Highland Capital Management, an investment management firm based in Dallas, Texas, has closed its CLO Value Fund I with a gross return of 138 per cent to its investors.

Highland launched the CLO Value Fund I in November 2008 to primarily invest in secondary collateralized loan obligation debt and equity.

Highland thought it would be prudent to close the fund and return all capital to its investors in order to realise gains. The fund originally had a 2014 maturity date.

Gibran Mahmud, portfolio manager of the CLO Value Fund I, says: "Coming off the success of our first CLO Value Fund, we still see plenty of opportunity for investors in this market over the next six to 18 months. We believe that in the next phase of the recovery it will be critical for investors to have both the experience and expertise in understanding the structural nuances of CLOs as well as the underlying loan collateral."