- ISIN
- US4301016428
- CUSIP
- 430101642
- Issuer
- Highland Funds
- Inception Date
- Aug 18, 2016
- Category
- Event Driven
- Min. Investment
- $2,500
- Distribution Policy
- Distributing
- Asset Class
- Alternatives
Share Price Chart
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Performance
HMEZX Performance Chart
NexPoint Merger Arbitrage Fund (HMEZX) is up 1.6% since the beginning of the year. HMEZX is currently trading at $20 per share. Investors who bought $1,000 worth of HMEZX shares 5 years ago would now be looking at an investment worth $1,268.
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Returns By Period
NexPoint Merger Arbitrage Fund (HMEZX) has returned 1.63% so far this year and 5.28% over the past 12 months. Over the last ten years, HMEZX has returned 5.90% per year, falling short of the S&P 500 Index benchmark, which averaged 13.88% annually.
NexPoint Merger Arbitrage Fund
- 1D
- 0.10%
- 1M
- -0.05%
- YTD
- 1.63%
- 6M
- 1.63%
- 1Y
- 5.28%
- 3Y*
- 6.76%
- 5Y*
- 4.87%
- 10Y*
- 5.90%
Benchmark (S&P 500 Index)
- 1D
- -0.37%
- 1M
- -0.01%
- YTD
- 9.16%
- 6M
- 8.64%
- 1Y
- 25.22%
- 3Y*
- 19.78%
- 5Y*
- 11.99%
- 10Y*
- 13.88%
HMEZX Monthly Returns History
Based on dividend-adjusted daily data since Jan 4, 2016, HMEZX's average daily return is +0.02%, while the average monthly return is +0.49%. At this rate, an investment would double in approximately 11.8 years.
Historically, 84% of months were positive and 16% were negative. The best month was May 2018 with a return of +4.5%, while the worst month was Nov 2017 at -2.4%. The longest winning streak lasted 32 consecutive months, and the longest losing streak was 2 months.
On a daily basis, HMEZX closed higher 48% of trading days. The best single day was May 14, 2018 with a return of +3.5%, while the worst single day was May 3, 2018 at -2.3%.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 0.30% | -0.05% | 0.56% | 0.55% | 0.35% | -0.10% | 1.63% | ||||||
| 2025 | 0.61% | 0.40% | 0.31% | 0.35% | 0.66% | 0.72% | 0.40% | 0.45% | 0.81% | 0.45% | 0.75% | 0.22% | 6.30% |
| 2024 | 0.10% | 0.51% | 1.33% | 0.10% | 0.41% | 0.77% | 0.61% | 0.55% | 1.90% | 0.05% | 0.35% | 0.51% | 7.42% |
| 2023 | 0.10% | 0.00% | -0.66% | 0.51% | -1.18% | 0.70% | 0.52% | 1.81% | 0.97% | 0.41% | 0.41% | 0.46% | 4.10% |
| 2022 | 0.10% | 0.49% | -0.27% | -0.05% | 0.20% | 0.11% | 0.40% | 0.45% | -0.39% | 1.22% | 0.35% | 0.07% | 2.70% |
| 2021 | 0.85% | 0.50% | 0.49% | 0.74% | 0.34% | 0.15% | 0.49% | 0.29% | 0.35% | 0.44% | 0.19% | 0.42% | 5.37% |
Benchmark Metrics
NexPoint Merger Arbitrage Fund has an annualized alpha of 5.39%, beta of 0.05, and R2 of 0.06 versus S&P 500 Index. Calculated based on daily prices since January 04, 2016.
- This fund captured 14.80% of S&P 500 Index gains and tended to rise during its downturns (downside capture of -8.96%) - a profile typical of hedging or uncorrelated assets.
- Beta of 0.05 may look defensive, but with R2 of 0.06 this fund is largely uncorrelated with S&P 500 Index - low beta reflects independence, not downside protection. See the Volatility section for a true picture of this fund's risk.
- R2 of 0.06 means this fund moves largely independently of S&P 500 Index - capture ratios reflect limited market correlation rather than active downside protection. Consider using a more representative benchmark.
- Alpha
- 5.39%
- Beta
- 0.05
- R²
- 0.06
- Upside Capture
- 14.80%
- Downside Capture
- -8.96%
Expense Ratio
HMEZX has a high expense ratio of 1.50%, indicating above-average management fees.
Return for Risk
Risk / Return Rank
HMEZX ranks 99 for risk / return — in the top 99% of mutual funds on our site. This means strong returns relative to risk — exactly what professional investors look for. Well-suited for investors who want to maximize return per unit of risk.
Return / Risk — by metrics
The table below present risk-adjusted performance metrics for NexPoint Merger Arbitrage Fund (HMEZX) and compare them to S&P 500 Index.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| HMEZX | Benchmark | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.15 | ||
| Sortino ratioReturn per unit of downside risk | +4.47 | ||
| Omega ratioGain probability vs. loss probability | 2.05 | 1.37 | +0.68 |
| Calmar ratioReturn relative to maximum drawdown | 9.66 | 2.78 | +6.87 |
| Martin ratioReturn relative to average drawdown | 52.13 | 12.44 | +39.69 |
Dividends
Dividend History
NexPoint Merger Arbitrage Fund provided a 5.08% dividend yield over the last twelve months, with an annual payout of $1.01 per share.
| Period | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend | $1.01 | $1.01 | $1.26 | $0.99 | $1.01 | $0.74 | $1.16 | $0.06 | $3.46 | $1.40 | $0.00 |
Dividend yield | 5.08% | 5.04% | 6.36% | 5.07% | 5.11% | 3.63% | 5.83% | 0.33% | 19.16% | 6.88% | 0.02% |
Monthly Dividends
The table displays the monthly dividend distributions for NexPoint Merger Arbitrage Fund. The dividends shown in the table have been adjusted to account for any splits that may have occurred.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | $0.00 | $0.00 | $0.25 | $0.00 | $0.00 | $0.25 | $0.50 | ||||||
| 2025 | $0.00 | $0.00 | $0.25 | $0.00 | $0.00 | $0.25 | $0.00 | $0.00 | $0.25 | $0.00 | $0.00 | $0.25 | $1.01 |
| 2024 | $0.00 | $0.00 | $0.25 | $0.00 | $0.00 | $0.25 | $0.00 | $0.00 | $0.51 | $0.00 | $0.00 | $0.25 | $1.26 |
| 2023 | $0.00 | $0.00 | $0.25 | $0.00 | $0.00 | $0.25 | $0.00 | $0.00 | $0.25 | $0.00 | $0.00 | $0.25 | $0.99 |
| 2022 | $0.00 | $0.00 | $0.25 | $0.00 | $0.00 | $0.25 | $0.00 | $0.00 | $0.25 | $0.00 | $0.00 | $0.25 | $1.01 |
| 2021 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.26 | $0.00 | $0.00 | $0.47 | $0.74 |
Drawdowns
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.
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Worst Drawdowns
The table below displays the maximum drawdowns of the NexPoint Merger Arbitrage Fund. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.
The maximum drawdown for the NexPoint Merger Arbitrage Fund was 6.86%, occurring on May 3, 2018. Recovery took 16 trading sessions.
The current NexPoint Merger Arbitrage Fund drawdown is 0.19%.
Related event | Drawdown | Fall | Recovery | Underwater |
|---|---|---|---|---|
2018 pullback2018 | -6.86%May 2018 | 1mo 28d | 22d | 2mo 20dMar 2018 - May 2018 |
COVID crash2020 | -4.29%Mar 2020 | 26d | 2mo 19d | 3mo 15dFeb 2020 - Jun 2020 |
2018 pullback2018 | -3.48%Feb 2018 | 3mo 26d | 24d | 4mo 20dOct 2017 - Mar 2018 |
Rate-hike selloffLate 2018 | -3.01%Sep 2018 | 3d | 8d | 11dSep 2018 - Sep 2018 |
2017 pullback2017 | -2.60%Aug 2017 | 1mo 27d | 1mo 18d | 3mo 15dJun 2017 - Oct 2017 |
Drawdown Indicators
| HMEZX | Benchmark | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.86% | -56.78% | +49.92% |
Max Drawdown (1Y)Largest decline over 1 year | -0.55% | -9.10% | +8.55% |
Max Drawdown (3Y)Largest decline over 3 years | -1.06% | -18.90% | +17.84% |
Max Drawdown (5Y)Largest decline over 5 years | -1.94% | -25.43% | +23.49% |
Max Drawdown (10Y)Largest decline over 10 years | -6.86% | -33.92% | +27.06% |
Current DrawdownCurrent decline from peak | -0.19% | -1.80% | +1.61% |
Average DrawdownAverage peak-to-trough decline | -0.37% | -10.71% | +10.34% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.10% | 2.03% | -1.93% |
Volatility
Volatility Chart
The chart below shows the rolling one-month volatility.
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