The chief investment officer of Highland Alternative Investors, Michael Gregory, announced that Highland Small Cap Equity Fund was opting for healthcare stocks. The fund almost tripled the S&P 500’S returns on energy stocks in 2016. Highland Alternative Investors is a branch of Highland Capital Management, a Dallas-based investment adviser. The energy stocks, which were picked by Gregory, generated 31.6 percent of the Mutual fund’s Class A shares HSZAX, +0.6 percent for small cap in 2016, compared to 12 percent for the large-cap S&P 500. Together with James Dondero, the co-founder of Highland Capital, Gregory manages Highland Small Cap Equity Fund with approximately $55 million in assets.
Highland Capital’s credit competency played a significant role in helping the company to make profitable investments in pipeline partnerships at the beginning of 2016 when oil prices were relatively low. The pipeline partnerships contributed 50 percent of the fund’s impressive results. None of the partnerships deducted dividends after the fund bought shares. Among the six sectors of S&P 500 composite Index, only health care dropped in prices. The others sectors were energy, real estate, financials, and consumer discretionary.
About Highland Capital Management
James Dondero and Mark Okada are the founders of the renowned Highland Capital Management. Being one of the largest alternative credit managers, the firm focuses on credit strategies, including long-only funds, separate accounts, hedge funds, distressed investing, and Collateralized Loan Obligation as well as alternative investments. They provide their services to different foundations, pension plans, financial institutions, corporations, endowments, high net worth individuals, governments and fund of funds. Highland Capital Management strongly believes in giving back to the community by investing where their employees work and live.
Through its philanthropic arm, the Dallas Foundation, the company offers financial support to both local and national charitable organizations and initiatives. They also support community initiatives by volunteering and providing advisory services. The firm, together with its partners, has committed over $10 million to different initiatives since 2005. The SEC registered company has close to $15.4 billion in assets. Because of the increased demand for their services, the company has opened offices in New York, Singapore, Seoul and Sao Paulo.