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Highland Funds I - Highland Income Fund (HFRO)

NYSE - NYSE Delayed Price. Currency in USD
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11.22-0.04 (-0.36%)
At close: 04:00PM EST
11.22 +0.04 (+0.33%)
After hours: 04:00PM EST
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  • J
    Joe
    I don't get it. Before the proposal this was trading at or slightly above $12 per share. Now there is selling at $11.20. Distribution at 8% and an 18% discount to NAV.
  • D
    Dennis
    I like this setup:
    -10.80 closing price yesterday
    -Fund NAV $14.02 (As of Oct 12, 2021). 23% discount.
    -Announced stock buyback ~5% of shares over next six months.

    What I look forward to:
    ~17% gain WHEN we make it back to 90% of NAV
    ~30% gain IF we make our way back to the 14.02 NAV
    ~8.5% dividend to collect while we wait

    The past 4 months were frustrating. The next 4 should be quite the opposite.
  • j
    jeff
    Great work everyone. They've withdrawn the proposal. Guess they figured out it would
    never pass.

    https://seekingalpha.com/pr/18511943-highland-income-fund-hfro-provides-update-on-proposal-to-convert-fund-to-diversified-holding
    Highland Income Fund (HFRO) Provides Update on Proposal to Convert the Fund to a Diversified Holding Company
    seekingalpha.com
  • M
    Mudslinger
    As of today, I am out of HFRO at $11.30. I was hoping to stay at least until $12, but the constant drama surrounding James Dondero has scared me away. He is not an honorable person. Google this recent headline:
    "Highland Capital Management alleges former CEO James Dondero ‘siphoned’ millions owed creditors"
    GLTA.
  • J
    Joe
    NAV up 10 cents on a big down day for the market.
  • J
    Joe
    "Adviser Announces Decision to Withdraw Proposals, Outlines Plans for HFRO Under Current Structure"
  • T
    Turbo
    I'd like to thank the trustees of the fund for finally realizing that the proposed conversion was not supported by the shareholders. I had to smile when I saw the statement "Your Board is Listening to its Investors" in the letter dated September 30, 2021 from Frank Waterhouse, the Principal Executive Officer of the company.

    Sometimes you have to hit people over the head with a 2X4 to get them to do the right thing.😁
  • M
    Mudslinger
    Bulldog has just released another update: https://www.sec.gov/Archives/edgar/data/0001067621/000139834421019238/fp0069014_ex997a.htm
    Phillip Goldstein is my hero!
  • M
    Mudslinger
    "Special Meeting of Shareholders Adjourned to October 15, 2021, to Allow Shareholders to Review Latest Supplement to Proxy Statement"
  • J
    Joe
    Wow 600,000 shares traded at 10am and it hardly moved the price.
  • D
    Dennis
    Vote NO. Mgmt did it again and postponed b/c they didn't have the votes. Mgmt seems determined to delay, delay, delay until they get the vote they want. Frustrated, but holding. Here's an idea...mgmt leaves to pursue their new business idea...new mgmt comes in and runs the existing fund.
  • A
    Anonymous
    Posting on all three messages boards, Pros-Cons of NHF,HFRO,HGLB versus each other. I am planning on put about 2,000,000 of 5,000,000 portfolio into the three. My first thought is about 100,000 shares NHF and 50,000 HGLB and skipping HFRO. Any thoughts?
  • M
    Mudslinger
    Well folks, the rescheduled "special meeting" to vote on the proposal is supposed to happen this Friday.. unless they adjourn it again. :-)
    I've spent a few hours reading about it and I'm sure most of you have too. Dondero does not sound like a nice person. He seems like he couldn't care less about us shareholders.
    What a shame. I had bought into HFRO in January this year - switched from another CEF - and it was doing everything I had hoped. The discount to NAV was shrinking, the distribution seemed safe (NAV was increasing), and consequently price was going up accordingly. Then Dondero pulled this stunt and everything came crashing down. I'm nearing retirement and this was a kick in the gonads I didn't need, nor do any of you I'm sure.
  • D
    David
    The apparent discount from NAV is as of yesterday 21.7% with a regular monthly distribution on its common stock of $0.0770 per share on September 30, 2021 to shareholders of record at the close of business September 23, 2021.
  • D
    Dave
    MIAMI BEACH, Fla., Aug. 26, 2021 (GLOBE NEWSWIRE) -- Thomas J. Herzfeld Advisors, Inc. (the “TJH”) today announced that it has submitted written materials pursuant to Rule 14a-6(g)(1) promulgated under the Securities Exchange Act of 1934. Those written materials consist of an open letter to shareholders of The Highland Income Fund(HFRO) urging shareholders of HFRO to vote AGAINST a management proposal to convert the closed end fund into an unregulated holding company.
  • D
    David
    Having held more than many shares of HGLB through the conversion to closed-end fund status, and now with the HFRO shares trading approx 24% discount to NAV, how can the board of directors unanimously vote to change the structure of HFRO to a diversified holding company in lieu of requesting a wind-down of HFRO by way of maturities and sales of existing holdings? Guggenheim currently in wind-down on their credit income fund and it's absolutely the only fair and equitable thing to do for shareholders versus taking a fund public or converting it to another structure. We hold many shares of HFRO and there's going to be further legal courses taken/filed arguing a wind-down is far and away the most advantageous way to end HFRO as it sits and that doing a conversion to a different structure is in violation of the board of directors role in being an advocate for shareholder interests. If HFRO nets an $80 million award from Credit Suisse litigation, there's more than $14 of value to each existing shareholder. Anything less than $13.50 in value netted in the next year by a shareholder is negligence, pure greed, and grounds for action against Highland, its executives and its board of directors.
  • D
    David
    As of yesterday the discount from net asset value (if you can believe their website) was 17.9%. Now with an additional decline of 7.7%, the discount from net asset value if 25.6%. If they were truthful about increasing shareholder value they would liquidate the fund at $13.51 per share minus minor expenses and return a 20% + to shareholders. But , in fact, what they apparently care most about are the high fees that go into their pockets.
  • r
    rick
    MGMT just postponed the special meeting vote on their proposal for a month so that shareholders can have more time to evaluate the last minute sweetener - buy back 5% if big proposal passes.
    Obviously they looked at thew voting results and saw shareholders rejected both of their proposals. Might be interesting to see how much management would personally benefit from the proposals going through vs benefits to shareholders - real benefits not just projections. Good news for shareholders.
  • J
    Joe
    So I will ask again. If the proposal to convert to a holding company is defeated, then what? What is the plan going forward (for the investment manager, trustees, and shareholders). So we stay a CEF, that's great, but the fact remains that the payout is 1/2 return of capital. And we all wish they would just liquidate and give us almost $14 per share, but that ain't gonna happen.
  • T
    Turbo
    Management and trustees of the fund have proposed a tender offer that will be implemented if the conversion is approved. Under the proposed tender offer, the Fund will purchase for cash up to $50 million in aggregate value of Common Shares at a price equal to 95% of the net asset value per Common Share.

    It appears that this offer would amount to the company buying back about 5% of the stock. Personally, I would rather get 100% of the NAV for all of my shares.