Highland Capital’s, Highland Small Cap Equity makes huge gains in 2016

The market news monitoring site MarketWatch has reported how Michael Gregory, the Chief Investment Officer at Highland Alternative Investors, a component of Highland Capital Management made a series of sound investments that lifted the fund in 2016. According to the article published on 2nd February 2017, Gregory’s energy picks pushed Highland Small Cap Equity to levels that almost tripled the returns of the S&P 500 index. The Highland Small Cap Equity Class A shares returned a massive 31.6% in 2016. The figure was more favorable compared to that of large cap S&P 500 that returned 12%.

 

He predicts that the markets should now brace for a health care rise in 2017. The sector was the only one on S&P 1500 Composite Index to post a negative return in 2016. The small cap Russell 2000 index on its part returned 21.3%. The President and Co-Founder of Highland Capital Management, James Dondero and Michael Gregory took charge of the fund’s management in 2015. As of December 31 2016, the fund had varying investments in 5 key sectors, namely; Real Estate, Healthcare, Financials, Energy MLP and Consumer Discretionary.

 

Most of the allocation was concentrated in the healthcare at 25% and the least in the real estate at 9%. According to Globenewswire.com, Highland Capital Management Fund Advisors, LLP is one of the most successful unit’s of Highland Capital Management. The Dallas, TX based firm maintains offices in New York and several cities in Asia. The firm, along with its affiliates manages an asset portfolio to the tune of $18 billion. Highland specializes in undertaking credit strategies, including long-only funds, credit hedge funds and separate accounts.

 

The other strategies are special and distressed situation private equity and collateralized loan obligations (CLOs). In recent years, the company has been aggressively expanding its investment portfolio. On October 11, 2016 HCM listed Highland iBoxx Senior Loan ETF on NASDAQ, a leading provider of trading, listing, public information services to investors across 6 continents. The Co-founder and Chief Investment Officer of HCM, Mark Okada was given the honor to ring Closing Bell. The investment is managed by Highland Capital Management fund Advisors.