Merger Arbitrage Fund


Lamensdorf

JONATHAN LAMENSDORF
Managing Director

Bio »

JONATHAN LAMENSDORF, CFA
Managing Director
Mr. Lamensdorf is a Managing Director and Lead Portfolio Manager at Highland Capital Management Fund Advisors. He has over 20 years of investing experience and 15 years of specific experience within long/short equity. He is responsible for Highland’s dedicated equity funds and is the lead portfolio manager for the Highland Long/Short Equity Fund. Prior to joining Highland in August of 2008, Mr. Lamensdorf spent four years as a Senior Equity Analyst at Walker Smith Capital, a long/short equity hedge fund that managed over $1 Billion in assets. Prior to that, Mr. Lamensdorf spent five years as a senior equity analyst at Precept Capital, Rhombus Capital, and Acharne Capital, a hedge fund affiliated with Soros Management. He holds an MBA from the University of Chicago, a BBA in Finance from the University of Texas at Austin, and has earned the right to use the Chartered Financial Analyst (CFA) designation.

Fund Overview

Investment Objective
  • Seek to achieve positive absolute returns with reduced correlation to equity and fixed income markets.
Investment Strategy
  • Invest in publicly announced mergers to capture the spread between the current price of the target company and the announced offer price for that company.
Investment Rationale
  • Alternative investment that seeks to reduce overall portfolio volatility and correlation.
Fund NAV (As of Jul 25, 2017)
SYMBOLNAV
HMEAX (Class A)$21.19
HMECX (Class C)$21.05
HMEZX (Class Z)$21.31
Fund AUM (As of Jul 25, 2017)
AUM
Total Net Assets$30.19 M
VIEW FULL PERFORMANCE
Class AClass CClass Z
SymbolHMEAXHMECXHMEZX
Inception01/01/1501/01/1501/01/15
Gross Expense Ratio7.14%8.16%6.05%
Net Expense Ratio14.63%5.63%3.51%

Historical Returns & NAV

As of 07/25/2017Class AClass CClass Z
Net Asset Value (NAV)$21.19$21.05$21.31
Daily NAV Change ($)$-0.38$-0.38$-0.37
Daily NAV Change (%)-1.76%-1.77%-1.71%
As of 06/30/2017 MonthlyQuarterlyClass AClass A (w/sales charge)Class CClass C (w/sales charge)Class Z
Year To Date5.90%0.09%5.57%4.57%6.02%
One Year9.53%3.49%8.83%7.83%9.88%
Since Inception8.05%5.59%7.36%7.36%8.42%



View all Literature & Forms

The performance data quoted here represents past performance and is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor’s shares when redeemed may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted.

On May 12, 2016, the Predecessor Fund transferred its assets to the Fund in exchange for the Fund’s Class Z shares. The investment policies, objectives, guidelines and restrictions of the Fund are in all material respects equivalent to those of the Predecessor Fund. In addition, the Predecessor Fund’s portfolio manager is the current portfolio manager of the Fund. As a mutual fund registered under the 1940 Act, the Fund is subject to certain restrictions under the 1940 Act and the Internal Revenue Code of 1986, as amended (the “Code”) to which the Predecessor Fund was not subject. Had the Predecessor Fund been registered under the 1940 Act and been subject to the provisions of the 1940 Act and the Code, its investment performance could have been adversely affected, but these restrictions are not expected to have a material effect on the Fund’s investment program.

The Predecessor Fund did not have distribution policies. The Predecessor Fund was an unregistered Delaware limited partnership and did not qualify as a regulated investment company for federal income tax purposes.

Please consider the investment objectives, risks, charges and expenses of Highland Funds carefully before investing. A prospectus with this and other information about Highland's mutual funds can be found on the Literature tab above. You may also obtain a prospectus for our mutual funds by calling 877-665-1287. Please read the prospectus carefully before investing.

The Advisor has contractually agreed to limit the total annual operating expenses of the Fund to 1.50% of average daily net assets of the Fund. Total net operating expenses including the expense cap and excluding dividends on short sales and interest and dividend expense on securities sold short are Class A 1.89%, Class C 2.55%, and Class Z 1.53%.

*The maximum sales charge for Class A shares is 5.50%

Equity Securities Risk. Equity securities, such as common stocks, are subject to market, economic and business risks that may cause their prices to fluctuate.

Short Sales Risk. Short sales that are not made “against-the-box” (as defined under “Description of Principal Investments”) theoretically involve unlimited loss potential since the market price of securities sold short may continuously increase.

Hedging Risk. Although intended to limit or reduce investment risk, hedging strategies may also limit or reduce the potential for profit. There is no assurance that hedging strategies will be successful.

Market Risk. The Fund’s share price will fluctuate with changes in the market value of its portfolio securities. Many factors can affect this value and you may lose money by investing in the Fund.

Portfolio Turnover Risk. High portfolio turnover will increase the Fund’s transaction costs and may result in increased realization of net short-term capital gains.

Derivatives Risk. Derivatives are subject to the risk that changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index. Derivatives also expose the Fund to the credit risk of the derivative counterparty.

Leverage Risk.  Leverage may increase the risk of loss, cause fluctuations in the market value of the Fund’s portfolio to have disproportionately large effects or cause the net asset value (“NAV”) of the Fund generally to decline faster than it would otherwise.

Non-U.S. Securities Risk. Investments in securities of non-U.S. issuers, particularly securities of emerging market issuers, involve certain risks not involved in domestic investments (for example, expropriation or political or economic instability).

Micro, Small and Mid-Cap Securities Risk. Investments in securities of companies with micro, small or medium capitalizations involve certain risks that may differ from, or be greater than, those for larger companies, such as higher volatility, lower trading volume, fewer business lines and lack of public information.

Non-Diversification Risk. As a non-diversified fund, the Fund may invest a larger portion of its assets in the securities of one or a few issuers than a diversified fund. A non-diversified fund’s investment in fewer issuers may result in the fund’s shares being more sensitive to the economic results of those issuers. An investment in the Fund could fluctuate in value more than an investment in a diversified fund.

Management Risk. The Fund relies on Highland’s ability to achieve its investment objective. Highland may be incorrect in its assessment of the intrinsic value of companies whose securities the Fund holds, which may result in a decline in the value of Fund shares.

Glossary: Click for important terms and definitions

Source: State Street Bank and Trust Company

Highland Funds’ mutual funds are distributed by Highland Capital Funds Distributor