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| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
Calamos Dynamic Convertible and Income Fund seeks total return through capital appreciation and current income by investing primarily in convertible securities and high-yield fixed income, supplemented by options strategies. During the second quarter of 2026, the fund delivered exceptional performance, appreciating 28.89% on a net asset value basis and 23.72% on market price, significantly outpacing blended benchmarks. Performance was primarily driven by strong security selection and an overweight posture in information technology, notably semiconductor materials and equipment alongside tech hardware. Detractors were limited, centered largely on real estate selections, including data center REITs. Management maintains a constructive economic outlook anchored by solid GDP growth, healthy corporate balance sheets, low default rates, and unprecedented convertible issuance fueled by corporate artificial intelligence infrastructure investments. Downside risks, including geopolitical friction in the Middle East, monetary policy uncertainty, and election volatility, are addressed by utilizing convertible structures that capture equity upside while preserving defensive floors.
Investing in convertibles and high-yield debt provides equity participation with asymmetric downside mitigation, amplified by active credit research and prudent leverage.
Management anticipates elevated volatility through the second half of the year driven by political elections, geopolitical risks, Federal Reserve interest rate policy uncertainty, and debates concerning the sustainability of artificial intelligence spending. They plan to emphasize companies with expanding margins, free cash flow generation, and accelerating return on invested capital, using convertible bonds to preserve asymmetric downside protection.
As of Jun 30, 2026
Jon A. Vacko Sr., CFA, serves as Senior Portfolio Manager and Co-Head of Research for the Calamos Dynamic Convertible and Income Fund, bringing over two decades of specialized experience in convertible securities and credit analysis. Vacko joined Calamos Advisors in 2000 and has been Co-Portfolio Manager and Co-Head of Research since August 2013, overseeing the firm's research capabilities and portfolio management processes. His extensive financial industry experience began in 1992 at the Federal Reserve Bank of Chicago as an Examiner, where he gained deep regulatory and supervisory experience in banking operations. He transitioned to Fitch Ratings in 1997 as a Senior Bank Credit Analyst, specializing in credit ratings for both investment-grade and non-investment-grade securities, providing crucial expertise in credit risk assessment. At Calamos since 2000, Vacko initially served as a Senior Sector Analyst specializing in equity, convertible bond, and high-yield portfolios before advancing to leadership roles. He held the position of Co-Head of Research and Investments from 2010 to 2013, demonstrating his progression within the organization and expanding responsibilities. Vacko earned a Bachelor of Business Administration in Finance and Accounting from the University of Wisconsin-Madison in 1992, providing a strong foundation in financial analysis and accounting principles. He further enhanced his credentials with a Master of Business Administration with a focus on Finance from the University of Chicago in 1999, one of the nation's premier business schools. His CFA designation reflects his commitment to professional excellence and adherence to the highest standards of investment management. Under his portfolio management leadership, the fund has maintained its focus on convertible securities while adapting to changing market conditions and investor needs.
The fund seeks to provide total return through a combination of capital appreciation and current income by investing at least 80% of managed assets in convertible securities and income-producing securities. By investing at least 50% in convertibles, the fund seeks upside participation in equity markets with less downside exposure over a full market cycle. The investment approach leverages Calamos' expertise in convertible securities developed over more than four decades, applying option pricing theory to demonstrate the benefits of convertibles as part of an investment strategy. The fund invests in convertibles and high-yield fixed-income securities with the aim of generating total return through both capital appreciation and income generation. This strategy reflects a time-tested commitment to offering risk-adjusted returns through innovative approaches that emphasize risk management and capital preservation. The fund's capabilities are built on pioneering work in convertible securities that dates back to the challenging markets of the 1970s when founder John P. Calamos Sr. began using convertible securities to help clients build wealth and manage risk. The approach emphasizes using investment techniques to control risk more precisely than historically possible, leveraging the modern convertible bond market's development alongside the options market. The fund maintains a focus on innovation, risk management, and client focus that continues to define the organization today. The strategy seeks to capitalize on opportunities for active and selective managers given the market's increased attention to individual company fundamentals. The fund operates with the belief that convertible securities, when properly analyzed and valued, can provide superior risk-adjusted returns compared to traditional equity or fixed-income investments alone.
Lead Portfolio Manager
Neutral / Balanced
Market Conviction
The score of 0.58 reflects an active, research-driven strategy that articulates clear sector preferences (overweight tech and industrials) and detailed credit tier allocations. However, conviction is moderated by the broad closed-end fund structure, aggregate portfolio-level reporting without individual position weightings, and diversified holdings.
Growth Outlook
Management maintains a constructive stance (0.75), emphasizing that underlying macroeconomic conditions feature solid growth, sound credit quality, accessible capital markets, and below-average defaults. While geopolitical conflicts and election-year volatility are recognized, management retains measured optimism.
Risk Appetite
Risk appetite is scored at 0.80 given the fund's 29% leverage ratio, 95% allocation to convertibles, heavy concentration in unrated issues (76%), and substantial sector overweight in cyclical technology and semiconductor equipment.
Capital Deployment
Scored at 0.75 as the fund remains fully invested with 95% in convertibles, active sector reallocations into communication services and healthcare, and utilizes 29% fund leverage to enhance returns and support distribution yields.
Forward Guidance
Forward guidance stands at 0.70 because management indicates continued capital deployment into companies demonstrating improving operating margins, free cash flow generation, and high return on invested capital through convertible structures to exploit structural market volatility.
Language Signal
The text displays a decidedly bullish tone (0.78), frequently highlighting remarkable issuance volume, attractive valuations, solid economic growth, and the unique structural upside of the convertible asset class, easily counterbalancing noted risks.
Perceived Risk
Perceived risk is balanced at 0.55. Management cites identifiable risks such as Middle East conflict, midterm elections, debate surrounding AI durability, and Federal Reserve policy, but explicitly notes that underlying credit and bankruptcy conditions remain benign.
Opportunity Density
Rated at 0.82 due to explicit commentary that global convertible issuance has surpassed all but six of the past 28 years, creating an unusually fertile opportunity set across leading AI and corporate growth themes.
Time Horizon
A medium-term horizon score of 0.50 aligns with the portfolio's short 1.7-year average bond duration and management's focus on second-half volatility catalysts and ongoing quarterly issuance trends.
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