NAPERVILLE, Ill., Aug. 10, 2001 (PRIMEZONE) -- For most investors, the end of the market turbulence we have witnessed cannot come soon enough. While no one can predict an exact time when the market will rebound, at least one prominent investor sees good news on the horizon and is preparing for an upturn.
"We're in a very, very difficult market environment right now and volatility is almost guaranteed to continue. While the market has been slow to catch fire, we believe this has given us time to restructure our portfolios in anticipation of roar back in the market," says John Calamos, President of Calamos Asset Management of Naperville, Ill., advisor to the Calamos Family of Funds. "The challenge is to determine just when, not if, the market will stage a sustainable upturn."
While Calamos predicts the continuation of a turbulent market, he sees positive indicators of better times ahead. "We believe inflation will not pose an additional threat to the economy any time soon. We anticipate that inflation levels will continue to remain in check, and we should remain in this low inflation environment globally," Calamos added.
"We are taking a cautious approach to the market for the short-term, but we have a more positive outlook for the longer term," Calamos noted. "Unlike the last half of the '90s, where a small number of mega-cap and tech names drove the indexes, success in the next few years will be the function of individual stock selection," Calamos predicted.
Since 1977, Calamos Asset Management has been recognized as a leader in the investment management of convertible securities. In 2001, the firm has seen total assets under management top the $7.6 billion mark. While Calamos' name has traditionally been associated with this esoteric asset class, the performance of the firm's midcap growth fund cannot be ignored. Investors, in fact, have taken notice of the Calamos Growth Fund, which according to Morningstar, is the number one performing growth fund for both the five-year period and 10-year period ended June 30, 2001. Morningstar compared all funds with a prospectus objective of growth. Calamos Growth Fund ranked #1 for five and 10 years out of 913 and 287 funds, respectively, and 976 out of 2481 for one-year ended June 30, 2001. Rankings are for Class A shares at net asset value and do not reflect applicable sales charges. Source: Morningstar, Inc.
Calamos believes investors may continue to reap the rewards of events that have taken place year to date in 2001. "Good asset allocation and longer-term sector plays are continuing to pay dividends for our investors." The recent climate for convertible bonds also bodes well for investors. "The convertible market continues to be one of the most attractive ways for companies to raise capital, so there will continue to be compelling opportunities in this arena," says Calamos.
Calamos continues to focus on opportunities within the mid-cap sector of the equity market, and is currently bullish on the gaming industry, as well as some companies within the retail and biotechnology sectors. While Calamos has recently trimmed portfolio weightings in telecommunications and financials, he still likes both sectors for the near term.
In pursuing its strategy of combining proprietary quantitative research modeling with in-depth analytical research, the firm has been able to produce competitive returns in each of its mutual funds. "We like to think of ourselves as growth managers, says Calamos, "but our primary mission is to manage risk."
Calamos says investors should for now seek to preserve capital but should be ready to participate in the eventual rebound. "I usually like to say I am long-term bullish, short-term scared," quips Calamos, "but the long-term isn't that far off in the future."
For more information on Calamos Asset Management or the Calamos Family of Funds, please visit our Website: www.calamos.com.
To arrange an interview with John Calamos, please contact: Scott Tanner, Vice President, SunStar at (703)299-8390 / stanner@isunstar.com OR Marilyn Dale, Vice President of Marketing at Calamos Asset Management at: (630)245-7258 / mdale@calamos.com
Call CALAMOS FINANCIAL SERVICES, INC., the funds' distributor, at 800.582.6959 for a CALAMOS Family of Funds prospectus, which contains more complete information. Investors should read the prospectus carefully before investing or sending money.
Past performance is no guarantee of future results.
Investments by the CALAMOS Growth Fund (Nasdaq:CVGRX) in smaller companies present greater risks than investments in larger companies.