Capital Markets

Highland develops capital market projections each year and reviews these projections regularly during the year.  We maintain data on over 39,000 indices, many of which go back to the 1920s. Using this data, Highland develops long-term expectations for returns, volatilities and correlations for various asset classes. 

Highland’s optimization process includes both commercially available models and internally developed models as follows:

• Traditional Mean Variance Optimization
• Resampling Simulation
• Black Litterman Model
• Risk Budgeting and Decomposition
• Internally developed stress test models
• Internally developed simulation models tailored to different issues specific to client’s portfolio