Welcome to Founder’s Corner
22 January 2018
Welcome to Founder’s Corner, a new forum where I’ll offer thoughts on the markets, asset allocation, risk management, and other topics that are top-of-mind for investors.
I hope my experiences as an investor and an entrepreneur will provide you with perspective and confidence as you pursue your asset allocation goals. I began investing my family’s nest egg as a teenager and started my professional investing career helping clients navigate the difficult financial markets of the 1970s. These experiences shaped my belief that risk management should be a cornerstone of every asset allocation strategy.
Because uncertainty and risk cannot be avoided, I’ve always been interested in finding innovative ways to manage risk—and to turn volatility into opportunity. In the 1970s, this fueled my interest in convertible securities, which were little known at the time. From there, I focused on ways to leverage the unique attributes of convertibles in tandem with other asset classes to help my clients pursue their long-term goals.
In many ways, the investing landscape was very different 40 years ago. For one, clients thought of asset allocation in terms of U.S. stocks, bonds and cash. Convertible securities are now recognized as a global asset class, but in the 1970s, the risk-managed convertible strategies we pioneered were considered esoteric alternatives! The benefits of investing outside the U.S. weren’t widely understood either.
Globalization, economic progress and technology advancements have created new opportunities for investors. I believe our success in serving our clients is a direct result of our ability to see the opportunities that change can bring. But understanding what doesn’t change has been, perhaps, even more important: In every market climate, a successful wealth management strategy must be long term, focusing on capital appreciation and capital preservation.
Over the years, the questions I’ve heard from investors have been remarkably similar. How can I achieve my long-term goals? Will I be financially secure in retirement? How can I ensure that my legacy will benefit future generations? How much do I need to worry about inflation and interest rates?
I look forward to exploring these important topics in greater detail. Whether you’re already a Wealth Management client or are just learning more about our long-term approach to building and preserving wealth, I invite you to visit often.
John P. Calamos, Sr.
Founder, Chairman and Global Chief Investment Officer