Investment Ideas Home Page
April 2 Webcast: Join the CMNIX, CIHEX Team on Monetizing Volatility
March 12, 2019
Here’s the heartbreak of today’s markets: Most investors traumatized by last year’s volatility have missed 2019’s rally.
The CBOE Volatility Index (VIX) has been halved since Christmas Eve and the S&P 500 had its best two-month start since 1991 (up 11% year-to-date). But the damage has been done.
In a repeat of a pattern that financial advisors well know, fear of loss in the market drove investors out of stocks at the wrong time. Goldman Sachs has reported that the gap between equity performance and equity fund flows is the widest since the financial crisis.
But there’s more than one response to volatility than to give up.
Advisors, join us at 1 p.m. EDT Tuesday, April 2, to learn how hedged options strategies offer a way to keep your clients in the market—with the potential to participate in any upside—while potentially protecting them against the downside.
You’ll hear from the portfolio management team that led the industry in alternative fund flows in 2018 (Morningstar data, 12/31/18). They’ll explain their dynamic approach designed to capitalize on market volatility and generate diversifying alpha, as demonstrated in the 2018 performance of our two ★★★★★ funds: equity substitute Calamos Hedged Equity Fund (CIHEX)* and fixed income substitute Calamos Market Neutral Income Fund (CMNIX)**. (For more on 2018, see When Volatility Attacked, CMNIX and CIHEX Were Ready.)
Market volatility—the downside of the upside—is an eventuality to be planned for.
On April 2 we’ll discuss where and how to use CIHEX and CMNIX in support of keeping your clients invested both during volatility and its aftermath.
For more information, register here or contact your Calamos Investment Consultant at 888-571-2567 or email [email protected].
Calamos is the fourth largest alternatives manager by assets under management and #1 in alternative flows for 2018 (Morningstar data, 12/31/18).
*Overall Morningstar rating among 94 Options-based Funds: The fund’s load-waived Class I shares had 5 stars for 3 years out of 94 Options-based Funds for the period ended 12/31/18.
**Overall Morningstar rating among 122 Market Neutral Funds: The fund’s load-waived Class I shares had 4 stars for 3 years, 4 stars for 5 years, and 5 stars for 10 years out of 122, 98 and 31 Market Neutral Funds, respectively, for the period ended 12/31/18.
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.
S&P 500 Index is generally considered representative of the U.S. stock market.
Unmanaged index returns assume reinvestment of any and all distributions and do not reflect fees, expenses or sales charges. Investors cannot invest directly in an index.
Citigroup 30-Day T-Bill Index is generally considered representative of the performance of short-term money market instruments.
Bloomberg Barclays U.S. Government/Credit Index comprises long-term government and investment grade corporate debt securities and is generally considered representative of the performance of the broad U.S. bond market. Unlike convertible bonds, U.S. Treasury bills are backed by the full faith and credit of the U.S. government and offer a guarantee as to the timely repayment of principal and interest.
Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and non-agency).
Morningstar Market Neutral Category represent funds that attempt to eliminate the risks of the market by holding 50% of assets in long positions in stocks and 50% of assets in short positions.
Morningstar Options-based Category funds use options as a significant and consistent part of their overall investment strategy. Trading options may introduce asymmetric return properties to an equity investment portfolio. These investments may use a variety of strategies, including but not limited to: put writing, covered call writing, option spread, options-based hedged equity, and collar strategies. In addition, option writing funds may seek to generate a portion of their returns, either indirectly or directly, from the volatility risk premium associated with options trading strategies.
Morningstar Ratings™ are based on risk-adjusted returns and are through 12/31/18 for Class I shares and will differ for other share classes. Morningstar ratings are based on a risk-adjusted return measure that accounts for variation in a fund’s monthly historical performance (reflecting sales charges), placing more emphasis on downward variations and rewarding consistent performance. Within each asset class, the top 10%, the next 22.5%, 35%, 22.5%, and the bottom 10% receive 5, 4, 3, 2 or 1 star, respectively. Each fund is rated exclusively against U.S. domiciled funds. The information contained herein is proprietary to Morningstar and/or its content providers; may not be copied or distributed; and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Source: ©2019 Morningstar, Inc.