Highland Capital Appoints Cummings Bay to Manage Healthcare Mutual Fund

DALLAS, May 12 /PRNewswire/ -- Highland Funds, managed by Highland Capital Management, L.P. ("Highland"), an investment management firm based in Dallas, Texas, announced today that it has appointed Cummings Bay Capital Management, L.P. ("Cummings Bay"), as the subadviser to the firm's Healthcare Fund ("the Fund").  Highland also announced that it has changed the Fund's name to the Highland Long/Short Healthcare Fund in connection with changes to the Fund's investment strategy resulting from the appointment of Cummings Bay.  

The Fund will be managed by Michael D. Gregory, who has 10 years of experience with long/short equities strategies in the healthcare sector.  Previously, Mr. Gregory launched Cummings Bay Capital, a long/short healthcare hedge fund, and was a partner at Sands Point Partners LP, where he managed a long/short healthcare-focused fund.  He also was a Partner at Iroquois Capital, where he co-managed the healthcare components of the firm's funds.  Mr. Gregory received an MBA from Yale University in a healthcare specialized joint program of the Yale Schools of Medicine, Management, and Public Health, and he received an undergraduate degree from the Wharton School, University of Pennsylvania.

"Michael significantly enhances Highland's considerable expertise in the healthcare sector, bringing us a unique understanding of the financial, scientific, and policy elements critical to successful investing in this space," said Joe Dougherty, partner and head of retail products at Highland.  "In addition to Michael's experience and prowess in healthcare investing, we believe he has demonstrated a strong history of performance and risk management in applying a long/short investing strategy to this sector.  Michael's long/short strategy is well-suited to the unprecedented opportunities and significant uncertainties in healthcare today and Highland is extremely excited to be offering investors the only long/short healthcare mutual fund available."

The Fund seeks long-term capital appreciation. To do so, the Fund will generally take long and short positions in equity securities and will vary the Fund's long-short exposure over time based on market conditions and other factors. The Fund will invest across all sub-sectors of the healthcare industry, utilizing a top-down, theme-driven approach to identify areas of opportunity where the Fund has a view that differs from the consensus and then applying bottom-up analysis to identify stocks that represent opportunities within these themes.  The Fund will also draw upon the expertise of Cummings Bay's proprietary 16 member advisory board of leading healthcare professionals.

"This healthcare reform legislation is the largest structural change to healthcare in America since Medicare and Medicaid in 1965.  The implementation of this reform creates a new investment cycle in which investors can take advantage of low valuations coupled with improving business clarity in the healthcare sector.  In addition to the new opportunities created by reform implementation, certain healthcare companies will face significant challenges and reimbursement headwinds, thus making a long/short strategy particularly relevant to this sector at this time," said Michael D. Gregory, portfolio manager of the Highland Long/Short Healthcare Fund.  

Highland will continue to serve as investment advisor to the Fund.  Highland Long/Short Healthcare Fund offers 3 classes of shares for purchase, Class A (HHCAX), Class C (HHCCZ), and Class Z (HHCZX).  More information about the Fund can be obtained by calling 877-665-1287 or by visiting http://www.highlandfunds.com/.

Mutual fund investing involves risk including the possible loss principal. The Fund's use of derivatives, hedging strategies and non-U.S. securities involve significant risks and losses may occur. The Fund is non-diversified and may invest a larger portion of its assets in fewer issuers than a more diversified fund making it more susceptible to fluctuations in value. The portfolio construction parameters outlined herein are for illustrative purposes only and remain subject to change. Investors should refer to the prospectus for portfolio diversification and investment limitations.

This press release may contain forward-looking statements describing future plans and objectives. These forward-looking statements, as well as future oral and written statements by the management of Highland Funds and subadviser(s) to the Funds, are subject to various risks and uncertainties, which could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, the future operating results of our portfolio companies, changes in regional, national, or international economic conditions and their impact on the industries in which we invest, or changes in the conditions of the industries in which we invest, and other factors enumerated in our filings with the Securities and Exchange Commission ("SEC").

We may use words such as "anticipates," "believes," "expects," "intends," "will," "should," "may," "plans," "could," "estimates," "potential," "continue," "target," or the negative of these terms or other similar expressions to identify forward-looking statements.

Undue reliance should not be placed on such forward-looking statements as such statements speak only as of the date on which they are made. We do not undertake to update our forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

Investors should consider the investment objectives, risks, charges and expenses of the Highland Funds carefully before investing. Please call 1.877.665.1287 or visit www.highlandfunds.com for more information on the Funds. Please read the prospectus carefully before you invest.

Securities may be offered through NexBank Securities, Inc., an affiliate of Highland Capital Management, L.P. NexBank Securities, Inc. is a FINRA member firm.

About Highland Funds

Highland Funds is managed by Highland Capital Management, L.P. ("Highland").  Highland Funds consists of a number of distinct registered investment companies falling into three types: open-end "mutual" funds; closed-end "interval" funds; and traditional closed-end funds.

Highland Capital Management, L.P. is a SEC-registered investment adviser with approximately $24 billion of assets under management.  Founded in 1993, Highland is one of the largest global alternative fixed income managers, specializing in bank loans, high yield credit, distressed credit, structured products, equities, and real assets.  Highland's diversified client base includes mutual fund investors, public pension plans, foundations and endowments, corporations, financial institutions, governments, and high net worth individuals.  Highland is headquartered in Dallas, Texas and maintains offices in New York, London and Singapore.

SOURCE Highland Capital Management, L.P.