Menu
Volatility Opportunity Guide

At Calamos Investments we believe that volatility and down markets are to be expected, planned for and yes, benefited from.

Volatility leads to investment opportunities, we know from experience — and are happy to share some of our experiences and insights with you in this resource guide. Managing volatility is Calamos’ specialty and we welcome the opportunity to help you with your clients’ conversations and investment plans. Your rough patch, as we like to say, is our sweet spot.

  • Pursuing the Opportunities
    Lower-Volatility Equity Strategies: The Core of anEquity Allocation

    A lower-volatility equity asset allocation can offer investors time in the market at a comfort level that neither stocks nor bonds alone can provide.
    read more

    Blog
    Scott Becker, CFA, senior vice president, head of Portfolio Specialists Group

    “When you’re a constant price-seeker, you detect changes in value and you can pursue them.”

    You Can Manage the Risks,Not the Returns

    It’s important to be aware of the near term while not losing sight of longer term objectives.
    read more

    Perspective
    Michael Grant, senior vice president, senior co-portfolio manager

    “Volatility is the opportunity to position for higher equity returns.”

    Convertibles Outperformed During Periods ofHigh Volatility

    The fixed-income characteristics of convertibles may provide downside protection in periods of equity market volatility.
    read more

    Chart
    Up and to the Left: Asset Allocation Evolves IntoRisk Diversification

    An exposure to long-only equities can become highly correlated during financial stress and volatility—here’s how alternatives can help.
    read more

    Chart Talk
    High Volatility: The Lowest Risk Moments toOwn Equities

    Extreme volatility is the sign that it’s time to become a long-term investor again.
    read more

    Perspective
    Manage Volatility By Using Liquid Alts toHedge Equities

    Increasing exposure to hedged equity strategies may provide the downside protection—and therefore emotional reassurance—that individual investors need to stay in the market.
    read more

    Whitepaper (PDF)
    The Opportunities That Arise When MarketsMove Fast

    How one portfolio manager sizes up the opportunities created by volatility.
    read more

    Perspective
    Gamma Trading: Why Big Market Swings Can BeGood News

    The more volatility in the market, the more stocks rise and fall—which can provide more opportunities to sell high and buy low.
    read more

    Blog
    Gamma Trading DuringExtreme Volatility

    Spiking volatility can multiply the opportunities for gamma trading.
    read more

    Chart
    How to Mitigate the Effect of Volatility onRetirement Portfolios

    Reducing portfolio variance and drawdowns can be more critical than ever in the withdrawal phase even while clients need growth potential from equities.
    read more

    Investment Idea
  • For Your Reference
    Volatilityand the Fed

    How the Fed’s unprecedented support of the U.S. economy from June 2009 to December 2015 tamped down market volatility.
    read more

    Chart
    Call It aComeback

    Changes to the structure of markets and trading may be responsible for stimulating market volatility.
    read more

    Chart
    When Market Sentiment BecomesOne-Sided

    The credit markets typically overreact and push individual security levels and the overall market too far.
    read more

    Perspective
    The Value of a LessBumpy Ride

    Low volatility can be easier on a portfolio—and an investor.
    read more

    Chart
    Why I Believe Staying in the Market MakesGood Sense

    Calamos Founder, Chairman and Global CIO John P. Calamos, Sr. discusses the risks of trying to time volatile markets.
    read more

    Blog
    Time Out of Non-U.S. Developed Markets

    Timing the non-U.S. developed markets and emerging markets can be costly.
    read more

    Chart
    Market Volatility Tests Investors’ Ability toBuy and Hold

    Volatility can trigger selling, and historically has resulted in investors missing rallies.
    read more

    Investment Idea (PDF)
    Volatility Can Chip Away at InvestmentProgress

    The smaller the portfolio loss, the easier the rebound—and vice versa.
    read more

    Chart
    David O’Donohue, vice president, co-portfolio manager

    “Which names will benefit or suffer and has the market adjusted them yet?”

    Every 4 Years: Elections Are theVolatility X-Factor

    The S&P 500, the VIX and the presidential election cycle.
    read more

    Chart
    Significant Intra-Year Drawdowns AreCommon

    Market pullbacks occur more often than many people realize.
    read more

    Chart Talk
    Understanding EmergingMarkets’ Volatility

    Perhaps emerging markets should be known for their rapid snapbacks.
    read more

    Investment Idea (PDF)
  • Calamos Funds

    U.S. Equity

    Calamos Discovery Growth

    The fund invests in small and midsize U.S. companies that we believe offer the best potential for growth.
    read more

    Fund
    Calamos Dividend Growth

    The fund invests in companies that we believe have an ability to increase dividends over time, either through increasing profits or more efficient use of capital.
    read more

    Fund
    Calamos Focus Growth

    The fund invests in a select portfolio of equities issued by “blue chip” U.S. companies that offer opportunities for growth.
    read more

    Fund
    CalamosGrowth

    The fund invests in the equities of U.S. companies with a range of market capitalizations that we believe offer the best potential for growth.
    read more

    Fund
    Calamos Growth and Income

    The fund invests primarily in U.S. equity and convertible securities in an attempt to balance risk and reward while providing growth and income.
    read more

    Fund
    Calamos Mid Cap Growth

    The fund invests primarily in equity securities issued by midsize U.S. companies that we believe offer the best opportunities for growth.
    read more

    Fund
    Calamos Opportunistic Value

    The fund invests in the equities of small, midsize and large U.S. companies that we believe are undervalued according to certain financial measurements of their intrinsic values.
    read more

    Fund

    Global/International

    CalamosEmerging Market Equity

    The fund invests in growth companies globally, whose principal activities are in a developing market or are economically tied to a developing market country that we believe offer the best opportunities for emerging market growth.
    read more

    Fund
    CalamosEvolving World Growth

    The fund invests in growth companies globally, emphasizing companies with revenue streams derived within or from emerging markets. The fund is designed to actively manage the risk profile over full market cycles.
    read more

    Fund
    CalamosGlobal Equity

    The fund invests in equities of companies around the globe, focusing on those firms demonstrating what we believe to be key growth characteristics, including increasing profit margins and high returns on invested capital.
    read more

    Fund
    CalamosGlobal Growth and Income

    The fund invests primarily in global equity and convertible securities in an attempt to balance risk and reward while providing growth and income.
    read more

    Fund
    CalamosInternational Growth

    The fund invests in non-U.S. growth companies, focusing on those firms demonstrating what we believe to be key growth characteristics, including increasing profit margins and high returns on invested capital.
    read more

    Fund

    Convertible

    CalamosConvertible

    The fund invests primarily in convertible securities of U.S. companies that are diversified across market sector and credit quality.
    read more

    Fund
    CalamosGlobal Convertible

    The fund invests in global convertible securities, striving to balance risk and reward while providing growth and income.
    read more

    Fund

    Alternative

    CalamosHedged Equity Income

    The fund is an alternative strategy that invests in equities and sells options with the aim of achieving the total return of equity markets with lower volatility. It utilizes a covered call strategy, which involves investing in a diversified portfolio of equities and at the same time using options to generate income and manage risk.
    read more

    Fund
    Long/Short

    The team manages a high-conviction, best ideas long/short fund that invests primarily in U.S. equity securities and is diversified with exposure to key sectors.
    read more

    Fund
    CalamosMarket Neutral Income

    The fund’s core market strategies include covered call writing and convertible arbitrage. Together, these strategies are intended to provide the fund with an enhanced potential for risk-managed returns due to their differing responses to volatility.
    read more

    Fund
    PhineusLong/Short

    The fund seeks strong risk-adjusted and absolute returns across the global equity universe. The fund uses a global long/short strategy to invest in publicly listed equity securities.
    read more

    Fund

    Fixed Income

    Calamos High Income

    The fund invests in a diversified portfolio of U.S. and non-U.S. high yield bonds.
    read more

    Fund
    CalamosLong/Short

    The team manages a high-conviction, best ideas long/short fund that invests primarily in U.S. equity securities and is diversified with exposure to key sectors.
    read more

    Fund
    CalamosTotal Return Bond

    The fund invests primarily in U.S. fixed income instruments including government/agency securities, corporate debt and high yield debt.
    read more

    Fund

    Before investing carefully consider the fund’s investment objectives, risks, charges and expenses. Please see the prospectus and summary prospectus containing this and other information or call 1-800- 582-6959. Read it carefully before investing.

    Disclosure

    Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be suitable for all investors. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.

    Past performance is no guarantee of future results.

    The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Information contained herein is for informational purposes only and should not be considered investment advice.

    The S&P 500 Index is considered generally representative of the U.S. stock market. Indexes are unmanaged, do not entail fees or expenses and are not available for direct investment.

    MSCI World Index is a market capitalization weighted index composed of companies representative of the market structure of developed market countries in North America, Europe, and Asia/Pacific region.

    BofA ML All U.S. Convertibles Index (VXA0) is comprised of approximately 700 issues of only convertible bonds and preferreds of all qualities.

    The Barclays U.S. Aggregate Bond Index covers the U.S.- te, taxable bond m denominated, investment-grade, fixed-ra arket of SEC-registered securities. The index includes bonds from the Treasury, Government-Related, Corporate, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS sectors.

    The Dow Jones Industrial Average is a price-weighted average of 30 blue-chip stocks that are generally the leaders in their industry.

    The MSCI EAFE Index is an arithmetic, market value-weighted average of the performance of securities listed on the stock exchanges of selected countries in Europe, the Far East and Australia.

    The MSCI Emerging Markets Index represents large and mid cap companies in emerging markets countries.

    The MSCI World ex USA Index captures large and mid cap representation across 22 of 23 Developed Markets (DM) countries*-- excluding the United States.

    The HFRI Equity Hedge Index consists of funds where portfolio managers maintain long and short positions in primarily equity and derivative securities.

    The Nasdaq Index is the market-capitalization weighted index of the more than 3,000 common equities listed on the Nasdaq stock exchange.

    The Russell 2000 Index measures U.S. small-cap stocks.

    The VIX (CBOE volatility index) is the ticker symbol for the Chicago Board Options Exchange (CBOE) Volatility Index, which shows the market’s expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options.

    Important Risk Information.An investment in the Fund(s) is subject to risks, and you could lose money on your investment in the Fund(s).There can be no assurance that the Fund(s) will achieve its investment objective

    Investment in the Fund(s) is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. The risks associated with an investment in the Fund(s) can increase during times of significant market volatility. More detailed information regarding these risks can be found in the Fund’s prospectus.

    Some of the risks associated with investing in alternatives may include hedging risk, derivative risk, short sale risk, interest rate risk, credit risk, liquidity risk, non-U.S. government obligation risk and portfolio selection risk. Alternative investments may not be suitable for all investors.

    The principal risks of investing in the Fund(s) include:

    Focus Growth Fund: equity securities risk, growth stock risk, value stock risk, foreign securities risk and portfolio selection risk.

    Convertible Fund: convertible securities risk, synthetic convertible instruments risk, foreign securities risk, equity securities risk, interest rate risk, credit risk, high yield risk and portfolio selection risk.

    Discovery Growth Fund: equity securities risk, small and mid-sized company stock risk, growth stock risk, foreign securities risk and portfolio selection risk.

    Dividend Growth Fund: declining equity values; losses from MLPs related to lack of portfolio diversification, changes in tax laws, lack of liquidity, declining equity values, and conflicts over control rights; incorrect selection or judgments on portfolio holdings by the investment advisor; increased transaction costs because of frequent turnover; losses from currency fluctuations; lack of liquidity or correlation to underlying securities in the options market; and potential illiquidity of securities purchased privately under Rule 144A.

    Emerging Market Equity Fund: equity securities risk consisting of market prices declining in general, growth stock risk consisting of potential increased volatility due to securities trading at higher multiples, foreign securities risk, emerging markets risk, currency risk, geographic concentration risk, American depository receipts, mid-size company risk, small company risk, portfolio turnover risk and portfolio selection risk.

    Evolving World Growth Fund: equity securities risk, growth stock risk, foreign securities risk, emerging markets risk, convertible securities risk and portfolio selection risk.

    Global Equity Fund: equity securities risk, growth stock risk, value stock risk, foreign securities risk, emerging markets risk, small and mid-sized company risk and portfolio selection risk.

    Global Growth and Income Fund: convertible securities risk, synthetic convertible instruments risk, foreign securities risk, emerging markets risk, equity securities risk, growth stock risk, interest rate risk, credit risk, high yield risk and portfolio selection risk.

    Growth Fund: equity securities risk, growth stock risk, mid-sized company risk, foreign securities risk and portfolio selection risk.

    Growth and Income Fund: convertible securities risk, synthetic convertible instruments risk, equity securities risk, growth stock risk, small and mid-sized company risk, interest rate risk, credit risk, high yield risk and portfolio selection risk.

    High Income Fund: high yield risk, convertible securities risk, synthetic convertible instruments risk, interest rate risk, credit risk, liquidity risk and portfolio selection risk.

    International Growth Fund: equity securities risk, growth stock risk, foreign securities risk, emerging markets risk, small and mid-sized company risk and portfolio selection risk.

    Long/Short Fund: equities securities risk, short sale risk, options risk, portfolio selection risk, liquidity risk, convertible securities risk, synthetic convertible instruments risk, leveraging risk, portfolio turnover risk, foreign securities risk, growth stock risk, small and midsized company risk, emerging markets risk, derivative risks, futures and forward contracts risk, interest rate risk, credit risk, and cash holdings risk.

    Market Neutral Income Fund: convertible securities risk, synthetic convertible instruments risk, convertible hedging risk, covered call writing risk, options risk, short sale risk, interest rate risk, credit risk, high yield risk, liquidity risk and portfolio selection risk.

    Mid Cap Growth Fund: declining equity values; higher volatility from growth and mid-cap companies to changes in the economic; incorrect selection or judgments on portfolio holdings by the investment advisor; increased transaction costs because of frequent turnover; losses from currency fluctuations; lack of liquidity or correlation to underlying securities in the options market; and potential illiquidity of securities purchased privately under Rule 144A.

    Total Return Bond Fund: interest rate risk, credit risk, high yield risk, liquidity risk, mortgage-related and other asset-back securities risk, including extension risk and prepayment risk, U.S. Government security risk, foreign securities risk, non-U.S. Government obligation risk and portfolio selection risk.

    Opportunistic Value Fund: equity securities risk, value stock risk, small and mid-sized company risk, foreign securities risk and portfolio selection risk.

    Hedged Equity Income Fund: covered call writing, options, equity securities, correlation, mid-sized company, short sale, interest rate, credit, liquidity, portfolio selection, portfolio turnover, foreign securities, American depository receipts, and REITS.

    Global Convertible Fund: convertible securities risk consisting of the potential for a decline in value during periods of rising interest rates and the risk of the borrower to miss payments, synthetic convertible instruments risk consisting of fluctuations inconsistent with a convertible security and the risk of components expiring worthless, foreign securities risk, emerging markets risk, equity securities risk, growth stock risk, interest rate risk, credit risk, high yield risk, forward foreign currency contract risk, portfolio selection risk, and liquidity risk.

    Calamos Phineus Long/Short Fund: equity securities risk consisting of market prices declining in general, short sale risk consisting of potential for unlimited losses, foreign securities risk, currency risk, geographic concentration risk, other investment companies (including ETFs) risk, derivatives risk, options risk, and leverage risk.

    As a result of political or economic instability in foreign countries, there can be special risks associated with investing in foreign securities, including fluctuations in currency exchange rates, increased price volatility and difficulty obtaining information. In addition, emerging markets may present additional risk due to potential for greater economic and political instability in less developed countries.

  • Glossary

    Glossary

    Correlation: Correlation is a statistical relationship between two variables. A positive correlation occurs when two variables move in tandem–one variable increases as the other increases and vice versa. Negative correlation occurs when they move in opposite directions–one variable increases as the other decreases and vice versa.

    Covered Call Writing: Writing (selling) of call (buy) options against owned stock positions; the option writer receives income from the option premium and is obligated, if and when assigned an exercise, to deliver stock according to the terms of the contract. Only the option buyer can exercise an option. This strategy works well in a low volatility environment.

    Delta: How much the convertible value rises or falls for a given stock move.

    Drawdown: The peak-to-trough decline during a specific record period of an investment. A drawdown is usually quoted as the percentage between the peak and the trough.

    Gamma: The change in delta as stock price moves.

    Hedged equities: The performance of traditional equity investments, or “unhedged equities,” tends to rise and fall with the stock market. Some alternative investments, such as equity long/short and covered call strategies, are referred to as “hedged equities,” which seek to reduce portfolio risk while maintaining equity exposure. The term “hedged equities” does not necessarily mean long and short equally offset each other. Rather, that a measure of risk control is in place.

    In the Money: A call option is said to be in the money when the current market price of the stock is above the strike price of the call. It is “in the money” because the holder of the call has the right to buy the stock below its current market price. When you have the right to buy anything below the current market price, then that right has value.

    Long/Short: A strategy in which a portfolio manager or investor holds both long (buy) and short (sell) positions designed to offset each other and hedge against market volatility.

    Semi-Variance: Semi-variance breaks down deviation from the mean into two more meaningful parts: the upside and downside. Upside semi-variance shows how much of the investment’s overall volatility is the result of upward price movements, and downside semi-variance represents downside movements.

    Sharpe Ratio: Sharpe ratio is a calculation that reflects the reward per each unit of risk in a portfolio. The higher the ratio, the better the portfolio’s risk-adjusted return is.

    Standard Deviation: Standard deviation is a measure of volatility.

    Before investing carefully consider the fund’s investment objectives, risks, charges and expenses. Please see the prospectus and summary prospectus containing this and other information or call 1-800- 582-6959. Read it carefully before investing.

    Disclosure

    Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be suitable for all investors. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.

    Past performance is no guarantee of future results.

    The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Information contained herein is for informational purposes only and should not be considered investment advice.

    The S&P 500 Index is considered generally representative of the U.S. stock market. Indexes are unmanaged, do not entail fees or expenses and are not available for direct investment.

    MSCI World Index is a market capitalization weighted index composed of companies representative of the market structure of developed market countries in North America, Europe, and Asia/Pacific region.

    BofA ML All U.S. Convertibles Index (VXA0) is comprised of approximately 700 issues of only convertible bonds and preferreds of all qualities.

    The Barclays U.S. Aggregate Bond Index covers the U.S.- te, taxable bond m denominated, investment-grade, fixed-ra arket of SEC-registered securities. The index includes bonds from the Treasury, Government-Related, Corporate, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS sectors.

    The Dow Jones Industrial Average is a price-weighted average of 30 blue-chip stocks that are generally the leaders in their industry.

    The MSCI EAFE Index is an arithmetic, market value-weighted average of the performance of securities listed on the stock exchanges of selected countries in Europe, the Far East and Australia.

    The MSCI Emerging Markets Index represents large and mid cap companies in emerging markets countries.

    The MSCI World ex USA Index captures large and mid cap representation across 22 of 23 Developed Markets (DM) countries*-- excluding the United States.

    The HFRI Equity Hedge Index consists of funds where portfolio managers maintain long and short positions in primarily equity and derivative securities.

    The Nasdaq Index is the market-capitalization weighted index of the more than 3,000 common equities listed on the Nasdaq stock exchange.

    The Russell 2000 Index measures U.S. small-cap stocks.

    The VIX (CBOE volatility index) is the ticker symbol for the Chicago Board Options Exchange (CBOE) Volatility Index, which shows the market’s expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options.

    Important Risk Information.An investment in the Fund(s) is subject to risks, and you could lose money on your investment in the Fund(s).There can be no assurance that the Fund(s) will achieve its investment objective

    Investment in the Fund(s) is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. The risks associated with an investment in the Fund(s) can increase during times of significant market volatility. More detailed information regarding these risks can be found in the Fund’s prospectus.

    Some of the risks associated with investing in alternatives may include hedging risk, derivative risk, short sale risk, interest rate risk, credit risk, liquidity risk, non-U.S. government obligation risk and portfolio selection risk. Alternative investments may not be suitable for all investors.

    The principal risks of investing in the Fund(s) include:

    Focus Growth Fund: equity securities risk, growth stock risk, value stock risk, foreign securities risk and portfolio selection risk.

    Convertible Fund: convertible securities risk, synthetic convertible instruments risk, foreign securities risk, equity securities risk, interest rate risk, credit risk, high yield risk and portfolio selection risk.

    Discovery Growth Fund: equity securities risk, small and mid-sized company stock risk, growth stock risk, foreign securities risk and portfolio selection risk.

    Dividend Growth Fund: declining equity values; losses from MLPs related to lack of portfolio diversification, changes in tax laws, lack of liquidity, declining equity values, and conflicts over control rights; incorrect selection or judgments on portfolio holdings by the investment advisor; increased transaction costs because of frequent turnover; losses from currency fluctuations; lack of liquidity or correlation to underlying securities in the options market; and potential illiquidity of securities purchased privately under Rule 144A.

    Emerging Market Equity Fund: equity securities risk consisting of market prices declining in general, growth stock risk consisting of potential increased volatility due to securities trading at higher multiples, foreign securities risk, emerging markets risk, currency risk, geographic concentration risk, American depository receipts, mid-size company risk, small company risk, portfolio turnover risk and portfolio selection risk.

    Evolving World Growth Fund: equity securities risk, growth stock risk, foreign securities risk, emerging markets risk, convertible securities risk and portfolio selection risk.

    Global Equity Fund: equity securities risk, growth stock risk, value stock risk, foreign securities risk, emerging markets risk, small and mid-sized company risk and portfolio selection risk.

    Global Growth and Income Fund: convertible securities risk, synthetic convertible instruments risk, foreign securities risk, emerging markets risk, equity securities risk, growth stock risk, interest rate risk, credit risk, high yield risk and portfolio selection risk.

    Growth Fund: equity securities risk, growth stock risk, mid-sized company risk, foreign securities risk and portfolio selection risk.

    Growth and Income Fund: convertible securities risk, synthetic convertible instruments risk, equity securities risk, growth stock risk, small and mid-sized company risk, interest rate risk, credit risk, high yield risk and portfolio selection risk.

    High Income Fund: high yield risk, convertible securities risk, synthetic convertible instruments risk, interest rate risk, credit risk, liquidity risk and portfolio selection risk.

    International Growth Fund: equity securities risk, growth stock risk, foreign securities risk, emerging markets risk, small and mid-sized company risk and portfolio selection risk.

    Long/Short Fund: equities securities risk, short sale risk, options risk, portfolio selection risk, liquidity risk, convertible securities risk, synthetic convertible instruments risk, leveraging risk, portfolio turnover risk, foreign securities risk, growth stock risk, small and midsized company risk, emerging markets risk, derivative risks, futures and forward contracts risk, interest rate risk, credit risk, and cash holdings risk.

    Market Neutral Income Fund: convertible securities risk, synthetic convertible instruments risk, convertible hedging risk, covered call writing risk, options risk, short sale risk, interest rate risk, credit risk, high yield risk, liquidity risk and portfolio selection risk.

    Mid Cap Growth Fund: declining equity values; higher volatility from growth and mid-cap companies to changes in the economic; incorrect selection or judgments on portfolio holdings by the investment advisor; increased transaction costs because of frequent turnover; losses from currency fluctuations; lack of liquidity or correlation to underlying securities in the options market; and potential illiquidity of securities purchased privately under Rule 144A.

    Total Return Bond Fund: interest rate risk, credit risk, high yield risk, liquidity risk, mortgage-related and other asset-back securities risk, including extension risk and prepayment risk, U.S. Government security risk, foreign securities risk, non-U.S. Government obligation risk and portfolio selection risk.

    Opportunistic Value Fund: equity securities risk, value stock risk, small and mid-sized company risk, foreign securities risk and portfolio selection risk.

    Hedged Equity Income Fund: covered call writing, options, equity securities, correlation, mid-sized company, short sale, interest rate, credit, liquidity, portfolio selection, portfolio turnover, foreign securities, American depository receipts, and REITS.

    Global Convertible Fund: convertible securities risk consisting of the potential for a decline in value during periods of rising interest rates and the risk of the borrower to miss payments, synthetic convertible instruments risk consisting of fluctuations inconsistent with a convertible security and the risk of components expiring worthless, foreign securities risk, emerging markets risk, equity securities risk, growth stock risk, interest rate risk, credit risk, high yield risk, forward foreign currency contract risk, portfolio selection risk, and liquidity risk.

    Calamos Phineus Long/Short Fund: equity securities risk consisting of market prices declining in general, short sale risk consisting of potential for unlimited losses, foreign securities risk, currency risk, geographic concentration risk, other investment companies (including ETFs) risk, derivatives risk, options risk, and leverage risk.

    As a result of political or economic instability in foreign countries, there can be special risks associated with investing in foreign securities, including fluctuations in currency exchange rates, increased price volatility and difficulty obtaining information. In addition, emerging markets may present additional risk due to potential for greater economic and political instability in less developed countries.

Speak with a Calamos Investment Consultant at 888-571-2567