NXDT - HFRO: Discount To NAV Widens To 53% For A 7% Yield
2024-06-28 03:58:52 ET
Summary
- Highland Opportunities and Income Fund trades at a 53% discount to NAV.
- The recent purchase of QuarterNorth by Talos Energy validated at least some marks on the book as accurate.
- We look at where the rest of the fund stands.
Trading at a close to 50% discount to net asset value, we saw some promise in Highland Opportunities and Income Fund ( HFRO ). This was at the beginning of this year and while we were optimistic, we were far from being buyers. We went with a neutral aka "hold" rating for this closed end fund. The fund managers were looking into initiatives to reduce the discount, and the cash flow savings from halving the distribution cut would help on that front. Looking for opportune exit points on some of the investments would also soothe the pain....
HFRO: Discount To NAV Widens To 53% For A 7% Yield