If you are an investor who sustained financial losses from the Highland Floating Rate Advantage Funds, please contact the securities fraud law firm of Shepherd Smith Edwards and Kantas, LTD, LLP right away and ask for your free case evaluation.
Unfortunately, the Highland Floating Rate Funds, which have produced negative returns over five years, continue to be a source of dismay for investors. Funds include the Class Z Shares (Symbol: XLAZX), Class C Shares (Symbol: XLACX), and Class A Shares (Symbol: XSFRX).
Per Highland sales collateral, the Highland funds are purported to use leverage to up the yield potential while aiming for credit risk management and capital reservation. Many of the investors that chose to back the Highland Floating Rate Funds did so because they thought that a greater return was offered without the downside of substantial risks. However, a reason that the funds didn’t do well is that the loans they were invested in had been rated as “junk” or lower than investment grade.