Highland Global Allocation Fund (HGLB) Announces Addition to Portfolio Management Team, Provides Update on Recent NAV Increase

The Highland Global Allocation Fund (NYSE: HGLB) has announced a significant update regarding its portfolio management team and the Fund’s recent net asset value (NAV) increase. Effective October 7, 2025, Scott Johnson, a seasoned investment professional with over 25 years of experience, has joined current portfolio manager James Dondero in overseeing the Fund's investment strategies. Johnson, who is also a managing director at NexPoint, brings a wealth of knowledge in private equity, mergers and acquisitions, and hedge funds. He holds a B.B.A. in Finance from the University of Texas at Austin and an MBA from Harvard Business School.

In addition to managerial changes, the Fund reported a notable increase in its NAV, which rose by 18.86% or $2.24 on October 1, 2025. This growth was attributed to the Fund's investment in Fermi, Inc., a data center REIT that transitioned from preferred equity to common stock following a successful IPO, now listed on Nasdaq under the ticker FRMI. Although this investment was not a major position in the Fund, its IPO success had a significant impact on the NAV. The transaction was executed with the support of NexPoint’s corporate credit and equities team, showcasing Johnson's role in identifying lucrative investment opportunities.

James Dondero expressed enthusiasm for Johnson's addition, citing his expertise as crucial for driving value for HGLB investors. The Fund will continue to operate under its established investment objectives and strategies as specified in its prospectus.

The recent announcement by the Highland Global Allocation Fund (HGLB) regarding the addition of Scott Johnson to its portfolio management team is a notable development for investors and stakeholders. Scott brings over 25 years of investment management experience, particularly in private equity and hedge funds, which could enhance the Fund's investment strategy moving forward. This addition, effective October 7, 2025, signals a potential pivot in investment focus, as Mr. Johnson joins current portfolio manager James Dondero to explore opportunities that can maximize value for investors.

Moreover, the Fund reported a substantial increase in its net asset value (NAV), surging by 18.86% on October 1, attributed largely to a strategic investment in Fermi, Inc., a data center REIT. The transition from convertible preferred equity to common stock during its IPO distinctly highlights the Fund's ability to capitalize on favorable market conditions, which is a positive indicator of the management team's operational capabilities.

Investors should view this NAV increase, along with the leadership change, as an opportunity for reassessment of their positions in HGLB. The Fund's strategy is expected to remain consistent with its stated objectives, which allows for greater confidence in long-term stability. However, it’s crucial to remember that closed-end funds like HGLB may trade at prices that diverge from their NAV due to market conditions.

Given the heightened expertise with Scott Johnson joining the team, HGLB could pursue more innovative investment strategies and uncover unique market opportunities. As such, current and potential investors should keep a close eye on market developments, the Fund's ongoing performance, and how these managerial changes may influence future growth trajectories. Caution is advised, but the potential for fruitful outcomes appears promising based on these recent developments.