Calamos reopens convertible fund, select institutional convertible strategies

By Jennifer Chiou

New York, Oct. 7 - Calamos Investments announced the reopening of all share classes of its Calamos Convertible Fund while select institutional convertible strategies will also be reopened.

The 23-year old convertible fund had been closed to new investors since April 30, 2003.

"We've had many requests over the years to reopen the convertible fund," said John P. Calamos Sr., co-chief investment officer of Calamos Investments, in a news release.

"Our response has always been 'not until we identify a significant opportunity that may be advantageous for both new and existing investors.' Well, we think we have found one."

The reopening may, however, be temporary, the company said, noting that its investment team will continue to analyze liquidity conditions, new issuance and their proprietary valuation screens to determine whether opportunities continue to exist in the sector.

Nick Calamos, also co-chief investment officer, noted: "The general de-leveraging of the capital markets has created immense pressure on convertible valuations. Forced selling by prime brokers going out of business and convertible arbitrage hedge funds has caused prices to fall across the entire convertible market. Some of the selling appears to be coming at any price, as participants make a desperate attempt to get out of positions."

Calamos Investments is a Naperville, Ill., diversified investment firm.

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