Highland Capital Management, an investment management firm based in Dallas, Texas, completed its CLO Value Fund I and that the fund has provided 138% gross
return to its investors.
Highland Capital Management launched the CLO Value Fund I in November 2008 mainly to
invest in secondary CLO debt and equity.
Considering the 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. This was done to realize gains and to best position investors for the next significant market opportunities in 2010. The
fund originally had a 2014 maturity date.
“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," Gibran Mahmud, portfolio manager of the CLO Value Fund I said. "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.”