Dolphin Reiterates Restructuring or Prompt Liquidation of First Trust High Income Long/Short Fund After Receiving FSD Response (NYSE TICKER SYMBOL: FSD)

GREENWICH, Conn., Sept. 24, 2019 /PRNewswire/ — Thirteen days from Dolphin Limited Partnership I, L.P.’s (“Dolphin”) original letter of September 3, 2019, FSD sent a letter dated September 16, 2019, indicating one purported inaccuracy regarding Dolphin’s characterization of the Fund’s use of leverage. On September 18, 2019, Dolphin directed FSD to the section, entitled “Potential Conflicts of Interest Risk,” contained on page 34 of the Fund’s Semi-Annual Report dated April 30, 2019. Dolphin’s leverage reference contained in its letter is nearly verbatim to the leverage reference contained in the Fund’s disclosure: “. . . Therefore, First Trust and MacKay have a financial incentive to leverage the Fund.” Also, Dolphin indicated that if FSD believed Dolphin’s reference was material and/or inaccurate, FSD should issue correction of its public disclosure.

A spokesperson for Dolphin added that after nearly two weeks of review by FSD, FSD highlighted a reference to one sentence, in Dolphin’s four-page public letter, which is nearly verbatim to the Fund’s public disclosure. The real issue is the need for FSD to restructure to a near target term with a target term NAV or promptly liquidate the Fund.

The spokesperson went on to indicate that Dolphin and other entities, long-term FSD shareholders, hold over 450,000 shares or approximately $6.7 million as of August 30, 2019, the last business day before Dolphin sent its original letter to FSD. On such date, FSD’s closing share price was $14.76, or an approximate 13% discount to NAV.

Dolphin Limited Partnership I, L.P.

Dolphin is a Delaware limited partnership formed in or about 1995, and, together with certain affiliates, has a history of working to generate value on behalf of all shareholders.


c/o Scott R. Wilson, Esq.

Miles & Stockbridge P.C.


SOURCE Dolphin Limited Partnership I, L.P.

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