- HFRO pays an 8.5% distribution yield and trades at a 22% discount to NAV.
- HFRO management is recommending a conversion from an income-based closed-end fund to a diversified holdings company.
- Phil Goldstein, Mike Taggart, Tom Herzfeld and ISS (corporate governance advisor) have all come out opposing the HFRO conversion plan.
- HFRO and sister fund NHF have a long running lawsuit with Credit Suisse originally filed in 2013. The two funds were awarded $121 million before litigation expenses, but Credit Suisse has appealed the case.
- HFRO has offered several shareholder-friendly "inducements", but these will only occur if shareholders vote to approve the HFRO conversion plan.
For further details see:
Highland Income Fund: High Discount, High Yield, Questionable Corporate Governance And Lots Of Drama