Company: CPZ
Filing Date: 2025-12-29
Form Type: N-CSR
Source: 0001104659-25-124691
Chunk: 90

Company: Calamos Long/Short Equity & Dynamic Income Trust
Filing Date: 2025-12-29
Form: N-CSR
Chunk 90
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 more favorable environment for the Fund's leverage costs. Long/Short Equity Performance Drivers The short book proved more challenging during a strong year for equity markets, although we adeptly modified the net equity exposures in the first half of the calendar year. As the markets became more frothy later in the reporting period, the short book again proved challenging, but tactical hedging of select positions and industries provided some offset. The Fund's industrials overweight and selective technology positioning helped capture opportunities across both the AI infrastructure buildout and the cyclical recovery themes. Maintaining a lower net equity exposure helped the Fund navigate significant political and trade policy uncertainty, particularly during the spring market disruption. Among mega-caps, the Fund benefited from tactical positioning around Apple and favorable selection in cloud infrastructure providers, including Amazon, Microsoft, Alphabet, and Oracle. The Fund's exposure to NVIDIA remained tactical throughout the period, allowing participation in key rallies while avoiding extended periods of sideways price action. The industrials overweight proved particularly valuable, as defense contractors like L3Harris Technologies benefited from the administration's ambitious "Golden Dome" missile defense initiative. Commercial aerospace company Boeing ASSET ALLOCATION AS OF 10/31/25 Fund asset allocations are based on total investments and may vary over time. www.calamos.com
67 Calamos Long/Short Equity & Dynamic Income Trust (Unaudited) navigated challenging conditions while positioning itself for long-term recovery. We bought federal IT contractors Booz Allen Hamilton and CACI International on weakness as DOGE-related fears created attractive entry points. AI infrastructure component suppliers, Coherent, Fabrinet, and Ciena contributed meaningfully, demonstrating that the data center buildout extends well beyond GPU hardware. These positions captured the spillover effects of hyperscaler capex commitments while avoiding the concentration risk inherent in direct mega-cap exposure. Fixed-Income and Preferred Securities Performance The Fund's preferred securities outperformed the ICE BofA US All Capital Securities Index during the period. Security selection among banks and insurance companies drove substantial outperformance, while selection among electric utilities also added value. The institutional-style preferreds that dominate the portfolio—with coupons that reset over five-year Treasury yields—demonstrated their structural advantage in managing interest rate volatility. The high-yield securities component finished in line with the Bloomberg US High Yield 2% Issuer Capped Index for the period. Security selection within the technology and transportation sectors contributed positively, while retailers and pharmaceuticals proved more challenging. The team's migration toward higher credit quality when yield give-ups were minimal helped