How Michael Gregory At Highland Capital Management Expects Healthcare To Outperform In 2017

Highland Capital Management, L.P. is an investment advisory company which is headquartered in Dallas, Texas. They specialize in creating funds that have alternative assets in them such as real estate, credit hedge funds, collateralized loan obligations, foreign currency, and others. They count among their clients governments, pension plans, fund of funds, and high net worth individuals. They were founded in 1991 and have expanded internationally with offices in other countries such as South Korea, Brazil, and Singapore. They also maintain an office in New York City.
One of their funds that had a very good 2016 was the Class A Shares of HSZAX. This fund focused on energy and they keyed in on pipeline partnerships when oil prices had cratered to $25 a barrel. They gained a return of 31.6% for the year on this fund which was much higher than the 12% return of the S&P 500 and the 21.3% return of the Russell 2000. This fund is managed by Michael Gregory as well as James Dondero who is one of the founders of Highland Capital Management as well as its president.
Talking about what to invest in during 2017 in regards to HSZAX, Michael Gregory says that they are focusing on healthcare. As everyone acknowledges the United States is in the midst of an opioid addiction epidemic. He says that there is money to be made as insurance companies start to address this issue by speeding up the approval process for new pain killers which won’t be so easily abused as the current generation. He points to new developments like Xtrampza ER which, while an oxycodone, it has reduced addictive qualities and much more difficult to abuse as it is made up of small spherical beads. These beads are very resistant to being manipulated in a way that they were never intended to be.
As leaders in the community, the leadership team at Highland Capital Management is dedicated to acting charitably in Dallas. They have given away more than $10 million since 2005 to a variety of causes. One of these nonprofits was The Family Place which provides a place to stay and find a job for those who are fleeing domestic abuse.

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