2011 Cabot Investor Conference - State of Cabot

1. Robert T. Lutts
President & Chief Investment Officer
THE STATE OF CABOT

2. A CHANGING WORLD
“It is not the strongest of the species that survives,
nor is it the most intelligent,
it is the one that is the most adaptable to change.”
– Charles Darwin

3. OUTLINE
 Cabot’s Philosophy on Managing Our Business
 What This Means To You
 Cabot’s Investment Philosophy
 Independent and Flexible
 Cabot’s Wealth Management Philosophy
 Valuable Independent Advice
 Growing Our Talent Base to Better Serve Our Clients
 Portfolio Management and Research
 Wealth Management
 Global Focus
 Travel for Worldwide Research

4. Managing Our Business
 Key Philosophy – Our objectives are aligned with yours.
 Managing Wealth – Our growth is aligned with yours.
 Independent and far away from Wall Street – Our
independent thinking is a benefit to you.
 Keep It Simple – Use common sense in long-term
planning. Avoid over-engineered plans.
 Revise Strategies as Needed – Remain flexible.

5. Investment Philosophy
 Growth is Better than No Growth – Greater earnings potential
 Invest in Successful Companies – Avoid Problem Companies
 Avoid Debt-Oriented Companies
 Stay with Growth Trend for as Long as Possible
 Recognize that Most Trends Last for Long Periods
 Use a Loss Discipline – Key is to Have a Strategy
 Use Multiple Asset Classes – Be Open to New Areas
 Global Focus – Follow the Growth

6. Wealth Management Philosophy
 Keep Advice Simple and Flexible
 Avoid Complex Insurance Strategies – Insure only what is
needed.
 Insurance Salespeople Can Be Biased – Do not let them
drive strategy.
 Remain Independent – In 28 years, Cabot has never
received insurance commissions or commissions to buy any
investment product.
 Avoid Complex Tax Strategies – Use a simple, flexible
approach.

7. Cabot’s Talent Base Is Growing
 Portfolio Management Team – Highly experienced and
capable. (Technology, Telecom, Consumer, Emerging
Markets, European Markets)
 Wealth Management – Jim Gasparello, Greg Stevens, Tom
Vautin, Steve Davis, and Kathy Mealey - Highly capable of
developing solid wealth strategies.
 Independent Thinking – Investment research and critical
independent wealth management.
 Reward Staff with Profits – 15% of Cabot profits go to staff
401K. Staff interest is aligned with that of clients.

8. CABOT’S GOALS
 Continue to Place Clients’ Interest First – You are the
reason we exist.
 Continue Growing Investment and Wealth Management
Abilities – We do this through conferences and
education.
 Independent Thinking – Investment research and critical
independent wealth management.
 Global Opportunities – Recognize the vast array of
opportunities and harness these opportunities for
clients.

9. QUESTIONS