Calamos Timpani Small Cap Growth Fund (CTSIX), available as of June 3, 2019, is the result of Calamos’ acquisition of Timpani Capital Management, a boutique small- and smid-cap investment manager based in Milwaukee. The newly named fund maintains its investment team and track record dating back to 2011 alongside its SMA counterpart with a track record since 2008.
With its high growth style, CTSIX can provide your clients access to small cap companies with high, sustainable growth potential that may exceed market expectations.
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What impact could the 2020 presidential election outcome have on the markets? Brandon M. Nelson, CFA, Senior Portfolio Manager of Calamos Timpani Small Cap Growth Fund (CTSIX), provides a historical analysis.
The recent market rotation, the impact of trade policy uncertainty and corporate debt levels were among topics touched on in our September 24 Calamos Timpani Small Cap Growth webcast attended by hundreds of financial advisors.
In this video series, CTSIX Senior Portfolio Manager Brandon M. Nelson, CFA, explains the team’s small cap growth investment process, describes a representative holding and comments on the fundamental fatigue that would prompt a sell decision.
|Name||% Holding||Symbol||Sector Desc||Industry Name||Market Cap $B||Country of Risk||City|
|Name WNS HOLDINGS LTD-ADR||% Holding 1.63||Symbol WNS||Sector Desc Information Technology||Industry Name Data Processing & Outsourced Services||Market Cap $B 2.9||Country of Risk India||City Mumbai|
|Name GDS HOLDINGS LTD - ADR||% Holding 1.43||Symbol GDS||Sector Desc Information Technology||Industry Name Internet Services & Infrastructure||Market Cap $B 5.8||Country of Risk China||City Shanghai|
|Name SCORPIO TANKERS INC||% Holding 1.24||Symbol STNG||Sector Desc Energy||Industry Name Oil & Gas Storage & Transportation||Market Cap $B 1.6||Country of Risk Monacco||City Monacco|
|Name LIQTECH INTERNATIONAL INC||% Holding 0.77||Symbol LIQT||Sector Desc Industrials||Industry Name Industrial Machinery||Market Cap $B 0.2||Country of Risk Denmark||City Ballerup|
|Name AQUAVENTURE HOLDINGS LTD||% Holding 0.60||Symbol WAAS||Sector Desc Utilities||Industry Name Water Utilities||Market Cap $B 0.6||Country of Risk British Virgin Islands||City Road Town|
|Name NICE LTD - SPON ADR||% Holding 0.46||Symbol NICE||Sector Desc Information Technology||Industry Name Application Software||Market Cap $B 9.1||Country of Risk Israel||City Ra'anana|
A key piece of the CTSIX team’s approach is its avoidance of the emotion and behavior biases that can trip up small company investors.
The team seeks to minimize exposure to the disposition effect, which is the tendency for investors to sell their winners too soon and to keep their losers too long.
Investors subject to anchoring bias can be slow to react to incremental, relevant changes. The prevalence of such a bias helps explain why “growth gaps” exist.
Read more in this Q&A with Senior Portfolio Manager Brandon M. Nelson.
Most financial advisors prefer to use actively managed funds to gain exposure to small cap companies for their clients. With that decision made, others remain. Where should small caps be used? How? With which clients and to what effect?
Read more in our June 2019 research, Building Client Portfolios with Small Cap Growth: Views from Financial Advisors 2019Read the Research
Financial advisors, for our thoughts on optimizing a small cap portfolio allocation, read our whitepaper or get help from the Calamos’ Portfolio Analytics team. Please contact your Calamos Investment Consultant at 888-571-2567 or firstname.lastname@example.org.
Data as of 9/30/19.
The performance shown in the bar chart and performance table is the performance of the Predecessor Fund prior to the commencement of the Fund’s operations. Effective as of the close of business on May 31, 2019, the Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund through a tax-free reorganization (the “Reorganization”). As a result of the Reorganization, the Fund adopted the performance and financial history of the Predecessor Fund. The Fund has the same investment objective, strategy and portfolio manager as the Predecessor Fund. As a result, the performance of the Fund would have been substantially similar to that of the Predecessor Fund.
The bar chart shows the performance of the Predecessor Fund’s Institutional Class which has been adopted by the Class I shares of the Fund for periods prior to the Reorganization. The information shows you how the Predecessor Fund’s performance has varied year by year and provides some indication of the risks of investing in the Fund. The average annual total return table compares the Predecessor Fund’s Institutional Class performance which has been adopted by the Class I shares of the Fund and Class Y performance which has been adopted by the Class A shares of the Fund and adjusted to reflect the maximum sales load of 4.75% for Class A shares, to that of the Russell 2000 Growth Index. “Since Inception” return shown for the Russell 2000 Growth Index is the return since the inception of the Predecessor Fund’s Class Y shares. The average annual total return table does not show performance information for Class R6 shares as the Class R6 shares had not commenced investment operations as of the date of this prospectus. An index reflects no deduction for fees, expenses or taxes. To the extent that dividends and distributions have been paid by the Predecessor Fund, the performance information for the Predecessor Fund in the chart and table assumes reinvestment of the dividends and distributions. If the Predecessor Fund’s investment adviser had not waived or reimbursed certain Predecessor Fund expenses during these periods, the Predecessor Fund’s returns would have been lower. As always, please note that the Fund’s past performance (before and after taxes) cannot predict how it will perform in the future. Updated performance information is available at no cost by visiting www.calamos.com or by calling 800.582.6959.
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.
The Morningstar Small Growth Category includes small-growth portfolios that focus on faster-growing companies whose shares are at the lower end of the market-capitalization range.
The Russell 2000 Growth Index is a composite of small cap companies located in the U.S. that also exhibit a growth probability.
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.
Important Risk Information. 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.
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.