Highland Capital; Successful and Philanthropic
Highland Capital Management is an investment adviser that was started in 1993. The firm was started by Mark Okada and James Dondero. It is based in Dallas, Texas. It offers a variety of services such as separate accounts, collateralized loan obligations, credit hedge funds, and private equity. The firm’s client base ranges from foundations and corporations to financial institutions and governments. It has expanded overseas and has offices in Sao Paolo, Singapore, and Seoul.
The company has made a committed investment in the community through donations, volunteering, and being part of advisory boards. The firm has supported several charitable organizations in Dallas. It gives more than $3 million each year. Some of the organizations that the company has backed up in the past include the Dallas Zoo, Uplift Education, the American Heart Association, and the Center for Brain Health. The company appointed Linda Owen to oversee its philanthropic activities in June last year.
The Highland Small-Cap Equity Fund tripled the returns of the S&P in 2016. Michael Gregory and James Dondero are responsible for overseeing the investment strategies of the fund that manages more than $50 million. Gregory is the chief investment officer of Highland Alternative Investors. This is a fund that manages more than $15 billion.
The fund was able to perform well because of its early investment in energy stocks. The energy picks were responsible for close to half of the total returns of the fund last year. Gregory foresees that healthcare will grow exponentially this year. Healthcare was the only sector that made negative returns in 2016. Many people have stayed off it as a result. He says that the sector will rebind because of the public health issue that is facing the country and the response that insurance companies have shown.
The fund has also invested heavily in real estate. It has been a wise pick for them in the past. The Highland Small-Cap Equity Fund was given a four-star rating from Morningstar for its performance and investing approach. The fund has three class shares. All of them returned more than 30% in 2016.