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Investigation: Highland Energy Funds

Highland EnergyThe securities and investment fraud law firm Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments in Highland Funds Energy Master Limited Partnerships (HEFAX).

Highland Energy, according to the company’s website, “aims to provide investors with current income and capital appreciation by investing primarily in large and mid-cap Master Limited Partnerships (MLPs) of domestic midstream energy companies.” The company offers a variety of MLPs, including four that have declined roughly 23% in the last year, according to Morningstar:

  • Highland Energy MLP C (HEFCX)
  • Highland Energy MLP Y (HEFYX)
  • Highland Energy MLP A (HEFAX)
  • Highland Energy MLP R (HEFRX)

Yahoo! Finance reportsthat the funds manage about $21.82 million in assets, and that HEFCX has declined 24.27% in the last year. HEFYX has reportedly declined 24.21%, and HEFAX has declined 24.24%. All the aforementioned MLPs have been reportedly sold through broker-dealer firms like Raymond James, Fidelity, RBC Wealth Management, and Mid-Atlantic Capital.

A master limited partnership (MPL) is a publicly traded limited partnership. It offers the tax benefits of a limited partnership and the liquidity of publicly traded securities. An MLP must generate at least 90% of its income from Internal Revenue Service-deemed “qualifying” sources like the production, processing, and transportation of oil, natural gas, and coal.

Master limited partnerships can be complicated investments and pose many risks; investors should seek a complete understanding of any investment from their broker or investment adviser, to ensure the product is suitable. Brokers and investment advisers who recommend unsuitable investments may be subject to disciplinary action by FINRA or the Securities and Exchange Commission.

If you have lost money investing in Highland Funds Energy Master Limited Partnerships (HEFAX), you may be entitled to recover your losses. Call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. Fitapelli Kurta takes every case on a contingency basis, which means Fitapelli Kurta only gets paid if and when you collect money. By law there may be a limited window to file your claim, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.

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