Calamos Hedged Equity Fund Class C (CCHEX)

Overview

The fund is designed to offer investors a strategy that seeks to achieve total return with lower volatility compared to traditional equity markets. This aim is pursued through a diversified investment approach that allocates funds primarily in equity securities and other investments that are economically akin to equities. By focusing on minimizing volatility, the fund targets individuals and institutions that are looking for equity market exposure but with a more conservative risk profile. The fund operates under the principle that investing a minimum of 80% of its net assets, in addition to any borrowings for investment purposes, in such securities can provide a mix of growth and stability.

Products and Services

• Equity Securities Investment

  At the core of the fund's investment strategy is the allocation of resources into equity securities. This comprises investing in a wide range of stocks across various sectors and geographies, aiming to capitalize on market growth while managing risk exposure.

• Investment in Securities with Economic Characteristics Similar to Stock

  Expanding beyond traditional stocks, the fund also invests in financial instruments that emulate the economic characteristics of equities. This includes derivatives and other securities that provide equity-like returns, broadening the investment horizon of the fund and potentially mitigating risks associated with stock market fluctuations.

• Option Writing Strategy

  The fund employs an advanced strategy by writing call options on two fronts: (i) on a portion of the equity securities within its portfolio, and (ii) on broad-based securities indexes or ETFs. This approach may generate additional income for the fund and can be a protective measure against market volatility. Writing call options on indexes like the S&P 500 or MSCI EAFE, or on select ETFs, allows the fund to benefit from premiums collected in various market conditions, all while managing the overall risk profile.