The Calamos Phineus Long/Short Fund (CPLIX) ended the year with a 12.89% return, besting both the S&P 500 and the MSCI World Index and outperforming the Morningstar U.S. Funds Long/Short category return of 2.41%.
Data as of 12/31/16.
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.
*The percentile and category rankings illustrated are created by Calamos Financial Services LLC. The percentile rank measures the Fund's total return among the Morningstar U.S. Funds Long/Short Category. The percentile rank shown for periods prior to 4/6/16 is the percentile rank of a predecessor investment vehicle (the "Predecessor Fund"). The Predecessor Fund was reoranized into the Fund on 4/6/16. The Fund is included in the Morningstar U.S. Fund Long/Short category as of 4/6/16. This is the fund's total-return percentile rank relative to all funds that have the same category for the same time period.
Morningstar Ratings are based on I share total return and are through 12/31/16 and will differ for other share classes.
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Windows Opened and Closed
It was a year characterized by volatility and sudden market reactions to transformative events that included the departure of the U.K. from the European Union and the election of outsider Donald Trump as U.S. President. Opportunities opened and closed and CPLIX’s unconstrained structure enabled it to take advantage.
Here’s a look at how the fund performed through the market highs and lows of 2016. In addition, see the notes on how the investment thesis of the global long/short team led by Michael Grant evolved as the year progressed.
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The sector weightings below suggest some of the significant portfolio adjustments that were made. Long selection in financials and information technology (the two largest weightings for most of the year) provided the largest contribution to performance while short exposure in consumer staples and long positions in European equities hindered performance. Throughout the year, Grant repeatedly cautioned investors about overpaying for stability in consumer staples. The stake in Europe represents the team expectation—regardless of current investor pessimism in a politically uncertain environment—that European equities could rebound.
Q1 2016 sector weightings not shown as the Calamos Phineus Long/Short Fund was launched in April 2016.
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Sector weightings, which are subject to change daily, are calculated as a percentage of Net Assets. The table excludes cash or cash equivalents, and any government / sovereign bonds the portfolio may hold. Exchange traded funds and index options are included in the Other category. You can obtain a complete listing of holdings by visiting www.calamos.com.
Producing equity-like returns with a superior risk profile is the fund’s objective—accomplished in 2016, as demonstrated by the following measures.
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For more information, please talk to your Calamos Investment Consultant 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 1-866-363-9219. Read it carefully before investing.
As of 12/31/2016. Inception as of 5/1/2002.
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance quoted. The principal value of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. A Shares at NAV returns do not include the fund’s maximum 4.75% front-end sales load. Had it been included returns would have been lower. You can obtain performance data current to the most recent month end by visiting 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.
There can be no assurance that the Fund(s) will achieve its investment objective.
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.
*The performance shown for periods prior to 4/5/16 is the performance of a predecessor investment vehicle (the “Predecessor Fund”). The Predecessor Fund was reorganized into the Fund on 4/5/16, the date upon which the Fund commenced operations. On October 1, 2015 the parent company of Calamos Advisors, purchased Phineus Partners LP, the prior investment adviser to the Predecessor Fund (“Phineus”), and Calamos Advisors served as the Predecessor Fund’s investment adviser between October 1, 2015 until it was reorganized into the Fund. Phineus and Calamos Advisors managed the Predecessor Fund using investment policies, objectives, guidelines and restrictions that were in all material respects equivalent to those of the Fund. Phineus and Calamos Advisors managed the Predecessor Fund in this manner either directly or indirectly by investing all of the Predecessor Fund’s assets in a master fund structure. The Predecessor Fund performance information has been adjusted to reflect Class A and I share expenses. However, the Predecessor Fund was not a registered mutual fund and thus was not subject to the same investment and tax restrictions as the Fund. If it had been, the Predecessor Fund’s performance may have been lower.
Class I shares are offered primarily for direct investment by investors through certain tax-exempt retirement plans (including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans, defined benefit plans and non-qualified deferred compensation plans) and by institutional clients, provided such plans or clients have assets of at least $1 million. Class I shares may also be offered to certain other entities or programs, including, but not limited to, investment companies, under certain circumstances.
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 do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in an index.
The S&P 500 Index is a market weighted index and is widely regarded as the standard for measuring U.S. stock market performance.
MSCI World Index is a market capitalization weighted index composed of companies representative of the market structure of 21 developed market countries in North America, Europe, and the Asia/Pacific region. 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. The MSCI World Index consists of the following 23 developed market country indexes: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States.
Morningstar US Funds Long/Short Category: Long-short portfolios hold sizable stakes in both long and short positions in equities and related derivatives. Some funds that fall into this category will shift their exposure to long and short positions depending on their macro outlook or the opportunities they uncover through bottom-up research. Some funds may simply hedge long stock positions through exchange-traded funds or derivatives. At least 75% of the assets are in equity securities or derivatives.
Alpha. A historical measure of risk-adjusted performance. Alpha measures how much of a portfolio’s performance is attributable to investment-specific factors versus broad market trends. A positive alpha suggests that the performance of a portfolio was higher than expected given the level of risk in the portfolio. A negative alpha suggests that the performance was less than expected given the risk.
Sortino ratio. The excess return over the risk-free rate divided by the downside semi-variance, and so it measures the return to "bad" volatility. (Volatility caused by negative returns is considered bad or undesirable by an investor, while volatility caused by positive returns is good or acceptable.)
Upside/downside capture ratios show you whether a given fund has outperformed-gained more or lost less than-a broad market benchmark during periods of market strength and weakness, and if so, by how much. Upside capture is calculated by taking the fund's monthly return during months when the benchmark had a positive return and dividing it by the benchmark return during that same month. Downside capture is calculated by taking the fund's monthly return during the periods of negative benchmark performance and dividing it by the benchmark return.
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.
