Launches & Closures Hedge Funds

Highland Capital closes down two funds


Highland Capital Management has decided to shutter two credit hedge funds following dismal performance and the reported seizure, by Barclays Capital on Wednesday, of $642 million in leveraged loans held by the firm.

Dallas-based Highland is closing its flagship Highland Crusader Fund and the Highland Credit Strategies fund, both of which have suffered sizeable losses and redemptions amid the credit crisis.

The firm, in a letter to investors, expressed the opinion that it would be more prudent to wind down the funds and sell assets over time as the market returned to stability than to attempt to trade