Company: CPZ
Filing Date: 2025-12-29
Form Type: N-CSR
Source: 0001104659-25-124691
Chunk: 51

Company: Calamos Long/Short Equity & Dynamic Income Trust
Filing Date: 2025-12-29
Form: N-CSR
Chunk 51
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 position, combined with security selection challenges in the real estate services industry, held back results in the real estate sector. The health care sector presented a mixed picture. While certain holdings contributed positively, positions in health care supplies and health care services detracted overall, and the portfolio's lack of representation in managed health care—which performed well during portions of the period—also impeded relative returns. How is the Fund positioned? We continue to focus on actively managing the risk-reward trade-offs within the portfolio. Our preference for total-return convertibles positions the Fund to capitalize on market opportunities while providing important risk mitigation. As of period end, convertible securities account for approximately 69% of the Fund's investments, with corporate bonds representing around 23% of the CALAMOS CLOSED-END FAMILY OF FUNDS ANNUAL REPORT
38 Calamos Convertible and High Income Fund (Unaudited) portfolio. This allocation provides meaningful exposure to equity market upside through convertibles, while the high-yield bond component contributes to income generation and portfolio diversification. From a credit-quality perspective, unrated securities comprise approximately 62% of the portfolio. This reflects the structural reality that most convertibles are not rated by traditional credit agencies, requiring us to perform our own rigorous credit analysis. We maintain a selective approach to CCC credits at approximately 1% of the portfolio, while holding a significant allocation to BB-rated securities at roughly 15%. This BB tier offers attractive valuations and provides access to a substantial portion of the convertible universe where our proprietary research capabilities can add meaningful value. The weighted average duration of our bond holdings stands at 2.2 years. In terms of economic sectors, the largest portfolio weights are in information technology and consumer discretionary on an absolute basis. Conversely, real estate and consumer staples represent the smallest absolute sector weights with holdings. We maintain overweight allocations in information technology and consumer discretionary. Application software (within information technology) and broadline retail (within consumer discretionary) constitute the most significant relative overweights. Cable & satellite and diversified banks constitute the most significant underweight industries. Allocations to information technology and industrials rose during the period with increased weights in application software and heavy electrical equipment. By contrast, allocations to consumer discretionary and health care decreased over the period with reductions to hotels, resorts & cruise lines and health care equipment. What are your closing thoughts for Fund shareholders? As we look ahead, we anticipate continued pro-growth fiscal policies combined with an increasingly accommodative monetary policy framework. The Federal Reserve has demonstrated the willingness and capacity to adjust policy as