Why Highland Capital Management’s Affiliate Small Cap Equity is the Company to Watch in 2017

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Highland Small Cap Equity has recently attracted adequate attention based on its favorable investment returns. As an affiliate of Highland Capital Management, the company’s energy stocks have remarkably helped Small Cap Equity to record triple returns. Widely considered as a “tremendous rebound” in 2017, the company has exceeded expectations courtesy of Michael Gregory, Highland Alternative Investors’ chief investment officer. As co-founder of Highland Capital Management and Small Cap Equity, he has successfully steered the $1.4 billion investment into an unprecedented success.

 

According to Gregory, 2016 was an excellent financial year based on profitable investments in pipeline partnerships with various high net worth individuals. Based on verified statistics, the affiliate recorded a 31.6% profit increase compared to 12% returns recorded in the previous year. More importantly, cash flow provided by partners on volume rather than on crude prices instigated a rapid stimulus for company growth. With the aid of Dondero, the duo reaped immense profits from lucrative oil partners with an eye for success. Despite posting incredible results, Gregory reiterated on the need to trim expenses in an attempt to promote sustainability.

 

Sources of Revenue

 

Small Equity Cap Fund mainly focuses on five essential sources of income: Health Care, Financials, Consumer, Real Estate and Energy MLP. Under the health care department, Gregory highlighted the adverse effects of opioid addiction in the U.S, and how insurance companies had altered the approval process for obtaining less-addictive pain killers. Since a high population of citizens consumed painkillers, the company deemed it necessary to address the situation and offer sustainable solutions to patients in need.

 

When focusing on real estate, Gregory hailed the company’s commitment to focusing on multifamily property investment trusts. Through the concept, the company not only aims at moderating high rents but also intends to make property acquisition much more affordable.

 

On the other hand, the energy sector proved to be an essential revenue stream based on impressive figures generated by two dominant oil pipeline distributors: Tesoro Logistics LP and Western Gas Equity Partners LP which yielded a 6.36% and 4.08% increase respectively. Based on such statistics, Gregory emphasized on the need to diversify markets to raise more profits.