Strategy: An Economic Enterprise Value Approach
"If one properly assesses the value of a business, one can properly assess the value of any security issued by that company and its potential opportunity."
- Nick P. Calamos
Calamos Investments' long-term investment strategy is based on our philosophy that the markets operate in a way that caters to using several methods of analysis. Our approach combines academic theory and real-world experience to determine the economic enterprise value of a company. Our investment management team can then value all securities within a corporate capital structure.
There are four key steps to our investment process:
Assess business value: We analyze the business as would a buyer of the entire company, dissecting financial statements to determine an economic enterprise value.
Assess security value: Once we understand the value of a business, our investment team focuses on individual security values within its capital structure.
Assess investment opportunities: By understanding all aspects of a company's capital structure, we seek to identify opportunities across asset classes (where applicable), as well as investment strategies.
Assess an opportunity's role in the portfolio: Utilizing risk management and portfolio construction techniques, we determine if an individual security has a place in our investment portfolios and strategies.
While this approach to investing works across multiple portfolios, risk management remains the cornerstone of each strategy Calamos Investments manages as the firm strives to maintain the appropriate balance between risk and reward throughout the entire market cycle.