Small Cap Stars Are Aligning: You’re Going to Want to Hear What CTSIX’s Nelson Says Dec. 8
November 24, 2021
From Barron’s (“Small-Company Stocks Are in Line to Be Big Winners in 2022”) to The Wall Street Journal (“Inflation Bets Give a Boost to Small-Cap Stocks”) to Yahoo Finance (“Are Small Caps the Best Bets for 2022?”), everyone’s talking about small caps lately.
Investment professionals, join our December 8 call to hear our PM make the case for assuring that your clients’ portfolios are adequately exposed to small caps now. Calamos Timpani Small Cap Growth Fund (CTSIX) Senior Portfolio Manager Brandon M. Nelson is bullish, and you’ll hear his views on the alignment of several supportive factors: fundamentals, valuations, earnings revisions, and even the seasonality that has historically favored small caps.
CTSIX closed 2020 with a 63% return or 2800 basis points more than the Russell 2000 Growth Index. Even as investors favored small cap value for most of this year, CTSIX—one of the “growthier” funds in its Morningstar category—outperformed. Compare the fund’s YTD return of 20.16% (as of 10/31/21) with the returns of the Russell 2000 Growth Index (+7.64%) and Morningstar Small Growth category (+15.43%).
Small caps began an extended cycle of outperformance starting last September. Fourteen months in—including a period of underperformance from March to September—a winning small cap streak could have more than five years to go, with much of the gains still to come, according to Nelson. When small caps beat large caps, the magnitude of outperformance is about five to one, as shown below with data as of 10/31.
There’s a lot to talk about. Join our call—and get your questions answered, too—Wednesday, Dec. 8.
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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.
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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 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 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 November 24, 2022