The company was established in 1993 by James Dondero and Mark Okada. The headquarters of Highland Capital Management LP are in Dallas, Texas. It also has offices in New York City, Sao Paulo, Singapore, and Seoul. Highland has a retail branch, Highland Capital Management Fund Advisors, that offers investment advising to clients. About $15.4 billion in assets are managed by Highland Capital. Read more at bloomberg.com.
Some of Highland’s specialties are credit strategy (i.e. credit hedge funds) and collatarized loan obligations (CLOs).The other strategies of Highland Capital are leveraged loans, high yield bonds, market-linked investments and distressed credit. There are four types of equity offered: long, short, public, and private. Alternative investments (i.e. natural resources) are another product of Highland Capital.
The company is a leader in global alternative credit management. Community involvement is important for Highland Capital because it is committed to volunteering, providing donations to local and national organizations, and participating in advisory board participation. For 12 years, over $10 million has been donated by Highland to companies across the globe.
Highland Alternative Investors is a subdivision of Highland Capital Management. The chief investment officer (CIO) of this subdivision is Michael Gregory. He chose energy stocks for the Small Cap Equity Fund, which helped triple the S&P 500 Index in 2016. A 32% return on investment was generated by these stocks. The motivation between the investment in energy stocks is the “credit competency” of Highland Capital. The asset value of the small fund is nearly $55 million. Gregory along with James Dondero manage the Small Cap Equity Fund.
As of December 31, 2006, the Highland Small Cap Equity Fund had the following sector allocations: 25 percent for healthcare, 16 percent for energy MLP, 11 percent for consumer discretionary, 10 percent for financials, and 9 percent for real estate. GE Asset Management sold the Small Cap Equity Fund to investors at Highland Capital in 2010. The expenses of the fund are higher than average. There are three share classes for the Small Cap Equity Fund: Class A, Class C, and Class Y. This fund has been given a 4-star rating from Morningstar. Read this article at investopedia.com.