfully implemented technical trading programs to which Deutsche Bank allocated over $150 million in proprietary capital. Robert Calabretta also served as a Director and an Executive Vice President of DB Advisors LLC, a registered CTA and CPO established in 1999 within Deutsche Bank for the purpose of trading Client funds. He was listed with the CFTC as a principal of DB Advisors LLC and also registered as an associated person and an associate member of the NFA on July 22, 1999. From April 1988 until June 1997, Robert Calabretta was employed by Morgan Stanley in various capacities. From June 1993 until June 1997, Robert Calabretta assisted in the development and trading of technical and quantitative futures programs for proprietary accounts of Morgan Stanley in New York. From March 1990 until June 1993, Robert Calabretta worked in Morgan Stanley’s Tokyo Office, initially to establish the Internal Audit Department and finally to trade proprietary capital. From April 1988 until March 1990, Robert Calabretta worked in the Internal Audit Department for Morgan Stanley in New York. From August 1987 until April 1988, Robert Calabretta worked as an auditor for Price Waterhouse. Robert Calabretta received his B.S. in Finance and Accounting from Washington and Lee University in 1987.

The descriptions above are from the manager's disclosure document.

THE RISK OF LOSS IN TRADING FUTURES, OPTIONS AND OFF-EXCHANGE FOREX CAN BE SUBSTANTIAL.  PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.  PLEASE READ THE CTA'S RISK DISCLOSURE DOCUMENT CAREFULLY BEFORE INVESTING MONEY.