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Thursday, October 24, 2013 3 Things to Know From Calamos' Q3 2013 Earnings Despite dips in both revenue and earnings, Calamos Asset Management (CLMS) [profile] still beat expectations. Yesterday the Naperville, Illinois-based mutual fund shop reported third-quarter earnings per share of $0.20 and revenue of $65.0 million, down from $0.22 and $66.7 million, respectively, in Q2 2013. Yet that $0.20 per share was still more than 50 percent higher than the analysts' average forecast of $0.13, as reported by Nasdaq and RTT News. On an earnings call yesterday afternoon with analysts, Calamos namesake chairman, CEO and global co-chief investment officer John P. Calamos, Sr. revealed that 50 percent of the shop's assets are currently in open-end mutual funds, with the rest divided amongst closed-end funds, managed accounts and institutional strategies [Seeking Alpha's transcript of the call]. The discussion on the call did not include any mention of freshly departed president and chief operating officer James Boyne Here are three key takeaways from Calamos' earnings and from the analyst call, which also included Calamos fund administration chief and chief financial officer Nimish Bhatt: Point 1: Calamos' Outflows Are Slowing Down. Point 2: At Calamos Alts, Not Traditional Equities, Are Raking In the Dough. Point 3: The Calamos Investment Team Expansion Isn't Over Just Yet. Now to delve deeper into each of those points: Point 1: Calamos' Outflows Are Slowing Down. The chief himself had this to say about their net flows: ... [W]e breakdown the some of the important developments for the quarter. Total assets increased from $20.6 billion to $27.5 billion, driven by market appreciation, offset by slower outflows. We experienced net outflows of $980 million for the quarter versus $2.3 billion last quarter. Flows are moving in the right direction and we are encouraged by this positive trend ...Point 2: At Calamos Alts, Not Traditional Equities, Are Raking In the Dough. The drop in the outflows, Calamos revealed, is thanks in large part to their alternative investment products, not their traditional stock funds. Calamos explained: We also saw positive flows of $264 million into our alternative strategies. We view these strategies as contributors to our growth going forward, as investors look to alternatives to invest in instead of bonds ...Point 3: The Calamos Investment Team Expansion Isn't Over Just Yet. This summer Calamos added high yield PMs Jeremy Hughes and Chris Langs, and he hinted that more PM hiring is on the way: This quarter, we enhanced our existing Investment Team resources, including two additional co-portfolio managers for fixed income and high yield.Later, in the Q&A section of the call, Calamos delved further into his PM hiring plans: Adam Q. Beatty – Bank of America Merrill LynchTo dig deeper into Calamos' Q3 and beyond, read the earnings release and Seeking Alpha's transcript of the earnings call. Printed from: MFWire.com/story.asp?s=46537 Copyright 2013, InvestmentWires, Inc. All Rights Reserved |