Navigating the Currents: Calamos US Opportunities Strategy - A Look Back at Q3 2025

Well, what a quarter Q3 2025 turned out to be! The financial markets, as they often do, kept us on our toes, presenting a fascinating mix of challenges and, crucially, some truly exciting opportunities. Here at Calamos, our US Opportunities Strategy has been diligently at work, and we're quite pleased to report that our active management approach really paid off, allowing us to not just keep pace but actually outperform our benchmark during this dynamic period.

Looking back, the broader market, particularly the S&P 500, continued its upward trajectory, albeit with a touch more volatility than some might have anticipated. Inflation, while perhaps not making daily headlines quite as much as it once did, certainly remained a quiet undercurrent, influencing Federal Reserve policy and, by extension, the bond markets. Interest rates, as you might recall, stayed relatively sticky, making careful sector and individual stock selection absolutely paramount for generating alpha.

Our strategy's success this past quarter, we believe, wasn't by accident. It stemmed directly from our conviction in identifying high-quality companies with sustainable competitive advantages – businesses that can thrive regardless of the macroeconomic backdrop. We saw particularly strong contributions from our allocation to innovative technology companies, many of whom are at the forefront of AI advancements and digital transformation. These weren't just speculative plays; rather, they were well-researched investments in firms demonstrating robust earnings growth and clear paths to market leadership.

Beyond tech, we also found compelling value and growth within specific pockets of the healthcare sector, especially those focused on groundbreaking biotechnologies and medical devices. And let's not forget about select industrials, which, perhaps surprisingly to some, showcased incredible resilience and pricing power amidst ongoing supply chain reconfigurations. Our disciplined approach to valuation helped us avoid some of the frothier areas of the market, which, in hindsight, was definitely a good thing.

Of course, no quarter is without its lessons, and we certainly faced a few headwinds. Some of our positions in more cyclically exposed sectors experienced temporary pullbacks as consumer sentiment wavered slightly. However, these instances were largely offset by our strong performers, underscoring the importance of diversification and our bottom-up research process.

As we cast our gaze forward, we remain cautiously optimistic. The global economy, while showing signs of cooling in some areas, still possesses underlying strength. Geopolitical developments will undoubtedly continue to play a role, adding layers of complexity, but our focus remains steadfast: finding those exceptional US companies poised for long-term growth. We're committed to rigorous analysis, identifying firms with strong balance sheets, innovative products, and management teams that can execute. Active management, now more than ever, is crucial for navigating these intricate markets, and we believe our US Opportunities Strategy is well-positioned to continue delivering for our investors.