Highland Capital Management Plans To Invest In Health-Care Stocks In 2017
In 2016, Michael Gregory invested in energy stocks, which enabled Highland Small Cap Equity Fund to make a return of 32 percent. Michael serves as the CEO of a division of Highland Capital Management, Highland Alternative Investors. This amount almost tripled the S&P Index returns of 12 percent in 2016. The financial expert said that the small-cap stock fund was in favor of the health-care sector in 2017. Gregory posited that half of the returns generated in 2016 were attributed to the lucrative pipeline partnerships that the company made at the beginning of the year when oil prices were low. None of the partnerships deducted dividends after the fund’s success.
Michael Gregory and James Dondero, the co-founder of Highland Capital Management, oversees the small-cap stock fund, which has close to $55 million AUM. The two visionary leaders focused on MLPs (Master Limited Partnerships) with solid sponsors, who are the major pipeline clients for oil producers. In 2016, Energy Transfer Equity LP and the SemGroup Corporation (SEMG), which gained close to 100 percent for the small-cap stock fund, were the two leading MLP performers. Healthcare was the only sector of the S&P 1500 Composite Index that posted a decline of -2.1 percent. Today, the company expects a tremendous rebound for the health-care sector, which constituted 25 percent of the Highland Small Cap Equity Fund as of December 31.
About Highland Capital Management
Highland Capital Management (HCM) is one of the largest and experienced investment advisors. The corporation is known for its expertise in alternative investment management. James Dondero and his partner, Mark Okada, founded HCM in 1993. The corporation specializes in credit strategies like long-only funds, separate accounts, and hedge funds, Collateralized Loan Obligations (CLOs) and distressed and special-situation private equity. Their alternative investments focus on emerging markets, natural resources, and long/short equities. HCM has a large client base that includes high net-worth individuals, government, financial institutions, foundations, endowments, pension plans, corporations and funds of funds. The Dallas-based company, through its philanthropic arm, the Dallas Foundation, invests the bulk of its donations to local communities with the objective of enhancing their livelihoods.