An Alternative Idea for Stock Investors: Long/Short 101

long short equity 101

The objective of a long/short equity strategy is to provide equity-like returns with less volatility than the equity market, by profiting from stocks that are rising in price as well as those whose stock prices are falling.

To find out more about how the strategy works, its benefits and how to deploy long/short equity in your asset allocation mix, download our explainer.

Download Long/Short Equity 101

Long/short equity is an example of an alternative strategy—a strategy that takes an approach to building wealth that’s different from investing long in stocks or fixed income. Calamos is the eighth largest liquid alternative manager by assets under management, according to Morningstar data as of 9/30/17 (see Our Alternatives Work post).

Advisors, to learn more about alternatives, long/short equity or our Calamos Phineus Long/Short Fund (CPLIX), talk to your Calamos Investment Consultant at 888-571-2567 or email caminfo@calamos.com.

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    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 which can be obtained by calling 1-800-582-6959. Read it carefully before investing.

    Alternative investments are not suitable for all investors.

    The principal risks of investing in long/short equity strategies include: Equity securities risk— securities markets are volatile and market prices may decline generally; Short sale risk—a portfolio may incur a loss without limit as a result of a short sale if the market value of the security increases, or a manager is unable to repurchase a borrowed security; Leverage risk—certain transactions such as loans and securities lending may create leverage and cause the portfolio to be more volatile; Foreign securities risk— fluctuations of exchange rates may affect the U.S. dollar value of a security.

    *Short positions do entail added risks, which should be discussed with a financial advisor.

    This material is distributed for informational purposes only. The information contained herein is based on internal research derived from various sources and does not purport to be statements of all material facts relating to the information mentioned, and while not guaranteed as to accuracy or completeness, has been obtained from sources we believe to be reliable.

    Opinions, estimates, forecasts, and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. The views and strategies described may not be suitable for all investors. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations. Outside the U.S., this presentation is directed only at professional/sophisticated investors and it is for their exclusive use and information.

    Some of the risks associated with investing in alternatives may include hedging risk–hedging activities can reduce investment performance through added costs; derivative risk–derivatives may experience greater price volatility than the underlying securities; short sale risk - investments may incur a loss without limit as a result of a short sale if the market value of the security increases; interest rate risk–loss of value for income securities as interest rates rise; credit risk–risk of the borrower to miss payments; liquidity risk–low trading volume may lead to increased volatility in certain securities; non-U.S. government obligation risk–non-U.S. government obligations may be subject to increased credit risk; portfolio selection risk – investment managers may select securities that fare worse than the overall market.


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    Archived material may contain dated performance, risk and other information. Current performance may be lower or higher than the performance quoted in the archived material. For the most recent month-end performance information, please CLICK HERE. Archived material may contain dated opinions and estimates based on our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions at the time of publishing. We believed the information provided here was 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.

    Performance data quoted represents past performance, which is no guarantee of future results. Current performance may be lower or higher than the performance quoted. The principal value and return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Performance reflected at NAV does not include the Fund’s maximum front-end sales load. Had it been included, the Fund’s return would have been lower. For the most recent month-end fund performance information visit www.calamos.com.

    Archived material may contain dated performance, risk and other information. Current performance may be lower or higher than the performance quoted in the archived material. For the most recent month-end fund performance information visit www.calamos.com. Archived material may contain dated opinions and estimates based on our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions at the time of publishing. We believed the information provided here was 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.

    Performance data quoted represents past performance, which is no guarantee of future results. Current performance may be lower or higher than the performance quoted. The principal value and return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Performance reflected at NAV does not include the Fund’s maximum front-end sales load. Had it been included, the Fund’s return would have been lower.

    Archived on December 19, 2018