Friday, 26 August 2016
Last updated 10 hours ago
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."