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By Jason Stipp | 04-07-2010 03:08 PM

Calamos: Why Investors Must Look Overseas

Investors must think globally to fully capture the opportunities brought by an expanding worldwide middle class, says Calamos CEO and co-CIO John Calamos.

Jason Stipp: You do run some global and foreign funds and one of the things that Morningstar looked at in the not-too-distant past was the amount of money that S&P 500 or so-called domestic companies got from overseas. So as an investor when I am thinking about why I should own a global fund or a foreign fund, I may think I am already getting some exposure to overseas markets by owning Procter & Gamble, for example, what's the argument for me to seek out a dedicated foreign fund?

John Calamos: Well, you know, I think we are in a period--we are at an inflection point in the way investors are thinking, and I think U.S. investors in particular need to think more globally than ever before. You are exactly right. In fact in our domestic U.S. growth, we look at companies that have more revenues coming from outside the U.S., because they are not just U.S. companies; they are global companies. But to ignore other parts of the world that have great companies, you know, would be not wise. So in our international growth fund, we are finding good companies all over the world. And that I think is going to be more important going forward.

It really plays to one of our themes that maybe I should have mentioned earlier is what we look at when we think about global investment, we look at countries that are creating a middle class. What made America great was its middle class and as that expanded, so did GDP, so did prosperity.

While we are seeing that happening all over the world, how do you take advantage of it, how did you take advantage of China's 250 million dollar middle class growing enormously, India and other parts of the world like that, and what companies are really playing to those themes.

So I think we need to think more globally than ever before, and our international fund helps investors that maybe are domestically based pretty much to say, OK, I need some exposure to non-U.S. great growth companies and that's what our international growth fund tries to do.

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