James Dondero Guiding Highland Capital Management to New Heights
Dispositions & Losses
In the quarterly 13F that Highland Capital Management (HCM) just filed with the SEC, is report of a loss of 22.81% of the company’s combined assets. The market value had been $4.91 billion dollars in the previous quarter, but now was listed as $3.43 billion dollars. James Dondero is the founder and CEO of HCM, which took the step of disposing all stock in Nexpoint Cr Strategies Fd (NHF), Spdr Series Trust (Put) (XBI), Mckesson Corp (MCK), Laboratory Corp Amer Hldgs (LH), and Envision Healthcare Hldgs In (EVHC). Speculation about Jim’s motives of 3 varieties: gathering momentum, the company’s value, or perhaps simply a better ranking of HCM on the stock market.
The filing with the SEC also revealed several positions that the hedge fund bought more stakes in, including increases of: 18% in Salesforce Com Inc (CRM), 60% in American Airls Group Inc (AAL), 173% in Kinder Morgan Inc Del, 18% in Corning Inc (GLW), and 16% in Patterson Companies Inc (PDCO). HCM acquired reduced stakes in the following: 68.98% in Ldr Hldg Corp (LDRH), 213.34% in Salesforce Com Inc (CRM), and 10.10% in Burlington Stores Inc (BURL). This is a normal situation for professional investment managers, gradually building up positions.
The biggest new positions were started with $15.90 million in Intra Cellular Therapies Inc (ITCI), $17.73 million in Eagle Pharmaceuticals Inc (EGRX), 67.07 million in Spdr S&P 500 Etf Tr (SPY), $23.35 million in Amazon.com Inc (AMZN), and $17.24 million in Danaher Corp Del (DHR). These were chief among 69 newly acquired stocks.
Jim Dondero started Highland Capital Management in 1993. Since that time HCM has offered many innovative investments to bring very high ROI. They are constantly helping investors to leverage alternative credit and equity strategies.
Innovative Investment Vehicles
Highland Capital Management provides investment management of Mutual Funds, Hedge Funds, real estate trusts, collateralized loans, distressed equity in private funds, and also many less expensive innovative investments. This gave many more people the chance to invest and build their nest eggs for retirement. Of his experience with inventing and launching these new innovations, Mr. Dondero had this to say, “We created our first collateralized loan obligation in 1996… It was quite challenging because there were only a few non-bank investors outside of ourselves and a few mutual fund investors. Since then, we have created 40 collateralized loan obligations and structured vehicles.” These market positions for HCM were first reported on octafinance.