NexPoint Merger Arbitrage Fund (HMEZX)

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The chart shows the growth of an initial investment of $10,000 in NexPoint Merger Arbitrage Fund, comparing it to the performance of the S&P 500 index or another benchmark. All prices have been adjusted for splits and dividends.

NexPoint Merger Arbitrage Fund (HMEZX) has returned 0.66% so far this year and 5.60% over the past 12 months. Over the last ten years, HMEZX has returned 5.88% per year, falling short of the S&P 500 Index benchmark, which averaged 12.16% annually.

Based on dividend-adjusted daily data since Jan 4, 2016, HMEZX's average daily return is +0.02%, while the average monthly return is +0.50%. At this rate, your investment would double in approximately 11.6 years.

Historically, 85% of months were positive and 15% 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%.

NexPoint Merger Arbitrage Fund has an annualized alpha of 5.49%, beta of 0.05, and R² of 0.06 versus S&P 500 Index. Calculated based on daily prices since January 05, 2016.

• This fund captured 15.43% of S&P 500 Index gains and tended to rise during its downturns (downside capture of -8.95%) — 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.

HMEZX has a high expense ratio of 1.50%, indicating above-average management fees.

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.

The table below present risk-adjusted performance metrics for NexPoint Merger Arbitrage Fund (HMEZX) and compare them to a chosen benchmark (S&P 500 Index).

NexPoint Merger Arbitrage Fund provided a 5.07% dividend yield over the last twelve months, with an annual payout of $1.01 per share.

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.

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.

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 chart below shows the rolling one-month volatility.