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Highland Opportunities andome FundHFRO -1.07%39 Return-on-Tangible-Equity is 5.39% as of Dec. 2025, which is 46% above its 10-year median of 3.69. GuruFocus rates HFRO with a GF Score™ of 39/100. The stock has 4 warning signs investors should review. Among 1,590 Asset Management companies, Highland Opportunities andome Fund ranks worse than 80.69% on this metric.
The historical rank and industry rank for Highland Opportunities andome Fund's Return-on-Tangible-Equity or its related term are showing as below:
HFRO'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -3.56 Med: 3.69 Max: 14.18
Current: -1.93
During the past 8 years, Highland Opportunities andome Fund's highest Return-on-Tangible-Equity was 14.18%. The lowest was -3.56%. And the median was 3.69%.
HFRO's Return-on-Tangible-Equity is ranked worse than 80.69% of 1590
companies
in the Asset Management industry
Industry Median: 7.21
vs HFRO: -1.93
Highland Opportunities andome Fund (NYSE:HFRO) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Highland Opportunities andome Fund Return-on-Tangible-Equity Related Terms
Highland Opportunities andome Fund Return-on-Tangible-Equity Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Highland Opportunities andome Fund Return-on-Tangible-Equity Chart
HFRO vs GBAB, ALTI, NCV: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Highland Opportunities andome Fund's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Highland Opportunities andome Fund Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Highland Opportunities andome Fund's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Highland Opportunities andome Fund's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 5.39% mean?
Highland Opportunities andome Fund (HFRO) has a Return-on-Tangible-Equity of 5.39% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Highland Opportunities andome Fund and its competitors. This is 46% above median its historical median of 3.69. According to the industry distribution chart, Highland Opportunities andome Fund ranks #1283 out of 1590 companies in the Asset Management industry, placing it in the top 80.7%.
Is Highland Opportunities andome Fund's Return-on-Tangible-Equity too high?
Highland Opportunities andome Fund's current Return-on-Tangible-Equity of 5.39% is 46% above median its 10-year median of 3.69. The Asset Management industry median Return-on-Tangible-Equity is 7.21. Highland Opportunities andome Fund's value of 5.39% is 25.2% below this industry median. Based on the distribution chart, Highland Opportunities andome Fund ranks #1283 out of 1590 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, Highland Opportunities andome Fund has a GF Score™ of 39/100, reflecting its overall financial health beyond just this single metric.
How does Highland Opportunities andome Fund's Return-on-Tangible-Equity compare to GBAB and ALTI?
According to the Asset Management industry distribution chart, Highland Opportunities andome Fund ranks #1283 out of 1590 companies for Return-on-Tangible-Equity. This places Highland Opportunities andome Fund in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.21. Highland Opportunities andome Fund's value of 5.39% is 25.2% below this benchmark. While the company's 10-year median is 3.69 vs. the industry median of 7.21, Highland Opportunities andome Fund has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Asset Management company?
The median Return-on-Tangible-Equity among Asset Management companies is 7.21, based on 1,590 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Highland Opportunities andome Fund's current Return-on-Tangible-Equity of 5.39% is 25.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Highland Opportunities andome Fund and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Highland Opportunities andome Fund's current Return-on-Tangible-Equity is 5.39%, which is 46% above median its own 10-year median of 3.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Highland Opportunities andome Fund stock overvalued right now?
Highland Opportunities andome Fund (HFRO) has a current Return-on-Tangible-Equity of 5.39%. The current Return-on-Tangible-Equity is 5.39%, which is 46% above median its 10-year median of 3.69 and 25.2% below the Asset Management industry median of 7.21. Highland Opportunities andome Fund's overall GF Score™ is 39/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Highland Opportunities andome Fund (HFRO), the current Return-on-Tangible-Equity is 5.39% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Highland Opportunities andome Fund Business Description
Highland Opportunities and Income Fund is a non-diversified, closed-end management investment company. Its investment objective is to Income Fund seeks growth of capital along with income. It focuses on making investments in real estate securities, including Reits, secured and unsecured fixed-rate loans and corporate bonds, mezzanine securities, structured products, convertible and preferred securities and equities (public and private), and floating rate securities.
39GF Score
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