Investment Strategies

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.

We believe a disciplined, quantitatively driven investment process enhances the ability to uncover value across the full market capitalization spectrum. The multi-cap universe allows us to apply our systematic modeling approach with flexibility—capturing opportunities in large, mid, and small-cap segments while managing risk through broad diversification. Our process integrates academically supported and fundamentally intuitive factors to identify attractive stocks and allocate capital efficiently across sectors, seeking consistent long-term outperformance through disciplined execution.

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.

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.

We believe a systematic and quantitative driven investment process delivers superior results over qualitative approaches. The SMID universe provides a sweet spot to leverage our quantitative expertise within a less efficient universe and provides more flexibility than traditional small cap strategies. Our modeling process is built upon factors with deep academic research and fundamental intuition, seeking outperformance through both stock selection and sector allocation.

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.

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.

A disciplined, research-based approach to short-duration fixed income investing is designed to deliver attractive risk-adjusted returns and capital preservation. The strategy combines quantitative analysis with fundamental assessment to identify securities that provide incremental yield without excessive interest rate or credit risk. By maintaining a diversified portfolio of high-quality, short-term instruments, the portfolio seeks to deliver liquidity, stability and consistent income across market cycles.

A systematic approach to managing short-term assets is designed to preserve principal, maintain liquidity and generate competitive yields. The strategy integrates quantitative and fundamental analysis to identify high-quality securities that balance safety and return potential.

A disciplined and research-driven approach to municipal investing is designed to deliver tax-efficient income and capital preservation. The strategy focuses on identifying high-quality issuers with strong credit fundamentals while actively managing duration, structure and sector exposure.

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.

This strategy leverages Highland Capital’s quantitative modeling and fundamental insight to identify opportunities across sectors and market capitalizations to deliver a diversified approach that integrates multiple equity investment styles—such as value, growth, quality and momentum. By combining complementary factors and dynamically adjusting exposures, the portfolio seeks to enhance return potential, reduce style bias, and achieve balanced, risk-adjusted performance over time.

A disciplined approach to equity income investing focuses on companies with strong balance sheets, sustainable cash flows and a consistent record of dividend growth. The strategy seeks to provide an attractive income stream while maintaining long-term capital appreciation potential. Through quantitative screening and fundamental evaluation, the portfolio identifies dividend-paying stocks with favorable valuations and financial strength, aiming to deliver stable, risk-adjusted returns and growing income over time.