Finance

Fisher Asset Management's Q1 2026 13F portfolio demonstrated a stable yet dynamic approach, with a slight increase in total value to approximately $295 billion. The firm maintained a significant concentration in major technology companies, which collectively formed a substantial portion of its overall investments. This period also saw strategic adjustments in various holdings, indicating a balanced strategy of long-term conviction and tactical responsiveness to market conditions.

Strategic Allocations in Key Technology Giants

In the first quarter of 2026, Fisher Asset Management's portfolio experienced a modest expansion, reaching an estimated $295 billion. A notable characteristic of this portfolio was its substantial allocation to a few dominant technology corporations. Specifically, prominent positions in Nvidia, Apple, Alphabet, Microsoft, and Amazon collectively represented approximately one-fifth of the total portfolio value. This concentration underscores the firm's continued belief in the long-term growth potential and market leadership of these tech behemoths. Nvidia, in particular, stood out as the single largest holding, reflecting strong conviction in its market trajectory. Despite earlier instances of trimming positions when prices were elevated, the firm notably increased its stake in Nvidia over the preceding three quarters, reinforcing its commitment to this key investment.

The sustained emphasis on these major technology entities highlights a deliberate strategy by Fisher Asset Management to anchor its portfolio with companies demonstrating robust market performance, innovative capabilities, and significant future prospects. Nvidia's leading position, coupled with incremental increases in its stake, suggests that the firm views it as a pivotal growth driver, even after previous profit-taking measures. The collective weight of these five tech giants indicates a strategic reliance on their continued success to drive overall portfolio performance. This focused allocation also points to a belief in the resilience and enduring influence of the technology sector within the broader economic landscape.

Portfolio Evolution and Tactical Adjustments

During the first quarter of 2026, Fisher Asset Management's portfolio exhibited a relatively low rate of turnover, signifying a preference for stability in its core holdings. Nevertheless, the firm engaged in targeted and impactful adjustments, primarily within its most significant positions and through the introduction of new investments. A key aspect of this rebalancing involved initiating new stakes in pharmaceutical giant AbbVie (ABBV) and Swiss multinational Novartis (NVS), signaling an expansion into the healthcare sector or a belief in the value proposition of these specific companies. Concurrently, the firm boosted its holdings in several other prominent enterprises, including Pfizer (PFE), Japanese conglomerate Sony (SONY), and energy major BP, indicating confidence in their respective sectors or individual performance outlooks.

Conversely, Fisher Asset Management strategically reduced its exposure to certain companies, notably decreasing stakes in streaming giant Netflix (NFLX) and enterprise software leader SAP. These reductions suggest a tactical re-evaluation of these companies' short-to-medium-term prospects or a reallocation of capital to other more promising opportunities. The overall picture reveals a carefully managed portfolio that combines a foundation of stable, diversified mega-cap technology holdings with agile adjustments to global equity allocations. This dual approach allows the firm to maintain a resilient base while actively seeking enhanced returns through selective rebalancing and new investment opportunities, adapting to evolving market dynamics while adhering to its core investment philosophy.

The Calamos Timpani Small Cap Growth Fund demonstrated strong performance in the first quarter of 2026, significantly outpacing its benchmark, the Russell 2000 Growth Index. This achievement was particularly notable given the market's volatility during this period. The fund's success underscores the effectiveness of its fundamental investment approach and careful security selection, navigating market pressures to deliver positive returns for investors. This commentary details the strategic decisions and market factors that contributed to the fund's robust showing.

Small-cap stocks, after a period of considerable fluctuation, ended the quarter with a largely stable performance, yet remarkably surpassed large-cap equities. This resurgence in smaller companies suggests a potential shift in investor focus, drawn by factors such as compelling valuations and an increase in mergers and acquisitions. These elements, combined with an improving outlook for earnings growth, are positioning small caps for continued relevance in the broader market landscape.

Exceptional Performance in Small-Cap Equities

The Calamos Timpani Small Cap Growth Fund showcased its ability to generate superior returns in a dynamic market environment during the first quarter of 2026. While the broader small-cap market experienced flat performance, the fund delivered a 0.55% return (Class I shares at NAV), significantly outperforming the Russell 2000 Growth Index, which posted a -2.81% return. This impressive outperformance highlights the efficacy of the fund's investment strategy, which prioritizes fundamental analysis and selective stock picking to identify growth opportunities within the small-cap segment. The fund's strategic allocation adjustments, including a reduced exposure to healthcare and an increased focus on information technology, played a crucial role in navigating market pressures and capitalizing on emerging trends.

This period also saw small-cap stocks collectively demonstrate resilience, concluding the quarter with minimal overall change but showing a remarkable outperformance against large-cap stocks. They surpassed the large-cap Russell 1000 Index by over 500 basis points, and micro-cap stocks even further outpaced large caps by more than 2000 basis points between July 2025 and March 2026. This trend signals a renewed investor interest in smaller companies, driven by factors such as their attractive valuations, a noticeable increase in merger and acquisition activities involving small-cap firms, and an accelerating picture of earnings growth. These combined elements suggest a positive trajectory for small-cap investments, making them an increasingly appealing option for growth-oriented portfolios.

Strategic Portfolio Adjustments and Market Outlook

In response to evolving market dynamics, the Calamos Timpani Small Cap Growth Fund implemented significant portfolio adjustments during the first quarter of 2026. A key strategic shift involved reducing exposure to the healthcare sector while simultaneously increasing holdings in information technology. These changes, made both in absolute and relative terms, were instrumental in driving the fund's strong outperformance. The decision to underweight lagging sectors like healthcare and financials, coupled with favorable security selection in information technology and industrials, positioned the fund to capture growth opportunities and mitigate risks. This proactive management approach, focusing on secular growers and niche opportunities with sustainable and underestimated growth potential, is central to the fund's long-term strategy.

Looking ahead, several catalysts are expected to contribute to the continued outperformance of small-cap stocks and the CTSIX fund. The prevailing low relative valuations of small-cap companies make them attractive investment targets. Furthermore, an uptick in small-cap merger and acquisition (M&A) activity indicates a growing confidence in this market segment. Coupled with an accelerating earnings growth picture, supported by accommodative fiscal and monetary policies, these factors are anticipated to sustain the positive momentum for small caps. The fund's current positioning, with an overweight stance in information technology and industrials, and an underweight in healthcare and financials, is designed to leverage these macro and micro trends, aiming to deliver consistent growth for its investors.