Opportunistic Value

Target higher-yielding opportunities in high-quality municipal bonds.

Opportunity does not always come knocking on your door. Sometimes it takes an asset manager with a shrewd eye for detail to uncover municipal bond investment opportunities others may have overlooked. If you value an investment approach that’s flexible in duration but disciplined in its adherence to the strategy’s absolute-value mandate, Gurtin’s Opportunistic Value strategy might be right for you. Opportunistic Value represents one of our most creative municipal investment strategies, for which we employ exhaustive credit research and quantitative analysis to identify misunderstood and mispriced municipal bond opportunities for savvy investors who want to achieve yields that are substantially above those of market benchmarks — without sacrificing quality.

Keep reading to explore investor traits that are best suited to this strategy as well as the features that make our Opportunistic Value strategy unique. You can also review performance data and download fact sheets that illustrate what we have been able to achieve by employing this one-of-a-kind approach to municipal investment. Finally, browse the frequently asked questions to find answers to common questions about this strategy.

Investor Profile

Suitable for Clients Focused on Absolute Return

Opportunistic Value Features

When Patient Doesn’t Mean Passive

Are your clients savvy investors who do not mind a certain degree of market volatility while pursuing a high level of tax-exempt income? Do they have a longer investment horizon? If so, consider adding Gurtin’s Opportunistic Value strategy to their municipal allocation.

With our Opportunistic Value strategy, we employ our comprehensive credit research and quantitative analysis to identify misunderstood, and therefore, often-overlooked municipal bond opportunities with yields in excess of generic market yields. We believe that the high-quality bonds targeted for this strategy are mispriced due to market misconceptions regarding the bonds’ credit quality, the retail nature of the municipal market, and structural pricing inefficiencies that are inherent in the municipal bond market. 

Opportunistic Value’s non-laddered portfolio structure includes bond structures ranging from short term to long term, depending on where we find the most attractive opportunities.

Gurtin’s investment approach to our Opportunistic Value strategy is a contrarian one that extends beyond other firms’ traditional investment methodologies within the municipal market. Nonetheless, you can feel confident in knowing that we follow an extremely disciplined, patient process while actively looking for misunderstood municipal bond opportunities. In fact, it is our strong investment discipline that enables our team to meet our absolute value objectives.

Opportunistic Value Key Statistics

Key Statistics
 
Quality

Ready to Get Started?

If the Opportunistic Value strategy objectives and performance data align with your client’s investment objectives, we invite you to take the next step and request a portfolio review, so our Advisory Services team can open a new account for your client as soon as possible:
OR
If the objectives of the Opportunistic Value strategy do not match your municipal investment goals, please complete a quick questionnaire, which will allow us to help you find the strategy that is right for you:

Frequently Asked Questions

Have Questions? We Have Answers.


HOW LONG DOES IT TAKE TO BECOME FULLY INVESTED?

The time it takes to become fully invested can vary, depending on when our team finds municipal bonds that meet our strict above-market yield targets.


HOW DOES ACCOUNT FUNDING FOR THIS STRATEGY WORK?

When opportunities arise in the market that meet the absolute value mandates of the Opportunistic Value strategy, we conduct a capital call for investors in the queue for this strategy (in the order of the queue). We call capital in various increments, ranging from $100,000 to upwards of $1 million, depending on the size of the account, the pace of opportunities, and the specific sensitivities of the individual client, until investors have invested the $2 million minimum investment amount for this strategy. If you are currently in the queue, you have the option to invest committed cash in a portfolio managed under a Gurtin strategy that provides the necessary liquidity, until your capital is called.


IF I WITHDRAW CASH FROM MY ACCOUNT, WILL IT PREVENT MY PURCHASING ABILITY WHEN OPPORTUNITIES ARISE?

Whether you keep your uncalled cash in a Gurtin-managed account or in another account, it is necessary to have a certain amount of capital readily available in order to move quickly and take advantage of higher-yield municipal investment opportunities as they arise.


WHY MIGHT THIS STRATEGY BE CLOSED AT CERTAIN TIMES?

This strategy might be periodically closed to new accounts if the current market conditions do not offer a sufficient volume of investment opportunities that meet the strategy’s investment mandates. In times when market conditions do not provide a sufficient supply of bonds meeting our yield-to-maturity targets of 4%-5%, we will take a disciplined, patient approach and wait for the right opportunities to diversify a portfolio. Nonetheless, we anticipate that any strategy closures will be temporary in nature.

For information about our other available approaches to municipal bond management, please compare strategies.


HOW DO YOU MANAGE DURATION IN THIS STRATEGY?

The Opportunistic Value strategy employs a dynamic portfolio management approach, adjusting to the market environment as needed, in order to take advantage of portions of the yield curve offering the most value at any given time. For this reason, duration is flexible and will move based on where we find the best value.


HOW DO THE CREDIT THRESHOLDS FOR THIS STRATEGY DIFFER FROM THOSE USED FOR YOUR STABILITY AND LADDER STRATEGIES?

While all the municipal bonds we purchase and hold demonstrate high credit quality, our credit research team uses their credit analyses offensively in this strategy, to identify lesser-known obligor-securities that the municipal market may misunderstand and therefore misprice.


HOW DOES THIS STRATEGY COMPARE TO YOUR INTERMEDIATE VALUE STRATEGY?

The use of our in-depth research method to uncover hidden gems in the marketplace for portfolios managed under this strategy is similar to the way in which we approach our Intermediate Value strategy. Both the Intermediate Value and Opportunistic Value strategies target municipal investments with yields in excess of that of market benchmarks. Both strategies also target municipal bonds backed by obligors with high credit quality. However, the former maintains a consistent duration profile while the latter, again, has a fully flexible structure.


READY TO GET STARTED?
To learn more about how we can customize portfolios to meet investors' specific investment objectives, please contact our Advisory Services team by calling (858) 436-2200 or by emailing AdvisoryServices@gurtin.com.