Q3 Holdings Have a Huge Impact on James Dondero’s Highland Capital Management

The third quarter information for Highland Capital Management was revealed when Octa Finance did an article after the fund file its 13F. One of the bigger changes was seen in where the funds main holdings are. Their top 3 holdings include Ishares Tr, American Airls Group Inc and Salesforce Com Inc. In combination, these 3 holdings make up over 13 percent of the fund’s US listed securities. To put it in perspective, the firm’s top 10 holdings constitute roughly 30 percent of the portfolio.

Another big change that the article noticed was in sector positioning. Highland Capital Management increased the share of their portfolio that was in information technology from 16 percent to 18 percent. The securities in the energy sector constitute 12 percent of the fund’s portfolio and the consumer discretionary sector makes up 10 percent of the portfolio. There were big slashes made in the third quarter too. The fund’s portfolio now has a significantly lower portion of its portfolio in health care and finance, 20 percent and 38 percent less respectively.

The co-founder, and also the president, of Highland Capital Management is James Dondero. Before Jim founded the investment firm, he was the Chief Investment Officer at a Protective Life GIC subsidiary. He helped to take that project from inception to more than 2 billion dollars in just 4 shorts years. Before having that role, Jim worked at American Express as a portfolio manager, after serving there as a corporate bond analyst.

When Jim Dondero created Highland Capital Management in 1993, he knew he would offer the usual services like mutual funds, private equity funds, hedge funds, CLOs, institutional separate accounts, REITs and ETFs. He also wanted to specialize in two specific areas. The first area was to develop credit based solutions for the firm’s global investors, both retail and institutional. The second area that Jim wanted the firm to specialize in was developing markets for collateralized loan obligation.

James Dondero is also an active member in several organizations. James also serves as a Chairman of CCS Medical, NexBank and Cornerstone Healthcare. Dondero is also a board member of American Banknote and MGM studios. And since his days at the University of Virginia, Dondero has earned certification as CPA, CMA and CFA.

If you would like to read the full article, go here: http://www.octafinance.com/highland-capital-management-top-10-holdings-in-q3-2015/352793/

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