Douglas A. Kelly was named president of fixed-income boutique Merganser Capital Management, effective Nov. 15.
He will succeed Edward R. Bedrosian, who founded Merganser Capital in 1985, according to a news release from Merganser’s parent company, Annaly Capital Management. Mr. Bedrosian will take on the new role of chairman emeritus, through 2011.
Mr. Kelly, the firm’s chief investment officer, will also become co-CIO along with Andrew M. Smock, currently assistant CIO. Mr. Smock won’t be replaced.
In a telephone interview, Mr. Kelly said considering his own experience of 25 years working within the strong culture Mr. Bedrosian created at Merganser, the transition should be seamless.
He said some Merganser clients took advantage of the liquidity the firm’s strategies maintained during the financial turmoil in 2008 to withdraw funds when other market segments froze up. However, the investment performance of the firm’s products — “universally in the top quartile of their universes over one-, three-, five- and 10-year periods” — leave it positioned to attract clients, he said.
Merganser had $6.2 billion in assets under management as of Sept. 30, up from $5.5 billion at the end of 2009 and $4.6 billion at the end of 2008. The firm had $5.4 billion at the end of 2007.