NexPoint Climate Tech Fund
As of September 14, 2022 the Fund changed its name to NexPoint Climate Tech Fund with a focus on investing in climate tech companies
Investment Objective
The investment objective of NexPoint Climate Tech Fund (“Climate Tech Fund” or the “Fund”) is to seek long-term growth of capital.
Investment Strategy
The Fund seeks to achieve its investment objective by investing at least 80% of its net assets under normal circumstances in equity securities, such as common and preferred stocks, of climate tech companies. The Fund defines “climate tech” as technologies and business models that act to decarbonize the energy, transport, buildings and infrastructure, industry, and agriculture sectors.
Investment Rationale
Divestment
For those interested in fossil fuel divestment, clean energy solutions (solar, wind, clean power generation, electric vehicles, etc.) can provide indirect exposure to fossil fuel prices, as clean energy solutions compete with fossil fuels.
Inflation Protection
Because of direct investments in materials, agriculture, infrastructure, water, etc., and indirect exposure to fossil fuel prices via clean energy solutions, we believe the strategy may perform well in certain inflationary environments.
An Inefficient Opportunity
The companies addressing climate change are historically small-to mid-cap companies with little analyst coverage, often operating in new, poorly understood growth opportunities.
Class A
Ticker
HSZAX
NAV
$5.56
Inception
09/30/98
Class C
Ticker
HSZCX
NAV
$3.03
Inception
09/30/99
Class Y
Ticker
HSZYX
NAV
$6.40
Inception
09/30/98
Portfolio Manager
James Dondero | Founder, NexPoint
James Dondero is the founder of NexPoint. In addition to overseeing the group’s business and investment activities, Mr. Dondero serves as the portfolio manager of NexPoint Merger Arbitrage Fund, Event Driven Fund, and Climate Tech Fund. He is also an officer and director at NexPoint’s publicly traded REITs.
Scott Johnson | Portfolio Manager, NexPoint
Mr. Johnson is a Managing Director and Portfolio Manager at NexPoint Advisors, L.P. He has over 25 years of investment management experience with extensive experience in private equity, mergers and acquisitions and long/short hedge funds.
