Highland Capital knows that it is important to remember those individuals and families that need a little boost every now and again, while performing the daily task of business and commerce. That is why its Capital NexPoint Fund and the money that it raises is such a big deal and story worth talking about.
It all starts with NexPoint Advisers, which is an affiliate of the Highland Capital Management firm based out of Dallas, TX. What they are doing takes a little bit of expertise, faith and industry experience. They have a rights offering for shares in a fund that performs very well while focusing on below investment grade debt equities. The details notwithstanding, this is windfall for NexPoint and they want to share the wealth and good fortune with others.
The good fortune amounts to more than 400 million USD (United States Dollars) for the closed-end NexPoint Credit Strategies fund. As something of a side note, the returns on the investments put into this fund are around 20 per cent with an average of 18 per cent over the previous five years. That kind of return from an investment only comes with serious bottom up research and analysis. As a Co-founder and manager of the fund, James Dondero speaks to the success of the project by saying that he and his organization are pleased with the results of their financial endeavors.
There are two factors that perhaps add to the meteoric success of this particular fund. For one, the fund’s top holdings are in a mobile communications company by the name of TerreStar Corp., and Weight Watchers. This blends together the ever growing world of technology with a business that has its own commercial inertia. And, for the second part, closed end funds have a certain quality to them that investors find irresistible. They offer more shares at a lower price to investors who are already holders of stock. It is like bulk buying for shares.
The best thing about these kinds of wins for Highland Capital Management is that they in turn do more just help to bring about increasing and steady business for the company. When things like this happen, extra events follow like the hosting of a Mother’s Day celebration for the Family place in the Dallas Zoo. And, it is all due to smart investments and having a heart for others like Highland Capital Management does.