Long/Short Healthcare Fund

MICHAEL D. GREGORY
Managing Director

Bio »

MICHAEL_D_GREGORY
MICHAEL D. GREGORY
Managing Director

Mr. Gregory is CIO and Global Head of Highland Alternative Investors at Highland Capital Management in addition to Managing Director and Head of Healthcare Credit and Healthcare Long/Short Equity investment strategies. In 2006, he founded Cummings Bay Healthcare Fund, a healthcare hedge fund that is currently in the seventh year of operations and became an affiliate of Highland in 2010. Mr. Gregory also worked as a Partner at Sands Point Capital Management LLC, managing a dedicated healthcare equity hedge fund. He holds an MBA from the Yale School of Management, having completed a highly specialized joint program in healthcare within the Yale Schools of Medicine, Management and Public Policy. He holds a BS in Economics from the University of Pennsylvania, Wharton School of Business. He is a Fellow of the Royal Society of Medicine, lecturer at Yale University, and frequent guest on CNBC, Fox Business and Morningstar. He has been profiled in Barron’s, cited by the WSJ as a “Category King” in Healthcare and named by Institutional Investor as “Best Up and Comer” in 2011.

Fund Overview

Investment Objective

The Long/Short Healthcare Fund seeks long-term capital appreciation by pairing effective risk management with alpha generating potential from long and short investments in public equities across all market capitalizations in the Healthcare industry. The Healthcare industry is undergoing massive structural changes resulting in both long and short investment opportunities. 

  • Seeks long-term capital appreciation.
  • Seeks to participate in the long term growth potential of the Healthcare market.
  • Our strategy seeks to pair effective risk management with alpha generating potential from superior stock picking.
  • The primary focus of the Fund will be long and short investments in public equities across all market capitalizations in the Healthcare sector.

Why Long/Short Healthcare

An Alternative to Long Only Sector Investing
  • Healthcare is one of the largest and fastest growing components of US GDP2
  • A great way to “play” the Affordable Care Act, largest structural change in 50 years
  • Opportunity to invest in the Biotechnology Revolution
  • Active management is optimal as correlations decline and dispersion increases
  • Strategy seeks to deliver alpha and attractive absolute return at low-beta, low-correlation to S&P 500
Why Highland
  • Healthcare is Highland’s largest investment sector at over $3 billion in assets3
  • Michael Gregory is Head of Healthcare, manages the Fund
  • Deep bench of 11 sector-specialists with over 120 years of combined experience
  • World class group of Healthcare Advisors to complement internal team4
  • Small and nimble; can take advantage of largest opportunity set
  • We believe our competitive advantage is driven by our Philosophy, People and Process
Fund NAV (As of Apr 20, 2017)
SYMBOLNAV
HHCAX (Class A)$10.90
HHCCX (Class C)$10.28
HHCZX (Class Z)$11.29
Fund AUM (As of Apr 20, 2017)
AUM
Total Net Assets$126.46 M
VIEW FULL PERFORMANCE
Class AClass CClass Z
SymbolHHCAXHHCCXHHCZX
Inception05/05/0805/05/0805/05/08
Gross Expense Ratio2.56%3.3%2.42%
Net Expense Ratio11.79%2.46%1.46%

Historical Returns & NAV

As of 04/20/2017Class AClass CClass Z
Net Asset Value (NAV)$10.90$10.28$11.29
Daily NAV Change ($)$-0.04$-0.04$-0.04
Daily NAV Change (%)-0.37%-0.39%-0.35%
As of 03/31/2017 MonthlyQuarterlyClass AClass A (w/sales charge)Class CClass Z
Year To Date-0.53%-5.98%-0.66%-0.43%
One Year0.63%-4.94%0.19%1.05%
Three Year-7.84%-9.56%-8.37%-7.47%
Five Year0.95%-0.19%0.36%1.36%
Since Inception4.18%3.52%3.59%4.56%



View all Literature & Forms

The performance data quoted here represents past performance and is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor’s shares when redeemed may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted.

Please consider the investment objectives, risks, charges and expenses of Highland Funds carefully before investing. A prospectus with this and other information about Highland's mutual funds can be found on the Literature tab above. You may also obtain a prospectus for our mutual funds by calling 877-665-1287. Please read the prospectus carefully before investing.

1 Total net operating expenses excluding dividends on short sales are Class A 1.79%, Class C 2.46%, and Class Z 1.46%.

2 Source: National Coalition on Health Care as of June 2011.

3 Includes AUM of affiliated advisers.

4 The “Advisory Group” referenced is comprised of 16 healthcare professionals who are not employed by the Adviser and do not receive compensation for their services. This network of healthcare professionals is utilized when the Portfolio Manager desires industry expertise and perspective on topics such as healthcare reform, new technologies, and improvements in the delivery of healthcare in the US. Members of the Advisory Group do not provide investment advice and do not make recommendations on behalf of the Fund.

*The maximum sales charge for Class A shares is 5.50%.

Debt Securities Risk. The Fund’s ability to invest in high-yield debt securities generally subjects the Fund to greater risk than securities with higher ratings. Such securities are regarded by the rating organizations as predominantly speculative with respect to capacity to pay interest and repay principal in accordance with the terms of the obligation.

Derivatives Risk. Derivatives are subject to the risk that changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index. Derivatives also expose the Fund to the credit risk of the derivative counterparty.

Equity Securities Risk. Equity securities, such as common stocks, are subject to market, economic and business risks that may cause their prices to fluctuate.

Industry Concentration Risk. Because the Fund normally invests at least 80% of the value of its assets in healthcare companies, the Fund’s performance largely depends on the overall condition of the healthcare industry and the Fund is susceptible to economic, political and regulatory risks or other occurrences associated with the healthcare industry.

Leverage Risk. Leverage may increase the risk of loss, cause fluctuations in the market value of the Fund’s portfolio to have disproportionately large effects or cause the NAV of the Fund generally to decline faster than it would otherwise.

Micro, Small and Mid-Cap Securities Risk. Investments in securities of companies with micro, small or medium capitalizations involve certain risks that may differ from, or be greater than, those for larger companies, such as higher volatility, lower trading volume, fewer business lines and lack of public information.

Non-U.S. Securities Risk. Investments in securities of non-U.S. issuers involve certain risks not involved in domestic investments (for example, expropriation or political or economic instability).

Portfolio Turnover Risk. High portfolio turnover will increase the Fund’s transaction costs and may result in increased realization of net short-term capital gains, higher taxable distributions and lower after-tax performance.

Short Sales Risk. Short sales that are not made “against-the-box” (as defined under “Description of Principal Investments”) theoretically involve unlimited loss potential since the market price of securities sold short may continuously increase.

Glossary: Click for important terms and definitions

Source: State Street Bank and Trust Company

Highland Funds’ mutual funds are distributed by Highland Capital Funds Distributor