Products
Large Cap Value
Our philosophy is driven by two key investment assumptions: human bias and emotions are unintentionally introduced into the investment decision-making process with negative long-term effects and investment management processes misunderstand the impact of coverage as a source of return, focusing instead on over researching their long positions. Our team of professional uses this knowledge along with their experience in the industry to produce excess returns for our clients.
Large Cap Growth
Our approach is to use proven factors with expected continuing outperformance over time, factors such as Value, Growth, or Momentum. While statistical techniques are utilized, keeping the model intuitive and transparent adds robustness and stability. In order to manage market risk we have a strong diversification of underlying factor characteristics that provides more consistent returns than a singular style tilt. Portfolios are monitored using an optimization system to control risk (tracking error) and characteristics (large capitalization and developed market bias) to assure our clients are properly diversified and the portfolio is consistent in its stated performance attribution.
International Equity
The skewing of foreign indices toward large companies or industries creates an opportunity to make concentrated country and security allocations relative to the benchmark. Significant investment opportunity is forgone by investment processes that focus on analyzing companies within countries as opposed to the big picture of comparing countries against countries. Our quantitative model measures large quantities of fundamental data to capture influences that may direct foreign investment opportunities either positively or negatively. Our model driven process creates opportunities that may not be achieved through traditional investment processes.
Fundamental Value
For fundamental value we focus on high-quality securities with above-market growth potential currently trading at or below-market valuations. We utilize a powerful combination of “top-down” macroeconomic analysis combined with traditional “bottom-up” fundamental research. We have also developed proprietary quantitative models to screen and rank our universe of potential investments. These models are based on fundamental criteria that complement our traditional qualitative fundamental research process.
1-3 Year Fixed Income
Highland Capital’s objective is to provide clients a safe and stable source of income and liquidity by investing in high quality short term fixed investments. We believe in a relative value investment approach that places the highest priority on quality, safety of principal, liquidity, and a high level of current income leads to consistent, above market returns. Our investment strategy includes five stages, beginning at protection of principal and ending with maturity guidelines taking into account the specific nature of the fund.
Intermediate Fixed Income
Highland Capital’s primary objective across all fixed income strategies is to attempt to seek the highest rate of total return through a combination of current income and capital appreciation. The objective is to attempt to outperform the benchmark over a market cycle while maintaining a low tracking error. The investment structure consists of a portfolio structure made up from secular, cyclical, and tactical judgements.
Core Fixed Income
Highland Capital’s primary objective across all fixed income strategies is to attempt to seek the highest rate of total return through a combination of current income and capital appreciation. The objective is to attempt to outperform the benchmark over a market cycle while maintain a low tracking error. The investment philosophy uses “top-down” macroeconomic analysis combined with “bottom-up” security selection to drive portfolio construction. We believe a relative value investment approach focusing on quality, safety of principal, liquidity, and a high level of current income leads to consistent above market returns.
Multi-Cap Global Balanced
Highland Capital’s Multi-Cap Global Balanced Strategy is designed to provide a mix of stocks and bonds (balanced), that provide a diversified equity portfolio that spans the capitalization range of large cap, mid-cap, small cap sectors, and international equity markets.