SCHEDULE: Apollo Entities Maintain 48% Stake in Calamos Preferred Shares

Apollo Management Holdings GP, LLC and affiliated entities report a continued 48.0% beneficial ownership of Calamos Strategic Total Return Fund's Series F Mandatory Redeemable Preferred Shares.

Summary

• Apollo Management Holdings GP, LLC and eight other affiliated entities (collectively, the "Reporting Persons") have filed an Amendment No. 8 to Schedule 13G.
• The filing discloses beneficial ownership of 1,920,000 Series F Mandatory Redeemable Preferred Shares of Calamos Strategic Total Return Fund.
• This represents 48.0% of the total class of securities, based on 4,000,000 shares outstanding as of April 30, 2025, as reported by the Issuer on June 27, 2025.
• All Reporting Persons share both voting and dispositive power over the 1,920,000 shares.
• The securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing control of the issuer, other than activities solely in connection with a nomination under Rule 14a-11.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive disclosure, reflecting a stable and significant institutional investment in the fund's preferred shares, which typically implies a lower risk profile and consistent income stream for the holder.

Positives

• A significant 48.0% stake held by a major financial institution like Apollo and its affiliates in the preferred shares of Calamos Strategic Total Return Fund may signal confidence in the fund's stability and ability to meet its preferred share obligations.
• The disclosure confirms a substantial, long-term investment by sophisticated investors in the fund's capital structure.

Negatives

• NA

Risks

• The Reporting Persons disclaim beneficial ownership of any Common Stock, which could imply a focus solely on the preferred shares' fixed income characteristics rather than the overall equity performance of the fund.
• The mandatory redeemable nature of the preferred shares means the investment has a defined maturity, which could limit long-term upside potential beyond the redemption value and dividend payments.

Future Outlook

NA

Management Comments

• The Reporting Persons certify that the securities were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer, other than activities solely in connection with a nomination under Rule 14a-11.

Industry Context

StockSavvy.ai notes that the substantial ownership of preferred shares by Apollo-affiliated entities highlights the continued interest of large institutional investors in income-generating, lower-risk components of investment fund capital structures. This strategy is common among insurance companies and asset managers seeking stable returns and capital preservation, particularly in a volatile market environment. The investment in Calamos Strategic Total Return Fund's preferred shares aligns with a broader trend of institutional capital flowing into credit and preferred equity instruments.

Stakeholder Impact

• Shareholders of the Calamos Strategic Total Return Fund's common stock may view the significant institutional ownership of preferred shares as a sign of stability in the fund's capital structure, potentially reducing perceived financial risk.
• Holders of the Series F Mandatory Redeemable Preferred Shares benefit from the continued commitment of a major investor group like Apollo, which could reinforce confidence in the fund's ability to meet its redemption obligations and dividend payments.

Key Dates

Recommendation

This Schedule 13G filing is a routine disclosure of an existing, significant beneficial ownership stake in preferred shares by Apollo-affiliated entities. It does not indicate a new transaction or a change in investment strategy that would warrant a 'buy' or 'sell' recommendation. The 48% stake is substantial and suggests a stable, long-term position in a debt-like instrument. For investors in the preferred shares, this reinforces the stability of their investment. For common shareholders, it provides insight into the fund's capital structure but does not directly impact the equity's fundamental value or near-term performance, thus a 'hold' is appropriate as it's a factual update without new actionable insights for a change in position.

Keywords

Calamos Strategic Total Return Fund, Apollo Management Holdings, Athene Annuity, Preferred Shares, Mandatory Redeemable, SEC Filing, Schedule 13G, Beneficial Ownership, Investment Fund, Fixed Income