Highland Long/Short Healthcare Fund Earns Five Star Morningstar Rating

DALLAS, June 9, 2011 /PRNewswire/ -- Highland Funds announced today the Highland Long/Short Healthcare Fund obtained its three year track record and received a five-star Morningstar rating.  The Highland Long/Short Healthcare Fund was the first long/short healthcare mutual fund offering in the industry. The fund has three share classes: A, C, and Z (tickers: HHCAX, HHCCX, HHCZX, respectively), and each received the five-star rating.

"We continue to see winners and losers created by the biggest structural change to the healthcare sector in more than 45 years," said Highland Long/Short Healthcare Fund Portfolio Manager Michael Gregory. "A long/short strategy seeks to take advantage of both sides of these regulatory changes."

"I am pleased to see Morningstar issue its top rating to the Highland Long/Short Healthcare Fund," said Joe Dougherty, President of Highland Funds.  "This recognition, along with Institutional Investor naming Michael Gregory as a 2011 Rising Stars of Mutual Funds, shows some of the results of our dedication to bring innovative investment opportunities to investors."

Morningstar awards the highest rating of five stars to the top 10 percent of funds in similar investing categories. The rating is based on the Highland Long/Short Healthcare Fund's overall investment performance for the three year period ending May 5, 2011. In addition to the Highland Long/Short Healthcare Fund, Highland Funds advises fourteen other Morningstar-rated funds.

The Highland Long/Short Healthcare Fund seeks long-term capital appreciation by investing, under normal circumstances, at least 80% of its total asset value in securities of healthcare companies. The Fund is sub-advised by Cummings Bay Capital Management, L.P.

About Highland Funds and Highland Capital Management, L.P.

Based in Dallas, Texas, Highland Funds is known as one of the premier providers of diverse and alternative fund strategies distributed through financial intermediaries. The Highland Funds complex 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, with a total of over $3.3 billion in retail assets under management.  Highland Funds is an affiliate of Highland Capital Management, L.P., a global alternative investment manager with approximately $23 billion of assets under management.

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.

The Highland Long/Short Healthcare Fund is in the Morningstar Health category. For the 3 year rating, there are 137 (including share classes) in this category. The Morningstar Rating for funds methodology rates funds based on an enhanced Morningstar Risk-Adjusted Return measure, which also accounts for the effects of all sales charges, loads, or redemption fees.

SOURCE Highland Funds