Oak Hill NexPoint Global Merger Arbitrage Fund

Strategy

To achieve its investment objectives, the Fund will primarily focus on merger arbitrage by investing in securities of companies that are involved in publicly announced mergers (including mergers through takeovers and tender offers).

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Merger arbitrage is a highly specialized investment approach generally designed to profit from the successful completion of merger transactions.

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The simplest form of merger arbitrage activity involves purchasing the shares of an announced acquisition target at a discount to their expected value upon completion of the acquisition. The size of this discount, known as the arbitrage “spread,” may represent the potential profit on such an investment.

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The merger arbitrage strategy is designed to provide performance that NexPoint believes will normally have a relatively low correlation with the overall performance of stock markets.