Highland Capital Management Makes A Profitable Investment In A Pipeline Deal

The HCM is an investment consultant firm that is SEC registered. Together with its affiliates, it manages about $15 billion worth of assets. HCM was founded by Mark Okada and James Dondero in 1993, and it has grown to be among the leading and most experienced credit managers in the world.

Highland Capital puts a lot of emphasis on credit strategies, including hedge funds, separate accounts and long-only funds, collateralized loan obligations, special situation, and distressed private equity. The firm also provides alternative investments not limited to natural resources, emerging markets, and long/short equities. The diversified client base of Highland include foundations, public pension plans, corporations, financial institutions, endowments, high-net-worth individuals, fund of funds, and governments. The firm’s headquarters are located in Dallas, TX, and it maintains branches in New York, Singapore, Seoul, and Sao Paolo.

According to Gregory, who is the CIO of Highland Alternative Investors, the firm was able to make profitable investments in the pipeline partnership when oil prices went down. He attributed this success to the credit competency of the company. The investment was able to contribute to around half of the total return of the fund in 2016. Gregory explained that after buying the shares, dividends were not cut by any of the selected partnerships. What was even appealing to the firm was that the master limited partnerships (MLPs), were able to provide them with a low-double-digit or high-single-digit yields as the volume usually predicates the cash flow and not the price of oil. Dondero and Gregory laid more focus on MLPs with steady investors as they are the primary clients for oil producers.

When it comes to community matters, Highland Capital Management always gives it a priority. The firm does not only invest in financial markets, but they have also proudly invested back in the communities that they operate in. The firm shows its commitment to making a difference by advisory board involvement, volunteerism, and financial donations to national nonprofit organizations as well as local community organizations. As from 2005, the firm together with its partners have committed over $10 million to charities all over the world.

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