Highland Capital Announces Portfolio Manager Changes

January 2, 2009 (PLANSPONSOR.com) - Highland Capital Management, L.P. has announced portfolio management changes to two funds, effective January 1.

According to an announcement, the changes affect the portfolio management teams of Highland Credit Strategies Fund (ticker: HCF) and Highland Distressed Opportunities, Inc. (ticker: HCD).   Highland Credit Strategies Fund will be managed by Brad Borud and Brad Means. Borud is currently a member of the portfolio management team for Highland Credit Strategies Fund, while Means is a Senior Portfolio Manager at Highland, according to the firm.   Highland Distressed Opportunities, Inc. will be managed by Brad Borud and Greg Stuecheli.   Both are currently members of the portfolio management team for Highland Distressed Opportunities, Inc.

The Funds

Highland Credit Strategies Fund (HCF) is a non-diversified, closed-end management investment company, with investment objectives are to provide both current income and capital appreciation. HCF invests primarily in secured and unsecured floating and fixed rate loans, bonds and other debt obligations, debt obligations of stressed, distressed and bankrupt issuers, Highland has served as HCF’s adviser since its inception in 2006.

Highland Distressed Opportunities, Inc. (“HCD”) is a recently-organized, non-diversified closed-end company that has elected to be treated as a business development company under the Investment Company Act of 1940. HCD’s investment objective is total return generated by both capital appreciation and current income, and it seeks to primarily invest in financially-troubled or distressed companies that are either middle-market companies or unlisted companies by investing in senior secured debt, mezzanine debt and unsecured debt, each of which may include an equity component, and in equity investments.

Borud is a Partner, Senior Trader and Chief Investment Officer—Retail Products at Highland. Prior to his current duties, he served as a Senior Trader and Co-Director of Portfolio Management for Highland from 2003 to 2008, as a Portfolio Manager and Team Leader from 2001 to 2003, as a Portfolio Manager from 1998 to 2001, and as a Portfolio Analyst from 1996 to 1998. As a Portfolio Manager, Mr. Borud covered a wide range of industries, including wireline telecommunications, wireless telecommunications, telecommunication equipment manufacturers, multi-channel video and media. Prior to joining Highland in November 1996, he worked as a Global Finance Analyst in the Corporate Finance Group at NationsBank from 1995 to 1996 where he was involved in the originating, structuring, modeling and credit analysis of leveraged transactions for large corporate accounts in the Southwest region of the United States, according to a press release. In 1994, Borud served at Conseco Capital Management as an Analyst Intern in the Fixed Income Research Department, following the transportation and energy sectors.

Means is a Partner and Senior Portfolio Manager at Highland. Prior to joining Highland in May 2004, he was a Managing Director in FTI Consulting's Corporate Finance group where he worked on corporate turnaround, restructuring and bankruptcy advisory engagements. From 1998 to 2001, he was a Director in PricewaterhouseCoopers LLP's Chairman's Office and focused on enterprise strategy, venture capital, business development and divestiture initiatives. Prior to his role in the Chairman's Office, Means worked in the Strategic Change Consulting and the Assurance & Business Advisory groups of Price Waterhouse serving clients across a range of industries including Automotive, Energy, Financials and Industrials.

Stuecheli is a Partner and Senior Portfolio Manager at Highland. Prior to his current duties, he was a Portfolio Manager for Highland covering distressed and special situation credit and equity investments. Prior to joining Highland in June 2002, he served as an analyst for Gryphon Management Partners, LP from 2000 to 2002, where his primary responsibilities included researching long and short investment ideas. In 1999, he was a Summer Associate at Hicks, Muse, Tate & Furst, and from 1995 to 1998, Stuecheli worked as a chemical engineer at Jacobs Engineering Group and Cytec Industries.

About Highland Capital

Highland Capital Management, L.P., the investment adviser to each of Highland Credit Strategies Fund and Highland Distressed Opportunities, Inc., is an alternative investment management firm specializing in credit and structured products. Headquartered in Dallas, Texas, Highland manages assets on behalf of investors around the world with offices in New York, Singapore, and London