Calamos Long/Short Equity & Dynamic Income Trust: A Diversified Investment Vehicle for Income and Capital Appreciation

The Calamos Long/Short Equity & Dynamic Income Term Trust is a diversified, closed-end investment company that aims to seek current income and risk-managed capital appreciation. It focuses on a globally diversified portfolio of equity securities, income-producing securities, and may invest up to 50% in securities of foreign issuers. The investment advisor is Calamos Advisors LLC.

The Calamos Long/Short Equity & Dynamic Income Term Trust (CPZ) is a closed-end investment company designed to provide investors with current income and risk-managed capital appreciation. With a globally diversified portfolio of equity securities, income-producing securities, and potential investments in foreign issuers, CPZ aims to offer an attractive monthly distribution supported by a multi-asset income strategy [1].

CPZ's investment strategy is built around Calamos' time-tested global long/short equity strategy, which combines the long and short positions in a single portfolio to generate returns while managing risk. The fund's equity sleeve consists of two components: the Long/Short component and the Preferreds component. The Long/Short component focuses on investing in a diversified portfolio of equity securities, while the Preferreds component invests in preferred stocks, which offer a higher yield and a lower level of risk compared to common stocks [1].

In addition to the equity sleeve, CPZ's multi-asset income strategy includes a fixed income sleeve, which is comprised solely of income-producing fixed income securities. This diversification helps to reduce the fund's overall risk exposure and provides investors with a stable source of income [1].

CPZ's investment advisor, Calamos Advisors LLC, is an experienced firm with a strong track record in risk-managed equity investments, innovative income-oriented strategies, and alternative products. The firm's extensive experience in these areas enables it to actively manage risk and adjust net equity exposure to maintain a balance between risk and return [1].

The fund is appropriate for risk-conscious investors who want to put their capital to work in pursuit of income and capital appreciation. CPZ's quarterly commentary provides insights into the fund's performance, related market commentary, and outlook, while its fact sheet and annual report offer comprehensive reviews of the fund's activities and financial performance [1].

Investors can maximize their investment in CPZ through the use of an automatic dividend reinvestment plan. This plan allows investors to reinvest their dividends and capital gains distributions in additional shares of the fund at a lower price than the market price if the shares are trading at a premium to net asset value [1].

Sources:
[1] Calamos. (n.d.). Calamos Long/Short Equity & Dynamic Income Term Trust. Retrieved December 1, 2022, from https://www.calamos.com/funds/closed-end/long-short-equity-dynamic-income-cpz/