Highland Capital Management

Last updated
Highland Capital Management
Company type Private
Industry Asset management
Founded1993;31 years ago (1993) [1]
FoundersJames Dondero [2]
Mark Okada, CIO [3]
Headquarters Dallas, Texas, United States
Key people
Mark Okada
Trey Parker
Products Investment fund
Hedge fund
Mutual fund
Total assets $8.3 billion [4]
Number of employees
115
Website www.highlandcapital.com

Highland Capital Management is an alternative investment management firm that manages hedge funds, structured investment vehicles and mutual funds. The firm invests in global public equities, as well as fixed income markets with a focus on leveraged loans, high yield bonds, and structured products.

Contents

The firm is headquartered in Dallas, Texas. [5] It also operates offices in New York City, São Paulo, Buenos Aires, Seoul and Singapore. Highland reported approximately $13.9 billion of assets under management in 2018. [6]

In October 2019, Highland Capital Management filed for Chapter 11 bankruptcy protection. [7]

Overview

Highland Capital Management was founded in 1993 by James Dondero and Mark Okada. [8] The firm was responsible for designing the first software to electronically track loan portfolios, which is used by a majority of loan managers. [9] Highland sold the software to JPMorgan Chase in 2003. In April 2004, Highland entered the mutual fund space with its acquisition of Columbia Management Advisors' bank loan mutual fund business. [10] The company acquired NexBank in 2004. [11] In April 2005, Highland acquired ING Capital Management. The acquisition marked Highland's first move into Europe. [12]

Highland Capital Management has been involved in a number of high profile bankruptcies and reorganizations related to distressed debt investments. Highland was involved in the bankruptcy of Bridge Information Systems in 2001. [13] Highland worked with Delphi Corporation through Delphi's reorganization in December 2006. [14]

In 2011, Highland moved its offices from the Galleria in far north Dallas to the Crescent Complex uptown. [15] Highland is a founding benefactor of the George W. Bush Presidential Center and, in early 2018, the firm provided the center with a $10 million endowment to back a series of public programs. [16]

Investments

Highland manages the Highland Floating Rate Opportunities Fund (NYSE: HFRO), among other closed-end funds. The company launched its first European regulated fund in 2014, the BB Highland Floating Rate Fund, through Banco do Brasil. The new fund, launched as an Irish Qualified Investor Fund, was built to replicate the previous Highland Floating Rate Opportunities Fund which Morningstar named the number one Bank Loan Fund for one, three and five year periods among 213, 168 and 111 funds. Highland's Fund Class Z won the Lipper Award in 2014 for Best Loan Participation Fund over three years. [17]

In February 2010, the firm announced the completion of its CLO Value Fund I, which was launched in November 2008 to invest in secondary CLO debt and equity. [18] Highland launched the Highland/iBoxx Senior Loan ETF in November 2012. In June 2018, the firm launched a UCITS fund focused on collateralized loan obligation (CLO) debt. [19]

Highland Capital Management Fund Advisors is an investment adviser and subsidiary of Highland, which is registered with the SEC. [20] HCM Fund Advisors works with investment companies and manages equity, fixed income and balanced mutual funds. HCM Fund Advisors also manages exchange-traded funds (ETFs) based on research from Hedge Fund Research, Inc. The first three ETFs launched by the company and traded on the New York Stock Exchange were Highland HFR Global ETF, Highland HFR Event Driven ETF, and Highland HFR Equity Hedge ETF. [21]

The Highland Global Allocation Fund was valued at $947 million in September 2016. [22] In August 2018, Highland acquired Cityplace Tower from Parmenter Realty Partners and Angelo, Gordon & Co. The transaction was one of the largest building sales in Dallas in 2018. [23]

Related Research Articles

<span class="mw-page-title-main">Financial services</span> Economic service provided by the finance industry

Financial services are economic services tied to finance provided by financial institutions. Financial services encompass a broad range of service sector activities, especially as concerns financial management and consumer finance.

<span class="mw-page-title-main">Fidelity Investments</span> American multinational financial services corporation

Fidelity Investments, formerly known as Fidelity Management & Research (FMR), is an American multinational financial services corporation based in Boston, Massachusetts. Established in 1946, the company is one of the largest asset managers in the world, with $5.4 trillion in assets under management, and $14.1 trillion in assets under administration, as of June 2024, Fidelity Investments operates a brokerage firm, manages a large family of mutual funds, provides fund distribution and investment advice, retirement services, index funds, wealth management, securities execution and clearance, asset custody, and life insurance.

An exchange-traded fund (ETF) is a type of investment fund that is also an exchange-traded product, i.e., it is traded on stock exchanges. ETFs own financial assets such as stocks, bonds, currencies, debts, futures contracts, and/or commodities such as gold bars. Many ETFs provide some level of diversification compared to owning an individual stock.

Investcorp is a global manager of alternative investment products, for private and institutional clients. Founded in Bahrain in 1982, the firm has offices in United States, United Kingdom, Saudi Arabia, Qatar, United Arab Emirates, India, China, Japan, and Singapore. Investcorp's principal client base is in the six countries of the Gulf Cooperation Council, but it also has a growing base of institutional clients in North America, Europe, and Asia.

A syndicated loan is one that is provided by a group of lenders and is structured, arranged, and administered by one or several commercial banks or investment banks known as lead arrangers.

A "fund of funds" (FOF) is an investment strategy of holding a portfolio of other investment funds rather than investing directly in stocks, bonds or other securities. This type of investing is often referred to as multi-manager investment. A fund of funds may be "fettered", meaning that it invests only in funds managed by the same investment company, or "unfettered", meaning that it can invest in external funds run by other managers.

A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity. Private equity funds are typically limited partnerships with a fixed term of 10 years. At inception, institutional investors make an unfunded commitment to the limited partnership, which is then drawn over the term of the fund. From the investors' point of view, funds can be traditional or asymmetric.

In U.S. financial law, a unit investment trust (UIT) is an investment product offering a fixed (unmanaged) portfolio of securities having a definite life. Unlike open-end and closed-end investment companies, a UIT has no board of directors. A UIT is registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and is classified as an investment company. UITs are assembled by a sponsor and sold through brokerage firms to investors.

<span class="mw-page-title-main">TrimTabs Investment Research</span>

TrimTabs Investment Research, Inc. is an independent institutional research firm focused on equity market liquidity based in Sausalito, California.

<span class="mw-page-title-main">TPG Angelo Gordon</span> American investment management company

TPG Angelo Gordon is a global alternative investment manager founded in 1988 by John Angelo and Michael Gordon who together ran the arbitrage department of L.F. Rothschild in the 1980s. The firm focuses on four main investment disciplines: credit, real estate, private equity, and multi-strategy.

Blackstone Credit, formerly known as GSO Capital Partners (GSO) is an American hedge fund and the credit investment arm of The Blackstone Group. Blackstone Credit is one of the largest credit-oriented alternative asset managers in the world and a major participant in the leveraged finance marketplace. The firm invests across a variety of credit oriented strategies and products including collateralized loan obligation vehicles investing in secured loans, hedge funds focused on special situations investments, mezzanine debt funds and private equity funds focused on rescue financing.

AdvisorShares Investments is a US-based investment management firm based in Bethesda, Maryland which offers actively managed exchange-traded funds (ETFs) through the AdvisorShares Trust. AdvisorShares partners with third party financial advisers who already manage clients’ assets to package their investment strategy using exchange-traded funds. As part of promoting its funds it also provides educational support to help financial advisors and investors understand actively managed ETFs and their underlying investment strategies.

A quantitative fund is an investment fund that uses quantitative investment management instead of fundamental human analysis.

<span class="mw-page-title-main">Amundi</span> French asset management firm

Amundi is a French asset management company. With €2 trillion of assets under management (AUM) at the end of 2021, it is the largest asset manager in Europe and one of the 10 biggest investment managers in the world.

Betashares is an Australian provider of exchange-traded funds (ETFs) which is based in Sydney, Australia with offices in Melbourne, Brisbane and Perth. It is owned and managed by its Australian based management team and has a strategic shareholding from TA Associates, a US Private Equity firm. Up until March 8th, 2021, Betashares was partly owned by Mirae Asset Financial Group.

Pine River Capital Management is an American asset management firm based in Minnetonka, MN. The firm traded its investors funds using stocks, fixed income, derivatives and warrants.

New York Life Investment Management LLC is a U.S. investment management company based in Jersey City, New Jersey. Founded in 1986, New York Life Investment's parent company is New York Life Insurance Company, the largest mutual life-insurance company in the United States, and one of the largest life insurers in the world, ranking #71 on the 2023 Fortune 500 list.

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. Providing Demat and Trading services. Its main offices are in Mumbai. The company employs over 2,100 people.

<span class="mw-page-title-main">CI Financial</span> Largest investment management firm by assets under management in Canada

CI Financial is a Canadian investment management company based in Toronto, Ontario. It offers investment management and wealth management services targeted to high net worth retail investors, as well as brokerage and trading services to portfolio managers and institutional investors.

<span class="mw-page-title-main">HPS Investment Partners</span> American credit investment firm

HPS Investment Partners, LLC (HPS) is an American investment firm headquartered in New York City. The firm focuses on investments in private credit and public credit as well as private equity and real assets. Outside the United States, the firm also has offices in Europe, the Middle East and Asia-Pacific.

References

  1. ↑ "Highland Capital Management, L.P." Harvest. Hvst.
  2. ↑ Jeff Bounds (28 February 2014). "Hedge Funds Get Transparent". D Magazine Partners, Inc. D Magazine.
  3. ↑ Azam Ahmed (10 December 2010). "Once-Burned, Highland Is Bullish on Debt". The New York Times.
  4. ↑ "Highland Capital Management AUM 13F" . Retrieved 22 April 2019.
  5. ↑ "Making Bold Bets on Alternative Investments—and Winning". Barron's. 25 March 2017. Retrieved 17 January 2018.
  6. ↑ "Highland bolsters sales team as it gears for distressed cycle". HFM. 7 November 2021.
  7. ↑ "Highland Capital Management files for Chapter 11 bankruptcy: court filing". Reuters. 16 October 2019.
  8. ↑ "Making Bold Bets on Alternative Investments—and Winning". Barron's. 25 March 2017. Retrieved 17 January 2018.
  9. ↑ Pierre Paulden (September 17, 2007). "In the Eye of the Storm". Institutional Investor. Retrieved May 21, 2019.
  10. ↑ "Highland Capital Management acquired Columbia Management Advisors'". Pensions & Investments. April 15, 2004. Retrieved May 21, 2019.
  11. ↑ Perez, Christine (Aug 28, 2005). "Banking on a new name, more space". Dallas Business Journal.
  12. ↑ "Europe: Capital Management Unit Sold". The New York Times. 6 April 2005.
  13. ↑ Bridge Information Systems Files For Bankruptcy-Law Protection
  14. ↑ "Hedge Fund Offers Plan to Reorganize Delphi (Published 2006)". The New York Times. 22 December 2006. Archived from the original on 2022-07-12.
  15. ↑ "Highland Capital moving to Uptown from Far North Dallas". Dallas News. Archived from the original on 2018-12-15. Retrieved 2018-12-11.
  16. ↑ Haber, Holly (15 January 2018). "Bush Center starts off 2018 with pair of $10 million gifts from Highland Capital, Boeing". The Dallas Morning News . Retrieved 17 January 2018.
  17. ↑ "Highland Capital Management Launches Floating Rate Fund with Banco do Brasil". Funds Society. April 9, 2014. Retrieved May 21, 2019.
  18. ↑ Highland Capital Management, L.P. Completes CLO Value Fund
  19. ↑ Highland Capital offers European investors new kind of exposure to CLOs
  20. ↑ Highland Capital Management Names Jim Dondero as Senior Portfolio Manager to Energy MLP Fund
  21. ↑ "Highland Capital Management Launches Three ETFs". Archived from the original on 2017-10-06. Retrieved 2019-03-10.
  22. ↑ "Surge in passive strategies will be boon – Hedge fund executive Okada". Reuters. 8 September 2016.
  23. ↑ "Dallas' landmark Cityplace Tower has a new owner with big plans for the high-rise". Dallas News. 16 August 2018.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.