Calamos Growth’s front-end sales charge may understandably deter some investors. But nobody has questioned the ability of the fund’s managers to pick good stocks. And when management adds to an existing position, that stock is worth an especially close look.
During the past quarter, Calamos significantly beefed up its holdings of Electronic Arts (ERTS), making it the fund’s second-largest position. Electronic Arts is the biggest U.S. developer, publisher, and distributor of videogames, with more than $2.9 billion in sales. It’s a leader in all parts of the interactive game market, producing and distributing titles for PCs, Sony’s PlayStation, Microsoft’s Xbox, and Nintendo’s GameCube. By continuously gaining market share, the company has increased sales even during periods of overall industry decline. (In the second quarter of 2003, revenues for Electronic Arts grew by almost 17 percent, while the industry showed a 1 percent decline.) It has almost no debt, and its management team is as sharp as they come.
Even if you’ve never heard of Electronic Arts, you’re probably familiar with some of its products.
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