Hedge Funds

Loss-ridden Highland creates risk, sales posts to entice new investors


Still regrouping from large losses in late 2007 and 2008 that have left its hedge funds down by double digits, Dallas-based Highland Capital Management has created the post of risk management chief, elevating chief financial officer Kenneth McGovern to the role. The firm has also created a new institutional sales head position, bringing on a Bear Stearns veteran to fill it.

These moves are designed to help attract new institutional investors, a task that could prove difficult, given Highland's troubles. Highland's Crusader fund, the firm's distressed-debt vehicle, was down 13.5% for the year through May, despite gains of 2.07%