Highland’s ESG Practice
At Highland, environmental, social and governance (“ESG”) principles are incorporated throughout the many facets of our organization from the relationships we have with our communities, our employees and our environment to the trust and transparency we have with our investors. We pride ourselves on delivering transparent, long-term results for our investors and we believe this is best accomplished by tailoring to our investors’ needs. Highland considers ESG factors in a manner consistent with our investment philosophy centered on being investors first. We believe in maintaining a long-term, value-oriented view toward investing, as evidenced by our bottom-up research process and top-down portfolio management, sector rotation and technical analysis. We seek to generate alpha by identifying risks, seeking to mitigate volatility and quickly identifying and selling investments when our investment thesis has changed. We incorporate a rigorous, transparent and fully-customizable investment analysis of all of our portfolios. Risk management, including ESG risk management within our portfolios, is integrated into each level of the investment process from due diligence to asset allocation to ongoing monitoring. We consider ESG issues alongside traditional financial analysis to provide a more comprehensive view of each investment. Additionally, we incorporate ESG screening for investors who have mandated ESG restrictions in their portfolios.