NexPoint Merger Arbitrage Z
HMEZX
NASDAQ19.84
USD
- -
- -
CIK
0001354917
ISIN
US4301016428
CUSIP
430101642
Return %
Stock
S&P500
1Y
-0.05
19.01
3Y
3.28
65.48
5Y
-3.74
72.20
Capital Structure
FRC
•
in mil. unless spec.Working Capital
FRC
•
in mil. unless spec.Growth Rates
FRC
•
in mil. unless spec.Quarterly Revenue
FRC
•
in mil. unless spec.Quarterly Earnings Per Share
FRC
•
in mil. unless spec.Quarterly Dividends Per Share
FRC
•
in mil. unless spec.- Sector
- Financial Services
- Industry
- Asset Management
- Address
- Dallas TX 75240 Berkeley Heights NJ United States of America 07922
- IPO Date
- Jan 20, 2015
- CIK
- 0001354917
- Website
- hardingloevner.com
- Similar Companies
- Business
- NexPoint Merger Arbitrage Fund (HMEZX) is an actively managed open-end mutual fund that seeks to generate positive absolute returns through merger arbitrage strategies focused on domestic and international companies involved in publicly announced mergers, takeovers, and tender offers with executed definitive merger agreements. The Fund invests at least 80% of its total assets in equity and debt securities of such companies, primarily purchasing shares of acquisition targets at a discount to the announced offer price to capture the arbitrage spread; it also employs short sales, derivatives including futures and options, share class arbitrage, and holds cash or money market instruments as needed. Class share offerings include Class A (HMEAX, inception August 20, 2016), Class C (HMECX, inception August 20, 2016), and Class Z (HMEZX, inception January 20, 2015), managed by NexPoint Asset Management, L.P., with portfolio managers James Dondero, Bradford Heiss, and Scott Johnson. The Fund operates within the event-driven alternative investment segment, targeting merger transactions across various industries and capital structures to achieve low market correlation, reduced downside participation, and strong risk-adjusted returns; it serves institutional and retail investors seeking diversification from traditional equities and fixed income. NexPoint, the multibillion-dollar alternative investment firm sponsoring the Fund, maintains headquarters in Dallas, Texas, and structures its operations around real estate, corporate credit and equities, and insurance solutions, with strategies offered via mutual funds, REITs, private funds, and separate accounts. In January 2025, the Fund celebrated its 10-year track record since inception, highlighting top-quartile performance in the Morningstar Event Driven category over one-, three-, and five-year periods, no down years since launch, and superior returns versus merger arbitrage peers; it demonstrated annualized returns of 6.07%, a Sharpe ratio of 1.27, and low correlations to the S&P 500 (0.20) and Bloomberg Aggregate Bond Index (0.10) through December 31, 2024. In September 2025, the Fund earned shortlistings in two categories for the HFM U.S. Performance Awards, marking the sixth consecutive year of recognition in event-driven strategies. The expense cap continues through at least October 31, 2025, with net expense ratios of 2.49% for Class A, 3.14% for Class C, and 2.14% for Class Z.