Denali employs a quantitative strategy to model investor behavior and capture opportunities in the marketplace. We use a proprietary forecast model to identify undervalued and overvalued securities, and use a fundamental approach to manage portfolio risk. The core part of our model uses dynamic factors to capture the dominant investor themes (e.g. the favoring of growth stocks, deep value firms, energy sector, etc.) such themes tend to persist over long periods of time. Our approach focuses on identifying and participating in these themes early in their life cycle as well as identifying when the themes become irrelevant.
Systematically identify investor themes and anchoring to stock’s value from intrinsic and network value, in order to build risk controlled portfolios that outperform in multiple market environments.
Our Commitment to Managing Risk for Our Clients
Denali believes that in order to deliver superior results to clients and investors, risk management should be an integral part of the investment process. Through the use of Denali’s proprietary quantitative investment model, the firm can identify themes of investor behavior in the market. By capturing these themes in equities portfolios, Denali believes it can deliver alpha. As an overlay to Denali’s quantitative investment process, Denali employs a fundamental overlay during the risk management process. Through the combination of these processes, Denali strives to build risk-controlled portfolios that outperform in numerous market environments.