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Dolphin Seeks Termination of All FSD Investment Advisory and Management Agreements - Prompt Liquidation and Return of NAV First Trust High Income Long/Short Fund (NYSE Ticker Symbol: FSD)

March 3, 2020 GMT

GREENWICH, Conn., March 3, 2020 /PRNewswire/ -- Dolphin Limited Partnership I, L.P., a near 3-year shareholder of First Trust High Income Long/Short Fund (NYSE: FSD), announced today that it is having the attached letter mailed to all FSD shareholders in advance of the March 9, 2020 annual meeting. The record date of the meeting is January 6, 2020. FSD’s proxy statement (January 13, 2020) on page 21 contains Dolphin’s binding Proposal 2 to terminate all investment advisory and management agreements pertaining to the Fund as soon as legally permitted pursuant to such agreements and Section 15(a)(3) of the Investment Company Act of 1940. Dolphin urges all shareholders to vote FOR Proposal 2. IF YOU HAVE NOT VOTED, OR WANT TO CHANGE YOUR VOTE FOR PROPOSAL 2, YOU MAY DO SO.

In addition, because each of the 5-member Board of Trustees has been seated for over 9-years, since inception, Dolphin urges FSD shareholders to withhold the vote for Proposal 1 – The Trustee. Dolphin is pursuing this principally because:

  • Dolphin’s constructive involvement with FSD for over 17 months, advancing 3-alternatives to transform the Fund’s structure and close the persistent market discount.
  • FSD’s efforts to close the sizeable, persistent market discount have not succeeded.
  • Prior to Dolphin’s public involvement, starting September 2019, FSD’s month-end market discount to NAV was consistently approximately 13%.
  • FSD’s market value return since inception materially underperformed its self-selected benchmark (page 2, 2019 Annual Report) and Dolphin believes it has structural defects.
  • Dolphin believes all shareholders can do better than 5.4%, $0.93 of earnings on the NAV as of the date of the attached shareholder letter.
  • FSD’s Statement of Opposition refers to “long-term investors” no less than 8-times, yet their long-term market performance since inception has materially underperformed.
  • Investors should examine amortizing the 590 basis point market discount contraction (as of the date of the attached shareholder letter) coinciding with Dolphin’s public involvement to determine the attractiveness of FSD’s 1-, 3- and 5-year performance also.

Below is Dolphin’s letter, dated February 18, 2020, being mailed to all FSD shareholders.

About Dolphin Limited Partnership I, L.P.

Dolphin Limited Partnership I, L.P. is a Delaware limited partnership formed in or about 1995. Dolphin and its affiliates have a history of working constructively to generate value on behalf of all shareholders.


Innisfree M&A Incorporated
(212) 750-5833

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SOURCE Dolphin Limited Partnership I, L.P.