Performance

Performance profile: Highland's CDO fund reverses course

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In January, when most managers struggled to produce gains, $6 billion Dallas-based Highland Capital Management's structured credit fund was hit worse than most due primarily to the continued weakening of structured credit markets.

Highland CDO Opportunity Master Fund, managed by Todd Travers, lost an estimated 11.4% for the month, after ending 2007 with a gain of 7.4%. By comparison, the Absolute Return Credit Index slipped 0.13% for the month and returned 6.78% last year. Highland Credit Strategies and Highland Credit Opportunities funds also had a difficult January, down 11.6% and 14.1%, respectively.

The CDO fund primarily invests in structured products