Highland Funds hired JS Asset Management as subadviser of the new Highland All Cap Equity Value Fund.
John K. Schneider, JS Asset founder, president and chief investment officer, will be portfolio manager of the new fund, he said in a telephone interview.
“Here we are in a powerful up cycle and deep-value stocks are at the center of the recovery,” Mr. Schneider said. “We seek to own stocks that are incredibly cheap compared to historical standards.”
The fund will invest in 30 to 50 holdings across select industries. Mr. Schneider said sectors will include financials, technology, homebuilders, autos, heavy duty trucks and coal.
“The average recovery out of a recession is three or four years,” Mr. Schneider said, noting that this recovery “could be better than the historical average.”
Mr. Schneider had managed the PIMCO Value and PIMCO Renaissance funds before starting his own firm.