Bloomberg reports that Dallas-based Highland Capital has shot for and scored the trifecta: the firm will be closing its third fund since October. This time its the CDO Opportunity Fund LP, which was “wiped out by losses on high-risk debt securities” and will be wound down, with remaining assets being distributed to creditors, and sad trombones being distributed to shareholders. According to those in charge of the we lost all your money letter, the matter of insolvency occurred due to “the unprecedented market volatility and disruption to the financial system,” which sounds familiar because its what they said when they closed the Highland Credit Strategies Fund and the Highland Crusader Fund.
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- Use the Bloomberg command
NH BLG_DEALBREAKER <GO>
to access Dealbreaker
Highway Robbery.
Jim Dondero, spent too much time on the womanizing
“We are extremely disappointed in the funds’ performance and this outcome, but believe there is no viable path to any recovery for investors,” Highland said in the letter.
send that to rham and gibbs so that next week we can hear:
“We are extremely disappointed in Timmay’s performance and this outcome, but believe there is no viable path to any recovery. . . “
Hey Maria – here’s a clue for you – GE is one of the weak players. They should close CNBC and throw your short, fat ass out on the street.
I thought Maria was tall?
Anyone have a copy of the investor letter?
@ 2…with KB as his wing man.
Traders don’t lose money…..”unprecedented market volatility and disruption to the financial system” does.
For a minute I thought they were closing on a NEW fund, and I was thinking “wow, that takes balls to give these idiots more money”. Then I realized they were closing shop.
love the trombone
Any one have any insight as to why this just happened now? CLO Equity and BB/BBBs have been in the single digits for a few months now. Did someone call in their loan? This firm is finished. I give it a few weeks until the CDO Holdco fund (which ownes Highland’s managed equity) blows up too. Could not have happened to a nicer group of guys. They were Beta all the way.
Although this is just a precursor to the impairment liquidations coming from banks, pensions, and insurance companies when the As/AAs go below IG.
This is what happens when you have “bankers” try to do the job of traders and strategists. Don’t they have a 60 hour minimum workweek? Doesn’t Bridgewater have a 50 hour maximum workweek.
hmm…. makes you think
They consistently hired the least intelligent or thoughtful(but hardest working – so they got away with it) bankers from my analyst class. Not suprising at all.
He’s the greatest of the greater get it straight he’s great.
I got a shotgun and a rifle and a four wheel drive
and a countryboy can survive. Country folks can survive.
Sounds like sour grapes #13. With those sixty-five hours Highland’s internal memos and presentations looked great.
On the whole the analysts and PM’s at Highland were really bright. They may not have been utilized most effectively though.
Also, I don’t believe suprising is a word, did you mean surprising? The devil is in the details.
#11: CDO Holdco is not a fund but a subsidiary of Highland Financial Partners, their permacap attempt, and it already blew up. Letter went to investors earl;ier this month. That make how many? Crusdaer, Credit Strategies, CDO Opportunity, a market value CDO, Highland Financial Partners, their BDC, and various other retail funds……the doors have to be closing very soon.
Also, no. 11: the reason it is just coming now is that two counterparties just recently shut down two warehouses that collectively execeeded $1billion.
#13 There were some very sharp people that worked there but the top was populated with a bunch of “hangers on” from the early years that wouldn’t tell Dondero no….the problem with highland is simple: too much leverage and the arrogance of one man that he knew better than everyone else. sad really
@7…you mean Dondero was KBs wingman.
Highland CDO Opportunity Fund
… “We see a significant opportunity to buy up CLO-related debt and equity at really attractive prices,” Mr. Yang added. Highland will charge investors a 1.75% management fee and a 20% performance fee, according to information distributed to investors.
If you lose $500 million and have 20% performance fee-Who do you give the $100 million away to?
Let them eat giraffe jerky-Jim Dondero in Marie Antoinette’s panties
http://www.bloomberg.com/apps/news?pid=20601085&sid=aiEXyCJgbsWc&refer=europe
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