Calamos Investments' convertible strategy delivered a robust performance in the second quarter of 2025, showcasing its effectiveness in navigating market dynamics. The portfolio's growth was driven by astute security selection and a deliberate focus on the information technology sector, leading to returns that surpassed industry benchmarks.
Calamos US Convertible Strategy: Q2 2025 Performance Highlights
For the quarter ending June 30, 2025, the Calamos US Convertible Strategy reported an impressive return of 11.74% on a gross-of-fees basis and 11.55% net of fees. This performance significantly outpaced the ICE BofA All US Convertibles Index, which registered an 8.88% return over the same period. This notable outperformance underscores the strength of the portfolio's investment approach.
A key factor contributing to these strong results was the team's precise security selection. By identifying and investing in companies poised for growth, the strategy was able to harness positive market movements effectively. Furthermore, an average overweight position in the information technology sector proved to be a strategic advantage, aligning the portfolio with a high-growth segment of the market. While the energy sector saw an average underweight allocation, which marginally impacted returns, the overall strategy's positive attributes dominated. The convertible market itself experienced a period of strong performance, successfully capturing the upside of the equity market while demonstrating resilience during more volatile periods. The quarter also saw an encouraging trend in new issuance within the convertible market, signaling a healthy environment for this investment class. The investment philosophy at Calamos Investments centers on identifying companies that are well-situated to benefit from both long-term secular trends and shorter-term cyclical growth, a methodology that clearly bore fruit in Q2 2025.
The stellar performance of Calamos Investments' convertible strategy in Q2 2025 offers valuable insights into the importance of active management and sector-specific expertise. The success achieved through careful security selection and strategic allocation to high-growth sectors like information technology highlights that, even in diverse market conditions, a well-defined and expertly executed investment strategy can yield superior results. This underscores the potential for convertible securities to offer both upside participation and downside protection, making them a compelling option for investors seeking balanced growth.