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Highland Global Allocation Fund Failed Shareholders

Jeffrey Ptak, CFA (jeffrey.ptak@morningstar.com)

Highland Capital Management, which manages Highland Global Allocation HGLB , misstated the value of one of the fund's largest holdings, TerreStar, last year. Beyond the restatement, there's reason to question Highland's valuation of TerreStar, a privately held licensee of wireless spectrum capacity. Highland appears to have valued the firm as if it's a stable going concern.