The Small Cap Equity Fund of Highland Alternative Investors has made a return surging three times in S&P 500 Index in the last financial year. Michael Gregory, the Chief Investment Officer of the firm, who helped the fund with accurate energy-stock picks last year, now confirms that the unpopular healthcare-sector might make a tremendous comeback this year. Interestingly, the fund’s A-class shares produced returns of 31.6% in 2016, which is much higher to large-cap S&P 500’s 12% returns and small-cap Russell 2000’s 21.3% returns. Highland Alternative Investors is a subsidiary unit of Highland Capital Management, a leading alternative investment management firm based in Dallas. Read this article at PR Newswire.
Currently, Highland Capital handles funds and assets worth $15.4 billion and has more than two decades of expertise in producing quality income through market-beating investment strategies. Interestingly, the Small Cap Equity Fund itself contains assets more than $55 million, and it is managed by Gregory and James Dondero, the co-founder and President of Highland Capital. Gregory confirmed that the credit competency of the firm helped it to make excellent investments in pipeline partnerships last year, especially when oil prices touched bottom. Those created nearly half of the total income of the fund last year.
While coming to the 2017 outlook, Gregory says that healthcare sector would make a tremendous come back this year. He said that considering the concerns of opioid addiction in the country, insurance companies are on the way of providing fast-track approvals on new pain relievers that are less-addictive. Gregory quoted the example of Collegium Pharmaceutical Inc. that developed Xtampza ER, a new oxycodone drug designed with lower chances of addiction as well as abuse. It is a combination of oxycodone with waxes and fatty acids that form spherical beads filled with the capsule.
Gregory confirms that chances of very high sales for Collegium as most Americans may try to purchase the drug from the firm. He also says that Pacira Pharmaceuticals Inc. also came up with another pain reliever named Exparel, a type of non-opioid pain reliever that is highly effective in orthopedic procedures and soft-tissue surgeries. The drug makes over $200 million of business per the latest reports, and a catalyst of it may get approval for knee-replacement surgery this year. Read this article at Dallas News.