In an interview with Bloomberg, Calamos Investments CEO John Koudounis discussed how the current economic conditions are optimal for liquid alternative funds. He described how, in a downside market, the funds can protect better than straight equities while still capturing upside. For example, since the market low point in March 2009, the stock markets have seen 20 corrections of 5% or more, he said, with convertibles outperforming equities during 19 of those. "A lot of investors are really looking for that during these volatile markets and we know that markets have been extremely volatile as of late," Koudounis said, adding that the prospect of rising interest rates also makes liquid alternatives more attractive for investors.
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