Highland Capital Management specializes in developing credit strategies such as credit hedge funds, special-situation and distressed private equity, separate accounts and long-only funds, as well as collateralized loan obligations (CLOs). Additionally, the company provides alternative investments such as long/short equities, emerging markets, and natural resources.
Highland Capital Management boasts a diversified client base which includes public pension plans, endowments, foundations, financial institutions, corporations, governments, high net-worth individuals, and fund of funds. The company’s headquarters are located in Dallas, Texas. However, it still maintains its offices in Sao Paulo, New York, Seoul, and Singapore. Its core business is managing bank loans, distressed debt, and high yield credit. Additionally, the company’s strategies include distressed private equity, credit hedge funds, and real assets.
The Highland Small Cap Equity Fund achieved a substantial financial success on the 2016 energy stocks by generating a return for investors of 32 percent. According to Highland Alternative Investors’ chief investment officer Michael Gregory, pipeline operators in the United States should expect another good year. The officer’s energy-stock pick aided the Highland Small Cap Equity Fund to triple the return of the S&P 500 index in the previous year. He added that the out-of-favor health-care sector might rebound tremendously in 2017.
Mr. Gregory also reported that the Highland Capital Management’s credit competency enabled the company to pursue lucrative investments in pipeline partnerships when the oil prices fell in early 2016. Subsequently, the investments contributed to about 50 percent of the fund’s total return during this year. He further stated that none of the partnerships selected cut their dividends after the fund purchased the shares.