Highland Capital Management is taking its separation of institutional and retail assets to the next level.
The firm has announced it will spin off its mutual fund arm next month into Pyxis Capital, a newly formed firm. Joe Dougherty, president of Pyxis, said the spinoff has been in the works for a few years; Highland’s mutual fund arm has been acting independently since it was formed. Pyxis, named after the Latin term for a mariner’s compass, will retain the Highland funds’ managers and subadvisers.
Pyxis’ lineup of 20 mutual funds is split evenly between traditional and alternatives strategies, but Mr. Dougherty said alternatives would be the primary focus in product development. “Our DNA is institutional alternative strategies … we can walk into any room with good conscience and talk about creative alternative strategies,” he said.
Two Pyxis alternatives funds, a natural resources fund and an alternative income fund, are in registration with the Securities and Exchange Commission and expected to launch next year. Mr. Dougherty declined to comment on them specifically while they are in the registration period.
Highland Capital will have about $17 billion in assets under management after the spinoff.
Jason Kephart writes for InvestmentNews, a sister publication of Pensions & Investments.