Hedge Funds

Highland hit with lawsuit from disgruntled investors

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A group of investors who claim fund managers at Highland Capital Management downplayed the extent of the firm’s redemption requests to convince them to invest in two of its funds have filed a lawsuit against the firm, which subsequently closed both funds.

LV Highland Credit Feeder Fund, a portfolio run by Long Vue Advisors – a defunct Boston-based fund of hedge funds firm – is leading a group of wealthy individuals and charitable organizations that invested with Highland to seek restitution.

The group, which placed a combined $50 million in Highland’s Crusader Fund and its Credit Strategies Fund