We’re very enthusiastic about what we’re seeing in small caps and imagine the tide is popping after a troublesome 2022. Valuations are enticing, and there may be rising proof {that a} small-cap management regime is in its early innings.

And whereas we’re inspired about small caps as an asset class, we’re much more optimistic about small-cap development shares and the alternatives we see for Calamos Timpani Small-Cap Development Fund (CTSIX). We have now a time-tested, repeatable course of and imagine we’re simply six months into what is probably going a multiyear upcycle for our funding type. Listed below are 5 essential takeaways:

  • When the S&P 500 Index has rallied above bear market lows, small caps have outperformed

    Traditionally, small caps have posted sturdy efficiency after the S&P 500 Index rallied greater than 20% off bear market lows-both in absolute phrases (highlighted by the inexperienced

  • A last notice: Calamos Timpani Small-Cap Development Fund has substantial tax-loss carryforwards of $146.2 million (as of the semiannual report dated April 30, 2023), representing practically 50% of fund belongings. These tax-loss carryforwards could possibly be used sooner or later to offset realized beneficial properties, and though the tax tail should not wag the asset allocation canine, we imagine this can be a compelling level for a lot of buyers.

    Editor’s Word: The abstract bullets for this text had been chosen by In search of Alpha editors.


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