Calamos Long/Short Equity & Dynamic Income Term Trust (CPZ)

Calamos Long/Short Equity & Dynamic Income Term Trust (CPZ) Financial Services Profile

Calamos Long/Short Equity & Dynamic Income Term Trust is a diversified, closed-end management investment company employing a global long/short equity strategy. It seeks current income and risk-managed capital appreciation, distinguishing itself through hedged market exposure and a focus on dynamic income generation within the asset management sector.

What Is the Investment Thesis for CPZ?

Calamos Long/Short Equity & Dynamic Income Term Trust presents an investment case centered on its ability to generate income and manage risk through a diversified, closed-end structure. With a dividend yield of 11.72% as of 2026-03-18, the fund offers a compelling income stream in a low-yield environment. The fund's beta of 0.69 suggests lower volatility compared to the broader market, potentially appealing to risk-averse investors. Growth catalysts include the increasing demand for income-generating assets and the potential for capital appreciation through its long/short equity strategy. The fund's ability to navigate various market conditions and generate returns regardless of market direction is a key value driver. However, potential risks include market fluctuations, interest rate sensitivity, and the performance of its underlying investments.

Based on FMP financials and quantitative analysis

CPZ Key Highlights

• Market capitalization of $259.54M indicates the size and scale of the investment trust.
• P/E ratio of 14.59 suggests the fund is trading at a reasonable valuation relative to its earnings.
• Profit margin of 34.7% demonstrates the fund's ability to generate profits from its operations.
• Gross margin of 39.9% reflects the efficiency of the fund's investment strategies and management.
• Dividend yield of 11.72% provides a substantial income stream for investors.

Who Are CPZ's Competitors?

CPZ is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CPZ's Key Strengths?

• High dividend yield provides attractive income stream.
• Diversified portfolio reduces risk.
• Experienced management team.
• Long/short equity strategy offers flexibility in various market conditions.

What Are CPZ's Weaknesses?

• Sensitivity to market fluctuations.
• Dependence on the performance of underlying investments.
• Potential for losses from short positions.
• Closed-end fund structure can lead to trading at a discount to net asset value.

What Could Drive CPZ Stock Higher?

• Potential for increased demand for income-generating assets in a low-yield environment.
• Continued volatility in global markets may create opportunities for the fund's long/short equity strategy.
• Successful implementation of new investment strategies and product offerings.
• Positive performance of underlying investments.

What Are the Key Risks for CPZ?

• Financial-distress signal — its Altman Z-Score of 0.92 sits in the distress zone (elevated bankruptcy risk).
• Market fluctuations could negatively impact the fund's performance.
• Rising interest rates could reduce the attractiveness of income-generating investments.
• Underperformance of underlying investments.
• Increased competition from other asset managers.
• Regulatory changes could impact the fund's operations and profitability.

What Are the Growth Opportunities for CPZ?

• Expansion of Investment Strategies: Calamos Long/Short Equity & Dynamic Income Term Trust can explore new investment strategies and asset classes to enhance returns and diversify its portfolio. This could involve incorporating alternative investments, such as private equity or real estate, to generate higher yields and reduce overall portfolio risk. The market for alternative investments is growing, with an estimated size of $14 trillion globally. Timeline: Within the next 2-3 years.
• Increased Focus on Global Markets: The fund can further expand its presence in global markets to capitalize on growth opportunities in emerging economies. This could involve increasing investments in international equities and bonds, as well as establishing partnerships with local asset managers. The global asset management market is projected to reach $150 trillion by 2028. Timeline: Ongoing.
• Enhancement of Distribution Channels: Calamos Long/Short Equity & Dynamic Income Term Trust can strengthen its distribution channels to reach a wider investor base. This could involve partnering with financial advisors, wealth management firms, and online brokerage platforms to increase the accessibility of its investment products. The market for financial advisory services is growing, driven by increasing demand for personalized investment advice. Timeline: Within the next 1-2 years.
• Development of New Investment Products: The fund can develop new investment products tailored to specific investor needs and preferences. This could involve creating thematic funds focused on specific sectors or investment strategies, as well as offering customized investment solutions for high-net-worth individuals and institutional investors. The market for thematic funds is growing, driven by increasing investor interest in sustainable and socially responsible investing. Timeline: Within the next 2-3 years.
• Leveraging Technology and Data Analytics: Calamos Long/Short Equity & Dynamic Income Term Trust can leverage technology and data analytics to improve its investment decision-making and risk management processes. This could involve using artificial intelligence and machine learning to identify investment opportunities and manage portfolio risk more effectively. The market for AI in asset management is growing, driven by the increasing availability of data and the need for more sophisticated investment tools. Timeline: Ongoing.

What Opportunities Does CPZ Have?

• Expansion into new asset classes and investment strategies.
• Increased demand for income-generating investments.
• Growth in global markets.
• Leveraging technology to improve investment decision-making.

What Threats Does CPZ Face?

• Rising interest rates.
• Economic downturn.
• Increased competition from other asset managers.
• Regulatory changes.

What Are CPZ's Competitive Advantages?

• Established track record of managing risk and generating income.
• Experienced investment team with expertise in long/short equity strategies.
• Diversified portfolio of investments across various sectors and geographies.
• Closed-end fund structure provides flexibility in managing assets and generating returns.

What Does CPZ Do?

Founded on September 21, 2017, and headquartered in Naperville, IL, Calamos Long/Short Equity & Dynamic Income Trust operates as a diversified, closed-end management investment company. The firm's primary objective is to deliver a combination of current income and risk-managed capital appreciation to its investors. It achieves this through a strategy that incorporates both long and short equity positions on a global scale, providing hedged market exposure. This approach aims to mitigate potential downside risks while still participating in market gains. The company's investment strategy is designed to be dynamic, adapting to changing market conditions and opportunities. By employing a long/short equity strategy, Calamos seeks to capitalize on both rising and falling stock prices. The 'long' positions benefit from increases in the value of selected equities, while the 'short' positions aim to profit from declines in the value of other equities. This dual approach allows the fund to potentially generate returns regardless of the overall market direction. The focus on dynamic income aims to provide a consistent stream of income to investors, further enhancing the attractiveness of the fund. Calamos Long/Short Equity & Dynamic Income Trust provides a vehicle for investors seeking a balance between income generation and capital appreciation, with a focus on managing risk through its hedged equity strategy.

What Products and Services Does CPZ Offer?

• Operates as a diversified, closed-end management investment company.
• Seeks to provide current income to its investors.
• Aims to achieve risk-managed capital appreciation.
• Engages in a global long/short equity strategy.
• Provides hedged market exposure to mitigate downside risk.
• Dynamically adjusts its investment strategy to adapt to market conditions.
• Capitalizes on both rising and falling stock prices through long and short positions.

How Does CPZ Make Money?

• Generates revenue through management fees charged on assets under management.
• Earns income from dividends and interest on its investments.
• Profits from capital appreciation on its long equity positions.
• Generates returns from short positions when the value of the underlying assets declines.

What Industry Does CPZ Operate In?

Calamos Long/Short Equity & Dynamic Income Term Trust operates within the asset management industry, which is characterized by intense competition and evolving market dynamics. The industry is influenced by factors such as interest rates, economic growth, and investor sentiment. As a closed-end fund employing a long/short equity strategy, CPZ differentiates itself by offering hedged market exposure and a focus on income generation. The asset management industry is projected to experience moderate growth, driven by increasing demand for investment products and services.

Who Are CPZ's Key Customers?

• Individual investors seeking income and capital appreciation.
• Institutional investors, such as pension funds and endowments.
• Financial advisors and wealth managers.
• High-net-worth individuals looking for diversified investment solutions.

ROE 6%Key Financial Metrics

Return on equity for Calamos Long/Short Equity & Dynamic Income Term Trust stands at 5.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.9%, showing how much profit it generates from its asset base. CPZ trades at a trailing price-to-earnings ratio of 13.32, below the Financial Services sector average of ~18x. Its free cash flow yield is -25.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.01 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 7.5%, the inverse of the P/E and a quick read on earnings relative to price.

How Calamos Long/Short Equity & Dynamic Income Term Trust Is Valued

Calamos Long/Short Equity & Dynamic Income Term Trust carries a market capitalization of $259.54M, placing it in the micro-cap category. Relative to its peer group, CPZ's quantitative score of 45/100 is roughly in line with the peer average of 54/100.

F-Score 5/9Financial Health

Calamos Long/Short Equity & Dynamic Income Term Trust's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.92 places it in the distress zone, a signal of elevated financial risk.

Net sellingInsider Activity

The most recent 12 insider filings for Calamos Long/Short Equity & Dynamic Income Term Trust break down as 12 sales and 0 purchases. On net that is roughly 14K shares disposed (about $199K), a signal worth weighing alongside the fundamentals.

CPZ Financials

CPZ Latest News

No recent news available for CPZ.

CPZ Analyst Consensus

CPZ MoonshotScore

Calamos Long/Short Equity & Dynamic Income Term Trust Financial Services Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources