Following a fairly successful year of investing in energy stocks, Highland Capital has now decided to shift towards new healthcare opportunities for 2017. As a capital management firm, Highland Capital has proven time and time again that they have a deep insight into how the markets work and how to best profit from them. It’s this knowledge that allowed them to invest heavily into energy stocks last year, which ended up giving them a 32% net growth throughout the year. For comparison, that growth is more than triple that of the S&P Index 500.
So why is Highland Capital moving away from the energy sector this year? The answer to that is simple, Highland Capital believes the healthcare sector is due for what they believe to be an incredible rebound over the course of the year. When Highland Capital invested in oil stocks last year, they chose to do so at a time when oil prices were bottoming out. When other people were wary of oil, Highland Capital decided to make some smart business decisions that paid off tremendously. Now, they’re looking to do the same with healthcare.
It’s worth noting that healthcare stocks were the only industry to see a net decline by the end of the year. For those paying attention to Highland Capital’s business strategies, this is not unlike the same situation that oil was previously facing. And, just as with oil, Highland Capital belives that healthcare stocks have just about reached their lowest point. That means that healthcare stocks can only really improve from here on out.
Of course, Highland Capital Management isn’t only investing in healthcare stocks. As of right now, their portfolio places a significant focus on healthcare, with other stakes in the energy, financials, and real estate sectors. It will be interesting to see how these different industries come together throughout the course of the year, both in regards to Highland Capital’s overall portfolio and in regards to the world economy in general. While no one can say for sure what direction healthcare stocks are headed in, it’s safe to say that if Highland Capital has confidence in something, then other investors probably should as well.