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Highland Capital Management, the Texas fund manager and a top investor in the leveraged loan market, is fighting a multi-front battle against the sliding value of its holdings. Highland, which manages $40bn, made its name investing in leveraged loans that private equity firms use for acquisitions. But its main hedge funds were down 11.5% to 14% in January. While it is not clear how they fared in February, Highland’s recent performance contrasts with gains of 30-40% in the past two years. As a result, Highland executives, led by co-founder Mark Okada, are  now trying to persuade investors not to withdraw their money.