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CPLIX Makes News for Unconstrained Approach that Gets Results
May 5, 2017
“When you allocate to a long-only fund, which is the traditional approach to equities, that allocation is constrained. For better or for worse, you are ‘in the market.’
“One advantage of the long/short structure—which has potential to benefit as much by the market going down as the market going up—is that a manager does not need to commit to equities if conditions argue otherwise.”
So explains Calamos Phineus Long/Short Fund Co-Portfolio Manager Michael Grant in the cover story of the April issue of the National Association of Personal Financial Advisors (NAPFA) magazine (download Introducing Long/Short Investing to Clients PDF).
The bylined article elaborates on how the fund uses unconstrained investing to take advantage of a wider array of moves depending upon market conditions.
‘One of the Smartest Guys’: MarketWatch
The NAPFA article was the latest in a series of media coverage about the fund.
Earlier in the month, MarketWatch profiled Michael as “one of the smartest guys in the room,” a label given after the writer screened for active managers that beat their “Morningstar-designated benchmark over the past three and five years." (See One Year Later: CPLIX Consistency Connects with Advisors.)
The article quotes him as saying that making calls on recent big picture issues (i.e., Fed policy, European unity, China’s debt and trends in the economy, interest rates and currencies) “goes against the grain” for many managers. They prefer to “diversify around” such decisions.
Some managers have yet to adapt their business model from relying heavily on company analysis to include macro analysis, Michael says in the article. For more, download the reprint.
For added insight on how to use CPLIX and what to expect of the fund, see this sponsored InvestmentNews Q&A (download PDF) with Michael Grant.
In the article, Michael explains, “Equities offer the promise of superior returns because they embody higher risk; if you don’t take risk, you don’t earn returns. After 2008, many long/short funds generated mediocre returns because they stopped taking risk.
“While long/short offers some diversification benefits, that should be the dominant motive. The dominant motive should be superior returns. My mandate is to weigh and assume risk sensibly, rather than avoid it," he says.
For more information, please see the fund’s profile. Advisors, contact your Calamos Investment Consultant at 888-571-2567 or [email protected].
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. 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 of 4.75%. Had it been included, the Fund’s return would have been lower. For the most recent month-end fund performance information visit www.calamos.com.
Alternative investments may not be suitable for all investors, and the risks of alternative investments vary based on the underlying strategies used. Many alternative investments are highly illiquid, meaning that you may not be able to sell your investment when you wish to.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.
Unmanaged index returns assume reinvestment of any and all distributions and do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in an index.
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.
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.
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 or call 1-800-582-6959. Read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE