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Up 8% When the S&P 500 Was Down 8%—CPLIX Performance Leads Our Alts’ YTD Success in Beating the Market

“When we get into these messy periods, I never want [Calamos Phineus Long/Short Fund (CPLIX)] to be the problem fund in a client’s portfolio. I want investment professionals to have three or four or five other funds that they have to explain before they get to our fund,” said Michael Grant, Co-CIO, Senior Co-Portfolio Manager and Head of Long/Short Strategies, on a recent call with investment professionals.

CPLIX is managed to produce competitive equity returns, “cutting off the volatility tails. If you can cut off the volatility tails, that has huge value in a portfolio,” he said.

If there’s any explaining to be done about CPLIX this year, it will be in illustration of the benefit of using the equity alternative to diversify. When volatility and uncertainty in the first two months of 2022 led to an unsettling time for investors and produced a negative S&P 500 return of -8.01% as of February’s end, CPLIX’s return was 800 basis points in the other direction. The fund is up 8.32% year to date as of Feb. 28.

Listen to Grant’s Feb. 16 update on the fund or read a summary of the call here.

cplix vs s&p 500

Indeed, the Calamos liquid alternatives suite has performed as expected this year.

funds vs peers, benchmarks

CIHEX for De-risking

Calamos Hedged Equity Fund (CIHEX) is used to potentially de-risk an equity portfolio without giving up all of the equity upside potential (and see a few other ways the fund is used). The portfolio management team provided an update last Thursday—a replay of the call is available here or read a summary.

cihex vs s&p 500

CMNIX, Since 1990

Below note the steadiness of Calamos Market Neutral Income Fund (CMNIX) vs. the S&P 500. And, see how the fixed income alternative did a better job of battling traditional fixed income. The CMNIX team presented on a Feb. 17 call (replay here) and a summary blog post.

cmnix vs s&p 500

cmnix vs bloomberg us govt/credit index

Investment professionals, please talk to your Calamos Investment Consultant about putting our alternatives to work for your clients’ portfolios in the likely volatile days ahead. You can reach him or her 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 Phineus Long/Short Fund average annual returns and expense ratio

Calamos Hedged Equity Fund average annual returns and expense ratio

Calamos Market Neutral Income 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 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. 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.

The principal risks of investing in Calamos Market Neutral Income Fund include: equity securities risk consisting of market prices declining in general, convertible securities risk consisting of the potential for a decline in value during periods of rising interest rates and the risk of the borrower to miss payments, synthetic convertible instruments risk, convertible hedging risk, covered call writing risk, options risk, short sale risk, interest rate risk, credit risk, high yield risk, liquidity risk, portfolio selection risk, and portfolio turnover risk.

The principal risks of investing in the Calamos Hedged Equity Fund include: covered call writing risk, options risk, equity securities risk, correlation risk, mid-sized company risk, interest rate risk, credit risk, liquidity risk, portfolio turnover risk, portfolio selection risk, foreign securities risk, American depository receipts, and REITs risks. As of March 1, Calamos Hedged Equity Income Fund’s name has been changed to Calamos Hedged Equity Fund.

The principal risks of investing in the Calamos Phineus Long/Short Fund include: equity securities risk consisting of market prices declining in general, short sale risk consisting of potential for unlimited losses, foreign securities risk, currency risk, geographic concentration risk, other investment companies (including ETFs) risk, derivatives risk, options risk, and leverage risk. 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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