Highland Capital Management is one of the many investment firms that provide financial services to a number of different clients. The firm began its operations in the year 1990 and has established itself as one of the most reputable firms in the industry. Today the firm provides a number of services that help a number of investors manage their capital more efficiently. When clients work with Highland Capital Management, they will be able to get access to a number of different services that will ensure that their assets are in good hands. Highland Capital offers advisory services as well as general money management. One of the things that has separated the firm from other ones in the industry is its specialization in managing securities backed by debt and credit. It became the first firm to offer collateralized loan obligations. Read this article at Dallas News.
In 1990, Highland Capital was started up by longtime finance professional James Dondero and co founder Mark Okada. When the firm first began, it provided life insurance to various clients. During the first two years of the firm’s existence, it established itself as a reputable company that provided quality life insurance policies. While it was successful as a life insurance company, Dondero and Okada realized that it would be beneficial to add more services in order to be more competitive. As a result, the firm was transformed into a comprehensive financial services company. It would then begin offering a wide range of services that would cater to wealth and capital management. The firm would also focus on assisting institutional investors along with individuals as well. Learn more about Highland Capital at Affiliate Dork.
During the last two decades, Highland Capital Management has experienced a considerable amount of growth. In 1996, the firm became the first entity to offer collateralized loan obligations which was only available through banks. This helped set it apart from competitors in the industry. Along with offering collateralized loan obligations, Highland Capital continued to provide a wide range of services that would help clients such as high net worth individuals and corporations manage their capital with more ease and efficiency. The firm would also expand to other parts of the world in order to establish a worldwide presence in the finance industry.
One of the brightest spots in energy in 2016 was Highland Small Cap Equity Fund. According to Marketwatch.com report published on 2nd February 2017, the fund almost tripled the returns on S&P 500 index following several well-calculated moves. The fund’s mutual class A shares made a return of over 31% compared to 12% that was recorded on the large cap S&P 500 index. The positive returns are attributed to the decisions of the Chief Investment Officer at Highland Alternative Investors, Michael Gregory. He is also pleased with the impressive credit competency of Highland, a feat that has made it a lucrative investment in the wake of falling oil prices in 2016.
Gregory in partnership with the President and Co-founder of HCM, James Dondero also did a commendable job of focusing on MLPs, the main pipeline clients for oil producers. The Energy MLPs in question, SemGroup Corp and Energy Transfer Equity made an impressive 100% return for the fund. Besides Energy MLPs, Highland Small Cap Equity Fund’s other sector allocations went to healthcare (25%), Consumer Discretionary (11%), Real Estate (9%) and Financials (10%). On the real estate sector, Gregory focused his sights on two multi-family Real Estate Investment Trusts (REITS), the Jernigan Capital Inc and NexPoint Residential Trusts, Inc. When asked to name his most preferred health care stocks, Gregory mention Collegium, which recently unveiled a new approach to pain relief.
In 2010, Highland Alternative Investors made the decision to purchase Small Cap Fund from General Electric. Gregory and Dondero took charge of the fund’s management in 2015. Highland Capital Management is one of the most respected SEC registered investment advisers in the industry. According to an excerpt on Highland Capital Management Charities website, the firm along with its affiliates has about $15.4 billion in assets under management. It is also one of the largest and most referred global alternative credit managers. Its diverse client portfolio includes endowments, public pension plans, governments, financial institutions and high net worth individuals. The firm was Co-Founded in 1993 by James Dondero and Mark Okada. It operates offices in New York, Seoul, Singapore and Sao Paolo.