"It's a fantastic environment for small caps," Brandon M. Nelson, CFA, Senior Portfolio Manager of Calamos Timpani Small Cap Growth Fund (CTSIX), says at the start of this recent video interview with Robert F. Behan, CFA, Calamos President and Head of Global Distribution.
Relatively insulated from trade policy anxiety and other macroeconomic considerations, small caps can continue to execute on their plans, he says. He offers possible reasons for the current decade-high disparity between valuations of small caps and large caps, while suggesting that the disconnect won't last forever.
Otherwise, he says, the market is acting rationally, punishing small caps that were underperforming based on their fundamentals while disproportionately rewarding those with fundamental upside. It's in the work of "sniffing out" the fundamental upside where Nelson believes actively managed CTSIX can add value.
Financial advisors, learn more about Nelson's views on current valuations and growth opportunities in small caps—register for our September 24 webcast and on-demand replay.
For more information about CTSIX, talk to your Calamos Investment Consultant at 888-571-2567 or email@example.com.
Click here to view CTSIX's standardized performance.
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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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