Highland Capital Management Completes CLO Value Fund I and Provides a 138 Percent Gross Return to Its Investors

DALLAS, Feb. 4 /PRNewswire/ -- Highland Capital Management, L.P. ("Highland"), an investment management firm based in Dallas, Texas, announced today that it has completed its CLO Value Fund I and that the fund has provided 138% gross return to its investors.(1)  Highland Capital Management launched the CLO Value Fund I in November 2008 to primarily invest in secondary CLO (collateralized loan obligation) debt and equity.  Given the exceptional performance of the fund, Highland, along with its investors, thought it would be prudent to close the fund and return all capital to its investors in order to realize gains and to best position investors for the next significant opportunities in the market in 2010.  The fund originally had a 2014 maturity date.

As the largest and most experienced CLO manager, Highland recognized the unique investment opportunity in the fall of 2008 when CLO bond prices fell further than those of the underlying loans that collateralized them, magnifying the dislocation in CLO debt tranches.  Highland capitalized on these opportunities for investors by using its experience, resources, relationships, and skills to consistently analyze, source, and trade CLO assets.

Gibran Mahmud, Portfolio Manager of the CLO Value Fund I said, "Coming off the success of our first CLO Value Fund, we still see plenty of opportunity for investors in this market over the next 6-18 months.  We believe that in the next phase of the recovery it will be critical for investors to have both the experience and expertise in understanding the structural nuances of CLOs as well as the underlying loan collateral."  

About Highland Capital Management

Highland Capital Management, L.P. is an SEC-registered investment adviser with approximately $25 billion of assets under management. Highland is one of the largest global alternative fixed income managers, specializing in bank loans, high yield credits and structured products. Its credit team remains one of largest and most experienced in the industry. The firm's in-house restructuring and private equity staff provides its clients with strategy, M&A and operations capabilities. Highland's diversified client base includes corporations, financial institutions, governments, foundations and endowments, and high net worth individuals. Highland Capital Management is headquartered in Dallas, Texas and maintains offices in New York, London and Singapore.

(1) Gross of fees performance does not reflect the payment of advisory fees or other expenses incurred in the management of the Fund. Total Net Return equals 119%, excludes management and performance fees and is calculated by geometrically linking month-month performance returns. Past performance does not guarantee future results. Performance of the Fund is not indicative of performance in other managed accounts.

SOURCE Highland Capital Management, L.P.