Highland Capital Management is a hedge fund run by James Dondero. The fund has an asset base of $3.42 billion as the latest 13F form indicates. It’s a decrease of nearly $1.5 billion from the last filing. The Top 10 holdings comprise nearly 30% of its capital with American Airlines, Salesforce.com, and American Express among the biggest.
When it comes to sector allocation, the largest share belongs to Health Care (20%), followed by Information Technology and Finance (each 18%), and Energy (12%). The fund also holds various Exchange Traded Funds (ETFs) as well as options (both calls and puts). Among the biggest recent buys are calls on SPDR (Spider) S&P500 ETF and a purchase of Amazon shares.
The fund has also increased its stakes in American Airlines (calls), showing its bullish bet on this company. Another bigger bet was made on Salesforce.com.
When it comes to liquidating positions, Jim Dondero sold puts on XBI (a SPDR series), Nextpoint CR Strategies, Mckesson Corp, Envision Healthcare Holdings, and Laboratory Corp. Watch Jim and the Highland Team ring the NYSE Closing Bell below.
Overall, during the reporting period, there were 69 new purchases, 62 additional purchases, 119 stocks were sold out, and 80 positions were reduced. More details can be found on Octafinance website.
James Dondero is one of the founders and the current President of Highland Capital Management. Jim has over 30 years of experience in credit markets. He currently resides in Dallas, Texas, from where he oversees fund’s investment policy and operations.
The funds ran by Jim have have been distinguished in the past. Morningstar has given a 5-star designation for global allocation in 2014, and ranked Healthcare Long/Short Equity Fund as #1 the same year.