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★★★★★ for Calamos Timpani Small Cap Growth Fund (CTSIX)

Over the past several months, we’ve reviewed multiple reasons to like small caps and specifically Calamos Timpani Small Cap Growth Fund (CTSIX):

Calamos Timpani Small Cap Growth Fund (CTSIX)

Morningstar Overall RatingTM Among 574 Small Growth funds. The Fund's risk-adjusted returns based on load-waived Class I Shares had 4 stars for 3 years, 5 stars for 5 years and 5 stars for 10 years out of 574, 504 and 380 Small Growth Funds, respectively, for the period ended 10/31/2021.

  • The expectation that small caps’ exceptional growth will continue into next year as large caps’ earnings growth recedes—and specifically CTSIX Senior Portfolio Manager Brandon M. Nelson and team’s historical success in identifying winners (see post).
  • The current record pace of small cap mergers and acquisitions, which is expected to accelerate ahead of anticipated higher capital gains taxes (see post).
  • The historical pattern that when small caps take off, their rallies last for years (see post).

Today, we can give you a new reason: those five stars that CTSIX now proudly bears. As you know, Morningstar ratings are a measure of a fund’s risk-adjusted return, with “the best performers receiving 5 stars.”

growth of $10k

The fund has followed its 63% 2020 with a 20.16% YTD return through 10/31 that’s 500 basis points ahead of its peers in Morningstar’s Small Growth category and close to three times the Russell 2000 Growth Index return of 7.64%.

Of the 574 funds in the Morningstar category, CTSIX is one of just 13 five-star funds with less than $1 billion in assets under management. With $390 million AUM at 9/30, the fund can take stakes in smaller companies that larger funds can’t, and those additions can make a meaningful contribution to overall performance.

The rating acknowledges the fund’s past performance, but Nelson is focused on the opportunities ahead. At a time of innovation and growth, “Our biggest question day to day,” he says, “is what are we going to sell to fund the purchase of this other great idea that we want to own, or to fund the purchase of enlarging a position in an existing holding. It’s a constant struggle to figure out what to reduce exposure to.”

Investment professionals, to find out more about CTSIX, reach out to your Calamos Investment Consultant at 888-571-2567 or caminfo@calamos.com.

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.

Calamos Timpani Small Cap Growth Fund average annual returns and expense ratio

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 information provided here is reliable, but do not warrant its accuracy or completeness. The material is not intended as an offer or solicitation for the purchase 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 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. The securities highlighted are discussed for illustrative purposes only. They are not recommendations.

Important Risk 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, growth stock risk consisting of potential increased volatility due to securities trading at higher multiples, and portfolio selection risk. The Fund invests in small capitalization companies, which are often more volatile and less liquid than investments in larger companies. As a result of political or economic instability in foreign countries, there can be special risks associated with investing in foreign securities, including fluctuations in currency exchange rates, increased price volatility and difficulty obtaining information. In addition, emerging markets may present additional risk due to potential for greater economic and political instability in less developed countries.

Morningstar Small Growth Category funds focus on faster-growing companies whose shares are at the lower end of the market-capitalization range. Stocks in the bottom 10% of the capitalization of the U.S. equity market are defined as small cap. Growth is defined based on fast growth (high growth rates for earnings, sales, book value, and cash flow) and high valuations (high price ratios and low dividend yields).

Morningstar RatingsTM are based on risk-adjusted returns and are through 10/31/21 for the share class listed and will differ for other share classes. Morningstar ratings are based on a risk-adjusted return measure that accounts for variation in a fund's monthly historical performance (reflecting sales charges), placing more emphasis on downward variations and rewarding consistent performance. Within each asset class, the top 10%, the next 22.5%, 35%, 22.5%, and the bottom 10% receive 5, 4, 3, 2 or 1 star, respectively. Each fund is rated exclusively against U.S. domiciled funds. The information contained herein is proprietary to Morningstar and/or its content providers; may not be copied or distributed; and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Source: ©2021 Morningstar, Inc.

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