Specialists in Convertible Securities

As a specialist in convertible securities, Cutler Capital Management provides investors an alternative investment strategy that expects to produce equity-like returns with less risk.

A long-established asset class, convertibles have delivered impressive performance during a wide variety of recent market environments. As the table below shows, over the past ten years convertibles have outdistanced key equity indices in both the long term and in the short term - in most cases by a wide margin:

What makes this outperformance especially noteworthy is that it was achieved with significantly less volatility than equity markets experienced. The structure of convertibles allowed convertible market prices to capture a significant portion of equity appreciation over the past decade while being cushioned in down markets by more stable bond values.

Investors who included convertibles in their allocation enhanced returns while also lowering volatility, as these charts show:

Convertibles are an attractive choice in the current market environment. Their unique versatility make convertibles a key component for any defensive equity strategy.