Calamos Strategic Total Return Fund (CSQ) Soars 5.72% in a Week, Hits 2025 High

Calamos Strategic Total Return Fund (CSQ) rose 0.12% today, marking its seventh consecutive day of gains, with a 5.72% increase over the past week. The share price reached its highest level since March 2025, with an intraday gain of 0.41%.

The strategy of buying CSQ shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a maximum drawdown and a Sharpe ratio indicating the risk-adjusted performance.

Maximum Drawdown: The maximum drawdown of -15.4% occurred in 2023, reflecting the strategy's ability to withstand market downturns.

Sharpe Ratio: The Sharpe ratio of 1.65, based on a 3-month U.S. Treasury bill risk-free rate, suggests the strategy's returns were reasonable relative to the risk taken.

Total Return: The total return over the 5 years was 14.3%, with an average annual return of 2.86%, indicating consistent, if not outstanding, growth.

This backtest shows the strategy's resilience and ability to generate returns, making it suitable for investors seeking regular income with moderate growth, but it's important to consider the 15.4% drawdown in 2023 and the 2.86% average annual return, which may not be attractive for those seeking high growth.

On May 13, the shares of CSQ crossed above the 200-day moving average. This is a significant technical indicator that can influence investor sentiment and potentially lead to changes in the stock price. The 200-day moving average is often used by traders and investors to determine the overall trend of a stock. When a stock's price moves above this average, it is generally seen as a bullish signal, indicating that the stock may continue to rise in the near future. This technical breakthrough has likely contributed to the recent upward trend in CSQ's stock price, as investors may be more confident in the stock's potential for further gains.