Highland Capital Management’s Small Cap Equity Fund Is Expected To Make Huge Returns On Healthcare In 2017
In 2016, Highland Capital Management (HSM) had much success after its Small Cap Equity Fund generated over 30 percent returns for its investors on energy stocks. These yields were almost triple the returns of the S&P 500 Index. Michael Gregory picked the energy stocks. He is the chief investment officer of HCM’S subsidiary, Highland Alternative Investors. Michael predicted a tremendous rebound of the Highland Small Cap Equity Fund on the healthcare stocks in 2017. Michael and James Dondero were responsible for managing the small-cap stock fund. James is the co-founder and president of HCM. The small-cap stock fund has close to $55 million in assets.
HCM capitalized on its credit competency to make lucrative investments in pipeline partnerships when oil prices were low at the beginning of 2016. Gregory and James Dondero concentrated on MLPs (Master Limited Partnerships) with solid partners who are the US pipeline operators. Gregory said that the investments contributed approximately a half of the total returns of the fund in 2016. In 2010, Highland Alternative Investment acquired the Small Cap Equity Fund from GE Asset Management. Initially, the fund was managed by several sub dividers until 2015 when Mr. Dondero and Gregory started managing it. The Morningstar rated the Highland Small Cap Equity Fund four stars due to its excellent performance.
Since its inception in 1993, Highland Capital Management has focused on delivering innovative products and services to its broad client base. Its world-class services have earned the company a leading position among the largest global alternative credit managers. The investment advisor has close to $15.4 billion of assets under its management. They specialize in credit strategies, distressed and special-situation private equity, as well as Collateralized Loan Obligations and alternative investments. HCM provides its products to public pension plans, endowments, foundations, financial institutions, corporations, high net-worth individuals, governments and fund of funds. At HCM, the top management is committed to giving back to the community. Highland Capital supports community initiatives through donations, volunteerism and board involvement. To date, the company has committed over $10 million to different community-based organizations. HCM is headquartered in Dallas, Texas. The company has opened offices in Sao Paulo, New York, Seoul and Singapore.