Highland Capital Management: Pioneering New Territory

In the early 1980s, James Dondero attended the University of Virginia. When he graduated with honors, Jim received a dual degree in accounting and finance. He then went on to have a more than 30 year career in investments. He first worked for Morgan Guaranty training program as an analyst. He then worked for American Express as both a portfolio manager and a corporate bond analyst. Jim Dondero was then asked to be the Chief Investment Officer at a Protective Life GIC subsidiary. After a decade of working for other companies, Jim decided to start his own. He bought out the GIC subsidiary and turned it into Highland Capital Management.

Highland Capital has quickly grown and now offers a variety of services to clients, including long-only credit funds, long and short equity funds, oil and gas funds, emerging markets credit funds, retail and institutional funds with diverse strategies, distressed for control private equity funds, ETFs and credit hedge funds. Jim has grown the fund to now have more than 180 employees in offices in Seoul, Dallas, Singapore, New York City and Sao Paulo.

The fund’s numbers were recently reviewed in an article published by Octa Finance. After the firm filed their 2015 third quarter 13F, Octa Finance did an analysis and found out some interesting changes that had been made to the company’s portfolio. The biggest change was the fund’s equity exposure. The fund’s equity exposure is about 22 percent of their assets and in the third quarter it lost value by 1.49 billion dollars. In the second quarter, the portfolio was valued at 4.91 billion dollars and by the end of the third quarter it had dropped to 3.42 billion dollars. The fund’s total value of assets it manages is roughly 15 billion dollars.

The fund also made some new purchases over the course of the third quarter. There were 69 new stocks purchased, including Amazon for 23 million dollars, Danaher Corp Del for 17 million dollars, Intra Cellular Therapies Inc for 15 million dollars, Spdr S&P 500 Etf Tr for 67 million dollars and Eagle Pharmaceuticals for 17 million dollars. The firm also bought additional shares to increase their position in 62 other stocks and sold out completely in 119 stocks, while reducing in 80 stocks.

If you would like to read further, you can find the full article here: http://www.octafinance.com/highland-capital-management-top-10-holdings-in-q3-2015/352793/?doing_wp_cron=1455736909.1216111183166503906250

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