Highland Capital is known for investing in those funds that nearly tripled their returns as per the S&P 500 Index in comparison to last year. Highland Capital is now projecting that there will be a tremendous comeback of the health care sector during 2017.
Gregory is serving as the chief investment officer at Highland Alternative Investors, which is one of the units of Highland Capital Management. It is located in Dallas. Currently, this firm manages nearly $15.4 billion. James Dondero along with Gregory is looking after the small-cap stock funding here. James Dondero is the President being the co-founder of Highland Capital Management. The fund is not very big as there are just $55 million here in assets.
Here, Gregory feels that Highland Capital has a great degree of competency in credit. This is why they made lucrative investments in partnerships that were related to pipelines. It was done when the oil prices were quite low during 2016. These investments formed half of the return that the fund was able to make during the last year.
The partnerships did not cut any dividends once the fund bought its shares. Its master limited partnerships were able to provide dividends that were either in high single digits or low double-digit range. The cash flow was predicted based on its volume. It was not based on the crude price.
This is where Gregory along with James Dondero focused on those MLPs which had strong sponsors. This is where they would consider the pipeline customers for these oil producers.
Now they are happy with the gains and profits that they have made. This way they could also attain an appropriate place in the market.
James Dondero did notice that in the S&P 1500 Composite Index, only one sector posted some amount of decline during the last year. This was the healthcare sector. The return was close to minus 2.1%. Still, he expects a tremendous rebound in health care in 2017.
James Dondero shows his concern regarding epidemics that may happen in public health. The specific reference here was to opioid addiction in the U.S. Hence companies must take a new approach to get the advantage.