How Hedged Equity Can Help Retirees Sleep At Night

The nightmare for clients nearing retirement: That they diligently save their whole lives, build their nest egg to a point where they’ll be comfortable and then wham—the bottom falls out of the market, eroding their savings.

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Alternative: Market Neutral

CMNIX

Market Neutral Income Fund
5 Stars

Among 104 Market Neutral funds. The Fund's load-waived Class I Shares had 4 stars for 3 years, 5 stars for 5 years and 5 stars for 10 years out of 104, 83 and 25 Market Neutral Funds, respectively, for the period ended 1/31/2020.

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
4 Stars

Among 118 Options-based funds. The Fund's load-waived Class I Shares had 4 stars for 3 years and 4 stars for 5 years out of 118 and 73 Options-based Funds, respectively, for the period ended 1/31/2020.

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 306 Allocation--70% to 85% Equity funds. The Fund's load-waived Class I Shares had 5 stars for 3 years, 5 stars for 5 years and 4 stars for 10 years out of 306, 273 and 193 Allocation--70% to 85% Equity Funds, respectively, for the period ended 1/31/2020.

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

On the Blogs

Investment Ideas

What Could a Bond Alternative Do for Your Clients This Decade?

February 13, 2020

The declining interest rates of the past decade provided a strong tailwind for bond funds. And yet, Calamos Market Neutral Income Fund (CMNIX) managed to add value by delivering a bond-like return with a bond-like standard deviation but without the bond-like risk exposures.

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Investment Team Voices

When Risk Management Matters Most, Global Convertibles Shine

February 3, 2020

For investors who recognize the importance of global equity market exposure but are concerned about volatility, global convertible securities may be just the ticket.

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Featured Newsletters

Newsletter

Calamos Alternative Snapshot

February 10, 2020

The Last 5 Years Have Driven a Drop in the VIX Long-Term Average

Convertible Guide

Our 32-page Convertible Securities: Structures, Valuation, Market Environment and Asset Allocation guide (PDF) 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%.