Highland Flagship Investors OK Liquidation Plan

Jul 20 2011 | 1:14pm ET

More than three years after it announced plans to shutter its flagship hedge fund, Highland Capital Management announced that investors have approved a plan that will make them wait another three years to get all of what's left of their money back.

The Dallas-based firm, which manages $23 billion, said the investor-led plan was approved by about 86% of Highland Crusader Fund clients, including the Houston Municipal Employees Pension Scheme, which sued Highland in May, accusing it of looting the fund. Highland said that the pension had "consented unconditionally" to the plan "without supplemental consideration."

Crusader clients will get $350 million immediately. The remaining $1.3 billion will be distributed over the next three years, with Highland remaining the fund's manager.

"The decision to wind-down the Crusader fund during the depths of the global financial meltdown was difficult, but we believe it was the right decision," Highland co-founder James Donedro said. "The wind-down process provided time for the prudent disposition of illiquid assets, and has helped the fund nearly double in value over the last two years."


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Hedgies, Economists and Musicians Mingle At Milkin Mixers In Hamptons

Aug 25 2014 | 6:00am ET

Leave it to Michael Milken to bring some gravitas and sweat to the Hamptons -- along...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.