Cabot Wealth Management (Salem)

Name: Cabot Wealth Management
Address: 216 Essex Street, Salem, MA, 01970
Telephone: 978-745-9233

Cabot Wealth Management is a large advisory firm based in Salem. It manages $620.64 million of regulatory assets for 1,615 client accounts. It has been registered with the SEC as an adviser since 2014 and has operated in the jurisdictions of Alaska, California, Connecticut, and 18 other states.

Cabot Wealth Management provides financial planning services, portfolio management for individuals and small businesses, and selection of other advisers. It prepares financial plans for more than 100 clients. On top of advisory services, the firm doesn't engage in other business activities.

Cabot Wealth Management: assets under management

The assets under management (AUM) of Cabot Wealth Management is $620.64 million. The firm's AUM has grown by 20% since the beginning of its operation, and the company doesn't manage any assets belonging to foreign clients.

The firm manages $618.22 million in discretionary accounts and $2.42 million in non-discretionary accounts. On average, the discretionary accounts where all decisions are made on behalf of the client hold $404.86 thousand each. Non-discretionary accounts, where clients actively manage their portfolios, generally hold around $27.54 thousand.

Cabot Wealth Management has custody of $89 million in cash and securities for 57 clients in total but doesn’t act as a qualified custodian.

Investments

The firm invests in exchange traded securities the most. They account for 76% of the total AUM. The second-largest asset type is investment grade corporate bonds, which make up 10% of the firm’s portfolio. Investments in government bonds form 7% of the total invested assets.

Fees & Commissions

The advisory firm has several streams of revenue. Clients pay Cabot Wealth Management for their services and products based on a percentage of assets under management, hourly charges, and fixed fees. Flat-fee based compensation is the most transparent and the one you can safely predict in advance. These fees don’t include brokerage commissions, interest, taxes, and other account expenses.

What kind of clients Cabot Wealth Management serves?

The firm provides services to charitable organizations and high net worth individuals. The largest group of clients of Cabot Wealth Management is high net worth individuals with 635 clients and $604.8 million of assets under management. Among the 12 most similar advisory firms, Cabot Wealth Management has the highest percentage of high net worth individuals out of all clients.

The amount of regulatory assets under management is $620.64 million for 648 clients that can include trusts, estates, and 401(k) plans and IRAs of individuals and their family members. None of the firm’s clients are foreign persons or businesses.

Cabot Wealth Management doesn't advise any private funds.

Careers at Cabot Wealth Management

The company employs 17 people that are either part- or full-time employees. 53 percent of the employees work as investment advisers or researchers. 4 employees are registered as investment adviser representatives with the state securities authorities.

There isn’t anyone with the role of looking for and bringing in new clients on behalf of the firm. The firm compensates employees in addition to the salary for bringing in new clients. Employees don’t receive compensation from other entities for client referrals.

Direct owners and executive officers

Name	Entity	Date acquired	Ownership	Employer ID
Robert Tomlinson Lutts	President & chief investment officer,owner	1 Sep 1983	75% - 100%	2349829
Sonia Lynn Ernst	Principal & manager of operations and trading	1 Jan 2006	Other	5638600
James Michael Gasparello	Principal & senior financial counselor	1 Jan 2006	Other	1470145
Gregory A Stevens	Principal, cco	1 Aug 2010	Other	2814038

Based in Salem

The principal office where Cabot Wealth Management performs its advisory services is located at 216 Essex Street, Salem, MA 01970, which is also the mailing address of the firm. An additional office of the firm is in Boston, MA. It doesn’t run an office outside of the United States.

You can reach the main office by calling the phone number 978-745-9233 or by fax 978-744-3109. The normal business hours are 8:00am - 5:00pm on Monday - Friday. You can find more information about the New York firm at ecabot.com.