Performance profile: The view from Highland


Dallas-based Highland Capital Management has driven its credit-based strategies to highly competitive results this year. The firm's flagship credit fund, a $1.8 billion event-driven fixed-income portfolio called Highland Crusader Fund, was flat in September to remain up 20.25% YTD. That's well ahead of the Absolute Return Fixed Income and High Yield Index, which rose 5.91% over the same period.

This year's returns have been earned, in part, by investments in Delphi Automotive and Mirant. The hard-charging Crusader, managed by Highland founder James Dondero and portfolio manager Pat Daugherty, targets the senior secured loans of distressed companies based on bottom-up