Uncover hidden gems in the municipal marketplace.
If you would like a next-level intermediate portfolio, consider the Intermediate Value strategy offered here at Gurtin Municipal Bond Management. Thanks to our credit and quantitative research that we apply in managing this strategy, we believe we are able to identify both misunderstood credits and structural mispricing in the municipal market, allowing our team to target attractive bonds that others may have overlooked. With this municipal investment strategy, your objective is to achieve a level of tax-exempt income which exceeds that of a standard intermediate portfolio.
Keep reading to learn more about which types of investors benefit from this strategy as well as the unique features of the Intermediate Value strategy. In addition, discover key strategy statistics and historical performance information. You will also be able to download strategy fact sheets and explore answers to commonly asked questions.
Such as those with longer investment horizons who are planning to hold bonds to maturity, with no foreseen liquidity needs
If you seek to outperform a traditional intermediate-term laddered portfolio, but don’t want to sacrifice credit quality to achieve it, Gurtin’s Intermediate Value strategy might be perfect for you.
Affectionately referred to as our “Ladder-Plus” strategy in house, the Intermediate Value strategy involves the use of a unique portfolio structure comprised of 50% callable and 50% bullet (i.e., non-callable) bonds. This creative structure allows our team to maintain a consistent duration profile while leveraging our expertise in the callable bond space. In particular, our credit- and quantitative-research teams uncover value that managers who stick to a simple laddered approach often overlook.
By taking a more holistic approach to municipal credit research, the Gurtin team is able to identify municipal bond opportunities that others in the market may miss due to a misunderstanding of the credit risk factors at play. In contrast to other managers, we build our own independent credit analysis from the ground up, with no reliance on the public credit ratings agencies, for a more comprehensive understanding of credit profiles.
Our quantitative research team then steps in to identify bonds that have been mispriced due to a reliance on archaic pricing conventions or to a misunderstanding of complex bond structures. In combining our comprehensive credit and quantitative analyses, we are often able to identify opportunities that others miss. The result is often a level of tax-exempt income that exceeds that of intermediate-term laddered portfolios.