A cutting tool has a plurality of cutting portions located along a cutter peripheral surface, alternating between cutter side surfaces, with a cutting insert retained in each cutting portion. At least one cutting portion has a main recess, formed opposite of the respective cutting insert. The main recess has a recess arcuate surface and a recess bearing surface. The cutting portion also has a cam member with a cam arcuate surface and a cam bearing surface, located on different sides of a cam pivot axis. The cam member is located within the main recess, the cam arcuate surface being adjacent the recess arcuate surface and the cam bearing surface being adjacent the recess bearing surface. The cutting portion is moveable between a neutral position and an adjusted position, in which the axial position of the cutting insert is adjusted when the cam member is rotated about the cam pivot axis.