NexPoint Strategic Opportunities Fund (NHF)

Fund Update | August 2020

At a Special Meeting of Shareholders on August 28, 2020, shareholders voted to approve the proposal to convert the fund to a diversified REIT. Read the press release and proxy statement for more information.

Fund Overview

NexPoint Strategic Opportunities Fund (NYSE:NHF) is a closed-end fund managed by NexPoint Advisors, L.P. that seeks to provide both current income and capital appreciation. The fund invests primarily in below-investment-grade debt, equity securities, and real estate, and has the ability to hedge risk. The fund’s manager attempts to deliver consistent returns in excess of the Dow Jones Credit Suisse Hedge Fund and the HFRX Global Hedge Fund indices in a transparent, registered fund format consistent with monthly dividends.

NHF

Ticker

$16.67

NAV

6/26/06

Inception

Portfolio Manager

James Dondero | Founder, NexPoint
James Dondero is the founder of NexPoint. In addition to overseeing the group’s business and investment activities, Mr. Dondero serves as the portfolio manager of the NexPoint Strategic Opportunities Fund (NYSE:NHF). He is also an officer and director at NexPoint’s publicly traded REITs…

Contact Information

Shareholder Services
NexPoint Strategic Opportunities Fund
(866) 351-4440

Sales Consultants
NexPoint Sales Desk (Main)
(877) 665-1287

NHF Midyear Update and Outlook

An update on the fund and the current portfolio, an overview of 2020 thus far, and an outlook for the remainder of the year (and beyond)

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NHF Recent Press Releases

October 15, 2020 in NHF, PRESS RELEASE

NexPoint Strategic Opportunities Fund Announces Tender Offer, Provides Update on Monthly Distribution and REIT Transition Process

NexPoint Strategic Opportunities Fund Announces Tender Offer for up to 15 Million Common Shares in Exchange for $150 Million in Preferred Shares and Cash, Provides Update on Monthly Distribution and…
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September 1, 2020 in NHF, PRESS RELEASE

NexPoint Strategic Opportunities Fund Declares Regular Monthly Distribution

DALLAS, Sept. 1, 2020 -- NexPoint Strategic Opportunities Fund (NYSE: NHF) ("NHF" or the "Fund") today announced its regular monthly distribution on its common stock of $0.10 per share. The distribution will be…
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August 28, 2020 in NHF, PRESS RELEASE

NexPoint Strategic Opportunities Fund Shareholders Approve REIT Conversion Proposal

With Approval of Proposal, Fund to Begin Transition to Diversified REIT DALLAS, Aug. 28, 2020 -- NexPoint Strategic Opportunities Fund (NYSE:NHF) ("NHF" or the "Fund"), a closed-end fund managed by NexPoint Advisors,…
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August 3, 2020 in NHF, PRESS RELEASE

NexPoint Strategic Opportunities Fund Declares Regular Monthly Distribution

DALLAS, Aug. 3, 2020  -- NexPoint Strategic Opportunities Fund (NYSE: NHF) ("NHF" or the "Fund") today announced its regular monthly distribution on its common stock of $0.10 per share. The distribution will be…
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July 10, 2020 in NHF, PRESS RELEASE

NexPoint Strategic Opportunities Fund Files Definitive Proxy Statement for Proposal to Convert Fund to Diversified REIT

Special Meeting of Shareholders Scheduled for August 28, 2020 Fund's Board and Independent Trustees Recommend Shareholders Vote "FOR" Proposal   DALLAS, July 10, 2020 -- NexPoint Strategic Opportunities Fund (NYSE: NHF) ("NHF"…
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July 1, 2020 in NHF, PRESS RELEASE

NexPoint Strategic Opportunities Fund Declares Regular Monthly Dividend

DALLAS, July 1, 2020 -- NexPoint Strategic Opportunities Fund (NYSE: NHF) ("NHF" or the "Fund") today announced its regular monthly dividend on its common stock of $0.10 per share. The dividend will be…
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Update on Claymore Holdings LLC v. Credit Suisse AG Case | October 2, 2020

Update on the Claymore Holdings LLC v. Credit Suisse AG Case Related to the NexPoint Strategic Opportunities Fund as of October 2, 2020

The following provides an update on the case against Credit Suisse, AG, Cayman Islands Branch, and Credit Suisse Securities (USA), LLC (“Credit Suisse”).

On October 2, 2020, the Texas Supreme Court (the “Court”) released an order denying the Motion for Rehearing (the “Motion”). The Motion was filed by Claymore Holdings LLC (“Claymore”), the Highland Capital Management and NexPoint affiliate (together “Highland”) that pursued the collective claims on behalf of the Highland Income Fund (NYSE:HFRO) and the NexPoint Strategic Opportunities Fund (NYSE:NHF) (together the “Funds”).

BACKGROUND ON THE CASE

The case was originally filed in 2013. Following a bench trial and jury trial, a trial court issued a judgment in favor of Claymore in 2015, which was confirmed by an appellate court in 2018. An appeal of that ruling sent the case to the Texas Supreme Court, which heard the case on January 8, 2020.

BACKGROUND ON THE TEXAS SUPREME COURT’S REVIEW OF THE CASE

The Court issued an order on April 24, 2020 that affirmed in part and reversed in part the 2018 ruling from the court of appeals. In the April 24 order, the Court upheld the $40 million fraud verdict that resulted from the jury trial; however, it did not uphold the $211 million in contract damages and equitable relief awarded to Claymore by the trial court following the bench trial. In its opinion, the Court noted procedural issues related to the calculation of damages among the reasons for reversing part of the appellate court ruling.

Highland was encouraged that the Court recognized the fraud that Credit Suisse committed against the Funds but believed the decision to reverse part of the appellate court ruling did not fully account for damages evidence presented to the lower courts. On June 12, 2020 (in response to the April 24 order) Claymore filed the Motion, formally raising these concerns to the Court.

INFORMATION ON THE TEXAS SUPREME COURT’S OCTOBER 2, 2020 ORDER

Highland is disappointed that the Court, in its decision not to rehear the case, did not recognize these concerns. As a result of today’s order, the April 24 order stands. The Court did not include a total award amount in the April 24 order, and instead remanded back to the trial court for a determination of damages.

The trial court has the ability to consider and resolve other matters as part of its decision, which may affect the final judgment amount. Once the matter is referred to the trial court, the trial court likely will give an indication of expected timing and next steps.

This represents the final opportunity to make arguments to the Texas Supreme Court that could affect the ultimate award amount. However, Highland currently does not know what specific matters the trial court may consider.

Highland therefore does not currently know the amount of a final judgment, as it will be determined by the trial court.

No award amount has been recorded in the Funds’ net asset values at this time.

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Update on Claymore Holdings LLC v. Credit Suisse AG Case | June 12, 2020

Update on the Claymore Holdings LLC v. Credit Suisse AG Case Related to the NexPoint Strategic Opportunities Fund as of June 12, 2020

The following provides additional information on the order from the Texas Supreme Court (the “Court”) in the Claymore Holdings LLC (“Claymore”) case against Credit Suisse, AG, Cayman Islands Branch, and Credit Suisse Securities (USA), LLC (“Credit Suisse”).

Claymore is the Highland Capital Management and NexPoint affiliate (together “Highland”) that pursued the collective claims on behalf of the Highland Income Fund (NYSE:HFRO) and the NexPoint Strategic Opportunities Fund (NYSE:NHF) (together the “Funds”).

The Texas Supreme Court (the “Court”) release an order on April 24, 2020. A party may file a motion for rehearing with the Court within a 15-day window following the issuance of an order or request an extension to move for rehearing.

Claymore requested an extension from the Court to move for rehearing, which has been granted.

On June 12, 2020, Claymore filed a motion for rehearing. Once a motion for rehearing has been filed, the Court has 90 days to respond with a decision on whether or not it will grant a rehearing.

No award amount has been recorded in the Funds’ net asset values at this time.

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