Headquartered in Dallas, Texas, Highland Capital Managment LP is an investment advisory company. As one of the world’s largest alternative assets managers, it specializes in assets such as real estate, credit hedge funds, distressed private equity, and emerging markets. The company, which was founded in 1993, got its name in the industry as a pioneer in collateralized loan obligations. The types of clients that use Highland Capital Managment includes endowments, financial institutions, pension plans, high net worth individuals, and government institutions.
One of Highland Capital’s recently introduced ETFs, the Highland iBoxx Senior Loan ETF, was celebrated on Wall Street. Mark Okada, who is one of the co-founders of Highland Capital Management as well as its Chief Investment Officer, was invited by the Nasdaq stock market to ring the closing bell. This alternative assets ETF is managed by one of the company’s subsidiaries, Highland Capital Management Fund Advisors, L.P.
Another successful fund at Highland Capital is the Highland Small-Cap Equity Fund, stock ticker HSZAX. This fund had a very successful 2016, returning 31.6% compared to the S&P 500 returning 12% and the Russell 2000 returning 21.3%. This fund is managed by the other co-founder of Highland Capital Management, Jim Dondero, and Michael Gregory who is the Chief Investment Officer of Highland Alternative Investors, another subsidiary of Highland Capital. Gregory said that the success of the fund in 2016 was due him and Dondero invested in oil pipelines when oil prices had bottomed out. This led to about half of the returns experienced in the fund for the rest of the year.
Looking at 2017, Michael Gregory has said that he expects the healthcare industry to outperform other segments of the business industry. His reasoning for this is that he expects a number of alternatives to opioid’s being released this year. He said that the United States is facing a public health epidemic due to mass addiction to opioid’s that has to be addressed. The new drugs will be designed in a way that they can’t be abused like current opioids are which will lead to a strong growth in sales and profit.