Many asset managers seek to offer a full menu of investment options. At Cutler, our approach is just the opposite. Our approach is first to identify and exploit specific types of opportunities, then to build strategies around these areas of experience and focus. In particular, we have extensive experience with bank stocks, convertible securities, and real estate investment trusts (REITs).
Our Case for Active Investment Management
There’s no doubt that passive management is trending these days. And there are cases where it makes sense. For example, an employee choosing investments in a workplace retirement plan might be wise to choose a low-cost, large-cap index fund over an actively managed fund with high fees and an indifferent performance history.
But there are still many areas of the market that are not overly efficient, and where active management can potentially be quite effective. Those are the areas we focus on.
In some cases, these areas may be a particular class of securities, such as convertible securities. In other cases, opportunities exist in certain less-followed equities, such as small bank stocks or REITs that have a particular combination of characteristics that we believe are attractive.
For clients who want to have some passive investments in the mix, we are happy to identify those we believe may be appropriate. But so long as we see places where active management appears to offer real value, that’s where we will continue to look for ways to apply our experience and deliver value in a way a passive investment could not.