First of all: what is highlander?
To make the long story short, it is a format variation of open, where all cards are R-listed.
So, I have been playing with the idea of playing highlander for quite some time, and thanks to a couple of new cards I acquired, I finally decided to create my first list. When I created this list I faced exactly the same problem I faced when I made my first Magic highlander deck: I thought that I would have to play a lot of bad/suboptimal cards, but it turned out that I had to make my cuts from a huge 52/52, to make it reasonably small. I would gladly suggest this format to anyone, who finds as much fun in deckbuilding as in playing the game, since there are a way to many options, you can play cards that would normally be underpowered in other formats, like
On Your Doorstep or
A New Light. Basically this freeps side is a hybrid, created from my real life expanded
Powerful Guide deck, and the well known open Fruit Loops deck.
Free Peoples side: (36 cards)Ring-Bearer:Frodo, Resolute Hobbit +
The One Ring, The Great RingStarting Fellowship:Gandalf, Leader of MenPippin, In the Bloom of HealthMerry, In the Bloom of HealthQuickbeam, BregaladSmeagol, Poor CreatureCompanions:Grimbeorn, Beorning ChieftainTreebeard, Keeper of the WatchwoodErland, Dale CounselorGandalf, Powerful GuideFollowers/Allies:Deagol, Fateful FinderPallando, Far-Travelling OneBarliman Butterbur, PPPPossessions/Artifacts:Glamdring, Foe-HammerShadowfax, Greatest of the MearasGandalf's StaffThe Palantir of Orthanc, Recovered Seeing StoneBeorning AxeRadagast's Herb BagStingConditions:Steadfast ChampionEnt DraughtSent BackA Light in His MindThe Shire CountrysideBrooding on TomorrowEvents:Saved From the FireMomentous GatheringA Wizard is Never LateQuestions that Need AnsweringServant of the Secret FireThe Flame of AnorMysterious WizardStrength of SpiritFinal AccountTerrible and EvilSomething SlimyStrategy:
Bid high to start at
Dammed Gate-Stream, and depending on your starting hand pull
Deagol (if you have acces to
Grimbeorn), or
Something Slimy (if you don't have access to
Grimbeorn 
), don't be afraid of taking a mulligan, if you have a bad starting hand. Quickbeam is only here to protect from early beaters, don't be afraid of burning it with
SftF or using it as a living shield, one of the unbound hobbits are also here to sacrifice. There are three things you can go for with the search cards: fruit loops (
KotW +
Steadfast Champion +
Ent Draught), infi-Erland (
Erland, DC +
A Light in His Mind +
The Shire Countryside, or something as simple as
Grimbeorn +
Beorning Axe. Once you manage to set up one of them, try to run, the shadow side's primary function is to stop your opponent from making doubles, so you could outrun him/her.
Shadow Side: (36 cards)Minions:Gollum, Plotting DeceiverGollum, Mad ThingGollum, Dark as DarknessGollum, Threatening GuideShelob, Eater of LightShelob, Her LadyshipThe Balrog, Demon of MightThe Balrog, Terror of Flame and ShadowThe Balrog, The Terror of Khazad-DumSauron, The Lord of the RingsThe Mouth of Sauron, Lieutenant of Barad-DurEnquea, Lieutenant of MorgulEnquea, Duplicitous LieutenantCantea, Black AssassinLemenya, Eternally ThreateningNelya, Third of the Nine RidersMauhur, Relentless HunterGrima, WormtongueDesert LordMumak Commander, GATSOther Cards:Sudden StrikeThey Stole ItNot This Time!Promise KeepingNot Easily AvoidedWebEvil-Smelling FensFat One Wants ItWe Must Have ItCaptured by the RingLed AstraySaruman, Servant of SauronIthil StoneThe Balrog's SwordWhip of Many Thongs, Weapon of Flame and ShadowStrategy:
Nothing special, with a really good draw, it is a gollum ninja, but with the fatties you should be able to stop your opponent from running, and that is your primary goal.