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Highland Capital Management: A Fund Being Led By James Dondero

James Dondero attended the McIntire School of Commerce at the University of Virginia. He received a dual degree in finance and accounting and graduated with very high honors. James Dondero went on to work for Morgan Guaranty training program as an analyst. He then left that program and went to go work for American Express. First, Jim served as a corporate bond analyst and then he switched to being a portfolio manager, where he managed a portfolio that was 1 billion dollars in value. After American Express, James Dondero was ask to be the Chief Investment Officer for a Protective Life GIC subsidiary. Dondero served in this position for 4 years and help the company reach a value of 2 billion dollars.

In 1993, Jim decided to start his own company. He created Highland Capital Management which now has a portfolio value of 15 billion dollars. The firm has more than 100 employees, both part time and full time, and 35 of those employees are either investment researchers or investment advisors. The firm offers services in mutual funds, private equity funds, REITs, ETFs, CLOs, hedge funds and institutional separate accounts.

In an article, recently published by Octa Finance, Highland Capital Management‘s 13F for the third quarter of 2015 was analyzed. The analysis uncovered that the firm’s total assets are worth more than 15 billion dollars and the equity exposure is 3.42 billion dollars. This number is down by 1.49 billion dollars but the second quarter’s 4.91 billion dollars of equity exposure. Within the portfolio, the fund made some changes. They purchased stocks in 69 new companies. The fund also advanced their positioning in 62 different stocks that they already had a stake in. Highland Capital, in the third quarter, also sold out of 119 stocks and reduced their position in 80 stocks.

With all of the changes that were made to where the firm stood with different stocks, the firm’s placement in different sectors also changed. The fund had previously been highly invested in both finance and health care. They have lessened those positions in favor of a more spread out approach. At the end of the third quarter, the fund was spread out through sectors such as services, materials, utilities and telecommunications and consumer discretionary.

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