Fund Evaluator:
NexPoint Event Driven Z (HHCZX)
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Fund Details
NexPoint Event Driven Z Overview
NexPoint Event Driven Z (HHCZX) is an actively managed Alternative Event Driven fund. NEXPOINT FUNDS I launched the fund in 2008.
The investment seeks long-term capital appreciation. The fund seeks to achieve its investment objective by primarily investing in equity, debt, and/or derivative securities of companies that the Adviser expects to benefit from an event catalyst. It may invest significantly in the common stock of and other interests (e.g., warrants) in special purpose acquisition companies or similar special purpose entities that pool funds to seek potential acquisition opportunities (collectively, “SPACs”). The fund may invest in SPACs for a variety of investment purposes, including to achieve income. It is non-diversified.
About NexPoint Event Driven Z (HHCZX)
There are 2 members of the management team with an average tenure of 6.30 years: James Dondero (2018), Scott Johnson (2022). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and S&P 500 (TR) (1970) index with a weighting of 100%. NexPoint Event Driven Z has 78 securities in its portfolio. The top 10 holdings constitute 44.1% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
NexPoint Event Driven Z is part of the Alternative Strategies global asset class and is within the Alternative fund group. NexPoint Event Driven Z has 14.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 82.9%. There is 14.8% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 2.3% (2.3% domestic bond, 0.0% foreign bond and 0.0% convertible bond). NexPoint Event Driven Z has 0.0% of the portfolio in cash.
Assets Under Management
The fund has $65 million in total assets, which is below the $329 million average for the Event Driven category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
HHCZX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The NexPoint Event Driven Z expense ratio is high compared to funds in the Event Driven category. NexPoint Event Driven Z has an expense ratio of 2.30%, which is 20% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. NexPoint Event Driven Z has a portfolio turnover rate of 397%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 218% for the Event Driven category.
Recently, in the month of July 2026, NexPoint Event Driven Z returned -1.8%, which earned it a grade of F, as the Event Driven category had an average return of 0.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
NexPoint Event Driven Z has a trailing yield of 0.00%, which is below the 2.23% category average. The fund normally distributes its income annually and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
NexPoint Event Driven Z Grades
Year to date, the fund has returned -3.9%, 6.3 percentage points worse than the category, which translates into a grade of F. The fund has returned -1.5% over the past year (grade of F), 4.0% over the past three years (grade of F) and 0.8% per year over the past five years (grade of F) and 3.8% per year over the past 10 years (grade of C).
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HHCZX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| HHCZX Return (NAV) | -1.8% | 0.7% | -1.5% | 4.0% | 0.8% | 3.8% |
| HHCZX Grade | F | C | F | F | F | C |
| +/- Category | -1.8% | 0.0% | -7.5% | -2.3% | -3.0% | -0.6% |
| Event Driven Avg | 0.0% | 0.7% | 6.0% | 6.3% | 3.9% | 4.4% |
| HHCZX Tax Cost Ratio | na | na | 0.0% | 0.4% | 0.3% | 0.2% |
HHCZX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| HHCZX Return (NAV) | -3.9% | 6.5% | 7.3% | 5.4% | -5.5% | -17.3% | 22.2% | 11.5% | 12.6% | 8.7% | -14.7% |
| HHCZX Grade | F | D | A | B | F | F | A | A | A | A | F |
| +/- Category | -6.3% | -2.4% | 3.1% | 0.6% | -3.9% | -19.7% | 14.5% | 4.5% | 9.5% | 4.1% | -17.5% |
| Event Driven Avg | 2.4% | 8.9% | 4.2% | 4.8% | -1.6% | 2.4% | 7.7% | 7.0% | 3.1% | 4.6% | 2.8% |
| Risk Measures | |
| Standard Deviation: | 8.2% |
| Total Risk Index: | 0.66 - Below Average |
| Category Risk Index: | 2.19 - High |
| Category Risk Grade: | F (94% Rank) |
| Beta: | 0.21 |
| R-Squared: | 11% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Small-Cap Value |
| Bond Investment Style: | na |
| Yield: | 0.0% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $71 Mil |
| Fund Total Assets: | $ 65 Mil |
| Share Class Type: | Inst |
| Portfolio Turnover: | 397% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 8.4 years | |||
| Average Tenure: 6.3 years | |||
| Managers (Year): Dondero James (2018), Johnson Scott (2022) | |||
Portfolio Composition (as of 3/31/26)
| # of Holdings: | 78 |
| % in Top 10 Holdings: | 44.1% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 14.8% |
Portfolio Allocation |
|
| Domestic Stock: | 82.9% |
| Foreign Stock: | 14.8% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 2.3% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.0% |
Purchase Information
| Fund Family: | NEXPOINT FUNDS I |
| Phone Number: | 877-665-1287 |
| Website: | www.highlandfunds.com |
| Status: | Open |
| Inception Date: | May 5, 2008 |
| Min. Initial Purchase: | $2,500 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 2.30% ( Rating : High ) |
| Category Average Expense Ratio (%): | 1.92% |
| Share Class: | NexPoint Event Driven Z |
| Min. Subsequent Purchase: | $ 50 |
| Min. Subsequent IRA Purchase: | $ 0 |
