Portfolio Management
https://www.hcmlp.com/Retail/ClosedEndFunds/Literature.aspx?fundid=23 |
| Brad Borud - Partner & Chief Investment Officer of Retail Products - Investment experience since 1994 - BS, Indiana University |
| Brad Means, CFA - Partner & Senior Portfolio Manager - Investment experience since 1993 - BSBA - Summa Cum Laude, Creighton University; MBA, Stanford University |
Objective
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| Highland Credit Strategies Fund ("the Trust") investment objectives are to provide both current income and capital appreciation. |
Strategy
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The Trust will pursue its objectives by investing primarily in the following categories of securities and instruments of corporation and other business entities: (i) secured and unsecured floating and fixed rate loans; (ii) bonds and other debt obligations; (iii) debt obligations of stressed, distressed and bankrupt issuers; (iv) structured products, including but not limited to, mortgage-backed and other asset-backed securities and collateralized debt obligations; and (v) equities. Additionally, within the categories of obligations and securities in which the Trust may invest, Highland may employ various trading strategies, including but not limited to, capital structure arbitrage, pair trades and shorting. The Trust may also invest in these categories of obligations and securities through the use of derivatives. Highland will seek to achieve its capital appreciation objective by investing in category (iii) and (v) obligations and securities, and to a lesser extent, in category (i), (ii), and (iv) obligations.
Under normal market conditions, at least 80% of the Trust’s assets will be invested in one or more of these principal investment categories. Subject only to this general guideline, Highland Capital Management, L.P., the Trust’s investment adviser (“Highland” or the “Investment Adviser”), has broad discretion to allocate the Trust’s assets among these investment categories and to change allocations as conditions warrant. The Investment Adviser has full discretion regarding the capital markets from which it can access investment opportunities in accordance with the investment limitations set forth in the prospectus. A significant portion of the Trust’s assets may be invested in securities rated below investment grade, which are commonly referred to as “junk securities”. The Investment Adviser does not anticipate a high correlation between the performance of the Trust’s portfolio and the performance of the corporate bond and equity markets. There can be no assurance that the Trust’s investment objectives will be achieved. |
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