Calamos Long/Short Equity & Dynamic Income Trust (CPZ)
NASDAQ (NGS) NASDAQ (NGS) Primary 
Looking for $500 Per Month? Invest $20K in These 3 CEFs
Closed End Funds (CEFs) offer a combination of portfolio mitigation risk diversification and active management.
CPZ: 4 Reasons Why I Would Avoid This CEF
Calamos Long/ Short Equity & Dynamic Income Trust is a complex and high fee fund which offers investors exposure to equities, preferred stock, and fixed income. CPZ has delivered weak risk-adjusted performance, underperforming both the S&P 500 and peer long/short funds while exhibiting higher volatility. The fund is tax-inefficient which makes it less attractive for taxable investors compared to other products.
Buy CPZ For Better Zzzs At Night
Consider the Calamos Long/Short Equity & Dynamic Income fund for less market volatility while trading at a current -10% discount. CPZ offers a unique mix: Long stocks, long corporate bonds, and shorts mostly the S&P 500, with an 11% current market yield paid monthly. CPZ uses leverage, a 33% bond portfolio, and only needs to cover a 9.8% NAV yield to maintain its 11% annualized current market yield.
CPZ: Robust 2024 Performance Warrants An Upgrade (Rating Upgrade)
CPZ has delivered a strong total return of +15% in 2024, attributed to better macro bets and pair trading strategies. The CEF structure can be a hindrance for long-short funds due to its high distribution rate and potential for return of capital distributions. CPZ maintains a net long position in Industrials, Health Care, and Information Technology.
CPZ: Discount Has Appeal, But Not Enough
Calamos L/S Equity & Dynamic Inc Trust offers exposure to a dynamic portfolio, but has a portfolio that works against itself. Overall, I believe there are limited reasons to own the CPZ closed-end fund, and even those reasons come with their own issues. I believe there are alternatives where investors could put their capital to work and be more effective, including new Calamos "buffer ETFs."
