Highland Capital Management, L.P. is a company in the financial industry and is headquartered in Dallas, Texas. They have a number of subsidiaries and maintain additional offices in New York City, Singapore Sao Paulo, and Seoul. The company was established in 1993 in a joint venture between Protective Life Insurance Corporation, Mark Okada, and James Dondero. A number of years ago Okada and Dondero bought out Protective Life’s share of the company and so they now wholly owned the company.
At Highland Capital Management, the focus is on providing funds made up of alternative assets. The types of assets the specialize in include collateralised loan obligations, real estate, currencies, small cap companies, private equity, and other alternatives to investing in stocks and bonds. The funds they create are sold through retail channels, broker-dealers, and banks.
The Highland Small Cap Equity Fund (stock ticker HSZAX) has a huge return in 2016, achieving a result of 31.6%. Michael Gregory is the Chief Investment Officer at Highland Alternative Investors, one of Highland Capital Managements subsidiaries. He, along with James Dondero, is the manager of this fund. He said that the fund was showed so much success because of their decision to add oil pipeline partnerships to the fund earlier in the year. This decision greatly paid off and accounted for half of the annual return.
The area that James Dondero and Gregory have their eyes on for 2017 is health care companies. Gregory has talked about there being a new generation of drugs coming out on the market to replace opioid’s. Opioids are very addictive and can lead people into hard drugs once their prescriptions run out. The new pain relievers will be much harder to abuse and won’t be as addictive. Due to this, they see a great deal of promise in this industry.
Highland Capital Management takes its duty to being socially responsible very seriously. They financial contribute to a number of worthy charities in the communities in which they operate. One of the nonprofits they have supported in Dallas is the Family Place which provides shelter to families that are leaving abusive situations.
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