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Calamos Convertibles Fund keeps beating the market thoroughly. Calmos funds is a  key way to building your wealth by controlling risk. In 1987, investment legend Warren Buffett bought a huge stake in Salomon Brothers that was hedged with an almost no lose codicil. What he actually bought was convertible preferred stock that paid 9% interest while he waited for the common to rise from its current level of $32 to its strike price of $38. It was then that disaster struck. Salomon became embroiled in a bond-trading scandal from which Buffett, as the firm’s biggest investor, emerged as chairman and savior. By 1997, Salomon was attractive enough to be bought by Travelers Group, itself later acquired by Citigroup. Convertible securities are still much better known by experts such as Buffett than by small investors. They allow investors to buy a bond or preferred stock, and then exchange it for a set amount of common stock. Investors not only earn interest on the bond or preferred shares; they can reap the gains on a rise in the common stock, too. Institutions dominate the $500 billion industry, in which the United States has replaced Japan as the world leader. Among them is a family of mutual funds run by Calamos Investments of suburban Chicago.
Converts also come in the form of preferred stock, which isn’t as safe as a bond, but typically pays a much higher dividend than common stock. Calamos buys preferred as well as bonds. The firm is always fully invested, so it controls risk by diversifying thoroughly and balancing lower-quality credits with those of higher quality. They want the total portfolio to look like that GM bond. The want 75% to 80% of the upside and no more than 20% to 25% of downside risk. To maintain that profile through a market cycle, Calamos tends to be constantly selling off its winners and buying issues with lower relative prices. The underlying assumption is that markets are volatile and will go up and down. They can’t predict any short-term volatility, but can maintain that risk-reward ratio relatively constant.
The following Morningstar fund categories out of the top  performers are United States Stock Funds, General Bond Funds, International Stock Funds, Government Bond Funds, Municipal Bond Funds, Sector Funds and so. Each broad fund category contains narrower fund categories within it. For example, if you're interested in the specialty-technology funds that have the highest Morningstar Ratings, you should first screen on U.S. Stock Funds with the highest Morningstar Rating. Once you get your results, you will get a new pull-down list of narrower fund categories, and Technology will be one of your new options. Choose Technology, and click View Results again to perform the ranking.

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