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Long/Short Equity

Highland offers multiple alternative equity strategies that seek to deliver equity-like returns over an entire market cycle with lower risk, volatility and draw-downs than long-only or index funds. We offer a balanced and disciplined approach to investing, which has allowed us to generate strong and consistent performance across different market environments. Highland’s long/short equity funds typically run with net long bias, which results in much lower risk characteristics than the overall equity market, while still capturing much of the inherent upward trajectory of the equity market. As a result, these funds can be thought of as a low beta equity investment. The investment process, including both risk management and intensive fundamental analysis, drives idea generation, stock selection, portfolio construction and sell discipline.

Risk management and capital preservation are a central objective of our alternative equity strategies. Portfolio Managers will allocate capital to different risk buckets (high, medium and low) based upon different market environments and in response to macroeconomic data. Each strategy uses this consistent top-down approach with a bottom-up stock selection in order to optimize returns.

Strategy Types

Long/Short Equity
  • Diversified long/short equity fund with typical net long exposure between 20% and 60%
  • Strong focus on downside protection and risk management
  • Overall net long exposure driven by top down macro view while security selection is driven by a fundamental bottom-up research focused on a differentiated view in order to generate alpha on both long and short positions
Long/Short Healthcare Equity
  • Healthcare is the largest and fastest growing component of U.S. GDP
  • The strategy is great way to “play” Obamacare, the largest structural healthcare change in 50 years as well as the “Biotechnology Revolution” in a balanced, low-risk format
  • Healthcare is Highland’s largest investment sector at $2.3 billion in assets across the firm
  • Michael Gregory, Head of Healthcare, manages the strategy and utilizes a deep bench of 9 dedicated sector-specialists with a combined 120 years of experience.

For more information on Highland’s L/S equity business, please contact Info@HighlandFunds.com.