As of March 1, Calamos Hedged Equity Income Fund’s name has been changed to Calamos Hedged Equity Fund.
The Perennial Favorite
Chart talk at Calamos starts with the Convertible Fair Value Price Track, the alpha and omega at the firm whose Founder, Chairman and Global CIO John P. Calamos, Sr. pioneered the use of convertible securities. Shown below, this chart visualizes how we establish value through modeling and convertible analysis.
Like most asset managers, we here at Calamos are a chart factory.
With every chart our goal is to present data to support a point. But over the course of a given year, a handful of charts stand out as being especially effective. They communicate on their own. Words are almost superfluous in the presence of a truly excellent chart.
With this post we join blogs across the Internet in offering a year-end roundup. Our focus is on what we’ll call the Calamos Choice Charts of the year. They’re the favorites of our Investment Consultants—whose job it is, by the way, to provide the words that accompany the charts.
Shown below are charts identified by the senior members of our internal sales team as most helpful in introducing a concept, opening financial advisors’ eyes or landing a point in a year characterized by the return of volatility, rising rates and technology stocks’ falling back to earth.
The 2018 Alternative to Fixed Income
“This chart shows how fixed income went one direction in 2018 and our fixed income alternative [Calamos Market Neutral Income Fund or CMNIX] went the other. This was an easy-to-understand message that advisors were happy to share with their clients,” says Brian D. Buonamici, CAIA®, CMFC®, Senior Investment Consultant.
Flexibility Got Noticed in October
“Most advisors had to blink twice when looking at these results in October,” says Lindsay Matchett, CIMA, Senior Investment Consultant. “Our active option-writing team managing Calamos Hedged Equity Income Fund (CIHEX) was able to showcase our flexible philosophy to take advantage of market conditions." For more, see CIHEX Took the Sting Out of S&P 500 Volatility.
For When the Bull Turns to Bear
After February’s market plunge and bounceback and as the bull market approached its ninth anniversary in August, advisors were increasingly interested in equity alternatives. Here’s the chart that Cassandra Nichols, CIMA® and Senior Investment Consultant, found resonated with her contacts.
“Advisors are intrigued by convertibles’ historic ability to capture similar upside but less downside in bear markets,” she says. For more on convertibles, including Calamos Convertible Fund (CICVX), see The Complexities of Investing in Convertibles: What Every Advisor Should Know.
One of These Is Not Like the Others
Advisors are open to looking at solutions that are truly differentiated. And that’s why, Abbas S. Hussain, CIMA® and Senior Investment Consultant, says he’s gotten a favorable response to the chart below, used to discuss Calamos Phineus Long/Short Fund (CPLIX).
“This chart emphasizes [Co-CIO and Senior Portfolio Manager] Michael Grant’s pure active management as a long/short manager compared to many others in the space. With the bull market coming to an end, advisors agree that flexibility will be a key to not only generating returns but also managing risk…“
For more on this, read What You Miss When You Look at CPLIX’s ‘Average’ Annualized Beta from earlier this year.
Category comparisons are important to advisors building asset allocations. Natalie Bedell, CAIA®, Assistant Vice President and Senior Investment Consultant, helps confirm decisions with this chart showing CIHEX versus the S&P and its peers in the Morningstar Options-based Category.
“This chart has been resonating with advisors for two reasons,” she says. “It displays our ability to hedge equity market downside without limiting upside and exhibits our edge in the category. We actively manage our option positions in order to optimize our hedges as opposed to the systematic hedging that we see within our peer group.”
When Technology Tanks
Market risk, did someone say market risk? Yes, they did, and all year. George Sabino, MSF, CAIA®, Senior Investment Consultant, used the series of charts below to help advisors better understand the value of convertibles.
“I use this chart to defend convertibles as an equity replacement to help manage risk. It emphasizes the ‘bond floor’ and how it can hold up when the underlying equity sells off. Again, the visual is easy for advisors to understand. These charts require very little additional commentary to make their point,” he says. For more, see Using Convertibles to Manage Technology Risk.
Check Back with Us on Your Worst Day
CIHEX performance lent itself to fairly dramatic comparisons this year and so we have a third chart, this one favored by Mike Mirrilees, Senior Investment Consultant.
“Our fund has about half the risk and volatility of the S&P 500 as measured by beta and standard deviation. Advisors see that it can improve equity portfolio performance in volatile markets,” he says.
Advisors, for additional information about our charts or our funds, contact your Calamos Investment Consultant at 888-571-2567 or firstname.lastname@example.org.
Calamos ranks fifth on the list of alternative fund managers by assets under management in the Morningstar Alternatives Category as of 9/30/18.