Richard Giesen, along with several former National City and KeyCorp executives, started Elessar Investment Management, a new investment management firm based in Cleveland. Mr. Giesen, former director of National City's Allegiant Asset Management and head of Allegiant's small-cap value team, will be CEO and CIO of Elessar. The new firm, which became a registered investment adviser Jan. 1, will focus on offering small-cap value strategies to institutional and high-net-worth investors, Mr. Giesen said. "There is a lack of capacity in small-cap strategies available in the marketplace right now," said Mr. Giesen. Mr. Giesen will be joined by former National City colleagues Mitchell Krahe and Ori Elan. Mr. Krahe, Elessar's COO and compliance officer, was director of legal affairs for Allegiant Asset Management. Mr. Elan, Elessar's managing director and assistant portfolio manager, was a portfolio manager at Allegiant. Mark Fitzpatrick, a former marketing executive at KeyCorp, will be Elessar's managing director and head of sales, marketing and client service. Kelly Wagner Amen, spokeswoman for National City, said the firm's structured equity team, led by director Hitesh Patel, now runs the small-cap value fund previously managed by Messrs. Giesen and Elan. The fund has since been renamed and is now known as the Allegiant Multi-factor Small Cap Value fund. Mary McClure, spokeswoman for KeyCorp, was unavailable for immediate comment on Mr. Fitzpatrick's replacement.