“At our core, we are secular growth investors. We’re trying to find stocks that don’t need the economy to be booming, don’t need the Fed to be cutting, don’t need growth to be beating value…if you find stocks that are in their own bull market, that’s a pretty positive backdrop for performance.”
That’s Brandon M. Nelson, Senior Portfolio Manager of the Calamos Timpani Small Cap Growth Fund (CTSIX), to the Wall Street Transcript in a just published interview (download PDF to read).
Nelson elaborates on how the team evaluates small cap opportunities based on two key criteria: sustainable growth and underestimated growth.
This is an especially opportunistic time for small cap growth, according to Nelson.
Noting that small caps are currently trading at discounts relative to large caps, he comments on attractive sectors (technology, health care and consumer discretionary) and themes (SaaS, home health care, online education and defense spending/public safety). And, he explains why CTSIX is largely avoiding industrials, energy and materials. (Also see our map of where CTSIX is finding opportunities).
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Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. We believe the information provided here is 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. The opinions and views of third parties do not represent the opinions or views of Calamos Investments LLC. Opinions are subject to change due to changes in the market, economic conditions or changes in the legal and/or regulatory environment and may not necessarily come to pass. This information is provided for informational purposes only and should not be considered tax, legal, or investment advice. 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.
Important Fund Information
An investment in the Fund(s) is subject to risks, and you could lose money on your investment in the Fund(s). There can be no assurance that the Fund(s) will achieve its investment objective. Your investment in the Fund(s) is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. The risks associated with an investment in the Fund(s) can increase during times of significant market volatility. The Fund(s) also has specific principal risks, which are described below. More detailed information regarding these risks can be found in the Fund’s prospectus.
The principal risks of investing in the Calamos Timpani Small Cap Growth Fund include: equity securities risk consisting of market prices declining in general, foreign securities risk, growth stock risk consisting of potential increased volatility due to securities trading at higher multiples, liquidity risk, portfolio selection risk, portfolio turnover risk, sector risk, and small-sized company risk.
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