Saw-toothed Markets, Elevated Volatility and Leadership Rotation—Our View of the Opportunities Ahead
The Calamos investment team makes the case for additional market upside—while cautioning investors to prepare for turbulence.
Alternative: Market Neutral
CMNIX
Market Neutral Income Fund
5 Stars
Among 95 Market Neutral funds. The Fund's risk-adjusted returns based on load-waived Class I Shares had 4 stars for 3 years, 5 stars for 5 years and 5 stars for 10 years out of 95, 74 and 20 Market Neutral Funds, respectively, for the period ended 8/31/2020.
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.
Alternative: Options-based
CIHEX
Hedged Equity Fund
5 Stars
Among 113 Options-based funds. The Fund's risk-adjusted returns based on load-waived Class I Shares had 5 stars for 3 years and 5 stars for 5 years out of 113 and 69 Options-based Funds, respectively, for the period ended 8/31/2020.
Aims to achieve the total return of equity markets with lower volatility. It utilizes a covered call strategy, which invests in a diversified portfolio of equities while using options to generate income and manage risk.
U.S. EQUITY: U.S. EQUITIES AND CONVERTIBLES
CGIIX
Growth and Income Fund
5 Stars
Among 301 Allocation--70% to 85% Equity funds. The Fund's risk-adjusted returns based on load-waived Class I Shares had 5 stars for 3 years, 5 stars for 5 years and 5 stars for 10 years out of 301, 279 and 188 Allocation--70% to 85% Equity Funds, respectively, for the period ended 8/31/2020.
The fund invests primarily in U.S. equity and convertible securities in an attempt to balance risk/reward while providing growth and income.
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One more argument for non-U.S. diversification: See how #emergingmarkets tech stocks stayed positive when U.S. tech struggled this month. bit.ly/3kPkARG
On the Blogs
Investment Ideas
With Realized Convertible Arbitrage Profits and Poised for Hedged Equity Opportunities, CMNIX Is Having a Good Year
September 25, 2020
The Calamos Market Neutral Income Fund (CMNIX) team anticipates heightened volatility and additional opportunity in what seems likely to be a politically charged fourth quarter.
Investment Team Voices
Emerging Market Technology: A Port in the Storm
September 24, 2020
Heightened U.S-China tensions continue to reshape global supply chains, creating tailwinds for many international technology companies. Additionally, market conditions illustrate the benefits of building technology exposure that extends beyond the large-cap U.S. companies that often dominate U.S. investors’ attention and the headlines.
Featured Newsletters
Newsletter
Calamos Alternative Snapshot
September 21, 2020
Navigating the Anomalies in the Options Market
All About Convertible Securities
Our Convertible Securities: Structures, Valuation, Market Environment and Asset Allocation guide is a resource on how convertible bonds work. It’s written by Calamos Founder, Chairman and Global Chief Investment Officer John P. Calamos, Sr.
The Morningstar Market Neutral Category represents funds that attempt to eliminate the risks of the market by holding 50% of assets in long positions in stocks and 50% of assets in short positions.
Morningstar Options-Based Category represents funds that generate a significant portion of their returns from the collection of premiums on options contracts sold.
Morningstar Allocation—70% to 85% Equity funds seek to provide both income and capital appreciation by investing in multiple asset classes, including stocks, bonds and cash. These portfolios are dominated by domestic holdings and have equity exposures between 70% and 85%.