] AUM, earnings, and revenue fell again last quarter, but so did its outflows. And its alternative investing products looked strong.
Yesterday the Naperville, Illinois-based mutual fund shop reported
its Q4 2014 and full-year earnings. Non-GAAP diluted earnings came in at $0.19 per share, down from $0.23 in Q3 2014 and $0.25 in Q4 2013, but beating expectations
by $0.05. Revenue clocked in at $60.495 million for Q4 2014, down from $63.532 million in Q3 2014 and $66.522 million in Q4 2013, and below expectations by about $0.45 million. Assets under management on December 31, 2014 stood at $23.506 billion.
On the earnings call
yesterday with analysts, Calamos chairman, CEO and global co-chief investment officer John Calamos
highlighted "a slowing of net outflows compared with last year's especially in [the firm's] global growth and U.S. growth strategy." [See Seeking Alpha's transcript
of the call.] A net $1.05 billion (including $757 million from mutual funds and $295 million from separately managed accounts) flowed out of Calamos in Q4 2014, more than the $800 million that flowed out in Q3 2014 but less than the $1.421 billion that flowed out in Q4 2013.
"Net outflows for the year are primarily from our equity strategies," Nimish Bhatt
, Calamos' chief financial officer, explained on the earnings call. "Since the reopening of the market neutral income fund in the first quarter of 2013, we have had more than $1.5 billion in net inflows into the fund.
Calamos himself pointed to alts as a strong point
for the firm last year.
"We were pleased with the continued positive flows we saw in our alternative strategies totaling $717 million for the year," Calamos said on the call.
Bhatt noted that a single alts product, the new long/short fund launched in June 2013, has added $100 million in assets under management in the past year and a half.
In response to a question from Adam Beatty
of BofA Merrill, Calamos confirmed that the alts inflows are coming from both the advisor channel and the institutional one. Calamos described alts as "really a hedge against higher interest rates."
Calamos also addressed his plan, unveiled
in December 2013, to create a new entity, Calamos Partners
, through senior Calamos executives can take stakes in the company. (Calamos Investments is currently 22.2 percent owned by the publicly-traded company, Calamos Asset Management, and 77.8 percent owned privately by Calamos Family Partners.) In response to a question from Andrew Donnantunno
of KBW, Calamos' chief said that Calamos Partners is "still in a kind of planning stage." He noted that the firm already has a restricted stock program through which Calamos executives take stakes in the publicly-traded Calamos Asset Management.
To dig deeper into the current state of Calamos, read the earnings reports
and Seeking Alpha's transcript
of the earnings call.
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