Brandon Nelson, Senior Vice President and Senior Portfolio Manager for Calamos Investments, joined Zoe Hunt, Host of RIA Channel, to discuss the strategy behind the Calamos Timpani Active SMID Growth ETF (CTAG) and his outlook on small- and mid-cap stocks.
CTAG combines small- and mid-cap growth exposure. Nelson explains that the ETF launch follows demand from existing and prospective clients seeking access to the investment team and its established mutual fund strategy, the Calamos Timpani SMID Growth Mutual Fund (CTIGX), through an ETF wrapper.
Nelson also highlights the strategy’s focus on generating strong total returns by finding winners and letting them run while cutting losses quickly. He notes that smaller and mid-sized companies can be less efficiently priced, creating opportunities to identify potential winners. The firm’s investment process centers on fundamental momentum, seeking companies with sustainable, fast growth and long runways, as well as underestimated growth supported by management teams that can consistently meet or exceed expectations.
Looking ahead, Nelson remains positive on small- and mid-cap stocks, citing the early stages of an upcycle, earnings momentum, and attractive relative valuations. He emphasizes that the team focuses primarily on bottom-up stock opportunities rather than attempting to predict interest rates, prices, or the Fed’s next move.
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