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Investment Team Voices

The Cycle Prevails: Why Fundamentals Should Dominate Valuation Concerns

John Hillenbrand
January 2, 2026

We favor equities over credit in 2026, supported by above-consensus US growth, easing Fed policy, and AI's pivot from infrastructure to monetization. Quality fundamentals justify elevated valuations despite concentration risks. Multi-asset positioning balances growth exposure through convertible securities and options overlays, emphasizing diversification in AI adopters, financials, and healthcare.

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Top-Notch Timpani Performance in 2025, Superb Small-Cap Set-Up in 2026

Brandon Nelson, CFA
January 2, 2026

The Calamos Timpani Small Cap and SMID Growth Funds significantly outperformed peers and benchmarks in 2025 despite challenging conditions for active managers. Strong security selection and fundamental momentum investing drove success. With favorable valuations and policy tailwinds, smaller-cap stocks appear well-positioned for outperformance in 2026.

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Tailwinds Ahead: Cyclical Drivers and Secular Innovation in 2026

Nick Niziolek, Dennis Cogan, Paul Ryndak, Kyle Ruge
January 2, 2026

In 2025, globally diversified portfolios captured strong returns as international markets outperformed. Heading into 2026, we remain optimistic about cyclical opportunities driven by weak dollar dynamics and fiscal stimulus, as well as secular themes such as AI infrastructure and defense spending. We expect international markets to continue outperforming.

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Solid Ground, Shifting Winds: Navigating a Nuanced Credit Market

Matt Freund, Christian Brobst, Charles E. Carmody
January 2, 2026

The Calamos fixed income team expects solid corporate credit fundamentals and supportive technical conditions to continue into 2026, driven by fiscal tailwinds from tax legislation. However, ongoing Fed easing, large deficits, and inflation uncertainty warrant defensive positioning. As such we are migrating toward higher credit quality while preserving income.

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Diversified, Quality-Focused Portfolios Well-Positioned for 2026

Jim Madden, Tony Tursich, Beth Williamson
January 2, 2026

Quality-focused, diversified portfolios are well-positioned for 2026 as AI winners emerge and economic growth potentially broadens. Quality stocks, trading below their historical valuations after underperforming during the 2025 risk-on rally, appear poised for a rebound. High-quality companies with justified valuations and strong fundamentals should outperform unprofitable momentum plays.

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