Calamos Long/Short Equity Fund Underperforms in Q4 2025

Calamos Long/Short Equity Fund Underperforms in Q4 2025
The Calamos Long/Short Equity & Dynamic Income Trust delivered negative returns in Q4 2025, posting a -2.05% total return on NAV and -5.67% on market price, significantly trailing its blended comparator index which gained 1.71%. The fund reduced exposure to momentum-driven mega caps amid growing conviction that AI infrastructure narratives are approaching their peak, while increasing positions in pro-growth cyclicals. Fund managers note that after fifteen years of historically elevated US equity returns, valuations remain stretched, creating potential opportunities for alpha generation through alternative strategies over passive beta exposure.