Category Archives: Investment Management

Putting The Spotlight On Highland Capital Management’s Long-Short Healthcare Fund

Although Highland Capital Management is considered one of the world leaders in the high-yield credit market, this investment firm also offers a diverse array of long-short mutual fund products.

From real estate to healthcare and everything in between, it seems that Highland Capital has a hand in all of the world’s most well-capitalized industries. Chief among its publicly traded offerings is the Highland “Long-Short Healthcare Fund”, and this particular fund is run by Managing Director Nate Burns and Highland President James Dondero.

The “Long-Short Healthcare Fund” is currently invested in several classes of stock across the marketplace. This is an equity-only fund, and capital is not invested in debt offerings of any kind.

In summary, the “Long-Short Healthcare Fund” is currently invested in the following equity securities across all of its portfolio companies:

  • Class A Stock – These shares come with more voting rights than other equity securities, allowing Dondero and Burns to hold sway over the operational decisions of corporations inside of their portfolio.
  • Class C Stock – It is not uncommon for one mutual fund to invest another mutual fund’s Class C shares, and this is exactly the strategy that Dondero and Burns have decided to employ.
  • Class Z Stock – Class Z shares are also a class of mutual fund equities, the Class Z Shares offered by Highland Capital Management’s Long-Short Healthcare Fund have gained more than 5% over the last decade.
  • Index Funds – Currently, the portfolio has more than 20% of its capital allocated to shares of the Standard & Poor’s 500 (S&P 500), a selection of America’s largest corporations.

Although the healthcare field has opportunities in several different verticals, Highland has decided to narrow its investment focus to biotechnology companies that show promise in developing nascent therapeutics and associated technologies. Go Here to learn more.

The current portfolio includes substantial stakes in Minerva Neurosciences Inc., Biohaven Pharmaceutical, and Ascendis Pharma. View More Information Here.

 

Follow him on https://twitter.com/highlandcapmgmt?lang=en