Highland Refutes Redemption Rumors

Summary


NEW YORK (HedgeWorld.com) - Highland Capital Management LP, the Dallas-based leveraged loan and distressed hedge fund, had a bad January, but Highland officials said the ship is still sailing.

Jack Yang, a New York-based partner at Highland, said in an interview that Highland's flagship corporate debt vehicle, Crusader Fund, which has $3 billion in assets, has seen redemptions totaling $100 million, a figure that represents 3% of the fund's assets under management. Given current market conditions, this is not a large figure, according to market sources. Most hedge fund investors rebalance their portfolios on a regular basis and there is nothing unusual about ongoing redemptions in any fund at any time. In addition, the $100 million redemption requests are for the quarter ending June 30; the redemption notice deadline is March 31.

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Highland Refutes Redemption Rumors

Perhaps more noticable are the redemptions in another Highland hedge fund, a multi-strategy fixed-income fund, said a person familiar with Highland. In that fund, which at more than $1 billion in assets is about one-third the size of the Crusader Fund, there are nearly as many redemption requests.

Highland's candid assessme...

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