Continuing its tradition of excellence, Highlands Capital Management’s Highland Long/Short Healthcare Fund (HHCAX) was recently awarded the 2015 HFM US Hedge Fund Performance Award in the “40 Act fund – equity” category. This award is bestowed on the funds that have outperformed other related funds based on a number of factors, both quantitative and qualitative. In selecting the winners, judges look not only at the fund’s performance during the past one, three and five-year periods but also the background and experience of the fund management and relationship and reputation with investors.
The fund has $3 billion in assets under management and is Highland’s largest sector fund. The investment objectives are to provide its investors with long-term capital appreciation. It accomplishes this by leveraging the fund’s eleven professionals’ 130 years of experience to combine effective risk management with the income generating potential from long and short investments.
Highlands Capital Management was founded in 1993 by Jim Dondero and has regularly been recognized as a leader in the hedge fund and investment banking business. Highland pioneered the use of collateralized loan obligations (CLO’s). By combining these corporate debt securities in a way to balance the risk and return, they provide a way for companies with sub-investment grade credit to obtain capital for expansion.
Today, Highlands has over 150 employees in offices worldwide. Offering their clients a wide range of investment services including mutual funds, investment banking, capital acquisition, and consulting. Industries represented in their client portfolio include healthcare, gas and oil, real estates, and emerging markets. The company has also been named one of the best company’s to work for by the Dallas Business News.
Jim Dondero founded Highland Capital along with Mark Okada after a successful career working for American Express and Protective Life’s GIC subsidiary. Jim graduated from the University of Virginia’s McIntire School of Commerce with honors from both Beta Gamma Sigma, Beta Alpha Psi. His degree consisted of a dual major in accounting and finance.
After graduation, Jim was accepted into the Morgan Guaranty training program as an analyst. When that program was completed, Jim was hired by American Express, first as a bond analyst, but was quickly promoted to portfolio manager responsible for a fixed income portfolio of over $1 in assets. Protective Life hired Jim to oversee the launch of their GIC unit in 1989 and grew that business from inception to over $2 billion in assets within four years.