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Expertise, Conviction, Discipline and Results: The CTSIX Approach to Fast-Growing Small Caps

introducing Timpani

Today we’re announcing the availability of Calamos Timpani Small Cap Growth Fund (CTSIX), the result of Calamos’ acquisition of Timpani Capital Management, a boutique small- and smid-cap investment manager based in Milwaukee. The newly named fund maintains its investment team and track record of more than eight years.

Financial advisors may find much to like about CTSIX, including:

  • A long-term specialization in small cap growth companies. Senior Portfolio Manager Brandon Nelson naturally gravitated to small cap stocks years ago.

    ctsix has demonstrated a higher growth styleconsistently since inception

    “Things can go south fast, stories change, fundamentals change, and investors can get blindsided,” Nelson acknowledges in this Q&A. And yet, he says he likes the pressure—and the potential for disproportionate reward.

  • Its investment philosophy. CTSIX combines fundamental research with the analysis of estimate revisions to identify the underestimated growth gap between a company’s business strength and market expectations of that strength. The team’s unemotional, value-added sell discipline is designed to avoid the pitfalls of well documented biases. Read more in the fact sheet.

  • Differentiated active management that has produced benchmark-beating performance since I share inception. From a universe of 1,500 stocks with less than $4 billion market cap, the CTSIX team builds a portfolio of 80-120 fast-growing stocks. To break into the portfolio, a company needs to have established an emerging record of exceeding expectations. To remain in the portfolio, the company needs to have exhibited several quarters of exceeding and raising expectations. Contrast that with the holdings of the Russell 2000, an index that’s reconstituted once a year.

  • The fund’s size. With $76 million in assets, CTSIX is able to take meaningful positions in some of the fastest and smallest growers.

  • Style fidelity. CTSIX has been parked in the bottom right corner of the Morningstar style box since inception. “Whether fundamental momentum is in vogue or not, we’re not going to deviate from our strategy and our philosophy. And, that’s what our clients have told us that they appreciate most—they know what they’re getting. They know that we’re not going to drift stylistically,” says Nelson.

Advisors, there’s more to say about CTSIX and where it might work for your clients. Talk 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.

Data as of 3/31/19.

Calamos Timpani Small Cap Growth Fund average annual returns data as of 3-31-19

The performance shown in the bar chart and performance table is the performance of the Predecessor Fund prior to the commencement of the Fund’s operations. Effective as of the close of business on May 31, 2019, the Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund through a tax-free reorganization (the “Reorganization”). As a result of the Reorganization, the Fund adopted the performance and financial history of the Predecessor Fund. The Fund has the same investment objective, strategy and portfolio manager as the Predecessor Fund. As a result, the performance of the Fund would have been substantially similar to that of the Predecessor Fund.

The bar chart shows the performance of the Predecessor Fund’s Institutional Class which has been adopted by the Class I shares of the Fund for periods prior to the Reorganization. The information shows you how the Predecessor Fund’s performance has varied year by year and provides some indication of the risks of investing in the Fund. The average annual total return table compares the Predecessor Fund’s Institutional Class performance which has been adopted by the Class I shares of the Fund and Class Y performance which has been adopted by the Class A shares of the Fund and adjusted to reflect the maximum sales load of 4.75% for Class A shares, to that of the Russell 2000 Growth Index. “Since Inception” return shown for the Russell 2000 Growth Index is the return since the inception of the Predecessor Fund’s Class Y shares. The average annual total return table does not show performance information for Class R6 shares as the Class R6 shares had not commenced investment operations as of the date of this prospectus. An index reflects no deduction for fees, expenses or taxes. To the extent that dividends and distributions have been paid by the Predecessor Fund, the performance information for the Predecessor Fund in the chart and table assumes reinvestment of the dividends and distributions. If the Predecessor Fund’s investment adviser had not waived or reimbursed certain Predecessor Fund expenses during these periods, the Predecessor Fund’s returns would have been lower. As always, please note that the Fund’s past performance (before and after taxes) cannot predict how it will perform in the future. Updated performance information is available at no cost by visiting www.calamos.com or by calling 800.582.6959.

Calamos Timpani Small Cap Growth Fund expense data as of 3-31-19

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.

The Morningstar Small Growth Category includes small-growth portfolios that focus on faster-growing companies whose shares are at the lower end of the market-capitalization range.

The Russell 2000 Growth Index is a composite of small cap companies located in the U.S. that also exhibit a growth probability.

Unmanaged index returns assume reinvestment of any and all distributions and, unlike fund returns, do not reflect fees, expenses or sales charges. Investors cannot invest directly in an index.

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.

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