Key factors that differentiate Cutwater:
A "Cutwater" is the stainless steel strap of metal at the bow of a boat; despite waves that slap at the hull, the Cutwater slices through the swirling currents and helps keep the bow pointed toward the ultimate destination. We chose the name to convey some of the guiding principles that define our investment philosophy -- successfully navigating our clients through turbulent waters while focusing on the long-term horizon and maximizing investment performance.
Cutwater's investment philosophy is based on a set of fundamental tenets that define our
approach to managing fixed income portfolios. The objective of our investment philosophy
is to provide our clients with consistent, top quartile risk-adjusted portfolio performance
through market cycles. We believe in:
Our philosophy, and the investment process that supports it, has been shown over multiple cycles to produce risk-adjusted portfolio returns in excess of relevant benchmarks and peers. The effectiveness of the approach was observable over the most recent market crisis and subsequent recovery. Despite past predictions proclaiming "the cycle has been tamed" we believe cycles are a fact of life, both historically and prospectively. Taking the long view is a core fundamental principal of our approach. The durability of the philosophy relies on the discipline needed to adhere to it. Our discipline of taking the "long view through a cycle" has the potential to generate short periods of underperformance around inflection points in the cycle. We are comfortable with this as we believe it allows us to position investors appropriately for the more meaningful parts of the cycle, away from the inflection points. The success of our philosophy over past cycles gives us confidence that we will be successful navigating cycles in the future.
steady progression of growth and innovation