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Q&A With Northstart Capital Management, LLC


Company Information


Company Name:


Northstar Capital Management, LLC


Location:


Skyline Tower, 10900 NE 4th ST, Suite 2300 Bellevue, WA 98004


Contact Name:


Walter Guidice


Phone number


425-990-1009


Fax number


425-696-3063


Email


walt@northstarfx.com


Product Name:


Northstar Global Fund, LP


Product Assests:


15 million USD


Total Assets Under Management:


15 million USD


Firm Inception Date:


May, 2001


Number of Employees:


5


Return Information


Monthly Performance


10/01


11/01


12/01


1/02


2/02


3/02


4/02


5/02


Since Inception


2.69


-5.70


1.15


2.01


1.29


1.16


10.33


5.10


18.65


Statistics


Annualised Performance:


47.74%


Standard Deviation: (since inception)


4.67


Sharpe Ratio:


1.06


Parker FX Index Rank as of April 2002:


2 out of 44



 

 

 


What types of instruments do you trade (e.g. spot, forward, options)?

Predominantly Interbank spot trading with very limited forwards & OTC options.


What is the average length of time positions are held?


7-10 days on average


What is the average number of positions taken during the month?


15 different positions


Is leverage used? If yes, maximum leverage amount? Average leverage amount?


Yes, leverage is used. Maximum leverage used is 15:1.

Average leverage: 7:1


What is your outlook about the direction of the major currencies?


We expect to see continued weakness in the US dollar against most other major currencies over the short to medium term, with a stronger dollar rally late in the year. With the recent strengthening of the Japanese yen, we anticipate a modest period of consolidation to occur over the short term, with a very large move to the downside expected to begin in July or August and continuing well into the fourth quarter, 2002.


In which currency pair do you see the best opportunities over the next six months?


We like the profit potential of both Usd/Jpy and Eur/Jpy over the medium term, as we believe the yen will test its lowest levels of the year within the next six months.


What opportunities do you see in emerging markets?

Although we believe there will always be profitable opportunities within emerging markets, we currently don’t have the risk/reward appetite for trading within such markets.


Have FX trading portals made it easier to transact business, or have they had no effect on your business? Please explain.

FX trading portals have helped our business by providing valuable real time technical and fundamental analysis, live pricing, and other pertinent market information, which in turn, has improved our execution efficiency. Trading portals also help to provide transparency to our industry, thereby requiring accountability from all market participants.


What is your biggest concern about the future of the FX market (e.g. bank consolidation, liquidity, exchange rate risk, diminished personal relationships)?


In our post September 11th world, we have been inundated with all types of new federal regulation; some of which has already negatively affected limited aspects of our industry. As our world continues to evolve into a true global society, we believe there is a good possibility that further regulatory changes for the FX market are inevitable. Although regulatory changes are often necessary and welcomed, the threat of over-regulation in the FX market could prove to be a legitimate concern in the years ahead.

Profit & Loss

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