The rise in alternative investments has consequently led to alternative credits. Highland Capital management is one of the companies that started alternative credit management and it has developed for its great work in the sector. It specializes in credit services such as long only funds and separate accounts, credit hedge funds, special and distressed situation private equity. It also takes part in alternative investment like short/ long equities and in emerging markets only not in large scale as it does with the credit investments.
The company was formed by the initiative of Mark Okada and James Dondero in 1990 to form a joint venture with Protective Life Insurance Corporation who specialized in fixed income markets. In 1993 the company evolved into Protective Asset Management Company where the founding partners had a shareholding of 40% and the rest was under the insurance corporation. The two purchase the Protective Life’s shareholding in the late 1990s and changed the company name to Highland capital Management. A few years later, it launched the very first commingled bank loan fund and listed an alternative investment 40 Act platform. The company now has more than 180 employees and holds more than $18 billion worth of assets. It has its headquarters situated in Dallas with branches in Singapore, New York City, Seoul and São Paulo.
Most recently, the company made great returns from their energy stocks after the price of oil hit the bottom. Gregory, chief investment officer is grateful that none of their chosen partners cut their dividends after their purchased energy stock shares. The most surprising thing was that master limited partnerships provided them with low double digit or high single digit dividend return in the scenario. Gregory admits that the next best investment lies in the health sector where companies are competing to produce drugs that are less addictive.
Highlands Capital Management does not only seek to cater for its clients only but for the whole community. It takes its social responsibility very seriously and invests in more than financial markets. Through volunteerism and financial donations to both local and national non-profit organizations, the company hopes that it can be the voice of change for the community.