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Address And Details

9 West 57th street, 38th Floor , New York City, NY 10019
Fund Manager James Dondero
Manager Tenure 6 Years 5 Months

Strategy And Objective

The investment objective of Highland Small Cap Equity Fund ( Small Cap Equity Fund or the Fund ) is to seek long-term growth of capital. The Fund seeks to achieve its investment objective by investing at least 80% of its net assets under normal circumstances in equity securities, such as common and preferred stocks, of small cap companies, plus borrowing for investment purposes. This investment policy is not fundamental and may be changed by the Fund without shareholder approval upon 60 days prior written notice to shareholders. There can be no assurance that the Fund will achieve its investment objective. The Fund uses an investment strategy that combines growth, value and core investment management styles. The Fund defines a small cap company as one with a market capitalization that falls between (a) the bottom range of the S&P Small Cap 600 Index ( Small Cap 600 Index ) and (b) the greater of either the top range of the Small Cap 600 Index or $6.5 billion. As of December 08, 2020, the market capitalization of companies in the Small Cap 600 Index ranged from $700 million to $3.2 billion.1 The portfolio manager will not sell a stock merely because the market capitalization of a company in the portfolio moves outside its capitalization range or because the index capitalization range changes. Stock selection is key to the performance of the Fund. The portfolio manager seeks to identify securities of companies with characteristics such as: high quality management focused on generating shareholder value; attractive products or services; appropriate capital structure; and strong competitive positions in their industries. At times, the portfolio manager may focus investments in a particular sector or sectors of the economy. The portfolio manager may consider selling a security when one of these characteristics no longer applies, or when valuation becomes excessive and more attractive alternatives are identified. The Fund may borrow for investment purposes. To the extent the Fund borrows and invests the proceeds, the Fund will create financial leverage. The use of borrowing for investment purposes increases both investment opportunity and investment risk. The Fund may invest in securities issued by real estate investment trusts ( REITs ). REITs are publicly traded corporations or trusts that specialize in acquiring, holding and managing residential, commercial or industrial real estate. The Small Cap 600 Index measures the small cap segment of the U.S. equity market. The Index is designed to track companies that meet specific inclusion criteria to ensure that they are liquid and financially viable. The Fund may also sell securities short and use futures and options to gain short exposure. The Adviser will vary the Fund s long and short exposures over time based on its assessment of market conditions and other factors. The Fund also may invest to a lesser extent in securities with capitalizations outside the Fund s small cap range, debt securities and foreign (non U.S.) securities. The Fund may also invest in exchange-traded funds ( ETFs ). The Fund may invest without limitation in warrants and may also use derivatives, primarily swaps (including equity, variance and volatility swaps), options and futures contracts on securities, interest rates, commodities and/or currencies, as substitutes for direct investments the Fund can make. The Fund may also use derivatives such as swaps, options (including options on futures), futures, and foreign currency transactions (e.g., foreign currency swaps, futures and forwards) to any extent deemed by the Adviser to be in the best interest of the Fund, and to the extent permitted by the 1940 Act, to hedge various investments for risk management and speculative purposes. The Fund may also invest in master limited partnerships ( MLPs ), which are typically characterized as publicly traded partnerships that qualify to be treated as partnerships for U.S. federal income tax purposes and are principally engaged in one or more aspects of the exploration, production, processing, transmission, marketing, storage or delivery of energy-related commodities, such as natural gas, natural gas liquids, coal, crude oil or refined petroleum products (collectively, the energy industry).

Net Asset Value

as of 5:54 PM ET 06/10/2011

Performance

  • 1 Week
  • -2.29%
  • 1 Month
  • -0.81%
  • 3 Months
  • +2.65%
  • 1 Yr Return
  • n/a
  • 5 Yr Return
  • n/a

Equity Sector Breakdown

Finance 44.96%
Health 16.94%
IndustrialCyclical 11.38%
NonDurables 11.12%
Technology 7.04%
RetailTrade 6.03%
Utilities 2.86%
Services 1.40%
ConsumerDurables 1.32%
Energy 1.28%

Asset Allocation

Asset Type % Of Allocation
Stocks 83.77%
ForeignStocks 15.41%
Other 13.00%
Preferred 9.56%
Cash 0.00%
Bonds 0.00%
Convertible 0.00%
ForeignBonds 0.00%
ForeignHedged 0.00%
Total Net Assets 2.10 M

Risk Measures

Criteria 3 Years 5 Years 10 Years
Alpha -30.89 -20.96 -12.41
Beta 1.68 1.52 1.37
R Squared 0.62 0.54 0.53
Std Deviation 39.37 31.71 24.64
Sharpe Ratio -0.06 0.11 n/a

Purchase Information

as of 5:57 PM ET 06/09/2011
Minimum Initial $0
Minimum Additional $0
Minimum Initial IRA $0

Performance

Timeframe Average Annual Current Performance Monthly As Of 11/30/2021 Average Annual Current Performance Quarterly As Of 09/30/2021 Avg Annual Current Performance Monthly As Of 11/30/2021 Avg Annual Current Performance Quarterly As Of 09/30/2021
1 Year
  • +48.79%
  • +73.28%
+48.79% +73.28%
3 Year
  • -10.26%
  • -12.31%
-10.26% -12.31%
10 Year
  • +4.90%
  • +6.11%
+4.90% +6.11%
Life Of Fund
  • +7.30%
  • +7.24%
+7.30% +7.24%

Top 10 Holdings

Symbol Company Name % Of Assets
BHR BRAEMAR HOTELS & RESORTS INC 9.56%
EURBr.AT EFG EUROBANK ERGASIAS 7.90%
ALBKY ALPHA SERVICES & HOLDINGS S 4.66%
SGRY SURGERY PARTNERS INC 4.05%
CHRS COHERUS BIOSCIENCES INC 3.34%
AYX ALTERYX INC 3.12%
IRT INDEPENDENCE REALTY TRUST IN 2.89%
PRTK PARATEK PHARMACEUTICALS INC 2.88%
HRTX HERON THERAPEAUTICS INC 2.37%
ET ENERGY TRANSFER LP 2.29%

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