CPZ - CPZ: Very Unique Strategy But No Reason To Buy This Over An Index
2024-03-27 14:00:04 ET
Summary
- Calamos L/S Equity & Dynamic Inc. Trust offers a high level of current income with an 11.07% yield, higher than most equity-focused closed-end funds.
- The CPZ closed-end fund's recent performance has been disappointing, with a decline of 23.72% over the past three years.
- The fund's long-short equity strategy focuses on the technology sector and has been betting against the S&P 500 Index, which has paid off in the past year. However, the fund's overall performance has been crushed by major indices.
- The fund failed to cover its distribution during its most recent full-year reporting period, but it seems to have been doing better since the market recovered in November.
- The fund is currently trading at a very attractive valuation, but it is difficult to make a case for it over an index fund.
The Calamos L/S Equity & Dynamic Inc Trust ( CPZ ) is a rather unique closed-end fund aka CEF that some investors may wish to use in order to obtain a high level of current income. The fund certainly does well at this task of earning income, as its 11.07% current yield is quite a bit higher than just about any other equity-focused closed-end fund in the market. Morningstar classified this fund as an “Equity – Global Equity” fund, so let us see how its yield compares to that of a few other funds with the same classification:
| Fund Name/Ticker |
| Morningstar Classification |
| Current Yield |
| Calamos Long/Short Equity and Dynamic Income Trust |
| Equity-Global Equity |
| 11.07% |
| Allspring Global Dividend Opportunity Fund ( EOD ) |
| Equity-Global Equity |
| 9.27% |
| Eaton Vance Tax-Advantaged Global Dividend Income Fund ( ETG ) |
| Equity-Global Equity |
| 6.63% |
| Lazard Global Total Return and Income Fund ( LGI ) |
| Equity-Global Equity |
| 7.70% |
| Royce Global Value Trust ( RGT ) |
| Equity-Global Equity |
| 1.42% |
| abrdn Global Dynamic Dividend Fund ( AGD ) |
| Equity-Global Equity |
| 8.17% |