Highland Capital Management, Jim Donderos $4.3 billion alternatives shop, is looking to raise an additional $500 million for its CDO Opportunity fund.
Dallas-based Highland is raising the money to invest in structured products, as the subprime mortgage correction has created attractive opportunities for buyers of debt.
The CDO Opportunity fund netted a gain of 2.02% in June and is up 14.29% for the year. Launched in May 2002, the fund has produced an annualized net return of 42.68%, using typical leverage of about 50%. Its current assets, at $465 million, are composed primarily of so-called friends and family money.JF