Firm that crushed competition on investment returns last year wants to start one of Canada’s biggest hedge funds

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Waypoint Investment Partners generated a 6.2 per cent 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.Brent Lewin/Bloomberg

A Canadian investment firm that crushed the returns of its peers last year is looking to raise $500 million (US$377 million) for what would be one of the country’s largest hedge funds.

Waypoint Investment Partners generated a 6.2 per cent 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 per cent loss for Bank of Nova Scotia’s Canadian Hedge Fund Index in the 12 months through November, and an almost 12 per cent decline in the S&P/TSX Composite Index for 2018.

Now Toronto-based Waypoint is planning to put that strategy to work in a new pooled hedge fund. The Waypoint All-Weather Portfolio will be run by Ryan Marr, who managed the segregated funds last year. Marr, 32, joined Waypoint a year ago after 12 years with Gluskin Sheff & Associates Inc. as partner and portfolio manager.

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