Waypoint Seeking to Start One of Canada’s Largest Hedge Funds
- 32-year-old former Gluskin Sheff manager will take the helm
- Buying volatility is ‘extremely cheap’ in Canada, he says
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A Canadian investment firm that crushed the returns of its peers last year is looking to raise C$500 million ($377 million) for what would be one of the country’s largest hedge funds.
Waypoint Investment Partners generated a 6.2 percent return in its segregated accounts in 2018 by investing in companies that pay fat dividends, then using those payouts to buy options to bet on market volatility. That compared with a 1.6 percent loss for Bank of Nova Scotia’s Canadian Hedge Fund Index in the 12 months through November, and an almost 12 percent decline in the S&P/TSX Composite Index for 2018.