Highland Capital is an equity funds company that uses investments from its clients to purchase stock on their behalf. This, if course, is not news to anyone familiar with how equity funds work. The surprising part is that Highland Capital has managed to have such success in knowing which markets to tap into and how best to leverage those markets for their clients. Perhaps one of the main reasons Highland Capital Management is so successful has to do with the markets in which they specialize.
Roughly 25% of all investments Highland Capital makes reside in the health care marketplace. It’s a market that CIO Michael Gregory has named as one that he’s interested in pursuing further in the future. In the current political and economic climate, it might seem that investing in health care would carry too much risk. However, Gregory says that insurance company are finally starting to do something about the widespread opioid addiction plaguing the country. Because of this, the insurance companies are speeding up the process of approval for less-addictive drugs, meaning more money is in the marketplace, and it’s getting there faster. He believes this fact, along with others, makes health care a great opportunity for future investment.
An additional 16% of Highland Capital investments goes to energy MLP, a sector in which the investment group has done so well they recently made news because of it. It was reported that, in 2016, Highland Capital made a 32% return for their investors in this market.
Another 10% of investments at Highland Capital goes to customer-directed spending. In other words, the consumer has the discretion as to how the money is spent and where it goes.
Financials and Real Estate
The last two markets in which Highland Capital invests regularly are financials (10%) and real estate (9%). Real estate is a sector in which Highland Capital is intimately familiar since they manage the successful NextPoint Residential. Gregory said that they use tactics they’ve proven to be successful in order to make smart investments in the real estate market.
Highland Capital has made a career of choosing the right markets and stocks at the right time, a skill that has made them popular with both their clients and the media. It’s likely that Highland Capital will continue to make headlines and enjoy further success in the investment industry.