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Highland Capital’s Alternative Investors Look for Investment Opportunities in Healthcare After a Successful 2016 Year in Energy
Highland Capital Management’s unit, Highland Alternative Investors is proud to announce the Small Cap Equity Fund experienced a 32 percent return in profits, in 2016. Chief Investment Officer, Michael Gregory oversees the fund with the help of James Dondero and selected the winning energy stock. While stocks in the energy sector were attractive during the beginning of last year when oil prices dropped, strategic partnerships were formed, contributing to approximately 50 percent of the total return of the fund. The healthcare sector didn’t perform well last year, but Mr. Gregory is expecting a turnaround this year. He is focusing on two companies in the pharmaceutical industry that show promising profits, in 2017.
Highland Capital has an interest in companies’ stocks of Collegium Pharmaceutical Inc. and Pacira Pharmaceuticals Inc. Michael Gregory said he is looking at the healthcare industry and see promising investment opportunities for this year. He said the energy sector outperformed the healthcare sector in 2016, which the S&P 1500 Composite Index posted a weakening. Collegium is a top selection for its new medication, Xtampza ER which reduces the chances of addiction or abuse. Highland also has an interest in Pacira, a pharmaceutical company that developed a new pain relief medication.
After evaluating the market, he sees a strong possibility of enormous sales for the medication by the end of the 2017. Sales have already reached approximately $200 million for the non-opioid pain reliever drug. Mr. Gregory believes both companies will generate profits for Highland Alternative Investors. He and Mr. Dondero primarily concentrated on the master limited partnerships with sponsors, the main clients for oil producers.
Highland Alternative Investors is an affiliate of Highland Capital Management, a leading investment firm in Dallas, Texas. James Dondero serves as the president of Highland Capital and helps to manage Highland Small Cap Equity Fund with Michael Gregory. The fund’s investors are delighted about the 32 percent return on their invested capital. Gregory said they are collecting their profits and sizing down to an appropriate position.