A Modest Retreat: Shaker Financial and the CSQ Portfolio

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It is a truth universally acknowledged, that a financial institution in possession of a substantial portfolio must be in want of a rebalancing. Shaker Financial Services, LLC, having evidently reached this rather sensible conclusion, has recently reduced its holdings in the Calamos Strategic Total Return Fund (CSQ). A divestment of some $3.3 million, to be precise – a sum large enough to cause a flutter amongst the lesser funds, but hardly enough to disrupt the celestial mechanics of the market. One might say it is a trimming, not a catastrophe.

The Matter, Briefly Stated

The filing with the Securities and Exchange Commission reveals that Shaker Financial, during the final quarter of the previous year, parted ways with 171,140 shares of CSQ. The value, as calculated by the quarterly average, amounted to the aforementioned $3.26 million. A decline in the position’s overall worth – a mere $3.29 million – accompanied this sale and the inevitable shifts in market sentiment. Such is the dance of capital; a perpetual motion machine powered by optimism and regret.

A Fleeting Glance at the Holdings

Following this judicious withdrawal, CSQ now constitutes a modest 2.0% of Shaker Financial’s 13F reportable assets. A small slice of the pie, one might observe, though every crumb counts when one is building a financial empire… or, at least, maintaining a comfortable estate.

Their current top five holdings, for the curious, are as follows:

  • NYSE: JCE: $8,937,829 (2.8% of AUM)
  • NYSE: RMT: $8,653,584 (2.7% of AUM)
  • NYSE: ASG: $8,353,882 (2.6% of AUM)
  • NYSE: ETB: $7,549,702 (2.4% of AUM)
  • NYSE: USA: $6,926,563 (2.2% of AUM)

As of January 23rd, 2026, CSQ shares were priced at $19.35 – a 12.17% increase over the year, though, alas, trailing the S&P 500 by a mere 0.85 percentage points. A difference, one suspects, more easily perceived by accountants than felt by investors.

The dividend yield, as of January 26th, 2026, stood at 6.45%. A respectable figure, though one should remember that dividends are merely a return of capital, not a return on it. A distinction often lost on those who mistake income for wealth.

A Fund in Profile

Metric Value
Dividend Yield 6.45%
Price (as of market close 1/23/26) $19.35

The Calamos Strategic Total Return Fund, a closed-end affair managed by Calamos Advisors LLC, offers a diversified portfolio of equities, convertibles, preferred stocks, and high-yield bonds. It generates revenue through both investment income and capital appreciation, targeting institutional and individual investors seeking a blend of equity and fixed income. A perfectly sensible strategy, if one has no particular flair for the dramatic.

What Does it All Signify?

Shaker Financial’s recent transaction, while noteworthy, is hardly a harbinger of doom. Indeed, it is a reminder that even the most seasoned investors occasionally prune their portfolios. To expect profound insight from such a move is, frankly, rather naive. CSQ is merely one piece of a larger puzzle, and Shaker Financial owns a great many such pieces. To discern a grand strategy from a single transaction is like attempting to read a novel from a single comma.

Over the past five years, CSQ has delivered a total return of 77%, equating to a compound annual growth rate of 12.1%. The S&P 500, however, has fared slightly better, with a total return of 94% and a CAGR of 14.2%. A difference, one might concede, though hardly a catastrophe. It merely proves that even the most diligent gardener cannot control the weather.

In conclusion, this institutional transaction offers little of practical utility to the average investor. It is a reminder that markets are complex, strategies are opaque, and even the most astute observers are often left to speculate. And, as I have always maintained, a little mystery is essential for maintaining the illusion of control.

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2026-01-29 00:02