Galiot Capital (originally North Sound Mortgage Investments) hopes its good judgment will turn a profit in the real estate market. The company invests in residential mortgage-backed securities guaranteed by government agencies and government-sponsored organizations, including Fannie Mae, Freddie Mac, and Ginnie Mae. Galiot Capital, which plans to qualify as a real estate investment trust (REIT), will be externally managed by Fischer Francis Trees & Watts, a subsidiary of Charter Atlantic Corporation, an affiliate of BNP Paribas.