Denali, Midwest Form New Multi-Strat Shop

Feb 21 2007 | 1:53pm ET

Scott Ramsey, founder of Denali Asset Management, and Terri Engelman-Rhoads, president of Midwest Management Group, have teamed up to form Denali Investment Group. The new multi-strategy shop, which launched last December, offers investors access to Denali Asset Management’s Global Macro Fund, as well as an equity hedge and a directional equity strategy. In addition, there are other offerings in the works.

The Denali Global Multistrategy Fund offers investors options to invest in one or all of the strategies. The equity hedge strategy is long equities while shorting index futures and exchange-traded funds. The strategy, which is also offered as a hedge overlay for individuals or institutional investors’ long portfolios, and can have an 80% net-long exposure versus a 30% net short exposure. The firm’s directional equity strategy is a long/short equity strategy with long bond and metal (mostly gold) overlays.  The strategy can be 115% net long exposure and 70% net short.

Going forward, DIG’s product offering will include global merger arbitrage and convertible arbitrage strategies, as well as a Japanese equity long/short strategy, by bringing in managers with track records. The strategies could be launched within the next 12 to 24 months, according to sources familiar with the firm. 

The fund charges a 1.5% management fee and 20% performance fee, with a $1 million minimum investment requirement.

The alliance between Ramsey and Engelman-Rhoads is the culmination of a previous working relationship as a portfolio manager and hedge fund allocator dating back more than 17 years. Engelman-Rhoads, who created the first fund of hedge funds for the Guggenheim Group in 2000, has allocated capital to Ramsey since 1994.

Ramsey founded Denali Asset Management in 1994 and launched his global macro fund, Denali Partners, in June of 2000. Ramsey will continue to devote all of his efforts towards the management of Denali's current global macro strategy while Brad Lenhart, Denali's COO, will oversee the business operations of DIG along with Engelman-Rhoads.

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