Calamos Growth Fund (CGRIX) demonstrated a return of 7.19% in the third quarter of 2025, falling short of the S&P 1500 Growth Index's 9.52%. The fund's strategic security choices and an intentional lower exposure to consumer staples contributed positively to its relative returns. Nonetheless, the consumer discretionary sector's weaker performance tempered the fund's overall gains.
Looking ahead, the fund retains an optimistic view on the prospects of US growth stocks. This positive outlook is underpinned by expectations of continued economic expansion, a projected decrease in interest rates, and sustained momentum in corporate earnings. CGRIX's investment strategy focuses on identifying and investing in companies with strong fundamentals across diverse industries, with a particular emphasis on the artificial intelligence ecosystem. The fund prioritizes businesses that exhibit concrete financial benefits, such as accelerated revenue growth, enhanced profit margins, or increased market share, rather than just those providing foundational AI infrastructure.
Despite the favorable macroeconomic environment, several potential risks could impact CGRIX's performance. These include the possibility of inflation re-accelerating, which could halt Federal Reserve rate cuts, a potential decline in consumer spending due to a softer labor market, and a slower-than-anticipated realization of profits from artificial intelligence innovations compared to market expectations. These factors represent crucial considerations in the fund's forward-looking strategy and risk management.
In summary, the investment landscape offers substantial opportunities for growth, particularly within the dynamic sectors that adapt and innovate. Embracing a forward-thinking approach, focusing on sound fundamentals, and navigating market fluctuations with resilience can pave the way for sustained success and prosperity.
