Dallas based Highland Capital Management’s outstanding performance in 2016 produced over a 30% gain for its investors. The gain which tripled the performance of the S&P 500 was focused on energy stocks. In 2017 Highland Capital set its sights on underperforming healthcare stocks. By October of 2017, these healthcare stocks were up by over 20%. Michael Gregory the chief investment officer at Highland made the Healthcare picks For Highland’s Small Cap Equity Fund. Mr. Gregory works closely with James Dondero the president and founder of Highland. Learn more about Highland Capital at Crunchbase.
Mr. Gregory points to Highland’s credit competency as one reason for its success and when the oil prices were down Mr. Gregory and Mr. Dundero saw the potential for growth with mainstream customers and Limited Partnerships which rely on volume rather than the price of crude. Mr. Gregory also took notice of the difference in performance of the energy and healthcare sectors and after careful study, Mr. Gregory saw a possible rebound for the healthcare market happening 2017. The opioid epidemic in the United States was pressuring insurance companies to search for alternative painkiller solutions.
The potential for growth in this market was noticed by Mr. Gregory and he brought investment in Highland’s Small Cap Equity Fund up to 25% in healthcare. Other investments for the fund included multifamily real estate investment trusts. Mr. Gregory credits the success in this real estate market to the demographic boom going on throughout big cities in Texas. Highland Small Cap Equity Fund remains in the energy market and expects growth to reach over 20%. Read more at bloomberg.com.
Highland acquired the Small Cap Equity Fund from GE Asset Management in 2010. When Mr. Dondero and Mr. Gregory took control of the fund its performance skyrocketed and the fund is rated as above average by Morningstar. Highland Capital was founded over 20 years ago by James Dondero and is located in Dallas, Texas and holds over 14 billion dollars in assets. It is the most experienced and lucrative alternative investment firm in the world today. Its Investments include distressed and special situations, collateralized loan obligations, mutual funds and ETFs. Highland has offices across the globe.