James Dondero’s Highland Capital Management: Changing Directions

James Dondero is the President and Co-Found of Highland Capital Management. He founded this fund in 1993 and has changed the role of funds in society. He has been on the cutting edge of developing the market for Collateralized Loan Obligations. His fund also prides itself on coming up with credit solutions for their investors, both retail and institutional, around the globe. The firm also offers products such as REITs, ETFs, CLOs, institutional separate accounts, hedge funds, private equity funds and mutual funds.

Since his days at the University of Virginia, Jim has done everything from help a GIC subsidiary to grow from birth to 2 billion dollars to manage 1 billion dollars of investments at American Express. Dondero has also been certified as a Chartered Financial Analyst, a Certified Management Accountant and a Certified Public Accountant.

Jim Dondero is also involved outside of his work. He is the Chairman of CCS Medical, Cornerstone Healthcare and Nexbank and a board member of MGM studios and American Banknote.

The firm that Dondero founded now manages about 15 billion dollars in assets. In a recent article by Octa Finance, the fund’s 2015 third quarter 13F was discussed. The article talked about how the fund’s equity exposure is roughly 23 percent of the assets, at 3.42 billion dollars. This number has decreased by 1.49 billion dollars since the second quarter.

The article talked about how the fund had changed it positioning in the different sectors. The fund has the least amount of money invested in materials and services. Each of those account of 1 percent of the fund’s investments. Utilities and telecommunications have a bigger piece of the pie at 4 percent. The fund has 8 percent of their money invested in transport and 10 percent in consumer discretionary. Highland Capital has put these largest percentage of its investments in the energy sector, at 12 percent, the finance sector at 18 percent, the information technology sector at 18 percent and 20 percent into the health care sector.

The fund has also kept its positioning mainly in 3 stocks, Salseforce Com, American Airls Group and Ishares. These 3 holdings make up about 14 percent of the fund’s U.S. listed securities and the top 10 stocks represent nearly 30 percent of the reported 13F.

For those who would like to read the entire article, go here: http://www.octafinance.com/highland-capital-management-top-10-holdings-in-q3-2015/352793/

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