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Small-cap fund approach targets beat-and-raise earnings patterns

The strategy centers on finding companies that can keep outpacing expectations while profit margins improve, using the earnings-season beat-and-raise cycle as a screen.

Reported · Written up by our desk · Fund Industry

MarketWatch highlights a small-cap fund strategy from Calamos Investments that looks to profit from the earnings-season “beat-and-raise” pattern companies often use during reporting cycles.

According to Brandon Nelson of Calamos Investments, the approach is designed to identify firms positioned for sustainable growth and improving profit margins, rather than focusing on one-off results.

In the outlet’s description, investors are guided to think of earnings results as a repeatable signal, with the fund framework built around companies that are more likely to deliver consistent upside as reports progress.

The piece frames the method as a way to navigate companies that shape investor expectations around earnings, aiming to focus on those with fundamentals that can continue to support margin improvement.

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