Highland Crusader falls 15.14% in January

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Highland Capital Management’s Crusader fund, the $6 billion Dallas-based firm’s distressed debt vehicle, fell an estimated 15.14% in January, according to a recent investor letter. This is the single largest one-month decline suffered by the fund in its history, and larger than the 12.28% fall it sustained in November, which had contributed to the fund’s disappointing 4.01% loss for 2007. It was a big reversal for the fund, which produced an impressive 39.76% return in 2006, and can boast a 22.26% net annualized return since its inception in 2000.

“We are especially disappointed in this performance but believe investing