Cutler offers three distinct investment strategies targeted to meet the different risk profiles of our investors: Opportunistic, Balanced and Defensive .
Each of these strategies is anchored by a disciplined portfolio management process that starts with quantitative screening followed by detailed credit and fundamental analysis. Cutler’s portfolio management team then constructs a portfolio of convertible bonds, convertible preferred equities, mandatory securities, REITs and/or dividend-paying equities that have been evaluated on the merits of their relative value and risk attributes. Positions may or may not overlap strategies, but each strategy is uniquely designed to meet our client’s expectation for risk and reward.
Opportunistic Long/Short Equity Strategy
This long/short equity strategy seeks to achieve the long-term returns associated with a stock portfolio but with less volatility. The portfolio is invested primarily in equity-like convertibles and convertible preferred securities but will also include some REITs and dividend-paying common stocks. leverage, options and short selling are employed to enhance returns and manage risk.
The balanced strategy targets a return profile similar to a portfolio invested 60% in stocks and 40% in bonds but with less volatility. The portfolio is invested primarily in convertible securities but will also include REITs and dividend-paying common stocks. Margin is not used in this investment strategy. Options and short-selling are employed to manage risk or generate income.
This bond-plus strategy seeks enhanced returns in comparison to investment grade corporate bonds with less interest rate risk. The portfolio is primarily composed of U.S. and global investment grade, “at-the-money” convertibles that offer downside protection with the added potential for an equity kicker should the underlying stocks appreciate.