Calamos Timpani Small Cap Growth Fund Q1 2026 Commentary
Calamos Investments·2026-05-07·via All Articles on Seeking Alpha
Summary
Small caps finished the quarter with flat performance but more than 500 basis points ahead of the large-cap Russell 1000 Index, which struggled mightily, led lower by large-cap growth stocks.
From July 1, 2025, to March 31, 2026, small caps impressively outperformed large caps by nearly 1000 basis points; and micro caps outperformed large caps by more than 2000 basis points.
Investor excitement for small caps is likely being driven by low relative valuations, an uptick in small-cap M&A activity, and an accelerating earnings growth picture.
For the quarter ended March 31, 2026, Calamos Timpani Small Cap Growth Fund returned 0.55% (Class I shares at NAV), strongly outperforming the Russell 2000 Growth Index return of -2.81%.
During the quarter, the Calamos Timpani Small Cap Growth Fund's biggest changes were reductions in health care and an increase in information technology, both in absolute and relative terms.
Parradee Kietsirikul/iStock via Getty Images
Summary
Supported by our fundamental investment style and security selection, the Calamos Timpani funds held up under the pressure of a tremendously volatile Q1.
Small caps have historically underperformed large caps during periods of
